The Ramsey Show - App - Investing in Crypto = Gambling (Hour 3)

Episode Date: January 30, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss: The best way to combine assets, Investing in crypto (and why you shouldn't), Moving forward after bankruptcy, Overtime vs. a second job, Taking a pay cut to get a job you love. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving and storage studios, it's The Ramsey Show, where America hangs out to have a conversation about your life and your money. I'm your host, Dave Ramsey. Jade Warshaw, Ramsey personality, is my co-host today. As we answer your questions, you jump in. The phone number is 888-825-5225.

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We're not going to spend the money they spend just to be famous. We're going to be famous by helping you and you spreading the word. So thank you for that. Thank you, thank you, thank you. You're what got us here, and you're what will take us there. So that's what we exist for. Jake is with us to start off this hour. Jake's in Tampa, Florida.

Hi, Jake. How are you? Hi, Dave. How are you? Better than I deserve. What's up? Me too. So I've got a question.

Me and my fiance are getting married in May. Yay. How old are you? We're combining 22. We're, yeah, thank you. How old are you? We're combining, 22. We're both 22. Very cool. So we're combining our assets and our finances and whatnot. And I'm mainly, all my investments are in the S&P 500 and 401k.

Hers is spread out with like single stocks. So my idea, my thinking was I wanted to get it in the S&P 500, maybe a couple of mutual funds and not the single stocks because, you know, she's up right now with them, but you know, the S&P 500 is something that you can just leave your money in and let it grow. How much is it in single stocks? About $45,000. Good. Very good. Good for you. Well, it's great that y'all are talking about this ahead of time.

It's very well done. And your play would be better than her play. Agreed. The S&P 500, an index fund, would be a better play. I don't personally use the S&P 500 for my 401k, nor do we recommend it. Instead, we actually pick mutual funds that as a group will outperform the S&P 500. And there are a number of funds that do outperform it. There are a number of funds that don't. So you have to look carefully and get some people in your corner to help you do that. But we spread our investments across four types in retirement accounts,

growth, growth and income, aggressive growth, and international. Full disclosure, I use an S&P 500 to park money in way beyond having been 100% debt-free, way beyond having a million-dollar net worth, way beyond having my 401Ks and IRAs fully funded in the four types I'm talking about. But like when I'm saving up for five years or three years or two years for a piece of real estate, I'll just throw money in there and park it short-term. Like a savings account. Well, a long-term savings account.

I wouldn't do it for two months, but I mean for a period of time, because I can make more on it than you're going to make a stupid CD or something. But I don't use it for two months, but I mean for a period of time, because I can make more on it than you're going to make a stupid CD or something. But I don't use it for retirement. Around here, we've always said be across those four types. So then we could move from money into some of those four types. Yeah. And then maybe my money as well. What we teach is 25% in each, growth, growth in income,

aggressive growth in international, and look for long track records. And if you're pulling up the data on them on the website, it's going to show an S&P overlay on it. It's going to say, this fund, fund XYZ, here's what it's performed for the past 25 years or past 15 years, and here's what the S&P has done. And if it doesn't beat the S&P, for God's sakes, don't do it. Just do an S&P. Right.

Right. Yeah, of course. Jake, what's your wife's take on this? When you've talked about it, what's her reaction? I mean, she's ready to do it. We've talked a lot about money, and we know each other's finances. We're completely debt-free. She went to college debt-free.

I never went to college. We have a pretty decent income, too. What is that? What's your income? About $160,000 to $180,000. I'm in sales, so it goes ups and downs. When it's combined, that's what it'll be? Yeah, when it's combined, that's what it'll be.

You're 22 years old 100 debt free you make 180k y'all are gonna be so freaking rich that's the scary part i'm mad at the money and i'm like man no that's that's not scary that's a wonderful place to be jake but it's a it's a responsibility you have to be careful yeah and cautious and you're wise to do that so basically what we're saying is the s&p 500 is what's called passive investing and there's a whole group of people that believe in that because some mutual funds don't outperform it and that's fine it's just i i think you can do better and i but full disclosure i use both and so i'm my portfolio that i'm outlining would have if you're not real careful would have more risk than yours but a lot less than hers and so that's kind of where we're kind of over on your side of the coin there but just

past you a little bit okay and then she's way over there you know in the high risk stuff with the stocks so yeah i'm getting out of the single stocks and i'm going to be in mutual funds preferably across those four that outperform the s&P, if not be in the S&P. I like it. That's what I would do. That is what I do. And it does work. I mean, you can look at the data, the millionaire data from the millionaire study that we did.

We put the white paper on it in the back of the Baby Steps Millionaires book. So if you want to read the whole study, it's back there. But what we found is, as the typical whole study it's back there um but what we found is is the typical millionaire it's it's doing their 401k and truthfully if he just does the s&p he's easily going to be there with his it'll be fine easily easily um the single stocks just have way too much risk for me i don't like the risk of it and the data on people that buy and sell single stocks is they don't they don't outperform right so the rule of thumb with single stocks would be keep it a very very very low percentage of your world if you were going to dabble in them exactly yeah yeah we say 10 max of your net worth

so like if you work at a place and you really believe you work for apple and you really believe it's going to be a great stock which which it is a great stock, you know, and you want to buy that as a long-term as an employee benefit. And you're going to buy, you get most, most places give you a 15% discount as a employee buying stock. So you're just dying to own some Apple stock and you're an Apple executive. Well, that's fine. Just don't let it be more than 50, more than about 10% of your net worth. Because years ago, Jade, I was coaching a lady.

It's really sad. She'd worked for Procter and Gamble for many, many, many years, like, I don't know, 30 or 40 years. And she'd moved all of her 401k money into Procter & Gamble stock. And she was just retiring about the time it went down. It went down like 40%. So she had like 700,000 that turned into like 300,000, it turned into like 300,000. Ugh. Or 400,000. I mean, it went almost in half. And it just... Oh, that's... That lack of diversification, though, left her susceptible to that. That's what it amounts to.

This is The Ramsey Show. The jade warshall ramsey personality is my co-host today so i just saw a feet babylon b popped up in my feed that that payday lenders have now set up on the egg aisle. Anytime the price of eggs is making headlines, you know you're dealing with a wacky economy, but even news about layoffs and on and again, off again, recession, crazy high interest rates. This is a weird time we're in right now. And we're here to give you a plan for your money. So we want you to join us for our Building Wealth live tour as we show you how to build wealth and keep it. George Camel, Rachel Cruz, Jade Warshaw will be in Indianapolis in just a couple of weeks, February the 16th. Then Ken Coleman, Dr. John Deloney, Jade Warshaw,

and I will be in Austin on February the 23rd. Next is Building Wealth Salt Lake City, April 24th, with George, Rachel, and Christina Ellis. And finally, we're closing out the tour in Anaheim on May the 2nd. Ken Coleman, Dr. John Deloney, and Christina Ellis. Tickets are only $49 for each of these events. Come out. We would love to have you. These events are exciting.

They're fun. If you're part of the tribe, it's kind of like coming to the pep rally. Yeah, absolutely that. You just want to come out and just be with other people that are trying to win with money and that are doing weird things, not normal, like the crazy people in the culture. And you don't want to be conformed to this world. You want to be transformed by the renewing of your mind. And that's what we're doing. We're going to show you how

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Salt Lake City, and of course Anaheim May the 2nd. So that's our schedule for that particular live event that's going to be running all over the place this spring. Exciting. Angela is with us in Odessa, Texas. Hi, Angela. Welcome to the Ramsey Show.

Hi, how are you guys? Better than we deserve. What's up? So I just have a quick question. We are 26. The only debt we have is our home mortgage, which sits at $169,000. And we currently have a little over $11,000 into cryptocurrency. And our question was, what would be the next step?

Would we leave it there or would we take it out and invest that money somewhere else? Well, if I'm you, I am not going to stay invested in crypto. The track record has been poo-poo over the long haul. So I would take that money out almost instantly. Are you guys investing in 401ks or IRAs, anything for retirement? Currently, my husband is the only one working, and he does have a, I believe he has a 401k in a Roth, I believe it's called. Do you guys have any money set aside for savings that's kind of liquid that you can get to? Yes, we do.

How much? I want to say we have about 13 000 right now okay you got a good solid emergency fund and then it's time to do some real investing crypto is um gambling right and i think you know i'm gonna i don't know do you know that the that the you know, I don't know, do you know that the last year and a half have been really unkind to crypto? Yes, I remember watching it during COVID, right after we invested, and I remember watching it go really low and then going back up high, and now we're just sitting there. But, I mean, you've noticed the news that one of the largest scams in history was perpetrated in crypto? Yes, yes, sir. Makes Bernie Madoff look like small potatoes, okay? So the scams are everywhere around it.

It's an unstable place to put money, agreed? Yes, sir. Okay, all right. So I don't put money in places that are unstable. Someday crypto may stabilize, and someday it may have a track record. But until it does, I won't be putting any money in it. And I was saying that back when I got entire pages of Reddit devoted to hating me, and entire pages of Tic Tac hating me, and everything,

because I'm telling people not to put money in stupid butt crypto. Come on, Dave. But, you know, and now I'm a genius, you know, but I also told them not to invest their money in Beanie Babies a few years ago, and people were believing in that too. It's almost like you've lived to see a few things over the years. It's almost like, yeah. That's how I lost my hair, but yeah. Joe's in Brooklyn, New York. Hi hi joe welcome to ramsey show hey dave thanks for taking my call a long-time

listener and first-time caller thanks how can we help yeah so i'm in a bit of a predicament and it involves uh basically a money that i owe to family and friends as well as an upside down car. But I think what kind of led to this situation kind of goes back a few years, maybe four to five years when I became heavily involved with forex trading or currency trading and eventually got me to a point where I was losing a ton of money, started taking out credit cards, um, and funding, um, kind of that endeavor that way. And then eventually when I ran out of money out of my credit cards, I would start taking out personal loans. Once I couldn't take out any more unsecured loans, I started taking loans against my car and then eventually ended up borrowing from friends and family.

And so you sound like an addict. This sounds like an addiction. Yeah, it was an addiction. And so unfortunately, it got to a breaking point where I had to file for bankruptcy May as of last year. But I did keep my secured loans as well as the money I borrowed from my family. And I went through therapy and all that. So it was really a truly, truly a traumatic time for me. And so now, yeah. And now I'm at a point where I just really want to, I have been actively trying to tackle this. Um, the, so what do you owe on the car? Yeah. So there are two cars involved. Um, my personal car, I owe $13,600 at a rate of 24%.

And during the time, I actually took a loan out, and I used my brother's car as collateral for $4,700, which is the remaining balance as of today. Okay. And what is the $13,600 car worth? That's worth right around, say, like $4,300. Okay. And what do you make? My net income per month is $6,550. Okay. And you live in Brooklyn, New York?

Yeah. Ouch. Okay. Because you've got an expensive place to live, right? No, no. Luckily, one of my brothers and I found a pretty inexpensive place to live, so my rent right now is right around $1,100, which includes utilities, and that's my share.

What do you do for a living? I am in business development and sales for a tech startup here in midtown Manhattan. Okay. If you work more there, does your income change? As of right now, I'm, like, tapped out with, like, the number of hours I'm putting in. I'm, like, working from, like, 7.30 in the morning up until, like, 7.30 in the evening, like, Monday through Friday. All right. Here's what I would do if I woke up in, I'm like working from like 7.30 in the morning up until like 7.30 in the evening, like Monday through Friday. All right. Here's what I would do if I woke up in your shoes.

All right. Are these your only two debts? No, you have the family debt. Yeah, I have my family debt totaling $90,000. Okay. Man, I'm sorry. Okay. Man, I'm sorry. Okay.

Well, your brother's car concerns me more than yours. Yeah. Because you need the stress of not screwing up his life off of your back. Yeah. That would bother me more than my own personal car. Does it you? Yes, it does. It's got you been raining on me. And they're almost the same amount.

No, no, yeah, and it's a smaller amount. I'm sorry, it's 14. So that's easy anyway. So what I would do is start doing a really, really tight budget and just attack his debt like a vengeance, knock it out, then attack your car debt and just knock it out. There's not another answer for it. You just got

to live on absolutely nothing and really in about four or five months you ought to be able to knock both of these out if you just live on nothing you don't do anything anyway but work so you don't need to go out and party or go out to restaurants you don't have any money you got to put it all on this and so hey we're going to help you with part of your healing we're going to put you through financial peace university hold on i'll have them. Have Austin pick up and get you signed up for that. Thank you for joining us, America. Jade Warshaw, Ramsey Personality, is my co-host. Open phones here at 888-825-5225.

Elizabeth is with us in Minneapolis. Hey, Elizabeth, what's up? Hi. I just have a quick question, maybe a life debate here, honestly. I'm 26 years old. I am a 911 dispatcher. And I'm trying to pay off my debt. I have maybe a total of $600 in medical bills, and then I have a car payment. I got a new car due to some other issues back in 2021. I've been making payments, even extra payments when I can. I have roughly 19.3 left on my car.

I recently switched 911 centers because I wanted to work with law enforcement and I finally had the opportunity to do so. But my old center that I still have connections with and I could go back to is kind of tugging on me in a way because at my new center I don't have room for overtime. There's not a lot of overtime because it's a smaller center compared to the center that I was at before. So you were doing 911 before? Correct. I've been a 911 dispatcher for five years now. So why did you change from one center to the other center? I felt burnt out. I felt that maybe EMS wasn't for me, and I'm now experiencing, unfortunately, as bad as I wanted to do law enforcement.

I wanted to do law enforcement dispatch since I started. Wait a minute. You're doing 911 before. You're doing 911 now. How did you think that was going to solve burnout? I don't understand. A different center, a different style of calls. I wasn't dealing with the traumatic medical calls compared to now just dealing with passing those said calls along. There's not as much overtime, so I wouldn't be tempted to work as much. At my old center, I would pull like 14 to 16 days in a row without a break. That's roughly like anywhere from six to eight hours in between shifts. So what was the pay cut with you switching centers?

How has that affected your income? The pay cut actually wasn't. I actually got a 40-cent increase switching centers, but I have PARA, which is the Minnesota Law Enforcement Retirement, that they automatically take out because when you first get hired, it's either you take it or not your hourly rate your income is way down because you're not working nearly as many hours right correct so what did you make a year before and what do you make a year now um before it was i have it written down to me. I apologize to you one second here. Here's the thing.

If you're not going to work the extra hours at the call center because it's too much on you mentally or it's too much on your mental health, fine. But you've got to find a way to fill that gap because you've got this debt that you've working, whether it was 15 or 10 or whatever it was per week, you've got to put that same effort into another job that's making you just as much money. I don't want you to take a pay cut because you've got to get out of this debt. And I'm not saying it has to be at the 911 center. Okay. What do you make an hour? I make $31.81 an hour. Okay. And your income, and so make? $31.81 an hour. Okay.

And your income, and what did you, and so you made $31.40 before? Correct. Okay. And, but you're working half as many hours. I'm working still an 80 hour week or paid period. So 80 hours every two weeks. But I don't have that extra like 20 to 30 hours that I would put on myself at my old center right so we got to find that elsewhere right so I guess

my question was or is I have an opportunity to go back to my old center and get that overtime and help pay off debt or I would pick up like I don't know what other type of job other than like maybe Instacart or something just because of how crazy dispatch center hours are. Yeah, look, that wouldn't be as much. You've already told us that when you were doing 80 plus hours at the old center, it wasn't sustainable. And that's fine. Like, I understand. I mean, I've never done it. But when you tell me that it's stressful to your mind, I believe you. And that's fine if you don't want to work more than 80 hours at that particular 911 call center at your old one. The point is you've got to get those hours somewhere, whether that's Instacart, that's driving Uber. I would love for you to be able to make the same amount per hour

that you were making, but you got to get this debt paid off. What else have you done as a side hustle that you could do um i've never honestly had a side hustle before um once i became a dispatcher that kind of just basically it um i used to work in like food industry like my very first job before anything else was like the chick-fil-a um all right so yeah i'm gonna i'm gonna look around for something i can do whether it's dog sitting uber uh instacart i don't care uh what it is but i'm gonna look for something i can do that you can make really good money at for a short period of time that you can work around your normal 40-hour schedule, and I'm going to stay where you are. Okay.

Because your need for extra hours is only $19,000 worth. Then you don't have a need for extra hours. You make $50,000 a year. You can live on $50,000 a year in Minneapolis if you don't have a $19,000 car payment, right? Right. Okay. And so what I want you to do is just temporarily for like one year, gear up, work your butt off, and keep the job that you like.

Because what you're saying is I was going to hold my nose and go back to the other place in order to get out of debt. Instead, I would just stay where you are, hold my nose and work an extra gig of some kind, find a good hustle and grind side hustle and knock yourself out for a year and be debt free and then quit the side hustle and have a great life. Yeah. You're going to be free before

you know it i think in your mind you're trying to change your whole world you don't need to change your whole world you just need to get a side job work it and pay off twenty thousand dollars of debt and you'll be free back to the old job that was burning you out and you're working freaking 80 hours i'd sell a stupid car before i did that but i think you can just pay off the car in a year and keep it by working a side hustle. That's what I would do. And then you've got your best world. You set your best world up.

That's a good move. Justin's with us. Justin's in Atlanta. Hi, Justin. Welcome to the Ramsey Show. Hey, Dave. My wife and I have been listening to you for around five years, so thanks for all the wisdom.

Thank you. What's up? So our question basically is, what's the best way to use stock grants from our work to pay off our mortgage early? We bought a house about a year ago. We have about $300,000 left on the mortgage. We have nearly $16,000 worth of stock grants that vest quarterly. So what would we tell you to do? You've been listening five years.

I don't know the specifics. I know you don't want me to keep it in that company, so I guess the two options are sell the stock. Cash it out as it's vested and throw it at the mortgage. Okay. So you wouldn't put it in a mutual fund or an index fund and let it grow a little bit nope you're already investing 15 you've been listening five years what's baby step six pay

off the mortgage it's not invest extra in mutual funds no it would be to put it into a mutual fund until it got to be the amount for the write-off for the mortgage have you ever heard me say that in five years no but i've never heard the mortgage. Have you ever heard me say that in five years? No, but I've never heard this specific question. But you've heard people say, why don't I put it into a mutual fund? Because they call every week and say that. Why don't I just put it into a mutual fund instead of paying off my mortgage? Justin, that's what you want to do.

That's what you wanted to do from the moment you called. No, I genuinely don't want to do either or. Oh, okay. Well, then let's keep... I'm good either or. Oh, okay. Well, then let's keep... I'm good either or. I just... Let's keep... I've heard Dave say, depending on the timeline that you have a mutual fund... That's if you're saving up for something. In this case, go ahead and continue to invest your 15% into your mutual funds, into your retirement, and then we chuck anything extra to the mortgage.

And in this case, you selling those vested stocks or getting out of those stocks is going to be something that you can chuck toward the mortgage. Don't put it in a mutual fund. It's a baby step six move. That's exactly what it is. That's your baby step six flex. There you go, dude. This is The Ramsey Show. so our scripture of the day proverbs 1 5 let the wise hear and increase in learning, and the one who understands obtain guidance. B.B. King said, the beautiful thing about learning is that nobody can take it away from you. Ooh, that's good stuff.

Jade Warshaw, Ramsey Personality, is my co-host today. Thank you for joining us, America. Andrew is next. He's in Charlotte, North Carolina. Hi, Andrew. Welcome to, Ramsey Personality, is my co-host today. Thank you for joining us, America. Andrew is next. He's in Charlotte, North Carolina. Hi, Andrew. Welcome to the Ramsey Show. Hey, how's it going? Better than we deserve.

What's up? I am calling because me and my wife, we are both 20 years old, and we've been doing the Ramsey plan, and we paid off all our debt and everything. And now we are thinking of kind of changing our jobs because now we really want to do something just to collect a paycheck. We want to do something we enjoy more and something that's more impactful. And just trying to weigh the options on that because it is going to be a pay cut with that. Very cool.

What are you thinking about getting into? I want to go into youth ministry at my local church, and she currently is a preschool teacher, kind of like a private kind of thing, and wants to go into the public school school setting um just as an assistant okay what's it going to take for you guys to make those transitions um i guess just uh just applying and hoping we get it um so what's your household income now and what would it be if you did this um right now it's about 100k um and it'd be moving to between uh 60 and 65 okay all right well what i would want to do is a path that takes me somewhere rather than just down and so um neither one of these things sound like what you will be

doing when you're 45 the number of 45 year old youth pastors is fairly small okay well so you likely would move I mean a normal path would be to move towards associate master or maybe senior pastor later that's a a normal path would be to move towards associate pastor, maybe senior pastor later. That's a fairly normal path. I mean, I've got a friend who's 67. He's a senior pastor of a major megachurch in a metropolitan area, started as a youth pastor decades and decades ago. a career path that increases my effectiveness, increases my joy, increases the scale of the people I'm helping. And if these moves take me on that path, good, if they're a step in that direction.

But just I'm going to dumb down my life to have more joy when I'm 20. No. Right. Okay. I think both of these things are congruent with what I'm talking about, though. In other words, I think your wife could move into this public setting with the idea of getting her degree, getting her certification, becoming a teacher, maybe even someday doing some tutoring,

maybe even opening up her own tutoring operation, and at 50 years old owns 17 of those across 14 states. I don't know. I'm making that up, okay? But it can start with being the assistant teacher, right? Right. And it's all teaching, and you can start with being the youth pastor of a small congregation that doesn't pay squat and be serving the Lord, but that doesn't need to be your end game. Agreed?

Agreed, yeah. So let's lay out a better end game and then move in these directions, because otherwise you're running from something instead of to something. Okay. these directions because otherwise you're running from something instead of to something okay so jump online with ken coleman and uh let me do this i'm going to give both i'm going to give you two of the assessments the career assessments that ken developed and our research team developed and i want you to take those and they're going to give you some indications on what you can do where you can go and then i want you to lay out, and they're going to give you some indications on what you can do, where you can go. And then I want you to lay out and say, all right, how does this end? There's an old book that's fabulous called The Seven Habits of Highly Effective People by Dr. Stephen Covey. And one of the seven habits of highly effective people, effective in ministry, effective in the classroom, effective in business, effective people as they begin

with the end in mind. And the end being, okay, like when you're my age, dude, I'm 63, what are you going to be doing? I'm glad I did this with my life. I was a good steward of my life for the Lord. All right. That make sense? Yes, sir.

Yeah. Now, however, the only thing, we did take the career assessment. We did that this past week. Oh, wow. Very good. You're ahead of me. Okay. Cool.

Yeah, yeah. So did it solidify what Dave is telling you? Yes, yes. so did it solidify what dave is telling you uh yes yes and i mean it seems more like uh that's the direction we should be going but i think we just need to like you're saying just have more um a more like long game plan yeah so i mean when when when we started this business uh the year we started it, I made $120,000 the year before doing real estate. And this is 1994, okay? And we opened shop in 1994, moved out of my living room into a little tiny office. And that year I made $60,000. So pretty much what you're talking about.

I went from $100,000 and some change down to $60,000. And Sharon's like, where's the financial peace but but but we were going somewhere with that that was not oh we're going to be satisfied and that's what god's calling us to do and we're going to have the joy of helping people and we're going to make half the money no we knew that we could help more people and more people in their and over the years we found lots of ways to help people and lots of ways to expand what we do here and the effectiveness of it. And it's been not only very satisfying but very lucrative. Yeah, it's good.

You have to have a long-term vision. Tiffany is in Memphis. Tiffany, we're short on time. Go straight to your question. Yes, so we are in Memphis, as you said, and we're looking to make a move to Chattanooga next year, possibly around May. And we're wanting to have a really down payment. So we would use the profits from our home, but any extra money, should we put that on top of our mortgage payments, like our savings or put it in like a high yield

savings account separately doesn't matter okay i just wasn't sure if there was like a tax like you're paying less i don't you're no tax on your sale of your home you're going to have no tax on and up to half a million up to a half a million dollars married filing jointly and uh the that's profit that has nothing to do with the mortgage okay and i meant interest rate i just wasn't sure if we put more towards it i guess that wouldn't matter because you're paying the interest rate anyways yeah yeah you're gonna make about the same interest you're gonna you're gonna pay taxes on the interest on the high yield but it's not enough money the big difference here is that you say the money that you have one year from now will not be due to this decision.

It will be due to how much money you put into it. You're not going to make any money on it either way. Both of them are two or three, 4%. Okay. Okay. Okay. 4% on a thousand is four grand.

So if you have a hundred thousand in there, it's because you put a hundred thousand in there, not because of the four grand. Okay. Perfect. See what I'm doing? Okay. Yep.

If you're doing it for 10 years, the interest rate matters a lot. Sure. If you're doing it for one year, it doesn't matter much. I mean, it's a glorified shoebox to put money into. I like it. I like the plan. So just think it through. I like paying the extra on the mortgage because it doesn't accidentally end up in a bass boat.

That's what I would do. That's what we did. That's what you did, exactly. That's what I would do. That's what we did. That's what you did. Exactly. When we got ready to move. That was your go plan. We continued. We were making extra payments on the mortgage before, and we knew we were moving, and we

thought, let's just keep doing that because we know it's not going to get spent on anything else. Yep. That way, it gets stuck. It's a forced savings plan. That's right. You can't get your money out except by selling or refinancing, you don't accidentally go buy a new car yeah you know oops you know people do this sometimes i've heard that uh exactly randomly happens they were forced into

it they were forced into it and now they're in repossession yeah ouch scary out there it's really really scary it's a good question tiffany and it's you know here's the beauty beautiful thing about what you're asking. You're one year away and you're actually thinking about it. This is what adults do. Well done, Tiffany. Adults devise a plan and follow it. Children do what feels good and are impulsive and YOLO their butts off.

So it's more fun to be an adult, by the way. You have more choices. Children don't have choices. They get told what to do by the adults. That puts us out of the Ramsey Show and the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, what's up, guys? It's Jade. Look, if you like what you heard in this episode and want to know more about getting started on the Ramsey baby steps,

go to ramseysolutions.com and click the Get Started button. We'll help you figure out the best next step for you based on your specific situation. That's ramseysolutions.com and click Get Started.