The Ramsey Show - App - Pay Off the House or Invest More? (Hour 3)

Episode Date: February 6, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss:   "Should I invest less to pay more on my house?"  Getting rid of a car lease, Catching up on investing, Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET 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 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods of Moving and Storage Studios, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Jade Walshaw, Ramsey Personality, is my co-host today. The phone number here is 888-825-5225. That's 888-825-5225. Starting this hour off is Lisa in Ogden, Utah.

Hi, Lisa. Welcome to The Ramsey Show. Hi. Thank you. I'm so excited to get your advice. I've been binge watching shows trying to get an answer to my question. Now I get to talk to you. Well, we'll try. How can we help? All right. 14 years ago, I joined the workforce after a divorce and took financial peace that was offered through my company. And I've been playing with it off and on and should have stuck with it because three years ago I married an amazing man and we bought a home. And I've been slamming money down into our 401k to retire in five years and just realized I probably shouldn't be doing that and pay the house off.

Okay. Do you have any other debt? We have no debt, $20,000 in an emergency fund, $100,000 IRA, $420,000 in a 401k. Our principal payment is only $1,065 on the home. So I was wondering, I've been putting in 25% in the 401k, 13% in company stock. And I was thinking maybe I better just move all that and start paying the house. Well, yeah. I mean, the way we would teach it is to follow the baby steps in order.

So you're above and beyond the 15% that we would say for baby step four. And I'm guessing baby step five isn't a deal saving for a kid's college. So after that, we're on to baby step six. And in this case, we would chunk all of that extra money onto the mortgage because we want you to have a paid off home. And then after that, think about all of the money that you could invest into retirement after the home is paid off. So what does he make? He's at $55,000 and I'm at $115,000. $1'm at 115 115 did you say yes okay so one question is i only have five years left i don't contribute i don't care okay here's what you you have more than that if

you keep working um if you're going to retire in five years that's different. But you've got $420,000 in there. When you get to retirement age, how old are you? 62. Okay. All right. So I do have the $100,000 IRA we could take out. I get it. Well, and you've got $420,000 as well. So you've got $520,000.

What's the balance on the mortgage? $226,000. Okay. With $170,000 income. So here's the thing. We know when you get to your golden years, if we named that 70 or whatever, that you want to have a paid-for house and a large nest egg both. Agreed?

Yes. We don't want to have a large nest egg and a big mortgage, and we don't want to have a paid for house and no nest egg we want both agreed yeah okay and what you're doing now is you're only working on one which is kind of what your your alarm system went off wisely so so we would tell you to put 15 percent of your income of 170 000 into retirement plans of some kind in good mutual funds. Everything above that, and so that's what? That's about $25,000 a year. Okay?

Everything above that. Yeah, it could be six or seven. Yeah. Everything above that goes on the mortgage until the mortgage is paid off, which tells me your mortgage is going to be paid off in about three or four years. You probably still work a year or two after that and max out everything. But here's the trick. If your $520,000 is invested in good mutual funds and it's averaging 10% or more, it will double without any contribution to it, any additional contribution,

it will double about every seven years. So you said you're 62, right? Yes. So you're 520 becomes 1,040,000 when you're 69, if you don't add anything to it. Wow. And I'm telling you to continue to add 15% to it and still get your house paid off in about three or four years.

And then it'll double again. That million will be $2 million seven years after that, which will be 76 years old. And all this time your house is being paid for. Oh, and by the way, we've got more money than that because you've also added over this next five years at least 15% of $170,000. So you have done a great job.

All we're doing is just tuning just a little bit, just tweaking the sound just a little so it sounds a little different, okay? Okay, great. I will do it. Yeah, you're 90% on path. All we're doing is a slight change to get both things accomplished in a sooner time. Does that make sense? Fun.

I have one more question about life insurance real quick. All right. Obviously, term insurance goes up as you age. All insurance goes up as you age. I'm paying $100 a month premium for a $200,000 policy. My husband's paying about $50,000 for a $100,000 policy. Do we need life insurance? If he dies today, are you okay financially?

Eh, I'd like for you to get that house paid off. So continue paying the life insurance. I'd probably keep it a couple more years. If you die today, is he okay? Yeah, you can make it. You got a half a million dollars, right? And an income and some equity. So you'll make it.

You're not going to starve to death. You're not going to be a starving widow on the corner, right? But by the way, $100,000 or $200,000, I'm not going to stop that from happening anyway. That's not a lot of money. But the good news is it's about the balance of the mortgage. So I might keep it for two more years till we get that mortgage paid way down. But when that mortgage is starting to reach zero,

I'm dumping it. Great idea. Awesome. I'm very excited. Thank you so much. Thank you for calling in. We appreciate getting to tune up on an old FPU grad. See, you can fall off the wagon as long as you're holding on to the end.

That's right. I mean, nobody's perfect for all the time. Sometimes you need a good kick in the butt to get yourself back on the path. Yeah. It happens. She didn't even need that. Just a slight course correction. Just a little staff.

Here's the thing. You know what the moral of that story is? Some people are doing – it's interesting. There's probably several types of people, but two come to mind right now some people are doing better than they think they're doing yes and others aren't doing nearly as good as they think they're doing that's the other time that's true so that's true there's a little bit of both there's probably a third or fourth type but at least those two come to mind right now that's what's going on no she's doing a good job yeah and uh you know a late in life

uh marriage or remarriage uh it's got its own issues own problems own processes and they've still navigated that so very well done very very well done all right open phones here if you want to talk about your life and your money the phone number is 888-825-5225. By the way, if you would help us out, we would appreciate you. If you like the show, subscribe. Click the subscribe or follow button. Leave a review, a five-star review. Mama said if you ain't got nothing nice to say, don't say nothing at all. I know, that's right.

Leave us a five-star review. And share. If you're a podcaster, a YouTuber, whatever, share it. And if you're listening on talk radio or watching us on TBN, let people know that we're here and that they can come and watch and listen and learn. Hey, you're the best advertisement we've got, and that's what we're here for, is to help you. So help us spread the word, boys and girls. This is The Ramsey Show. jade warshaw ramsey personality is my co-host today tickets are going really fast for our

building wealth live event tour we have four more stops on the tour and you don't want to miss this we're going to have a blast meeting you guys on the road signing books taking pictures answering your questions sharing all the ways you can control your money and live and give like no one else now listen uh a lot of you are doing these things. You're listening to the show. You're engaged in this process. When we come to your city, it's like your pep rally. It's your chance to come and get jacked up again.

Some of the stuff you're here, you've heard before, that kind of a thing, but it's just a review. It's a pep rally. It's your team and you're on the team. That's simple. February 16th, just a couple weeks you're going to catch me rachel cruz george camel and jade warshaw in indianapolis feb 16 all got our austin texas uh february 23rd ken coleman dr john deloney and jade warshaw and me april 24th i'll

be in salt lake city with rachel cruz george Campbell, and Christina Ellis. And our final stop of the tour is Anaheim on May 2nd with me, Ken Coleman, Dr. John Deloney, and Christina Ellis. Tickets are $49 starting there. And you can get a four-pack starting at $175, which you would pay for one ticket were you to go to a concert or something. So there you go. Come out. It's just going to be that evening when we're there. We're going to have a lot of fun together. We're going to laugh. You're going to go away going, I can do this. I've got hope. Bring some of your friends who are doubters. The tickets are

so inexpensive. People bring friends very often as a method of converting them. So here we go. RamseySolutions.com slash events, the Building Wealth Live Tour, February 16th indianapolis austin texas february 23rd 24th salt lake city of april and may 2nd in anaheim ramsay solutions.com slash events get your tickets now page is with us page is in atlanta georgia hi page welcome to the rams. Hi. Thanks so much for taking my call. Sure. What's up? Okay. So my fiancé and I are getting married at the end of this year. We're cash flowing the wedding and our honeymoon. Cool.

And we're very excited about that. He has a car lease that we need to get him out of in February of next year, and we have a couple different options for how to kind of go about that. And I wanted to see if you could help us figure out what would be the best solution. Okay. What are the options? So to buy out his lease, it's going to cost $24,000. I get a cash bonus every year through my job in February-ish, mid-February. The past

two years, it's been $15,000. So after taxes, I get 10,000 take-homes. My car is paid for, and Kelley Blue Book has it valued around $12,000. So my question is, should we sell my car to either use that as a down payment on the $24,000 and then have him make payments on the lease that he's going to buy? Should we use the $12,000 from selling my car to get him into a $12,000 car and then use my bonus that I get next year to get me a car? Or should we not put anything down to buy out his car and then use my bonus next year towards student loan debt that we have? Okay. So what is happening in February? Is the lease up? Yes. The lease expires next February. Okay.

All right. Is he over on his miles? No, I don't think so. Is he torn up the car or wear and tear? No, it's in really good condition. Okay. So that means you can toss them the keys in February. Yes.

And hand them the keys in February. Yes. And hand them the car. Yes. And you have $10,000, and he will need a car, correct? Yes. Okay. And what's your incomes? So he makes $90,000, and then I make $67,000. I get overtime, so I make a little bit more than that each year.

Okay. Do you guys, either one of you have any other debt? We both have student loan debt. Okay. How much? He has $10,000 and I have $28,000. Okay. So 38 and we need a car and we have 10,000. and we need a car, and we have $10,000. So we need $48,000, and you make $170,000. Mm-hmm. And you're cash-flowing the wedding. What are you spending on the wedding? We're shooting for $25,000.

The original plan was for $20,000, but just with prices and inflation and everything, it's gotten a little more expensive than we had originally planned. Okay. Let me tell you what I just heard. Okay. I heard that between the two of you, you make $170,000 a year. Okay. Yes.

We are planning out a whole year from now, and to be 100% debt-free and buy a $10,000 car and pay for the $25,000 wedding, you need $75,000 in one year, making $170,000. Yes. Does that not sound doable to you? It totally does. See, I think you're 100% debt he has a ten thousand dollar car and you paid cash for the wedding by this time next year yes the wedding the wedding is on november of

this year so we'll be done i know i know and so you're going to do the wedding and uh you've got that bonus coming about the time that his car goes away. So what I'm saying is by the time you get to February, the student loans ought to be gone, and the wedding should be paid for. And then when you get your bonus, he tosses them the keys, and you go buy a $10,000 car with the $10,000 of your bonus. Okay, so we should be paying our student loans now and getting as much of that out of the way as possible? You make $170,000 a year.

You need $75,000 a year to do all three things. Buy a $10,000 car, pay off the student loans, and do the wedding. Unless I did my math wrong. $75,000 will do all three of those. $38,000 in student loans plus $10,000 for the cars, $48,000. I rounded it to $50,000. $25,000 on the wedding. That's $75,000.

You with me? Yes. Yes. Jade, what am I missing? You're right on track. I think that she's still understanding what that's going to mean, which doing nothing both you and your fiance are are living on far less nothing so that you can accomplish this all this eating out and instagram life is done nothing your broke friends are going to think you joined a cult but you're going to be a hundred

percent debt free and you're going to turn in the stupid fleece car in february and be driving two ten thousand dollar cars and zero student loans and you pay cash for your $25,000 wedding. So I don't care what your stupid broke friends think. And let me challenge you on that wedding. Don't trick yourself into saying, oh, because inflation or oh, because this, it went up. It went up because you didn't say no. You got to, yes, exactly that. Like you set the budget and you stick to your budget. And if that means that you have to change plans or go with a different vendor or go a different route, do that instead of saying, well, you know, I had to up the budget because

of inflation. Just don't do that. Just set your budget and stick to it. And if you don't set a budget on a wedding and stick to it, it will destroy you. It will double. It'll double. Show enough. It's real.

It is real. So real. We had big big parties all three Ramsey kids I got married we had huge weddings I love a big wedding I don't mind people spending money on wedding if they got the money if you got the money and she's paying cash for it so I did not diss her about that but you're exactly right um that that stinking emotions, people will justify anything for one day. It's one day. And I'm all about having a good party. Oh, I am too. I mean, have a good party, but it is one day and you've got this whole lifetime ahead of you.

I don't want people going broke over their wedding or thinking it's the last time they're ever going to get to celebrate anything. You know what I mean? My husband and I got married. We paid cash for the wedding. It was a great wedding. And then on our 10-year anniversary, you know what we did, Dave? Anything you want.

We had it again. We renewed our vows and we did it even bigger. Oh, there you go. Because we paid cash for it. Anything you want. Anything you want. So that's the thing, Paige. If you add it up, $75,000 out of $170,000 in a one-year period of time, February to

February, sounds very doable to me. Very good. There's lots of room in there, but you're going to stop all your 401ks. You're going to stop eating out. You're not planning anything big. You're doing three things. Debt-free, debt-free wedding, debt-free student loans, pay cash for a $10,000 car, toss in the keys on the stupid fleece,

and don't get fleeced again. This is The Ramsey Show. jade warshaw ramsey personality is my co-host today thank you for joining us america open phones at 888-825-5225 in the the lobby of Ramsey Solutions on the debt-free stage, Craig is with us. Hey, Craig, how are you? Hi, Dave. Great to have you. Happy to be here. We're honored to have you, sir. Where do you live? Phoenix, Arizona. Oh, fun. Very cool. How much debt have you paid off? $374,408. Whoa! How long did this take? 1,638 days. 1,638 days.

What's that come out to be? A little over four and a half years, but who's counting? Yeah, okay. All right, wow. All right, man. All right, man. Oh, man. And what was your range of income over 1,638 days?

Started about $40,000, got up to about $200,000 at one point. Way to go. Cool. What do you do for a living um i own a legal document delivery business okay how'd you get your income up so far well um when i took everything over and did everything i could to drive businesses as much as i can um it worked yeah yeah it worked i i didn't hire anybody on I took the role of about four to five people I would say just worked all the time yeah like a lot of hours a lot you said when you

took everything over did you buy the business or I did I bought the business okay I worked for it for about I want to say five or six years before I took everything over mm-. Wow. Good for you. So what kind of debt was $374,000? It was a little bit of credit cards, a little bit of a car loan, and about $360,000 was the business loan. Oh, okay. From buying the business. Correct. Okay. But now it makes $200,000 a year and you have no debt at all. Yeah. Yeah. Pretty close. I have a mortgage, but that's next. Okay. All right. Well done, sir. Thank you. Very well done.

Congratulations. What happened to make you go on this journey? You know, so many people would take on business debt and just go, well, it's the business. It's not me. They'd be wrong in that. But what made you say, I'm going to tackle this? So I'd say it started about eight or nine years ago.

I was renegotiating my lease with my apartment complex and they were making it to a point where I couldn't afford it at the time. And I was thinking to myself, man, it'd be a lot easier to deal with this if I didn't have a car payment or how great would it be if I didn't even have to pay rent? It was my biggest expense. What if that didn't exist? Fast forward a couple of years and I'm delivering papers at night and listening to your show. And I learned that those things are optional.

I don't need to have a car payment. I don't need to have a mortgage payment at some point in my time. That is optional. And so I started to get a little bit more serious about it, but not super into it. I stopped using credit cards, but for the most part um didn't really create a

budget then things didn't get very serious until one night i had to fill a prescription for about 50 and i didn't have the money for it and that was the point where i decided that was it this is never going to happen again um i'm never going to worry about filling a prescription i'm never going to worry about going hungry i'm never going to worry about my rent or or or a mortgage this is over and i resolved that i was going to get this completed as fast as i possibly could that's an interesting well i mean you did you did perfectly uh but it's an interesting, well, I mean, you did perfectly, but it's an interesting process. I never thought about it that way.

First revelation was this is optional. It's not required that I stay a slave my whole life. And then you went from optional to pissed off and said, I'm not living like this. And the next step was this healthy anger yeah and so but but in order for the anger to kick in you first had to realize this it doesn't have to be this way right and then you're like no it really is not going to be this way you know it's like you there was a progression there you see what i'm talking about that was interesting very very

insightful very cool good for you man thank you. You have worked your butt off. Yeah, there were a lot of, I think 12-hour days was a minimum. Yeah. There was a solid six, eight-week period where there were 16-hour days. Was it worth it? Yeah. To not have that hanging over my head anymore is a tremendous amount of money. Why did you not drag it out three more years and just take it easy? I think you did right, by the way, but I'm just curious for other people.

So I think that would be probably the natural or perhaps even instinctual option to go with. It'd be wrong, but I'm just wondering why you didn't. Yeah, I think it comes down to my why. It's a little bit selfish, but I want to walk the earth. I don't want to be beholden to any one person or something that I don't want to naturally be spending my time doing. After doing this, I'm so guarded about my time because it's so precious. Usually, in the last four and a half years, I haven't had very much of it. So I want to spend that how,

how I want to do it. Amen. Ooh, I like it. I like it too. You're, you're speaking my language right now, Craig,

all of that. It's just, it's that, that a different sort of freedom. And I love what you said about culture is telling you, you need debt. You need this to survive. And you said,

I don't think I do. And I don't think I do. And I don't think I want that. And I just love that. So for anybody watching, tell them what's the one thing that you've learned on this journey that you've taken into your life and it's like from now on, this is that thing. What is it? Well, I think I wouldn't be doing it justice if i only said one um sorry hit me with a couple sure yeah i think the budget was pretty critical to doing everything i don't think there was a way to do it without a roadmap um i would tell people to find ways to stop trading your time for money and trade your work for money um i was able to double up on a lot of my work. It would have been impossible

if I had a finite amount of time to trade for money. And then that why, I think that why was a big driving force. Yeah. Well done, sir. Who was your biggest cheerleaders? Well, my brother and sister were there through the whole way. I inspired both of them to get out of debt. My brother is still working on it. My sister actually graduated college debt-free. She paid all in cash. Wow. She just paid off her car, so she's completely done.

Very cool. Greg, my right-hand man at the office, he was there for me the whole way. Bree, my girlfriend, is with me here today. All right. Yeah, helping me out with that. Very cool. Good job, man. Thank you, sir. Very, very proud of you. there for me the whole way um three of my girlfriends with me here today all right yeah help me out with that very cool good job man thank you sir very very proud of you you're impressive young dude well done well done well done 374 000 in 1638 days you gotta love it all right we've got the live and give bundle for you the financial or the total money makeover book a financial peace university uh membership for a year,

and, of course, the Baby Steps Millionaires book. You're on your way to that one for sure. And you'll have those to read and or give or whatever you want to do with them. Thank you for making the trip all the way to Nashville, and we appreciate getting to hang out with you all the way from Phoenix. It's fun. Thank you for having me. Very, very well done.

All right, Craig from Phoenix, Arizona. $374,000 paid off in 1,638 days, making $40,000 all the way to $200,000. 100% debt-free, except the house. Got his business paid off. It's all about it now. Count it down. Let's hear a debt-free scream. Three, two, one.

I'm dead free. Yeah. This is how it's done. Well done. Well done. Well done. I love it. I love it.

He's a thoughtful guy. He thinks differently, and I love that. Well, you know, if you don't think differently, you're not going to be different, and you don't want to be normal in this culture today. I know. That's right. Normal is broke. Yeah. Normal's broke, and we don't want to hang out with that. We don't want to be that, and, you know, you're going to be who you hang out with, so be careful about that.

Because they'll tell you debt is not optional, and he decided it's optional. That's a great word for that. I've not put that word on that. I wrote it down. I was like, that's a great word for that I've not put that word on that I wrote it down I was like that's good debt debt is optional you don't have to live like that very well played you know the other thing that's kind of going around right now is um this idea that um I don't want to work much so I'm gonna in air quotes work from, which means I don't plan to work much, or I'm going to quiet quit, or I'm going to do all this. I hate that. You know, the laziness that has become popular is quite the opposite of old Craig over here.

Yeah, it is. Craig's on fire, man. He's getting it. Yeah. He's getting it. Meanwhile, what's being lazy getting you? Never met mediocrity turning into success yet uh and this guy right here he's successful well done craig proud of you man

very proud of you this is the ramsey show Thank you. our scripture of the day ephesians 6 10 finally be strong in the lord and in his mighty power. Muhammad Ali said it this way, he who is not courageous enough to take risks will accomplish nothing in life. Well, there you go. Jade Warshaw, Ramsey Personality, is my co-host today. Justin is in Colorado Springs. Hey, Justin, what's up?

Hey, Dave, how are you doing? Better than I deserve. How can I help? Well, hopefully you take it easy on me, and I won't be a bad segment on a YouTube or something. So if you're ready, I'll go ahead. We'll try. Well, basically I'm looking to make some more money long-term wealth-wise. And I have an idea of where to start, but I kind of want to get your advice on that um so if you need me to give you some just basics i can well what's your question i mean

what are you talking about um i'm looking to build a little bit more long-term wealth and i feel like me and my wife are a little bit behind how old are you 32 oh yeah you're never gonna make it you're so old oh my gosh what gosh. What's your household income? Household income, let's see, we're about $230,000, $230,000. Oh, my. Justin. Yes. If you're not going to make it, then I'm screwed.

Well, that's mostly the wife. I'll have to give her most of the credit. But, yeah, we've just been saving, honestly, and I think it's the time in our lives where we need to start making some more riskier moves because I just looked at our statements on our savings account, and we're getting just, it's laughable, our interest rate on our savings account. How much do you have in that savings account? Liquid, we have in that savings account about $240,000.

Okay. And it's making 1% or something? Yeah, we got like $180 or $200 every month, and it's just I was trying to tell my wife, we got to do something else. I do agree that needs to change. All right. So what we teach folks, Justin, to build wealth

and to lay a foundation to build that wealth with is a process called the baby steps. That's right. Okay. So do you guys currently have any debt? The only debt we have is a $27,000 truck loan. Okay. So when we walk through the baby steps, baby step one, which you have, this is $1,000 saved. You don't have to worry about that because he got that laying around. After that, we're going to pay

off all of our debt except the mortgage using the debt snowball. You've only got the one debt, right? You can pay it off today. Pull it out of your savings. You're debt free today. The next thing after that is you're going to go to baby step three which is getting three to six months saved now in you guys's situation uh does do both of you guys work yeah we're both working okay uh solid type work or are you seasonal is there any reason that you would want six months above three months of expense no um we just had a little one but that other than that she's still working i'm working and she's a nurse practitioner, and I'm a power lineman. Okay. So for fun, let's call your emergency fund $50,000.

Yeah. Now, the emergency fund, Justin, does not earn money. It's there for protection of the things that do earn money. So you said you had how much in savings, $200,000? About $240,000 total. Okay, $240,000 total in a liquid savings. Okay, $240,000. Okay, so we just spent $27,000 and paid off your car, and then I spent $50,000 for the emergency fund.

I allocated some of that. So that's $75,000 out of that, so we're around $140,000 right now left over. Okay, with me? And you've got a little one little one now what we do after that if you've got the emergency fund in place and you're debt-free but the house then we start working what we call baby steps four five and six simultaneously four is i want you to start investing 15 of your household income into good mutual funds in retirement accounts, 401ks, Roths, Roth IRAs, with a match, without a match, whatever you've got that you can do,

up to 15%, no more than 15% going into retirement, but I want that much going in there. And so that's about out of your monthly budget. That's not out of this savings, but out of your monthly budget, that's going to amount to about $30,000, $35,000 a year, okay? Okay. And you've got a really good income. That alone, if you do that in good mutual funds, will make you a multimillionaire when you are 65. If you just do that. And we're not going to stop there, okay?

But if you just do that, you're going to be a multimillionaire. Then, once you're doing that, now we go on to baby step five, which is kids' college. Now, I would sit down with an investment professional, click SmartVestorPro at RamseySolutions.com and start a kid's college fund for your new little one, and you can throw $10,000 in there. So now we're down to $100,000.

We've already got that established, and we've already put a good amount of funds to that as well, by the way. So is that in good mutual funds? What is it called? $529,000. $529,000. But is it mutual funds? $529,000, is it mutual yeah is it mutual i'm not sure i'll have to i'll have to double check that you need to make sure it's in good mutual funds just like the 15 and baby step four is then baby step five is we're going to concentrate on baby step

six is we're going to concentrate on paying off the home next before we do additional investing beyond the 15% because when you don't have a house payment or anything, you got so much stinking money to build wealth with. It's unbelievable. Okay. So I'm going to throw that other hundred, hundred and a quarter. If you don't need to buy a car or something else out of it that you may want to set back something, if you got a purchase coming, but if you don't have a purchase coming, I'm throwing all of that at the house. What's your mortgage balance? We owe about $220, I believe, on it. Amazing.

I love this. So we throw $120 at it. We've got $100 left, and you're going to be debt-free, house and everything, in two to three years when you're 35 years old. What's this house worth? I think it was just, and this is just off of Realtor.com, it's probably not very accurate, but about $450, $460. Okay, so in three years when it's paid for, it's worth $600.

By then, what I'm outlining, you're going to have $300 or $400 in your retirement accounts. What we're outlining is going to have you have your first million million dollar net worth you'll be a millionaire by 36 or 37 oh come on i can't oh boy i thought this was gonna go downhill no this is very good justin i was worried that we weren't investing enough right now because we only have you're not okay we don't do okay you're not you need to be putting aside, and this money doesn't need to be laying in savings. But it's not something you need to go the woodshed over. You're making a lot of money, and you're not spending it all. Way to go. Yeah.

You know, that's awesome. That's the thing to my wife. Oh, that's awesome. I mean, she's awesome then. So the bottom line is you don't need money laying there like that $120,000, not working any harder than it is. I'm going to throw it at the house so it works a little harder and then let's just the next big thing it doesn't mean we have to live on beans and rice because you're doing really well but i just want you to be very

intentional any money beyond retirement beyond that 15 that you can find in your budget that you don't need to have a reasonable life before you put it into a savings account again let's just chunk it on the mortgage and finish that mortgage off. You got it. See, $33,000 a year finishes that mortgage off in three years. Okay. And you make $200 and something. That's right.

Yeah. I mean, you guys could get. You're just doing so good. Yeah. You're a YouTube cut, but it's a good one. Okay. I was a little worried. Okay. Oh, gosh. I was a little worried because I just started getting into it a little bit more,

and it's like if you're not investing when you're younger, you know. Well, you are, and all we did here is fine-tune the smart. You already had smart, and we just added the icing on the cake to make it run just a little bit smoother, okay? Yeah, and I was worried you were going to get mad at me. We did just get recently a nice, decent truck, but we call it the baby mobile. Yeah, I'm not mad at you, but never take out another car payment. Car payment is middle-class thinking.

Okay. Pay cash for your cars the rest of your life. Okay. It'll make you think about your cars different oh for sure okay awesome well that's great then i thought you're gonna pay it off today right uh yes i'm gonna go to the wife right now and tell her what you said and then we'll see what she says okay all right hang on i'm gonna send you a copy of the book baby steps millionaires because you are on track to be one very soon, my friend. That's exciting.

He's a good one. He's a good one. And I love that it's showing that it's not too late. If you're in your 30s and you're just now getting around to investing, I think you're going to be all right. I think it's going to be okay. Well, and isn't it interesting

how they were working together? Yeah. I'm not going to pay it off until I talk to her, but then we're going to pay it off. There we go. I like it. Yeah, we're not yelling at you. Nope, not a bit. You're a good one. Not a bit. That puts us out of the Ramsey Show and the books. We'll be back with you before you know it. In the meantime, remember,

there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, what's up, guys? It's Jade. Look, if you like what you heard in this episode and want to know more about getting started on the ramsey baby steps go to ramseysolutions.com and click the get started button we'll help you figure out the best next step for you based on your specific situation that's ramseysolutions.com and click get started