The Ramsey Show - App - Respect Your Spouse Enough to Tell Them "No" (Hour 1)

Episode Date: December 15, 2020

Relationships, Business, Investing, Taxes, Debt Sign Up for a FREE trial of Ramsey+ TODAY: https://bit.ly/31ricKt  Tools to get you started:  Debt Calculator: https://bit.ly/2QIoSPV Insurance Coverage Checkup: https://bit.ly/2BrqEuo Complete Guide to Budgeting: https://bit.ly/2QEyonc Check out more Ramsey Network podcasts: https://bit.ly/2JgzaQR

🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave 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. Dr. John Deloney, Ramsey personality and best-selling author of the book Redefining Anxiety, is my co-host today. He's answering your questions about your life. I'll answer your questions about your money, and we'll probably both answer your questions anyway.

Open phones, 888-825-5225. That's 888-825-5225. James starts off this hour in Tampa, Florida. Hi, James. Welcome to the Dave Ramsey Show. Hey, Dave and Dr. D. How are you guys? Great, man.

How can we help? So my question for you guys today is I am planning on proposing to my girlfriend in the coming year. Congratulations. And I appreciate that. Really excited. We've been together for about three, just over three years now. And so, yeah, just ready to take that next step forward. Started looking at rings and things like that.

And my question, though, is, so I am debt-free, but she has quite a bit of debt. And so I'm trying to figure out how to start planning for that after we get engaged, we get married, combine bank accounts and all that stuff. How do I plan to tackle her debt for basically going back from baby step four to baby step two? Well, that's exactly what you'll do. Whatever money you have in savings, when you come home from the honeymoon, you will throw it at the debt snowball, and then the two of you will combine your households, your incomes,

and you're going to work her debt off then, the two of you. And so how much debt has she got? It's probably going to be around, I guess, $55,000 to $60,000. Okay. And what's her attitude about all that? Well, it's funny you ask that. I've been trying to ease this conversation in with her and trying to talk about or kind of have that dream conversation that you guys talk

about a lot and haven't had that conversation yet um but she's on board with it but she she does not believe that i said we can do it in less than five years and i told her i said okay well jump on board with me and you know but we'll do it under five years i can promise you that and she she doesn't believe me well wait a minute what is your what is your income so my i make about fifty thousand dollars with commission so this year will probably be around 65 what she makes she's a nurse and she's a nurse probably makes 50 to 55000 okay so here's a simple thing that a nurse can do anybody could do okay is you make a hundred thousand if you put if you put 30,000 out of 100 on your debt you're debt-free in two years exactly that's exactly my point and if you have that if you say that sentence and she rolls her eyes, then you've got a problem.

Right. And I think I'm wondering how you've been with somebody for three and a half years, and you're about to buy an engagement ring, and you're still tiptoeing around any conversation. You don't tiptoe around a dreaming conversation, brother. You've been together for three and a half years like what is stopping you from sitting down and having that that should be a point of joy and a point of coming together not some sort of apprehensive moment why are you waiting to have that conversation i really don't have a reason. I just haven't done it, to be completely honest.

Give her that gift. That's a gift to any prospective spouse, male or female, for the other person to sit down and say, I want to dream together with you. That's awesome, man. That's a good place. And as Dave said, this is a math problem. And another thing a nurse can do, especially in this universe,

is work saturdays for another nine months and make a whole bunch of extra money and you can do something on the side and y'all can take that two two years and cut it down to 18 months or maybe even 15 months if y'all get bananas about it i left out how much have you got in savings uh i've got about $45,000. Okay. And she has $55,000 in debt. Uh-huh. So if you write a check for $45,000, there's only $10,000 left, right? Correct. Well, after you're married, and you're making $100,000. So you should be debt-free in like two months. This is the greatest call of your life, brother. We've just solved all of your problems.

And then you're going to rebuild your savings. And she can't be nervous about using up your savings because she's not got any savings. So she already should be nervous, right? Yes, completely agree. And you, brother, are going to have to work on the pronoun problem, which is this is going to quickly become not her debt, but y'all's debt. Our debt. Our debt.

Our income. This is not going to be your savings. Our savings account. Our savings. That's right. Yeah. When you are married and come home from the honeymoon, the pronouns change. You are now French.

Oui, oui. We do stuff now. We do stuff together. That's right. It's not your stuff, my stuff. Unless the dog goes on the floor and then it's your dog. not your stuff my stuff it's uh unless the dog goes in the floor and then it's your dog but other than that it's everything else right it uh but uh oh my gosh that's your child that's misbehaving that's right that's right yeah that is your son

that's actually a rule my wife and i have yeah whichever whichever he's standing in the middle of street peeing he's your son whichever behavior the the principal calls us on that person's got to go to the that's your son i'm just saying that's right i agree with her on that part but yeah no change your pronouns as soon as you get married and you can say what and you could even do that in the dream meeting and say well how is life going to look like for us right we what is it we're going to do and what if we took after marriage and applied 45 000 to 55 000 worth of debt and in the meantime you work like crazy and you've already paid it down 10 from working weekends and so when we come home from the honeymoon we're like debt free how cool is that

that would be a dream that's better than five years five years kind of sucks yeah and your life right now kind of sucks so maybe we can fix this thing that's not a bad dream not a bad dream we're gonna put financial coaches and counselors out of business if we solve people's marriages like that man now well i mean sharon and i were on about our third date i was driving a monte carlo with 285 000 miles on it third engine second transmission i was gonna say that's back when yeah it was i mean i had driven this car i it was on its third life and i was explaining to her i had a dollar 16 in my checking account and i was explaining to her how someday i was going to be a millionaire and about that time we went across the railroad tracks and muffler fell off my car so this is this is the dream

meeting right the dream this is the dream meeting what could this The dream meeting. This is the dream meeting. What could this look like? And, you know, the strange part is the woman actually believed me. Hey. And she was right. That's right. Because I'm so dumb, I've done it twice. There you go. I've done it with a millionaire twice, two different times now. Oh, my gosh.

Yeah, that's the dream meeting. That's what you're doing. And it's okay if the muffler falls off the car in the middle of the dream meeting. But just have it and sit down and change your pronouns and start laying out some math plans and start talking about going through. Maybe you go through Ramsey Plus during this year while you're planning and getting married and finish up and revisit after the marriage and that kind of stuff. You have a whole year lined up to do all that.

Very cool, man. Very cool. Open phones at 888-825-5225. This is the Dave Ramsey Show. Has your family grown larger over the years? Ours has too. Christian Healthcare Ministries is now helping over 425,000 members bear each other's health cost burdens. CHM offers budget-friendly options to suit a variety of needs, from the ability to choose your own medical professional

to a portable program that moves with you throughout life. We even offer a generous maternity option that has helped many couples welcome new additions to the family. Today, many of those babies have grown, gotten married, and have once again turned to CHM. This next generation trusts CHM to meet their health cost needs and be part of a faithful community as they are expecting children of their own. How about you? Would you like to be a part of our family as you grow your own? To learn more, visit us online at chministries.org slash budget and explore which options are right for you and your family. chministries.org slash budget. That's chministries.org slash budget. Dr. John Deloney Ramsey, personality, best-selling author of the book

Redefining Anxiety, What It Is, What It's Not, and How to Get Your Life Back. We're taking your questions about your life and your money. Open phones at 888-825-5225. Jake is in San Francisco. Hi, Jake. How are you? Hey, I'm doing good, Dave. Hey, thank you. My question is, I just sold a rental property and I'll close next week and I'll be debt-free for the first time in my life. All right.

And yeah, I'm excited. I just sold this property when we closed. I'm going to have about a half a million cash to put, and I'm thinking of putting it just into retirement, into mutual funds. And I have about $275 or more in mutuals right now, so it will give me about maybe close to $800,000. And my home is free and clear, and it's worth about a million. And I have a rental in Newport that's about a million five,

and they're both free and clear, paid for. Way to go, man. You've killed it. Congratulations. Thank you go, man. You've killed it. Congratulations. Thank you. Thank you. Yeah, I'm real happy about that, and thank you. I've been on your leadership team for financial peace several times

and love that program. Thank you. And anyway, so I'm trying to figure out when I do this, is that if I put it into the mutual funds right now, I'm in basically three. It's a blue chip growth fund and then the S&P index and then a balanced fund that's about 30 percent bonds. And I think the blue chip's up about 52% this year, and the S&P, I think, is probably around 15 now, and the balance is about 13. So I'm thinking about splitting that money and putting in there.

I'm a little nervous because I've been in real estate my whole life, and I sell it as an agent and i'm retired now and uh so i'm just trying to figure out um whether that's a good move to to split it like the rest of the stuff i have into those three in mutual funds and jake you got you got three four million dollars um i think you're not gonna mess this up so spreading it across those three is probably all right um i you could do that i have my mutual funds across four types growth growth and income aggressive growth and international i'm not big on bonds because they haven't kept up with equities in terms of long term track record and performance i'm not a fan uh i'm 60 years old. I don't have a dime in bonds, just to give you an idea.

Well, I'm 76 right now. Yeah, so you're not going to use this money. Somebody else is. We'll see what I can do to spend it. Yeah, I mean, you can take a run at it, but you're going to have to get pretty crazy, man, to go through all this. So you can do that. Here's the thing I think you're looking for. I think you sit down with a SmartVestor Pro, click DaveRamsey.com, click SmartVestor,

and sit down with an advisor, and here's what I want you to ask them about. Look at some what's called low turnover mutual funds. One place you can always find low turnover is with an S&P 500 fund, an index fund. Low turnover simply means they don't sell the stocks inside the funds very often. Almost always it's a buy-hold strategy. The turnover rate is 5% or less. Therefore, all of your growth is going to be capital gains growth, or almost all of it is going to be capital gains growth,

so you don't have any taxes on the growth until you cash it out. And when you do cash it out, if it's been in there longer than a year, it's going to be taxed at a capital gains rate, not an ordinary income rate. So 15% instead of whatever your tax rate is, 30% or 35%. And so I personally do a lot of low turnover mutual funds. I'll throw money into an S&P 500 and just let it sit there two or three years and then go buy a piece of real estate with whatever it grows to that's what i do with it but if it just sits there the point being that if you buy a share of stock for 50 and it goes up to 70 you do not pay taxes on the 20 gain until you sell the stock right right and so it's growing

like real estate does with a you're getting a tax-deferred growth. You don't have to pay taxes on the growth until you cash in. And so the low turnover mutual fund keeps you from having to pay taxes every year on the growth. Where, like, if you buy a high turnover mutual fund, like, for instance, an aggressive growth stock mutual fund, a lot of times they'll have, like, not a 5% turnover, but they may have a 200% turnover. They may turn the whole thing over twice in a year, which means every bit of gain that that thing has is taxable that year and not taxable at capital gains rate, taxable at your ordinary income rate,

which is at least double otherwise. So you're paying twice as much taxes and you're paying them every year rather than letting the tax money grow more money for you by letting it sit in there. So you have to pay taxes on growth, on the gain, before you even cash it out? On a mutual fund, you do if they have cashed it out inside the mutual fund. Okay. So like a mutual fund, I have 90 to 200 stocks in it. And if they're selling, every time they sell one of those stocks whatever that stock

has gone up in value that amount is going to be taxable for you that year even if you're not holding the cash in hand even if you are have not cashed in they cashed in inside the fund so you could conceivably pay cash or pay taxes on a mutual fund year over year that ends up losing money someday and you've paid taxes against something that went away huh yep without holding that money in hand huh it's you know if you buy a share of home depot stock and i don't even know what it goes for i'm just making this up and it goes from 50 to 70 and you sell it right you're gonna pay taxes on on that 20 bucks on that 20 right but you're not if you hold it okay until you sell it and if you hold it longer than one year, it's only taxed at 15%.

There you go. So multiply that times 90 to 200 inside of a mutual fund, and that's what's going on. All those things spinning out or not spinning out. Gotcha. So as long as they're sitting there and they're not selling them, and a 95% hold rate is considered a 5% turnover rate is considered a low turnover or no turnover mutual fund.

And almost all your S&P 500s are that because they're just trying to model the 500. They're buying them and just keeping them. And that's one place you can find them. But you can also find other mutual funds that have a low turnover rate in them. But that's what I would look for if I were in that mix. And I know I would look for it

because this is what I freaking do. That's what you do, right? Yeah. Because I do anything I can to be tax efficient and to get a good rate of return. And that's one of the reasons I buy so much real estate. As I buy it, it goes up in value. I don't pay taxes on the growth and value.

My net worth goes way up, and I don't have the cash in my pocket. Right. When a piece of property goes from $100,000 to $150,000 in value, I don't have that $50,000 in cash, but I do have that value there. Right. And I can get to it if I wanted to sell it, but I don't. That's right. Open phones at 888-825-5225. Joshua is in Knoxville.

Hey, Joshua, how are you? Hey, Dave and Dr. Delaney, how are you all? Great, man. What's up? I've been in business for about eight years, and I'm wondering if I should go ahead and build a warehouse for my business. What's the growth curve on your business? I've been up about 15% every year. Besides for this year, I'm down about 30% due to the coronavirus. If we didn't have the pandemic in the last five years, your business has tripled.

Yes, pretty close. So when you build a warehouse, are you going to build it for five years from now three times as big? I'm hoping to go. Or are you going to have to move out of your own warehouse? Well, right now I currently rent, and I've got about 2,000 square feet. I was wanting to build around 3,500. Now, you see, my point is you're going to be out of that thing in two and a half years. Right, right.

Because your growth is going to take you out of it. You know, right now I've got quite a bit of room. It's more of getting more orders in, really, you know, than having rooms. Okay, let me give you the brief synopsis on real estate as you know i love real estate so your brief synopsis is this your business is growing so fast that if you're not careful you're going to own a piece of real estate and you're going to go oh i don't want to move because i own this now the real estate is wagging the business instead of the business wagging the real estate the dog's wagging the tail rather than the tail wagging the business instead of the business wagging the real estate. The dog's wagging the tail rather than the tail wagging the dog.

Or basketball. I got that backwards. But anyway, you see what I'm saying? I bought a piece of real estate, and it became me keeping the company in the real estate started to mess up the company. I started trying to take care of the real estate instead of trying to take care of the company. And so the only way this is going to work is if you buy a big piece or buy a bigger warehouse so that you can stay there a while.

And then when you do move, you need a marketable warehouse that you can sell it or rent it out when you do move out of it. Because that's what we did with our old building. We had to move out of it. We outgrew it like three times over. Dr. Joni. Dr. Joni. Dr. John Deloney. That's his name.

He's my co-host. I like Dr. Joni. I can live with it. Chachi and Joni. Chachi and Joni. Oh, my gosh. Open phones at 888-825-5225. On the debt-free stage in the Ramsey Solutions Lobby, Tyler and Jessica are with us.

Hey, guys, how are you? Hey, good. How are you? Better than I deserve. Welcome. It's good to have you. Where do you guys live? Des Moines, Iowa.

Ah, and all the way to Nashville. So how much debt did you two pay off? $282,952.26. Goodness! How long did this take? 23 months. Woo-hoo-hoo-hoo! And your range of income during this 23 months?

$84,000 to $135,000. Okay. And what do you all do for a living? I am a middle school counselor. And I'm in sales. Mm-hmm. Okay, cool. living i am a middle school counselor and i'm in sales okay cool okay so you did not make 283,000 during that period of time which tells me you must have sold something we sold our house all right what'd your house bring uh we sold it for 140,000 okay um we were moving so anyway yeah so uh when it sold that paid off some the mortgage debt yeah obviously so you're renting now we we we now have bought a house oh since then since then yes okay yeah

and um what was the rest of the debt the other 140 sally may all sally 10,000 was a car loan. Oh, my gosh. You threw it out there as though that's better. All Sally May. Yeah. So what happened 23 months ago that got you guys on fire? Well, we decided we wanted to move closer to family. I took a new job, and we decided with the house we had, we weren't getting anywhere with our loans. We were doing day-ish.

We decided to go all in. This was the perfect time, and we sold our house. We put everything we made from the house into our student loans and just went after it from there. Okay. All right. And then after that, you were able to save up a down payment and buy later? Yes. Okay. All right. Way to after that, you were able to save up a down payment and buy later? Yes. Okay.

All right. Way to go, you guys. Wow. I mean, that took off. So, I mean, when you made the decision to move, what made you decide to say, okay, while we're moving, we might as well clean up this mess? Yeah. There's a couple things. We're looking at houses, and where we were moving the

houses were more expensive so we decided to wait and we have a little one at home aurora so when we found out we were pregnant we're like let's get it done and we were going to change her life amen so we got more jobs yes more and more jobs lots jobs. More jobs. Lots of work. Lots of work. What do you tell people the key to getting out of debt is? If you have a spouse, communicate. Be okay with telling each other no. Respect each other enough to tell each other no so you can get it done. I remember we would sit there and ask each other to buy stuff, and we just asked a question. Does this align with our

goals and if it didn't we didn't buy it so we literally did nothing for 23 months you had no life correct basically and now you're free and now we're free you live like no one else so now you can live and give like no one else yeah yeah Aurora has a whole different future because of you. It's amazing. How old are you two? I'm 33. 32. Wow, you're impressive. I was going to say, I would have thought y'all were 25 and 26.

I wish. Beautiful and as light as you feel, right? How old is Aurora now? She's going to be 10 months next week. And so how much of this stress do you feel like she internalized versus what she's going to be 10 months next week. And so how much of this stress do you feel like she internalized versus what she's going to be able to live with without? You know, that was one of my biggest things is I didn't want to live in a rental

and now I'm thinking she's never going to remember any of this. Right. And we get to tell her this wonderful story someday and she's never going to have to live like we did before. Back in Art 18, your Ma and Paul. Who came to who with the idea? Well, his brother.

My brother's been doing it. He's out of debt. My sister did it. So it kind of started with my family, but our support group with both of our families, I've known of it. And that's why we've been doing Dave-ish for a long time. And we decided this is enough. Let's get it done. So there was no big, you're a salesman for a living. So there was no big sales job here. It was as much as a math problem. Yeah. Yeah. I honestly didn't. I mean, he told me about it when we were, you know,

going out and in college and I was like, that doesn't seem like that'll ever happen. I have over $100,000 in student loans. And I remember the day we sat down at the table and finally wrote out all of our loans and I just cried and I thought

that moment would never end and I just can't believe we're here i can't believe you did it happened you did it you're heroes you're complete heroes you completely stole the day i'm so proud of y'all thank you very well done very well done who are your biggest cheerleaders our family and then his brother and sister yeah his brothers he's in the middle of this story for sure yeah they just kept telling us us to keep going when we didn't want to and keep living where we were living and couldn't have done it without them.

Our family, I mean, especially mine and hers as well, we got so intense. Christmas, we were like, no gifts. And it was cool because they got it and they they supported us so that's very cool well congratulations thank you after all of this how's your feel feels amazing amazing it feels freeing because you can see it on their faces you can see it through the glass they're just like right there light bulbs yeah well done well done all right tyler and jessica des moines iowa 283 000 paid off in 23 months making 84 to 135 we've got a copy of chris hogan's book for you everyday millionaires

that's the next chapter in your story count it. Let's hear a debt-free scream. Three, two, one. We're debt-free! Woo! Woo-hoo-hoo-hoo! Yeah, baby! I love it! Well done, well done, well done.

That's so cool every time. Never gets old. Today's the last day to enter our Ramsey Christmas Cash Giveaway. Could be your chance to win our grand prize of $5,000. Now, that would make Christmas special, wouldn't it? Enter daily to increase your chances of winning. Today's the last day, so it's not daily. It's today.

And go to DaveRamsey.com slash giveaway. Our team is using every reason to give stuff away. You can now pick up our life-changing books for about 90% off during our week-long Green Monday sale. Get books like the number one bestseller is the Total Money Makeover, Dr. John Deloney's new bestseller. It's a quick read. Redefining Anxiety. All these are only $10. And Redefining Anxiety is selling white hot. Going crazy?

Yeah. These are exactly what every household needs to make a plan and get control. Enter to win a chance to win the $5,000 and get some deals all at DaveRamsey.com. Today is the last day to enter. We will be announcing the winner coming up of the five thousand dollars in the next few days so you don't want to miss that and you don't want to miss your chance to get registered and take a shot at five grand five grand's a lot i would i've registered myself for i'm just kidding it would do no good that's exactly right but five thousand dollars violate the rules and then if we

drew your name we would not say, oh, look, John won. We would say, what is John doing? And he's fired, right? So, no, $5,000 is awesome, man. $5,000 is awesome. And it's cool to be thinking about gifts that are actually going to be something other than a plastic toy that's going to end up in a bin somewhere or some knuckle-headed something or other. It's something that's actually going to help somebody's life. When we were kids, my mom and I were in the real estate business,

and we moved so much that we just kept all the boxes that were labeled. And we had two boxes that never got unpacked. Seldom used kitchen items. But we're going to keep them, right? We're going to keep them. They're seldom used. Just in case. And, you know, we buy a bunch of crap in our culture that is of no value.

None. So don't buy them a seldom used kitchen item. Buy them a Dr. John Deloney book and you'll change their life. It's actually usable. It will not go into the box. It will not go into the box. It will not say seldom. This is the Dave Ramsey Show. Thank you. Dr. John Deloney Ramsey, is my co-host today.

Open phones at 888-825-5225. Devin is in Denver. Hi, Devin. Welcome to the Dave Ramsey Show. Hey, Dave. How are you doing? Better than I deserve. How can I help? So, my wife and I, we started your program at the beginning of this year. We're currently on baby steps. Number two, we've paid off a little over $20,000 so far, and we got right at $19,000 to go, aside from our house.

But my question to you is, my wife is currently expecting. Yay! And yay, woohoo! Cool for us, right? Yeah. So, but we know we're going to have to pay a $7,000 deductible next year come March, because of the way that our interest is set up. So I'm curious, do we keep slaving away on this debt snowball or do we stop and start saving up for the seven thousand dollars that we inevitably know we're gonna owe in march you got you got really good instincts devin yeah you you stop your baby steps you push

pause on your total money makeover baby steps okay and you save up as much as you can save up between now and the time baby comes whatever the expenses are out of pocket that you have to cover like the seven thousand dollars obviously you need to cover that but i'd love for you to save even more i mean what if you save seventeen thousand dollars okay and uh you know mom and baby come baby comes mom and baby come home from the hospital, everybody's safe, everybody's good. And you write a check and you pay off the $7,000 deductible and you have $10,000 left. You push play on your baby steps again, your debt snowball is where you are. And so you would take the $10,000 out of that account back down to $1,000, and you throw it at your smallest debt and game on again.

And you lost very little traction on your overall plan except your deductible in the story I just told. Perfect. Yeah, sounds like a game plan. Yeah. Congratulations, man. Yeah, that's awesome. Good for you, man.

Yeah, I'm proud of you. Good stuff. Open phones at 888-825-5225 james is with us in redmond california hi james how are you i am focused certainly not finished uh dave dr john how the heck are you man we're doing good today how can we help awesome um i have a question about baby step four i am not there yet. I'm in Baby Step 2, so I am not contributing to my retirement yet. My company offers a very juicy match that I intend to take advantage of when I get there. I had a question about this because they only offer a traditional 401k vehicle for that retirement and not Roth.

And I get the logic and totally agree with you on Roth contributions. So how do I take advantage of the match when the company doesn't offer a 401k through the service or Vanguard in this case? Right. They don't have a Roth option. It doesn't matter. You still take the match. But I wouldn't take any more than the match. So how much is the match? What percentage is? So it starts at 8%, and then after three years of service to the company, it jumps to 10. Okay. So you have to put in 8 or 10 to get them to match the 8 or 10?

They match up to, I have to look exactly how it works, but they match up to 10% of your eligible pay, if I recall correctly. But do you have to put in that 10 for them to match? Yes, I believe so. Okay, so you're going to put, let's just call it 10. Let's say you're putting 10% into a traditional, but you have a 100% ready to return the instant you do that because they're going to put in another 10. There's no mutual funds that pay 100% ready to return.

So that's why you always do the match, right? Then I would stop, and for the other 5% to get you up to 15%, I would jump over and do a personal Roth IRA in good mutual funds. Now, what is your income? So my job currently pays me $57, but I'm doing gazelle intent, so I'm also doing mortgages and delivery. So I think my income will probably be at about $120,000. Okay. Then 5% is going to be about $6,000, which is a Roth IRA, oddly enough.

Right. And so if you make $150,000, then you're going to go on to the third step, because you can only put 6 000 in your roth and uh and you've got your 10 match but you still need to put more in to something and you've run out of roth options and run out of match options so now you got to the third option which is just a traditional so that means you're going to end up putting more than 10 if you make more than 120 into uh you might put 11% or even, you know, 11%, whatever it ends up being to get you to the actual dollar amounts that equate to

15% of your income. And so that's very good. And don't forget to hold the taxes out on your side hustles if they're not being done already, too. That's a good point. It'll sneak up on you. Because you can get to where you're capturing that. 1099 you in the head man that's right yeah you get that puppy in because i mean it sounds like he's making some serious bank and if you're mortgage

brokering in their 1099 you're contracting that as well then more than half your income you got no taxes coming out that's right and that's a. Suddenly, you look at that big mega number, and it says 120, 150. It feels so good, but it's not that much, right? Yeah. Well, I mean, you do need to do the 15% calculation on the gross number. Right. But, yeah, you better be setting those taxes back in addition to what we're talking about. So, really cool, man.

You're hustling. You're hustling. Yeah, good for you. Get after it. Lyle is in Meridian, Idaho. Hi, Lyle. How are you? Doing good, Dave.

How are you? Better than I deserve. What's up? So I just had a question for you because I'm a graduate student here in Idaho. I did the thing that every financial penny pincher would have a heart attack over. I, I went to medical school or I'm in medical school. And, uh, but before I was accepted to medical school, I did door to door sales as an undergraduate and I made a good chunk of money and I put some money in an investment, um, towards a, like a, uh, a part ownership of an Airbnb in Nashville. Um, and I just kind of

wanted to hear your thoughts on that. It, it, the hope of, of investing in the, um, in the Nashville property was to have, you know, some residual income every quarter. And we were, my wife and I are planning was to take that residual income and, you know, put it mainly, the main focus was to put it towards our daughter's future we have a two-year-old baby girl and um but since covid has been mayor kind of messed up your little b&b thing didn't he yeah i did but i mean the first year we had it we bought it in 2018 2018. Best laid plans. Yeah. Yeah. Sell it. Yeah, so. Yeah, so.

Sell it. It was working. Oh, sell it. Sell it. You live in freaking Idaho. It's in Nashville. Dude, you are spread so thin. So many things are garnering for your attention, and you're going to do none of them well right you

need to concentrate on med school getting through it and paying cash and use that airbnb to do it you got too many balls in the air you're juggling arrows one of them's going to stick you in the eye get rid of that thing and it's that nashville property is what it is and and yeah so just let me yeah you're right every financial penny pincher in America, that would be me. I'm the king of them. I am the king freaking penny pincher. I'm not cringing about you going to med school. I'm cringing about you going into debt to buy a property entirely across the continent for Airbnb in a city where the mayor shut down the whole economy.

The only city in Tennessee where that has happened by the way so and i've got friends who are doctors whose kids are in college and they're paying off their student loans still and so when you're borrowing money to go to med school and you're borrowing money to buy an investment property so that your daughter that's just priorities are all out of whack yeah too many things going on. Too many things. The best thing you can do for your daughter's future is get through med school, debt-free, and or pay that debt off ASAP. One of the two.

And you cash flow her life. Trying to borrow your way into wealth. It's not the shortest method. This is the Dave Ramsey Show. This is James Childs, producer of the Dave Ramsey Show. On your smart speaker, you can add our skill by saying, Alexa, open the Ramsey Network skill. From there, you can listen to all our shows. Ask Dave money questions like, how do I invest my money? Or what is the debt snowball?

Find out more at DaveRamsey.com slash smart speaker.