The Ramsey Show - App - My Husband Makes Over $500,000 and Wants a Spending Spree (Hour 2)

Episode Date: October 27, 2020

Education, Home Buying, Savings, Relationships Say goodbye to debt forever. Click here to sign up for a FREE trial of Ramsey+. Here are some tools to get you started with Ramsey: Use our Debt Calculator to find out exactly when you'll be debt-free. Get the Insurance Coverage you need to protect your family, your savings, your income, and your identity. Budgeting does not have to be hard. We've made it simple with our Complete Guide to Budgeting.     If you like what you hear on The Dave Ramsey Show podcast, check out our other Ramsey Network podcasts.

🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave 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 is my co-host this hour. Open phones at 888-825-5225. That's 888-825-5225. John is in Canada. Hi, John. Welcome to the Dave Ramsey Show. Hey, Dave. How's it going? Great, man. How can we help? I got two different real estate questions for you that me and my wife are trying to figure out.

We bought an acreage a year and a half ago, two years ago. It's 20 acres, but the acreage has two homes and three barns, and we rent out all three barns plus the second home. And then when we bought the acreage, we kept the previous home, so it's a rental as well. And it sounds like I can subdivide. Our plan is to subdivide off the second house on the acreage and cut off two or four acres, and that should give us $400,000 to $500,000. And I'm just not sure, should I pay off the other rental with that?

Because that would wipe that one out because the acreage costs a lot more and has a higher mortgage. Or if I should subdivide, sell off the one, and then sell the rental at the same time and just dump it all towards the main house. The property that you're carving off and selling is next door to your home, right? Yeah, so it's on 20, it's on the houses, there's two houses on 20 acres, and so it would be two to four acres. It's contiguous property, though. I mean, it's not like a cross town.

Yeah. No, it's, yeah, I can see it's like yeah and your rental your other rental you're talking about is across town or all of them are part of this property the other one's separate completely it's in a town this one is out of town okay all right uh i mean you can do what you want to do. I have had greater peace having more dirt around me, contiguous. And so I'm dropping the rental in town personally because I would rather not have my renter next door. I'd rather keep that land next door there as a part of your property. You can always rent that property out if you want to, which I guess you already have, right? Yeah, so it's rented too exactly i mean they both they actually both get the same amount of rent like they both get so if you carve it off and sell it it's next door to you it's part

of your property if you car if you sell the other one it just helps you pay off your current your whole deal right yeah the thing is the one that we have that's in the town, that one, we bought it kind of, the market's dropped since then, and so, you know, we, jeez, I think we put 10% down on it, but right now we'd probably only get $50,000 if we sold it. Probably a good idea to sell it anyway. The other one, if we subdivided the land and cut it off, we'd get like $400,000 to $500,000. And the mortgage on the whole acreage was $880,000. Okay, there's nothing evil about it. I might do both. Yeah. Because the one with no equity is not worth screwing with.

You're not making any money on that thing. And the other one is just... Yeah, only on the principal down payment. That's it. I mean, $1,200 a month towards principal payment. That's it. Yeah, that's it. And you're not putting any money in your pocket.

And there's no cash flow, so when the heat and air breaks, you've got a problem. So I might do both if you want to. I certainly sell on the one in town without question, but now for a different reason. And so the other one, you know, if you have a big enough household income and you want to plow through and hold on to it, I would understand that. I bought the house in the few acres I just bought was part of a larger family plot that they've been breaking off. And I can tell you the folks who live around me are all related, and they don't love the fact that I'm there. And this sell-off started in the 70s.

It's not you personally. They just didn't like the idea. They don't like the idea. They still call it so-and-so's house. Yep. And so, yeah, hanging on to dirt as long as you can. If you can afford it and you can pay it off, I'm with you. That's my vision for that place is as they sell it off, I'd like to buy it from them and have that dirt next to me be mine.

Yeah. I've bought lots next to my houses and things like that just to give me buffer. That's right. And so so you know that but it that all is when i could afford it and right and it's hard if you have 500,000 bucks yeah if 500,000 help you get cashed out uh it's just it's hard to undo that one if you do that one it's hard to undo it uh it's hard to go back later and buy it back you know or you know if it was a rental out disconnected somewhere you could always go buy another rental later.

You can undo that concept. But that piece of ground is that piece of ground. It's contiguous to your home. And that's the only thing that's given me any pause at all. Open phones at 888-825-5225. Jeffrey is in Massachusetts. Hi, Jeffrey. How are you?

Good. How are you guys doing? Better than I deserve. How are you? Good. How are you guys doing? Better than I deserve. What's up? So I just have questions about college and whether or not to continue going. So come on. What's the question? This semester, I went to a community college instead of going to UMass Lowell where I spent

my freshman year. And I just wanted to save money. I kept working while I was doing that and now I was on the track cross country team so I was kind of going to school for that and also getting a degree while I'm doing that and now I'm not sure if it's worth paying to go to online classes or even just like a couple of in-person classes. How old are you? I'm 19. What are you studying to be? I'm studying business.

After school, I'd like to try to own real estate and own my own company, but I don't know what I'm doing. Yeah, I'd stay in the community college, man. Unless you just have a burning need to get out. But my colleagues across the country are facing everything from students who are living on campus, but they're not allowed to leave their rooms, and they can only hang out with that one roommate, or they've got to be masked up to go outside and be

on the grass i mean the things that you would pay for a residential college right now are in contraction that could change this spring that can change the summer this fall but right now if he could take those classes online from the other from the original university the four-year university would you recommend that if he you can afford it, yeah. But if they're going to be the same courses offered at a local community college, then, yeah, take the community college courses. So here's what you need in order to succeed in business, if you're going to start and run a business at some point in your life.

You need business knowledge. You do not need a business degree, except to the extent that you will get business knowledge in the process of getting that degree. I am 100% sure my four-year degree from a state university in business and finance has been very valuable in the operation of me growing and running this company. I know about accounting. I had classes in B-Law, in statistics. I had classes in accounting. I mean, I had classes in whatever, marketing, management. And I use little bits and pieces of that virtually every week that I did pick up in academia. It was training and knowledge in the operation and running of a business.

And so you need that. I don't care where you get it. You can get it online. You can get it, you know, with the dorm room at the four-year degree, or you can get some of it at the community college. But that's what you're looking for is the knowledge. I'd love for it to come wrapped in a four-year degree, just so you've got that, not because you need it, but because it's an accomplishment.

But the knowledge is what's valuable, not the actual degree. So that's what you're looking for, dude. Start with that and work your way into a good four-year plan of some kind. This is the Dave Ramsey Show. Families all over the country are discovering a faith-based and budget-friendly way of meeting health care costs, whether they're anticipated or completely unexpected. For example, take the Olcheski family from LaGrange, Texas. Jeff and Carice had just celebrated the birth of a new baby boy. Shortly after, they had another expensive medical issue come up. They could have faced a huge financial setback, but thanks to Christian Health Care Ministries, the Olcheskis were spared from a ton of medical bills.

As members of CHM, they're part of a group of believers who financially and spiritually support each other. CHM is the longest-serving health cost-sharing ministry and is a Better Business Bureau-accredited charity. It's Christians helping other Christians, and it shared nearly $97,000 to help the Olcheskis. To be a part of Christian Healthcare Ministries, visit chministries.org. That's chministries.org. CHM is a proud sponsor of Dave Ramsey Live Events. Paying off debt is smart. S saving and investing is smart but there's one key to winning with money that's often forgotten and that is while you're playing offense you also have to play defense you have to protect your family from emergencies there are 10 kinds of insurance coverage that are good that you really might need based on where you are, which life stage you're in.

And we've built a tool to show you what coverage you actually need to add, drop, or adjust. It's free. It only takes five minutes. We'll even rank your to-do list by importance and email it to you so you can get your plan in place fast. It's called the Coverage Checkup. And I mentioned to you that it's free. It could be the most important five minutes you spend today. Donald from our Facebook community wrote, for anyone who's not completed this checkup, do it now.

You never know when something will happen, and you never want to leave your family in a bad situation. So get out your phone, text CHECKUP to 33-789. Take the five-minute free coverage checkup. Text CHECKUP to 33789. Dr. John Deloney, Ramsey Personality, is my co-host today. Olivia is with us in Orlando. Hi, Olivia.

How are you? I'm good. How are you, Dave? Better than I deserve. How can we help? So I'm 23 years old and I want to stop paying rent and buy a house, but I also don't want to go into debt from buying it. So I have a roommate that would help me with mortgage, but I don't want to depend on her to keep paying me. And a lot of the houses I like, I don't have quite enough to put 20% down, but my parents offered to help me.

So I was wondering if now would be a good time to buy or if I should, you know, with their help, or if I should wait and save a little bit more. How are they going to help you? What's that mean? So they would help me. So right now I have enough saved up. They're going to give you some money?

Yeah, they would give me enough to be able to put 20 down not alone uh well i would probably want to pay them back i would probably not want you to pay them back i don't want i don't want you to be in debt to your parents it ruins all corners of your relationship when you owe them money. Right, yeah. I mean, they've offered to give it to me, but I don't want to. Are they control freaks? Are they going to hold it over your head that they gave you this? Yeah, that was a yes.

That's a super yes. That's right. Yeah. Okay. So, okay. How old are you? How old are you? How old are you? I'm 23.

How much money do you make? I make $69,000 a year. Good for you. Okay. So in order to put 20% down, how long will it take you if you do it on your own? I'd probably have to save up maybe like another year. Okay. What's wrong with that?

Nothing. I just want to buy a house now. I mean, the interest rates are good, and I didn't know if it would be a good time to buy. I understand. I want to go to Grand Cayman, but they're not opening it. They closed it for coronavirus and just told me I can't come. Yeah. So, you know, you want a lot of things you don't have the money you don't have

the ability to do it that's i want a new car too it's gonna take me about a year yeah i'll take you about a year that'd be nice yeah but you can't go get one today because you work here and if you get a if you get a car payment i'm gonna fire you that's right so there you go so we're in this together olivia we're together uh yeah make a make a plan and for a year stick to it get that 20 and you're going to be glad you did you don't want to owe your parents money that just run it together uh yeah make a make a plan and for a year stick to it get that 20 percent and you're going to be glad you did you don't want to owe your parents money that just complicates your relationship listen if they if you can't get a gift from them and it not be screwy god forbid you take a loan from them yeah at least a loan from a bank has rules associated to it when they're

from your parents whoo they don't question your biscuit recipe like mom does so yeah i'm it sounded like the way you paused there was a lot in that um that came out there that you really need to just do this on your own and that's cool and there's no harm in that and you're going to feel really good about yourself a year from now because you set a goal and you progressively incrementally attacked it and hit it. And, you know, buying a house at 24 versus buying a house at 23 has never kept someone from being a millionaire. Right. Oh, you wasted that entire year. That just doesn't come up mathematically.

It just doesn't work. Okay, so you're fine. You've got plenty of time. You're not asking me if you should wait 15 years to buy a house. You're asking me if you should wait 12 months, because that way you can do it on your own, and I would. Help me with this, Dave. There is the interest rates have fallen through the floor. Yep.

Right? Yep. And so I'm hearing this pressure of people my age that you've got to, got to, got to, got to. All ages. Always has been. And I remember when I bought my first house in the early 2000s at 6%, and I was complaining because my buddy got a 5 and 3 quarters, and an adult with us said, y'all shut your mouth, because my first house was in 78 at 12 or 15 or 18%.

78 was 12. And so is it wrong thinking to think, you know what, they're at 2.25. They're ridiculous. The other side of that fulcrum is when it goes up, people will stop moving so much. The prices of houses will, there's going to be a balance there. And if you end up buying a house in a year and it's back up to three and a quarter or four and a quarter. Zippy. You're not getting hosed.

Yeah. You still won life right it's not in the likelihood of it moving two full percentage points in 12 months that's that's catastrophic right almost historical right you know and by the way it wasn't 12 of 78 it was 10 i just remember okay because i passed my real estate license in september 1978 and a month later it went from nine and three quarters to 10 for the first time ever wow and people thought it double digit mortgage rates that was it jesus is coming back uh the world is coming to an end it's apocalyptic right and they were wailing and gnashing of teeth in the real estate business

and that's it it's all over inflation is killing us and we're never gonna be able to buy a house again it proceeded from 78 to 82 to go to 18 that's right under jimmy carter thank you very much and i'm trying to sell real estate in those days in college trying to get through school and uh then i came out of school i'm selling houses at 14 fixed i sold 78 houses that year, 22 years old. And there were these brand-new things that came out. If you didn't want to pay 14, they had these new ARMs, Adjustable Rate Mortgages, 1983, 12%. Big difference.

And so when it broke back down into nine, I on the radio by then and i'm going you people have no idea nine is amazing it's been all the way back to the houses away back to 78 when they saw that last you know and and uh now and then now people are doing it this has always been this conversation and people have always bought houses we could not get people out of the parking lot of this model uh the parking lot was jammed in this model set in 1983 and rates were 14 because they were down from 18 and there was all this pent-up demand of people that hadn't bought right and they're like oh god rates are finally coming back down the parking lot was so full on sunday there'd be 60, 80 people coming through the houses at one time. It was like something on a movie.

Yeah. You know? That was at 14% interest. Wow. So you're going to be okay. That's right. You're going to be okay. So follow the plan.

Do it right. The difference in two and three. Do it right. The difference in three and six, zippy. That is not going to change your life. What is going to change your life is making good, solid decisions, being wise, putting a 15-year fixed in place where the payment's no more than a fourth of your take-home pay, putting down a good down payment and avoiding the PMI, which is what she was talking about doing, avoiding the private mortgage insurance with a good 20% down on a Fannie Mae loan.

And you've got to plan then to pay off the house. The point is, where are you going to be 10 years after this, not 40 years after this? You're not taking out a mortgage for 80 years. You're taking it out for 10 on a 15-year schedule because you're going to pay it off because you're listening to us. So it's really because the interest rate almost becomes irrelevant. Doesn't matter. Pay it off. That's right.

Because it's not over that long a period of time to where you add up and you go, that's like $600,000 in extra interest I paid. Yeah, because you kept the mortgage 42 years, you idiot. You know, don't stay and keep paying the money. Get it paid off, which is what Olivia would do. That's exactly right. Yeah. Good for her.

Her mortgage is a temporary thing. It's a passing through thing. And that's the only reason I don't yell at people about getting a mortgage like I do a car payment or something else is that. But you're right. There's this perception. And going back to a little history lesson there is good for folks to remember that, you know, if a quarter of a percent ruins your real estate deal, you shouldn't have been in it in the first place. You should not buy that house. That's right. You already couldn't afford it. It's the old joke. You know, if you have to ask how much you can afford it, you know, that kind of crap. But it really is a little bit of that. This is The Dave Ramsey Show. So you're in the middle of a big event tomorrow night.

That's right. Big know-yourself, know-your-money live stream tomorrow night with Dr. Henry Cloud, you, Ian Cron from the Enneagram. Lots of smart people on there. Oh, and Rachel Cruz. Hey, listen. There's these moments when I'm driving home and I think, this is surreal. You've got Ian Cron that's just a savant. You've got Henry Cloud that is just the master.

You've got Rachel who's been doing this for years and has walked alongside countless people. You've got my knuckle-headed butt going, hey, everybody. And you're the only one with two PhDs. I'm the only one that kept going to school because I didn't have any friends, right? So, man, it's going to be a cool live stream event. I'm looking forward to it. Know yourself. Know your money.

Tomorrow night, it's $15. It's a live stream with Dr. John Deloney, Dr. Henry Cloud, Ian Morgan Cron, author of the bestselling book on the Enneagram. And, of course, Rachel Cruz. It's her event talking about the subject matter of her upcoming book that will come out in January. It's on sale now. Know yourself. Know your money. You know, psychology, your strengths, your behaviors, under the hood of your life is sometimes the money problem is not a problem.

It's a symptom of something else that's going on, and you guys are going to dig into that. If you keep asking yourself, why do I keep doing this? Why is this still a temptation? Why does my husband keep doing it? That's what this book is for. It's a superb book, and that's what the event is to dig into. So tickets are on sale right now. They're only $15.

Thousands have already registered. If you would like to get the book, go ahead and pre-order the book. You can get the whole package for $25. That means you got the book for $10 and the live stream for $15. That's a good deal. Go to DaveRamsey.com, register right now, and we'll see you tomorrow night, October the 28th, for those of you who catch this at a later date for some reason or another. But it's October the 28th, a Wednesday night, the live stream, first time we've ever done

this content with this group of people, very smart people on this. Rachel, two times best-selling, number one best-selling author. Deloney, two times doctor, two times PhD. Dr. Henry Cloud, millions and millions and millions of people helped with boundaries. And he's got boundaries for chihuahuas. He's boundaries for everything boundaries for teenagers boundaries for mother-in-law he's done a boundary for everything and and he's uh he's a good friend of all of ours and would love having him on this event and ian cron lives right here in our neighborhood has become a friend and his wife ripped the house for dinner the other night on the enneagram book and just incredible

these guys are the best of the best and it is worth your time. You're watching stupid butt stuff on television that doesn't change anything. Turn that thing off and turn on this live stream. Know yourself, know your money. Wednesday night, October the 28th for $15. You can register right now at DaveRamsey.com. Garbage in, garbage out. What are you putting in your brain tomorrow night what's

going to be on the tv because i i know some people are just glued because it's election season and everybody's glued to every little nuance of whether hunter biden went to the restroom or not and you know um who even cares who hunter biden is but lots of people do and so um that you know and what happened in texas and what happened with the crazy governor in michigan and what happened with this and what happened with that you're watching too much of this stuff here's the deal not one person in the united states is sitting right now dave going i just don't know which one it's gonna be you already know you know so stop this is like this is like heading to your wedding and you're still thumbing through all your old girlfriends in your phone.

You're getting married. You said you'd be there. You already know who it is. Turn it off. How is it possible to be an undecided voter this week? Turn it off. Turn it off and move on with your life. And read something that has nothing to do with this stuff. Or for $15, log in to hear four people who quasi know what they're talking about

and start living into the life that's going to come after next Tuesday. Tuesday is just the beginning, folks. Then it just starts, right? God almighty, you're getting me all fired up, Dave. There it is. Turn it off! Turn it off! Throw a brick through your television, unless you're using it to watch the live stream.

Yes. With your Apple TV. There you go. There you go. So, man, it's amazing. I don't know, man. Who am I going to vote for? I just can't figure it out.

Sharon and I sat down Sunday night, and we had a minute, and she said, hey, let's watch a movie. We haven't done that in months. Yeah. You know? And I thought, okay. So I just pull up the cable thing, and I kind of sort of know how to work it and pull up the menu and i don't recognize any of the on-demand movies none of them none there's a trillion none of them and i'm like i i'm gonna spend an hour and a half trying to figure out what to watch for an hour and a half to heck with this i just turned the thing

back off picked up a book but But, oh, my gosh. That's what's going on in this world today. David is with us in Spokane. Hi, David. Welcome to the Dave Ramsey Show. Hi, Dave. Hi, John. My wife and I are on Baby Step 7, and we're feeling gazelle intense about investing because I have schizophrenia, multiple sclerosis, and type 2 diabetes.

Wow. You've got a couple of everything. Yeah. Yeah. I've got a whole country song in me. Very cool. Anyway, so we're wondering if we should draw down our emergency fund, which is about seven months of expenses, to invest more or keep it where it is in case I'm unable to work for a while. Keep it where it is. Absolutely, 100%. Which one? Keep it where it is? Keep it where it is, yeah.

Okay, great. I mean, you know, we're joking about this, but you've got some serious things you're facing. And so, you know, the joke line is you're an emergency looking for a place to happen, dude. I mean, you know, so, but that's being mean. I'm just being smart-aleck with you. But the truth is, I mean, type 2 diabetes in and of itself is you've got some serious issues there

and some things that are a little scary from time to time, and you need some extra money you can lay your hands on just for that, and that's what that emergency fund is for. Or if you have one of the other issues that you're facing, something crops up and you need to stop a minute, like you said, and maybe take a little time out from work and address one of those things to get your health back. You've got to do that. Hey, David, I would actually, and Dave, we can talk about this together.

I would actually suggest you have more money in your emergency fund given the nature of your three challenges because you've got challenges that are both acute, right? Your schizophrenia can set off. Your type 2 diabetes can flatline you one day, and they're both chronic. So you know they're going to be ongoing. They're going to continue, and there's going to be seasons where you're low, seasons where you're struggling. And so having some cash on hand is going to be key.

Cash gives you – it's the pillow yeah that you land on right it's the uh the net that you jump into when there's a fire and you know those little firemen hold the net at the bottom you know and jump you know yeah and you know it's the safety net that's what we call it right and so uh it gives you comfort and here's the interesting thing when you're dealing with mental health things oftentimes that extra margin that kind of feels mathematically wasteful actually helps you calm and have some because you've got some in the financial portion of your life you've got peace it allows that peace can gravitate into some of the other areas and help you with some of the other areas that's right yeah it's i would stay liquid obviously you have to have a long-term plan, but yeah, I think having some security there

and to be secure for his wife, too, right? She's going to like that piece as well. She's going to like the feeling of that, knowing that her husband's facing all these different things. Yep. No question about it. Grace is in Phoenix. Hi, Grace.

Welcome to the Dave Ramsey Show. Hi, guys. I'm so excited to talk to you. You, too. What's up? So, we've been doing some work to talk to you. You too. What's up? So we've been doing some work while we've been stuck in quarantine. We have paid off all of our cars.

We paid off all of our credit cards, and we've saved $293,000. Fabulous. What a great year you've had. Yeah. So my husband, he got laid off from a company he'd been with for a few years, and we thought it was going to be detrimental with everything going on. But we learned early on to just kind of trust God. Something better was in the works, and he got a new job with a company, and he was making $60,000 with this old company,

and he's already made gross $500,000 this year. Holy crumole! That's amazing! So we have been stacking it away, and so my question is this. Hey, let's do this. Hey, I'll tell you what. Hang on. I want to hear this question for sure.

We're heading into a commercial break, and we're obviously not going to be able to give you an answer in 13 seconds. Yeah, I've got to hear this one. Yeah, really. Wow. This is the Dave Ramsey Show. Thank you. Dr. John Deloney, Ramsey personality, is my co-host this day here on the Dave Ramsey Show. Open phones at 888-825-5225. We're talking with Grace in Phoenix.

Her husband lost his $60,000 job, which is the best thing that ever happened to him because he proceeded to go and make a half a million dollars in the coming 12 months. So it turns out whatever he's doing, COVID has been good to him, and we'll take it. Congratulations. Well done.

So I'm going to guess and say you guys have lotto-itis, like you just hit the lotto. A little bit, but we've been living below our means for so long and trained ourselves for so long that nothing really has changed except for when I log into my bank account. I'm like, oh, look at that. So you're still living on $60,000? Yeah. Roughly. Okay, good. Then I was wrong.

I like that. Good. So did you pay off all your debts? Okay, so this is bringing me to my question. What we have left is my student loans for my nursing degree. I have $40,000. That's the only thing that we have not paid off. How much is in the checking account? $293,000. You told me that earlier. Yeah. Okay. So why haven't you paid off the student loan? Because, so it took me quite a

few years to get my husband on this train. Do you like your student loan? I don't like the loan. I hate it. Well, then write a check tonight and pay it off. I don't need to be on a train. This is ridiculous. You have $293,000, $48,000, and you're debt-free. This is just instantaneous.

Why would you not do this? Does he like your student loan? It's like now that the mortgage paying off is within his reach he's like let's just do that out of order oh and then we'll go back and pay it off okay now that's at least a little bit logical okay okay so how much is owed on the mortgage stop how much is owed on the mortgage what 320,000 okay and so how much is he making a month right now still making 50 grand a month um some months it's a lot of it is his incentive and it's however much he works but it's slowing down so like last month it was like 15,000 was his incentive so it's starting to slow down now that they're getting caught up at his work.

So it might be a few, two or three months, I'm thinking, until we have the mortgage paid off. Okay, so let's establish this. September, easily, the mortgage and the student loan are both gone. Can we all agree on that, including your husband? Yes. Okay. So the only question is the order loan are both gone. Can we all agree on that, including your husband? Yes. Okay. So the only question is the order between now and September.

Is this the big question? Right. Should I just let it go and let him have that win since he's been doing so good? It's not going to do with him being good. Pay off the student loan, pay a bunch on the mortgage, and then finish the mortgage off by September. Okay. It's September. Okay. It's September.

I've just never seen him gazelle in tents before, so I didn't want to stop him. It's not 2026. It's September. And in February of this year, this wasn't even on the table. This didn't exist that y'all would pay off your $300,000-plus mortgage, right? Right. That was not even-plus mortgage, right? Right. That was not even in the realm, right? So don't get carried away.

Y'all are so close, man. Congratulations. Don't do this in the wrong order. But here's what you do need to do, okay? If I woke up in your shoes, if I came to your home tonight, we got out some coffee and a yellow pad, and the three of us sat there and talked, I would have you write a check while I was sitting there and pay off the student loan i would have you write another check down to a fully funded emergency fund of three to six months of expenses and put the rest of that

on that mortgage right now tonight and then that's going to leave you 50 60 000 bucks or whatever it is on this mortgage 80 000 bucks on this mortgage000 on this mortgage, and every month you're going to chunk on that remaining $80,000 until it's gone, and it's going to be gone before September likely, but by September for sure. Okay. But I wouldn't leave that money sitting in that checking account. That's how boats just find their way into your backyard and new Tahos find their way into your garage and all that kind of stuff. That's exactly what happened.

It was my birthday a couple of days ago and he went and bought a can. Am well, it's only on order at this point. He can still cancel it, which I I'm like, thank you so much for the $30,000 gift, but we're so close to paying off our mortgage. You bought a $30,000 side by side.

Not me. I know. I know. You bought a $30,000 side-by-side. Not me. I know. I know. It was a surprise. Yeah. Yeah. It's not a good plan. Okay.

But I get the excitement. I get it, man. I actually just bought a side-by-side a few weeks ago. They're absolutely fabulous. I've got one on my farm. I'm having so much fun with the thing. I want you to get one of those after the house gets paid off. Okay. having so much fun with the thing i want you to get one of those after the house gets paid off okay and it may or may not be thirty thousand dollars when you do it good god is this thing cold-plated there i actually did buy that brand well but yeah it's um and it's a wonderful vehicle

but now you don't do that you don't do that while you have an emer you don't have an emergency fund. You don't. And you won the lottery. It is a little bit of lotto-itis. It is. The Can-Am's a little bit of lotto-itis. And the money sitting in the checking account and just kind of feeling like I'm rich. Yeah. Because I haven't really written the checks for the stuff I know that grownups. I could pay it off.

I'm not going to. Grownups need to do this, but I haven't really written those checks yet. So I kind of feel like I'm rich. And you're really not because you've got all this debt that's more than the amount in your checking account but you kind of feel that way that's kind of a lot of items that's right that's kind of like uh and what one of the things that it's uh wealth gained quickly is dangerous absolutely see that with music people with with athletes. We see this with, well, somebody whose income just shoots up for whatever reason. I would go as far as say it's anything that you get quickly.

If you get leadership, all of a sudden it gets dropped in your head. Something big. Of value, yeah. Something big, and you don't incrementally gain it it has um you have more of a tendency to kind of be in awe of it a little bit and um it's like uh you know like a lady was interviewing me for a stupid article that i shouldn't have done a while back and she's like did you ever think you were going to get here i'm like yeah i had no idea how much work it was going to be right you know 30 years later i'm an overnight success right but uh what i didn't know is how much work it was going to be

but did i know there's a bunch of people in debt that i can sell a book on how to get out of debt too yeah i mean me and jenny craig got a big job in america there's a lot of market here so we're gonna you know did i ever think of course i thought but i had no idea how much work is going to be and so i never wake up and go wow how did that happen like it was all surprised because it was so gradual right and so incremental over a 30 year period of time i mean i walked through this building and i'm like good lord this really happened right i mean you have those moments but then i also kind of yeah i know exactly how it happened right you know it was god's blessings and our hard work and along the way you gather wisdom you gather people that walk alongside you say hey man don't do that i made that

mistake do this right don't trip over that that's a trip wire right there don't do that yeah don't step in that you're gonna that's gonna that thing's gonna bite you don't do that yeah so grace you you guys have had a wonderful year do not let the two-year-older version of you hate the the 2020 version of you because you misbehaved with this. And the Can-Am is straight-up misbehavior because it's symptomatic of what's going on. If you told me you could pay off your house and you could have your emergency fund in place and you could pay off the student loans and buy the Can-Am, I would tell you to buy the Can-Am. The in and of itself, the purchase of the item is not a bad thing.

It's the place in the order that you're doing it, what that's saying about your heart's, your husband's in particular, in this situation. He's having a woo-hoo moment. But he could also be having this, Dave. He could also be having, I've never been able to provide for her like I wanted to. Yeah. It's still a woo-hoo moment. It is.

But, man, it's like. Could have bought her an eight-carat diamond ring to say I love you. You know, he could have done whatever. All those things. He's still fought. It's not a. He's not being selfish. Right. He might be, but he may be.

Yeah, maybe he really wanted a can of M. That's right. That's right. The little boy that bought his grandmother a Tonka truck for Christmas. I know what a great guy, right? Yeah. But I've been that guy. Hey, honey, look what I just bought you.

Yeah. But the, but I think he just was woo-hoo. Yeah. I think he's just, my God, it's been awesome. I'm just going to buy some crap. Finally. Yeah. Finally.

And I don't have to think about it because I got that money. Yeah. But you don't really. Not once you've done smart stuff to it, there's none left. That's right. So then later on, you can buy the can. Live like no one else, so later you can live and give like no one else. No discipline seems pleasant at the time, but it yields a harvest of righteousness.

Dr. John Deloney, my co-host today here on the Dave Ramsey Show. Have a friend or family member that needs a daily dose of Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money in under 10 minutes. Check out the Ramsey Call of the Day podcast wherever you listen to podcasts.