The Ramsey Show - App - Paying Off Debt vs. Investing (Hour 2)

Episode Date: November 1, 2022

Dave Ramsey & Kristina Ellis discuss: Budgeting after moving out, Helping a family member who doesn't have life insurance, Paying off debt vs. 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 Pod's moving and storage studio, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. Christina Ellis, Ramsey personality, number one best-selling author, is my co-host today. You jump in, we'll talk about your life and your money. We help people build wealth, do work that they love, and create actual amazing relationships.

Open phones at 888-825-5225. You jump in, and we'll make this happen. Kirsten is with us in Buffalo. Hi, Kirsten. with us in buffalo hi kirsten welcome to the ramsey show hi thank you so much for taking my call sure what's up um i just wanted to start off by saying thank you because actually you inspired me to go back to church after not going for a really long time so just thank you you for that. Um, and also, so I just moved out of my parents' house. I'm starting an internship. Um, it's like my first

time being on my own and I have about $200 to my name and I need to just figure out how I'm gonna, like, I know that I need to start a budget, but I guess, like, what should I prioritize in my budget and what should I start first is kind of my question. Well, congratulations. That's good for you for moving out on your own. I know that's a huge step and it can be super intimidating doing that the first time. I can instantly feel all these feelings of the first time I did it. So, you know, I'm proud of you for getting out there. Now, have you been through financial peace? No, I haven't. I was considering possibly taking it, but I have just been trying to honestly, like, as much as possible

went door dashing earlier today. I start tomorrow at work, so just trying to get as much cash as possible, and I was just hoping to get some practical advice. Yeah, that's smart. What are you going to be making as an intern? $18 an hour. Well, when it comes to budgeting, we always say to start with the four walls, which are food, utilities, shelter, and transportation. Those are the things that you need to survive. So I would first start with budgeting that. We have an awesome app called EveryDollar. Are you familiar with EveryDollar? Yeah, I've out of budgeting. A lot of people sit down with a spreadsheet and feel like, whew, this is a lot. But every dollar, it lays it out in a way that's really easy to understand and makes it doable. Now, I will warn you, when you first do your budget, you're probably going to feel like you're failing and you don't know what you're doing. We all feel that way. It usually takes everyone

about three months to really wrap your head around it and kind of get in a groove. But, I mean, first things first, take care of those four walls and actually start budgeting. Because even if it's messy at first, even if it feels overwhelming, you will get there. You're getting 40 hours at 18? Yeah. How much is your rent? New York State taxes are kind of brutal. Yeah. How much is your rent?

Probably being more like 14 or something an hour once taxes come out. I'm going to budget for that maybe. How much is your rent? So I got into a really cheap living situation where I'm only paying like $200 a month. Whoa. One of my friends let me live in her room. Okay. That's cool.

That's a great deal all right do you have any debt no i was very lucky um that my parents helped me pay for college and everything and i contributed since i was working in high school yeah well very simplistically food is first and that's not eating out that's groceries eating out is is luxury cooking food is existence eating out is eating out is entertainment okay so food is first utilities are you paying utilities or is it included in your $200? I'm contributing to it. We're splitting it. Okay.

So that's number two. Number three is the $200 rent. Number four is you keep gas in your car so you can go to work. Yep. Okay. So now let's review. You've eaten. You're warm. Yep warm and there's a roof over your head and your car will go to work you kind of got the basics of life covered then that's the four walls christina was referring to so food shelter clothing transportation utilities these are the basics of life you probably don't need a lot of clothing you probably don't need a ton of food but you need

to budget for those things first because if you've got that taken care of your body your mind can relax a little bit and then once we've survived're sustainable, we can start thinking about other goals. But if we start thinking about, oh, I'm going to go out every weekend. Oh, I don't have any food in the cabinet. Well, that's called being a child. And sometimes 53-year-olds are children. So this is just you're asking about priorities. That's how you do it. You lay it all out.

And how old are you? I'm 20. What are you interning in? I'm a biology, a microbiology intern. Okay. And so did you do a two year? No. So I'm between my junior and senior years of height of college.

So you have one year left. Yeah. And your parents are paying for that year yes but when i i have to cover rent by myself so i'm going to try to save money beyond that so i can good idea out of the house in my own run okay good idea i like every bit of this okay cool all right so what your goal right now is, is get through school alive. That's about it. You don't need a big financial goal. And so if you pile up $50,000 in your bank account to get through school alive, when you graduate, you'll have plenty of time to do everything else you need to do.

But I just want you to finish. I want you to finish with no debt and reasonable amounts of stress that you have managed by prioritizing this. Okay, so Christina's right. Go download every dollar. Get that income coming in on that internship. She's a go-getter. Yeah, that's amazing. And even the fact that she's choosing to move out and stay, stay on her own beyond, um, beyond just the first three years of college and continue on that

journey is just proof of that. That's awesome. Well, and it's like, I was reading an article this weekend uh that that she chose she she wanted to do this so badly that she chose a way to do it that she could afford in her budget 200 bucks in a room as a roommate staying in someone's room absolutely you know um versus i need a 1600 square foot apartment with a skylight and a jacuzzi and a racquetball court and And, oh, an indoor garage. And I'm 20. I mean, seriously. We can't afford houses. Young people cannot afford houses.

It's because they think they need a granite countertop with 3,200 square feet and six acres. Give me a break. She's proof of the hustle. That's it. I mean, maybe when we're just starting, maybe it looks like we're just starting. Wow, what a shot. That's awesome. Well done.

This is The Ramsey Show. សូវាប់ពីបានប់ពីបានប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពី Christina Ellis Ramsey personality is my co-host today. Ryan is in Las Vegas. Hey, Ryan, welcome to the Ramsey Show. Hey, Dave, thanks for taking my call. Sure, man, what's up? Hey, just a quick question for you. My wife and I are in an interesting position. We're going to be debt-free at the end of this year, which is awesome. We're paying off my last student loan at the end of December. And then the situation we find ourselves in is my father-in-law is, you know, we're pretty confident he has Parkinson's.

It's gotten pretty bad. He's, you know, he's got some money saved for retirement, but there's no life insurance. There's no long-term care insurance. And I love my mother-in-law to death, so we're just kind of trying to wrap our brains around, you know, what options we might have. And I was listening to you today, and I just thought I'd give you a call and see if there's anything maybe I haven't thought of

that might be able to help with the cost because, you know, the big thing is the care piece of it, which is going to get expensive, and if there's no insurance to cover that, you know, we're just kind of curious what options we might have. Yeah. If he's got a Parkinson's diagnosis, you're not getting long-term care or life insurance. Mm-hmm. It's like you can't buy homeowner's insurance after the house burns down. And so that's what you're facing there.

So what's the size of the retirement account? My mother-in-law just got power of attorney, so she's in control of all the money. And from what we understand, we're thinking it's about a million to a million and a half. Unfortunately, there was no following the baby steps with the way they kind of handled money, so we're not really even sure what he has. We just don't want my mother-in-law to burn through all that trying to care for my father-in-law. Well, as long as she manages the budget and the process, and maybe you can help her with that, she will not burn through it. Average nursing home stay is 75 to 100k,

and the average time in a nursing home is 2.8 years. how old is your father-in-law uh he's in his 60s later later half of the 60s and with the the progression of the disease that i've seen in the three years i've been with his daughter it's i mean it's just progressed so quickly we don't know how long it's going to be it's just it's just a weird situation at the end yeah so um the uh this is horrible i'm so sorry y'all are facing this it's it's um i lost a good friend to this uh about four or five years ago and i watched him fight it for about six years and like you said it just the progression is it's kind of brutal really i'm so sorry um so um yeah i think the way she's got plenty of money she's okay all right uh and so just to be very cold and calculated for a minute i mean he's probably got a couple three years i'm not a doc what do you think

ryan you with me? Did I lose him? Well, we lost something there. Lost something there. All right, let's try it one more time and see if I can bring it. Yeah, he's gone. Okay. All right, so phone glitch or something, I don't know. So the problem with these situations is it takes a highly emotional situation

like a tragedy, like a debilitating disease, and it turns it into a – Ryan, are you there? Ryan? Three, two, one. Okay, I'm done with that. You all figure that out. It takes a highly debilitating situation and the emotional charging of that. And what you've got to guard against is allowing in your, well, Deloney said,

Dr. John Deloney says, in the middle of a situation like this, facts are your friends when you're facing a a highly emotional situation, facts are your friends. So you've got to come down off the emotion and step to the side for a second and have an out-of-body experience a little bit and then look at the math. And the math is he's in his late 60s, highly progressed. So I'm guessing, I don't know anything about this, I'm just using observation. I'm not a doc and I'm not saying that he could live 10 years for all i know but i'm guessing he's not going to and so if he goes through um if he goes through uh three years of a hundred thousand dollars a year

and they got a million and a half she's fine as long as you manage that and you don't let somebody come in and charge you three hundred thousand dollars a year for care you know that, but you can, and that can happen if you don't keep your wits about you. So the thing that Ryan can do for his mother-in-law is give her a sounding board and some accountability and I'll walk with you so that together we can all make good, wise decisions. And then if they do that, they got plenty of money. Yeah, that was going to be my question is what should ryan's role be in this because it sounds like he is a little bit worried about his mother-in-law perhaps burning through the budget but i mean should he just volunteer to help her

or what should that look like as he approaches her yeah you just you know can i please be your backup be be your uh uh you know the person that walks beside you. I love you. I love him. Obviously love your daughter. And I will walk with you and we'll use some, you know, we're going to make sure dad's taken care of. And we're going to make sure you're taken care of. And the way to do that is to spend the appropriate amount of money and no more for his care. The appropriate and no more.

Because if you do that, you're going to have plenty left over mom and uh unless some kind of weird or bizarre thing happens here that i can't see with the information i have but yeah and then this is the the reason that two things that this this call reinforces two things one is it's a really good idea to have some money when you get to your golden years a million and a half changes this equation a lot. If you told me at $150,000, this equation's a problem, right? So that's a wonderful thing that they've done. They've done a great job of building some wealth. And then the second thing it does is it says, okay, if you're worried about this stuff,

I think with a million and a half, they're okay. Maybe self-insured easy enough. But if you're worried about it, you should have had before this life insurance and long-term care insurance in place long-term care insurance if you've got under a million dollars as far as i'm concerned is absolutely vital once you reach 60 years old and i would not buy before then but um the cost of nursing home again the average stay in america is 2.8 years average cost is 75 to 100 a year000 to $100,000 a year. So you add it up. It's $250,000.

That's the average, which means that some people are more and some people are less. And you can do in-home care cheaper, and some would argue in some cases that that's a better quality of care depending on the issues that you're dealing with at home. And some people have to do that because they don't have a choice. And to make sure somebody gets high-quality care. But that's the process that we get into. Open phones at 888-825-5225. You jump in. We'll talk about your life and your money.

So, again, people ask about this all the time. Let's just recap a little bit. You can be self-insured if you can absorb a $253,000 blow and still have enough left for the remaining spouse to live on that's the big deal that's good in Ryan's situation it sounded like so his wife that's her father how does he navigate both the emotions of empowering his wife to be part of these money conversations but also the emotions of the fact that her father is going through yeah i think you just have to say it all out loud yeah you know it's um a lot of awkwardness is removed if someone just has the courage to just say it and say you know this really sucks

and my heart is breaking the only thing that would make my heart break more is if we walk out this process in the wrong way to where mom is not taken care of. So we've got to walk this out in an appropriate care for him, making sure all the while that there's money left for mom. That's so important to highlight because I think a lot of people feel uncomfortable on one hand having these health conversations and the sadness of it, but also money conversations can be hard and people kind of want to avoid some of that. So it's important to have both conversations, even if it's sticky, if it's hard, if it's emotional, these need to happen upfront. Yeah. You know, but what I found is in the years of doing financial

coaching, sometimes everybody in the room knows something is there and just saying it out loud takes the power out of it. You know, it's like they tell you this whole story and you go, hey, did you know that sounded a little crazy? you're acting crazy when you say that out loud everybody goes yeah that is a little crazy even the crazy person goes yeah that's a little crazy you know if you just if you just name it you know it's like this sucks it hurts i'm scared i love everybody it makes me want to cry every time i think about it and it's horrible and we're going to do it together because we love each other and this is called family and when you just say it we're going to do it together because we love each other, and this is called family. And when you just say it out loud, it takes some of the power out of it.

It's all the bottled up that gives it so much power. And it's still going to be a hard process. This is The Ramsey Show. are you sick of planned obsolescence you, when companies make products crappy so you have to buy more of their crappy products? Well, me too. And it's why I love companies like Grip6. Grip6 is all about quality products meant to last forever. That's why their comfortable, bulk-free belts, slimline wallets, and lightweight wool socks all come with a lifetime warranty and simple returns and exchanges. So check them out at Grip6.com today and get up to 20% off withselling author and Ramsey personality is my co-host today in the lobby of

Ramsey Solutions on the Debt Free Stage. Tim and Luann are with us. Hey guys, how are you? Great. Good to have you guys. Where do y'all live? Little Rock. We actually live in Maumelle, which is like a suburb yeah cool yeah welcome to nashville how much debt have you paid off 222 000 807 well 222 870 dollars way to go how long did this take four years and three months all right and uh what was your range of income during that time 152 000 to 178 000 cool what do y'all do for a living i'm a computer programmer my wife Right. And what was your range of income during that time? $152,000 to $178,000. Cool. What do you all do for a living? I'm a computer programmer. My wife's a medical coder.

Perfect. Good. What kind of debt was this $223,000? Oh, it ranged from a cabin, an RV, cars, credit cards, IRS debt. Student loans. Student loans. Y'all were normal. Oh, yeah. Yeah. And you decided not be normal anymore.

Sick of it. Congrats. Good. That's what you got to get sick of. Yeah. Yeah. So I'm proud of you. Way to go, y'all.

That's amazing. Four years, $223,000. Wow. Amazing. So how did this all happen? How did you decide you're going to go do the Ramsey way? Well, uh, about five years ago, I was a diagnosed with prostate cancer and I wrote my wife a note because I didn't know what would happen if I had the surgery and that kind of lit fire under her. And that's how we got started. So wait a minute.

The note says, surprise, we're deeply in debt? Or what did it say? No, it said, here's how to take care of the debt. Oh, my gosh. Here's what the payoff first. And he wrote it on a sticky note and sat it on my desk. And I was like, no, I'm not doing this. Our church happened to be offering FPU.

Oh, good. And I was like, you know what? Which is better than a sticky note. Exactly. Exactly. Yeah, and I said, let's do this. I had never heard of Dave Ramsey, and apparently he had. I had.

And he didn't say anything. I figured, well, if it was her idea, then we're going for it. So we did, and our coordinators are with us today. And then we actually joined them and coordinated the next class as a dual. And we have been FBU coordinators now for, this will be our fifth season. Oh, my goodness. Thank you. Yeah.

Wow. Well, one thing about that when you are leading a class you have to do the stuff exactly because you're totally a hypocrite exactly it makes you it makes you stay on the straight and narrow oh yeah yeah and uh and it does remind you and inspire you the people around you oh yeah right yeah because some of the people come through these classes they do some amazing things right right and another thing was that my wife was saying we're never going to retire we're going to just keep working at our desk and we'll just

die wow yeah so it it everything there were fires lit big time and i'm sorry that you had to go through this dave but thank you for god using you to share with us well thank you and we. And we thought, well, we're 55 years old at the time. I was like, wow, this is never going to happen. We're too old. It's too late to start. Well, wrong. It's not, ever. We're in our 60s now, and so you can do it.

No matter what age you're at. That is so inspiring. I feel like somebody out there needs to hear that. Yes, definitely. And a health scare, that's quite a wake-up call. Right. What happened? So you read that note.

You got on board with FPU. What did y'all do to get out of debt? What did the journey look like for you guys? Well, one of the hardest things we had to do was sell the cabin. And we still miss it, but hey, we can always do a VRBO and go to that. But we did VRBO our cabin. Then we were told we couldn't do it anymore because it was against the HOA, which they never told us when we bought the cabin.

So it was like, okay. So then we did an RV. We rented out. I'd tell you, don't ever do that because it's the worst thing you can ever do is rent your RV out because people don't care about your RV. They don't care about it, yeah. She wanted to push it off a cliff. The cliff. I wanted to drive it to Colorado and just put in neutral and go, oh.

Oh, you just went over the cliff. Call the insurance company. Right. So we did, before the pandemic, we did Lyft and Uber. And then when the pandemic hit, then we decided to switch over to Uber Eats and DoorDash. Wow. How does it feel now? That's a lot of debt to pay off.

It was almost surreal. We were sitting at Sonic getting a drink, and we made our last payment, and I started crying. Because it was like, we can't get a drink now, and I'd have to worry, you know, that it's in the budget, but it's okay. You know you're a hard drinker if you're drinking a tonic. Every day. Every day. Oh, my gosh. You guys, that's so fun.

Okay, what church was this that you went through, Financial Peace University? New Life Church out of Little Rock. It's greater Little Rock. Rick Bissette is our pastor. Oh, Bissette. Yeah. Oh, really? Yeah. Okay. He's in Ukraine right now. Yeah. He, Bazzette. Yeah. Oh, really? Yeah.

Okay. He's in Ukraine right now. Yeah. He's a great guy. Yeah. Yes. I met a bunch of those guys. That's awesome.

Yeah. Excellent. Well done, y'all. I'm proud of you. Thank you. How's it feel? Awesome. Yeah, it does.

This is our first actual vacation since we started it, and we brought our granddaughter with us, and all she cared about was hearing shopping and she's heard Dave Ramsey since she was what seven years old and kind of rolled her eyes and she would say once in a while what would Dave say you know her what would Dave do you can't do that so yes it's touching yeah it's touching so what's next now now that you don't have this major debt hanging over your head well we we are like i said we're getting closer to the age to where we can look at retirement but we've still got our house that we need to pay off and uh so we're still doing the door dash and u Uber Eats and, you know, do Instacart once in a while.

But, you know, I mean, that's also a thing that we can do into retirement that we don't have to quit and just sit on the couch or whatever. But and we can go and see family more. I love that. I love that you've like checked off this huge milestone and now you're like, okay, we're going to keep pushing. We're going to keep going. And I fully expect to see y'all here in a few years. You know it.

Screaming for the house being paid off. Yes. Well, actually, we were here last year in October. And we told them we'd be back. Yeah. And we are. So we said that our very first class in FPU that we were coming here to do our debt-free screen.

Well, we're honored. And we made it do our debt-free screen. We're honored. You're amazing. You're heroes. You're absolute heroes. Well done. Thank you. Thank you. I mean, you decided no matter, you know, whatever the obstacle, we're going to do it.

It's hard to sell the cabin. It's hard to not push the RV off a cliff. It's hard to do these things. And one thing we did, or we would say, like, be like the tortoise. Yes. Don't ever stop. That was his favorite thing. we would say, be like the tortoise. Yes. Don't ever stop. That was his favorite thing.

So I was ready to pick the tortoise up and throw it. Golly. There's a lot of stuff going over the cliff with her. I'm just saying. Poor tortoise. He's riding in the RV. Way to go, y'all. You're amazing.

Absolutely amazing. We've got a copy of Baby Steps Millionaires for you. That is the next chapter in your story, our latest number one bestseller. You are on your way to being millionaires. Thank you. So proud of you. You can get a copy of Total Money Makeover. You'll be able to give that to somebody in one of your classes.

And a one-year membership to Financial Peace University. You'll be able to scholarship somebody that needs it that way. And I'm sure you'll do that while you're leading. And absolutely incredible. So thank you, guys. We're very, very, very proud of you. Good, good work. All right, $223,000 paid off in four years and three months,

making $152,000 to $178,000. Tim and Luann from Little Rock, Arkansas. It's never too late. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! We're debt-free!

Woo-hoo-hoo-hoo! Love it! Yeah! That's powerful. Their retirement world has completely changed. So powerful. Because of the work they've done in the last four years. Amazing.

They got their life back. Sticky note to Financial Peace University. There you go. There's how you get the Ramsey way going. This is The Ramsey Show. ស្រូវាប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ព Christina Ellis, Ramsey Personality, is my co-host today. Open phones at 888-825-5225. Paul is in New York City. Hey, Paul, how are you?

I'm good, thanks. You, Dave? how are you? I'm good, thanks. You, Dave? How are you doing? Better than I deserve. How can we help? Okay, so we have a bit of an interesting situation. The last two years have been dreadful. I heard the rumor.

And we have two rental properties. My wife and I both work. And one of them was flooded back in September. It's located in a non-flood zone, so we didn't have any flood insurance on it, so we had to pay everything out of pocket. So I zeroed out a lot of our savings in order to keep everything afloat, pay the mortgage, etc. All pun intended with a flood. Okay. Exactly. And, you know, I live in New York, so we had the eviction moratorium, so they stopped paying

and I couldn't even do anything with it. So it was just a horrible, horrible mess. So we finally got a sale. We were under contract. And my wife and I were sort of at different ends of the spectrum. She wants to do a 1031 exchange and go into more real estate. I want to be a seller in this environment. I don't want to be a buyer. I don't think. I want to wait at least for some prices to come down, and I'd rather pay off some small debts that we have and sort of take the rest of the cash and just put it away and put it aside. What's your household income? Mine is like a little bit north of $100.

She's around $90 90, 95 or so. What does she do for a living? She is a project manager. What do you do for a living? And I am, I work in utilities, so I'm an engineer. Okay. All right. So some of this is personality style.

You're an engineer. You're a detail guy. And the overwhelming number of details in the crisis has gotten to you more than it did to her. And that's okay. That's just the way it is. And so what you guys just need to recognize is I'm going to send you a copy of Rachel Cruz's book. I want both of you to read it. It's called Know Yourself, Know Your Money.

Because a lot of what's happening here is not that a 1031 is right or wrong or not that taking some time off from this market is right or wrong. Either one is actually okay, as a matter of fact. But it's not okay that you can't get on the same page and that she's not hearing the amount of stress in your voice that I'm hearing. This has worn you out, dude. Yeah, I'm just really done. You're bleeding. You're wounded. We've been bleeding.

No, you're a wounded warrior right now. Yeah. And you're bleeding emotionally. I can hear it. I can feel it talking to you. Okay? And I'm not saying you're weak. I'm just saying that's a reality.

There's times in my life I got the crap knocked out of me, and I was bleeding too. So, I mean, that's just life. You just need to recognize that. And then she needs to recognize that too and not be such a player right now. This is a good time for you all to pull back and heal. So I'm going to actually take your side, but not because you're right, but just because you need to be together and you both need to be doing stuff from strength,

not when one of you is pulling the other one along from weakness. What other debts do you have? We have the mortgage on our primary residence. We have another rental property, but that's paid for by the rents that are coming in. No, it's not paid for by the renter. As you noticed, if they don't pay, you can't get them out. You still have to pay a stinking payment. That's mythology.

Yes, absolutely. That's mythology. And then we have this other mortgage, but we're under contract. Yeah, and you don't have any personal debt at all? No, not really. A personal debt? I mean, I have like a small credit card that's around $8,000. She has another small credit card that's around $10,000.

What do you owe on your mortgage? For something, $420, $430. What are you getting out of the sale of this rental? Net profit. Net profit after all is said and done, probably like $200, $250, something like that. All right. See, I want you guys to have some peace. You haven't had peace in a while.

That's why I wrote a book called Financial Peace. Two words that don't go together, like airline service. Right? call financial peace two words that don't go together like airline service right and so you guys you just you cannot you cannot run with no emotional margin in your personal finances and win long term now i'm more like your wife my wife is more like you paul on the other hand she's like slow down we got time it's gonna be okay i don't feel like doing this right now i'm kind of wounded and i'm like game on warrior mode you know and so i'm more like your wife but i can i can hear it in your voice and from years of doing what i do i've learned actually to have a little bit of empathy a tiny bit but a little bit the thing on the thing that stresses

me out is that i mean the 1031 is great because you know you defer the taxes and whatnot but the you know it's the 45 day window no no the whole freaking thing of owning rental property and being back in debt and dealing with the tenant after you just went through everything you went through stresses you out you want out of the real estate business at least a little bit calm down a little bit it's all she needs to do it's okay i would not do a 1031 i would just sideline this money for right now you don't want to jump back in you said you don't want to jump back into this market right now while it's still hot it's still hot and i i want to be a seller i don't want to be a buyer exactly and and there's a lot

of reasons for that some of them though are just legitimate emotions trauma small t trauma i mean you don't have brain damage you you didn't get you know you didn't almost die or something but you just been through crap and a lot of people have in this season you know we've been through all kinds of stuff with covid and inflation and i mean i had a little trauma when i filled up my truck i mean it's funny you mentioned that that's funny that you mentioned that because two two two uh what was it a couple months prior to this I actually went in for brain surgery whoa yeah are you okay yeah no I mean it's a recurring thing I have um I have a condition from my childhood years I have to go back every every so often for revisions and repairs.

Bad choice of metaphor then. Sorry. Okay. No, it's okay. I didn't know. So I do think that you have to, here's the thing. Personal finance is also personal, and you have to take into consideration what's going on in your life.

Brain surgery, floods, bad tenants tenants moratoriums during pandemic this has all left its mark on you and your wife again her answer is not wrong i'm actually personally doing a 1031 right now so it's not wrong okay but but it but but i got zero stress over it i It's not activating me the way you're being activated with this, and so I think you just chill a little bit. Let's pull back. I might even throw the money at your mortgage and start thinking about how fast we pay off our mortgage, making $200 a year.

Yeah, my thought is just how much less stress they would have if they followed the baby steps and worked through paying off the mortgage, and then once they hit baby step seven, invest in real estate and do it with cash that'll just feel or if the other mortgage on the rental is like 200 reach over and just pay it off on that other mortgage and then you just have your own only debt would be your home mortgage get rid of these stupid credit cards let's get on a plan calm so good steady wise and and the what happens is when we get we get all frenetic and get in a hurry and i do it too i'm the world's worst because i'm so freaking task oriented but um

but i'm you know i'm the guy that doesn't need to be telling anybody else about this but i the truth is i can i can just smell it on him. You can feel it in the air, can't you? Oh, you can feel it. My heart feels like it's like in a knot just listening to his voice and like you can feel the stress. And that's not weakness. That's just saying this is reality. It's not, you know, if you had brain surgery, you know, and you had, you know, reality is it just leaves a leaves a wound and it takes a little give yourself a little room you'll make better decisions you'll make better choices when you're

not as wired and spun up in the whole process and i'm i'm gonna take your side but not for this not for the reasons you presented but instead saying, you just don't need rental property right now. You already got one. That's probably one too many. That puts this hour of the Ramsey show in the books. Good job, Ms. Christina, Austin, Ben, Zach, Andrew, James, Kelly in the booth. Good work. I am Dave Ramsey, your host, and we'll be back. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen

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