The Ramsey Show - App - Make Smart Decisions Around Selling Your Home

Episode Date: April 19, 2022

Dave Ramsey & Dr. John Delony discuss: What to do with a large sum of money from a home sale, Email scams, Selling a home in a different state, Budgeting for business. 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. I'm Dave Ramsey, your host, Dr. John Deloney, Ramsey personality, best-selling author, launching his brand-new book today, Own Your Past, Change Your Future. It's book launch day at Ramsey. We're a little jacked up around here, to say the least. Open phones again, 888-825-5225. You can call in. We help people build wealth.

We help them do work that they love. And we help you create amazing relationships and mental wellness. Thanks for being with us. Any questions around any of it, we're here to help you. The phone number, 888-825-5225. John, the book is out in the wild. It is out in the wild.

How's it feel? It's good. It's good to be able to see the people starting to get the audio book or the writing me back chapter by chapter. I loved it. I loved it. So it's been a good day. Good. Yeah, it's fun.

You've been doing a ton of media today, of course. You were here with me before God himself was awake. Before the sun got up. Yeah, that's right. Yeah, we were doing stuff early, and it's good. It's good. A lot of media attention because a lot of folks out there, it's a word I picked up from Craig Groeschel's podcast this week,

the last two years have depleted people, and they need to be replenished. Love it. This is a phrase he's using, and I like that. The thing we didn't see coming was we held our breath and gritted our teeth and pushed through all the stress around the pandemic all the different things that came at you regarding that whether it was medical stress financial stress career stress all of it came at you real estate stress now you got inflation now you got everything else and your tank's empty that's right so if you think of life like a like we like we talk about on the show you've got to

have an emergency fund you got to have some money set aside so when things get bonkers in the last two years we gritted our teeth and burned through all of our margin and then the world went bananas right when we were coming out of this thing right inflation went crazy the war kicks off and the people acting the fool so um yeah you just look around and everybody's spent man yeah and it's a different you know and you know sometimes they're translating that to uh i'm burnout on my marriage and they weren't they're just burnout i talked to a teacher yesterday on my show saying i i love teaching i love the kids i love art i think i'm done with with this job though and as i dug into it oh man she was just depleted she's just exhausted yeah

you got to pour something back into the tank now, fill back up, and game on again. That's right. But you've got to be fill up. You can't be game on without being filled back up. And that's one of the things this book is going to do so beautifully for a lot of you. It had that effect on me when I read it because I'm like anybody else. Our adrenaline glands are – You ran hard, man.

Man, I've been going. This two years has been wide freaking open. And I had 1 a thousand people that were depending on us to keep revenue coming in here to keep payroll so they could keep their jobs so we had to you know you're spent from doing that and um uh actually craig and i were talking about this we're friends and then he goes and puts this on his leadership podcast and it just really resonated with me i sent it i sent his podcast out to all our leaders because it's just. But own your past, change your future is one of the ways to put fuel back in your tank. A not so complicated approach to relationships, mental health, wellness.

Some of the things you've been feeling where you thought you were like, I'm really not right. Well, you probably aren't, but that's okay. Actually, that feeling means you are right because you should be having anxiety. It's an alarm bell. Yeah. And I had a conversation with a mental health practitioner who's much more accomplished and is brilliant. And we both got to talk.

And you know what, Dave? And I'm speaking as a member of this community the last hundred years the mental health community has convinced us that all of our problems are quote-unquote in our head and if we can just think the right thought then we can figure it out and then everything will be okay and I think that's completely inaccurate I think there are seasons when I just have to go do and I have to go begin acting differently even if i don't feel like being nice to my wife i'm gonna go do the dishes and take the trash out because i'm gonna help i'm gonna start leaning into some of these practices and we've just left that off the quote-unquote mental health conversation the relationship conversation and so there's some stuff we

got to think differently but man we just gotta start doing stuff differently sometimes well and you keep talking about and you've worn me out with it um in a good way that that the importance of relationships the importance that people are your emergency fund yeah relationships are your emergency fund when you're facing high stress high burnout situations or are you facing high anxiety you're facing grief you're facing uh catastrophe tragedy whatever it is you're facing and and we've all had our share of those things in the past 36 months. I don't remember if you remember during our interview, when you and I, one of the last conversations we had,

because of my research, my academic work with leaders and executives, one of the last things I asked you was, who do you listen to? And you rattled off a group of men that you're connected with, a group of pastors here, a group of this, and a leadership team. And I remember going to the parking lot and I called Sheila and said, Dave and I might disagree on a thousand things, but I trust him and I can work for him because he's got other people he listens to. He's got other people in his life. And that I've found is the key to making good business decisions, good financial decisions, good marital decisions, is having other people in your life you can reach out to.

Now, but in this mess, I'll be honest with you, I reached a point where I just didn't want to be around people. I did, too. I found myself lonely. And I had to force, you said you're talking about forcing yourself to go do the dishes, carry the trash. It was like I had to force myself back into those relationships. That's right. I had to do it as an act of my will because I didn't want to do it. I didn't want to be around them.'s right i was just disgusted i'm with

human beings piss me off you know it was just like yes there was a point during all this stuff when all the mask and the vaccines and the crazy butt stuff and i just went you know what i don't want to talk to any of you you're all fools i'm going home you're all fools netflix is just gonna tell me porch they're gonna tell me what i want to watch. And pet the dog, by God. The dog ain't got an opinion about the vaccine. You know, I don't want anything to do with all this junk. But, you know, that's a human reaction. Absolutely, yes. And yet you do need to take some things where you own that and you step into,

intentionally pass that, and you call a friend and go, okay, you know, two friends, three friends, we've got to sit on the back porch and we're're not turning on the TV, and we're not looking at screens. We're just going to sit here and tell stupid 13-year-old jokes or whatever we're going to do. But, you know, we're just going to hang. And that's the kind of stuff in this book, and that's why this book's white hot. It's going out the door like crazy. Own Your Past, Change Your Future, A Not-So-Complicated Approach to Relationships, Mental Health, and Wellness. door like crazy own your past change your future a not so complicated approach to relationships mental health and wellness if you've listened to the dr john deloney show and he says uh

things that you go gosh i wish i could just talk to him i wish i could just sit down with him this is uh the best attempt we can all come up with is this book is just like him sitting across the table from you. I wonder what he would say about, well, just read this book, because it's what he would say to you if you were sitting across the table. And if you're not listening to the Dr. John Deloney Show, the podcast, you need to be. You need to be tuning in. So the book is on sale officially today. All of you that preordered, there's tens of thousands of you that preordered.

Thank you so much for that over the past few months. All of those books were shipped today. They're available today in bookstores. Amazon is shipping today. If you pre-ordered there or you ordered today, it'll ship today. If you order from RamseySolutions.com, it will ship today. The audio book, the e-book are all available as well as read by the author. And I'll just tell you, that's a treat.

Hey, let me tell you this. It's not lost on me that none of this happens without your hospitality. I'm grateful for you. Thank you for all the help and support. This has been a beautiful journey. It's easy to endorse something that's this transformative, that's this helpful. I'm grateful. And that is this good for people.

Own your past change your future get your copy today we're gonna be taking your calls right here on the ramsey show car insurance is one of the most important coverages you can have but most drivers are underinsured. That means your insurance policy probably won't cover all the costs of an accident, and you could end up owing thousands of dollars in medical bills and property damage. Ouch. When you have the right car insurance, your insurance company will cover the costs for you, so you can focus on healing and getting your car fixed. To help you get the coverage you need, we created a network of endorsed local providers, or ELPs.

ELPs are independent auto insurance agents who are Ramsey trusted. That means we trust them to serve our listeners the way we would. They'll shop around with multiple companies to get you the best value on the insurance you actually need. And they'll help you understand your policy so you can feel confident knowing you've got the right coverage for your vehicle. To connect with a Ramsey-trusted ELPhost today here on the Ramsey Show. I'money Ramsey Personality is my co-host today here on The Ramsey Show. I'm Dave Ramsey. The phone number is 888-825-5225. Charlotte is in Denver, Colorado.

Hi, Charlotte. How are you? I'm good. How are you? Better than I deserve. How can we help? So I'm just calling because we are moving across country from Colorado to Iowa. And we've just put our house under contract,

and we're getting quite a lot of proceeds from the sale of our house, and I just want to make sure we're using that money wisely moving forward. Cool. You're going to buy a house when you move? Yeah, it's where my husband's family is from, so we feel pretty confident about buying in that area. Okay, good. And why would you not just use this money to buy a house so my husband's going back to school i'm finishing

nursing school he's put me through school for the last two years and now we're working on his career and he's going back to school um and so the mortgage payment that we can afford is going to be a lot less than the house that we just sold. So we're still planning on, we're about going to get about $100,000 worth of proceeds after closing costs from the sale of our house. We're planning on looking at a house in the budget of about $150,000 and then planning on putting about $60,000 down. We could put more on, but we're not sure if we should put money towards his tuition. So we have that piled up. Kind of doing other stuff, we want to pay off about $19,000 worth of student loan debt and then fill up our emergency fund so we're done with the baby steps. And I just want to make sure $100,000 just feels like a lot.

That makes sense. I like that. We just want to make sure we're using it. No, I think you pay off the student loan debt. You have the emergency fund. You have the money set aside for his tuition. No student loans. I like that. We just want to make sure we're using it. No, I think you pay off the student loan debt. You have the emergency fund. You have the money set aside for his tuition. No student loans. No future loans.

Got rid of the old ones. Got rid of the new ones. You put the rest of it on your house. Put the rest of it on your house. Yeah, have at it. And you're going to go pass your bar, and you're going to be a nurse while he's in school. That's cool. Yeah.

Wonderful. What's he studying? It's all about kids. He's going to be doing computer science to be a software developer. Oh, I love it. Okay, so let me tell you this. This was something that actually I've had the benefit of sitting by Dave off air and just talking to him as my life has grown up and changed.

I grew up and we didn't have a lot growing up. In fact, we had some seasons where things were pretty sparse. And so the idea of $50,000 or $25,000 or $100,000 was so overwhelming. Just that number was big. And Dave has reminded me just privately, always go back to the principles and always go back to the basics. So whether it's $10, $100, $10,000 or $ a hundred thousand dollars i'm still going to roll back to those baby steps and i'm going to just follow those principles line after line after line and it's just taking a lot of pressure off me because i tend to look at that number not at the ratios tend to look at that number and not at just the basic principles that are always going to work whether it's ten bucks or ten thousand kelly it

what he's saying is actually perfect because it's human nature when you get an amount of money that is the largest amount emotionally you've ever went oh my god that's a lot of money you know that kind of thing right when that happens in your spirit all of a sudden you think it's so much money the rules don't apply well yeah they do because you're going to go want to buy a Tesla, right? Because you've got $100,000. It's like the guy who got a, you know, he got a scratch and sniff lottery ticket, right, and got $10,000, and now he thinks he can retire.

You can't retire on $10,000. You goob. But he'd never had $10,000 in his hand before, right? And so he goes, oh, my God, I want the lottery. You know, no, you didn't. You just got $10,000. It's okay. I mean, the principles still lot. You know, no, you didn't. You just got $10,000. It's okay. I mean, it's just the principles still apply.

The principles still apply. And, you know, the weird thing is you'll have these emotional moments as you handle more and more and more wealth, to John's point, that will stretch you on that. I mean, I remember the first time I gave $1,000 in one single check. I remember it distinctly because we'd gotten a $10,000 thing that happened and I was tithing at the church. And I went, oh, well, I'm just a big hairy deal. You know, that's $1,000. I don't know how this place operated before I came along.

But it's just like, isn't that a load of crap? But that's just what happens. That's just the way you feel because you think that's a lot of money. And then I remember the first time I tithed $10,000. You know, and I wasn't nearly as arrogant about that. That's right. way you feel because you think that's a lot of money. And then I remember the first time I tithed $10,000. Yep. And I wasn't nearly as arrogant about that. That's right.

It was weird. Hey, Dave, I had a similar moment when I thought, look at all this I'm giving. And I just am friends with my pastor, and he's like, you know so-and-so? She's a widow, and she drops this much money every year. And I thought, oh, gosh. Just in case you thought you were flexing on my big suit and my fancy that woman god that's exactly right that's exactly right so charlotte that's human nature and so just remember the principles always apply there's three things

you can do with money you can give it you can enjoy it and you can invest it and you should always be looking at doing all three you should always be generous you should always be looking at doing all three. You should always be generous. You should always be saving. You should always be enjoying it. And what you outlined there following the baby steps allows you to do all of that. You're hitting your education goals. You're hitting your move goal. You're hitting your real estate goal.

Your debt goal. Everything. Your debt goal. Everything's going right here. So it worked perfectly. It just feels a little bit unnerving because it's the first time I had a check. That's big in my hand! That's a normal human reaction.

Congratulations, Charlie. Good for you. Way to go. Sounds like a great move, too. Kelly's in Virginia Beach. Hi, Kelly. How are you? Hi.

How are you guys? Better than we deserve. What's up? Well, I have a settlement for my minor child after a car accident that is being held in a low-interest sharing account of the court's choosing. And I want to petition the juvenile court system for access to the funds because in three years, the account that they've put it in it's only gained nine dollars oh god and she's not going to be 18 until she's six and i just really feel like something better could be done with this not whiskey but better yeah well you're right the question is can we get the juvenile court to grow a brain uh because they're so scared that the parent of the child is going to go out and use the money for cocaine or lottery tickets or something stupid,

that they clamp down on it and they get dumber than a rock a lot of times. Honestly, it's the stupidest thing. It aggravates me to no end. It's my freaking child. As long as I'm a responsible adult taking care of my freaking child, I should be able to invest this money. But the court doesn't see it that way. So it's a problem i would petition it with a financial advisor furnishing you a letter showing that this is the same set of mutual funds you would put in your 401k your honor

he says sarcastically but um yeah and so and actually a juvenile court judge is a friend of mine i mess with her all the time but um but the uh uh but you know the the thing is the you know but you need to if you go in and just like like this thing making no money i want my money that's not going to work as a petition right but if you go in with a really logical calm conservative plan and these are the same mutual funds your honor you would put in into your 401k plan and that's what we are into a 529 plan if i was going to a financial advisor so go to ramsey solutions.com click on smart investor pro find the smart investor pro in your area and they will help you

with this and then you've got at least a shot but i will tell you that what you're running into is very normal and it's frustrating as crud i've never heard that i didn't even know that they had assigned a liaison and so we started getting uh advertisements from a bank that i knew myself or her dad didn't have accounts at. So when I contacted the bank, they didn't even want it. They told me that they weren't at liberty to tell me why they were sending my daughter advertisements from their bank. And I had to go to the bank and physically speak with the manager.

And then she finally said, well, well yes we do have an account here but we can't tell you what's in it or what's going on with it you'll have to contact the courthouse and then it clicked in oh this must be the settlement money yeah yeah wow they didn't even let me know i didn't even know that this is the nanny state that has taken over parental rights from the parent is what it amounts to in a financial realm. And I'm sure that bank loves sitting on that kind of money and paying a dollar of interest a year. Yeah. They're making a killing on that money.

Absolutely. Wow. I had no idea about that. Thanks for sharing that, Kelly. Good grief. I didn't know that's how that worked. I love it. What a mess.

I love it. Oh, my gosh. Wow. You're not going to believe what's coming up after this break. I have a friend who's a celebrity that emailed me a few minutes ago, and he says, hey, can I ask a favor? I said, sure. And then I just got this scam email back. Somebody's hacked him.

Oh, fantastic. So I'm not going to give his name, but we're going to cover scam emails here coming back from the break. Yes. This is the Ramsey Show. Dr. John Deloney, Ramsey Personality, is my co-host. Open phones at 888-825-5225. Okay, so we do have a debt-free scream on hold. I've got to get to them, but you've got to hear this. So my buddy, who shall remain nameless, is a household name.

We share emails, and we'll bug each other and give each other a hard time sometimes and he i get this strange email from a minute ago and it says um at the commercial break it said hey can i ask a favor and uh normally he would say what it was right but uh i'm back so sure anything you need what do you need i help you anyway i can't you know and uh then i get this email back sorry for bothering you with this email i need to get an Apple gift card for my niece. It's her birthday, but I can't do this now because I'm currently traveling. I tried purchasing one online, but unfortunately had no luck with that. Can you get it from any store around you?

I'll pay you back as soon as I can. Total amount needed is $500. Kindly let me know if you can handle this. So the giveaway for me is none of your friends would say the words, kindly let me know if you can handle this. So the giveaway for me is none of your friends would say the words, kindly let me know if you can handle this. None of them. Well, there's that. And even my most elderly of friends,

which several would fall in that category, could probably figure out a way to execute a gift card purchase online. For 500 bucks. this guy could have had like three or four possible different assistants do it but um you know it wouldn't have been emailing me about doing it so i just emailed the scammer back he's obviously had his personal email hacked and so i just flipped it back emailed it right back and just said scam alert so i'm messing with him i should have kept him pushing it you know sucked it in i'll be

the fbi mole oh i put james child's email address on there oh is that what you did yeah that's good i could do that i could put somebody that i want to mess with kelly's cell phone you know but this guy can help you yeah that's the worst punking in the world turn somebody over to a scammer that's it oh so i guess everybody knows about the Nigerian Prince. This is the version. This is the new one. This is the new version of the Nigerian Prince.

Nobody knows about the, I need an Apple gift card. The Apple gift card for my niece. It's her birthday, but I'm so inept I can't buy it online. However, if you'll run down to the store and buy one physically for me, I'll show up and take it from you as a representative of your friend. Oh, my God. What are you, an idiot? Just kindly let me know. Yeah, seriously. Just kindly let me know. Kindly let me know. for me i'll show up and take it from you as a representative of your friend oh my god what are you an idiot just kindly let me know yeah seriously kindly let me know kindly let me know i will

kindly i kindly said no kinda kinda kindly jordan and nicole are in washington they're debt free way to go guys thank you thank you how much did you pay off we paid off 96,063 dollars in a little over two years wow way to go and your range of income during that two years 110 to 120 good what do you guys do for a living i am a pipe fitter welder and i am a pediatric nurse awesome very cool y'all have been busy the last few years both of you huh we have very much so what uh what kind of debt was the 96k it was our house. Yeah! Talking to weird people. How old are you guys? How old are you?

I'm 32. Gosh. And my wife is 31. And you have a paid-for house? Yes, sir. Straight up weird. You won! Yeah.

You just won Monopoly right then. Wow. You got a hotel on Boardwalk, man. Way to go, you guys. It's amazing. What's this house worth? The house is roughly right around $400,000 right now. And it's yours.

I like it. Y'all are freaky cool. So tell me the truth. How did all this happen? What got this started? Really, it started about 11 years ago before we got married. We took financial peace at one of our local churches and just started kind of working the program. One of the goals through our marriage was to really maintain debt-free. We did do some Dave-ish things for a lot of years.

Still, we stayed away from credit cards, but we did do, yeah, Dave-ish. And then really the last two years decided to put the pedal to the metal. And we've looked at the debt we owed on the house and said we could do this in two years. Is that what flipped the switch from ish to knocking out the house, was you realized you could do it? We committed to doing it. We committed, yeah. Well, I mean, there had to be something kind of going on.

Usually there's some kind of an event or some conversation. It doesn't just generally drop out of the sky on your head. I mean, what was the thing that went from ish to committed? I think for us, one of the biggest things was we had our third kiddo, and we have a three-bedroom house. So we were trying to figure out, well, are we going to upgrade and get a bigger house? Are we going to just commit and figure out how to all five of us live in this house? And so we made some changes and some sacrifices. We actually put his crib in our walk-in closet and and made it work so that

we all had space and we could we could live in this house comfortably and not have to um sacrifice our goal of paying it off so at that point jordan made a little um the list of our goals and there we go there it is pay off taped it in our in our closet and we just started busting it you went down to home depot and look for a room stretcher and they didn't have them they don't have that yeah yeah that's right i understand that's usually there's some kind of a series of events and you go okay instead what we're going to is we're going to knock this freaking thing out yeah yeah that's cool that's cool. That's very good. Because the way the decision-making process works that brings you up to that point of committed is an interesting thing to kind of consider when you're considering transforming your life.

Because you freaking transformed your lives. Way to go. Thank you. Thank you. What do you tell people the key to getting out of debt is. I personally think just having a plan and then working the plan was our key. You know, we had that direction. We knew what we wanted. And then, you know, we went after it by working extra, cutting back where we could,

you know, doing the budget on a monthly basis and having those conversations and saying no to three young kids, which can be definitely hard, but that was the key for us, I think. I think it's important for everybody to hear. You guys could have done what most people would do in your situation, which is to put your house on the market and go buy a bigger house that you probably couldn't afford. And I want you to know, I think you did the greatest thing you could have done for those kids, which is to keep everybody crammed together, but to let them see you struggle,

pay this thing off. And now they're going to get to live a life with infinitely less stress because mom and dad are not going to be running around trying to figure out how to make bills work they're going to be figuring out how to how we're going to spend and save and give this money away right what an incredible transformation yeah thank you well done you guys are heroes with it too they know they know that we were we've been paying off our house and especially our oldest is six and he's um he knows no credit cards and he'll see the commercials and say they're lying excellent it's pretty cool to have their involvement yeah excellent he sees a sofa commercial he starts going cheetah yeah i like it that's. I'm so proud of him. That's incredible. Pretty much. Pretty much. That's cool. I like it, man.

Let's train him early. Way to go, you guys. Way to go. We got a copy of Baby Steps Millionaires for you. How ordinary people build extraordinary wealth. How you can, too. You're on your way to being millionaires with a paid-for $400,000 house and $120,000 income and not a payment in the world, and you're only 32.

Wow! I love it. Also, copy a total money makeover. Count it down. Jordan and Nicole from Washington, $96,000 paid off in two years, making $110,000 to $120,000 house and everything. Let's hear your debt-free scream. Three, two, one.

We're debt-free! Yeah! And the chipmunk voices are joining in there That's good! Kiddos are even on the debt-free screen This is how it's done right here, boys and girls This is the Ramsey Show Thank you. Well, it's book launch week for Own Your Past, Change Your Future, Dr. John Deloney's first major publication,

A Not-So-Complicated Approach approach to relationships, mental health, and wellness. The importance of connection. The importance of dealing with the things that are in your past, not being defined by them. Learning to tell the story to yourself properly and into the future. It's a whole different thing. You're going to need this book. It's now available right now. Everyone needs to read it.

It is not a book for crazy people. If you have serious mental illness, you are going to need something different than this book or more than this book anyway. It won't hurt you, but it's not about dealing with major diagnosis of multiple personality disorder. That's not what this book is about. This book is about the rest of us who all have a journey, and if you had to have a good guide on your journey, this is the book, right? This is the guy you want, Dr. John Deloney. It's only $20 at RamseySolutions.com.

We're going to be doing two book signings. John's going to be in two different cities. This week he'll travel to Phoenix, Arizona, and on Thursday night of this week at 6 p.m. April the 21st, he'll be at the Barnes & Noble at Desert Ridge Marketplace at North Tatum Boulevard up on the north side of Phoenix. It's a great store. I've been there myself. He'll be signing books starting at 6 o'clock. Make plans to attend. Dallas, Texas, a week from this Wednesday, the next week after the book comes out, Wednesday, April the 27th at 6 p.m., the Barnes & Noble there at Prestonwood Town Center

on Beltline Road. Again, I've been there and done a signing myself, and it's a wonderful store. So make sure you make plans to come out to those two different signings, Dallas and Phoenix. And other than that, you're more than welcome always to drop by and watch the show here. Dr. John's signing books at the break just now during the commercial break out here in the lobby. We've always got 50 to 200 folks hanging out out here with the free coffee and the free homemade chocolate chip cookies made by Satan. I mean, made by. She's not Satan.

She'll kill you. She's a tempter. she's a tempter is what she is yeah so the chocolate chip cookies you smell them when you walk into our lobby smells like mama's home instead of a corporate america yeah so come in hang out the lobby in the whole uh visitor center here at ramsey's worth seeing in franklin tennessee come and make that a stop and john will be happy to sign your books if he's in town hey we're going to cause a ruckus at those uh those those book signings they've never had mosh pits there we're going to get them going we're going to have a good time at those mosh pit book signing we're going to have a good time man not one i've tried nope i've done just about

everything we're going to have a good time we're going to have a good time all right guatemala is calling jeff is on the line hi je, Jeff. Welcome to the Ramsey Show. Hi, Dave and John. Thank you for taking my question. Sure. My wife and daughter and I have lived in Guatemala for the last five years as missionaries and non-profit directors. We're now making a transition

in careers, and I've been accepted into a flight school to become an airline pilot and this school is in Phoenix. So the big transition, we're currently on baby steps four, five, and six. And our question is, we actually own a home in Colorado that we have been renting for the past five years. And we thought about selling this home and buying in Phoenix, but we were talking to our CPA and found out that

because we haven't lived in the home two of the last five years, that we are going to be paying an estimated $54,000 in capital gains. And so we just want to get your advice on if we should keep renting it out and then we would just keep renting in Phoenix, and then hope that years later we can maybe eventually make that place a primary residence again.

But it's also a hard decision, too, because with the airline industry, we don't know where we will be living in the next three years or five years. What do you owe on the house in Colorado? About $163,000. And what is it worth? About $450,000. I would sell it. Pay the capital gains, put the money in the bank, go to flight school. How are you paying for flight school? We've been saving for

years until we have enough to cash flow it very good very good so i would go to flight school and when you know where you're going to be based and you move your family to where you're going to be based after you graduate from flight school i buy a home okay and just put just park the money in a in a money market account or in a little S&P 500 mutual fund or something. But here's the thing. Your family's going through a tremendous amount of transition. You're moving from missionary to commercial pilot. You are moving from Guatemala to Phoenix.

The last thing you need is a tenant in another state. The capital gains is not going to get any better and you're not ever going to move back in that house. You're not going to be based out of Colorado with a major airline. The likelihood is close to zero. That is true um yeah that is true yeah so let's just call it tap out take your money while the while the getting's good it's a great real estate market let's get the money out and call it a day baby thank you for serving the lord man it's an interesting

transition you've been through thank you so um if we were going to like maybe buy in five years would you suggest putting that mark money in something more than a money market account yeah i like parking it in a in an s&p 500 because you're going to be leaving it alone quite a while it may not be quite five years right but an s&p 500 right you know it's a no load fund so there's going to be no commission uh like vanguard's got a good one as fund, so there's going to be no commission. Like Vanguard's got a good one as an example, okay? There's lots of them, but that's, you know, Fidelity's got one. There's two or three of them that you can get.

It's no commission, and you just park it there. And it's, you know, even if it does poorly, it's going to do better than a stupid savings account. Correct. Yeah. Correct. I mean, let's say you put $200, dollars in there and it loses a horrible amount it's the worst four-year period in a long long time and you lose ten percent of your money which by the way if you look up statistically that would be a very rare event but if you did you lost 20 grand ah whatever life goes on yeah you already lost 54

because the stupid government took it so you know i mean it's just like you know that's what you're dealing with so was i unclear okay good stuff good times gabriel is in orlando florida hey gabriel welcome to the ramsey show hey how are you guys better than i I deserve. How can I help? Well, thanks for taking the call. I just have a quick question. So I run a business, and we're a debt-free company. Good.

I've been around for 16 years. Good. And I guess the main question I have that I can't find the answer to, how do you budget companies like budgeting when you don't know what next month next month is going to bring in well you do know you've been doing it 16 years you got a pretty good idea okay don't you i mean you ought to be able to tell me you ought to be able to tell me what the next 12 months look like pretty solid if you've been doing it 16 years this ain't your first ride on the cabbage truck it's true i'm just trying to figure out like you know every year it changes though like for example yeah so here here's what

you're doing it's a forecasting method and you say okay based on what we did last year the the coming 12 months or the coming three months or the coming March or the coming April or the coming May, whatever it is, we should do something similar to what we did last May, but it could be better because of A, B, or C, or it could be worse because of X, Y, or Z. And then you make the adjustment because of that. Okay? So here's an example. Okay, we are launching Dr. john deloney's book this year

in this month so when we get to this month next year to do our budget for our publishing department we're not going to have probably a book this big in the ape in april of 2023 and so we're going to have to go oh we can't budget the same revenue because we're not going to have a book that sells this much in this month. We might have another book that sells as much in May, but we're not going to in April, likely next year. So, by the way, next year, April budget's already done and it's not got a book in it. So it's the truth. It's what happened.

Okay. So that's what you're doing. You adjust down for things that are different, up for things that are different, and then you have your projected revenues. Same thing with your expenses. You adjust down for things that are different and up for things that are different, and now you've got your adjusted expenses based on same month last year, same year last year, and then you have an adjusted profit and loss. And after doing it 16 years, you should hit within a 90 percentile,

within 10 percent of accuracy on that. That puts us, our The Ramsey Show on the books. Hey, it's John Deloney, co-host of The Ramsey Show. Did you know over 18 million people listen to The Ramsey Show every week? A lot of those people listen on one of our 600 plus radio stations across the country. To find a station near you, go to RamseySolutions.com slash show.