The Ramsey Show - App - Should I Move Out of California? (Hour 2)

Episode Date: January 12, 2021

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🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studio. This is the number one show in America, The Dave Ramsey Show, where America hangs out to have a conversation about your life, your money, your relationships, your mental health. My name is Anthony O'Neill, host of the popular YouTube show, The Table, with Anthony O'Neill. And co-hosting today with me is one of my favorites, Dr. John Deloney, host of the YouTube and podcast show, The Dr. John Deloney Show. The number here is 888-825-5225, 888-825-5225. And America, listen, some of you all i know right now are frustrated i know some of you right now are saying what am i going to do different this year to change what happened last year i do

not want to experience the financial letdowns i had in 2020 i want a new life i want to reset my goals, my vision, my life. Listen. Hold on. We did that. We did it. How did we do it? We did it January 1. We had this kumbaya moment with ourselves and our little journals and our day planners with all those freaking ribbons in them.

We did it. Yep. And then 2021 shot out of the cannon backwards and hit us in the mouth. Yes. And here we are again. Here we are again. And we got to reset again. Okay, guys. And so tonight, our good friends, Dave Ramsey, Chris Hogan,

Rachel Cruz, and Craig Rochelle are hosting a free, can I say this one more time? Free, F-R-E-E, free reset live stream event to kickstart your money goals for 2021. They're going to give you the motivation and guidance you need to hit the reset button and say goodbye to money stress for good. So I want you to text the word reset, R-E-S-E-T to 33789. So some of y'all, you're not texting the word. And let me tell you right now, your wife is going to thank you for texting the word reset. Your husband is going to thank you for texting the word reset. Your husband is going to thank you for texting the word reset.

Your children, your great grandchildren, your family are going to thank you down the road at the end of this year for texting the word reset to 33789. You know why? Because your life is going to change tonight. And what else are you going to be doing? Nothing. Yeah, we are, dude. We're going to be. You're not.

You're not. You're really not. And here's the thing for me. Everyone needs a reset in life. You can't reach your money goals if your mind is not in a healthy place. One of the key things, Sean, I'm teaching specifically millennials because that's my target audience, is that your mind is a business. And when I say your mind is a business, I always tell young people, mind your business because your mind is a business. And when I say your mind is a business, I always tell young people, mind your business because your mind is a business. What you put

into your mind will come out of you. And what I love about this event tonight, we're going to put some solid information into your mind to help you reset and recalibrate your mind so you can go into 2021 with clear vision, with the process, with the plan to not just reach your money goals, but just to reach your life goals. And that's key there because it's not just going to be pom poms and fireworks tonight and cotton candy. Yeah. It's going to be a plan.

Yep. They're going to challenge you to not live into the nonsense and the hate and the frustration and everybody yelling at each other that's going on in this country. They're going to tell you to look in the mirror. They're going to give you a plan so you and your family, you and your friends,

you and your church group, you and you can start walking a plan to never have this nonsense happen again. And when you take care of you, you take care of your family, you take care of your street, you take care of your neighborhood, and you take care of your city, and then you take care of all of us, because we're all in this

together. Yeah, we're all in it together, and we want to see you win. And there's 200,000 plus people. I've already signed up! I've already signed up, but you know what? There are millions of us in America, and so I want to encourage you to join us tonight. My friends, my mentor, really helping all of us in America. And so I want to encourage you to join us tonight. My friends, my mentor, really helping all of us just reset. We're going to jump over to Cleveland, Ohio and

talk to Jordan. Jordan, good afternoon. How can Dr. D and I help? Hey, Mr. O'Neill. Hey, Dr. D, thanks for taking my call. Hey, man, thank you so much for calling in. Call me A.O. You ain't going to call me Mr. O'Neill, man. I'm the young one. Call Dr. G, the Mr. Doctor. All right. All right. Sounds good. So basically I am going to be receiving a pretty significant amount of money, about $2,000 a month for a VA claim. Okay. And that is for the rest of my life. We've been, my wife and I are young. We're 26. We've been good stewards of our money up to this point. We've got about $75,000 in the bank and no debt.

Both of us have our undergrads paid for and completed, and she's currently in a master's program on a scholarship. Wow. So we are extremely blessed in every way. And now we just found out about this payment that we're going to be getting every month and feel a little guilty, feel a little overwhelmed. What's the claim for, Jordan? For disability from the military.

Okay. So I want you to take all that guilt you have, and I want you to look at it like it's a brick that you're holding in your hands, and I want you to put that down. Okay? Okay. The VA does not write checks for fun. They don't write checks for people to feel good.

You gave your time, your service. You put it in. Your wife put hers in, and whatever settlement y'all came up to with the VA, I want you to look in the mirror as though it's earned, it's yours, it is what it is. And feeling guilty about it is not going to help you be a steward of that money. It's not going to help you be a steward of your mind every month when that check comes in. It's not going to help you be a steward of your grandkids. So put that

guilt down and then take that money and follow the baby steps plan. Be a good steward of it. Give it as you're able to in the right places and have a joyful rock and roll life, man. Jordan,

you're already being a good steward of not just your financial resources, but not to get too spiritual in the show, but you're just being a good steward all the way around. Okay? So I want you to celebrate that. God is trusting you.

And I believe because he can trust you with a few, he's just elevating you with more. And so continue that heart. Continue having that heart. Continue doing what you're doing. But let's talk practical, man. What are some of you and your wife's goals?

Are you guys currently homeowners right now? We are not homeowners right now. We have a five-year plan. We want to own three rental homes within the next five years and paid for in cash. Oh, boy. And this right here kind of puts a nail in the coffin to where that's going to happen. Our income is about $100,000 combined. So we're on track to knock that out now.

There we go. Pretty easily, I think. But, yeah, I just wanted to talk. So I appreciate you guys saying that. I just wanted to talk to somebody about it, make sure me and my wife weren't just in a feedback loop, but we kind of ran through the same motions already with each other. But it's good to hear somebody else say that. Were you a combat veteran?

Did you go overseas? No. Okay. No. So, man, it's common, and you may know this, but we'll just put it out there for everybody listening. It is common to be a veteran who's not a combat veteran to be in a better financial situation than your community, some of your other fellow vets, and think that you're scamming the system. You got something they don't.

And like Anthony said, you're being a good steward. You worked your butt off. You worked hard. You left something on the table for the rest of us and I'm grateful for you. Follow your plan and man walk with your head held high brother. Y'all are doing it right. This is amazing. I'm so

happy for you too man. Congrats. This is The Dave Ramsey Show. I heard a statistic recently that absolutely blew my mind. In the U.S. alone, over 3,000 people die every day without life insurance. Now, I don't want to sound unsympathetic, but this drives me crazy. What are people thinking? I don't understand how taking care of your family is not a top priority. Most of you probably just spent a bundle on Christmas on things you really didn't even need. And now you're making New Year's resolutions that are focused on yourself.

But if you want to use the New Year as a reason to do something right, like protecting your family, then take care of it right now before it's too late. Term life insurance is something every family needs, and that's why I talk about it every day. It's not complicated, it's not expensive, and Zander Insurance is the only place I recommend. Go to Zander.com or call them at 800-356-4282. Please learn from other people's mistakes and get this taken care of. That's Zander.com or 800-3525-5225 888-825-5225

This is the Dave Ramsey Show. My name is Anthony O'Neill, host of the popular YouTube show The Table with Anthony O'Neill coming soon to podcast. We'll be announcing that here actually within the next couple of weeks. I'm really excited about that. And my good friend, dear friend the Dr. John

Deloney who is the host of the podcast and YouTube show The Dr. John Deloney, who is the host of the podcast and YouTube show, The Dr. John Deloney Show. You know, one of the greatest things I love about your show is, man, you talk about some of the realest and hardest thing on your show. You want to turn on your mic? Yeah, here's the thing I got to cut on. People are struggling. We're looking at the data, man. Marriages are in trouble.

People have become great partners. They've become great business operators, as we've had to work from home, run families from home, shuttle kids back and forth, figure out meals and deliveries and scrap and claw. And, man, intimacy has gone out the window. Marriages are struggling. Relationships and dating relationships are struggling. People are putting off this and putting on that. It's a tough, tough season, not to mention just the acute psychology of being in debt,

the acute psychology of getting laid off or maybe going to get laid off or all this political trash that's going on. People are, man, they're just spun out. And so, yeah, we are getting into the hard stuff. You went safe. You went safe. But I wouldn't say that, you guys. there are some deeper stuff that we all battle um and i think dr john will uh be safe in the political way of saying things but he talks about some things that are

embarrassing with you know that i think a lot of us in this in america have see i don't think they're embarrassing i think we don't talk about it to our detriment right yeah but i mean one of your shows is be honest here on the d Ramsey Show, we talked about it yesterday. You talk about the battle of pornography and how that's messing up some marriages. You're helping marriages get through that. Individuals trying to figure out what's cool, what's not cool, what's happening to my brain, what's not, all that stuff. Right. So we don't get those kind of questions on the Dave Ramsey Show.

Sell the truck. Sell the truck. Right. But what I want to tell america is listen if you're struggling if there are some things that you're going through and you really just want to get some sound counsel some sound advice about anything when it comes to your mental health when it comes to your marriage when it comes to your relationship um this man has an amazing team uh kelly who's his phone screener for today randy shows his phone screener for the Dave Ramsey show is his phone screener

and I'm telling you right now that they're setting him up to win and to help you and I really I mean I watch his show every day and I'm like man this dude is talking about some real heavy stuff but you're saving so many lives and marriages I appreciate that you know and so America

I want y'all to go over and check my man out on YouTube. It is the Dr. John Deloney Show. Download the podcast. When did your podcast come out? We're at show 67, I think, 65, something like that. What days? Monday, Wednesday, Friday. That's when it comes out.

Thank you, James, his producer, James. He didn't know it was on the schedule, y'all. Monday, Wednesday, and Friday is when his show comes out. Listen, check him out, America. I'm telling you right now, it will producer uh james he didn't know his own schedule y'all so yeah uh monday wednesday and friday is when his show comes out so listen uh check him out america i'm telling you right now it will bless you and uh if you really want some help give kelly his phone screen or call and she'll get you on there hopefully you know how she rolls uh but uh she'll let you know we're going out to austin texas and we're going to have a conversation with sam. Sam, good afternoon. How can Dr. D and I help? Hey, guys. So my husband and I are between baby steps three and four,

and we've kind of been paused here for about a year. Okay. And we have $15,000 in savings above our emergency fund, and we're wondering, if we're trying to buy a house or save for retirement, we don't really feel like we have the funds to do both. So what should we focus on, and how should we, how long is it okay for us to pause the baby steps, I guess? Yeah, yeah, well, okay, talk to me, Sam. $15,000 above your three to six months already. Right.

Okay, how old are you and your husband? We are 28, and we actually paused our baby steps to make the stork fund because we have an eight-month-old. All right. Congratulations. I just literally learned about the word Stork yesterday with Dave for the first time. And I was like, Stork? What in the world?

He was like, yeah, they're storing money, sending money to Paul's babysitter. I said, okay, cool, great. That's a new word. So, yeah, second time hearing it today, and I wasn't confused. So, cool. Well, I actually heard it earlier on the show, and I thought it was cool. Love it. I love it.

I love it. I love it. So, here's the thing, Sam. How much house are you trying to purchase? For us, we feel like somewhere between $250,000 and $300,000. Okay. All right. So, we know the 20% down payment and the 15 year fixed mortgage

so to get there we really need like $60,000 and maybe even a little bit more just to have for furniture and appliances and stuff that we don't want wrapped into our mortgage good for you and that's loving

and so here's the thing I don't have a problem with you pausing at your age right now pausingusing baby step number four, which is investing 15 percent of your income into a 401k or Roth IRA or any type of retirement account. Now, here's what we also teach. You want to do the minimum of 10% to put down on your home. So if you did the minimum of 10% on a $200,000 home, you're looking at $20,000. If you're doing a minimum of 10% on a $250,000 home, you're looking at about $25,000 to $30,000. So you all are close to that 10% number. So we always say the minimum. Now, yes, we want you to put down 20% to help you avoid the PMI. Absolutely. If you can, but if you and your husband are in a great place of life to where you guys are okay with, you know, putting down 10, 10% to get into the

home, that's okay. That's that. We just say the minimum of 10% to get into a home as long as you finance it for 15 years with the fixed rate. But you guys are not in a rush, though, correct? No, we're not. We actually need to wait a little bit longer. My husband just changed jobs and he works for a home builder. And one of their benefits is you can get a great deal on a brand new home it's a discounted because it's an employee benefit so to take advantage of that he has to work there for a year so my other question I guess is should we at least be in um heading towards his 401k what the employer

matches. So here's the thing. Babysense 3B is before Babysense 4, 5, 6, and 7. So you do all of 4 through 7 all at the same time. Now, because you do have a fully funded emergency fund, I don't mind you investing

and saving at the same time. So if you're in a comfortable position and you feel as if you can go ahead and invest a 15% because what I don't want you to do, I want you to invest a little bit. I either want you to invest all the 15% and save a little for your house or put all into your house and then start investing into it. You see what I'm saying? So it's like if you're going to start investing either or yeah either or so aggressively save so you can get into the house

quicker and you can start investing a lot more which is the 15 or invest the 15 and start saving and setting aside money and also anticipating the huge discount you all get from building a house with your husband being a part of the company that builds homes. That's what I would recommend. Okay. All right? All right. Well, thank you guys so much.

Oh, man. Thank you so much. You bet. Thank you. Congratulations on that little eight-month-old. Yeah, man. It's amazing how I'm, man, I just love the fact of hearing young people in their 20s starting to call into the show and ask questions like, hey, how do I do this?

We want to do it right. We want to avoid debt. We want to build wealth. We want to be homeowners. We want to travel. This is starting to become new, man. And we want to do it the right way. That's the thing.

We watched our parents grind. We got these student loan payments and we went, whoa, and we Googled, what do I do now? And Dave Ramsey, we don't know this guy. Yeah. Help. Yeah. You said on the internet you could help. What do we do now?

And it's not some get-rich-scheme and not some fairy dust, man. You've got to put in the hard, grindy work, right? You have to. You really do have to. And so young people listening right now man i'm proud of y'all i don't care what no one says about our generation we got this and we will be better than our parents uh we will provide for our families we will build true wealth put the hard work in right we're gonna put the hard work in that's right and we're gonna be all right and

i'm so excited for the next generation after my children. They're going to be some wealthy generation of people. I'm excited. This is the Dave Ramsey Show. 888-825-5225. This is the Dave Ramsey Show. My name is Anthony O'Neill, host of The Table with Anthony O'Neill. Joining me is Dr. John Deloney, host of the Dr. John Deloney Show. And Dr. D, we got a blinds.com question of the day. Talk to us, brother.

That's right. Find out for yourself why blinds.com is the number one online retailer of custom window covering. You get free samples, free shipping, and with the new promos they run every month, you'll save even more. Use promo code RAMSY to get the best deal. Rules and restrictions apply. Today's question comes from Michelle in Texas. Michelle writes, My father recently passed and left 50% of his house to his four kids.

Oh, geez, I can already tell you. And 50% to our mom in his living trust. My mom married two years after his death. Her and her new husband lived in the house for five years, and then those folks sold the house and moved across the country. When she sold the house, which netted them over $400,000, I asked about the inheritance for us four girls. She said she created a new living trust with her new husband and we would be getting the inheritance from my dad upon her death.

I was shocked and very sad as I feel like my dad's gift is not getting the honor that it should. Thanks for the help. That's messy, Anthony. Very, very messy. My mom married two years after his death. My father recently passed on that 50% of the house to his four kids and 50% to our mom and his living trust. Yeah, you need to get an attorney.

Yeah, well, you got to make a decision here. Number one, do you want to get an attorney and go after mom? Yeah. Essentially, $200,000 of that should have been hers. Yes. And then there was four kids that were going to divide up the other $200,000, which would have been $50,000 a piece. Yes.

Because her living trust should only cover her $200,000, not what was automatically given to you from your father. And so I would definitely just call your mom and say, hey, mom, listen, legally, you really don't have the grounds to stand on here, and we're asking if we can resolve this respectfully, you know, with love. This is family. We shouldn't have to include an attorney. I'd actually go before that i'd get all four kids and get them on the same phone call or the same zoom call and

say here's the reality of our situation do we want to have this conversation do we want to do this with mom do we want to are we all ready to go to war with mom or do one of us want to write a letter to mom and just say hey we don't feel this was the right way to do this. And it may be that mom got some bad advice. Maybe that mom, I'm going to think the best of mom right now, but yeah, it looks pretty shifty. Once you sell that house, once that house is sold, then that money needs to be divvied up in the right way. Absolutely.

Absolutely. Praying for you. Ken is with us in Los Angeles, California. Ken, good afternoon. How can Dr. D and I help? Hey, how are you guys doing today? Doing great, man. How about yourself? I'm all right. My head's above water, so I can't really complain, but I'm still swimming. Excellent, brother. That's a good attitude. I love it. How can we help, man? So I got a little bit of an issue here that I've been thinking about for a while. I'm losing my job here by the end of the month.

A couple of guys, me and a couple of guys are. I've been given another job offer, but without a pay increase at a different location. It's a lot further away. My only issue is I no longer want to live in California anymore. I've been thinking about moving out since last year. Haven't really took that dive. So just wondering if I should do that or not. I got a little bit of money

in savings and I got some more money in a checking account. So yeah, I'm just running into a little bit of issue here. Our friend Ken Coleman says, don't jump off the dock until you got a boat there to jump into. And this one is very tempting because you're in California.

Yeah. You don't know this, Ken, but you're the only one that we've talked to in the last six months who wants to leave California, by the way. Really? No, I'm being sarcastic, brother. Every person we talk to. Like, I'm getting out of here. I'm getting out of here.

Man, i get the sentiment i would take if i'm you i would take that second job and begin really putting in the work to see what it's going to look like to get another job right like where you would you actually live where would you go just i mean you can man you can hop on a train and pack it up old school how old are you um i'm in my early 30s okay um. Kids, married, anything like that? No kids. I'm single. Okay.

No marriage, no debt. Ken, where's the other job offer? Where is that? So it's a little further away. It's North Orange County, like Anaheim area. Okay, so it's still in California. 20 miles. Yeah, it's still in California.

Okay, so right now your priority is finding you another job, another source of income, all right? And so if you know you're going to lose this job within the next month or so, what I'm doing is if your goal is to leave California, start applying for other jobs outside of California. If you do not land something by the time you lose your job and by the time you get rid of your emergency fund, then yes, you need to take that job that is still there in California. Now, if you can land something inside of outside of California, then absolutely. I would definitely I would leave California. I love California. I'm from California. My family still lives in California. But right now it's not beneficial as far as an income money and just the way the state is being run right now.

That's just my personal opinion. That's not Dave's. That's not John's. That's that's my personal opinion. I will leave. But if I can't find another job, I'm not leaving California without some source of income and without a job and without stability. I'm going to stay there. And while you work in this other job, if you have to go this route, continue looking. I would encourage you to jump on a King Coleman's dot com website and use his website, not his website, but use his resume builder from his website.

He'll teach you how to build a strong resume and start shipping that stuff around, man, outside of California. But I would start the process. Make sure you take care of the priority. Get a job. Get some source of income in right now so you can be a stable young man. Make sense?

Yeah. That's fine. Alright, man. Appreciate you for calling in. Elena is in Washington, Seattle. Good afternoon, man. Appreciate you for calling in. Elena is in Washington, Seattle. Good afternoon, Elena. How can Dr. D and I help? Oh, good afternoon. Thank you for talking with me. Yeah, so my husband and I just paid off our home mortgage in December.

Way to go, dude. That's awesome. Yeah, so we're excited about that. So at this point, you know, our home, it's fairly old. We live on 15 acres and desperately need a renovation, remodel, electrical, all kinds of stuff. Plus we have an old barn that we'd like to fix up as well. And so the cost of that probably is going to be at proximal $300,000. So I guess the question is, you know, we are both 46 years old. We plan to retire when we're 60. We have about

$400,000 in retirement as of right now. So do we save and pay for our remodel cash or do we refinance and get a loan for that? I mean, I guess that's what you would recommend. You just worked so hard to unshackle yourself from the machine. Y'all put in so much time, you ground, you clawed, you scratched. Don't hook yourself up. Don't chain yourself up voluntarily back to another $300,000 loan against the place you finally paid off. Please, please don't do that. I know you want that kitchen and that barn and that another $300,000 loan against the place you finally paid off. Okay. Please, please don't do that. I know you want that kitchen and that barn and that Pinterest is killing you right now.

It's killing you. Don't. Yeah. Okay. Don't, don't, don't, don't, don't. You're free. You are free. You are free.

Don't voluntarily get your husband and an iPad with Pinterest on it and go back into another cage and smiling and hug each other and slam that door shut behind you. Don't do that. Yeah, and here's why, Elena. You're getting close to the end of the time you want to work. So these next few years, you need to be very intentional

with every decision that you make that gets you close to your goal. And your end goal right now is to retire inspired in the words of Chris Hogan. Your end goal is to retire a millionaire. Your end goal is to retire in a healthy financial place. You do not want to be 60 years old, getting ready to retire, and you're still paying for renovations you did 15 years ago. Because they're not going to be cool in 15 years.

Yeah, yeah. So focus on the end goal. You're close to it. Calm down. Pay cash. And I promise you, you'll thank yourself that you called into the show, talked to this crazy guy named Dr. John Deloney and this cool guy named Anthony O'Neill, and we talked you out of refinancing.

Don't do it. Don't do it. This is The Dave Ramsey Show. tonight is the night you guys january 12th 12th at 7 p.m uh that you can reset your future you can reset the direction you are going with our free reset live stream event to kickstart your money goals for the year 2021. Dave Ramsey, Chris Hogan, Rachel Cruz and one of my favorite preachers of the gospel. Craig Rochelle will give you the motivation and guidance you need to reset your life for this year. Now, a lot of this will be around money because you have three money experts on the stage um and craig rochelle is uh i call him like the life expert you know he's just he just

has a lot of wisdom when it comes to really having a a good life and i want to encourage you to stop what you're doing right now i want you to pause what you're doing right now. I want you to get off social media right now. I want you to go to your text messaging app on your cell phone and I want you to text the word reset R-E-S-E-T to 33789 right now. Again, I'm going to say that one more time. Text reset R-E-S-E-T to 33789. And what you're going to do is you're going to sign up and you're going to take the first step towards lasting, lasting financial peace. Or you can go to Dave Ramsey.com forward slash reset.

And here's what I love. And we've been talking about this, this entire hour. And the reason why we are just hammering this in on use, because I remember meeting a young lady john and she was telling me about the year 2020 and she said i need this year to be different just i cannot afford for this year year 2021 to be the same as 2020 and she says it has to be different and i told her one thing it will be different if you're

different juice that's right that's it it will be different if you become different and the first way and the first ingredient to becoming different is to reset your mind is to reset how you think of things how you process things how you evaluate. And that's what's going to happen tonight with Dave, with Chris, with Rachel, and with Craig, and with the hundreds of thousands of people who will be watching. We are all going to get a reset. And when we reset, man, we start off fresh. Now, here's what we're saying. Here's what we're not saying.

We're not saying this year is going to be easier. But you can approach this year better with a fresh perspective on life. And moms and dads, here's your big moment. We say it all the time that kids don't listen to you. They watch you, and they watch you, and they watch you. So tonight, if you've been thinking, man, I've got to start doing this a little bit differently. My kids are driving me crazy. But now's the time that you can step up.

You can set an example. You can tell all the kids, hey, everybody's cell phone's going in a bin tonight. All of them. Mine included. We're turning them off. We're putting them in a basket. We're going to turn on the TV. We're going to get some nonsense food.

We're all doing this as a family. Everybody, from little Josephine, who's five, to my 18-year-old kids who are planning on going to college, we're all going to have notes. And we're going to sit down and we're going to get not only some good pep talk, some good wisdom and some good excitement. We're going to get all planned. Do this and do this and do this. And as a family, we're going to reset.

As an individual, we're going to reset. as a family we're going to reset as an individual we're going to reset as communities we're going to reset literally hundreds of thousands of people have RSVP'd for this free event. I tell you what Anthony when they told me what the goal was behind closed doors I smiled and I was like there ain't no way

there ain't no way and more and more and more people are saying we We're coming. We thought the calendar was just going to roll over and everyone was going to exhale. The universe was going to be like, all right, y'all had enough. 2020 was enough. Yeah. Oh, man.

2020 started, Anthony. I love it. The wildness hasn't started. Well, it started. Let's be honest. The wildness has started. But, man, you're not going to be doing anything else. Do this.

Do this. Do this. Yeah. Text the word RESET, R-E-S-E-T to 33789. Go to DaveRamsey.com forward slash reset and I promise you, you will

be happy. John, where are we going next, man? We are going to go to Blaine in Greensboro, North Carolina. Yes. What's up, Blaine? How are we doing? Doing great. How are you doing, guys? Outstanding. What can we do to help, brother? Hey, my wife and I own a rental house and wanted to get some guidance on whether it's best to sell or go ahead and keep that. So I purchased it out of college. It's been a great house for the last 12 or so years., turns a profit every month. We no longer live in that city.

I'm acting as the property manager. We only owe about $17,000 left on that house, scheduled to pay it off in the next three months. But if we do sell it, we can basically pay off our primary home and be debt-free. Sell it. Okay. Anthony and I are going to disagree here. I'm going to tell you why I think that.

I'm not saying I disagree, but I want to hear a little bit more information because $17,000 to pay off a house and then you have another extra set of cash flow coming in and you focus on just paying off your mortgage, that might be a good decision down the road. If you want to be a landlord in another town. Oh, this is in another town.

Yes. Correct. I missed that. So I am so sorry. I am with John Deloney here. Finally. Sell the house. America 2020 is turning around.

Anthony and Deloney on the same page. It's going to happen. Now, Blaine, talk to me a little bit more. How much is the house worth? Because you owe 17 on it. I heard that, but how much is the house worth? It's worth about 275. So it's in a really good location and would go very fast. Yeah. Okay. And how much do you owe on your current mortgage? We owe about 260. 260. Okay. Now, any other debt?

No other debt. Okay. Do you have a fully funded emergency fund? We are working on that. We've got about $600,000 in retirement. We just need to put some into the emergency fund. So you have $600,000 in retirement right now, and then you have $275 coming in from this equity, so you have

$15,000 left on left over from once you pay off your home. You can put that. How much do you need for three months, man? For the emergency fund? Yeah, I would say $20,000 would be nice.

$20,000 would put you at a good, comfortable three months. What's your income right now? $130,000. $130,000, yeah. Pay off the house, take that $15,000, put it into the bank. The very next month, you're putting $5,000 into the bank so you can have your immediate three months of emergency because it sounds like you gave yourself some cushioning to $20,000,

so I'm okay with that. And then from there, here's what I would suggest. Now you're in a comfortable place. I am a huge fan of real estate. Dave is a huge fan of real estate. So now the next move is, how do you save back up to get back into the real estate business inside of North Carolina?

You know, that's the next move. Because I want you to start thinking about what are some other streams of income you can start generating in to start building your net worth. As long as you're fully funded, you're with the emergency fund, as long as you have 15% going into your Roth IRA and your 401k and your retirement plans, from there, I would definitely look into, all right, let's set aside some money so we can start buying some cash property and we can start generating some other streams of income for us. Hey, Blaine, before we hang up, I have a quick question for you.

What do you make every month? What do you net off of your rental property? We net about $500, and it's just been going right back into paying down the principal. So what is your mortgage every month? About $1,000. Merry Christmas. Yeah. Merry Christmas. Yeah. Merry Christmas.

If you go pay your house off, you're going to net $500. You're going to double your money every month. Does that make sense? And then think about it. Down the road, I'm not really worried about the monthly payment down the road. I look at the equity of the home. And so you're in a good place right there, Blaine. I'm really, really, really excited for you, man.

Thank you so much for calling in. Congratulations, man. Hey, thank you. I love that conversation. I love that, man. I'm telling you right now, because that's what I'm doing with my house right now. The townhome that I'm in, that's going to be an Airbnb or a rental property. So you're racing to pay it off as fast as possible? It will be paid off soon. It's a four-bedroom, four-bath, nice, tall, overlooking the city with a rooftop on it. And I literally bought that place. I don't want to live there forever. I don't like it like that.

Yep. But I bought it so I can think about the future. Gotcha. I want my kids to have that when I get older. You know what I'm saying? And so I love talking about it, but we got to do it the right way, man. Got to do it the right way. Got to do it the right way.

You understand what I'm saying? Be smart. Be smart. Be smart. That's right. This is The Dave Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money in under 10 minutes. Check out the Ramsey Call of the Day podcast wherever you listen to podcasts.