The Ramsey Show - App - Impose Your Will on Your Money With a Budget! (Hour 1)

Episode Date: June 27, 2024

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Number one best-selling author, Ramsey personality, co-host of the Smart Money Happy Hour, Rachel Cruz, my daughter, is my co-host today. Open phones, the phone number is 888-825-5225. The call is free, and some say the advice is worth exactly what you pay for it. Phil is with us to start this hour in Fort Wayne, Indiana. I got a problem with my deal in here. Just bring it up.

Bring up Phil for me. Can you turn that off? Hey, Phil, how are you? I'm fantastic. How are you guys? Can you hear me? Better than I deserve. What's up? Well, Dave, my wife and I are having what we believe to be is a financial meltdown. We need some help. We need some advice. We're tired of owing people money. We want to get out of debt ASAP. And frankly, the arguments and the stress is making it hard to sleep at night. We're on the verge of divorce due to this.

Wow. How much debt have you got? I can go through it quickly. I've got $38K in a personal loan that's rollover from credit card debt. $29K in a car loan. Of course, that's upside down. $28K student loan. $12K in consumer debt. And $8K in the car loan of course that's upside down 28 student loan 12 in consumer debt and eight

in another car loan the daughter's car loan and uh and then we got the house you know we owe 150 on the house if we sold it today it'd be worth well 250 270 it would sell for have you got a beeping in the background at your place or is that a technical thing on my end that's us that's us dave oh it is yeah okay yeah all right thanks my brain's about to be fried over this okay sorry so uh what's your household income oh no did we lose him now we lost him okay we're breaking down yeah it's all falling apart okay we'll hopefully we'll get him back up because that's a lot. A lot of numbers. And we're finding continually it's a consistent issue of money becoming such a major part of people's marriage issues.

I mean, this is a thing that has continued to be an issue. Can you concentrate? No, I can't. But that's okay. You're right. I think we're getting fill back now now we're getting it we're getting it okay uh phil we will have you on i promise we're gonna try to help you here buddy okay there are you back phil i'm i'm here sorry about that i'm sorry about that no that's okay we blew a fuse over here somewhere. But anyway, so you guys are, how long have you been married? 18 years this year.

Yeah, and what did you say your household income is, sir? Together we're grossing $174. Okay, so why are you not able to pay these bills with $174? They look payable to me. And when we actually sit down and look at it i agree 100 but but frankly we have never sat down and truly have done a budget okay and if we're fighting over money all the time why would we not do that then just a communication issue i mean when i boil i mean if you sat down with your wife tonight and said honey look we have to map our way through this in a way that we can agree to so we don't kill each other.

And we make enough money to pay these bills. We just need to get aligned on how to do it. Would you sit down here and help me write this out and us be in agreement? And neither one of us raise our voice. Could you not do that? We're getting there. No, I mean, really. No, I'm talking about tonight. Why couldn't not do that we're getting there we've no i mean really no i'm talking about tonight what why couldn't you do that tonight does she know about all these numbers phil does she know the amount of debt she does okay absolutely okay so what's what's the stick

what's the fly in the ointment uh you're gonna have to tell me i i think it's just a fear of buckling down and actually handling it i think on both of our parts okay and and you said your daughter car you have a teenage daughter you don't want to tell no to that difficult to do yes yeah the other part is she just got accepted to a local uh private college, both for academics and athletics. That's scaring me to death also. Are you supposed to pay for it after she got accepted? That is a correct statement, yes.

Well, I don't care. I can't afford it, honey, unless we figure this out. So one thing you figured out already, I figured out in 35 seconds talking to you, is your teenage daughter has a vote in this and she shouldn't. It's not her money. You're not saying no to her, either one of you. This kid needs to hear no.

It's part of what's causing your problem. Now, I'm not saying you're going to have to say she can't go to that college or you have to sell her car, but you might have to say both you make 174 000 a year you make plenty of money to pay these bills agree 100 yeah and we're not behind on anything by by any means i'm tired of making the minimum payments i want to get these things paid off yeah absolutely and you're out of control y'all just spend and spend and spend and spend with no plan because nobody hears the word no in your place. And so the grown-ups in the place are going to have to circle the wagons,

you and your wife, and say, all right, as grown-ups, we're going to do what's best for this family in the long term, which means in the short term we're going to say no to some things to ourselves and to all the non-grown-ups in the family who don't get a vote understand is that old school dinosaur stuff or what i like it i mean is it that that's really what you're gonna have to do it's um so one of the things i did sharon and i did sharon and i said this when we were fighting like crazy we're going bankrupt losing everything rachel was a brand new baby and we said all right if we ran a business and it was our job to handle money for that business to be the cfo of that company the chief financial

officer of that company we would get fired for incompetence you would lose your job, Phil, if that was your job. Y'all suck at this. Well, I agree. And so we said that to ourselves, too. So I can say that to you. So, I mean, I'm not picking on you. I'm agreeing with you on this stance. But we kind of said, we got to get above this and treat it like we want to keep our job because God gave us the job of running this household and we're not doing it. We're incompetent. We're not doing a good job of that. And so we're now going to become professional money managers of this house and we're going to

tell our money what to do instead of wondering why we're sitting here stressed making 174 grand. And if you and your wife can get into agreement on that type then you can go anywhere you need to go from there does that make sense yes sir yeah well and i was going to say too phil that when you said earlier how we can't sit down and just have a conversation because we can't even like communicate about this because there is so much fear there is so much heightened emotion and i think what's going to start to come to the surface as you guys dig into these numbers is you're actually going to see a lot of, oh my gosh, we've broken down in communication on a lot of life, not probably just this situation. And what we do find, which

I hope gives you hope, is that for so many people that walk a journey that choose to really be intentional about a part of their life, and we're in the world of money. So this is what we hear all the time is we're going to work on this money problem together. And then suddenly you start to realize, oh, my gosh, a lot of our marriage problems, it's not that they're being solved, but they're coming up to the surface. We're seeing them. And because we're able to communicate well and on the same plan on one area of our marriage, like money, all these other areas seem to start to have a commonality and that unity starts to be built. So it's kind of the chicken or the egg

of like marriage stuff and money. But this money stuff, if you guys can choose to get on the same page, it actually can be the thing to help improve your marriage because you're going to work as a team for maybe the first time in a long time. Yeah, if you can get aligned on your spending, you've aligned yourself on your value system.

Your fears, your dreams all come into line. A budget can actually be used to heal a marriage. It actually is used all the time. Marriage counselors do it. So I got great hope for you guys. Hang on, we'll get you into FPU. This show is sponsored by BetterHelp. All right, so I was born and raised in Texas, and I love the myth of the lone cowboy. You know, the guy who doesn't need anyone or anything. It's a fun story, and it's a lie. In our self-obsessed society, we're obsessed about our own diets, our own workout routines, our own jobs, our own social media feeds, everything. It's easy to forget that no one can do life alone. And I don't care if you're an introvert, an extrovert, or whatever you want to call yourself, we all have to have a community and a support system to do life with. It's time to shift the

focus from doing it all by ourselves to knowing that we can only be well and whole when we ask for help. Therapy can be a great source of help and support for any area of your life. And if you're thinking about starting therapy, try BetterHelp. BetterHelp is 100% online therapy, so it can fit with your schedule. To get started, just fill out a short online survey to get matched with a licensed therapist. And if it's not the right fit, you can switch therapists at any time for no extra cost. This month, start to build your support system with BetterHelp. Visit betterhelp.com slash Ramsey Radio to get 10% off your first month. That's betterhelp, H-E-L-P dot com slash Ramsey Radio. Rachel Cruz, Ramsey personality, is my co-host today.

The Bible says, no discipline seems pleasant at the time, but it yields a harvest of righteousness. The way we say it around here is if you'll live like no one else, later you can live and give like no one else. Met a couple at the break. Rachel and I were out having pictures. Said 14 years ago we got out of debt. And I said, well, you have to be a baby steps millionaire. And he goes, oh, yeah, definitely. So that's what happens.

There's a live like no one else. So later you can live and give like no one else. If you are on baby step four and beyond, which means you are out of debt, have your emergency fund in place, and you're now working on investing and paying off your house and your kids college and that kind of stuff now you're in the investing phase of your financial plan and our baby steps now you can go on vacation but until then you should not be on vacation you should be going uh getting out of debt and you should be in uh and you should be building your emergency fund

baby steps one through three but if you're four beyond, we want to offer you the live like no one else. Cruise seven days in the Caribbean, Holland, America. And this is the nice cruise ship line, not the cheapo. This is the good one. This is a fairly new ship, almost brand new. And it's all the Ramsey personalities, plus a bunch of country music and Christian music folk on there with us. We're going to be doing all kinds of special events.

No one will be on the ship except Ramsey people. All of them will be living like no one else. So if you want to celebrate your milestone of reaching that, Turks and Caicos, St. Thomas, Puerto Rico, and the Bahamas might be a good place to do that March 22 through 29 of the year 2025. So about 10 months, 11 months from now, we'll be going. There are just a few cabins left. You can still go, though. We want you to go. You can put down only a $600 deposit, secure your cabin before they are gone. We are selling out rather rapidly, and you can get a cabin, though. You need to to get on the phone you need to get on the website and start talking about it right now this is the ultimate debt-free celebration includes steven curtis chapman and it's going to be fun we we planned out the the itinerary and saw you know the speakers for the night and sessions we're all going to do it's going to

be fun it's going to be enjoyment some learning celebrating. We will all be on there the entire seven days with you. So come out, hang out with us. It's going to be awesome. RamseySolutions.com slash cruise. You don't want to miss this. It's going to be incredible. All right, I want to circle back to Phil's call and the concept for a second. Families making $174,000.

They've got the money to pay their bills, but they're out of control. So we have seen for years, going through Financial Peace University, learning to be on a budget together. You mentioned it to him, has healed many a marriage because it forces you to negotiate every part of your life because money flows in and out of almost every part of your life. You know, are we going to give to church? Are we going to save for kids college? Are we going to have the kids in a private school? Are we going to, all these questions have money attached to them and they all represent something you care about, your values.

And when you can get aligned on your values, when you can agree on your spending, you're agreeing on your fears, your dreams, you're agreeing on your problems. You're even agreeing eventually on the order on which to attack the problems and decide if the kid goes to the private school the kid wants to and the kid keeps the car that has an $8,000 loan on it or not. Now, how do you get to Phil's place? It's where most people are. They're out of control and chaotic. And in a system, including a family, and any system including a family and the operation

of a family is a system believe it or not it's it is science more than it is art um the any system left to itself without an outside force holding it in place deteriorates and becomes chaotic. Families that don't plan to do things ever, eventually it catches up with them. The chaos takes over. And that could be in the money section. It could be on, you know, we're not planning for college. We're not planning for retirement. We're not planning to buy the next car. We're not planning anything.

And it always surprises you then when christmas is here in december and so what this does is it forces a family to impose its will it forces the husband and wife together to agree on and impose their will on the chaos and force it into order that's what budgeting does and it forces you to discuss the things where you are not aligned and that's why i give great hope for phil because he was answering he's over it he's ready to fix this sure he's ready to say no to himself to his wife to his daughter yep and impose our will on this broken mess. And so, folks, I want to tell you, I don't care how broke you are. I don't care how out of control or stuck you feel. You can impose your will on the system using a budget,

just start writing it out. Sharon and I would just write out a list of debts that we had. We wrote out a list of goals that we have, and then we put those in order. Which thing would we do? If we had some money, what would we do first? We dreamed again after we went broke. And we had yellow pads full of dreams, yellow pads full of goals, yellow pads full of debts and problems, and yellow pads full of a budget.

And those things eventually, as we imposed our will on that system, eventually became our life, and it's what we've been teaching you guys now for 30 years that's how you run it yeah and i wonder too the caution when it comes to even making that first step of imposing your will and just doing a budget because i think it does it takes either a moment in time of a crisis kind of where he was at and we call it your i've had a moment it's either i'm done it's either it's either that or it's just this big humility pill that you have to swallow to say what i've done obviously isn't

working and i think that's hard for anyone to admit right they're like a part of your life that's falling apart realizing that you've done that like there's a level of of self-acceptance there oh yeah that can be so hard oh it's very hard um and i think those are the barriers but when you push through those emotions and you actually sit down and do it the change occurs you know you start to actually start walking it out but that even that first step for people emotionally the weird thing is you change when you have a crisis but you can create the crisis yeah in his case the crisis is coming from the outside it's a marriage problem and everything's blowing up there's tension in the home.

But I've had two debt-free screamers this week who I asked them what their I've had it moment, where you finally just go, that's it, I've had it. And in both of those two cases, they said, I was disgusted that we make this much and we're this broke. That's a created crisis. You're not about to be foreclosed on you don't you know but you look up and you go we make too much money we work too hard to have freaking nothing i've had it and you can just reach that down inside and when you do that that's that's when the switch flips that's when you say okay i don't care what the teenager thinks i don't care what your mother-in-law thinks i don't care what the neighbor thinks i don't care what anybody thinks we're fixing this crap and when you do that

now you're imposing your will on the chaotic life and you will bring order to it and it's your only hope of not believing your whole life broke so good it's so true it is it's and the other element of that that i think is difficult is that change it is it's it's embracing something new and that's one thing i just did a video on my show right before this um this show and just talking about just the simplicity of the baby steps so you can list out seven, right? There's seven. But the order of that brings order to people's lives too. That's one reason I think that this plan out of majority of financial people out there is the most successful financially. Because in order to have change, you need to have a plan that you have confidence in.

And there's a level of submitting to that, that this works. So even if you're listening to this and you're new to it just having confidence and okay i'm going to have change and submit to a plan create order everything that you're saying but you're doing it to a system that works and that's been proven which is the confidence that we get to bring every day on the show which is and that comes into almost anything i mean why would you push down on the accelerator if you didn't have confident that the car was going to go forward? And if it doesn't go forward, then people just stomp on it because you're surprised that it doesn't go forward, right? Why would you push down on the brake if you didn't think the car was going to stop?

You have confidence in the system. And, you know, that's why a lot of people fail at something like a diet because they try it for a little bit and they don't get any result and so they lose confidence to your point in the system and they bail and so they stick with it like a whole 45 minutes or something and um you know i will freely admit that i have no confidence in kale for anything. Actually, I read a thing that it's actually not that good for you. I have a lot of confidence in donut avoidance. Donut avoidance has worked real well for me, although my life is lesser for it. This is The Ramsey Show. Hey, you guys. Health insurance costs are only moving one way, and that way isn't down. And if

higher costs aren't enough, the wait times to see your doctor are longer, and it's harder than ever to get anything approved through the bureaucracy. So if you feel like the system is working against you, try a biblically-based alternative to health insurance, Christian Healthcare Ministries. CHM is a health cost-sharing ministry that's helped hundreds of thousands of families like yours take care of over $11 billion in medical bills since 1981. And CHM has also helped them stay true to their values and avoid miles of red tape. And CHM support goes far beyond meeting financial needs. They'll also help meet spiritual needs. Members become part of a family who will pray with them

and for them when they experience a medical event. So listen, y'all, there's no better way to take care of healthcare costs. CHM programs start as low as $98 a month. So learn more today and join at chministries.org slash budget. That's chministries.org slash budget. If you want to help us out, we could use your help around here. It's a huge help if you're listening on a podcast and you subscribe or follow, it changes all the numbers over at their platform and causes them to promote us.

And it's a huge help. It really is. It changes the algorithm. Same thing's true over on YouTube. If you follow or subscribe, if you share the show, some of the platforms have a share button and you can just send a clip to or send send a you know uh the link or you cut the link out and just copy paste and send it that'll work too there's all kinds of ways to share it if you're listening on talk radio just tell people about us we would appreciate it we know you are because all of our numbers are up dramatically and the only marketing we're doing is you so

yeah we don't have 300 million dollars to buy a stadium like so far so we're just here to help you and um you're helping us by telling people about us so thank you for that we appreciate it open phones here at 888-825-5225 logan is in chicago hi logan what's up hi dave thank you for taking my call um i i'm i'm in a big pickle right now um i just lost my job and i have a lot of debt that i don't know how many how how am i going to pay that's scary how old are you i'm 19 whoa you're on your own no i still live with my parents but i made some pretty terrible decisions in the last couple years so okay what kind of debt have you got sir i have a car loan about 24 grand and have about $5,500 worth of credit card debt that I still, I don't know how I'm going to pay this stuff off. So what happened to lose your job? Tell me about it. I came into work, and then they told me that they didn't need me, and then he just basically just relieved me from my job, and then that was Tuesday. What were you doing?

I was a manager at a travel stop. I was in charge of supervising employees, doing paperwork, things like that. So they do need the job done. They fired you. Why'd they fire you? They told me it was because of performance, and they found somebody better suited for the job. Mm-hmm. Okay.

Anything about that that you learn what do you what's your takeaway from that to be honest i i don't even know um you you felt like you were performing yeah and i i just don't know what happened um it was just confusing to me yeah what were you making i was making around 40 grand a year how are your parents doing with you being there and job loss and everything how's your relationship they're they're good for the most part um it's just trying to find another job before I lose my car or anything like that. So you owe $24 on the car. Have you looked up what it's worth?

Yeah, the car is worth $18 the last time I checked on Kelly Blue Book. And who do you owe the money to? Who's the 24 with? It's a Kia finance company. So it's a high interest rate? Yeah. What's your interest rate? I wouldn't say it's high.

I think it's 8% the last time I checked. Is this a local finance company? I don't know. They have a branch near you they do not okay so you just bought that you bought this from a dealer and they stuck you in this crummy loan yeah yeah okay because you're a 19 year old and they screwed you okay and you bought a car you're in a bot. You know that, right? Yeah. Yeah, okay. All right. Okay. So how's the job hunt going?

I'm really not getting any work that I would have hoped. It just isn't going anywhere for me. I just don't know what to do. Okay. All right. It just isn't going anywhere for me. I just don't know what to do. Okay. All right. Does Uber have a 21-year limit? Yeah, I know for sure Uber does. Does DoorDash?

No. Okay. I'll be dashing doors as soon as you get off the phone, dude. Might as well run the wheels off this $24,000 car and go make you some money. I want you, listen, come Friday night and Saturday night, your butt's working. You're not partying. Okay. Okay. Yeah. And period. not partying okay okay yeah and um period you haven't got you haven't any money to socialize

and you don't have any time to socialize because you're broken you're calling me afraid so you can't go hide that fear in a party you got to go you got to go get her done you got to go leave the cave kill something and drag it home you can do it i know you can um and and your performance this time is going to directly cause your income to go up so i'm going to dash doors and i'm going to talk to three pizza places before nightfall today the three neighborhood pizza places regardless if they're a chain a known franchise or a local and ask them if you can deliver pizzas for them today i want you standing in their lobby i don't want you on the phone i don't want you on their website and i certainly

don't want you texting or some stupid butt email i want you standing in the lobby with your beautiful smile and your hair combed and you go get some jobs okay you can do that can't you i know i can do it yeah i mean you got you got three or four hours before they before dinner time and logan we just talked about this in the last segment about how it takes humility to step into something new and i'll say this logan i would think as a 19 year old guy you went and got a salary job 40 grand a year you're kind of like this is awesome and then you're like no i door dashing and pizza delivery was not what i'm supposed to do my next step is supposed to be even better than where i was at but i think it's during this time it you're back to like four or five side hustles put together

throughout the week and working seven days a week until you land the good job until you land the good job so i'm not saying that's right a good point yeah so just keep applying but logan this is going to be it's kind of a hit to the ego to be like i i'm you know i'm delivering pizzas when i thought i was going to be having an you know some corporate job or whatever you were thinking you're going to be doing so again i want you doing anything that's honorable to make money till you get a good job yep yeah yeah here's here's what happens okay let me let me tell you why i'm telling you to do this because when you're broke and scared and terrified i can hear it in your voice and uh so can everyone listening right now and when you go into a job interview you sound You sound desperate. You walk desperate. You scream desperation, and they're not going to hire you.

But if you've got cash stacked from DoorDash and Pizza, your car payment is there, and you got $2,000 in the bank until you get into the job. Now you swagger into the interview, and your confidence is good, not cocky, but you're not screaming desperation and terror in the interview because an interviewer can smell this. You follow me? Yeah. And I'm trying to get that stink off of you so you can go win. And the way you do that, you get a little bit of margin between you

and the wolf that's barking up your butt right now. You're getting your butt chewed off by that car payment thinking you're you're thinking i'm gonna get repoed trying to keep from losing the car i heard you say it and i don't blame you i i appreciate that fear that but let that fear be a motivator your first step is stack some cash to change the way you walk and talk in an interview and then your next step i'm going to send you ken coleman's book proximity principle and the get clear and the get clear assessment good rachel and uh we'll do that in the and i want you to take all of that stuff for your long-term career goals and i want you to read everything on ken coleman.com on his website about how to get and land a job and go get that and solve this and then learn from this process to never be in this situation

again oh and by the way when we get to the other side of this you need to have six thousand dollars so you can sell a stupid butt car and pay it off and get rid of it and get you a five thousand dollar car like a 19 year old should be driving that's broke or that anybody should be driving this broke this is the ramsey show like a 19-year-old should be driving that's broke or that anybody should be driving that's broke. This is The Ramsey Show. Rachel Cruz, Ramsey Personality, is my co-host. I have been in a position financially where I was terrified, and I did not know what the

next thing to do was. And that's how we ended up doing this show to help people were in that situation, whether they're 19 or whether they're 59. Um, I will tell you the thing that I was telling that last caller, our 19 year old friend there. And,

um, uh, that I, when you encounter fear, not if you encounter fear, but when you encounter fear on something, I guess there's several possible reactions, but two come to mind right now. One is you go into fight or flight, right? You either are going to attack and do something active or you're going to freeze like a deer in the headlights.

And for those of you who have heard the saying, deer in the headlights, we live in Tennessee, literally when a deer is caught in the headlights, they freeze. And the stupid animal will stand there and destroy your car so and their life and their life in the process yeah and so by the way flight fight bambi bambi will total a car i'm just saying because they freeze so those are three things fight flight and free well flight is freeze i mean yeah it's the same category i mean it's they run forward so what i have discovered though, especially on financial things,

like losing your job as an example, or just waking up one day and going, oh, we're about to be repoed because we're so freaking out of control here, or we're about to lose our home, or we're going to retire and have to eat Alpo, or whatever it is you discover that's on your doorstep that scares the P. Wadden out of you. So if you're in that situation, I have always found that the best reaction is not flight and not freeze. It is attack. And everyone wants to get all analytical while you're in the middle of this,

and that's a form of freezing. And George Patton said it beautifully. He said a good plan violently executed now is better than a perfect plan executed next week. So when you're in that situation, square your shoulders, lean into it, and get after it. Even if what you're doing is not perfect, like you're doing things you don't want to do in terms of, I don't want to be in a

career where I'm door dashing for the, you know, when I'm 35 years old, starting at 19, right? You know, that's something you don't want to do. But I've done a whole lot of things in the name of activity because activity solves these things more than the freeze does or the flight. You can't run away from it. It'll chase you down, and you can't freeze and stand in the road. You'll get run over. So you've got to go into attack mode even if the plan is imperfect. And trust me, you're terrified your plan will be imperfect. But the other two are a death kn death nail you've got to get it you've got to lean into it and get it and when you look back later

that sheer activity will change your your neural pathways it will change your attitude uh it will change your spirit uh i'm feeling blue and depressed one answer for that not the answer not it's not a psychological dr john deloney might not agree but one answer for that is activity well that's what they even exercise is always accompanied with solving depression yeah that's what i'm gonna say that's why they say like if there's if there's major anxiety go for a walk like go out so like move your body no i think that that is sunshine yeah i mean there's sunshine and exercise hello but from the financial aspect that is just go get a job the version 19 years do something do it do something sitting and saying oh this is bad i don't know what happened i'm gonna you just you're standing like the deer in the headlights then

and so and it's it's not because someone has a lack of character. It's because we... You're paralyzed. Well, fear, you're going to deal with the fear. You just got to decide on purpose how to deal with it is what I'm suggesting. Because it's going to come. You're going to be in those situations. Nick is with us in Knoxville.

Hi, Nick. How are you? Hey, good. How are you, Dave? Better than I deserve. What's up? I'm wondering if it was the right time to purchase a home. I am

on baby step four. Currently debt free after being in almost $50,000 of debt. On the right track there, but I'm not sure if it was the right decision to purchase a home right now. Right time in what regard? In the economy or in your life?

In my life. And was it or is it? I mean, did you already purchase it? I did purchase it, yes. You did, okay. You're in Baby Step 4, so you're debt-free and you have your emergency fund in place. That is the time we would tell you to do it in terms of Baby Step too much house nick was it too much are you are you stressed about the payment is that why you're calling or you're just curious um i'm kind of wondering if it's uh the amount

that i owe um and it freaks me out a little bit i've never been in this much debt. The mortgage is $236,000. I make about $90,000 a year. I'm based salary and commission, so that's roughly what I'll make this year. You're single? And I sold some land that was worth about $120,000, so I could use that as a down payment. So your mortgage is $230,000 or your purchase price was 230 mortgages 230 i put down 60 60 what'd you do with the rest of it uh i haven't saved away right now um i'll have to pay taxes on some of it because it was uh okay inheritance and you have to have an emergency fund correct okay and that used up that used up the other 60 correct okay i got you okay

okay that makes sense how old are you and then 30 and say 24 okay wow all right i don't hear a single thing in this that sounds bad how much is your payment compared to your income? My payment is going to be $1,660. I'm just wondering. I took out a 30-year. I know you guys recommend a 15-year, but I was wondering. I would pay it off then as soon as you can pay it off. I wouldn't refinance it just to do that. But you're 24.

It's the first time you've done this. The first time you do anything of scale or size, you feel the weight of it, that's normal. You should. That means you're wise. If you didn't feel a little bit of pinch when you do something, the first time you pick up 300 pounds, you would feel it, right? You picked up 230 pounds.

You feel it. 231 pounds right and you you know and so that that just means you're wise you're you're uh but the numbers that you're giving us are all fine and the order that you did everything are fine we would have done a 15 you're right but i would just challenge you to get to paying on it let's pay it off in seven or eight years you can probably do that because you're that guy yes sir i i'm also wondering i believe for a year i'm going to have a friend rent off me who's looking for a spot so i think that'll help out with the mortgage but i wasn't sure if that'd be a good plan also moving forward to help pay it off faster yeah i mean if you're single anything you can tolerate you want to yeah i mean anything i think you want you're you're i mean you're okay though what is it i'm still not if you called us

and asked should you do this everything you said follows the guidelines and we would have said nick by the house uh only we would have put you on a 15 but other than that everything else lines up i don't hear anything here to be concerned about is there something i'm missing no i'm just making sure that that follows yeah no it's great and and nick and honestly because we tell people if they're in a position go ahead and get in because housing pricing house prices continue to go up we have no clue what's going to happen with interest rates and everything. But like it's to the point that if you have the money and you're able to buy, go ahead and get in. Now.

Because it's going to be more expensive next year and the next year and the next year. And there's not a bubble. There's not a crash coming. I mean, none of that's happening. So if you have the ability to get in, go ahead because it's terrible. I mean, like just i mean we were looking at numbers last week and just i mean from you know salary generation gen z this is the toughest time home buying has been in 50 or 60 years i mean it's tough right now it's not

going to be forever but right this second high prices and pulled it off salaries are not income is not kept up with it so it is if you want to know more about this, folks, you can go to RamseySolutions.com slash real estate. Or if you need to get a good agent in your corner, go to RamseySolutions.com slash agent to help you buy. And if they're Ramsey trusted, they'll make sure you're doing it the way we teach. They're not going to assist you in doing something stupid

if they're Ramsey trusted agents. So go ramseysolutions.com agent you did good nick