The Ramsey Show - App - Sacrifice NOW so You Can Enjoy Your Money LATER (Hour 3)

Episode Date: January 14, 2022

Saving, Education, Career, Debt, Taxes, Budgeting As heard on this episode: Sign Up for a FREE trial of Ramsey+ TODAY: https://bit.ly/3rZTUAx Tools to get you started:  Debt Calculator: https://bit.ly/2Q64HME Insurance Coverage Checkup: https://bit.ly/3sXwUn5 Complete Guide to Budgeting: https://bit.ly/3utmVXi Check out more Ramsey Network podcasts: https://bit.ly/3fHhbVE

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. I'm Dave Ramsey, your host, Rachel Cruz, Ramsey personality. Best-selling author is my co-host today as we answer your questions about your life and your money. We talk about your work, your life, your relationships, your money. All right here. Thanks for joining us.

It's a free call, 888-825-5225. Chris is with us in Columbus, Ohio. Hi, Chris. Welcome to The Ramsey Show. Hi, Dave and Rachel. Thanks for taking my call. Sure. I was calling in to ask about saving up for my son's future.

So my wife and I are currently on baby steps four, five, and six. And in the fall, we opened up a 529 for our nine-month-old son. Fun. Good for you. Way to go, Papa. Well, thank you. And we actually found out over the holidays that my grandma wants to contribute $25,000 to my son's future. She's not super specific with how she wants that money to be

saved for him. And so, you know, we have the 529 account and we were wondering if the best thing to do would be to just throw it into the account we already have, or is there another type of account that would be like a non-retirement investment account or something that would give us more control and more freedom in case, you know, maybe he doesn't go to college and just that we have a little bit more ability to do things with it just because we want to make, you know, the wisest decision with, you know, such a big gift. Yeah, that is so cool. That is so cool.

She needs to be sure she writes that in two different checks, one to you and one to your wife, so she doesn't get into gift tax, okay? Yes. All right, good. writes that in two different checks one to you and one to your wife so she doesn't get into gift tax okay yes all right good now once we're doing that you yeah you can drop it into the 529 if you want that's not a problem um and it would it would probably mean that you're done with college then and you can save for other things if you want to outside the 529 that's assuming your particular 529 allows a contribution of that large in one year. Some of them have a $10,000 limit. Some of them have a $50,000 limit. So you'd have to check on yours and see what you're doing there.

Now, what you can do, and before the 529s and the ESAs were out there, when Rachel was a wetot, we were not able – we didn't have those types of college funds for our kids. They weren't available. And so the way you save for college in those days was you just opened a mutual fund in the kid's name. It's called an UTMA, an UTMA Uniform Transfer to Minors Act, which, by the way, if you open a bank account for the little kid, it's the same thing. Because minors cannot conduct business. They can't do contract in any state and so the

parent is always doing it you put the kid's name on it but it has a custodian and you're the custodian of the account now what that does is that by being in the kid's name it won't have any income tax on it until the until the account makes enough in one year to break through standard deductions okay and so um you know if it breaks through standard deductions it may have a little bit of tax on it but it'll grow largely tax-free for a long time twenty five thousand dollars won't make enough for many years until it grows to probably double that to where you actually get into paying any taxes on it so that's what we used we just had mutual funds in the kids names and uh you know and you know and when they got ready to go to school that money was there we could use it for school now those are controlled until the child is 21 when they're 21 it's their

money and you don't have any control over that, technically speaking. Now, you know, we're kind of old-fashioned dinosaur parents, and so if they're doing heroin, we'll just hide the money. Screw it. You know, sue me. Right? But that's kind of like stealing their money, technically. You know, but I would steal it before I'd give it to them if they're doing heroin.

Because I put it in there in the first place, right? So deal with it. But, yeah, technically speaking, you know, if they're if they're off the ranch, if they've lost their dadgum minds at 21, it's still their money. Yeah, yeah, that was the other concern that we had. We wanted to make sure, you know, we obviously don't plan on that kind of thing happening, but we wanted to make sure that we didn't know if there's a way there was an account that we could have that made sure that we had control over it so it was used for a wise investment. No way to control a past 21 if you put it in his name. Okay. I'm thinking this out loud, so I could be totally wrong on this.

So what would be the thing if Chris just took that $25,000, put it in a mutual fund in his name, and then paid out the kid's college. That'd be fine. But all of the income on the mutual fund is going to be taxable. It's going to be taxed when they take it out. It's going to be taxable. Well, it depends on if the mutual fund is a low turnover, it won't be taxed now.

Yeah. But if it's a high turnover, regular mutual fund, you're going to pay taxes on it. On it, yeah. So the tax position is substantial over 20 years worse versus the other yeah yeah i just you know i i i started with the assumption that i was just going to make my kids behave and so we always laughed and said we put a bunch of money in their name so let the beatings begin i mean it's like you know this is my counseling yeah there you go this is what this is pay for your counseling bill later but yeah but the uh but i mean that's it was a joke it was a joke and you seem so hardcore i'm like y'all are not

intense parents everyone's like oh my god i was a joke i wasn't like growing up as a kid i was like he was way more chill at home than he is on the radio. It was a joke. You talk a big game. Calm down. Calm down. You talk a big game. You were not abused as a child. Calm down. I know. But yeah, the point being that a lot of people are afraid of what's going to happen with

a kid when they grow up, and that is a normal thing. Or what's going to happen to college? That's a big conversation. What does a four-year degree look like in 18 years? Yeah. Do you know what i mean like that that whole industry is shifting so much higher ed because of all things but i'm like that and that's a hazard i mean we have a six four and two year old and we did you know we

have 529s for all of them but i do think that the back of my head where i'm like man what like i don't know what if because it's what it's it's Because you kind of do bank when you do an ESA or a 529. It's for the education world. I mean, that's what it is. They could go to trade school on it. Is there any time you would shift your advice? You can go to trade school on it. To do it.

Yeah, yeah, yeah. And here's the other thing. If the whole thing completely unraveled, you can just take the money out. You just got to pay taxes on it. It's got a penalty in taxes. If you don't use it for education. If you don't use it for education, you just gotta pay taxes on it it's got a penalty in taxes it's like if you don't use it for education if you don't use it for education you just take it out you got it you got taxes and a penalty what's the is that you know the tax is between like cashing out a retirement account early but that's like the whole world melted down there's no education options i mean yeah yeah yeah which won't happen of course there's

gonna be education options so the other thing is is that your brain the conspiracy blog i read the other day oh you wouldn't crazy you read a's crazy what this world's going to be. What this world's going to be in 18 years. You read a conspiracy blog? I can't believe that. Rachel, she's queen. For those of you who don't know, she's queen of all conspiracy theories.

This is our whole Thanksgiving dinner, Christmas dinner. Nothing is as it seems. We've had to finally just go, we can't do it anymore, Rachel, stop. Because she just destroys all family dinners. I think Dave's part of the New World Order or something. I don't know.

I actually sit on the board in the Illuminati. And so that, according to Rachel. Oh, my God. This is the Ramsey Show. Thank you. Most people know me as the guy who did stupid with a lot of zeros on the end. I made my first million dollars in my 20s the wrong way and then went bankrupt. That's when I set out to learn God's ways of managing money and developed the Ramsey Baby Steps. By following these steps, I became a millionaire again, and this time the right way. After three decades of guiding millions of others through the plan, the evidence is undeniable.

If you follow the Baby Step steps, you will become a millionaire and get to live and give like no one else. My new book, Baby Steps Millionaires, is now available for purchase. When you order my new book, you'll learn how ordinary people built extraordinary wealth and how you can do it too. I'll walk you through how to invest, build wealth, and bust through the barriers preventing you from becoming a millionaire. Baby step your way to becoming a millionaire. Get your copy today at RamseySolutions.com. That's RamseySolutions.com. A lot of you have been filing your income taxes with the same software for many years, but you're sick and tired of all the add-on fees, and you're sick and tired of all the upsells where they're trying to sell you into something else all the time the reality is is that for most people it's not free they say they're free but by

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ramsey solutions.com smart tax get started right now ramsey solutions.com smart tax zach is with us in franklin tennessee right here in our neighborhood how are you zach i'm good sir thank you very much good how can we? Thank you for having me. Sure. Yes, sir. My wife and I had the privilege of attending your event last night, and I want to thank you for the wisdom that you provided for that. Thank you. But we are starting our first business together this year. We're set to open up in just a couple short weeks here. Good. And we wanted to know if we should budget off of our savings that we already have in our bank, or if we should plan to budget off of what we're going to make on the business this year. Your personal budget at home?

Yes, sir. Okay. So our income from the business. You don't have income? Do you have other jobs other than this business? Yes, sir. Okay. So our income from the business, if... You don't have income? Do you have other jobs other than this business? No, sir. We left our W-2 jobs to do this.

Whoa. Okay. How much do you have in savings? We have $175,000. Wow. Good for you. Okay. What's it take for you to operate your household a month?

How much do you need a month? What's your burn rate? It's $85,000. A year? Yes, sir. Not a month. Okay. All right. So it takes $7,000 a month to operate your house? Sounds high. Well, we have three kids in preschool.

That takes quite a bit. Our mortgage is about 22% of that. We basically budgeted everything on percentage base around that. Those are the two big things. What kind of a business are you opening? We have a recreational axe throwing business. Recreational what? Axe throwing.

Axe throwing. Yes. Rachel, we got it. Yes. It's a thing. I know. I know what it is. It's a thing.

I'm just kind of aghast you quit your jobs to do this until you had it open and going oh my gosh well have you well well did y'all have prior experience actually have you guys been running this like what what's a little bit of the story and where is it a little story yeah um we we are in franklin um we we opened up a mobile accident uh trailer last year and this is our stepping stone into um the full-time storefront um we just wanted to know like the psychology kind of behind knowing that we got money to take care of us this year or if we should really press um yeah doing well with the business okay so what do you what are you projecting revenues or net profits that you could take out of the business?

Net profits that we could. Again, they're projections, but they range from $300 to $400 this year and then double that next year. $1,000? Yes, sir. With recreational axe throwing? Yes, sir. That's a bigger thing than I knew. I knew it existed i knew it existed yeah my gosh i mean this is like should we should we are we in the wrong business apparently i am i mean that's yeah i don't know i mean i'm in fact is that these

are these how are you getting these numbers though because you you guys obviously had you said you did one like kind of in a trailer and you're just saying, hey, if we had this amount of people. Do you know what I mean? Yeah, this has been in the works for a couple years. The sport, if I can call it that, has been around for a handful of years, and we've gone to other places, talked to other people who have been involved. The numbers work really well for where we are, and there's multiple in Nashville.

There's a couple other locations. I mean, I've seen it, and I knew it was sometimes a part of a sports bar thing or something like that. I mean, I've seen these things, but I just had no idea that they were doing this kind of money. That's awesome. I sure hope you do that. That's amazing.

Okay, so if you're going to do that, you won't need any of your savings, right? Yeah, I guess I just didn't want to take that. We're taking that risk of this first year. If you make $300,000, dude, why would you use any of your savings when you only need $85,000 to live on? I guess it was just making sure that we can, you know, those projections are just projections to a certain degree until we actually get... Well, if you don't hit your projections, you might have to use some of your savings.

Okay. But if you hit one-third of your projections, you won't have any issue. Right. If you're 70% off on your projections, you're still okay. Does that sound good? You're talking about profit, right, not revenue. Yes, sir. That's correct okay yeah i mean if you if you're 70 off you're going to make a hundred thousand dollars you understand yes sir so if you don't hit your projections dip into your savings

but if you don't hit your projections you got other stuff going on because you're going to be dramatically. I don't want to use the wrong metaphor here. You dramatically miss the bullseye. I mean, what would you say with axe throwing? I don't know. Bum, bum, bum. I mean, you. Wow.

I hope it's great, Zach. I mean. That's amazing. I've got to go try it. It's right in our neighborhood. James, let's go axe throwing. You want to? He's roping James in now. Come on, man. Let's go. Let's want to he's roping james in now come on man let's go let's go make sure this guy make sure this guy okay so so here's a just like let's play it out the other way for zach let's say it does nothing

exactly so let's say you take out 85 000 in a year out of 175 yep and and and to the point you know when people go because i mean there's people listening to this call. They're thinking, hey, yeah, I'm wanting to do a thing. And obviously, I'm assuming they're not doing it out of the trailer anymore. I think he said our stepping stone. So if you go in and lease like a storefront, that's what I think he said, something about a storefront. So, I mean, you're locked into like a year contract. Probably a five-year lease.

So people that want to do something, not axe throwing necessarily, but get into a business and want to kind of make the jump, what are a couple of things? How can they do that wisely? Well, this guy did this extremely wisely because he's got this big, fat savings over here. And if his projections are way off, he's still okay. Yes. And I don't know what they were making, what kind of W-2 jobs they walked away from.

But, and apparently those projections are not based on wet finger in the air. They're based on an upgrade from the former mobile business. Right. Right. The mobile axe throwing business. Things you don't get on other shows. But, I mean, you know, so if you can start your business part-time before you quit your W-2, which is what they did, essentially,

and proof-text it, meaning get it moving in the marketplace. You're putting your foot off, one foot on the dock, one foot in the boat. You're testing it out. And then once you feel like, okay, we're making these projections, we've done it, we're going to make the step. And and they make that step and it's not that big a step then i mean let's just pretend that he made 150 mobile and they figure they can double it right okay um that's not unreasonable totally and they got a lot of leeway to be wrong and still be okay yes that's the key. You know, they're not going to make less than they used to make.

Well, I don't know what they used to make. We didn't ask them. But, I mean, they're not going to. That 175 pad there, that's a big deal. Yep. It's a big deal. Wow. Congrats, Zach.

Man, I'm coming to visit. I want to try it. Yeah, that's cool, man. Wow. This is The Ramsey Show. Thank you. Rachel Cruz, Ramsey Personality, is my co-host today in the lobby of Ramsey Solutions on the debt-free stage. Jason and Heather are with us. Hey, guys. How are you?

Hi. I'm so excited to be here. Well, we're honored to have you guys. Thank you. Welcome, welcome. Where do you live? We live in Winston-Salem, North Carolina. Oh, I love Winston-Salem.

A great town. Well, thanks for visiting us, guys. Good to have you. How much debt have you paid off? We paid off $106,000 in three and a half years. Wow. Good for you. Amazing.

And your range of income during that time? We started at $30,000 and ended at $100,000. Wow. Very cool. What happened there? Well, we actually started when we were not yet married about four years ago. We knew we were getting serious we were dating and we took fpu the beginning of 2018 yeah and um and so we had separate

thirty thousand dollar income so it doesn't really affect that but part of it was he had a lot of credit card debt and i was really concerned about that and i was a single mom of three teen i have three teenagers and i just wanted to make sure we were moving in the right direction. Good. That's very wise. Good for you. What kind of debt was the $106,000? All credit cards?

We had $35,000 in credit card. $38,000 was a HELOC. We had $10,000 in medical. And then $23,000 to the IRS. Good for you guys. Cool. What do you all do for a living? I am actually, I started out in the banking industry and then went back into home maintenance.

I'm a handyman, actually. Good. That's a very good job. Very good career. And I was a residential cleaner, and I actually transitioned into just staying at home. Oh, wow. Good. Okay.

So the handyman business is good, then. Yeah. It is. Very good. yeah excellent good for you guys very cool so uh the whole thing of the whole thing of you look you're dating you look up and see some credit card debt that's what gets this whole thing started yeah i mean we both i think we're wanting something similar but we have we have quite a I mean, our journey didn't really get started until we got married the end of 2018. And I'll let Jason share a little bit about that. We got married 9-9-18.

And that's really when our story began and our walk began. I have a problem with alcohol. And I had been drinking and not able to quit because I drink alcoholically. And I had lied to Heather. If you were walking on this planet, I was telling you I was sober, but I could not stop. Sixty days into our marriage, we separated. Heather left the home. December 2, 2018 is my sobriety date.

Wow. But the most important date besides my birthday is 12-12-18, which is the day I gave my life to Jesus Christ. Wow. Woo! This is a story right here, man. Yeah, it's been a journey. Yeah.

So it was just for my safety necessary for me to leave um very hard to do i mean yeah just think what do people think after you've only been married two months it doesn't matter what people think if you are in a mess you got to get away from the mess yeah and because he had deceived me so much and i had to leave under you know to keep myself safe i didn't see him for five months and i wanted things to work out, but I wasn't set that it would have to. But he... In the meanwhile,

it was a lot of white knuckle, 12-step program. And then I got involved with a men's ministry marked Men for Christ. And to have Christian men surround you, to know you, to speak truth over you on how the Lord sees you as his child, and to feel that in your heart for the first time is transformational. Oh, it is unbelievable.

Because Jesus Christ is the only one that can truly break the chains of addiction. He's the only one that can level the mountains of anxiety and fear. And he's done all that. And in that process, because I have busy hands and a skill set, being a handyman, we completely gutted, I completely gutted the kitchen down to the studs and rebuilt it with my own hands. And that transformation of our kitchen in our home walked right along with Jesus rebuilding a new marriage set on a solid foundation. And we have pictures that we've uploaded to show that. Unbelievable.

Wow. Wow. Powerful. How old are you? I'm 41. And I am 48. Wow. And so you've been dry two years?

No, it is. Three years. Yes, it you've been dry two years? No, it is... Three years. Yes, it's 37 months. Three years, yeah. I miscounted. Wow. It's huge. Way to go, man.

Thank you. So proud of you. Thank you. This is so very cool. Yes. So very cool. And oh, by the way, we got out of debt. Yeah.

I mean, it's like, that ain't nothing compared to the rest of this, right? Yeah. Yeah. We retook Fpu together once we had gotten back together and um that was the first time we were able to combine our finances because before when i tried to sit down and we do budget it would just it would erupt and nothing could happen so it was amazing that was about three years ago is when we finally were able to sit down doing it yeah y'all had a lot of things moving and changing in this process, which is just so beautiful

though, because as you stand here today, it's like you're completely different people. And most of the time, it's obviously the financial. It's what brings people here on the stage. And we hear some of the good stuff, right? Whether it's like our marriage is better. I got healthier. Whatever it is. But I mean, these are big buckets, you guys.

From sobriety to finding Jesus to this financial piece. I mean, all of it. I mean, it's incredible. So through the journey, you guys worked it together as a married couple again, right? So what was difficult about it? Did these other things come into play? Like, what did it feel like?

What was hard? I think for me, what was difficult was that it was just a lot of work. I mean, once we finally got into it and got serious about it, like Jason was just, I mean, we both worked hard, but he works harder than anybody I've ever met. And so it's hard to stay connected in your marriage when you're rarely seeing each other and then just coming home and crashing. Absolutely. Absolutely. Absolutely.

Yeah, that is hard because it takes the hours out of the day, right? Yeah. It is. There's a factor there. So you guys, Heather, you're having to rebuild trust. Yeah.

It takes a while. It's not instantaneous if you're smart. Yeah. Normal people, it takes a little bit of time to rebuild trust after that much deception yeah and um and so that's by degrees that's by increment um and yet you guys are working hand in hand on the budget during this time with money were you uh were you trusting each other on that part too yeah i think was that helping with that or is that hard i think

you know to your point i i that is completely my story and i think it was hard sometimes you know like i still had those like is he still hiding something from me you know like and um and it just takes time and consistency to start and you know and god in your life to start paving the trust again. Well, that's reasonable, and that's not unfair. It's unfair for the trust not to be building, but it's also unfair to expect it to be instantaneous without a track record. Absolutely. And so it's very cool.

You guys are very well done. I mean, it sounds like you've got some wonderful people around you in your life that are pouring into you and resetting a whole bunch of stuff in your lives. The spiritual walk that you described is absolutely powerful. That's so well done. Yeah, there's some good people there. That's good stuff, guys. Proud of you. Thank you.

Woo! We get to be a tiny little part of this big story this is a big story here it's a big one man that's so cool that's so cool so uh man good good good so now that you you know you come back together after all this stuff and we say all right we're gonna lean in on the money man that's just just just. Yeah, what was the big factor financially in that part of your story that helped get out of debt? So people listening that may have had all this life. What do you tell them they got to do? One on the same page, right?

Yeah, absolutely. You have to be hand in hand. You have to be hand in hand. You have to be facing it together. And then also, when you commit to getting out of debt and never using debt again, you only have to pay off that credit card one time. One time and you're done. All right. Count it down. Let's hear a debt-free scream.

$106,000 paid off in three and a half years. Heather and Jason. Three, two, one. We're dead free! Man, they are free. Free. Free. Wow.

Wow. Free on so many levels. It's a beautiful thing. Oh, my gosh. Thank you. Psalm 1830, as for God, his way is perfect. The Lord's word is flawless. He shields all who take refuge in him. Brian Tracy said, integrity is the most valuable and respected quality of leadership. Always keep your word.

Open phones this hour at 888-825-5225. Rachel Cruz, Ramsey personality, is my co-host. Matt is in Lansing, Michigan. Hey, Matt, welcome to the Ramsey Show. Thank you, Mr. Ramsey and Ms. Cruz. I appreciate the time today. Thank you. How can we help?

So my wife and I are big fans. We're Baby Step 7. We've been following you guys for a handful of years, and it's helped us get through some tough times in the past. And we're at a point now where we've got some money saved up, and we'd like to build an outbuilding on our property. And as you can imagine, the price quotes we're getting are rather outrageous right now. We have the cash, but struggling a little bit, parting ways with it, given the price quotes we're getting and feeling kind of like, is this inflation thing going to turn? And should we just wait it out a little bit more and want to get some of your advice on that?

How much are you spending on it? It's probably a good-sized barn. It's probably going to be like $75,000 to $100,000. Okay. So your quote, let's call it $100,000 in the current environment. What did you think it was going to be before all this garbage hit? I was expecting it to be about $45,000, $50,000. So it's almost double what your emotions were.

Yeah, pretty much. Okay. so what's your net worth uh 1.7 okay all right i mean matt you can i mean you can take the hit you guys can do it you have the money it's not it's not a crazy percentage of your world uh it's gonna be a nasty pill to swallow because you're just like but if it's something you you guys want right now and you're and you have the cash for it i mean you can do it you can wait it out the only the hard thing with waiting it out for me is we don't know when this is going to end we talked about a little bit of this last night at the event that we had, talking about inflation and all of that. But there's not a crystal ball.

We don't know. So let's say this is $40,000 over what you wanted to spend. And that's what the ouchie is. $40,000 is a percentage of 1.7, it's not a biscuit, dude. You can't buy a biscuit with this. I mean, it's not that big a deal. If it was $400,000, it was a fourth of your net worth or something, we'd talk about waiting and seeing if this inflation calms down or something.

But this is a very small percentage of your world. This is 90% emotional and 10% mathematical, this problem that you're facing. Would you agree with that? Because of the ratio of your net worth. Yeah, I would. I hear what you're saying. It was actually interesting. We were chatting about it last night, and we happened to stumble upon your live broadcast last night.

And my wife said, you should just call Dave and ask him what he thinks. I don't know. In 36 months, could you build that barn instead of for 90 or 100? Could you build it for 80? Probably. Yeah, it'll probably come down because it's cost of lumber, cost of labor. And those two things are outrageous right now, and I don't think they're going to stay where they are.

So you can probably wait three years and save $10,000 or whatever. But you know what? You're worth $1.7 million. It's 40 grand. Build a barn, man. It ain't that big a deal. Again, if it's $400,000 as a percentage of your world, I'd tell you to tap the brakes.

Let's wait on this stuff to calm down. But it's a $40,000 swing. And when it swings back, how far is it going to swing? It ain't going to swing back all that $40,000. So, you know, it is going to come down, though. I mean, I think you

could look up three years from now and go, I can build that barn that I just spent $90 on. I can build it for $70 now. I think you'll probably see that. But whoopee, this is why you've done all of this, so you can have this barn. I got a feeling there's a whole lot of stuff in your head that the enjoyment of this outbuilding, the things you're going to do here, I think it's something that's going to add value to your life or you wouldn't be talking about it right and it wouldn't be that big a strain emotionally if it wasn't going to add

value if it was just kind of yeah we just wait you know but nothing but you're actually calling about it because it means something you know so i'm building it if i'm in your shoes and uh by the way i'm building a you know 2500 square foot auditorium on top of the hill up here right now and steel prices doubled uh so um i bought the steel before they doubled because i saw a part of it coming but uh it's still you know stinking not on budget um but we're going to build it we're building it we're finishing it so. So it's there. And 50,000 square foot of commercial buildings, so a little different scale, a little different number, zeros on the end of this deal.

But it's a blow we can absorb, and it doesn't change our life. Same with you, Matt. And the enjoyment and the things that that event center is going to do for Ramsey Solutions and for helping people is going to be worth whatever my feelings are hurt about prices are. Because that's really what it is. It hurts your feelings. It makes you angry. The steel did what? But the biggest.

They want what for the electronics oh my gosh you okay yeah i just bought i just we just bought all the we bought all the sound system the other day we're putting in a warehouse because we don't even need it till the fall but same thing stinking chips it's just god but again the in context of this conversation, though, it is because it's with cash. It's a small percentage of the world, Matt and your example. But if you're having to replace a car, we talked about this in the last segment, maybe pause on that. If it's a big part of your world, there are times to pause, you guys.

There are times to pause and understand that inflation is there. That's right. It's a percentage idea. There are times to pause, you guys. There are times to pause and understand that inflation is there. Let some of this stuff wait out. That's right. That's right. I mean, you know, it's not a. It's a percentage idea. If you really think things are, this is going to come down, something's going to come down, then you wait it out if it's a big percentage. Right.

Right. And I think that's the thing. The ratios, that's the principles. Always look at the ratio of what's going on here. Again, if he had the ratio, an example would be if it was at a zero to that or not even a zero. If you had half a zero to it

and it's a $500,000 deal out of 1.7, then no, we're just going to wait. That's right. It's too big then. You need to wait that out because it's a lot of money in ratio but i love always the answer spend it when it's the wise time when it's wise and you can do it enjoy it matt like that's part of it i feel like everyone thinks like when they think of even ramsey or the show it's like oh you gotta

just sacrifice all the time so all you do in life is just sacrifice sacrifice sacrifice and yes you do let's live like no one else so later you can build the barn. But the later so you can live and give like no one else, we don't talk about as much. And it's so fun when you're like, yes, Matt. Then you can just buy the car. Do it. So fun. Live like no one else.

Later you can build the barn. That's right. Live like no one else. It gives you margin. It gives you options. It gives you choices. That's all money's good for. And it's all that small sacrifice.

Money is not good for anything except that. Right. It's good for the generosity that it can do. It's good for the stability that it can bring to your life. But it's not really just piling it up in a big old pile. It's not, in and of itself, it's of no value. It's what it does in your life. It's what, you know, the options, the different position you put yourself in, in your life. It's what, you know, the options, the different position

you put yourself in in your relationships and the different position you put yourself in in the community and all of those kinds of things. It's a tool. It's a tool.

It's not the end game. It's not the end all be all. If it is the end game, you got another problem. That's right. You got a spiritual issue. Yeah. And now you start

worshiping idols. Bigger barns. Bigger barns. There you go. So many barns. There's go. So many barns. There's a lot of barns in this story. Hey, James, it's a family trait. It's Friday.

It's a family trait. It's Friday. The exact wrong metaphors. Let us, give us a little grace. It's Friday. I love it. This is so fun. Well done.

Good show, James and Ben and Justin in the booth. We appreciate you guys. Austin. Austin, I'm sorry. And I can't get nothing right today. Got you. Austin works on the Rachel Cruze Show. Good job, Rachel.

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. This is James Childs, producer of The Ramsey Show. Did you know The Ramsey Show is one of the most popular podcasts in the world? Subscribe or follow today wherever you listen to podcasts. podcast.