The Ramsey Show - App - Quit Trying To Keep Up With the Jones’!

Episode Date: May 17, 2022

Dave Ramsey & George Kamel discuss: Is it possible to overfund a TSP? Knowing when it's time to change careers, What to do when you find out you're about to get a million dollar check. 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

I'm out. 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. George Campbell, Ramsey personality, is my co-host today. This is the Ramsey Show. We help people build wealth, do work that they love, and create actual amazing relationships.

Open phones at 888-825-5225. Starting off this hour is Josh in Dallas, Texas. Hey, Josh, how are you? Good. How are you doing, Dave? Better than we deserve, brother. How can we help? Yes, I'm a federal employee, and I heard you talking to another controller not too long ago about TSP,

and I was wondering if you could be given too much in the TSP that could reduce your income at the same time. I didn't know if that was possible. If you could put too much into the TSP and reduce your income. Correct. Oh, you're talking about taxable income. So you would use a traditional income. Yeah. Aren't they offering a Roth TSP now?

Yes, we do have Roth TSP. I'm on the traditional TSP as well. I'm trying to do a budget. I did Fpu about seven years ago with my wife but we kind of gotten out of control lately and i'm sitting there trying to figure out where's all my money going i don't know if it's gas and inflation mortgage so i'm just trying to get a control of my money and budgeting but i didn't know if you could go to us uh too much in the tsp well or even taxes yeah uh we recommend a roth more than a traditional

and a match more than a roth and uh some tsp has matched most does not and uh so i would i would i wouldn't move the stuff that's in traditional over but i would from this point forward make my contributions into the roth and um uh but all of that would be after you're out of debt and have an emergency fund is that where you're at would you yeah that's where i'm at i'm kind of in debt um but i was wondering if i could if i should stop doing tsp you're in debt and Yeah, in debt. What kind of debt have you got? Credit card and a used car payment. What's the total amount of the debt? Let's see, five on the credit card and about 20 on the car, used car. Okay. Well, how long would it take to pay off all this debt right now if you got intense about it? Maybe three months.

Okay. What's your household income? Well, actually, let's just say on the credit card, about three months, and then the car, maybe another year. Oh. What's your household income? Before taxes in 94, so about 000 a month um why does it say at home mom okay so all right well josh we we have figured out that the shortest path the quickest path the most sure path to wealth is to get control of your largest wealth building tool, which is your income, meaning to get debt paid off before we start investing. And so we tell folks to work a plan called the baby steps and a baby step one is you

stop all investing temporarily and have a thousand dollars in the bank. How much do you have in savings? It's not retirement. Uh, savings. How much do you have in savings that's not retirement? Savings, we do have an emergency fund. How much? $900, and I'm getting close to doing $1,000 on the emergency fund. So you've kind of heard about this then. Yes, yes.

We did FBU a while back, and now we're trying to get back into it, but we gave away our books and everything. Okay. Well, we're going to put you back through it because we want you okay we want you didn't pass the first time right right so uh so you know we're going to do the baby steps which means we're going to temporarily stop retirement we're going to tighten this budget down we're not doing anything until we get these $25,000 paid off and i think you can do it probably a little faster than you're thinking. You probably are, you know, should be able to do it in a year from today, 100% done.

And then when you're out of debt, everything but the house, that's going to feel pretty good. Then we're going to take the $1,000 account, build it up to three to six months of expenses. Then we'll start the TSP back up in the Roth. Okay. And Josh, I know it hurts to pause that investing. You're excited about building wealth. But the truth is, when you pause investing, it's going to accelerate the debt payoff. And when you accelerate the debt payoff, you can then accelerate the investing. Because a lot of people are scraping by trying to throw percentages at

the investment. But the truth is, instead of putting five percent in and you're hoping to get to ten you're going to be able to put 15 when you don't owe anyone anything and so that's what we want for you and that's what i did and man it's a game changer so hang on uh we're going to have austin pick up and get you signed up for financial peace university again as our gift and that includes the every dollar uh premium. It's all a part of Ramsey Plus. We'll give you a one-year subscription to all of it, and you can go right back through the lessons. We're getting ready to launch brand-new Financial Peace University lessons, and one of the lessons, folks, you'll be seeing in about a couple weeks from now,

features Dr. John Deloney and George Camel talking about the psychology of marketing and how that impacts your spending. And it's a brand-new lesson that we've never had on FPU, and it's really good. It's really good. I was playing CEO and going through the tape. Screening it? Going through and screening all of these the other day, and I'm like, you know what, this is the best Financial Peace University lessons we've ever done.

Wow. I've probably done 10, 15 shoots over the years, different versions of it, you know, on the video and then on the DVD and then, of course, online now. And we've added and changed and twisted and learned to teach the curriculum and shortened it and being more direct, more concise, more to the point. And it's, I've got to tell you, George, I mean, you, Rachel, Deloney, it's really, really good. It's the new Financial Peace University lessons.

It'll just be starting here in a couple weeks. You guys are going to want to be in Ramsey Plus and get that going because they're strong. And if you've got friends or relatives that have never been through it and you buy them a one-year membership to Financial peace and and all that they'll get these new lessons and um you know we're i was in a meeting last night with a bunch of the leadership team there they've got all kinds of plans for the online experience with the workbook being online and all that oh yeah you know we're stuff on the white board that's beautiful it's really that's awesome well you know financial peace university is the

thing that changed my life when I started working here, and so it's an honor to be in it. I mean, I'm just pinching myself going, oh, my gosh, it's amazing. I get to be in this and help create that life change that I experienced. Yeah, and you're good. I mean, you really did a good job. That means a lot. Thank you.

And the production values, the staging, and the process, the people, our guys just knocked it out. Our team's amazing. They make us look good. They knocked it out of the park, baby. Check it out. Yeah, you can do that. And the way the thing's set up now, guys, it's pretty easy to gift it to a friend or a relative. Yeah, we got our own website for that, right?

Whatever, yeah. RamseySolutions.com slash gift. Yeah. That's pretty cool. And, you know, you can set it up easy and, you know, just like we just gave it to him. You know, it's a lot of you. I mean, like 10 million people have been through it. That's amazing.

Well, and your name doesn't have to be a cuss word. Instead of talking about Dave, you just go, hey, how about this? I'll gift you Ramsey Plus. Go watch the videos. Done. That's a lot of cussing. I like that. This is The Ramsey Show. Life has thrown a lot at us these past few years, hasn't it?

You've weathered so much, and you're still standing. But it's taken a toll on many areas of our lives. Well, there's hope. Smart Conference is back, and this fall we're bringing this world-class event to Dallas. You'll walk away empowered to grow in every area of your life. We'll be covering topics including personal development, building wealth, leadership, relationships, marriage, and your career. Joining me will be Rachel Cruz, Dr. John Deloney, Ken Coleman, George Camel, Christina Ellis, and Craig and Amy Groeschel.

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more. Again, that's ramseysolutions.com slash events. George Campbell Ramsey personality is my co-host today Laura's in St. Louis hey Laura what's up hey hi Dave and George thank you for taking my call and thank you for what you do I actually became a financial advisor because of you wow very. Very cool. We're honored. Thank you. Yeah. Thanks. And I got my CFP. Good for you. I'll do the best I can. So I started from scratch and then built a nice business. However, I'm in an area that is kind of overrun by men and I am the one that they bully.

So I've made an offer with another firm. How do you make that decision? And do you think my clients will follow? Because the idea of starting over scares me sounds to me like you've already made the decision yeah but yeah it's just um i'm going to jump off of this diving board and i know i'm not going to jump off of this diving board, and I know I'm not going to get hurt, but I've never done it before, and so it still scares me. Right.

But I'm going to jump. That's really what you just said. You're not going to stay there. You have too much self-respect to stay in a situation that you just described to me. My fear is that the clients won't follow because I can't contact them for a year. Your fear of that does not supersede your fear of staying in this toxic situation. True.

So you're leaving. So build an emergency fund before I leave because I'll be starting over with no salary. You single? No. You broke? No. build an emergency fund before i leave because i'll be starting over with no salary you single no you broke no okay so why do you have to do all that you're all right you're not gonna go hungry and here's the thing okay um you built this book of business that did not come because of one of the bullies right right so why in the world would they stay with the bully they came to you in the first place sure have you i mean from a from a practical standpoint now do they have any kind of a legal hold on that book yes oh so what happens if your client walks in and says i I'm going to leave and I'm going to go to Laura?

Nothing. But you can't solicit them? Yes. Okay. So you've got a non-solicitation when you leave. But if they come to you without you reaching out to them, that's okay? Yes. Okay.

So you can't proactively. How often do you usually have contact with them? With my top 100? Mm-hmm. At least quarterly. Okay. So kind of walk it through with me. What do you think will happen when top 100 calls in,

because you haven't called them because you're not allowed to, and they say, oh, Laura left? I would imagine they would ask where I went. Will they tell you? Tell them? They have to, by law, send out a letter saying where I went. In advance? Yes.

Well, as soon as I put in my resignation, when I leave the firm, then they have to send out a letter saying where I went. And the new firm is going to do all sorts of advertising. Okay. Oh, this is a no-brainer. Sounds like free marketing to me. They're sending out a letter marketing your new company. Listen, you're going to get 60 or 80 of them because you're a relationship person.

You built relationships with them and trust with them. They work with you for a reason, and it's because you're laura it's not just because you know stuff that's what someone else said i just wanted to hear it from you well i mean you and i both know the cfp world okay yes and uh there are cfps that are relational they they to the point that uh you will end up working with some of these people's grandkids over the decades um and then there are cfps that are certified financial pharisees that's true too and they're they're they're legalistic maniacs and all they are is super nerds and they have the relationship skills of a dead doorknob right right and that i mean that's the business that you're in and and you know so you got no competition that's why the

dave ramsey thing's such a big deal because i was the first guy who said money stuff out loud in a way that wasn't so nerdy and talking down to people like they were all idiots i go hey that's stupid but i'm stupid too i don't go like you're stupid and i'm smart you know and so that that's the world you're gonna do fine you're gonna do fine how long you take you build this book of business eight years oh you're gonna be fine how old are you 51 51 yes oh you're almost dead you're not gonna make it that's my concern dave you're 10 years older than me and i learned about you in my 30s you're just getting started that was an underhand pitch kiddo

oh you're gonna be amazing dave's about to hit his midlife crisis so what do you what do you think joe what do you think the percentages will follow her you know the business too yeah i would say 50 of the clients are going to jump over because they don't want to deal with whoever the new guy is at this i'd say it's more than that i mean wouldn't you jump i mean oh yeah you don't go to a company our smart investor pros don't retain i just did this with my barber i like my barber i don't care about where he works Our SmartVestor pros don't retain. I just did this with my barber. I like my barber. I don't care about where he works.

I just want to follow my barber because I trust him. Not a problem I have, George. So you don't have to deal with that, Dave. You're right. That's the one thing I have on you is hair. That's right. Definitely. Much better hair. But it's the same concept.

Yeah, it is. I trust my barber. We have a relationship. I tried the other guys. It didn't work out with them. So I moved with him to his new business that's it that is a good example i mean and you know your doctor i just my doctor just changed he changed his hospital i didn't go back to the goobs that he used to work with i went when he i went with the guy the new goobs that he moved to you know i mean

and it's a freaking doctor i don't i don't need to start over with this guy yeah that's not i don't need to it's too much trouble too much medical history oh yeah because i don't have no i have no medical history that's the point i'm sure you go to the doctor like once every eight years at least you don't strike me like the type that has a sniffle and decides to go see the doctor i he the only reason he knows me is we're just personal friends outside of work so unless dave's on a stretcher the point though is not that the point is she's gonna do fabulous because you can just tell talking to her she i mean i trust her just

talking to her for a minute yeah she the way she carries herself her vernacular her voice tone her cadence she's a she's you've since uh a solid person of integrity that is not in a hurry and not greedy she's actually worried about them not just her that's a unicorn in the financial planning world they're out there i mean they're smart our smart mr pros fall in that category they're those kinds of people but the rest of them i mean are not not everybody that's not smart mr pro but i mean there's too many people in the business that are all about super nerding um or they're uh they just get caught up in the nuances of stuff but she's gonna do great i i think i think you're wrong george i think it's 75 so laura you call us back call us back in six months and tell us who won the bet. George's got his money on 50.

I got my money on 75. I play conservative. I know. I'm not like Rachel at the slots. But I'm a big Laura fan. That's fair. I think this is where it's going. All right.

This is good stuff. Sylvana is with us in New York City. Is it Sylvana? Is that correct? It's Sylvana. Sylvana. I apologize. How can I help?

Hi. So I am a current college student, my second year. I just transferred last year from a community college. So this is my first year at a four-year college. I still have like about two and a half more years to go to finish my degree in computer engineering. Problem arises that I don't qualify for any financial aid whatsoever under my parents are divorced. So under my mom, nothing because she makes way too much money. But scholarships and work, you qualify for jobs and you qualify for scholarships. Scholarships?

I haven't received any. Well, you haven't asked for any. There's not a scholarship, Ferry. How many have you applied for? I've lost count. I haven't even kept track. I've applied for everything. Okay, you should have applied for? I've lost count. I haven't even kept track. I've applied for everything. Okay, you should have applied for 200 by now, not 20.

And 20 is the number that you've actually applied for. You have to go for a whole bunch of them. We have Christina Ellis Ramsey personality. She got a half a million dollars in scholarships. Half a million dollars. You don't need that much. So scholarships. A half a million dollars. You don't need that much. So, scholarships. Oh, and by the way, kiddo, lots of people out there begging for people to work right now.

You can make serious money in New York City right now because nobody's working. Go to work and work your butt off and you can get through school. I promise you. Keep your expenses down and do it. George Campbell, Ramsey personality, is my co-host. We invite you to stop by Ramsey Solutions if you're in the Nashville area. We have a big visitor center. We do the show on the glass. And so you can watch the zoo animals inside the glass doing our thing.

And we're here for three hours every afternoon from 1 to 4 Central Time. There's free coffee and free cookies. And it all smells good and tastes good and nice people around. There's usually 50 to 200 folks hanging out out here. And on the lobby, in the lobby, on the debt-free stage, Colin and Julie are joining us. Hey, guys. How are you? Hey, Dave. How are you? Where do you guys live?

Gainesville, Georgia. Ah, the swamp. All right. Very cool. Well, welcome to Nashville. Good to have you. How much debt have you paid off? $136,000 in 41 months. Way to go.

And your range of income during that time? $118,000 to $138,000. Cool. What do you guys do for a living? I'm an engineer and call it a realtor. Ah, very good. Very good. How long have you all been married?

Three years. So you started this journey a little bit before marriage, each of you working on yours, and then combine incomes and get after it, huh? Correct. All right. So all this happened, I guess, after college. So what kind of debt was this? Student loans or what?

It was a mortgage. You paid off your house? Oh, my gosh. And you've been married three years? How old are you guys? I'm 31, and she's 29. Oh, my goodness. Get out of here.

This is awesome. You're so weird. Way to go. 31 and she's 29. Oh my goodness. Get out of here. This is awesome. You're so weird. Way to go. 31 and 29. So what's this house worth, Mr. Realtor? Right now, we could probably hawk it for 330 if we wanted to, but we're renovating, so not yet. That is amazing.

Wow. All right. Tell me how you become a genius this early in life. What happened? What's the deal? Well, Julie's the genius. I'm just the voice behind everything, but she's the brains behind the operation. And we started the journey in 2018.

We bought our home in 2017, but we were day-vish. And then we were both working second shift and had no social life. So we were like, well, what are we going to put this money towards? So we started the journey and decided to get after a goal we're very goal oriented yeah i guess so we got two great careers and very cool when you don't have a social life you can pay off the house that's there it is i'm impressed so did you guys start your marriage off debt-free well uh so three years into it so so we didn't have any debt except for the mortgage whenever we got married. Right. Yeah, just the mortgage.

That's amazing. So how did you guys learn this whole Ramsey stuff? Julie was the one that got us on board. I was very tough to get going at first. And then once we started seeing how quickly we could attack it whenever we you know set our mind to it it was it was awesome wow were you a realtor at the time i started off in logistics and we decided that wasn't for me and moved to real estate and you know first two years you know is the roller coaster of course yeah and things have started

looking looking great. So that's where we're at now. Way to go, you guys. You're impressive. This is amazing. I mean, you did this really fast, really early, and just knocked it out. House and how does it feel to not have a payment in the world? Pretty weird.

Yeah. It changes the way you handle yourself when you're selling a piece of real estate. It certainly does. I encourage all my clients to knock it out as soon as they can. Yeah, but I mean, when you don't have any payments, you don't have to make the sale. Right. And so you just think about them, you do the right thing, and it ends up you end up making more sales because you're just relaxed. You're not desperate.

Yeah, and I'm put on this earth to serve people, and I don't care about their commission. I just want to help them. Yeah, and now you really don't have to care about the commission, yeah. So what was it like making that final payment? Was it anticlimactic, or was it everything you hoped for? A little anticlimactic. It took them weeks to send us that letter. Payoff letter.

Yeah, but we did do a mortgage-burning party, which nobody knows about anymore. And we had a champagne battle in our front yard. Oh, that's fun. It was Colin's dream to put on our scuba mask and do this. This is a great – you've got to go watch on YouTube because this is hilarious. Oh, this is great. Who was there? Family.

Is that family gathering around? What is that? A lot of family, a couple neighbors. But Julie definitely won the champagne battle. I started off strong, and she just came in and just absolutely blasted me in the face well you're messing with an engineer i mean come on she had this figured out i should have known better yeah that's it wow so did your family and friends think you guys are weird but we're on board we're happy for you yep so our parents were huge cheerleaders throughout and you know

a lot of our friends were kind of scratching their heads, but we knew what we wanted, and more than anything, we wanted to get that done so we could renovate the home and that kind of thing. Yeah. What are you doing? What's the renovation? So right now we're in the middle of the master bathroom, and so we just got to tile that up now.

But, yeah, we're excited, and we've just found out we're having a baby. We're due in November. Hey! Life is great. Oh, man. So I got to remodel. I got a November 6th date that I got to get everything done by. Now we have a new goal.

Oh, yeah. Got to have a deadline. Way to go, you guys. Life is so good. So one of the things we found in the uh millionaire study that we did studying 10 000 millionaires the number one uh occupation that becomes a millionaire is engineer and so here we go you're just because you're process people and you get it you know and real estate agents that are goal-oriented like this they fall right in there too so that that's uh non-goal-oriented real estate agents.

Now, that's a different story. But, yeah. Well done, you guys. We're proud of you. What do you tell people the key to getting out of debt is? Appreciate what you have, your people and your things. Right. And also combine your finances.

Build trust. Absolutely. You've got to have the same checking account. And everybody's got to be on board. Transparency. We've never been the ones to keep up with the Joneses, and so that was definitely a helping factor. We don't spend money if we don't have to.

Yeah. Good. Good for you. Well done, you guys. Sharp young couple. Yeah. This is inspiring. I'm seeing a trend here, Dave.

We're going to see more people in their 20s and early 30s paying off their homes, which means more millionaires earlier. I think we're stirring up a ruckus, George. I like this. What if we could make the government irrelevant? That's a goal. I can get behind that. There we go. I'm with this all the way.

You guys are amazing. Way to go, you guys. Way to go. Very good. We've got a copy of Baby Steps Millionaires for you. That's the next chapter in your story for sure. And also a copy of the Total Money Makeover for you to give away to somebody. Maybe you'll inspire one of your buddies to actually follow in your footsteps.

You never know when they see you out in the front yard with a scoop of mass and champagne. They want to know what's going on. Yeah, so that's good stuff. And also, we're going to give you a gift card for Financial Peace University and the Every Dollar Premium and a Ramsey Plus subscription for a year, and all of that tied in. And you can give that to somebody and get them started, or you guys can go through it as well.

And good stuff, very good stuff. And congratulations on the new baby on the way. That's just awesome. Life is good. Very, very cool. Good for you guys. Colin and Julie, Gainesville georgia 29 31 years old they have a 330 000 house that is paid for 136 000 in debt paid off in 41 months making 118

to 138 hadn't even married 41 months i've been working on it excellent count it down let's hear a debt-free scream three two one we're debt-free wow our millionaire study found the average millionaire pays off their home in 11 years and so these folks right here above average did it in 31 months 41 months wow yeah yeah that's um here's the thing if you're out there and you're stumbling on this show for the first time or the sixth time there's a reason we do this these are actual real people we don't tell them what to say um the matter of of fact, they flew or drove to Nashville from Florida to stand on the stage to have that moment, that milestone, and scream in front of 22 million people on podcasts, radio, and YouTube and have a moment there because they wanted to inspire you.

They wanted you to know you can do it. And you know what? You can do it. And you know what? You can do it. And if you think you can or you think you can't, you're right. That's what Henry Ford said, and I think he was on to something. This is The Ramsey Show. We'll be right back. Our Scripture of the Day, proverbs 19 23 the fear of the lord leads to life then one rests content untouched by trouble albert einstein says whoever is careless with the truth in small matters cannot be trusted in important affairs. No doubt about it. Open phones at 888-825-5225.

Paul is with us in Jackson, Mississippi. Hey, Paul, how are you? Doing all right, man. How are you doing? Better than I deserve. What's up? Well, I've come into a predicament here that a lot of people don't don't get the chance to do um here in about four months i'm going to be receiving a check for about 1.2 million dollars

wow um how'd that where'd that come from um a a land deal okay so you you had a piece of land that you sold and it's gonna you're gonna net you 1.2 million well actually it's sort of like a finder's fee i found some land took it to a developer um it was worth a lot of money um and he's going to turn it around so that's going to be my percentage of the profit wow very nice okay i hate it when that happens good job if you find any more let me know absolutely okay how can we help but yeah um i'm 27 um i have about 50 000 in debt um and taking in this kind of money it's great but it's also kind of scary because

I don't know what to do. Well, that's a lot of wisdom. It's why it's wise to be scared. If you were strutting around acting like you knew what to do and you'd never done it before, that would be the first sign you were going to lose the money. So, um, really good, really good position to take a healthy kind of fear, not toxic fear, not being anxiety-ridden or something, but just going, ah, this scares me a little bit.

Like, this is a really powerful car, and I'm not that great a driver yet. Right. Yeah. Cool. So should I – I don't own a home right now. I'm renting. Should I take, I don't know, $200,000 and put it down on a house? Or should – I mean, should I reinvest this money? Or – you know, and I have a day job as well.

All this side income that I have is working from 4.30 to 10 o'clock at night and on Saturdays and Sundays. Wow. Not a bad side hustle. Yes. I've always been really driven. So what do you make a year on your day job? $70,000. Okay.

And you're used to living on that? Oh, yes. Okay. All right. Well, you can do a lot of different things paul um i'll give you a couple of things that uh first let me throw some just basic ideas at you and then i'll throw some conceptual ideas at you as well okay basic idea is um write a check pay off the debt okay okay you said you had 5050,000 in debt, right?

Yes, sir. Okay, so you write a check and you pay off the debt. That's thing one. Thing two is you need to sit down with a good tax pro and calculate what the taxes are going to be on this and then just set that aside and pretend like it's not yours because it's not yours. You're going to get in a pinch if you start screwing around with a portion of this that is taxes.

So just set aside an account over there and be ready for next april when it rolls around uh and hold on the money as long as you can hold on to it but just put it in a money market account and pretend like you don't own it anymore and that's going to be substantial amount of money i figured it would be around 250 yeah i think probably maybe it's probably 300 yeah but sit down with your tax pro and calculate it exactly and set that aside. Okay? And then that tells you what you've got to work with. Okay?

So let's call it $300,000, and then let's call the other $50,000, and that gets us down to $850,000. Okay? Correct. And what would you, if you were going to buy a home, do you want a house? You know, not necessarily. Not in the market that it is right now i don't want to pay you know i don't want to pay three hundred thousand dollars for a house

that's worth 175 honey it's worth 300 it's not worth 175 okay it's not coming back down okay the real estate prices have retreated in the history of the United States never. Okay. Long term. Well, that makes me a little bit more comfortable. I mean, we had one retreat in the 30s, and it came back up. We had another retreat in the 08, and it came back up. And those are the only two times it ever went backwards, and it came back up.

And so we're not going to see a retreat as a result of this mess we're in right now. But we are going to see a slowing in growth. But you're a single 27-year-old guy. You may not want to screw with the house. You may want to get you a nice condo where you don't have to mess with stuff, right? I don't know what your living situation is. But I would go pay cash for a residence. Okay.

Whatever that is. And so let's call that $300,000. That still leaves you $550,000 laying around. What are you driving? What are you driving? Whatever that is. So let's call that $300. That still leaves you $550 laying around. What are you driving? What are you driving? I've got a 2018 F-250. Okay.

That's where all my debt is. Okay. Oh, that's the truck. Okay. So you're paying off the truck. Keep the truck. It's a great car. Keep it. Okay.

What's your suggestion? Well, beyond that, I mean, you can always park extra money in a high-y yield savings account and use it towards your next goal. So I love the idea of getting a reasonable residence. Let's pay off all the debt. Let's get our emergency fund in place. So set aside maybe, you know, 20, 30K over here for that. And beyond that, look at what your next goals are. Maybe you want to do real estate investing and you want to pay cash for that. Maybe you want to go on some vacations. Maybe you want to set it aside because you don't know what's going to happen in the next five years maybe you meet someone you get married and so i like the idea of parking a lot of this aside once we have our house paid for yeah nothing wrong with that at all here's the thing if you want to deal

with the fear like sometimes i talk to someone that's inherited two million dollars or something and they're like i don't know what to do. I don't know anything about money. And so, you know, we put them through Financial Peace University immediately, which we're going to do for you. Okay, I'm going to pay for you to go through it because I want you to get the basics on handling money down. And then you kind of build yourself a little board of directors for this million-dollar business.

And the board of directors is a good insurance agent, a good estate planning attorney that helps you get a will in place, a good tax professional in your corner. It sounds like you already know a lot about real estate, but you may, you know, if you want to put a real estate person in your corner, that's fine. But you put some experts around you that will teach you different things that you need to know to be able to do things that you need to know uh to be able to do things that you don't know how to do um my for instance my estate plan is very complicated um there's no possible way i could have invented with my knowledge base my estate plan so i have paid an estate planning lawyer a lot of money to keep my family from having to pay tens of millions of

dollars in taxes after I die. Because they tax you twice in the U.S. now. Because if you're rich, you must be evil and you should be punished. So, but the, you know, that's an example. I don't do my own taxes. And I could probably muddle through, but I probably miss some stuff. I don't pull my own teeth either. So, you know

that that's the thing you're dealing with so you know you kind of get some advisors around you so that you've got and you don't have to pay them anything they're just there and you develop a relationship and get maybe a good maybe meet with one of the smart investor pros about investing in mutual funds you may want to take that half million you may be a real estate guy that wants to do some deals and just do them all with cash. And you can't mess them up if you're doing them with cash. Because I've never seen a single piece of real estate in my life go to zero. And, you know, it's not Bitcoin.

I mean, it can't go to zero. So, you know, if you want to buy a piece of land and you want to fool with it, flip it over. You want to buy a property and flip it. Or you want to buy a piece of land and you want to fool with it, flip it over. You want to buy a property and flip it. Or you want to buy some properties that create income, that's all okay. Good news about Jackson, Mississippi, it is a reasonable real estate market, much more so than a lot of areas of the country. So a lot of stuff you can do there. You've got a lot of options.

Congratulations, sir. That's amazing. Very proud of you. I want this to set him up for the future he's 27 and if he manages this money well he's going to be able to retire early do whatever he wants to do well i mean if you invest a half million dollars and you made 10 that's 50 000 a year that's not bad you know and you got taxes on that and other stuff and it won't be 10 a year every year but you make 10 average but he can about replace his income if he invests this. Yeah, get real close. And if you left it alone, you know, it'll double every seven years. So in seven years, he's 27.

When he's 34, you know, he'd have a million. And so when he's 41, he'd have two million. Wow. And just off of that. That's incredible. You know, it's something to think about. Yeah. But, you know, that – but, again, that's investing it in mutual funds, leaving it alone.

But if you're going to fool real estate, you can probably make more than that, but you've got more hassle and expertise involved. That puts us out of the Ramsey Show and the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Do you love a good day, Brandt? Want to see the latest Ramsey Show videos going viral?

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