The Ramsey Show - App - My Parents Want Me To Fund Their Retirement! (Hour 2)

Episode Date: July 8, 2021

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Thank you. Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show. For debt is dumb, cash is king, and the paid off home mortgage has taken the place of BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thank you for joining us, America.

We're so glad you're here. Open phones at 888-825-5225. That's 888-825-5225. Dr. John Deloney, Ramsey Personality, is my co-host today. We appreciate you guys being with us. Jump in. We'll talk about your life and your money. You can hear Dr. John's talk about your life and your money.

You can hear Dr. John's show as a podcast and on YouTube as well. We put it out a couple times a week. And if you want to be a caller on that, you are more than welcome. We would love to have you participate with him on that. And you can call and leave a voicemail at 844-693-3291, or you can email askjohn at ramseysolutions.com. His show is all about mental health and about boundaries and about anxiety and about dealing with all kinds of relationship issues. And so he's here to answer your questions about that kind of stuff today as well as jump in on these other calls, and we'll just dive in and do that. But if you've got a particular question, again, 888-825-5225. as well as jump in on these other calls, and we'll just dive in and do that.

But if you've got a particular question, again, 888-825-5225. Join me right now. Heather's in West Palm Beach. Hey, Heather, what's up? Hey, how are you, Dave? Nice to speak with you today. You too. How can I help?

So we have a house, and long story short, it went into foreclosure due to some mistreatment of it was a bank of america anyhow long story short we have a modification but the interest rate is at like a five something and we have a balloon payment at the end of i believe eighty five thousand dollars and i just wanted to know would you advise trying to sell the house if I can get out of it free and clear, or should we just stay the course working to pay off the house and then deal with that balloon at the end? Well, it sounds like it sucks on the interest rate, and you've got a ticking time bomb in there. Yes, sir. Also, do you have the ability to refinance, or is your credit destroyed in this process? No, our credit is working back up.

A few years ago, we did get on to the baby steps, and we have paid off all those credit cards, and I've closed them out. We've really done an amazing job. Can you refinance the house? Yes, that was my next question. Do you want to stay? Do you want to stay? Do you want to stay? I don't want to stay, but the situation that we're in with work and everything, we need to stay. No, wait a minute.

Work does not demand you live in that house. You're allowing a lot of other voices to speak into what you want what do you want to do okay do you want to live in this house or not live in this house you are not as trapped as you think you are um i don't want to live in the house okay i don't sell it yeah sell the house it's a house okay There's another one down the street. I know. I'm just so nervous with the housing market being crazy right now that we wouldn't be able, especially where we live, houses are just flying.

They're sold left and right. Before you can even get your foot in the door to take a look, they're under contract. Okay. And you're going to benefit from that, too. That means you're going to get premium price for your house. Yeah. And if you have to rent for a season while you heal, you're not well. You haven't healed yet.

You're still scanning every square inch of your environment for somebody coming to get you. And it makes it hard to make simple decisions like, I don't want to live in this house anymore. I want to be able to sleep all night. Right? You're still on high, high alert. What's your household income? My household income is around $120,000. And how much debt do you guys have, not counting the house, left?

18. Okay. And so what would the house, how much money would you have in your pocket if you sold the house from the sale of the house your equity i'm looking at if i'm looking at you know what the payoff would be that's the problem that i'm having is i'm looking at it like 20 000 and to me i just i don't know that's scary you know well you make 120 000 a year you're 100 debt free when you sell this house you got out of a bad interest rate with a ticking time bomb in a house you don't even like. And you go rent for 24 months, let the market cool off.

You guys exhale and heal and have a good time. Enjoy your life. Save up a down payment. Pile up a down payment and go buy again. Game on. Okay. Two years from today. And me and Dave aren't that smart, and we just solved all your problems.

There's something about not letting i think most of that statement is true there's something listen that in all seriousness there's something about when you feel like everything's breathing down your neck it's hard to just get perspective yes it is and you know my my husband if i can interrupt really quick my husband has a wonderful job he loves his job immensely great um great you know so i guess we would just have to that's why we i would love to to relocate to a different you know a different state but he loves his job and i'm very happy that would be a different discussion than we've been having another conversation for another time that's a conversation you have when you know what if y'all did that leaving a rental property behind be easier that is very true so let's let's get this part straightened out and then let's make the decisions

later on his career okay do you hate the house or you just don't want to live in that town anymore you want to move away i don't want to i don't want to live in that town anymore? You want to move away? I don't want to live in the town. You know, to be honest with you, I do like the house. Is it the house? I mean, understand you're not leaving because he's got a good job. We've already established that. Right. At least now.

I love the house. I love the house and the fact that it has everything. We're short a bedroom, but that's not a big deal, you know. But it has things for the kids. Like, it has a pool. So, I mean, it is a great location. It's central to everything. I think I don't like the house because I feel this mortgage is like the gray cloud.

There you go. It's a shame factory. That's right. Okay. Well, let me, okay, let's reset then because I'm getting new information I didn't have earlier. All right. So what would happen if you refinanced and you promised yourself we're going to stay two years? I could totally do that. And do you like the house then?

Probably not. I'd probably move. after two years or now after two years i mean if we could you would move inside let's say your husband kept his job would you move inside west palm no no no no i wouldn't i i want to move so i want to move out of west so heather let me tell you this. Your husband loves his job, and he's making good money. I promise you more than his job, he wants a spouse who loves her life. And I think you'll need to have that conversation. Yeah, we're going to have to pan back and make the decision on this job and this West Palm thing, because you're getting all this confused back and forth. That's right. Every time I go around the barn, you go through a different door, which and so you just

you're circling yourself, girl. So here's the thing. If you're going to stay in the area and you like the particular home, you would refinance. Period. If you're not going to stay in the area, you would sell it and leave the area. But you've got to do something and stop standing there spinning around. Yeah, this back and forth with the husband, and I don't like West Palm, but I sort of like the house, but I don't like the mortgage. But you've got a ticking time bomb on you. You do need to get rid of the mortgage. Yes.

Something needs to happen. Sell the house or refinance one of the two. But you need to get rid of the mortgage yes something needs to happen sell the house or refinance one of the two but you need to do one of the other ever wondered how to save more money or pay off debt faster what about the right way to invest listen i've been there asking the same questions with no idea where to turn for answers. But here's the good news. You don't have to keep searching for answers. Ramsey Plus shows you every step of the way so you know what to do with your money. Get the plan and the tools you need to make consistent small wins with money and even even some big ones, so you can see exactly how you're making progress.

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With free samples, free shipping, and the new promos they run all the time you'll save even more use the promo code ramsey to get the best possible deal all right today's question comes from hannah in florida i am 21 married and a new parent to a son my parents approached me recently about funding their retirement because i quote owe them there's been a lot of damage done in the past and to be completely honest i have lost respect for them well no kidding i'm unsure how to handle this too and i just met him yeah yeah i'm uninviting them to my birthday just on this i'm unsure for you mom how to handle this and where to go with the relationship um i think the famous song says get that dirt off

your shoulder brush it off and move on i don't know what to say man um you don't owe your parents retirement god um yes there's clearly been a lot of damage done and now they're circling back for round two round seven yeah seven yeah um at this point you need to be confident and strong you've got a new family and unfortunately um the old saying goes not by your hand but in your lap somebody put a grenade in your lap and you got to deal with it and that means you've got to be the adult in the situation and 21 i think i think there's a here's our approach is dave she gets the opportunity to demonstrate how an adult handles problems and so it could be easy to say, I'm going to block them, never talk to them again. And what that does is it shoves that problem in a box and throws it in the ocean.

But it's the problem still there. I think she reaches out, probably in writing, and says, I'm not going to do this. And by the way, me and my husband have talked about boundaries. And here's how we're moving forward. This is so toxic and so gross. I don't even know what to do with it. But it is what it is, and those parents do exist. Proof you don't have to pass a test to be a parent, right?

Because some of you people would flunk! All right, now let's start again. Wow. So, yeah, pick up Henry Cloud's book, Boundaries, Honey, because you're going to have to learn to set them, and you're 21 years old. And it's not fair that this is coming at you. Your parents are weird. You don't owe them a retirement.

And what you can do is just lovingly but very strong, say, smile, calm, no yelling, no screaming, no cussing, just no, we don't owe you a retirement, and no, we're not doing that. What we owe you is to love you, and we do that. We love you, And we cheer for you. And we hope it works out for you good. We hope you do well. And we'll be cheering for you. And, you know, if you're ever hungry, holler, and we'll make you a meal. You can come over and hang out as long as you behave while you're here. That's right.

But you don't have to cut them out of your life. You don't have to hold them back. Now, I will warn you this. Okay, when people that don't have good boundaries, i.e., your parents, okay, e.g., your parents, people that don't have good boundaries, when you give them boundaries, they generally don't like it. They flip out. So do not expect this to go like, oh, darling, I'm sorry. I never thought about it that way. No, these are people that are going to go, you're ungrateful, we paid for this.

They're going to be a dadgum travel agent for guilt trips. And that's what they're going to be. So, you know, no, don't expect anything but them to go cray-cray on you. And just because something is uncomfortable or just because something breaks your heart doesn't mean it's the wrong thing. Expect them to come back and make you sad, to hurt your feelings, to be immature morons, and you still did the right thing.

Because we kind of have established that they are that. Wow. Already. I'm trying to put myself in a situation where I would... Can you imagine calling Rachel and Daniel in? Hey, guys, listen. Me and your mom did some calculations. Remember that time I bought you diapers?

You owe me. I've done the math. Remember that time I bought you diapers? You owe me. I've done the math. Remember that time I fed you? You owe me. You remember that time I, you know, just whatever, you know, did whatever for you like a parent would do? Yeah. But you now owe me. I can't even wrap my head around that conversation.

Yeah. And it's just, I'm sorry that you're going through this, Hannah. It's heartbreaking. And, honey, this is not going to be easy, and it's not going to be over quick. But the answer is you don't owe them, and you have to gently and kindly say no. All I owe you is to love you, and I will pay that debt. And she points to it.

I know this isn't the first time you've been put in a situation with them. It won't be the last time. That's why Dave's recommendation, that book, Boundaries, practice with you and your husband. Y'all come up with some rules of the road for your new family and stick to them yeah and and then you decide how much access they have to your kid because are they going to misbehave around your kid you know and that's what you're going to be facing yeah so it's it's harsh and that's what's sadness what's sadness john you have a big career ahead of you, man. There's a lot of people in America that need you.

I'll tell you what. David is in Waco, Texas. Hi, David. How are you? Good. I'm Mr. Ramsey. Hi, Dr. D. Thanks for having me.

Great. How can we help? So my, yeah, my question is, I got a house question for you guys. My grandfather did well in his career and lived well below his means. So he set up a trust account for each of his grandchildren, me included. So currently the trust account is about $1.1 million. And so one of the reasons or one of the few ways that I can use the trust account before age 40 is in buying a house. And so my wife and I are currently looking at buying a house.

And so I was just wondering, you know, how much would you spend from the trust on that house? And then also, I just wanted to confirm that you would buy that house in full using the money. Oh, absolutely. I'll pay cash for it. No doubt about it. And what's your household income? So it was $120,000 last year. I'm going to take the year off to get a master's degree in accounting, and so my wife's income is going to be $50,000.

So then once I get my degree, then it will go back up. Okay. I don't know why you have to take time off to get a master's in accounting. You can do that in the evenings. Yeah, every single one of my grad degrees was working full-time, but that's a different phone call, I guess. Here's what I would tell you. In there in Waco, you can buy a house that is $185,000 that's a remarkable home,

and then you can go bananas and buy a million-dollar house. So what are you thinking about spending? Yeah, so we were thinking somewhere, you know, I don't know, in the $300,000 range. That's fine. Our total max would be $400,000. We don't want to do more't know, in 300 range. That's fine. Total max would be 400. We don't want to do more than that. Yeah, I think that's fine. Pay cash for it.

Okay. But I'm also going to challenge you to rethink taking a year off. I think you just go to class in the evenings and finish your master's in accounting. But without getting into the detail of it, I'm just challenging you to rethink that. I'm with you. I think it'll be better for everybody. Yeah. But aside from that, $120,000, $150,000 income, $400,000 paid for a house out of the trust

makes sense. Oh, make sure you're paying yourself a house payment after that so that you become wealthy like your grandpa. That'd be a good idea. Pay it forward. This is The Ramsey Show. We'll see you next time. All right, they're here in the lobby of Ramsey Solutions on the debt-free stage. Sean and Kim are with us. Hey, guys, how are you?

Good. How are you doing? Better than I deserve. Welcome. Where do you guys live? San Antonio right now. All right. Fun, fun.

Well, good looking family. How much debt have you guys paid off? $139,500. Good for you. And how long did that take? Six months going Dave-ish and another 24 months fully focused. Got it. And your range of income during that 30 months?

About $110,000 to $190,000. Whoa, nice jump. What do you guys do for a living? I'm in the Army. And I'm a school teacher. Awesome. Very cool. Well, thank you for your service.

What caused the jump in income to almost double? School teacher. School teacher. I got a job. I was a stay-at-home mom oh you went into the workplace he was two so yes okay what do you teach uh third grade currently wow thank you for your service yeah thank you yeah i think you might have a harder job i think so not the third graders they're precious it's their stupid parents

so way to go, guys. That's incredible. We're so honored to have you. What kind of debt was the $140,000? Almost everything you can think of. So we had three car loans, a boat loan, student loan, a personal loan, two credit cards. Those were pretty big. That was about everything but medical debt and two cell phones also.

Y'all were like normal. Yep. awful yes it was man that's just amazing how long you guys been married 10 years uh 15 15 years yeah okay now now 15 but uh just a little over 10 when you did that started this thing 30 months ago two and a half years ago so 12 years yeah all right so after 10 12 years of marriage you look up and go, hey, this plan's not working. What happened? Tell me the story. Well, we've actually done this a couple of times. So like through deployments, you know, we would come back kind of free of credit card debt

and get ourselves to a comfortable place, and then we would kind of fall back into that same routine. So that was kind of a habit that we started doing. But then we got Davis a little while. He had gone through the chaplain services on post. They were offering the, was it the? Financial Peace University. Financial Peace University, yes. Yeah.

Military version has taught millions. So pretty cool. So I started taking that. And like Kim said, we had been in and out of debt. However, we never thought of paying off all the cars and having that and no credit cards at all. I'd pay the credit card off while deployed, and I'd save up some money. And then I'd come home, and I'd think about all the money that I just saved and we'd spend it all. So, for example, the last deployment I got home, we paid off all the credit card debts.

Still had all the car loan. I thought that was normal. And then I bought $6,000 worth of dogs. Two dogs. Just blew everything that we saved. Dogs? Yep, two dogs. What kind of dogs?

An English Mastiff. We were in Italy at the time. So I got an English Mastiff from Hungary and a Tamaskan from England. Of course you did. Yep. And they were thousands each. Apparently. Spent everything and then got right back into debt.

That's so much like something I would do. That's awesome. And Sharon's looking just like her. She's looking at me like, I've lost my mind. You did what? You bought dogs? Of course, they were surprises to Kim. Oh, yeah.

Wait till you hear the car story, though. Which? Yeah, go ahead. Which one? Oh, birthday present? Mm-hmm. Oh, good. Watching too many Lexus commercials, were you?

Put a big red bow on it, did you? Please tell me you bought her a Jacket. Actually, I did. Exactly. I did that one time, too. I did it, too, one time. But it was a Range Rover. Oh, wow.

Yeah, we don't go big unless we go big. This is awesome. You guys are fun. What a mess. That was our second Range Rover, though. It was. We sold the first one after we had this guy. And we bought a third row.

Thought that was better for us. Yeah, you needed one. Got rid of the first Range Rover, a third row thought that was better for us yeah you needed one yeah got rid of the uh the first Range Rover and then I thought oh she still needs one so I bought her so you're in Financial Peace University and this thing like I get it's like me with a two before smashing you in the face I guess and you came home and you told her we're gonna do it again uh yes but much different I I went through a lot of the classes that that you know I was learning all the classes that I was learning, all the things that I was learning from you,

and told her some of the new lessons that I had learned. No car debt was a big one. Cutting up the credit cards completely. I kind of knew that rule, but I just never did it. So, Kim, what was your reaction when you first saw this? Did you think it was here we go again? No, I didn't actually. We had heard about you and the programs and what we could eventually achieve.

And so I actually, it was my suggestion that we get rid of my birthday present because that was just a huge hindrance preventing us from really attacking our goals. So once we did that, that really kind of put us on a better track. So that was the probably a point of no return for me when when she said, Hey, we probably need to sell this because I was we were a couple months in this was the Davis time couple months and I was clinging on to that because it was a birthday present for

us. I felt really bad getting rid of it. I actually sold my 2002 Camaro Z28 that I had for 11 years. I sold that so I could have a little bit of cash to keep her truck. So getting rid of her truck was like the final... That's when it broke loose. We're not going back. What about the dogs? Did you sell them? Oh, we still have them. Okay, good. They're hanging on.

I'm glad the dogs made it. They're paid off. John, just so you know, John, he thought about selling you before he got rid of that Z28. He thought about it. Can I keep the Camaro and get rid of one of the three? Oh, you laugh. Yeah, the teenager could go. The teenager could go.

Keep the car, yeah. Oh, you guys. So what do you tell people the secret to getting out of debt is now that you've done it? That's a good question. I don't know. I think just basically being on the same page, having a goal, and really having a vision and sticking to it. I know personally for me it was really easy when I would look at, do I really want to shop? Or do I really want this dream house?

Like I was trying to look at what we wanted our future to look like. And, you know, after retirement, we would look at homes and I would show him all these ones I wanted. And he was like, we won't be able to afford that. And I was like, excuse me? Like maybe I don't need those shoes. So, you know, just keeping an eye on your end goal and working together. Like we always communicated about everything. We were always on the same page with everything.

So that really helped. For me, I think a lot of people say the budget. And for a decade plus, I was very meticulous with a budget. I'm that Excel spreadsheet guy who has every number accounted for and everything. It's just that I was including debt into it. So it was fine. We were on a budget, but we were still using those credit cards. So sticking to a budget and having the right budget is key.

But getting rid of the credit cards was probably one of the big things for me. I cut them all up, closed all the accounts, and I think that was the first big step, not having that safety net. The safety net was the $1,000, the baby step one, and then building that safety net, you know, bigger and bigger. So the safety net becoming cash rather than a credit card was a big. Yeah, if you have a drinking problem, you have to get all the alcohol out of the house. You know, that's what it amounts to.

And that's what you do. You finally did it. I mean, you finally took that scissors and had plastic surgery. And that was a breakthrough. That was emotional when you did that. Very good. Congratulations, you guys. How's it feel? Thank you, sir.

Feels great. Liberating. Was it worth it? Absolutely. For sure. I wish I could go back in time and kick my 20-year-old butt and have started a lot earlier. Yeah, don't we all? Yeah.

And so, Kim? Yes. Will you ever go back? Absolutely not. Will you allow him to? I don't think we'll allow each other to. Good answer. Better answer than me baiting you.

Okay. And the next time, you can just go to the pound for 30 bucks. Oh, my God. But you haven't seen these dogs. Both of them are beautiful animals. I guarantee you they're incredible. They're incredible animals. But I think I got out of the hospital

for less than $3,000 with both my kids. Just saying. Yeah, you did. All right, count it down, guys. $140,000 paid off in six months, or 30 months, rather, making $110,000 to $190,000.

Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Yeah! Yeah! Woo-hoo! Love it! Yeah! Dr. John Deloney Ramsey personality is my co-host today open phones at 888-825-5225

Steve is in Kansas City hi Steve welcome to the Ramsey show Hi there gentlemen thank you for having me how are you today? Better than we deserve, sir. What's up? I have a question about buying your car when you drive for a living at a very expensive amount of miles. How many miles a year are you driving? I drive about 14,000 a month, so I think that's right around almost 150,000 a year. Good Lord. Whoa whoa when do you get out of the car yeah you must live in the thing i i do actually when i'm on the road i i do live

in it wow what do you do i deliver uh campers from the manufacturer to dealers all across America. Okay, so this is a vehicle that has to tow? Yes, yes, those are towing miles. Okay. All right, wow. And what do you make a year? This is my first year doing it, but I'm on pace to make just under six figures. Okay. And are these contracts or as an employee

i'm i'm 1099 so it's my own personal vehicle and i work when i want to i choose where i go it's a great job but it's it's crap on vehicles yeah for sure. Okay, so you own a business. It's a one-person business, but let's put that in perspective. And part of your expense of operating your business is you destroy a vehicle once a year. Correct. And so we've got to budget that in. And so what we want to do is destroy the least number of dollars possible and still get the job done. Does that make sense? Yes, sir.

It's an expense of running a business. So what are we going to do? We want to get the job done at the least possible expense. And so I don't buy the fanciest, obviously. I buy the least thing because whatever it is i'm going to lose the money so uh do we want to you know will a ten thousand dollar truck get this job done maybe probably a twenty thousand dollar truck you don't need a thirty thousand dollar truck right well the only well the only stipulation to that that is it has to be a diesel vehicle.

You cannot be leased on with any company. You're not allowed to pull a camper with less than a three-quarter ton diesel. And new, you know, those are running 60,000 plus. Yeah, yeah. You don't buy them new. I mean, even a used one is 30 grand plus. Okay. So if you buy a $30,000 one and you put 110,000 miles on it, what's it worth after that?

Well, with the market right now, it's right around probably $20,000-ish. So it would only go down $10,000 for putting 110,000 miles on it in one year? With the market the way it is now with the computer chip issue and everything yes they're holding the value a ton not that that's not right you're wrong they're not holding you do not lose only ten thousand dollars in value putting 110 000 miles on a thirty thousand dollar truck that's just not right dude you're not operating with real information here okay that truck's worth 10 after you're done with it at most. And I know the market's hot, and I know there's computer chip issues,

and I know trucks are hot, and I know the used car market's hot. I'm on top of every bit of that. It's part of what we do around here. But I do not think that truck only went down $10,000. So the bottom line, though, is it's going to go down between $10,000 and $20,000. Well, we can agree on that. You think $10,000, I think $20,000. So somewhere in there is probably right.

And so that's what it's going to cost you every year. If you buy a 30 and you sell it for $15,000, it costs you $15,000, and you buy another 30 and you sell it for $15,000, it's going to cost you $15,000. And if you can do that every year, that's your formula. If that will get the job done and be reliable, and I think it'll be reliable, but I would try to do it cheaper. I'd try to buy a 25 and sell it for $15,000. Or buy a 30 and keep it for two years or three years.

If it's diesel and you maintain it, maybe you can put 250,000 miles on in two years and and then see what it's worth and see how much you lose but the bottom line is how can we run this formula where you lose the least money and still get the job done and don't get into the rationalization of this uh because this is a business expense that's all it is and the problem is you spend so stinking much time in it that every little thing that goes wrong with it, every little tiny thing is going to be magnified in your emotions, and it's going to cause you to lose your judgment. But just pretend like you are running a fleet.

You are a fleet manager. How can I run this business for the least possible expense thereby increasing my profit the most and so the most you ought to spend is 30 i can tell you that and i try to get the job done for less than that dave help me with this so i can imagine being a 50 year old man and i'm just making up a number on how old this guy is um I'm looking for work. I find this job. I sit down and meet with them. They map it out for me, and suddenly I'm making $90,000 a year. It feels incredible. And I take the job, and then here's all the stuff that comes with it.

I can imagine not doing the math and sitting down and saying, okay, I've got to buy a $30,000 truck. It's going to cost me $10,000 in gas. It's going to cost me $10,000 or $5,000 in eating and meals on the road. Suddenly, this $90,000 job can really quickly turn into a $45,000 or $50,000 a year job, of which there may be more locally, right? Is that a bad way to look at this? No, that's actually very accurate.

You have to run a P&L on this business. You can get real excited about this bottom number, but man. Your top number doesn't matter except to the extent it affects your bottom number. You know, and so. And it takes your soul from you that many days on the road. Yeah, you're out there by yourself a long time. You're a truck driver. Yeah.

And so, I mean, you're gone and over the road. And so, yeah, you've got the cost of the loss in value. You've got the cost of the operation. And you've got the additional cost that you wouldn't have at home for food or hotels or whatever. Now, he says stay in the truck probably. Yeah, you've got to take showers. You've got the gasoline prices, all that stuff. Diesel prices.

But you're hitting the truck stops, and that that's what he's doing but you do have to say i'm going to keep an accurate number here because you can get enamored with a hundred thousand that's right and if you don't take all these other numbers off and get down to the reality which is you know it's probably 50 or 60 grand is what and i will always want somebody to look at that against like being a manager of a fast food restaurant and make a 50 grand that's down the street from you right right? It may not have the same prestige, but, man, if you look at it on paper, is it dollar for dollar very similar, right? Yeah. And so it's – yeah. But you're self-employed, and you have to be careful.

Oh, plus you've got to pull out 30% out of all this. Oh, here's the thing, too. If you mess this up emotionally and the subject of his call, what car do I buy? And you buy a $60,000 new. Oh, man. And you turn that into $25,000 in one year or $30,000 in one year. Now you've lost $30,000. I didn't think about that $90,000.

You've got to pull $30,000 out for taxes because you're self-employed on a 1099. Everybody's got taxes. You don't have taxes either way. But you're down to six. I mean, that just feels like it goes pretty quick. The taxes would be on the net profit, not on the total. Not on the top number. But still, just the same.

You'd have to manage the taxes as well. And you do have an extra self-employment tax. You pay both sides of FICA. There you go. Because the government loves small business they love them so he taxes more that's right so uh but anyway the uh all of that does figure in but you got to be real careful because when you're that engaged in something and we run into it around here more you know the computer guys come in and tell us we need these computers

and when you're a hammer everything looks like a nail right and i'm going uh but that that's a lot of money right and it's like real money because we don't borrow money and it's like my money and so tell me again how we how else we can do that job cheaper because without doing that because this doesn't sound like minimal functional to me this sounds like you just pitched me a bentley and not a minimal car that gets job done and so um we hit you know but when you're a computer guy the answer to everything's computer yeah you know and when you're tech not when you're an audio guy the answer to everything's audio when your car guy everything let's start with bentley and work backwards when you're on the road in your car all the time and if you don't if you're not real

careful you can as a small business person, you can eat up your profits by your toys that you're buying. That's a good way to put it. That's what you're doing. That happens all the time. Do the math is what I'm saying. You're right. You're right.

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