The Ramsey Show - App - Live Like No One Else, So Later You Can Give Like No One Else (Hour 3)

Episode Date: July 21, 2022

Dave Ramsey & George Kamel discuss: If buying a vacation home with the in-laws is a good idea, Preparing for baby step 4, The best way to fund medical school, The ins and outs of donating money to friends.   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

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. We help people build wealth, do work that they love, and create actual amazing relationships. George Campbell, Ramsey personality, host of The Fine Print and the Entree Leadership

Podcast on Ramsey Networks, is my co-host today. Open phones at 888-825-5225. Eric is with us in Lansing, Michigan. Hi, Eric. Welcome to the Ramsey Show. Hello, gentlemen. Mr. Ramsey, it is an absolute honor, sir. So thank you. Thank you. For the opportunity to speak with you. And thank you for your backwoods hillbilly wisdom because you've changed my family. We've been debt-free house and all for a little while now.

So thank you very much, sir. Way to go, man. So you own a house debt-free. Way to go. Yes. So I have a real estate question. I'm curious what 37-year-old Dave would say. So my in-laws currently have two houses, one in Michigan and one in Florida. They winter in Florida, so they're snowbirds. They no longer want the maintenance and upkeep of a house here in Michigan,

so they're selling it. My wife and I, we've been looking at purchasing a lake house. So my in-laws came to us with the proposition of gifting us 50% cash towards a down payment on a lake house. The understanding is that they would live with us or live at the lake house during the summer months for three to four months. And the house would then be in our name solely. So we have been saving for a house. We obviously don't have the other 50% remaining, but I'm curious what your thoughts are on this. Wow.

Very generous of them. Yeah. Yes. We have a very good relationship. Okay, so they're going to give you how much money? 50% towards the place house. I don't know. What is that?

How much money is that? Well, I don't want to go over $ 000 total for the purchase okay so they're going to give you 200 000 in return they get to live in the lake house in the summer which by the way is the only time you can use it can you visit there can you visit your lake house in the summer yeah absolutely while they're there what we're looking at you guys can go up and put the boat in the water and all of you play and all of you while they're living there in the summer you'll be able to use it yes it would be big enough for both of us to be there in the summer and we would utilize it in the winter too and you've got kids yes sir known as their grandkids yeah and i'm liking this this is great they're smart people okay so you don't but you don't have the other 200 grand

no not yet okay how long before you have that honestly it would probably take us yeah you know four to five years before we got that well probably closer to four okay well lake house is a toy and I'm not going in debt for a toy. And when I bought my Lake House many, many, many, many years ago, I didn't go in debt for it. It's a toy. And so, no, no, you don't. You got out of debt.

Yeah, no, I get it. It's, yeah. What's your income? I guess, so my wife and wife and I, we make about 140,000 a year. Okay. You don't have any payments. So I'm going, what does it look like to start looking once we have a hundred grand and they can put in, you know, they put in a hundred and we start looking at more affordable options for lake houses. And if it's not the right one, then we keep waiting until we have the cash to do it and we can pony up 50 and 50 yeah it's just really tough as far as getting something that we want in that price range at this point in time but no i i get where you're coming from

is there any urgency around this no he just wants a lake house well of course i want a lake house who doesn't want a lake i agreed i agree i'm with you i'm 100 with you on that three years of delaying this dream you you'll live, right? Well, or do it in some other way. But here's the thing. Because in a sense, they're putting the money on the table now, and that's pushing the urgency to do it now. And the fact that it's a lake house,

and you're getting half of the equity covered for you, it seems ludicrous not to borrow the money to do it but i still am not going to borrow the money to do a toy i'm sorry dude i wouldn't do it um if i were you you ask what i would do and um and i can verify that i would not do that because i did not do that i saved up and paid cash because you know again you're in michigan your summers are short and so you got three four months of use a year and you know and you're gonna pay payments on it 12 months so no i i um i wouldn't do that now um what is these folks net worth i have no clue well if you were gonna guess million, a million? Oh, over a million, but I don't know beyond that. Okay.

So basically this money will be coming from the sale of their Michigan house. Yeah, probably. Yeah. Okay. Maybe they go buy the lake house when they sell it, the one that you all agree that you want and you delay you and you say, okay, I'd like to lock in that. I can buy it for half of that. Uh, when I can save up the money in a few years, meantime, you know know we'll all use it together right yeah it's you know we were just looking at this as an option it was proposed and yeah you know so it's a wonderful gift here

in the summer it's a wonderful gift and a lot of things but listen if you add up the payments on two hundred thousand dollars for the number of times that you're there uh it's expensive you go on some really nice vacations. It's expensive. And so, yeah, I want you to be able to figure out a way to do it, but if it involves you going into debt, I would not personally do that, and I would not recommend it. And I love the idea of you having a lake house. I love the idea of them paying for half of it.

I love all these ideas, but I'm not ever going to tell somebody to go in debt for a toy, and this is it. Now, on the real estate side, Dave, if the in-laws buy the lake house and he wants to buy them out of it, what is the right way to do that? Later, they could just deed it over to him. Okay. He hands them a check for $200,000. They buy a $400,000 lake house and agree that when he hands them $200,000, they hand him a deed, and he starts saving his $200,000 and buys them out in a few years on the same deal. That plan just gives me a lot of peace when you say it like that. I'm thinking Papa and Granny here have some money, but I could be wrong. That they might be able to afford it in cash.

I don't know. I don't know if they can or not. If they're sitting on a $2- or $3- or $4-million net worth, $400,000 is not going to kill them. And they were planning on gifting this anyway and so on. It's a good question. No, I would not tell you to borrow money. Thanks for the call. Open phones at 888-825-5225.

Once you get out of that, once I got out of that and i felt the freedom there wasn't anything gonna get me back in but i had some temptations like he has had over the years you know we had a building the first office building that we had we leased it for five years and i had an option to purchase it for five million dollars when i did the, I didn't have any money. Hardly. I mean, I had net worth, but I didn't have $5 million. And I'm leasing it for five years. Well, during that time, the building becomes worth about $14 million.

Wow. And you still have the option to buy it. And I've got the right to buy it for $5 million for five years. I'm at four years and some change, and I'm scratching nickels out of the corner of the couch trying to get the five million together because I don't want to miss this. I was tempted to not walk away from all that equity that was built into this option deal to go borrow money. It's got some zeros on the end. But I'm not borrowing money. I'm not borrowing money. It's a sign from God I'm not supposed to have it if I don't have the money. It's a simple thing for me. This is the Ramsey Show.

Your memories are meant to be relived, not chewed up by the VCR or worn away with time. Converting your old media with Legacy Box stops fading in its tracks, so your home movies are safe forever, and you can trust Legacy Box. I've met the founders. They're right here in Tennessee, and they've helped over one million folks protect their memories. For a limited time, you can get started for just $9 a tape at LegacyBox.com slash Ramsey. That at legacybox.com slash ramsey that's legacybox.com slash ramsey george camel ramsey personalities my co-host today. This week we announced that two of our Building Wealth events for the fall have sold out. Phoenix, September 13th, sold out.

Sacramento, November 1st, sold out. That leaves Minneapolis with a few tickets, November 10th. San Antonio with a few tickets, November 15th. And we opened an extra night for Phoenix. We cannot get extra nights in the other cities, so when they're gone, they're gone. But we'll be there September 12th for Phoenix. And we launched it a couple days ago. It's already half sold out.

Wow. So these things are going very, very quickly, George. These Building Wealth Live events are me and George and Rachel Cruz and Ken Coleman, Dr. John Deloney. We'll talk to you about what's going on in the economy, what you've got to do to build wealth. We'll have a panel discussion. We'll be signing books, taking pictures, hanging out. And these are all like 3,000 person events type size. They're not super large. They're not like arena events, big theater events. But they do sell out very, very quickly. And tickets are only $25.

You can get a four-pack starting at $60 at RamseySolutions.com slash events. George, this is exciting that you're selling out so fast. I know, and the crowds have been amazing. My favorite part is just getting to meet people after the event and hear their stories. And I think it's a mix of the event is great, yes, but people are also desperate to get out of the house and go to events again yeah and it's been amazing to see the response to these

it's interesting to from an attendees perspective to be in an audience of 3 000 or 4 000 people whatever it is uh all people there with the same goal which which is actually, you know, taking control of your own destiny, building wealth so that you can be generous. And there's just a shared dream there. And so it's not like a mix of people who don't want to win, who are victims or whatever. It's all, it's like a pep rally for the stuff we do in a sense. And we're swimming upstream because culture, media, they're telling people, hey, you can't win in this economy. You can't beat inflation. You can't build wealth. You'll never retire.

And we're over here on our street corner just yelling, going, it's possible. You can do this stuff. RamseySolutions.com slash events. Get your tickets to these live events. We're also doing in Dallas the Smart Conference. It is, I think, 65% sold out for October 22nd already. So if you want tickets to that as well, that's a day-long event with all of us, plus Craig and Amy Groeschel speaking on marriage this year.

Helen is with us in Chicago. Hi, Helen. Welcome to the Ramsey Show. Hi, how are you? Thank you so much for taking my call. Sure, what's up? So my question is, we're ready to start Baby Steps 456. So I'm looking into my retirement options.

I'm a teacher, and what my district provides are 403Bs and 457s, and then Roth options for both. And I'm not sure which one to take for the Roth options. I think Roth is better than a traditional, right? Yeah, Roth is best and 403B. Okay, so Roth is best. I'm assuming you've got some good mutual fund options in the 403B. Have you looked at those?

Yes. I did a webinar last night, and then I got some information on that. They have a Vanguard Index 500. They do have a lot of them that I've heard you speak of online or on the podcast. And I do want to look into those as well. Good. They do have, like, target-based ones as well. Yeah, I wouldn't do that.

Okay. So, yeah, they do have mutual funds right just straight up mutual funds and we always tell you to put a fourth in each growth growth and income aggressive growth and international your s&p 500 falls in the growth category so it's fine that's one of your four it pick you out a good international it'll be the worst performing of the four categories, probably, when you look at the track record on it. And aggressive growth or emerging markets, it'll sound something like that. And that'll be the highest performing but the most volatile.

And the boring one will be the growth in income. And that's also sometimes called a blue chip fund or a large cap fund. Sometimes your aggressive growth is called a small cap fund. Oh, okay. Thank you so much. Thank you. Congratulations. It's an awesome place to be.

Yeah, that's a great place. If you go across those four types, George, and you pick ones that have good long track records, you will have followed what we've been teaching for 30 years and what the baby steps millionaires the follow that caused them to become baby steps millionaires and the third uh ranking career teacher yeah that's true study that's exactly right good point so there you go she's on her way when we did the study of millionaires we one of the things we found as we studied 10 000 millionaires was they the um number one career most likely to be that showed up the most often among millionaires was engineer number two was accountant number three was teacher

uh four was manager and five was lawyer doctors mds didn't make the top five there were number six what are they busy doing spending money impressing people well docs are i mean they obviously they make a lot of money so a lot of them become millionaires but they're notorious for stupid financial decisions i mean they're they're like like like music artists or something i mean it's like teachers have good heads on the show nfl players i mean you know it's that kind of stuff not quite that bad but yeah but they're that there's um doc doc itis has with it an arrogance that because you're a medical doctor you know something about everything and so they tend to uh make bad financial decisions instead of conservative traditional you know giant luxury cars they can figure out some kind of risky investment.

Yeah. So not all of them, but some do. Yeah. All right. Dallin is with us in Phoenix. Hey, Dallin, what's up? Oh, not much, Dave. Thank you for taking my call.

I appreciate it. Sure. How can we help? So you were just talking about doctors and different things. Sure. How can we help? We don't have enough saved up, obviously, to pay for that in cash, and none of our families are going to help us financially, my wife and I. And I know the military is a great option. If we can get into the military and do it through one of the branches, that's a great option. But I was wondering if either of you had any idea of other places where I could start looking to get some support there.

So how much is this going to cost based on your research? Based on my research, here in Arizona, we don't have any public dental schools. So if I leave the state, I have to pay out-of-state tuition. So that raises tuition up. So the cheapest that I found for out-of-state is about $80,000 a year for dental school. So you're looking at $320,000, $350,000 at a minimum for just tuition alone. How much money do you have saved? Right now we have right around 50 000 in the bank okay and what do you do for a living currently um we we work college jobs i work at a manufacturing early in the mornings and my wife so you're you're an undergrad so you're 23 or 22 yeah i'm 23 years old yeah, all right, cool. Well, here's the problem, okay?

For some reason, and I really don't know what the reason is, someone closer to the subject probably could explain it to me, dental school is more expensive than med school, which baffles the mind, actually, because dentists don't make more than MDs make, you know, by and large. So I cannot tell you in good conscience, having worked with dentists for years in entree leadership, helping them with their practices, helping them with their business practices,

looking at these things. I can't in good conscience tell you to go $400,000 or $300,000 in debt to do this. I wouldn't personally. But is there a way to get at it? Well, like you said, military is one. Another thing is that there's a huge movement in the dental world for corporate dentistry. A lot of big companies, corporate conglomerates are buying up practices. And some of those might have scholarship programs. They might have, if you promise to work there or work for them for so many years when you come out type of a thing.

I would trade out a few years after I get out for free dental school if I could find a company that would do that. I don't know one to send you to, but there's a lot of movement in that direction. Be very, very careful with this. This is very dangerous. Hey guys, George Camel here, and I'm so excited to tell you about the newest product from Ramsey. It's called Gazelle, and it's a digital banking experience that will help you spend and save the Ramsey way with banking services provided by Pathword NA. You'll get a single spending account with no monthly fees, and it's FDIC insured through Pathword NA. You'll get a single spending account with no monthly fees and it's FDIC insured through PathWord NA. We're offering early access to our beta customers so you can help us make it the best experience it can be. Just go to ramseysolutions.com slash gazelle to sign up for

the waitlist today. Coach Campbell Ramsey personality is my co-host today in the lobby of Ramsey Solutions on the debt-free stage. John and Joy are with us. Hey guys, how are you? Great. Hello Dave, how are you? Better than I deserve. So good to have you guys. Where do y'all live? Akron, Ohio. Oh cool. Welcome to Nashville. How much debt have you paid off? $76,000.

Alright. How long did that take? About three years. Two and a half, three years. Alright. Very cool. And right. How long did that take? About three years. Okay. Two and a half, three years. All right. Very cool. And your range of income during that time? About $100,000 to about $110,000. Cool. What do you all do for a living? I was in IT and recently switched careers to a vocational instructor. Oh, cool. Good for you. And I work in cardiac rehab. Oh, good. Okay, great. What kind of debt was the $76,000? Everything. You name it.

Credit cards, mowers, trucks, student loans, the whole bit. So you were like normal people? Normal. Normal Americans, deeply in debt and got a good mower. You will. Until even that wore out. Oh my gosh. Kept the payments but got rid of good mower. You will. Until even that wore out. Oh, my gosh.

Kept the payments, but got rid of the mower. Yes. Oh. Okay, so what happened three years ago that was the wake-up call, and how did you get connected to this Ramsey stuff? Yeah, we had, I think the hot water tank was the big one. It was an emergency that wasn't planned for and uh took a dive on us and we didn't have any means to pay for it and it was you know it's just a hot water tank but it was huge you

know for us and um and quite frankly when you can't provide hot water for your family it kind of does a little something to your man card you know and in your dignity and so that set us off um so you said you were done with the credit cards at that point you went we don't have the money for life's emergencies we got to get on a plan well the credit cards wouldn't even loan us money at that point so so you maxed out the cards yeah wow so how'd you get connected to us at that point we had some friends that had mentioned an envelope system and not having credit cards. And when we got to that point of hitting rock bottom, we said, hey, let's find out who that guy was.

And so we did, and we got your book, and we read it together. And instead of a $1,000 emergency fund, we were shooting for an $1,800 emergency fund because we had no hot water. We were taking some cold showers. That'll put some pep in your step. It did. So the first order of business is get hot water. Yeah. And that's great.

That's amazing. Okay. So Total Money Makeover book, I guess. Yes. Okay. And that got you started on the whole thing. Yep. And then three years you slogged through it, huh?

Yeah. Yep. Okay. We did a little door dashing. We did little bit of you know uh garage sale you name it i mean it was kind of our date night sometimes door gnashing you know to make an extra 300 bucks but at the end of the day here we are and uh it got us here so what was the hardest thing to get rid of that you had to sell or i mean for me i'm just vendor she's a nerd um i i sold a 1967 uh k guitar acoustic electric one that cool one like it was like gifts or anything but it was cool to me you know vintage see that gets me i thought you're gonna say it

was a car and usually i go i can get rid of that but a a guitar, that's tough for a musician. Yeah. Wow. But it was worth the sacrifice. Oh, absolutely. So what do you tell people the key to getting out of debt is? Remembering the why. And for me, the why was that there was a time in my life where I was so afraid and nervous and anxious and felt like I was drowning in debt. And I don't ever want to go back there again. And I know there's people out there that feel that way right now. And I just want to reach a hand out to them and let them know you can do it. And we led our first FPU class this year.

Wow. We even sponsored a couple. We were able to do that. They were in the middle of an emergency when they started. So it just feels so good to be able to give back. That's the whole reason. That's the whole goal. And actually, even more important than that, we met God on the way, climbing out of our debt. Very cool. Yeah, it's great. And we owe it all to you.

Very cool. We're proud of you. That's awesome. That's the best part of the story right there. Amen. Excellent. Excellent stuff. Amazing. Cool. So you the best part of the story right there. Amen. Excellent. Excellent stuff. Amazing.

Cool. So you're attending a good church now. We are. What's the name of the church? Fairhaven Church in Rootstown, Ohio. Neat. Very neat. Very cool.

Good job. Good job. And all because of a hot water heater. Amen. All because of a silly hot water tank. God works in mysterious ways. He does. Wow.

I like it. That's great. Did the kids get involved? Absolutely. God works in mysterious ways. He does. Wow. I like it. That's great. Did the kids get involved? Absolutely. They each have their give, save, spend envelopes. Joey owns his own lawn care business and was able to buy his first car all by himself. Go Joey!

Whoop, whoop, whoop, whoop. What did he get? What kind of car? An Alexis IS250. Whoa. It's old and used, but hey. Not bad, though. That car's got a cool factor, though.

That's a good car. Very cool. And does he provide free lawn care for you? That's the real question. Now that you're mowers. We come last. He's your final customer. That's awesome.

You guys are heroes. Way to go. Excellent job. Excellent job. Okay. he's your final customer that's awesome you guys are heroes way to go excellent job excellent job okay so the thing you wanted to make sure of is tell people they can do it that there is hope um talk about the toughest moment in this whole process where was the toughest moment the toughest moment for me was before we started, was at the beginning, like not even knowing that we could do it. So every day got a little better after once you took control of it. Once we sat down and did a budget together, it was just relief. Like we had a plan and we enjoyed our budget meetings. We did it weekly. Every Friday night was a win for us. And every time

that we had a victory, every time we paid off a loan it was a celebration and that motivated us it kept us motivated very good yeah and you know you talk about um uh feeling like you gave yourself a raise you really do it's amazing when you start um putting your money to work for you and you being the boss of it rather than you know it being the boss of you um how you can develop this or gain this traction around um you know trying to get out of it yeah that's very cool all right now you're leading a financial peace class people hear you paid off 76 000 bucks and they say well how'd you do that what do you tell them the main couple things they need to do is well i well you know like she

said for for me i think the biggest thing is remembering your why remembering the hot water tank that took a crap on you and trying to you know make it right for not only the moment that you're in but also the long-term outcome for you and your family um and And then I think self-denial or denying yourself, you know. Discipline. Discipline, yes. Discipline is the perfect word for it. Everyone around us has brand new cars. Ours are 15 years old.

So, you know, just discipline. But you're free. We are free. How's it feel? Beautiful. Wonderful. Unbelievable. We're proud of you.

You guys are amazing. Very, very well done. Good words. Good words. A lot of people inspired by your story. Wonderful. Unbelievable. We're proud of you. You guys are amazing. Thank you. Very, very well done. Thank you. Good words. Good words. A lot of people inspired by your story. Heroes. Absolute heroes.

Very well done. Got a copy of Baby Steps Millionaires for you. That's the next chapter in your story. You're on your way. How ordinary people build extraordinary wealth. How you can too. And a copy of Total Money Makeover for you to give away to somebody. You're going to run into somebody this week probably.

And we'll go ahead and give you a one-year subscription to our membership to Financial Peace University, and you'll be able to give a scholarship to somebody in the next class that way. Very cool. That's fun. Yeah, good stuff. Thanks for leading the class. That's awesome.

We appreciate that. Very, very good. Yeah, you'll be changing some people's lives by doing that. It's important, important stuff. You guys are impressive. Very well done. All right, so Joseph and Lexi are how old? 16 and 12.

All right, very cool. Very well done, you guys. All right, John and Joy, Joseph and Lexi, Akron, Ohio. $76,000 paid off in three years, making $100,000 to $160,000. Met God on the journey. Count it down. Let's hear a debt-free scream. Three, two, one.

We're debt-free! Yeah! Woo-hoo-hoo-hoo! Love it! That's how it's done. He counted that down like a band leader. That was amazing. They've been practicing.

Good stuff. That's changing the family tree. The kid's buying his car with cash. He's starting his own business. He's catching on to this thing. Rock stars, man. This is the Ramsey Show. We'll be right back. Our scripture of the day, Psalm 139, 16, You saw me before I was born.

Every day of my life was recorded in your book. Every moment was laid out before a single day had passed. Mark Twain said the two most important days in your life are the day you were born and the day you find out why. Good stuff. George Campbell, Ramsey Personality, is my co-host today. Bill's in Green Bay. Hi, Bill. How are you?

Good. Thank you. So my wife and I are always looking for the most worthwhile places to donate money. We currently donate to our church and a couple of other organizations, but we're looking to make a bigger impact for a family. And we decided we'd like to donate money to a couple that we know to help them pay for college for their 14-year-old when she goes to college in a few years. And now we're friends with this couple, but not extremely close. And we feel that this is an excellent place to donate money and have a big impact.

The child has extreme potential. And my question is, number one, what is a good way to sell this idea to them? I know that, well, there are no, absolutely no strings attached and we aren't looking for any recognition, but I've realized this has a potential to seem off putting if we approach it in the wrong way. And number two, if we do go through with this, what is the best way to go about it? Would we just give them a check so they can open a 529 plan or open one ourselves? Are there any tax implications associated with this? Yeah. What a big heart, Bill. Way to go, man.

That's awesome. Thank you. So how much money are we talking about donating to this child's college? $10,000. Good for you. Okay. All right. Thank you. what i would do is contact a smart investor pro and um get everything all set up but don't open it get it ready to go select the mutual fund figure out the 529 plan get everything set up uh you will if i were in your shoes i would list the parents as the custodian of the money, which means they're in charge of the money. Okay. Okay.

And then I would take them to dinner and just sit down and go, okay, this is a little weird. The best way to keep something that's awkward from being super awkward is just say it's awkward. And that kind of takes the awkward power away, right? Yes. And just go, this is strange. I've never done anything like this. I know if I do this wrong, it could be off-putting. And just say the exact same things you just said to me.

And unless these people are psychotic, they're not going to be put off they're just going to go wow we are so grateful thank you so much for that you didn't have to do that i mean do you know about their financial situation slightly um i i think that this this would be um very grateful yeah yeah i think it's because it's for the child and for college, it feels different than hey, you guys are broke, here's some money to be less broke. This feels like you care about this child and their future and you're investing into that.

Let me tell you, as a parent, it's hard to not like someone that's doing something nice for your kid. Yeah. If you're mad at generosity, especially for their child, that's a weird thing but i mean yeah you you know and i think i would just couch it and say listen there's no strings attached i've got it all set up you will be in charge of the account as the custodian i have not made the

deposit and done the final stroke on the paperwork yet but it's all set up with a smart vestor pro from you know one of the people ramsey recommends, and it's $10,000. It will be in a mutual fund, and then you're in charge of it, and we're going to hand the paperwork over to you, and we're going to walk away, and it's going to be under your control. And we've got lots of suggestions and lots of ideas, but none of those are part of this deal. Okay.

That sounds good. i appreciate that i've had a great deal of anxiety about how to approach this and you just say that out loud and you know what they'll go yeah i kind of understand because it's not like we're best friends it's not like we're family members uh this is a little weird, but it's wonderful. Weird. Well, thank you. That's good to hear. Yeah. And that's, I think when you say that out loud, then everybody's not sitting around going, okay, why does this feel strange to me?

And no one's acting like it's strange, you know, because it is strange, but it's a wonderful strange. So, but it, it takes the, the, all the awkwardness and the anxiety and all that stuff goes away as soon as you say it out loud yes that sounds right i hadn't thought of it that way but that does make sense yeah hey thanks for the call we appreciate you joining us the baby steps and thanks for being bill kind of generosity everybody ought to be bill i mean there there you go live like no one else so later you can put ten thousand dollars in an account for a kid that's got big potential that you sort of know wow that's called generosity

right there boys and girls that's a big time move that that's a that's a pro hack right that's inspiring it makes me want to do that one day yeah it's very very cool very very good stuff yeah anytime you're having money conversations or any other conversation for that matter that's awkward um when my kids were teenagers there was a thing they would do like awkward turtle oh i remember that remember that yeah and and they would just go okay awkward turtle and this this is awkward conversation just gives you permission um like a turtle that's upside down can't get over i don't know how they did their hands but it was like something like that and um yeah and it was golly wow but i mean it does it's just like okay this is just diffuse the tension sometimes

you know we're teaching leaders to do uh to sit with someone where there's going to be a difficult conversation how to have difficult conversations and one of the best things you can do when you're having a difficult conversation with a team member and you're saying as their leader, you're going, hey, this is going to be a difficult conversation. Get ready. Here we go. And all of a sudden, it's a little bit less difficult. There's still some hard truth. There's still some things that have to change for you to get to stay working here. There's still, you know, we're still going to have to have some clarity

and have to have some change in behaviors or whatever it is but you're gonna know and you're not getting fired today and but this is gonna be tough so you know buckle in there buttercup here we go and confusion all of a sudden it takes some of the weirdness out of the air on those types of things brian is with us brian is in cincinnati ohio hi brian how are you hey great guys how are you better than i deserve how can we help uh my wife and i are in the process of looking for a new house to buy i'm just trying to figure out how much house we can afford um we make about 40 a year we clear about 7,500 a month we own a house currently that we owe 57,000 on to probably sell it in around 180 house rates to 190 in our neighborhood but it's just the

numbers I'm going off of we don't any other debt good okay I wouldn't want your payment we teach okay you can qualify for a lot more than we're going to tell you to do right but we have some conservative guidelines george yeah so we're looking at 15 year fixed rate mortgage and no more than a quarter of your take-home pay and then you can decide how much down payment that is obviously i want you to put down as much as possible and get a reasonable house so once you start yeah whatever the number is that the loan qualifies for based on that, and the rates are probably about four and three quarters, something like that, on a 15-year? Yeah, on a 15-year fix, you're looking probably close to five at this point.

Yeah, and so, you know, plus you've got $120,000 coming out of this house, right? Yes. So what kind of house are you looking to get? Have you done the research in your area of what you'd? Yeah, we've done a little bit. The houses are going for around like $350,000. That's probably, I'm thinking, the top of our budget or too much, but that's kind of the range we're looking at just for an upgrade.

We're just looking to upgrade the house. We don't want to make a lateral move to a nicer neighborhood for the same size house. You said your take-home pay is $7,500? Mm-hmm. Yeah. So you're looking at $1,875 would be kind of your top limit. So I'm just crunching numbers here, and I'm going, okay, well, $1,875, you probably need to put down $180,000 on a $350,000 home in order to do this

and have it not be too much in the world. So that means you're probably buying a $320,000 house based on the numbers we got here, something like that. So we adjust our expectations expectations or we save longer. Yeah, give or take a little bit. Because you've got $120,000 to put down out of your house. Unless you've got some other monies to put with it, you might have. But again, a fourth of your take-home pay in payment on a 15-year fixed.

And that keeps you from having bit off so much house that you can't fool around and get it paid off. We want the margin in your budget so you can get it done. Good hour, George. Well done. Thanks, Dave. Well done, Kelly, Andrew, Zach, Ben, Austin, all the team in the booth. I am Dave Ramsey, your host. 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. Do you love a good day, Brandt? Want to see the latest Ramsey Show videos going viral? Check out your favorite moments from the Ramsey Show on YouTube.

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