The Ramsey Show - App - Quit Meddling in Your Daughter’s Marriage! (Hour 2)

Episode Date: March 16, 2022

Dave Ramsey & George Kamel discuss: Why you shouldn't butt into your kid's new marriage, How to use the proceeds from a home sale (1031 exchange), Where to put medical debt in the debt snowball. 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

Live from the headquarters of Ramsey Solutions, 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. I'm Dave Ramsey, your host. You jump in, we'll talk about your life, your money. George Campbell, Ramsey personality, is my co-host as we talk about your money, your relationships, your career, your job, your mental health, anything about your life you want to talk about, we're here to work with you. The phone number is 888-825-5225. Matthew is in Baton Rouge. Hey, Matthew, how are you? Doing well, Mr. Dave.

Thank you. We're blessed and highly favored. Thank you, Mr. George. Also taking my call today. Sure. How can we help? Well, just really quickly, just a short background. FPU graduate three years ago, 18 months debt-free, been 18 months debt-free.

So total of three years here. We killed $89,000 in debt. I believe in three times your emergency fund. I like to be very careful. I have my six months in place of expenses. I'm investing my 15% self-employed, and we are forced to sell a house that was given to us three years ago because the family member passed away. And in short, now we're going to get hit with capital gains. So we're doing a 1031 exchange, and I feel that I'm where I should be to go ahead and start investing.

Correct me if I'm wrong with that, but I have no other choice unless I want to give my silent partner a lot of my money. And I don't feel like giving Uncle Sam that money. So pulling out the 1031, my question to you is, I want something safe. I've evaluated my risk factor, my returns, and my maintenance. And I want low risk, good return, and low maintenance, of course,

but I'm looking to start generating the revenue for my retirement that's what i'm looking at y'all all right so the house you inherited it and uh what was it worth at the time you inherited it what it's worth no at the time you inherited it what was it worth uh well we just three years ago i i wouldn't know because well i mean give me a guess come in for example purposes give me a guess i'm gonna tell you 250 days okay so that that's our example all right and yeah so anything you make above 250 you're going to have capital gains on so what will the house sell for uh we have it under contract at 285 okay you don't have any taxes

15 on 35 000 it's not even 35 000 after expenses when you you're selling expenses are also deductible so i mean you're talking about three000 in taxes. You don't need to do a 1031. Okay, so the house was an active donation, not a true inheritance due to a will or debt. Oh, I thought you said it was an inheritance. Okay, that's different. Sorry if I did, but no, sir, I was trying to get you. No, that's okay. That changes the math, though.

That changes the math because now your basis is what they paid for it, which is probably a little of nothing. Exactly, $21,000. Yeah, okay. So now you've got a big capital gain. I'm back with you on a 1031. Okay. Sorry, sir.

That's okay. I'm just making sure I'm touching my basis here. Yes, sir. So why have you had it rented during the three years? No, sir. They were living in it with use of it. So that was where the family members were staying. But before they died and all that, they took care of all their property, their last, what they want to do, where they want it all given to.

So they gave it all away, and we said, well, y'all just stay there. Y'all will just stay there, and we'll take care of you no problem but now they're gone so can you are you sure have you checked with a tax person that you can claim this as a rental property because it has to be a rental property to do a 1031 to another rental property it doesn't sound like you collected any rent that's that would be correct i did that talk with the accountant she's just telling me that we have to you know do the 1031 we don't want to put capital gain on it but she's aware you didn't collected rent on it sir she's aware you collected no rent on it yes i want you to get another tax opinion because i'm not sure but i mean i i you know it's a like-kind exchange

an sb income property for income property and there's been no income on this property. So I'm a little worried for you in the event of an audit. But let's pretend, let's go forward that the 1031 works and that my concerns have been allayed. You'd get some good advice because I'm not sure. So you have $285,000 you need to reinvest into another piece of real estate that produces income. Yes. And so you're asking what to buy? In short, just a couple ideas that you would say are safe, conservative, and as a beginner.

This is my first one, okay? I have no clue. We love the Tennessee. We thought about cabins. We thought about commercial property here and ran out to tenants. But the economy and the prices and the real estate has got us so whacked out, I just don't know what. But I'm forced to do it within six months, I believe, is my max.

I've got to close. Right. So you've got to find a $285,000 property that you like that fits your guidelines of low maintenance, low risk. And, no, it's not a cabin in Tennessee. It's an income-producing property near you. And that's probably another house is probably what it is. But you're probably not buying an old house in a junky neighborhood. You're buying something that's a little newer and is not going to require as the level of maintenance and uh will serve you going forward uh you've

already got it under contract to sell it why was it you sold it again well it would sit out there vacant it's it's in a you couldn't rent it it's away no sir in the area of the state we live in it would be tore up full of drugs and lord knows what else i got you the word okay before that town goes even worse yes sir i got you okay i understand it's not it's not something you wanted to keep is what it amounts to okay so yeah you got it what i'm looking for is i'm probably looking for a nice condominium that that's a you know that's five years old or something and it doesn't have a lot of maintenance issues that I can drop 300 grand into, or 250 grand into, and just keep it real simple. Don't overcomplicate this, but you do need to check with someone other than your accountant in addition to

your accountant and get another piece of tax advice and make sure that this 1031 will fly. Yeah, I would jump on to RamseySolutions.com, connect with a good ELP tax pro and a real estate agent to help you start running comps and going, hey, where am I going to find some good stable rent in a good neighborhood for this price range? And if you can do that with cash, I think you're going to be in good shape. Yeah. So for those of you wondering what the flip we've been talking about for the last five minutes, a 1031 tax deferred exchange is what you do instead of trading properties. In the old days, you used to have to trade properties if you wanted to move your gain from one property into another. Let's say he had a house to sell and he wanted to not pay capital gains on that $285,000 in his case.

Then he would have to go find another piece of property, and the person that's buying his property would buy the other piece of property to trade with him, and he could roll it over. They simplified the laws 25 years ago, probably, and started calling it a 1031 tax-deferred exchange, where you sell the property into a special 1031, that's the number in the IRS regulations, 1031, into a 1031 escrow account, and then you have six months to buy another property, and it allows you to roll your equity into the other property as if you had done a trade. Without any tax implications. Without any tax implications today.

When you do sell that other property, now you've got the old basis in that rolled over, so you're going to get your butt taxed off then. This is the Ramsey Show. Let me tell you a story about two families that are very much alike in a lot of ways. Both families have two working parents and a couple of young kids. Each has debt and has struggled to make ends meet. But they're starting to make headway with their budgets and smarter decisions with money.

They have dreams and plans, and the only real difference is that one family has the right amount of term life insurance and the other doesn't. Big difference. If one of the parents die, and that does happen, their well-being would be destroyed. Paying for the mortgage, utilities, food, and other bills would be impossible, let alone saving for education or retirement. That's why every day I talk relentlessly about getting term life insurance. Just go to zanderinsurance.com or call 800-356-4282 and see how inexpensive it really is.

Be the family that takes those deliberate steps to be different and responsible. It really does make you the hero of your story, and it puts you on course for better things ahead. George Campbell Ramsey personality is my co-host today. I'm Dave Ramsey, your host. This is The Ramsey Show. We all know time is important. It is more precious than money, than shiny toys or winning certificates at work. And like spending money from an account when you don't know how much is in it we never know how much time we've got left so if you could do one

thing one thing that would make the time you have left even more worthwhile wouldn't you do it of course you would we all we all would we get that and we want to help you have everything you need to be well and that's why we're partnering with better help to give you a month of free one-on-one weekly therapy when you pre-order a copy of dr john deloney's new book own your past change your future it comes out in april but guess what if you pre-order it you get a free month of one-on-one therapy that'll give you the tools you need to change your future because you get matched up with a therapist based on your specific needs. This is an incredible bargain. For $20, you buy a book, and you get this thrown in.

Wow. Off the chart. I mean, I can't even imagine how much money this is. This is crazy. Now, when you read this life-changing book, Own Your Past, Change Your Future, you'll feel like Dr. John's sitting right there with you. He'll make you laugh. He always does.

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And every one of us got one or two dials inside of us that we could click a couple notches on and get a little better, right? And it's true on anything, but it's certainly true on this. So get your free therapy sessions by pre-ordering on your past, change your future, $20 at RamseySolutions.com. Our question of the day comes from blinds.com they have a 100 satisfaction guarantee that means even if you mismeasure you pick the wrong color they'll remake your blinds for free free samples free shipping and with the new promos they run every month you'll save even more use the promo code ramsey to get the best possible deal today's question comes from kathy in arizona she says my daughter just got married and her husband loves your show and is budgeting to get the best possible deal. Today's question comes from Kathy in Arizona.

She says, My daughter just got married and her husband loves your show and is budgeting according to your plan. For new couples who are starting out and getting to know each other, it's hard to be on a tight budget with no extra money for date nights or even a yearly vacation. With both of them working full-time, there needs to be something to look forward to besides just paying the bills. Shouldn't your plan be modified a bit to include adequate funds for these activities as they get

to know each other both personally and financially? That makes me laugh. That's good, Kathy. Wow. I don't know what plan she read. Your plan is to have no extra money right that's the plan i know and love honey you need to leave your grown kids alone and let them run their own lives you interfering mother-in-law oh what book did she read oh okay no we don't have money for date nights in there when you're trying to get out of debt no we don't have money for date nights in there when you're trying to get out of debt. No, we don't have money for vacations in there when they're trying to get out of debt. And this poor little couple, newly married, will survive that. They'll make it.

I promise, Bob. And they'll get to know each other just fine because they ain't got anything to do except sit and look at each other. So it's going to work out just fine. I love that you said as they get to at each other so it's gonna work out just fine i love that you said as they get to know each other financially yeah that's very interesting so here here is what you do need to guard against i'm making fun of you kathy because you need to be made fun of but um but the the thing you do need to guard against here that you are right about i will take your side on this is if he is being a control freak and clamping down and your daughter doesn't have a vote in this

your daughter needs to speak up because what we do teach is that both of them have a vote but we do teach to sacrifice to win to live like no one else so that later you can live like no one else and if they both are committed to getting out of debt and they're going to sacrifice to win the way we teach it is not going to harm their little tender relationship as a matter of fact it will draw them closer together because unlike their other married friends who are so freaking snowflake that they're all they worry about is being nurtured instead they're actually sacrificing to hit a goal together and that draws people closer together than snowflaking in the same room. That sums it up.

Here's what I'm saying. Their financial situation isn't clear here. We don't know if they're in debt, but the fact that she said they're on a tight budget makes me think they're probably in baby step two. They're probably broke. He wants to get them out of debt so they can go on vacation and not come home with the vacation on the credit card for the rest of their life. And mommy is worried about her little princess.

They're newlyweds. They're fine. I know. They don newlyweds. They're fine. I know. They don't need to go anywhere. And, you know, but seriously, it's okay if they have, no, our budget does not say

you cannot enjoy your life. It does say that you should tighten up everything and not have a bunch of fluff in your budget in order to accomplish your financial goals, which is get out of debt.

And it is worth the sacrifice and no, it will not damage their relationship beyond harm. And you know what creates that margin for all that fun stuff? Getting out of debt. It's amazing how that works. The reason an old fart like me laughs at something like this is because I remember when I got married, I was so broke I couldn't pay attention. And I can guarantee you, neither one of our mothers gave a crap about our little relationship so dave should take sharon on vacations my little daughter he's not gonna

now her mother's like you you keep people to get your butt and gear and work that would have been both of our mothers i mean they would have had none of this i mean but but it's a different thing now so it's a little bit of a helicopter parent kathy that's what we're hearing if kathy cares so much just send them on vacation no gifted to him no no don't interfere she's already in her let these grown people be grown people you quit helicoptering um that's what i read read here now if kathy if i'm being mean to you and you get your little feelings hurt, I understand. She'll call in or email you.

Yeah, she'll send me an email, but it's okay. I'll still love you, and I'm just going to make fun of you for being a helicopter mom. And you're sweet. You love your daughter, but you need to let her toughen up a little bit. It's not going to kill her. She's not going to lose her relationship. Her husband's not going to hate her. She's not going to hate her husband because they can't go out on a date night sharon and i didn't even know what a date night was

after we got married prior to getting married we had date nights but after getting married i mean we were married five years before this whole date night thing came up that's true yeah you're supposed to go out on a date on tuesday night with your wife then you're going steady right that's what it was no we were just. It's like the whole thing was a date. You know, it wasn't like we had to go out somewhere to a restaurant to prove it. But that's old fart stuff. Yeah, the times have changed, Dave. Back in the day. Get with it.

Back before the years began with an ought, before ought 22. You know, oh, my gosh. But, yeah, such a boomer. Showing your age. Yes, definitely. I just, but, my gosh. But, yeah. Such a boomer. Showing your age. Yes, definitely. Yeah. I just, but, you know. But there is something about newlywed couples.

You know, I went to a podcast with Mike Rowe this morning, Dirty Jobs, and Mike and I are like brothers from a different mother on this stuff. And so, we talked for an hour. The podcast went on way too long. Just two buddies chatting. I think I messed up his podcast. But, I don't know when it airs but y'all be listening for it was he and i were having a lot of fun and they happened to

record it too so but we were just talking about entitlement and snowflakes and and i was bragging on the millennial generation because i always do you know that george i have a good reputation for bragging on them the ones you meet in here at least but the well i meet them everywhere they work on our team there's a bunch of them and they work hard they're the portions of the millennial generation are amazing portions of mark but we love the portions that are and they make great you know i have great marriages we see them in here doing debt-free screams and all kinds of things but the ones that are entitled snowflakes the where they come from is this right here and that parenting is what leads to that this right here this is who has a

31 year old living in their basement uh but it's really good at nintendo really good at call of duty and nothing else and uh because you know why are we washing his own clothes it's just too much to ask you know so making up your own bed. Oh, my gosh. It's a lot of work. Yeah. So I'm making fun of you, Kathy. But I tell you what, if it's not you, it's somebody else out there like you that I'm making fun of.

It's pointing to a bigger problem. There you go. Thank you very much. It's not about this. It's a macro discussion, and you opened up the can of worms. So, yeah, that's the thing. So, no, we shouldn't modify our plan i hadn't modified it in 30 years live like no one else so that later you can live like no one else it's in the bible

no discipline seems pleasant at the time but it yields a harvest of righteousness rimshot this is the Ramsey Show. We'll be right back. george camel ramsey personality is my co-host in the lobby of ramsey solutions on the debt free stage chris, Chris and Jennifer are with us. Hey, guys, how are you? Hey, y'all, doing awesome. Welcome, welcome. Where do y'all live? Tucson, Arizona.

Cool. Welcome to Nashville. How much debt have you paid off? $330,000. Woo-hoo-hoo! How long did this take? Just about four years, Dave. Good for you.

And your range of income during that time? At the start, it was about $68,000. For one year throughout this journey, it jumped up to over $300,000. Whoa. And we're back down to about $110,000 now. Cool. What do you all do for a living? I'm a pilot in the Air National Guard.

I'm a stay-at-home mom. What happened to get it up to $300,000 for one year? Well, I took a lucrative job opportunity deploying overseas. And it was a big sacrifice. Five months out of that year was gone overseas, but that's what jumped us ahead so many years. Yeah, you made a ton of money in a short period of time. Yes, sir. You paid a price to do it.

Yes, sir. Through the pandemic. Wow. Oh, during the pandemic. Yes, sir. I was supposed to be gone for three months, and that turned into five. Yeah, because, oh, man. So you're a civilian contractor.

Yes, sir. Part-time in the Air National Guard. I'm back at my unit full-time now. Yeah, okay. All right. But at that time, I mean, that gig you took. Yes, sir. Is in the sandbox, a civilian contractor.

Yes, sir. Okay, cool. All right. So four years and $330,000. That looks a lot like a mortgage, was it? Two cars and a mortgage, yes, sir. All right, so four years and $330,000. That looks a lot like a mortgage, was it? Two cars and a mortgage, yes, sir. Woo-hoo! House is paid off!

Look at it, weird people! So happy to be weird. I love it, I love it. Where do you guys, what's this house worth? Today, it's probably about $360,000. Nice. Very nice. And it's yours.

It's all mine. It's all yours. I'll tell you what, the turf in the back feels so good on my bare feet. I bet it does. I bet it does. I've heard the rumor. That's amazing. How old are you two?

35 tomorrow. I'm 34. Wow. Happy birthday. Thank you. The Paid For House. You guys are incredible. Paid for $360,000 house at 35 years old.

Wow. You guys busted it. So four years ago, you guys had two cars living normal you got the mortgage what made you go all right we're gonna go hard at this thing oh we were so normal i mean gosh growing up my mom always played dave show in the in the car um i knew his voice i knew the music but i had no idea what the teachings were about um but goodness gracious through pilot school we were blessed to meet Jacob and Cassie Warren, who turned us on to your show. They

were under 30 years old and had two paid-for houses. Your guys' strategies. So we're like, we have got to get on that great train. So you're willing to listen to them. You're like, whatever they're doing, let's do that. These people are going to be rich! They had two little girls, too, and we were like, if they can do it, and

they're our friends and just normal people, we can do it too. Absolutely. They didn't look like they had a Superman cape or anything. Just did it. Normal weird people. So they coached you up and got you back involved. Now you're listening to the show and actually listening. Actually listening. Yeah, I'm a pilot. The first thing I did was gotten to

your website and there were seven steps and as pilots, we do checklists all day day every day and i was like i can do this come home to her hey uh show her the amortization chart on our mortgage we could buy another house with all the interest that we were paying on our mortgage a big shout out to bob barker and casey woods who just steered us in the right direction to make us go gazelle intense with your program as well. Wow. Very cool. So he comes home with it.

He's all got his checklist. You know, he's doing his pilot thing. Jennifer, what'd you say? At first I said no. No. I remember the first time he told me we were going on a budget and I was like, what is a budget? And that's not enough. No.

And then he took me to Goodwill and then he said, this is where you're going to shop now. Whoa. Oh my goodness. And I was like, what? This is not how you sell this. There's Dave, there's nothing sexier in America than an amortization schedule

and Goodwill. Chris, don't you know we're supposed to modify this and leave room for your vacations and for your relationship. I know that now. I'm kidding. No, I'm kidding.

It was date nights at Goodwill. Oh my gosh. But you know what? It became like a game'm kidding It was date nights At Goodwill Oh my gosh But you know what It became like a game I would take 20 bucks To Goodwill And I would see What I could get Oh wow

So you bought in huh Oh yeah No I totally I furnished our house And our backyard With stuff from Marketplace And Goodwill

I think everything Is probably under A thousand dollars Bedroom sets Couches Play yards All that Wow Yeah And it's not junk No it's not junk No I think everything is probably under $1,000. Bedroom sets, couches, play yards, all that. Yeah.

And it's not junk. No, it's not junk. No. It's amazing what you can get. It is. It really is. That was her full-time job for a long time. Yeah.

Well, and paid for itself easily. Oh, yeah. Absolutely. Yeah, yeah. Instead of, that'll be $50,000 and that'll be $150,000. And the play set is $450,000. The kids don't know the difference. It's amazing how much you save.

Like, we were looking at a new sofa and it was like $6,000. Yep. I got mine for $50. Wow. And it wasn't dirty, nasty. It's not horrible. No, I also bought one. Just somebody wanted rid of it.

Somebody wanted rid of it. That's all it was. One part of the story we just feel the need to mention as well. The reason why we finished in four years instead of six or seven, just this past August, my father passed away. And thank goodness he was actually good with money. He had his savings for retirement, but gosh, at the age of 56, way too young. Fortunately, though, he was thinking ahead and set us up for success in the last 75 of the houses was paid for by an inheritance oh wow from him so that was a huge blessing

and in his life well and it's something that uh that when you did that you know he's smiling absolutely this is what he would have done absolutely yeah yeah that's bittersweet bittersweet i'm sorry for your loss. Appreciate it. Yeah. That's way too young. Oh, man. Way to go. You two, you're absolute freaking heroes.

All right. Now tell America, how do you have a paid for house by the time you are 35? What are the things you need to do to get out of debt? Two things for me is really have a why, you know, have your goal. And the second is not just having that goal, but have that high definition vision on how you're going to achieve it. That's exactly what we did. We sat down at the dinner table and we dreamed in high definition on not exactly where we were going to be, not exactly when, but exactly how. I would say don't worry about what people think about you, you know, because the right friends are going to stick and the wrong ones are going to go.

And you just have to worry about what your family needs, you know, your goals. And don't worry about the judgment. You know, now we can give so lavishly. Did you have some haters? I did at work. While there was a short period of time we weren't flying. And every day, where are we going for lunch? I'm like, I brought my lunch.

Where are we going for lunch? I brought my lunch. And they're just hating on me. Like, oh, you can spare it. You're a pilot now. That's okay. You can go out for lunch every now and then. I was sitting there with my orange lunchbox every day.

I love it. I love it. Wow. So, Jennifer, some of your friends go stink eye on you? Well, they're not my friends anymore. Oh! She cut them out. Just like that.

Just like that. Yeah. Don't mess with Jennifer. That's it. Jennifer, I mean, he's got lunchbox. She got, there you go. I'm just saying, wow, way to go, you guys. Okay, very cool.

Very cool. Who are your biggest cheerleaders? His mom. Absolutely. Yeah. She's listening right now. Thank you, Angela. Yeah, she used to make him

listen when he was a kid in the car so he's a financial peace baby financial peace baby all the way yes sir i love it very good all right well let's bring the kiddos up what are their names and ages natalie's eight emily's five oh perfect cute you got to jump onto youtube just to see how you guys gotta you guys gotta look deeply into your radio and see this. Man, this is pretty incredible. With the stuffed animals. That's a good why right there. Absolutely.

That's a good why. Well done, Mom and Dad. All right, well, here we go. We've got a copy of the Baby Steps Millionaires book for you. That's the next chapter in your story for sure. And also a copy of the Total Money Makeover book for you to give away. And maybe one of those friends will be converted that used to be a friend or something you never know hardcore man i love it chris and jennifer natalie and emily 330 000 paid off in four years making 68 to 300 to 110 count it down

house and everything let's hear a debt-free scream. Three, two, one. We're debt-free. I love it. There's nothing better than those little voices doing that. I'm telling you. Because that means that his mom, their grandmother, legacy has continued. When she made him listen to the radio in the car and hear us, now her granddaughters are sitting there in a paid-for house because of her. Man, that's powerful.

Makes me cry. I love it. This is The Ramsey Show. Thank you. George Campbell Ramsey personality is my co-host today. Colleen is in Cleveland, Ohio. Hi, Colleen. How are you? Good. How are you? Better than I deserve. What's up? Well, I'm coming with a future planning question.

My mom passed away about a month ago, and the legacy that was passed down to her was from my grandparents, and there's not a whole lot left. Just about when I divided up between my siblings, probably about 15,000 apiece. And I'm trying to decide or figure out how do I create a legacy that represents the life of my mom and my grandparents. I'm so sorry. What did she pass from? She actually died because she had gangrene in her foot that became infectious.

She had a lot of other issues, but that's ultimately what she passed away from. How old was she? 76. Okay. So she's obviously a great mom. She was. Mm-hmm. And your grandparents too, huh?

Yes, they were. Good. Good. Well, that is a legacy right there that the two of them, those two generations have woven into who you are. And if there was no money left, that legacy still lives just in you and what you do to pass it on. What do you have in mind? What are you thinking about? I don't know.

My mom always loved to create spaces and environments and opportunities for the family to gather and be together. And my grandparents actually had a summer trailer just on a piece of property that was their summer home. And that's where we spent all of our summers. My mom was basically a single mom and the inheritance from my grandparents allowed her to live to the age that she was at. So they saved very well. And we were kind of thinking about, is that something we should do? We have six children. They all live relatively close, but it would be something that we could all go to in the summers and hang out and have campfires and camp out. And as the family grows, we could put tents out and that kind of thing.

But we also want to be able to play for piano lessons and soccer clubs and different things for our grandchildren. We have six children between us and two grandchildren right now. I don't know if we'll end up with more. Sounds like a lot of work for $15,000. It does. Like you're asking that $15,000. It does. Like you're asking that $15,000 to work awfully hard. Yeah.

So it sounds, I mean, I don't know what a lot costs in your area that you're thinking of. I think what I would do is pick something that is doable. And I don't know. I'll tell you what ran through my head and and i it there's no there doesn't mean it's the right answer okay um i'm kind of channeling my inner dr deloney here for a second um god help me i have i have a little inner doctor that's a really scary thought when you think about it. But anyway, very little. But he's kinder than I am. But the tent thing on the lots is trying to recapture a time that is no more.

And I might try to do something that was the new thing that is the way the family does something rather than something that is trying to recapture an old thing that is not anymore. And also, it just runs through my head. I don't know how you buy a lot for 15 grand that'll do that, but I might be wrong. Maybe you can. Maybe you've got one in mind. I don't know. But if you do that, that's's okay i'm not mad about it i i i wonder if there's the thing that in you every time you do the new thing you say brought to you by mom and grandmom you know and whatever that is and just

and that's the way you honor them and it could just be that we all gather somewhere and we use this money to pay for the gathering you know uh you know it doesn't necessarily we have to own a piece of ground and it's always the same thing every time maybe it's uh we rent a place for a week and it's a couple of grand or something like that and everybody gathers there and uh you leave the money and let it let it generate uh interest in the meantime i'm making this up i I have no idea, Colleen. But I think what is more important than actually selecting the perfect thing, and if you mess that up, you didn't honor their legacy,

is just going their legacy is already built in the fact that you even asked this question. Colleen, what's your financial picture look like? Are you guys out of debt? Do you have savings? Yeah, we're in baby steps four, five, and six. We have our emergency fund is fully funded for six months, and we're working on paying the house off. We have about $98,000 left on the house.

I just go back to they were such good stewards of their money, and that's all you need to do to honor them is be a good steward of that, and that looks different for everyone. But there's nothing wrong with throwing it on the house and getting the house paid for, and later on you buy the land when that time comes. You do it with cash. You're going to honor them with the way you live your life forever. And the $15,000 is just the starting point.

Yeah, it's not a million five that you can create a foundation with that's going to always that the income off of it is going to be endowed and the end what an endowment means is you put enough money in there one time that the income off of it will do the thing forever that is the honoring thing the memory thing or whatever and it's not enough there to do all of that and so i'm going to step back and do probably go georgia's route or just pick something that um we just say this is the new thing and each time we do it we say brought to you by your grandparents and this is the they they value the fact that we gather together and so we're gathering together which by the way is huge gift. Families don't do that enough. It's very difficult to do.

Chris is with us in Cincinnati. Hi, Chris. Welcome to the Ramsey Show. Hey, Dave. I'm glad to be here, but I'm kind of not real good on the radio. It's okay. Just ask your question right quick. You're okay.

We're not going to mess you up. Ask your question. What you got? My question is, I got this medical bill on my debt snowball. It's about in the middle of the debt snowball. And the payment on it is the highest monthly payment I have. It's larger than our refinance mortgage. And I'm trying, I'm wondering if instead of leaving it in the middle and just having it sit there, if I should pay this off first ahead of some of the other loans

that I have to get rid of that huge monthly payment. And, you know, I'd, I'd be able to put that towards the other debt afterwards, but freeing that almost $800 a month would give me a bit more flexibility if something happens down the line and we need to, you know, kind of scale back on paying off the debts. Well, what's the total balance of it? It's $12,000 right now. And how old is that medical debt? It was from September. It was a surgery I had in September. Okay. Pretty recent. Well, I wouldn't mess with the debt snowball because it works every time you work it and you're going to get to that debt sooner than later with these smaller payments getting knocked out. How fast is this all going to happen right now on your timeline?

If I left it where it was, it would take around 13 months to pay off the other debts that are ahead of it. It'll almost be paid off then. It'll be paid off then. $800 on $12,000 in 13 months. It'll be gone. Yeah, it's about 16 months on its own. Yeah, but it's just about going to be done. You will have eaten through it just paying the minimum payments.

Yeah, I'm just looking at it like if I were to move the extra that I have towards it, it would be paid off in nine. I wouldn't. I would stick right with the debt snowball. I think you're going to be done in the same time regardless of which way you do it, if you follow through. But I'm going to stick with what we have used for 30 years that has worked, and that is you get those little ones paid off.

You're going to get a sense of traction. You're going to get a sense of destiny. And I like the fact that you dread this bill, that you hate this bill. He's angry at it. That you're angry at this bill. It's going to cause you to lean in and push right on through it. So I'd leave it right there as just something to be pissed about. So it keeps you moving, you know.

Use a good, righteous kind of anger here. Nah, leave it alone, dude. Leave it alone. I appreciate that you're thinking about it, but stick with the plan. It works. I'm with George. That puts us out of The Ramsey Show in the books. Hey, folks, Ken Coleman here.

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