The Ramsey Show - App - Just Because You Want Something Doesn’t Mean You Should Get It! (Hour 2)

Episode Date: February 12, 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 amazing relationships. I am your host, Jade Warshaw, joined by your other host, Dr. John Deloney. We're going to be taking your calls for the next couple of hours. So give us a call. The number is 888-825-5225. We'd be happy to chop it up with you. One of my favorite things about this show is it's caller driven. So people are calling in all the time, John,

telling us really their deepest and darkest secrets. Because what I always find so interesting is people have a very hard time talking about money with their family, their friends, even their spouses, but they'll call into this show and tell like two knuckleheads like us, their deepest, darkest money secrets, the mistakes that they've made with money. And we're here for it. Probably they feel comfortable talking about that, John, because we've made all the mistakes that you could possibly make with money. Like we've done it too. And so it's like, you're among friends who have done stupid things and had to pay the cost for it with their money. And around here, we call that stupid tax. Like

if you've ever done something that's just like, oh, what was I thinking? And now you have to pay the piper, so to speak. We call that stupid tax. And we want to hear that from you. Matter of fact, if you have some stupid tax that you would like to share with us, you can always email us. The email is ask at ramseysolutions.com and you can put stupid tax in the subject. But of course we have to share some of ours, right, John?

What's your favorite one? I have, the list is extensive. And so there's many to choose from. I know, off the air, I heard her on the phone with her husband and they were just like rattling this one and this one time, this one time. It was awesome.

Probably the one that there's two that stands out. Probably the one is my husband. When I met him, he had a Jeep. What's the what's not Liberty, not Wrangler? Cherokee. Cherokee. Thank you. And he had finally paid it off and like made the final payment. And he was like, yes, I finally paid off my Jeep. And like within weeks,

we were at the car dealership to get a brand new Hummer H3 because we were like, yes, now we have a down payment to get loans again. And I think about that to this day of like, what were we thinking? We could have entered marriage and had a paid for car. But instead we got an H3 Hummer and paid $435 a month for it. It wasn't even a cool car. Hey dude, I got out of college. I remember I had $17,500 in student loans,

which back then was a million dollars. Now would be a dream, right? And I drove an 88 Tercel Easy Hatchback. My friends called it the roller skate. And I looked like Fred Flintstone. It was so little. My body was so folded up in that thing. And the week I graduated, I went to a dealership and got the biggest, stupidest Texas compensation truck I could find. And it cost more than my student loan. So with one stroke of the pen, I doubled my debt load.

And I thought I won. I was like, how do you like them apples, America? I got a truck that I can't afford. Oh, man. And it was the stupidest. I just, oh, it's so embarrassing. How long did it take before you were like, I can't, or like, I gotta pay this off? I had it sold within 18 months. I couldn't oh, it's so embarrassing. How long did it take before you were like, I can't,

or like, I gotta pay this off? I had it sold within 18 months. I couldn't breathe. It was so expensive. It was my buddy's dad, Randy Fox. He passed away a few years ago.

Randy was an accountant and I remember I drove it over to show him how cool it was and he just looked at me and goes, this is stupid. Like, and he's a math guy

and just the way he looked at it, I was like, oh no, what have I done? Oh, stupid tax. I done? Stupid tax. I love it. Okay. In that same realm, I hate to say this, John, but I think we've all done the rooms to go,

you know, no payments until, you know, the year 2030 or whatever. And you're like, all right. And in your mind, in that moment, you're like, that year will never come. Because it's like 15 years later, like you're like this year can never come. That's a problem for future Jade. We get it right now. We get it right now. And I think we bought the ugliest furniture that you could buy. It was all dark brown and it all matched. You know what I mean? It's like you get the bed frame and the foot frame and the matching side tables and the and the you know the dresser and it all looks exactly the same like no character and uh i don't know what we paid for it but i know that

they had said you know no payments until you know you're old and gray we won and somehow those payments came due and i was like oh crap i didn't have that stupid text i had probably another segment called stupid marriage idiot uh it was after my second book went number one and we're having dinner at the house and my wife said this is last year she's like hey uh we've had a good couple of years and i was like yep could we get rid of the the headboard that you bought off craigslist and spray painted 15 years ago? And I was like, it works great. And she's like, what if we bought real furniture? So we got our first bed. That is so funny, but you did it the right way.

Hey, you know what? We waited 20 years. I'm such a catch, ladies. I'm a catch. Listen, that's better than the stupid tax. If you have stupid tax stories, be sure to let us know. Ask at RamseySolutions.com. Put stupid tax in the subject. We want to hear about those and talk about them on the show. Let's go to Trevor. He's in Savannah, Georgia. Trevor, you're on the line. Hello. Excited to talk to you all. You too. What's going on? So I got a question. I'll just lay out some facts for you that way you kind of know on a basis of where i come from and uh then i'll shoot the question so i am 25 i have no debt right now um i bought all my toys with cash paid for all them i'm not married um i

make 80 000 a year uh about i-based, so somewhere around there. Anyway, my next purchase would be a house. I know that Dave always says marry the house, not the interest rate. So my question is, I know that y'all say 20% down. Would you be okay or would it be okay to get something closer to like maybe 10 or 12% down? That way I can go ahead and start paying a mortgage on the house. Or should I wait, you know, two or three more years or so and save up the whole 20% and then buy 5N? If you can afford it and it's less than 25% or less of your take-home pay on a 15-year fixed rate, I'd probably go ahead and do it. Okay. I mean, the range is between 5% and 20%. If you can get to 20%, that's great. I don't know that I would delay it by three years

to get there. Yeah, and it may not take that long. I mean, I'm pretty good at saving. I do have a thousand dollar like emergency fee and then a three to six month emergency fund set up. So, you know, if I bought in the air condition went out or whatever, I'm covered there. Okay, cool. So what are you looking at? That's a pretty straightforward. So where I live, I live right around Savannah, somewhere around the 300,000 range. Okay.

And what percentage of your take-home is that going to end up being? It'd probably be about 1,500 a month or so. I make about 45, so that would be right around maybe 2,700, something like that, or 27%, maybe, 30%, something like that. I'd want to listen.

I'm not trying to split hairs, but try to get it to 25 if you can. Yeah. You know, 26, 27, I'm not too mad at, but if you know you're upwards of 30, I would hold back because unless you see your income going up to cover that 5% in the foreseeable future, listen, that 5%, you feel it, and you're going to feel it in other areas of your budget, whether it be your spending budget, your fund money, it's going to shake out in some somewhere down the line, especially because you're in sales and you're on commission. I really want to make sure you meet those parameters.

This is The Ramsey show I'm your host Jade Warshaw your other host is Dr. John Deloney we are taking your calls all hour long. Honestly, for the next couple hours, we'll talk about your life, your money, your relationships, whatever it is, you can give us a call. The number is 888-825-5225. We got Tiffany in Chattown. What's going on, Tiffany,

from Chattanooga? Chattanooga, yeah. We do call it Chattown, though. I know, I know. I'm glad I got a reaction from you. I've never heard that in my life. What, John? Everyone in this room is now dumber for, I'm just kidding.

Go ahead. Chattown? Chattown. Chattown. How's it going, guys? We're doing good. All right. So my question is, now, I've been married.

I'm 42. I've been married for 23 years. Nice. My husband and I, yeah, we got married really young. My best friend in the whole entire world. So if he is listening, I am not dogging you. Oh, gosh. Oh, this is going to be awesome.

The caveat. What's going on? My question is, so we are preparing my youngest, our youngest, to go on and move out. She's about to graduate. She's got a plan. We're working on that. So this is literally our first time being by ourselves. We got married with a kid, so we have never been by ourselves. So I'm trying to figure out,

I would like to be financially free so we can have more time and all that, but he is not on the same page with me on what to do with our money. So I'm trying to figure out how to convince him to start your guys' program. Ah, interesting. Okay, so just making sure, this question is not really about the child going off to school this is about you wanting to live your best life once your kids are out of the house is that right yes okay yes so give me a picture of what life looks like now financially i mean are you guys combining the money are you on a budget tell me more okay so literally just started listening to you guys. I binge more and more at work. Don't tell anybody.

Tell everybody. So I just started listening. Don't tell my boss. But I just started listening to you guys. And so we really haven't started any of the program whatsoever. Okay. My husband, he owns his own business. So that kind of money is separated.

But I have access. Like we have access to each of our accounts, both of us, that his money for his business is separated. What about the money that he pays himself in payroll? Does that go into a combined account or does that stay on his side? No, no, it just stays on his side. But I can like I can pull money. I mean, we don't we don't separate like that it's just that kind of money it's just in a different account okay so I would say that you guys probably it sounds like the way it is you probably could combine finances for real for real and it'd be pretty painless because yeah by definition I don't really feel like you're combined right now even though it seems like there's kind of a a good amount of openness i'd like for it to be like there's no veil you know what i'm saying like it's just one account um or one or two accounts that you guys are both on it's not your account over here and his account over there but you can kind of creep over there if you want

to so right that that would probably be the first step is i'd sit down tonight and say, you know, Bob, I love you. And I think that I'd love to start really combining our money. I know that we have access into each other's accounts, but I would love if we just had it in one place and we can see it together. And while I'm on this subject, I listened to some crazy folks on the radio and they said that we should get a budget and I'd love to start budgeting with you and kind of just let them know what's on your heart and let them know that you're really excited about this and more than that tell them why you're excited about it and I think that's

going to be a good introduction into the conversation because if somebody comes to me John and says I want you to be a bigger part of my life and financially I'd love if we could share money together and I can share mine with you and you can share yours with me financially I'd love if we could share money together and I can share mine with you and you can share yours with me and I'd love if we could sit down and like plan our month together and like all the fun things that we want to do with money and what we want to accomplish for me that's a love language like that's a compliment now I don't know your husband I called him Bob what's his name his name is Nick okay I don't know you know what what gets nick's wheels turning but you know put it in a way that is going to be appealing to him as well so i i'm gonna overly gender this and so

uh everybody be nice to me in the in the internets on the internets um i hear often a wife women saying, I would love to be a part of your life, coming at it from the joy angle. How can we do more of this thing called marriage together? I often hear men respond in that way to, I've already got this figured out, I'm fine. They want to be lone wolves.

That's right. And so where I've seen women be successful, wives be successful, Tiffany, is saying, hey, our youngest is leaving the house. I want to go spend a half day together and dream about what could be. And when he says, well, you know, I've been really busy,

the next answer is, because I'm scared to death to continue living like we are right now and that has a way of stopping people in their tracks because no man no husband worth one ounce of salt wants his wife scared that's a good point in her own home right and so there's something about saying I I feel out of control I feel like we don't know where we're going I feel like we're going to wake up in 10 years and we're going to be in this exact spot. And I don't want that. Will you join me? Yeah, that's kind of, cause I like laid out everything already. I have a whiteboard. I

have all of our amounts out of what we owe and everything like that. And then just the other day, like this was when it hit me that he was just not on the same page he said i want to sell the trailer and when i sell the trailer i want to put it into some stock oh i was like i thought we were paying bills so let me ask you well i yeah foundationally who changed did you change or have you always like did you guys start out on a a path together that is like we um believe in stocks and we believe in debt and we believe in or have you always kind of been like i don't know how i feel about this and just not talked about it like i do want to know a little bit more of that because there is something in a relationship where it's like wait a minute i thought we were doing this together and then one person truly like up and changes and doesn't want to be.

Yeah, so I don't think either one of us changed. I think at this point, like I said, we got married really young and we had a financial struggle our whole entire life. This is the first time that I felt, though, yes, I have debt and I know you will disagree, but this is the first time I felt like we could actually make a step forward in our financial freedom where before we were always just drowning. Just trying to stay. Yeah. Yeah. Just trying to survive.

So Tiffany, here's what you've had. Yeah. You've had a husband that's been ashamed to look his wife in the eyes for most of your marriage because he's a small business owner that hasn't been able to create the world that he wanted to create and he knew one play

he had one tool in his tool kit and that was hit the gas even harder and don't take your foot off and y'all have scratched and clawed and he's got there and now he's going to try to catch it up by putting it all on red seven, which is playing stocks.

Fair? Yes. Yeah. And this is when you sit down and say, I'm scared to death. Right. So then let's look at, you said you have it all whiteboarded out.

What tell me about what's on the whiteboard. I want to know the numbers real quick. I want to know. Give me in a nutshell how much debt you have to pay off. You don't have to list it all out because we don't have a ton of time. But I want to know what you guys earn. OK, so we bring in about one hundred thousand. $70,000 is mine, and then the rest is his. Being a small business owner, it's different, but that's about it. And then we owe about $38,000 in debt minus the mortgage, so it does not include the mortgage. And when you guys sell this trailer, what do you think it'll bring realistically?

Or is that $38,000 the trailer? No, no, no, no. No, it's not the mortgage. And when you guys sell this trailer, what do you think it'll bring realistically? Or is that 38K the trailer? No, no, no, no. No, it's not the trailer. It's, we own the trailer. The trailer probably bring in, I think maybe 5,000. Okay.

So basically what you're trying to get him to see is that that money could be better spent. And you guys really aren't far away from freedom. You know, you pay off, you sell that trailer, you got 30, you know, $33, 000 to pay off with 100 000 income you can pay that off lickety split save yourselves up three to six months of expenses and you truly are home free it's not like you guys have this seven-year path in front of you this can get cleaned up in a year or less especially if he goes and makes some more money exactly so have a have a sit down talk with him talk about how you feel change this thing this is the Ramsey

show all right you're listening to the Ramsey show John Deloney to right. I have an article on my desk that is honestly pretty crazy. It was an email before it was sitting here on the desk. And I looked at the email earlier today and it said, Garbage deals. Dealership puts customers in cars with $3,000 a month car payments. That's wiggity, wiggity,iggity wiggity whack like that's crazy that's nuts okay it says a new york fed survey published earlier this week indicated that in the fourth quarter of 2023 auto loan delinquencies reached levels not seen since right after the

great recession more than a decade ago so we're hitting historical numbers here says delinquency transaction rates have pushed past pre-pandemic levels and we remember this though we remember during during the pandemic people were buying used cars yes on like 72 month notes that like i have a buddy and if you ask him he's one of my oldest friends like what do you do for a living he says i make bad car loans and even he said dude these loans i are like people are asking for are absolute madness i am just i i'm i'm really shocked and they're coming home to roost now but then it's getting worse it's getting worse man wow it says an edmund report from last year showed the percentage of drivers with plus $1,000 monthly payments jumped to an all-time high. The reason is that the average amount financed for a new vehicle is around $40,000. Folks are putting $40,000 cars.

That's the average. Hold on. 17% of Americans. Yeah. That's crazy. Have a $1, dollar monthly car payment yeah when listen john look john a while back we that's insane and that's for one car a thousand dollars that's just one car most most households are two car households okay that's ah that is groceries it's a lot and eating out or a car that at the most

at the most you drive for what two hours maybe and it sits in your driveway or your garage or your parking lot where you work the park the garage. Folks can't even see it because it's dark in there. And that's a thousand dollars. I should have read this more closely before I looked at this. Yeah, it's nuts. So he says this episode is sponsored by Preparation H because I got the hemorrhoids, James. A thousand dollars. All right.

It gets worse. It goes down. Listen, he says this leads us to two posts that were made by a certain Instagram handle. It says they shared what appeared to be an auto dealer sharing several images online of new customers financing vehicles with payments that are as much as monthly mortgage payments. So in other words, these people are in this Instagram post and they're excited about the fact like, you know, God came through when I got me my deal, you know, and it's always that too. Like, man, God heard my prayer. Yeah. It was a blessing. And now I have a $2,550 monthly payment. It says one person purchased a 2023. It's on the screen. One person purchased a 2023 Tahoe with a $2,550 a month payment on an 84 month term.

That's almost a decade. That's a depreciating asset. It will be. Oh my gosh. Another person. That was just one guy. Another person bought a 2023 Sierra. Oh my gosh.

$2,500 Denali. With a $3, dollar a month payment and he was locked in to a 96 month look there's the prayer hands why do they gotta put listen listen and look me in my eye god didn't have nothing to do with that you did that that is not a blessing hey can we just say tahoe i would love to have a Tahoe. A brand new Sierra Denali? I'd love that car. And I can't imagine signing up for a 96-month term. And here's the thing, John.

A depreciating asset. I can't even get into the people that would sign for this. Like the guys in the photos or whoever their their level of financial literacy is clearly very very low um and they need shows like the ramsey show yeah but whoever sold them this i have questions about your integrity and who you are as a person. And you need King Coleman because you are not doing work that matters. You're doing work that causes pain. I mean, this is horrible. Just because you can get something doesn't mean you should get it. That's really the lesson here. Just because you can get it doesn't mean it's good, doesn't mean it was a blessing. It makes me think of that verse,

and all you're getting, get understanding and get wisdom. This is not wise. And just going out to get things because you can get it, because you can purchase. And on the other side, just making the sale because you can make it and because they're willing to sign. Each of those, there's responsibility

on both sides of that scale. The consumer has a responsibility and the person selling on the other end has a responsibility to society to do better. To society. It's a greater good. $3,000 a month. Let's do some math.

So the guy who's doing $3,000 a month on a 96- term uh that let's do a little bit of uh calculation here and see what that equivalates to over time if he invested that money i'm sick i'm sick it's four hundred thousand dollars if he invested that money over the same term instead of paying $400,000. So he's going to be sitting on a truck that's worth about 20 to 25% of what he bought it for in 96 months versus the other side of that. Yeah.

If for eight years, and here's what I did for people checking my math. I did 0% start. Like he has no money to start. I did that. He's investing it for eight years at an 8% return. 8% is fine. Whatever. It's not that great.

Compounding monthly. So he's paying $3,000 in a month. And yeah, $400,000 in that range. That's what he's giving up to be able to post on Instagram and say, look at the car I got. I got my Sierra 2500 Denali. That's crazy. Congratulations, man. You just tied a boat anchor around your leg

and you just jumped off the bridge, man. And it's just going down because we know new cars, they take that first hit. They lose 40 to 60% of their value in those first three to four years. It's critical. They lose it so quickly. And instead of that, he's, but he's got his car though i i'm telling you man a thousand dollars tripped me out this these make me sick to my stomach um yeah you can't

here's what people said let's hear what other people said on twitter this is what people responded they said 288 000 for a truck that will depreciate and one-fifth to one-fifth of that long before it's paid off yeah absolutely i don't know where he got the 2088 i don't know where he got that dollar amount from it's going to be more than that this guy said dude could be almost a third of the way through a 30-year mortgage on an expensive house when he pays off his truck. It is a mortgage. $400,000 is what he's sacrificing. And here's the part that's making me sick to my stomach is people watch TV and they watch TikTok and they watch Instagram and they have this vision and maybe they know one guy at their church or one guy at their office or two guys at their office,

and they know that that person's rich, whatever rich means, and that that person who's rich has car X, Y, or Z. And what they don't know is behind closed doors, the average millionaire, the number one car driven by millionaires is a Toyota. It's a Toyota. Wow. And this is how

wealth transfer doesn't happen or does happen is somebody will end up taking this money and they're a millionaire and they're gonna buy a used tundra they're gonna buy a used camry a used cadillac and they're gonna write a check for it and then they're gonna invest three thousand dollars a month and make 400 grand. And on the other side, someone's going to say, I got that same car. Yet they're going to bury themselves. They're going to bury their financial future and the financial future of those who love them and those who come after them with this type of nonsense.

And this is why we tell you guys, like and share the show. It's financial literacy at its finest. People need it. They don't know. This is family tree stuff. They don't know. This is ruining his family tree. He doesn't even know it. He thinks he's gotten a good deal. He's so excited. He's sharing it on social media. And we see that. People need to know this information. Like and share the show so that people can get what we're teaching, which is knowledge. And we all know that knowledge is power. You're listening to The Ramsey Show. I'm Jade Warshaw.

This is Dr. John Deloney. And we are going to give you real talk about your life and your money and your relationships. So give us a call. The number is 888-825-5225. Just be prepared because we're going to keep it real. Let's go to Jeannie, who's in White Plains, New York. What's going on, Jeannie? Hi, John.

Hi, Jade. I have a very, very, very big, big problem. Uh-oh. I lost my... I'm a 58-year-old single mom of three grown boys. I lost... I had a trusted friend, um, watching or my money. And, um, we lost it all 600, 400,000 in a brokerage firm. And

he went into my retirement fund. So it's over 600,000 that I lost. Um, obviously I'm devastated. Um, but thank you, Dr. John, that I've been listening to you for a long time. So I've been trying my best. I'm in like trauma therapy and I'm a nurse. I make around $80,000 a year. I took a second job and I'm bringing in an extra $4,000 a month. I own a home that I have $400,000 in equity. And I'm just not sure what the next step is for investing.

I'm, I could sell the house. Should I sell the house? Because I always led my life, you know, correctly, no credit card debt. I paid for my children's college and now this is where I'm stuck. All right. Oh, it's like, um, Jeannie, I hate this for you. You trusted a close friend, huh? Yes. Was that friend... One of my college roommates is my smart investor pro. Manages my money. I'm in the same boat.

I'm going to call him right after the show. Just kidding. I know he's doing great. But... Did your friend make stupid bets, or was your friend in charge of a mutual fund that just went belly up? I think he was trying to make a lot of money, and he was day trading, basically day trading. He went through hundreds of thousands of dollars day trading,

and then he lost all that. He didn't want to tell me. He was giving me fake statements. So he's a criminal. Your friend is a criminal. That's fraud. He is, and we've gone through the white plaintiff's, you know, with filing charges.

But then he went outside of the brokerage firm to my retirement account, and now I'm having all these tax implications. Well, he robbed you. He stole from you. I know. Yeah, so we're going to deal with that on a separate issue, okay? Here's the big one. Have you forgiven Jeannie yet? Because until you do that, so we're going to deal with that on a separate issue, okay? Here's the big one.

Have you forgiven Jeannie yet? Because until you do that, you're not going anywhere. You're going to sit right in the middle of this. You have to. I think I will be able to, but not yet. Okay. How fresh is this? December 18th.

Ooh, child. You're going to have to. Okay, let's just cut right to it and be real honest. How much of this do you know in your gut things have been kind of shady for a while? Or were you just caught flat off guard? Caught flat off guard. Okay, then you've got to forgive yourself. Listen, we have in our culture, we have like a process for when a friend stabbed us in the back we don't have a good psychology for when a friend stabs us right in

the face and that's what happened to you they looked you in the eye they didn't do anything conniving behind your back he stared you down and you lost everything yeah when he went into my retirement fund he had like paper checks you know hard copy checks cut and took it out of my mailbox yeah he stole i would never take out he's a criminal he's a crook listen you have to set that down here's why your emotional reactivity is going to color what you do next. Okay. And you have to go into this next season as clear-eyed as you can be. What does that mean?

Setting down the rage, setting down the anger, setting down your own self-hatred, setting all that crap down so that you can make a true plan moving forward. I will listen to you. Is that fair? I can't even today just trying to pump gas. I'm shaking because I feel like I'm putting diesel in because I can't even make the decision on which gas pump. That's right.

Because you have lost the foundation with which you walk on, which is trust in Jeannie. You got to let yourself know, I got robbed. Not by your hand, but in your lap. This is not your fault. Yes. Most people most of the time have a little gut feeling that their buddy's kind of shady. Not you. You trusted this dude.

I did. And he stole from you. He was making fake statements, but he was handing them to me. Hey, you got to set it down. Because here's why. None of that, that will come up in court. Hopefully was handing them to me. Hey, you've got to set it down. Because here's why. None of that, that will come up in court. Hopefully this idiot goes to jail, but any time you have to divert

into, and then he did this and he did this, all you're doing is taking energy away from the current moment moving forward and dragging it into the back. Let's not go into the back seat anymore. We're done back there. We have to make a plan moving forward. Fair? Yes, it's fair. I will listen to you. Awesome. Awesome. So let's talk about the financial angle of this. So you're living in a paid for home. It's worth $400,000.

Tell me what other assets you have. It's not paid for. It's worth $600,000 and I have $200,000 left on the mortgage. Okay. Okay. So you got $400,000 in equity. Tell me what other money you have laying around. I didn't have any other money, not even an emergency fund, but I've built up an emergency fund of $8,000 since December 18th. Okay. You're getting after it, aren't you? Yeah. Okay. I work in a group home all night long. I work all night now. I want you to keep that intensity. I want you to build up six months of expenses,

whatever that is, basic expenses, whatever it takes. If something were to happen for you to keep things running in your household. Okay. You told me you're taking some overtime. How much are you bringing home every month? Around $7,000. Okay. And how much of that is margin? Like how much of it is extra? After you pay your bills, you get groceries. Oh, well, to be honest, maybe it's more because right now the margin is 5,000. Okay. So you got 5,000 a margin. That's good. So I do. First things

first is you're building up this emergency fund. And after that Of all the money that you're bringing home. I want you to start investing 15 of it We're just walking. We're walking old school baby steps here. I want you investing 15 into your 401k basics All right Okay, and then after that we can start looking at while you're doing that we can start looking at making extra mortgage payments Because I want this two hundred thousand dollars paid off I want your home paid,000 paid off. I want your home paid off by the time in the next 10 years. Like I want it done. And I want you to go into retirement at 65 with a paid for house and you've been investing. And then at 68, if you decide to retire, you will have been investing at least $5,000 a month for the next 10, for the last

10 years. Fair enough? Okay. Okay, so let's do it. I was thinking of selling the house and using that to build more money. No, I want you to be 65 with a paid-for house that no one can ever take from you. Because here's the thing. If you invest, I'm putting this in my, you know, I love a compound interest calculator. If you start with zero and I'm just putting this in here, if you start with zero dollars after and you invest for 10 years, so from the time you're 58 to the time you're 68 and you get some great rate of return funds, maybe you're in a 10 percent annualized rate of

return and you're doing this every monthly five thousand dollars a month. Right. If I calculate that, that's showing me that you're going this every monthly five thousand dollars a month right if i calculate that that's showing me that you're going to have a million dollars really yes okay so you've got time like john said it's very the emotions are high right now but our emotions aren't high this didn't happen to us so So we can look at the numbers and we're looking at them clear and focused. This is just showing you investing over the course of the next 10 years, $400,000 of income and the rest of it is growth. I can do that. Yeah, you can do that. And you're going to do more because you're working like a wild woman right now. I am because I can't be

home. If I am home, all I just do is cry. But if I'm at work, I'm okay. Okay, but hold on. Don't work yourself into a grave as punishment for what you think you did wrong. Okay. You got hit in the mouth by somebody who said, I love you. Yeah. You got taken advantage of. You did not do something wrong. So you're going to have a season.

You're going to have a decade when you thought you'd be landing the plane. You ain't landing the plane, honey. You're going to be working hard. Yes. But we're going to be working for something not to punish ourselves. Okay, that makes sense. I'm working for something not to punish. Okay.

We're working so that at 70, you're going to be one of those rad New York ladies with huge glasses walking around telling guys like me to get off the sidewalk with our hacky sacks. That's what you're working for. You don't need to beat yourself up. You didn't do anything wrong. You got robbed, man. And now we're going to go make it moving forward. Hang on the line.

We're going to hook you up with Financial Peace University. We want you to watch all the courses. And we're going to hook you up with a session with a financial coach to give you some peace of mind moving forward. This is The Ramsey Show. We'll see you next time.