The Ramsey Show - App - Is My Car Too Fancy? (Hour 2)

Episode Date: March 19, 2024

Девочка-пай Live from the headquarters of Ramsey Solutions, this is The Ramsey Show. It's where we help you win in your life. We want to help you win with your money. We want to help you win with your relationships. We want you to win at work. And that's all done through just practical, hope-filled advice that has worked for decades. We're here to help you. I'm Ken Coleman. Dr. John Deloney is with me. The phone number is 888-825-5225, 888-825-5225. Hey, if you're brand new to the show and we hear about it all the time

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So if somebody's been listening and watching and you go, man, it's nerve-wracking, I get it. Trust me, our nerves are wracked. Hey, join the club. We want you to feel free to reach out today. So that's your invitation. Please join us, 888-825-5225. Let's go to Baltimore, Maryland, where Greg is waiting. Greg, how can we help? I recently purchased a car, and I think it's a mistake. Oh, give us some evidence that makes you think it's a mistake. Well, it's a Mercedes.

It's very luxurious. I feel like the gas is premium. That's a fact. That's not a feeling. I've got one of those. That's a fact. That's not a feeling. I've got one of those. It's a little extra. How much did the car cost? $17,000.

$17,000. All right. And did you take a loan out on it? I did because I didn't have a check at the dealership, but I'm going to pay it off as soon as the first bill comes. So you've got the $17,000 in the bank? Yes. Oh, okay, great.

So we're off to a decent start here. How much money do you make? My household is about $160,000. Well, I've got great news for you, Greg. That car's not too expensive for you. Yeah, what's your hang-up, dude? What's going on? Not to mention you actually have the money in the bank,

so you've been disciplined enough to save it up. So what's making you think it's too much car? Well, it's a really nice car. What year is it? 2013. Bro. All right, listen. What model?

It's an 11-year-old car. I know. Hold on. I'm going somewhere. What model is it? It's a C300. Dude! I got the 2013 C250. That's not too much car.

It's a great little car. Did you grow up with not very much, Greg? Yeah, we were pretty poor. Yeah. And when you grow up that way, sometimes you... those people drive Mercedes, not folks like us. Yeah.

And then you put those people into a category of bad people. No, not bad people. I just feel like I don't deserve it. Okay, yeah, you got to stop with that nonsense. Yeah. You know what, Gregreg is it that you don't think you deserve the used 2013 mercedes or is it that you think you're being irresponsible yeah maybe that's it i that's what i'm hearing i don't want to necessarily hang that on you but

you started talking about oh it's 17 000 and then the he's finding a reason to break up with a car. You know when you're dating somebody in high school and you're like... Because he thinks he's being irresponsible. That is $17,000? Where I come from? That's what I think is going on. Am I right, Greg? Yeah, something like that, yeah.

Most of the calls we take with people in your situation on this show make $160,000 and they've just bought their third tesla or a 50 to 75 000 truck we got that call yesterday yes like when it comes to the number like you are showing incredible restraint and discipline by buying a 17 000 car and by buying a used car where somebody else has paid all the depreciation on this thing. If you don't like it or don't want it, sell it. That's true. Who cares?

How many miles does it have on it? 77,000. Yeah, here's what's interesting. I got mine a steal of a deal. I bought it from a dealership and an old couple had just turned it in. I think I got it with 40,000 miles. So it was practically a brand new car. You remember what I got.

And it's still, here's the thing about the Mercedes. The only thing I would say, because I'm watching it. The repair bill's high, huh? I just put brakes on it. Just a normal maintenance. They're proud of those brakes. It's everything on the Mercedes they're proud of. So what I would tell you, Greg, is that a part of this purchase, you've got the 17 to pay it off, but you do need to understand that, yes, your gas bill is going to be more. Everybody else is excited about gas dipping into threes, and I'm always like, because again, it requires the premium gas. You feel me, don't you, Greg? Yeah. So you're also looking at the inflation that is always there with any kind of car that requires premium gas. You're also looking at it's a lot more expensive to take care of. However, that car, the reason I got that car is it was a great deal, but it's also going to go to my kids.

And if I take care of that, which I am- It'll last forever. And I plan for a Mercedes will run forever if you do and you save in a sinking fund. So you need to have a budget item in your budget for that car so that when you've got to pop $1,500 for brakes, you're still going to have some antacid issues, but you've got the money. Does that make sense, Greg? I do want to prepare you for that because that's something that I have to think about. Yeah, that makes sense. Well, can you do that? Yeah, I can do that.

I know you can. I wanted you to hear you say that you can do that. Okay. But I think you need to say, is it okay? John, I still think he's dealing with, he thinks he is just highfalutin, just pissing money away. Other people drive Mercedes. And I want you to say, whatever you and your household have done, y'all worked your butts off, you're doing good, you're paying cash for cars,

you are making six figures, y'all are doing great, man. You may need to lean into this new identity that you have, this new world where I work hard, I get paid, I get rewarded for the hard work I put in and we're extra generous and I buy 10-year-old, 11-year-old

used cars, but when I do I get a nice one or great or dude here's the other thing I'm I'm not a Mercedes guy I'm an old beat up truck guy okay right so that's fine um it comes at a cost I look ridiculous in the truck I drive sometimes it like it's silly and also, that's all right. See what I'm saying? So if you're going to lose sleep over it, then sell the car. But if it's an identity thing, that's your new thing to work on, okay? Because you're a good man who worked hard.

And, bro, 11-year-old used cars. Yeah, you're fine. Get it, man. All right, John, I've got to flip the tables on you here. Okay. What about your Texas upbringing, Texas tech pedigree use cars you're fine get it man all right john i gotta flip the tables on you here okay what about your texas upbringing texas tech pedigree makes you think that you don't deserve more than a beat up truck i actually do um i went to i don't know if it's a deserve but i think it's okay i went to

buy it's okay i saved up went to buy it and um to get me a brand new tundra and i went to the dealership got i got all worked out and I just couldn't do it. And I came on with a Highlander. Great car. It's a great car. Good car, good for grocery carrying. Why did you do that? I just wasn't in a place psychologically to do it yet.

I will one day, but I just wasn't there yet. All right. See, I like turning the tables. I'm not going to fight myself on it, but I do know, oh, this is an achy point for you, John, because me growing up, those people drove the new trucks. Yeah, and that's interesting. In our house, we didn't do things like that.

Yeah. Well, that's for me to work on. I had the same issue. Yeah. You know, I was like, what? You're going to pay that much for gas? I think my old man's still freaking out about it when I told him what I have to pay for gas, you know?

But it is what it is. Good stuff. Hey, thanks for the call, Greg. You're in great shape, my man. Enjoy that, Benz. This is the Ramsey Show. Welcome back to the Ramsey Show. I'm Ken Coleman. Dr. John Deloney is with me. We are here for you. 888-825-

5225. 888-825- 5225. Okay, we825-5225. Okay, we've got a brand new event. This is breaking news here. We never do breaking news on the Ramsey Show. James, I just felt like saying it because I do TV. I do this, and I've never said breaking news.

So we've got some breaking news. Dave Ramsey's Investing Essentials is a brand new event. It's a deep dive into how Dave invests himself and thus how he teaches investing. And this is the first time ever. That's why it's breaking news, James. First time ever. And so this is going to be really, really fun. He's even going to include how he buys real estate.

And I think at this point we could say Dave's a real estate baron, can't we, John? He's a mogul. Oh, that's even bigger than a baron. I think that's... I think that's probably right. Sounds bigger. We don't know. We'll look it up.

James will Google it. But we know that the audience is always asking us all the time, we want more investing advice, investing, investing, investing. So we said, all right, leave us alone. We're going to do it. And so here it is. Here are the details. This is an online event, two nights.

So it's a virtual event. You can watch it in your pajamas at home or however you want to watch it. May 21, 22. May 21 and May 22. Our very own good buddy and colleague George Camel will be joining this event as well. They're going to start with the basics and go deep all the way up into mutual funds, real estate, and more. So tickets start at $199 for the new Dave Ramsey's Investing Essentials event, ramsaysolutions.com slash events. That's where you go to get your tickets, ramsaysolutions.com slash events. So that's going to be fun. Don't miss that. All right, now we go to Kansas City where Sheila is joining us. Sheila, how can we help? Hi, thanks for having me. I'm excited to talk to you too, John. I loved your last book and Ken, I need some career advice. All right, go. All right. So my question is really about kind of where I go from here. I recently left a

relatively lucrative career in order to have more time with the kids. I was traveling a lot. But we are on baby step six and trying to pay off the house. Awesome. So interested in getting your advice on if I go and find another job like it or I have my real estate license and if I should go back into real estate. I did that a couple years ago, and it also turned out pretty well. So what was the – you sound like a rock star, first of all. I'm very excited to talk to you. I feel like it might, might give me some, some, some, some,

some type of glow here because you're a rock star. So you were successful in real estate and then you were successful in whatever this lucrative career was that you left. What was that? Um, I was a senior director for a, uh, large makeup company. Um, and so I sold wholesale really, but I was a leader of the real team. Got you. So you're a sales makeup company. Okay. And so I sold wholesale, really, but I was the leader of the sale team. Got you. So you're a sales rock star. Yes. Yes, I love that.

How much were you making? I was making $185 plus a 30% bonus. And how much are you loving this season of stepping away from all that hustle and being at home? It's a little anxiety-producing, not going to lie. I love my kids, but, you know, first week was spring break, and that's a lot. Okay.

So this is why I'm asking here, because you were super successful, you step away, and we're on baby step six, and now you're like, okay, should I go back to work? And it feels like you're looking for permission to say, I don't think I want to be a stay-at-home mom. Am I right or wrong? You are right. Okay.

So, A, you don't need our permission. Right, granted. And, John, you're chomping it. I did it either way without your permission, so I definitely jumped in headfirst. Here's my one, like, I always want to be careful when i'm talking to women making this shift because i know that there's the the western guilt factory that no matter what decision you make it's the wrong one

that's right correct but is there any chance way deep down that you use time with kids as an excuse to get off the train of a job you weren't really into anymore? I think, well, so my youngest is going to kindergarten, so it was definitely like I have this time, I can use it or lose it, and everybody says you don't get these years back. But I don't care what everybody says. What about you? I mean, there are things I loved about my job there are things i did not like about my job so i don't think this particular one is right fit for me it's also like

75 travel up to 75 travel which with little kids is just not perfect so what i'm getting at is if you wanted to quit your other job because it's 75 travel quit that job all day long i did right but he's saying but don't put it on your kids to carry because then you, you get this weird guilt thing that is unnecessary. And so if that's not the right job for you, cool. Spend a few months at home, regroup and recalibrate and spend those, those precious days. You don't get back, et cetera. And then find out, okay, here's what I really want to do. Cause as somebody who's good at sales, you can literally work anywhere, anywhere. Yeah. And, and so I, I thought so. So

just looking around at jobs, you know, a lot of the jobs I've had to either have to live in San Francisco or New York, but I, I mean, I did the zoom thing for two years and I, I love the kind of in-person interaction. So that kind of leads itself to real estate, but I also did real estate for five years and that didn't really, I don't know, it wasn't it for me either. So I'm not quite sure where to go from there. All right. So now we can focus on that part, right? But I wanted to get to this other stuff first because I think that – I think you could be – I think you need a little bit more time at home. I agree with John.

Also to know, was it just spring break and that was a little bit too much for me and reentry? Like let's just get into a – Yeah, you also jumped into – yeah, you swan dive into a into the frying pan yeah like i'd like to see you not just take some time to be with the kids but also to go well wait a second do i like this new role and and let's stop making it about well baby step six and i could go earn more money i just want you to sit for a season because you can, correct? Yes, I can. But also, we've saved up a fair amount. We just recently became

Net Worth Millionaires, which is very exciting. I would like to keep it that way. And watching the account tick down, it's very stressful for me. Okay. I get that. But again, we're not talking for six months necessarily. We're just saying, I want you to just sit because here's the deal. We got to figure out what's next for you anyway. And I'm not so sure. That's why you called. You're like, Ken, what's that thing for me? So I think it's going to be easy for you.

You ready? You ready to answer? I want you to answer right off the top of your head. You got it? Yes. All right. You've been very successful. You've been very successful in multiple things.

What's the thing that you think about you go i think i can do this and if we didn't have to think about for just a moment san francisco new york wherever you just said i'd like to take a shot at this the professional sheila still wonders could i win at this what's that thing that thing that's answering right now? It's at the top of your head. What is it? Yeah, I'd love to sell outdoor gear and work with design and creating something that makes people's lives better and helps the earth. Now, see, that's very personal to you. Yes.

That's lifestyle value stuff, yes? Yes. Then that's what I would be angling towards. It's Patagonia. That's REI. Can you go get started at a local store and work your way through there as the seasons change in your life? I could,

but again, it's hard to go from, you know, making $70 an hour to $17 an hour. Yeah, but you quit that job. And it was cool while you had it, and it served a role to get you to millionaire status, and now it's time to do something that's got more time with your family, that's not going to take as much brain power, and you can still work towards your mission, right?

And I appreciate that, John. Yes, well. But Sheila, that's not who she is. Sheila, I'd rather you take some time and hold out, and let's go look for a role with those kind of companies. And I'd be starting in your area. Don't just assume that some great company's not there in Kansas City. I'd start there and work my way out. And I'd also be really interested in getting into like net zero building and developing. But again, totally two totally different career paths.

Doesn't matter. Hold on a second. See, that's what I love. Those are two options that you need to explore in the days ahead. Because as long as you are selling, right? Or let me use the word, let me take you out of a sales role for a moment and go, what if you're just in a role where you're involved in promoting? Because that's what you're gifted at. You're a gifted communicator. You're a gifted cheerleader. You're a person of conviction.

Is that true? Yes, often. All right, then. There's a lot of roles that involve that talent. You got a great resume, too, like a really nice resume. Am I correct? Yeah, I do. I just fix it up, and I think it's bigger than me at the moment,

which is a unique issue to have. Yeah, but it's just this is something new. So here's the deal. Take all that sales experience, all that confidence that you have. Let's channel it. Let's start looking at those two specific ideas that you just gave us, and let's see what's out there and go for it. And be okay in the season where maybe the bank account's whittling down

just a little bit because I'm not worried about you replacing it at all. You've got to be you. You've got to chase this thing on your heart, and you're going to be great at it, Mama. I promise. This is The Ramsey Show. Welcome back to The Ramsey Show. Welcome back to The Ramsey Show. So excited that you are with us.

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Let's go to Marissa now in Grand Rapids, Michigan. Marissa, how can we help? Hi, Ken. Hi, John. Thank you so much for taking my call. Sure. My husband and I are currently in Baby Step 2. We have two investment properties and a primary home. My husband plans to use the rental property investments as part of his retirement plan. The Baby Step 2 part is we have a $25,000 personal loan. My question is if we should sell one or both of the rental properties to pay off the personal loan, our mortgage on our primary home, and invest the rest into retirement accounts

or keep the investment properties as passive income and continue paying down the debt. So how much do you owe on your primary home? On the primary home, we owe $197,000. Okay. So if I heard you correct, I just want to do a quick review here. You have a $25,000 personal loan and you owe $197,000 on your primary home. And outside of those two investment homes, that's all the debt that you have? Correct. All right. And so the idea is you would sell one of these investment homes? Or both. One or both. Wait, wait, wait, wait, wait. Is your husband up to this plan or

did you just make this call and thought, well, I'll see what Ken and John think and I'll tell him later? Well played. Well played. You've talked about it, but you led with my husband's planning on these homes being a part of his retirement. So when you threw that in there, I was like, does he know? And how open to this, when you discussed it, how open to this when you discussed it how open to this is he he wants numbers he wants a plan later or written out so that he can see it all right let's do it and we've met with yeah yeah okay so let's walk through what i need all right let's walk through that all right so let's go uh let me write this down investment home number one how much do you owe on it first and what do you believe it's worth? Okay.

We owe $46,000 on it, and it's worth about $240,000. Okay. And then let's do the same thing for investment property two. What do you owe on it? We owe $76,000 on it, and it's worth about $150,000. Okay. All right. So there's your numbers.

Okay. So we've got $197,000 on the house. We've got the $25,000. What do you guys make income-wise, joint income or single? Joint income. Without the rent income, we make $150,000. Okay. So how long, if you guys buckled down, would it take you to pay off the $25,000 personal loan? I would say probably six or seven months. That sounds about right.

So the reason I asked that question is I would never sell these homes to knock out the $25,000. Okay. And because of what these houses are worth, I think it's up in the air. I mean, I don't know what John thinks. My gut says where you guys are on this process, you can knock out the $25,000, and now you're, by our definition, debt-free in Baby Step 2, okay? And then you guys could get pretty quickly into Baby Step 3, the three to six months emergency fund, correct?

You guys could knock that out pretty quick? Yeah, a month or two probably. That's what I thought. So I kind of want to see you guys treat these rental properties as part of the Baby Steps is where my head goes. I want to get that emergency fund in there, but I mean, how quickly we're going to knock out the 46K on the house that's worth 240 and then the 76K. I mean, I'd kind of go after that. I'd get aggressive on it. I don't know that I would sell either one of these. John, you disagree with that? No. I mean, I like,

I think selling one of these rental properties to clear everything puts you right back in the same boat two years from now. Because you haven't learned, you haven't learned the, you and your husband have to learn to work together and stick to a plan over a period of time. Okay.

That's what I would love to see. I'd love to see y'all commit to one another and say, we can do this. I'm in if you're in and we'll do this. We'll meet every week. We'll meet every month. It's going to be annoying. We're going to fight. It's going to be frustrated. And we're going to figure out new ways to talk to each other. And we're going to get this thing done. Okay. That's the plan. Are you guys on a budget? Yes, we are. Yep. I mean, I'm trying to do some math here. I'm thinking three years from now, you guys are out of debt on these homes. Am I right?

On all three? Mm-hmm. No, no, no, no, no. No, not all three. On the two rental homes. Oh, okay. Yeah, that could be doable. Because you told me it would be six to seven months to knock out the $25,000 personal loan,

and then we're going to be able to knock out, you said, a couple more months for the three to six months expenses. Hold on. What do you do for a living? I'm a legal assistant. Okay. What's he do? He's a lab manager. Okay.

I would love to see you all come together and say 45 days. This 25,000 is gone. What has to happen? Hmm. Like 45 days. Yeah. Wow. Like we're going to,

I'm going to get up at five o'clock and I'm going to drive Uber until it's time for me to go to work. And then I'm going to drive into the office and then you're going to get off and you're going to go deliver uber eats while he takes care of the kids or whatever the plan y'all come up with but i want that 25 to kind of sting a little bit because it's just y'all y'all y'all make too much money and y'all are playing rich and at the same time you're you're drowning right yep because at parties y'all talk about y'all like yeah we got rental properties here and it's like cool and it's like yeah we had to take out a 25 000 loan just to pay bills

you see what i'm saying that sounds about right and here's what here's what you are you're america we like everybody looks all good but man it's like hey can i borrow can i borrow 25 000 so i could take my kid to the hospital because i don't have any money. But I got rental income. I got cash flow. What are you making on each house, the rental house? On the rental property, our rent income is $1,850, and on the second one, it's $1,400. That's net? And all three of our properties are on a 15-year mortgage.

Okay, good. But that's net? Those numbers are after you're – that's what you're netting over and above your mortgage? No, no, no, mortgage. Okay, good. But that's net, those numbers are after your, that's what you're netting over and above your mortgage? No, no, no, no. I'm sorry. So our net on the first one is $1,000 and our net on the second one is $500. Yeah. So just to let you know why you need to pay these off, because that's not anything to get excited about. No, $500, $500 a month? Are you kidding me? Work Saturdays at Starbucksbucks you're actually losing money on the house after you guys fix it up and do gentle repairs yep we do so so sell that one good grief i'm wrong i totally retract retract what i was saying

not because you can't get paid off because it's just not worth it's a bad investment okay it makes you six thousand dollars a year that's not that's that's a bad investment. Okay. It makes you $6,000 a year. That's a partial roof replacement. Yeah, I could go either way. I don't disagree with John. John makes the right point, though. Selling these is the quick fix to a problem that you don't actually learn from unless you have the pain, and he's right about that.

But I would be okay with selling both, to be honest with you. But if you don't make any life change, you're going to be right back in the same spot. And that's where John's 100% right there. Versus having two properties that now are great assets, but you're still not making enough. You're making $500 a month. Even after you pay the mortgage off on those, those aren't really worth it. Now that I think about it. No, no. You know what? Yeah.500 a month. Even after you pay the mortgage off on those, those aren't really worth it. Now that I think about it. No, no.

You know what? Yeah. Wait a second. You're just not clearing enough on those homes. Certainly the one where you're making $500. Is that the one that's worth $150 and you owe $76? Yes. Yep.

That's all you can get for it is $1,500 a month? Yes. It's all you can get for it is $1,500 a month? Yes. It's a small home. It's like 100 square feet. Oh, 100% I would sell that. Sell it tomorrow. I would sell that, and that's going to take care of the $25,000, obviously. And that's also going to get you your emergency fund and then some, right?

Okay. Yes, it will. Yep. And the next time you buy a rental property, pay cash for it and make sure it's a worthy investment. Yeah. But I would add that. I would add the 46 to the snowball on that other home. Oh, heck yeah. Knock that out. You guys need to get rid of that. And now you've got something there, but no more of this nonsense. This idea of, oh, I'm going to buy a small house and we're going to clear $500 a month. Woo-hoo! It's the American dream. No, it's not. It's a nightmare. And I don't know why we're doing it. So yeah, we talked ourselves into that one. I would clear that. Good stuff. Hey, thank you for the call. All right, don't move because we're not going to move. Quick commercial,

we'll be right back. This is The Ramsey Show. Welcome back to The Ramsey Show. I'm Ken Coleman. Dr. John Deloney joins me. The phone number for you to join us is 888-825-5225. 888-825-5225. Let's go to Richmond, Indiana. And Sabrina is there.

Sabrina, how can we help? Hey, Ken and John. So excited to talk to you guys. Well, we're excited to talk to you. My question. Thank you. My question today is when should we move? We're just looking for extra wisdom on our current plan,

which is pay off debt, build that emergency fund, and then sell the house we're in now to move closer to the Indy route where we actually work. So right now we're about an hour away from our jobs, friends, church, all the above. And we're looking at about three or four options of when we should move. So I wondered if you guys had any opinions on that. Yeah, give us the options. So right now we can either stick with the plan, you know, move after the emergency fund or after that stay, continue to pay off the

house because by then we'd only have like $82,000 left, then move and possibly do some renovation projects in between there or just stay until we pay off this house and wait until we can pay for the next one in cash. Do you think it matters either way? Well, I want to know more about where we're going. I think that'll help us decide what we need to be doing where we are. So what would you be looking to purchase in Indianapolis where everybody is, jobs, everything else? What kind of house are we talking about? Compare that to where you are now, because we want to be able to look at, you know, we're paying off debt and selling the house, moving to Indianapolis. What are the additional costs? How does that

change our budget? That's the kind of thing we need to be looking at. So walk us through the Indianapolis options. So right now, so we're actually about to graduate nursing school. So we have a job signed up for a hospital in that direction. So we just anticipated like renting a year when we move over there. Great. Because houses over there are about like in the 300k range. What's your house now? What's your house worth right now? Oh, it's probably just about $130,000. Okay. We got it for $100,000. Okay, good. And what's your mortgage right now? The mortgage we're sitting, we owe like $93,000 and it's only $486,000 a month. So we're saving a lot by staying where we're at. Yeah, you are. However, when you get the nursing jobs,

will it still be about an hour commute? Yes. And what will be the increase in income, if at all? I'm guessing there'll be an increase in income with both of you getting into nursing. Oh yeah, we're going to go up to about, I think it's $150 a year combined. What are you making combined now? Oh, like $60. So here's how this works. So if John and I are your issues, we're going to answer it that way. Okay. And so what I would be looking at is, all right, my income is going to more than double, but housing is also going to be a lot more expensive. But I'm not going to buy right away because that's super smart because I'm moving to a

new area, new careers, and renting is really smart. Stacey and I rented for two years when we moved here 10 years ago. We rented for two years. We wanted to make sure where would it be good for the kids? What's the best location compared to the office here at Ramsey? A lot of things. And we just wanted to kind of just breathe a little bit and deal with the transition. So in that year, and it may be more than that, but let's just play with your timeline. In a year of renting, what is it going to cost us to rent? Do you have a general idea of what Indianapolis rent is going to look like, where you're going to be living, all your options there? From what we've seen, around $1,800 a month.

All right, so immediately we go to $1,400, or let's call it $1,300 in change increase in living expenses, correct? Correct. So we write that down. We go, okay, a move to India is going to cost us $1,300 plus in the living item, in our home expense item, right? So we look at that and we go, okay, but how much more are we going to clear in our paychecks? And I would run those numbers too. I would talk with a tax specialist and try to get an idea. You can do some research and go, what's my take-home going to be? We're going to figure it out. And we start to look at how our take-home increases, and we look at that increase, and we look at the housing increase.

And that's going to help me make the decision on Indy. And I think it's going to make the decision a lot easier. I'm not saying you got to move to Indy now, but I definitely think I would move sooner rather than later, just because I know what it's like to drive that long every day, two hours round trip, nurses, brand new, working hard, church is there, friends are there, and we're all the way out here. And I think it's going to get old quick, but I want to bring in John on that dude i'd sell my house in the next 30 days and go rent and i'd go rent and we would build a fun life together and begin working on saving with our new reality that's what i would do yeah i agree okay you you are underestimating my guess is you're

underestimating like we all do when you both are in full-time gigs, cranking it out, no school, everybody's running and gunning, full-time nursing job, somebody gets a promotion, somebody gets put over other nurses, somebody's doing ER work, whatever the work is. Having a home base that you're somewhat close to, there's actually some studies on the further away your commute is, it takes time off your life. That's right. That's actually some studies on the further away your commute is, it takes time off your life. That's right. That's absolutely right. So the closer y'all can be to where you work,

to where you have church, to where you got friends, where you got family you can drop in and just kerplop on somebody's couch and they know you, dude, I would sell you that house today. I agree. How much will you make on it? Conservatively. I don't think we'd make very much if maybe $30,000. Okay, but guess what? That's immediately a 10% down payment on a $300,000 house. Ta-da!

10%. That's true. Put it in a high-yield savings account. That's right. And then stack it and double it and get to 20%. Okay. Should I be worried about renovation projects on this house then or just carry on and leave no if you can sell it get a real real estate pro in there that's a good point um let them tell you what you think they think you should price it at somebody may want to come in and buy it at 125

and they want to take on the the project yeah get a good real estate pro to tell you should you finish it don't let them talk you into going into debt and all that kind of garbage because you can price it based on it as is. But look at every angle, hold them to that. Some real estate people can go, oh, you got to finish all this. Get two or three opinions maybe. And I think that's wise. But yeah, I'm with John. I would absolutely sell. I just wanted to walk you through the numbers so that you go, oh, this is not a crazy idea to go rent in Indianapolis. And it's also, and I'm talking to Ken here, but I want you to listen to this, Sabrina. People think because we're the Ramsey Show and because it's Dave Ramsey and family and Dave Ramsey and company,

and we're all in this gang, that the most important metric in our lives is net worth. The most important metric in our life is house appreciation. It's not. You have to also take into consideration whether you're living a good whole life, whether you have community, whether you got a place to go to church, whether you actually see your spouse, you aren't just flying by each other in the night because there's a four-hour commute between the two of you, each of you going one hour there and one hour back. And so take all this into consideration, and the baby steps there to guide this life that you want to live and to do it debt-free.

If you all move to a more expensive place, you might have to rent longer. That's cool. You've got friends, family, community. Awesome. But it's a full picture here. It's not just this $1 amount that drives everything. That's right. Sabrina, when you just picture doing what John and I told you to do,

what does that seem like to you? And you get to look at that as your new alternative. I mean, it's a little off the shoulders a little bit not to have to drive so much. We've both been to nursing school at the same time. We've hardly seen each other. So to be close to friends would be really awesome. I think the only thing that goes off in my mind is the debt still that we have to pay off. How much you got?

Increasing that rent amount is scary. How much debt? $142,000-ish. Oh, that's a lot. Yeah, take that money that you make on the house and dump it into that debt and knock it down to $110,000. Yeah. Yeah, I have to revise my statement. I did not catch that, that it down to $110,000. Yeah. Yeah. I have to revise my statement.

I did not catch that, that you owed $142,000. So the $30,000 you make on the house, that immediately goes to the debt snowball. Live in a one-bedroom apartment. It's going to not be the greatest thing, but you're all going to go get it done. You guys are crushing it income-wise. You guys can do this. Your life is going to be better in Indy paying off $142,000 than it is going to be an hour away paying

off $142. That's fair. That's exactly right. It's quality of life. It sucks paying off debt, so I would want everything else to not be so sucky. Right, John? Tell your friends, hey, we can't go out, but we're going to go for a walk in the park or whatever. It's going to be great. You guys can come over to our house and have microwave popcorn. Pickleball. Dude, don't get me started. I know. That shouldn't cost you much at all. Ken is becoming a pickleball legend. It's true. I've got to get you out on the courts with me. I think the people want to see you just smash

a pickleball right in my face. They do not want to see that. I think they do. I know James does. Good hour. Thank you, Dr. John, for being with me. Thank you, James Childs and the fearless band of merry men behind the glass. This is the Ramsey Show. We'll see you next time.