The Ramsey Show - App - Quit Spending Like You’re in Congress! (Hour 1)

Episode Date: July 11, 2024

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. I'm Dave Ramsey, your host, Jay Boshaw. Number one best-selling author, Ramsey Personality is my co-host today as we answer your questions. The phone number is 888-825-5225. Ryan's in Seattle. Hey, Ryan, what's up? Hi, long-time listener.

I just got an offer from my parents. They helped me buy a house. I'd enter into a contract with them where basically they would be the bank. They would fund the entirety of the purchase price, and I'd pay them back, including interest. They gave me a little bit better of a deal with the interest, um, at about six and a half percent instead of, um, it's around seven, seven and a half around where I'm at. Um, and I was just curious on if it was going to be, uh, something I should do. I know we've talked about, or you've talked about, uh, not buying a home,

uh, with somebody you're not married to, but it's, it is family kind of thing. So, um, the difference in interest, what does that amount to? I'm going somewhere with this. Um, cause that's the break you're getting, right? That's what they're offering you is a break on interest. That as well as they'd be purchasing 25% of the home and I'd pay off 75% of the home. And then when I sell it, they get their... So the purchase price is 400 grand. Yeah. They would be giving back their $100,000

and then 25% of any profit that was made. So this gets very complex. Yes. Have you already done this? It's in the process of getting done right now. Can you and are you willing to stop it? I think it's a great idea. It's not a great idea.

It sucks beyond belief. It's a horrible idea. It's going to end in ashes. Please don't do it. Please don't do this. How old are you? 27 okay just when you're 30 and you're married

and you want to refinance the house and you have to buy out the 25 your wife is going to be so pissed at your parents don't do this the value would be going up don't do this you can't afford to buy a house sounds like if you can't afford to buy a house go buy you a house son do not do this you you guys are putting this all together like there's only one thing that can happen and it's everything works out perfect and a hundred percent of the time everything does not work out perfect everything that comes at this if you want to refinance you want to sell they don't want to sell you are now in partnership with people

for no apparent reason except a half a percent no no no no no no, no, no, no, no, no, no, no. And to go back to the first thing, it sounded like at first your parents were just trying to offer you, and it wasn't a good method, but it sounded like they were trying to offer you a break in interest. And my thought would have been like, well, calculate how much it is and just ask for it as a gift. And then you go buy the house. But they're really trying to make a profit. And so it's two things going on. It's you trying to get a house before you can afford it and them trying to invest in real estate, and they don't really have the money to do that either.

So it's two things that are gone awry. This is really bad, Ryan. I really wish I could talk you into not doing it. I don't think I can, though. I think you're too far into it. Yeah, you're done. Okay. Good luck, son. Please don't do it do it i'm gonna tell you one more time

there's 47 ways this can go wrong and only one way it can go right and you're going to experience one of the 47 i'm you called and ask our opinion i've got 30 years on this microphone 40 years of doing one-on-one coaching i have never seen a deal like this work out. They always go sideways. You're asking to have a strain in a relationship with your parents over a stupid house. And you guys have these rainbows and unicorns and skittles in your head that this is all going to work out a certain way, and, honey, it's not. So you're going to do it anyway, and you're going to learn the the lesson the hard way but you can remember the time you called and we told you

not to do it when you're sitting neck deep in the poop you just remember that dave and jade told you not to do it yeah because he's going to be neck deep oh he's going in the poop katie's in pensacola hey katie what's up hi dave and jade Thank you for taking my call. Sure. How can I help? So I just want to ask, what type of savings account should we keep the $110,000 that we have for a down payment on a home in the future? My husband is eligible to retire from the Air Force in three years, but we'll probably wait another two years, so five years total to maybe buy a home. Yeah. Wow.

Nice. Well, if you're going to play close to a five-year window you can talk about putting some or all of it towards something like a standard and poor an s&p 500 mutual fund and you'll make some really good money on it that's what i do okay but it could go down in value you know you could you could put $110,000 in, and it might be worth $100,000. But that would be a highly unusual five-year. Ninety-seven percent of the five-year periods in the stock market's history have made money. So I'm very comfortable with the risk if you put it in and leave it alone five years.

If you're going to leave it alone three years, probably not. I'm probably going to go high yield. If you want to do a blend, I'd do some, like half of it in a mutual fund, an S&P 500 fund, and half of it in a high yield if you want to do a blend i'd do some in the like half of it in a mutual fund and an s&p 500 fund and half of it in a high yield but at least get some of this money working for you because we're talking about you know we're talking about the difference of about ten thousand dollars a year and what you would earn on the money so we're talking about fifty thousand bucks of versus high yield versus a uh a mutual fund over a five-year period of time. I also like the idea of investing it or doing the blend because once you put it, you know, you put in an index fund or you put it where you put it, you're less likely to touch it.

You're less likely to have something pop up like your friend's, you know, wedding in the Caribbean that you think would be a good idea to spend some of that money on, right? Whereas if it's in a high yield, it's easy to grab some of it. You invest it. High yields are a little too accessible. I like trying to keep it out of my own reach. I like to trick myself into becoming wealthy. Yeah, that's good. And trick myself into actually accomplishing my goals. And yeah, that's a good point. You know?

It's a very good point. It's always a wedding in the Caribbean. I don't know why what is it with you in the wedding i don't know that comes up a lot is this a scar in your life it might be it might be a friend out there somewhere that's but you know how it is now suddenly you need a new car oh yeah well you know for rednecks it's we need a bass boat oh need. Need a bass boat. I need a side-by-side to go deer hunting in. Oh, gosh. And they're only 20 grand. You got that sitting in the high yield.

You know, that's all. Got that money sitting over there. Why would we pay a bank interest for the side-by-side? Your brain starts fogging up. And it stops working. You can't see through the windshield anymore. Yeah, you're exactly right. That's a very good point.

So I personally, I'm comfortable knowledge-wise with the history of the stock market, so I'm plunking all of it, if it's me, into an S&P 500, if you've got a four- or five-year window. If you're a little less comfortable, do some there and some otherwise. If you're completely that freaks you out, just put it in a high yield. But you've got the downside of it's too accessible. You know, it becomes a bass boat fund or I need to redecorate the kitchen fund or whatever the crap comes up.

This is The Ramsey Show. We're going cruising, boys and girls. We'd love to have you go with us. We're doing the Ramsey Live Like No One Else Cruise. For those of you that are baby steps forward and beyond, it's your opportunity to celebrate the milestone of getting into wealth-building mode. All the Ramsey personalities, including Jade and I, and my wife Sharon will be with us the entire seven days on a high-end, very nice Holland America, almost brand-new ship.

We're going to Turks and Caicos, St. Thomas, Puerto Rico, the Bahamas. And, man, this thing is packed full. We've got lots of fun, cool friends coming, like Stephen Curtis Chapman is going to hang out with us. Manit Chauhan from the Food Channel will be with us. We've got a lot of other celebs hanging. And you guys come out. It's all Ramsey people on the boat, all celebrating, all saying we lived like no one else now. By God, we're cruising like nobody else.

There you go. It's March, March, March, March, March 22nd through the 29th this coming spring. And if you don't want to pay the whole thing up front, you can save your cabin for only $600, and that'll get you going. But you need to do it because the cabins are going really fast. So get a cabin while you can. RamseySolutions.com slash cruise. Paul's in Buffalo, New York.

Hey, Paul, what's up? Hey, how's it going, man? Better than I deserve. How can we help? So, kind of a crazy life event happened lately. I have kind of a strange uncle. I know him, but probably haven't talked to him in 15, 20 years, and he passed away. And my mother, his sister, is an executive of the estate, and she calls me and says, he left you about a half a million dollars.

You're the guy. I've always heard about a guy with a rich uncle it was you it happened it happened i always i never i didn't know where you were i've always heard about you though paul and buffalo the guy is he's paul and buffalo he's the guy with the rich uncle. Wow, that's so cool, Paul. That's so cool. I hate it when I get a half a million dollars out of the blue. So, it's a good problem to have, but I just don't really know what to do. I've been married for 21 years. Well, not married, but with my wife for 21 years. I'm 37.

We have a house, and we have two beautiful kids. And I listened to your show for a while, and I know it's very centered around getting rid of debt. But I just want to be smart. I've never had this type of, like, influx of cash flow before, and I just don't want to make any mistakes and, you know, set my kids up and obviously take care of us in the immediate. Yeah, that's very wise because this kind of a hit really could change your family tree if

you're careful with it. So that's very wise. And, um, and so when, how long before you actually receive the money, do you think? Um, I mean, they said it's, well, that's another question too. So a lot of it is an investment. And just from things I was reading online, I've seen people where the attorney will liquidate all the investments, and then they get taxed really heavily on it. And I don't know, other things I was reading were like move it to a Roth and then inherit the Roth. I don't know. You can't move dead people's stuff into a Roth. It doesn't work. So that's that's that's internet um garbage um so the investments

investments should not have any investments don't have any taxes honey so the deal is this now the attorney does if the attorney liquidates them or you liquidate them it doesn't matter you now become the owner even if he liquidates them okay you can ask him not to liquidate them and you can do it but here's the here's the tax law on that part and then we'll move on to the rest of it okay so let's say that um part of the 500 000 is uh i'll just make up something home depot stock okay and uncle uncle paid 50 grand for the home Depot stock, but the Home Depot stock's worth 150 now. Your basis as the inheritance in an inheritance is current market value. And so your tax is based on how much above current market value it is. It's called a stepped-up basis.

Okay? Okay. You do not get taxed on what he paid for it. You get taxed only on what it's worth at the time of his death, and if you sell it within six months of his death, it is presumed to have been at market value by the IRS. Okay? So you got no taxes. Okay.

So you take all this stuff, if you want to liquidate all of it and have a half-million-dollar pile of cash in the middle of the table, zero tax. There's no income tax. There's no inheritance tax. Cool. Okay, so that answers that question. So we can move on past that.

Now, then the reason I ask how long before you get it is I want you to start pretending like you were hired suddenly to manage someone's half a million dollars, and you've never done that before, which is exactly what's happened, right? God just gave you a half a million of his money, and God says, how are you going to manage this, son? And you're going, this scares me a little bit. I want to be careful, and that's wise. So what you would do if you were hired by someone and you didn't know what you were doing, you would get some other people on your team that knew what they were doing. And so I want you to begin to gather up your own little personal committee, your own little personal board of directors, so to speak. So we're going to get a mutual fund broker, a SmartVestor Pro off our website in your corner so we're going to get a mutual fund broker a smart investor

pro off our website in your corner we're going to get a an estate planning attorney in your corner we're going to get some tax advice from an elp and back up and make sure that day ramsey actually gave you the right advice a while ago and check that with a pro okay and you can get an elp a tax elp off our site. We don't have estate planning attorneys on our site, but we've got people we recommend for tax in Buffalo and for – if you're going to do any real estate deals, you can go get a real estate person in your corner.

If you need insurance, you need a good insurance broker in your corner. Every one of these people do not qualify to be on your committee unless they have the heart of a teacher, meaning your job is to manage their money. Their job is to teach you enough about their specialty to help you manage the money. Got it. You don't turn it over to them and go, well, I just gave it to this guy to manage, and he lost it all. No, your job is to manage it you're taking advice from these other people and therefore their job is to teach you

they have to have the heart of a teacher does that make sense it does and that will keep you out of trouble do not do anything with this money that you do not understand because it is your responsibility yeah because sometimes these people start talking it sounds like charlie brown's do not understand because it is your responsibility. Yeah. Because sometimes these people start talking and it sounds like Charlie Brown's teacher. Wah, wah, wah, wah, wah, wah, wah, right? You remember that. And so, long time ago on that cartoon. But yeah, anyway, so all that to say, then we're going to have you work the baby steps, right, Jade?

Yeah. Paul, what's your current financial situation? Tell us about your financial life before this money. Yeah, well, that's another interesting thing. I just had a business of 13 years, and I sold it in January. So I have about $100,000 in assets that I still need to kind of get rid of. And I have about $20,000 in cryptocurrency. As far as debt goes, I i have none and my wife has none

we don't have any debt we don't have anything yep mortgage yeah uh we own our house it's we i think we owe about 130 000 and it's worth about 300 okay so first thing i'd probably do after you have those people in place is i definitely want to pay off my mortgage and just be scot-free. And then from there on, I think Dave set you up to have the right folks in your corner to decide what you're going to do about this money, how you're going to invest it, if it's going to be in the stock market, if it's going to be in real estate. And my recommendation is take $620,000 from Bitcoin and sale of business and inheritance and put at the top of the page and spend it. We just spent $130 of it paying off the mortgage.

What are we going to do with the rest of it? Okay, I'll give you, and then I'll tell you one last thing on that. A lump sum invested in a good mutual fund or series of mutual funds, if it averages 10% or more, will double every seven years. You're 37, you said? Yep. Okay. So let's pretend we put 400 in investments. When you're 44, you'll have 700.

When you're 51, you'll have 1.4. When you're 58, you'll have 2.8. Yep. See how this changes your family tree? Exactly. Well, that's the thing like i said it's such yeah it's a good problem but it's kind of it's intimidating it's kind of scary all at once you're like and the other two things you can do with money is have fun with it and be generous with it and you should do some of that with some of this money too notice i didn't invest at all you're debt free you're generous you have some fun, and you invest, and you keep

your stinking hands off of it and let it double. This is The Ramsey Show. Thanks for joining us, America. Jade Walsh, all Ramsey personality, is my co-host. John's in St. Louis. Hey, John, how are you? Not too bad by yourself. Better than I deserve. What's up? Just calling to try to get a little bit of advice from you, Dave, on the way that my wife and I can tackle our monster debt that we have. Currently, without our house, we are at $240,500. Good Lord. Yes. It is is a monster what is the monster um unfortunately it's a lot of credit cards um student loans it's a heloc and a 401k loan as well as two as well as two car

payments you never met a debt you didn't like uh no and unfortunately not what's your income what's the income um our salary wise is 151.6 i broke it down to what our yearly is should be roughly uh 99 840 okay okay so it sounds like you guys i'm just trying to get my head around how this happened. It sounded like you felt like you were making a good income and it was time to just go crazy. Is that right? The credit cards is the biggest issue. How much is that? Unfortunately, of the credit cards, $46,962 as of last month.

How much on the cars uh the cars itself my car is 28 7 28 700 my wife's is 21 000 and mine's due to be paid off in four years hers is due to be paid off in three years well one of them's probably got to go. The 28,000 one, what's it worth? I was not entirely sure. It's a 21 Kia Sorento. It's more of the family car. She has the more gas-efficient car. What does she have? A Nissan Altima. Well, whatever one of these is the least upside down and of the most value, I'd probably try to liquidate one and get into a cash car. So, John, yeah, I don't really care if it's the family car. You people are broke.

You're starving to death making $150,000 a year. You don't get to say it's the family car. You get to say everything's on the table we're selling so much stuff the kids think they're next we're not doing anything until we get this mess cleaned up because you guys have been spending like you're in congress for what 10 how long you've been married 10 years uh four years four years oh my gosh you guys did this in four years? Or did you get started early? Well, I mean, the student loans is all my stuff.

How much is that? Unfortunately, $80,000. Okay. Well, that is the biggest portion, not the credit cards. And then the HELOC. HELOC is how much? The HELOC is $46,000. Okay.

And that was just this past year. Okay. What did you do with that? Which unfortunately helped us pay off a bunch of credit cards. No, you didn't. You moved them. It helped us consolidate them, I should say. Yeah, you moved them onto your house.

And it didn't help you consolidate them. It put your home at risk. Yeah. So it's not a help. And you didn't stop spending. You're still spending more than you make right uh i would say yes yeah have you cut up the credit cards nope uh no unfortunately not okay i own myself i'll use mine primarily for work related which i know dave you i've heard you talk about before. I've expressed in my work they should get us all credit cards so we don't have to use ours.

Hopefully we can get that approved so I can stop using mine when I travel. Apparently that's not working for you. You have $46,000 in credit card debt and a HELOC that's $46,000. So it's basically $90,000 in credit card debt and a HELOC that's $46,000. So it's basically $90,000 in credit card debt. So something's broken with that system. Would you agree? Yes. You don't end up $90,000 in credit card debt when something's working.

So no use of plastic is going to be okay in your house. You guys have to go cold turkey. You don't walk around with a flask in your back pocket if you're trying to quit drinking and so um man how much just just curious for the work part because i want to know how much of that is an excuse how much are you putting on your credit card every month for work i mean it's not that much the one of the card that's got the biggest amount I take the full blame for putting miscellaneous stuff but that's that had nothing to do with work yeah. My point my point is if you're spending a little bit here or there for work and they're reimbursing you I who care you

don't need a credit card for that you shouldn't be doing that but um let's let's reset here for a second are you does this scare you uh yes because it's uh i mean it's continual and i would love for as a family wise we would be better off with you know financially and the credit cards i look at is it's one of the scariest things okay um it's scary it's not the math is not scary what's scary is the pattern of being out of control and staying out of control that's what scares me it's not sustainable you know this is heading towards the wall and you're going to t-bone the wall and just blow the whole thing up right you know that's what's coming because you guys just continue the same pattern that's you you know we're in

you can't get out of a hole by digging out the bottom right i mean so um now how's your wife feeling uh we're both just as stressed with it okay are y'all fighting about this stuff uh we try to talk about it and she gets stressed and doesn't want to talk about it y'all are fighting about this i'm just yeah it would be weird if you're not having a bunch of fights because this stuff is it's the number one cause of divorce in north america it's the number one cause of disagreement in marriage this is money problems and money fights and you got them all up around your ears so here's what we're going to do we're going to help you i want to give you an overarching plan i've been where you are except worse and And I remember

being terrified. And I remember my wife being terrified. And I remember us trying to kill each other. And I don't want that for you. Okay. But the plan I'm going to give you does not have a middle ground. It is not an easy process. The result is a hundred percent. You're going to win and you're going to become a millionaire. But the path to get there is painful because you guys have a series of behaviors, habits, and even language that you use in your own heads and at each other that has got to completely change. Because your behaviors, your habits, and at each other that has got to completely change. Because your behaviors, your habits, and the language you use around this stuff, as soon as I start talking about the car, you start talking, it's a family car.

As if it's a non-starter. It's not a non-starter. It's a stupid car, and your family's almost bankrupt. It's the enemy. It's not the family car. Okay? So you change your vernacular around this you go anything that is between me and freedom is the enemy we are going to freaking war with our lifestyle and our former patterns of doing things we are not going to do this anymore if you're ready to enter into that i can show you you how to do it. If you want to play around and think there's a math trick to hack you out of this,

you got the wrong guy. I can't help you, but I can show you. I've shown millions of people how to get out of debt. We'll put you into Financial Peace University. I'll pay for it free, and we'll pay for you to be on every dollar of the premium side of the app and get you in the every dollar app, and you and your wife sit down together. C together crap i'm not even going to put a coach in your corner we got one of our ramsey coaches in your area i'm going to pay for a personal coach to coach you but only if you're willing to say i'll do whatever i have to do to win okay all right we can get rid of this fear man and here's the weird thing before the debt belief the fear will be gone that you'll still have the debt but you won't have the fear anymore because you'll see

your way out you'll see a light at the end of the tunnel that's not an oncoming train the only thing you know right now is you're stuck and you're not stuck what's stuck is the stupid crap that brought you to here it's the same stupid crap that made me go broke and they got jade 200 what to it 460 460 000 in debt the lady to my right and paid it off her and her husband so you can do this when they weren't making anywhere near 100 and a half so you hang on this place is about hope but it's not about false hope you're gonna live like no one else man your friends are gonna think you joined a cult you're gonna be live like no one else, man. Your friends are going to think you joined a cult. You're going to be going cray-cray, man, completely different than anything you've ever done in your life,

but you'll be free in 36 months. Hang on. I'll pay for it. Christian will pick up and encourage you to continue to give us that help and the help is you subscribe to the shows so if you're watching or listening on youtube or uh spotify apple google play whatever just click the follow or the subscribe button it on YouTube or Spotify, Apple, Google Play, whatever. Just click the follow or the subscribe button. It makes a big difference in the way those algorithms are handled with those platforms, whether they put the show out or not, how they push it forward to other people to see

it. Thank you for doing that. Share the show. Let people know we're here. Click a link and send it to somebody. I sent a funny Instagram to all my buddies this morning. That happens all the time, right? And you can do all that share stuff that makes somebody laugh or makes them think or inspires them. And this show does all of those things. And of course, leave a nice five-star review. We appreciate all of that.

We know you're doing it because our numbers are way up. Tim's in Roanoke. Hi, Tim. How are you? Hi, Dave. Thanks for taking my call. Sure. What's up? So my wife and I are about halfway through baby step three, and so we're looking toward investing something that's outside of my work, TSP, and her work, 401K.

Good. And we've reached out to a financial planner and i'm just one i don't want to make up another mistake with money because i've done a lot of them so i'm just wondering you know how much should i be paying this guy's a financial planning fee and then did you go to a smart investor pro we did okay we did um they have aor Pro, that particular one, has a financial planning fee? Yeah, they have a, they call it a retirement planning fee. It's an annual fee. And then there's, then as I was reading in there, depending on what investment vehicle you're using,

if it's like above $50,000, then it's a percentage. And then below that, it's like above 50 000 then it's a percentage and then below that it's the brokerage fees okay was the way i was reading it but i don't i don't i don't understand that and we're meeting with the guy tomorrow and i just most of the smart investor pros run on just managed accounts and managed accounts is simple um there's no commissions and they charge one percent of the balance now some of them do have a minimum you know fifty thousand a balance or whatever till they get there and uh you don't need to pay an annual fee i don't know what that's for just for planning because you're not going to be doing that much planning annually now you may want

to pay an upfront fee to help you get your will started if you don't have one, help you do some other financial planning things. How much was that fee? $600. Okay, that's not unreasonable now. Okay. Okay. All right, because I mean, a lot of people in the financial planning world, there are people that do not sell anything they do not sell insurance they don't sell mutual funds they don't sell wills they don't sell anything and they just charge for their hours that's called fee-based planning okay i don't generally recommend those because then you're also going to pay commissions on top of that and you can get the same advice basically for 600 instead of 4 000 uh or for uh you know if you move a couple hundred thousand bucks over there you're

not going to pay anything but one percent and they're just going to take care of your plan your annual planning and your other stuff too there's not that much to this and so different uh smart investor pros run different things but as to my knowledge we don't have any fee only all of them are managing mutual funds for your roth ira your kids college or roll over from your old job or whatever and they're helping you do that and one percent on the managed accounts is what almost all of them are doing i mean my only question would be at this point in your investing you haven't even begun yet. How much financial planning do you need each year?

That would be my question. We didn't know. Right. You know, not, not a ton, but 600 bucks is not, you know, it's not 6,000. So that's true. The other thing you can do is this meet with that guy and just get a sense of the spirit. And as you're driving away, ask your wife.

Do not ask her what she thinks. Ask her how she feels about that meeting. The reason I'm calling is based on how she feels. Okay. What's her feeling? Well, they sent us their disclosure agreement and the contract. She started reading the contract. She's like, well, wait a minute. Now we're getting tied into a contract, and there's all these different fees

and whatnot and getting nickel and dime to death, and I don't want to get involved in that. Okay. Go meet with them and see if that spirit changes. We have. We've met with them twice already. Oh, okay. Okay.

Then don't do it. Okay. You're interviewing them. Yeah. Click on SmartVestor Pro and go talk to another one. Okay. There's more than one in your area. And, you know, there's probably one just doing a 1% management fee.

And so that really wouldn't be that unusual. So, yeah. Listen, dude, 100% of the time my wife does not feel good about a business relationship i'm entering into we don't do it period period and i will ask her i'll challenge her are you sure that's god's spirit not last night's pizza right i'm gonna double check but she will say no it just doesn't feel right and every time that one wins, Proverbs 31, who can find a virtuous wife, the heart of her husband safely trusts her, and he will have no lack of gain.

Huh. Look at that. So, yeah, don't do it. I don't care if it's our – the guy might not be a bad guy. Sure. But he's not your guy. And that's exactly it, Dave. I like that you said it that way because somebody else might call the guy work with him and be like this guy's great how many

there's been many times where somebody has recommended somebody to me they love them and then I go and I'm like this not my guy yeah so it happens hey Christian I do want to learn a little bit more about this guy I don't think he's doing anything wrong but I want to learn a little bit about him so find out who it was okay I'm gonna put them on hold all right open phones at 888-825-5225 tom is with us in san diego hey tom how are you hey dave i'm good how are you guys better than we deserve what's up wonderful glad to hear it um i am out here and i'm trying to figure out what the right move is to do with my house. I went through FPU at the beginning of the year and I'm upside down on the car payment. Like I make good money, but I'm, I'm at a very high in debt to income threshold on my, on my house payment.

What do you, how much is your house payment? 4,500. And what do you bring home? Uh, gross is about $140,000, $145,000. What are you bringing home a month? Every month. Just over $11,000. Yeah, that's pretty high. Okay. And how much is your car payment? $860,000. Holy. Well, there is a bigger problem. Yep. And that's, so this is the problem I faced. I'm all about the dump the Tahoe plan, but because I'm too upside down on it, there's no way. What do you owe?

I got hit really hard. 30, what's the number? 30, 39. Okay. And what do you think it's worth? Well, according to the KBB estimates, it books at like $24,000. Private sale? Private.

$24,000? And so trade would be like $20,000, yeah. What'd you do, tear it up? No. Roll negative equity from the other deal in it? Negative. No, I didn't. It's a high interest oh wait a minute wait a minute wait a minute wait a minute what's your interest rate 12 okay the 40 or the 39 is probably

not your payoff that's probably when you do a subprime loan they generally put it on the books on top total of all payments that's different than an early payoff number you're asking for did you ask what your account balance is and you got 39 no i asked them what their pay of the 10-day payoff and they gave me a 20-day payoff which i've never heard of but okay that so that's an actual payoff number that was an actual payoff number what car is this there's a jeep man you got so screwed okay so the i'm really close to a breakthrough on being able to refinance this house and it would cut my payment down significantly but the trouble is because i have this like i'm trying to go back and forth between baby steps one and two. And so I had my step one, I'm crushing step two. And then I got hit with like $20,000 of home

repairs in June. And so I just got nothing. So it's starting all over. And so I just keep getting overwhelmed with it and trying to figure out how I should do it. Cause if I give up everything, I'll do it. Yeah. I mean, something's got to go, and you need to decide what it is because nothing you're describing is fun. We've got to get rid of the cheap and maybe the house. You decide, but you can get more of both. So I wouldn't hang on to them for dear life. I'd just say, okay, God, get me out of this. you