The Ramsey Show - App - QUIT Making Impulsive Decisions, You’re Going Broke! (Hour 2)

Episode Date: January 30, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss: What to do with a home when you move, Why you're always going to be broke until you stop making impulsive money decisions, "Can I afford a $130,000 car?". 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, moving, and storage studios, it's The Ramsey Show, where America hangs out to have a conversation about your life and your money. I'm your host, Dave Ramsey, with Jade Warshaw. Ramsey Personality is my co-host today. We'll be taking your questions at 888-825-5225. You jump in and we'll talk.

888-825-5225. Sean's in Wichita Falls, Texas. Hey, Sean, how are you? I'm doing good. How are you, Dave? Better than I deserve. What's up? All right, so about a year ago, me and my wife, we were expecting our second child. So we sold our house and upgraded just to a little bit bigger of a home for our growing family. And so now, you know, with everything being kind of a buyer's market and all, I am actually relocated or relocating from my job.

And so we don't know how much equity we would actually get. We've talked to some realtors and feel like we would probably maybe just get back what we put in and didn't know if relocating, if we should rent out our house or if we should just go ahead and sell it, even though we may not get much back. Where are you moving to? Abilene, Texas. How far is that from Wichita Falls? It's about two and a half hours. Yeah. I want to circle back to the part where you have real estate agents telling you your house has not gone up in value and that this is a buyer's market. It's not a buyer's market. It's a seller's market.

There's a shortage of inventory. The white-hot sales of 83 offers over the weekend are gone, thank God. But houses are selling there are more buyers than there are sellers which by definition makes it a seller's market the rate of sale the number of sales is slowed because some people are sitting on the sidelines in terms of buying but your house has not dove in value when did you buy this house we bought it um just about a year ago february uh 2022 okay you might not make enough in one year to cover the expenses you might come out less than you out of pocket and what what you put in you might not get all of that back out a net of expenses because the house would have had to go up 10 percent in value to cover expenses

one year later okay so it's in a normal real estate market selling a house one year later is unusual to make money in a normal market. Okay, and that's more what we're in today than we were 18 months ago, 24 months ago. This is more of a normal market in terms of the rate of time it takes to sell the house and so forth. So that does, I'll back off then and say your real estate agents may be giving you actual good information. And by, you know, telling you it's going to take a little while to sell the house it always has except for around a thing called a pandemic but other than that it for 30 years i've had my real estate license it's takes 90 to 120 days to sell a house except for a short period of time there when you you know a monkey could sell a house in 20 minutes but um

those days are gone, hopefully. It's not good for the economy when it gets white hot like that. So anyway, but it would have been good for you. It would have been nice. So here's the thing. You do not want a long-distance landlord two and a half hours away. Sell it, even if you lose some money. The job you took, is it more money?

Yeah, just a little bit. Why are you going? I am taking a youth pastor job, so I've been working for an organization called Fellowship of Christian Athletes. I mean, missionary funded, so it was just kind of a thing that I did for a year, and now we feel like God's leading us back to the church. Okay, so you were pastoring, and then you went on missionary status with FCA, which is their normal methodology, and then you decided to go back on staff and move to Abilene. Yes. Okay, cool.

Cool. Good for you. And what are you going to be making? Right now, we're still working out some of the details but probably about 50 000 good okay good for you okay yeah please sell the house you cannot afford a five or a ten thousand dollar problem with a house two and a half hours away because you can't keep your fingers on it it's a it's a liability it's not an asset. That's right. And not only that, but the temptation is going to be if you were to keep that house, then you go over here and move

to Abilene, you're going to want to buy a house there. And before you know it, you're going to have two mortgages. And you're going to be out of order on the baby steps. So yet another reason to sell the house, save up. You're kind of back at baby step 3b at this point yeah the blessings of the lord have no sorrow added to them the psalmist says and so when you look at this house two years from now are you going to consider it a blessing when you've been trying to rent it two and a half hours away the answer is no rental investment real estate is a good plan not when you're broke and not when you got no equity which means the house probably won't even rent for enough to cover the payments so you need to sell this house even if you don't get out as

much as you put in net of expenses so good question sean thank you for being sensitive to the lord's leading well done nathan's with us in wisconsin hi nathan welcome to the ramsey show hey dave how's she going? Better than we deserve, brother. What's up? Beautiful. So, I know the normal order of the baby steps, but I have a 14% mortgage that is variable rate. Good Lord.

So, I'm wondering if I should hit that first. Why? Your credits suck? Because I'm really dumb and really wanted the house. It was 11% horrible, but I'm going to do this right and pay it off in three years, and then I didn't. Then you didn't. So is your credit bad? Yeah, it was never great, and now I ended up with an employer disappearing on me, so now it's really trashed after two months of paying everything late. Okay, so you can't refinance no how much do you owe on the house

34 000 oh not a ton okay like a car payment but a bad one. How much other debt do you have? What's before this? I owe $17,000 on the Coyote tractor and another $60,000 on some family land. You have a $17,000 tractor and a $34,000 house. Does that not sound wicked weird to you? It does to me yeah i went too shiny at the dealership and shouldn't tell them probably gonna sell it in the spring yeah i think you need to sell it i think that needs to go away and so 17,034 and what was the other one 60k on land around 60,000

on land that you don't live on part of a family farm. Part of a family farm. So you bought into when somebody died. It was due to my dad's financial situation. It was either buy it or lose it. Okay, Nathan, you need to stop doing impulsive crap. You need to change your ways. All three of these purchases were bad ideas. You see the pattern, brother?

Yeah, sell the tractor and take six jobs and pay off your house. And dad needs to get his crap together and buy the land back so you don't have that debt. Quit making impulsive financial decisions. You're going broke, brother. This is the Ramsey Show. jade warshaw ramsey personality is my co-host today every year at tax time it's the same old story a boatload of people wait until the last minute scramble to get their taxes done on time and folks you're smarter than that there are benefits to filing early for starters it means you can get ahead of any surprises and give yourself time to make a plan if you end up owing

money to the irs so once you've got your W-2s, your 1099s from your employer, you should be, which you should have gotten by now or any second now, go ahead and knock out your taxes. If you'd like to file on your own, you can get all your ducks in a row. E-file with confidence using Ramsey Smart Tax. It's our no-nonsense online tax software created to help you win with money. Ramsey Smart Tax gives you everything you need to file your tax return, and you'll know exactly what it'll cost up front. No hidden fees, no sneaky agendas, and you get a deal.

You save up to 70% if you switch to Ramsey Smart Tax from a leading competitor. Go to RamseySolutions.com slash Smart Tax and get your taxes in your rear view mirror ramsay solutions.com smart tax jade um our last caller um i've been that guy i've known that guy my whole life and um the bible says he who is impulsive exalts folly. Now, that's a proverb from the wisdom literature. Now, let's talk about that. Impulsive exalts folly. Folly is the verb of a fool in action. When I am impulsive, I am lifting up a fool in action.

I'm exalting it. I am worshiping it. I am becoming it. And so when we make particularly large decisions impulsively, here's what's interesting. I know nerds who will spend days studying consumer reports, studying manufacturer ratings, specifications, all to spend $1,000 or $2,000 on something like a computer. Sure. And then impulse a $50,000 car. It doesn't make sense. But they do it. A $50,000 car. It doesn't make sense.

But they do it. And I'll tell you, one of the most things that Americans impulse, the largest things that we buy that goes down in value, and one of the things that we impulse worse than anything else is cars. Absolutely. And these cars have gotten people in trouble. You went off on this last week, and your little trashing going after people for being stupid with 1300 car payments has gone viral something like 10 million people saw the clip

already uh it's wild and uh then bloomberg comes out today and says uh americans are falling behind on car payments at a higher rate than any time three times as bad as 2009 well i wonder why recession i wonder why dave because people are taking these notes it says there's a growing cohort of americans facing auto repossessions this is an ominous sign for the u.s economy during the pandemic a surge in used car prices forced yes buyers to take out bigger loans and that right there forced yep you were forced that's the word you didn't have a choice well here's the thing on that that i mean you had to have a 74 000 raptor and so you were forced and that's what i saw dave if you look at the comments on that post that is what people are saying well what's our choice what was our choice

your choice is don't be stupid that's your choice that's your choice don't be stupid try not being stupid that's a good choice and then and then the the other side of it the other side of reality like you said the people who chose to go against the grain are saying hey you know i just bought a car in cash that i could afford it's getting me from point a to point b and when the right time comes i upgrade so there there is a cohort of americans who do have the right idea dave there's there's some smart people there are some people and there's some stupid people yeah there's a lot of stupid people dave 85 of americans have car notes 80 And of those 85% of Americans, 15% of them have a car note of $1,000 or more. It's just hard to wrap a ball of paper around. 1,000.

I just can't even get my head around that. So here's the thing. If you put that, as Jade did, in a calculator and talked about it last week in that piece that went viral, if you invest a car payment for just a couple of decades, you will have over a million dollars. You'll have $5 million if you do it for three decades. Thank you. And so I don't have the money safe for my kids. It's just because you're stupid.

And you put all your money in a car payment. That's why you got no money. You were stupid. And can you talk to the people, Dave? Because I tried to tell them. I tried to tell them. I said the same thing you said. And do dave because i tried to tell him i tried to tell him i said i said the same thing you said and you know what they said to me where are you getting a 10 rate

of return who's going to invest their money over 30 years jade and you want to know what the answer is millionaires millionaires that's how people make their money if you're listening and you don't understand that this is not a car problem this is a yolo problem yes you only live once oh you sweet little child listen adults devise a plan and follow it children do what feels good bingo very few people who are successful are whiners they don't walk around with a big v on their forehead that says victim i'm so i can't get a car i want a car car that's safe. Oh, shut up. They roll up their sleeves and they work. Seriously.

There's people here who roll up their sleeves and work. There are actual people in the world who will set aside a portion of their income for 20, 30 years and invest it into their 401k, into their IRA, and they become millionaires. That's what we call them we hear them every day on the air so for all of those people they weren't forced to do that they weren't forced but for all of these folks out here yakety yakkin talking yak talk about oh you can't get a 10 rate of return where here's what i kept hearing what stocks give you an annual rate of 10 return the stock market has averaged 11.8 since it began hello and if davis 500 that's the average on it since it began 11.8 average for for 80 years you dumb butt this is not hard we're sitting here telling you you got dave ramsey who's got more

money than anybody you know and then forbes magazine tells us the number one payment keeping people broke is their car note it's not just us so if you want to think it's just oh it's just ramsey solutions they're the only one they're the only folks out here saying this that is not the case the case is 85 percent of people have car notes here's the thing 67 percent of people are living paycheck to paycheck whining and work what a concept what you'll have is is the ability to sacrifice to win see adults devise a plan and follow it children do what feels good here's the thing so when i went broke we lost everything we had one car with a payment on it re i reaffirmed it out of bankruptcy and i'm paying my pay in my payment paying my pay in my payment and my wife would have left but we only had one car and so i mean we were we were we're

mad we were hurt we were wounded whining like some of you people are and a guy loaned me a car because i refused to that's it i'm not borrowing any more money he loaned me a car because I refused to, that's it, I'm not borrowing any more money. He loaned me a 1978 Cadillac with 478,000 actual miles on it. The predominant color on it was Bondo. The vinyl roof was torn loose across the front, so when you drove it, it filled up with air. It looked like a parachute. I'm driving a Bondo buggy with a parachute on top. Now, you know what I was driving before that, before I went broke? A Jaguar.

I went from Jaguar to parachute Bondo buggy. Because you know what happens when you go broke? You don't care what other people think anymore. You don't care. I lost my need to impress your butt at a stoplight. And so I go into a nice neighborhood, and that car, the cops are following me, thinking I'm there to rob somebody. And so I got profiled based on my car.

Can you imagine that? I can. And so, you know, so I drove like no one else. And I saved up and I paid cash for a $1,000 car, which is an incredible upgrade. And gave my buddy his blessing back that he had loaned me. And then we move on to the next one right and we save up and we buy a three thousand dollar car and we save up and we buy a ten thousand dollar car you know i drove like no one else so now i drive anything i freaking want come on you whiner come on dave

seriously y'all need to know what it feels like to work i'm and stop your whining it's not becoming the wussification of america the things you think you have to have to survive is sickening it's sickening for a short period of time pay a price to win no one wins without paying a price the repo rate on you idiots right now is three times what it was in 2009 in the great recession it's the worst repo rate we've seen in 30 years stop it jade warshaw ramsey personality is my co-host today brock and rachel are with us they are on the debt-free stage right here in the lobby of ramsey solutions hey guys what's up hey welcome where do y'all live in houston houston texas welcome to nashville how much debt have you paid off? $500,000. How long did this take? Five years. 60 months to the day. Wow. Awesomeness. And what was your income range during that time?

Started about $160,000 and ended about $220,000. Wow. That's incredible. What kind of debt was this that you paid off? Oh, let me tell you. A lot of ignorance. Are you getting out the list out of your pocket? Yes, ma'am. Let's hear's hear this is a five-year list that we kept oh my goodness it was two homes credit cards um a loan to buy her a wedding band uh a new hvac system for our house a new car some floors all kinds of living life. You were normal. Yeah, normal. Just like everybody else. Normal, normal, normal. Wow. So what was the wake-up call 60 exact months ago?

We got married. Oh. We both came into marriage with different amounts of debt, and we just realized that that's not what we wanted to build our marriage on, and we wanted to have more fun. Yeah. So I love that. Our church decided to bring you on a board for FPU.

And sure enough, the light went off at that point. Very cool. What church did you go to? Second Baptist. Oh, yeah. Okay, cool. Cool. Yeah, we had a big deal there.

Yes, sir. Yes, sir. Yes, we were there. Very good. Good for y'all. So that church doing Financial Peace University church-wide got you guys plugged in. Absolutely. And about the time that you wanted to be anyway.

Yes, sir. We were dating at the time. And so we were actually in separate small groups, but having really good conversations on afterwards of what we wanted our life to look like if we got married. And so that was our- How much later were you married after that? Less than a year. Yeah.

Okay. It was real quick. Yep. But I will be honest with you. It took about a year before I finally got mad enough to actually do something the right way. I was going to ask, were you both immediately on board or was somebody, so she was, she was, you were the reluctant one. I'm the spender. So, you know, Hey, I want to keep buying. Oh, okay. So how did you, how'd you whoop that out of him, Rachel? I didn't. I did. It was a

lot of conversations. My parents't my parents did Financial Peace University and so they gave me the book I think in college if not right after and I was like this is cute but I'm good and it wasn't until we realized that we were having to deal with debt and deciding what we were gonna do with our money and if we were gonna be dictated by our debt or if we were actually going to prepare a life for our kids one day that we wanted and so it really was doing it um together that we decided like we have to do this but then a year later it came down to i don't know what huge hit happened oh it i looked at her and she's

about three months away from giving birth to our first son and i said this ain't happening no more yeah oh the baby coming that that's a wake-up call yes sir yes ding ding yeah this just got real oh yeah yeah yeah and i'm not gonna saddle her and i'm surely might want to saddle him with my ignorance right there you go so we fixed it quick yeah i love that so you go you guys this is amazing yeah and not you know i told her the other uh probably back in november uh it got pretty tough there at the end. As you can imagine, you see the light at the end of the tunnel, but that tunnel seems to get longer and longer. And we just did a few numbers, and we realized we had a really good income, but we were only living on $50,000 a year.

Wow. Everything went to the debt. So you mean you can actually live on less than you make. Ooh. And we did did and it was tough because you know our friends they live high on the hog and that we thought we were weird but we were now that you know Ramsey was weird but it is we we felt like we were missing out and now I wouldn't change it for the world you were missing out you were you were missing out on stupid yes and I was a teacher

um before i stayed home with our boys and so i always thought well i don't have the income to do this i don't have enough money to save or enough money to truly get out of debt and it wasn't until we realized like how much money we were actually spending that we didn't have that i could have done that years before and so that's one thing i regret not doing it sooner yeah and i've told her a number of times you know i wish that wouldn't have been that stupid prior to knowing her and settling her with my we all got that in our rearview mirror that's okay that's okay the trick is the change the trick is the transformation which you've both gone through so did you say this is house and everything? Yes, sir. Y'all are so weird.

On December 30th, her, the two boys, all four of us walked into Wells Fargo and said, get out of my house. Okay. Broke up. I love it. And we had all the bankers come out and they said, this isn't normal. I said, good, because I ain't never coming back. So how long has it been since you made that final mortgage payment? It is one month today. Oh, so you're feeling it now. You're starting to feel that good. Wow. What's your first big thing y'all are going to do? Come in here. This is it.

This was our trip. I mean, after this, yeah. Oh, gosh, after this. Do more. You don't have any payments. No, we don't. Actually, one thing that we talked about when we were redoing our budget of,

okay, how much we want to put towards savings. Like, this is our new income. We don't have debt. How much we want to do. We realized that much we want to put towards savings. Like this is our new income. We don't have debt, how much we want to do. And we realized that we really want to put that money back into savings, um, to buy him a car soon. Cause he's driving one of those reliable old cars, 13 years old. Yeah. You need to get another car. So want that. Um, but we also wanted to put a line in our budget of just giving, of being able to like pay for someone's meal, you know, or buy groceries for somebody and not feel like, well, now we don't have that money to do something. And so we put

a line item in our budget of just being able to spoil other people. Random acts of kindness. Yes. I think both of our parents did an amazing job of teaching us the joy that you get from giving. And I think that's what I'm most excited about going forward to the next five, 10 years. It's like the best is yet to come for our boys, our boys of like the life that we get to do with them, but then how we get to teach them to be generous. You teach them to hear God whisper and say, take care of that lady over there. Yeah, we actually have a thing we say. I read it in a book and it's look for the God winks along the way.

Yeah. That's good. That's good. That's a good word. Well done, y'all. Well done. I'm so proud of you. Thank you.

How's it feel to be completely free? Really good. That's a good word. Well done, y'all. Well done. I'm so proud of you. Thank you. How's it feel to be completely free? Really good. I was telling him this trip has been hard because I'm so used to counting pennies and like, well, are we on our budget? Have we spent too much? And it's been nice just to relax and enjoy our income. So that's been fun. It's fun to know we're okay, to know I'm not going to make her hurt by doing something a little too much

or a little too little. And I will tell you, the last month was really tough at work. And then to walk in January 2nd and say, I don't care what happens. I'll go push carts around at Lowe's and be just as happy now because I don't have to pay anybody anymore.

Changes the way you work. Changes the motivation behind what you do there because I want to be there now yeah yeah you got a choice now yes sir well done y'all thank you what do you tell people the key to getting out of debt is doing it together I think if we hadn't been on the same page and had the same vision it wouldn't have happened and I, I was lucky enough that I had parents that introduced me to this whole concept before. Um, but then I had a sweet friend, Kelly, that through our single days of all of the weddings and all the bridesmaids dresses that we had to buy and all of that, she was the one that would eat before we would go out to eat and she

would eat chips and salsa and that's it because that was not in her budget that month. And it gave me the support of like someone else is doing it. can do it too and so i would just say to find someone to do it with because then you don't feel like you're on an island you're doing it together yeah you know and for me when i said it took about a year till i got mad and it's it's the age old adage that everyone has said i got sick and tired of being sick and tired decided to draw a line in the sand yes ma'am change your life yeah way to go y'all way to go hey we've got the live and give bundle for you the baby steps millionaires book the total money makeover book and another financial peace university membership that'll help you with your

generosity plan you'll be able to give those and catch somebody and get them going get them motivated moving in your they can have the same story you've had or their version of your story. So way to go, y'all. Thank you. While we come down here, you're inspiring. Very, very well done. Brock and Rachel, Houston, Texas, $500,000 paid off in 60 months. That's five years for those of you that are counting. And they did that 100%.

House and everything. Yes. No payments anywhere. $160,000 to $200,000 income living on 50. Count it down. Let's hear a debt-free scream. Ready? Three, two, one.

We're debt-free! Yeah! Woo-hoo! Yeah, baby! Yeah! I don't know where those people live. They have paid for cars and a paid for house. Okay!

Next door to you, that's where they live. This is The Ramsey Show. ស្រូវាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រ jade warshaw ramsey personality is my co-host. Alexander is in Philadelphia. Hi, Alexander. Welcome to The Ramsey Show. Hi, how are you? Thank you for taking my call. I appreciate your time. Sure.

What's up? So I want to buy a garage ornament, and I want to be on the smart side of the spectrum and have a conversation with you before I end up on the stupid side of the spectrum. Okay. How expensive a car? All said and done, everything, it's about $130,000. Cool. What do you make?

Take home with me and my wife, it's about $14,000 a month with net. So, $150,000? Whatever the net is probably close to 200 yeah okay all right um as far as debt is concerned why don't you ask the question that's okay how much debt do you have back here what's your nest egg? How much money you got? I got about $800,000 in retirement. I got about $430,000 in liquid assets, I guess. I have two sons and i have about ninety thousand dollars in each of their 529 plans okay so the rule of thumb i use on uh toys which you're at the level of toy on this um yeah and i've got some toys so the rule of thumb i use and that i teach i'm a. That's okay, man. I don't have a car payment. I have a Subaru. Like, I had enough.

You're going to pay cash for this car, right? I'm going to do what you tell me. I mean, if you say no, then no. Okay. If you're not going to pay cash for it, don't do it. Okay. Number one rule. Okay.

Number two rule is cars go down in value. Things with motors and things with wheels. Cars, boats, Sea-Doos, their sisters. I've got a bunch of things that go bo, wooden, and I like stuff like that, but they all lose value. And so we don't want to have a general rule of thumb is you're a millionaire, okay, a little over a million-dollar net worth, if I understood the numbers correctly.

And it sounds like you make a couple hundred a year the trick is we use a rule of thumb it says don't don't buy things with cars with motors and wheels all total including your other car your subaru other stuff like that that equal more than half your annual income because they go down and we want to have small amounts of things going down in our life now you've got an unusually high net worth you're paying cash for this you're probably going to violate that 50 when you buy it okay matter of fact we know you are because you make about 200 a year and you're going to spend 130 just on this one car and your other cars on top of that are going to put you over that

normally i would say that's a no-go it kind of makes me question it here um uh a little bit um what's your question well i mean i just don't want to put too much in things that go down in value and i'm trying to look at the ratios of your network it's like uh not to you know it is a g it is a nissan gtr i don't know if you know anything about nissan gtrs but they're very very very hard to find yeah they are and if you go on auto a trader or something like that right now um they're they're astronomically priced even in the used market likelihood if you're lucky to find a new one the new raptor just came out 700 horsepower um they're running about 120 okay but they're not going to go up in value i understand even though they're like they're much

like your nissan that you're talking about that yeah i've looked at that car it's a very sweet car um and so yeah you can you can do it but what you've got to realize is you've put a little bit more into a depreciating asset because 10 years from now let's face it that thing's not gone up in value no no i mean i've got a 60 1960 corvette that's frame up restoration that is fabulous and i've had it for probably 10 years i don't think it's gone up a diamond value i don't think it's gone down any but it might it might have gone up a little bit but uh the classic cars some of them like that some of them will go up a little or a super super rare item you know that you can't get like stuff that's running off the auto auction

that kind of stuff the rare car auctions sometimes those will go up in value but i don't't think your Nissan is going to qualify, and I don't think that Raptor is going to qualify for that. So anyway, all that to say, I'm not going to tell you what to do. The way I make decisions is, am I putting too much of my asset base in things that are going down rather than up? And normally, our guideline is, A, pay cash, B, don't have total of more than 50% of your household income in there. Now, an exception to that would be, let's say you called in, you had $8 million in mutual funds, and your household income was $100,000. Well, we wouldn't hold to that 50% of the $100,000, right? I see what you're saying. Because you could afford to buy the thing for $130,000 if you had $8 million and drive it off

a cliff tomorrow and you wouldn't even notice financially right that's the point so you're right on that you don't have eight million but you got a million and a half probably we didn't talk about your house equity but um you know you're right on that and you're doing great so you're you're not going to go bankrupt because of this but i wouldn't go buy another one. Alex. No, no, this is it for me. I mean, I don't drive a fancy car. You're about to.

Not really like that, but I've always liked this car for the last however many years. It's a sweet vehicle. I just don't want to, you know, I think I respect everything that you say. You obviously are in that man of position for a reason, so I just didn't want to be like I said. Well, you see, you get the principles I'm using. Yeah, I understand. I completely understand what you're saying.

And so based on those principles, you're on the bubble. You wouldn't be on the dumb side. If your net worth was $500,000, I'd say don't do it. Okay. Yeah, my house is worth a pretty good amount $500,000, I'd say don't do it. Okay? Yeah, my house is worth a pretty good amount of money, too, and I don't owe that much on the house. Like I said, I only owe $150,000 on the house. What's it worth?

I just had my real estate agent look at it. He said $1.6 million, $1.7 million. Okay, so your net worth is $3 million. So. Yeah. Okay. I feel like that moves the needle. That does move the needle. That moves it in your favor, see? you see what i'm talking about here that's the whole thing i just don't we can

rationalize our butts off and i appreciate your calling appreciate the spirit you're being humble about it you're not being smart alec you're not being sarcastic you really want to know that house threw it over the edge in my book you're okay then yeah i'm good i'm sleeping good tonight alexander if you buy this this car and i'm happy for you and she's the one that just yelled at all of america about car payments so just keep in mind that that's you that 130 000 car you've got he's got over two million dollars in net worth three three yeah definitely get it and get me one too i'm just there you go that is a sweet vehicle y'all look it up if you hadn't looked it up oh man all right that's so that's the thing and these numbers do change you know here's an example okay

everybody says okay what percentage of my income should i spend on food well if we give you a percentage that's true for people that make a100,000. What if somebody made a million? That's right. They don't need to spend that much on food because they'd be large. And in charge. Okay. Okay. I mean, so, you know, these things skew out. If you have a very low income, you're, you know, very poor.

Okay. You're just barely getting started. You have to spend a larger percentage of your income on food that's right so you know to just meet necessities so these things skew out the principles that we give you skew out based on net worth based on income being at extremes and a three million dollar net worth is an extreme in america today the guy's very successful way to go alexander yeah i'm happy for him you You know, the thing is, you just got to get these principles down. Quit buying $50,000 cars when you make $50,000 and you got no money. Right. That's just straight up stupid. That's the point of these

principles. And he's not even anywhere. He's not even in that on that in that same book, much less the same chapter on the same page. Well, that's the point. You know, Dave, we yell at people a lot for doing dumb stuff, but we're equally happy for the people who have worked hard. They've got the money. Then, yes, spend your money. Money is fun to spend. It's fun to give, save, and spend. It's fun to enjoy.

It's fun to enjoy. That's what it's for. People think that we have forgotten that, but we have not forgotten that. It is fun to spend. No. I've been able to buy some of the things in my life that I always wanted since I was a little bitty kid. I've got Mastercraft ski boats. Yeah.

It's an unbelievably expensive boat. But that's when I was a little kid. That sounds like a fast boat. We got to ski behind the Mastercraft the first time. And we're up on the slalom course. I thought, man, if I ever make it, I'm going to get me a Mastercraft. So I got me a Mastercraft boat. I mean, that's how this works, y'all.

Look at that. There you go. This is The Ramsey Show. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.