The Ramsey Show - App - Should We Sell Our Home Now or Wait To See What the Market Does? (Hour 3)

Episode Date: March 17, 2021

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, 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 am Dave Ramsey, your host. Dr. John Deloney, Ramsey personality, best-selling author of the book, Redefining Anxiety, is my co-host today. Open phones at 888-825-5225. Kelly starts this hour in Colorado Springs.

Hi, Kelly, how are you? Hi, Dave, how are you doing? Better than I deserve. What's up in your world? Well, my question comes around the insurance, the term life insurance. My husband and I went through the ender to get insurance and I did not get approval for insurance. And so I'm wondering what is the, what is your recommendation going forward? had cancer in 2017 um and lost a brother at 29 and my mom has a pacemaker since she's probably been there mid 40 so you know health-wise you

know i know that we're kind of i'm risky but what is your recommendation? The pacemaker in your mom is not the deal breaker. It's the cancer from 17. And the further you get away from that with a clean bill of health, the more insurable you'll become. So your journey with Xander is not over. You just got your first no. And circle back with them and ask them to check with the underwriter and find out at what point they would look at your situation

because they can insure past cancer. Now, maybe not since 17, but maybe it's five years instead of three years or whatever. Okay? So we need to learn that as a guideline, number one. Number two, the only way you're going to get insurance is where there's no medical involved, meaning you don't have to sign anything or make any statements about health. And those are called guaranteed issue policies. And they're usually small policies, and they are usually about five to ten times more expensive than regular term

insurance. And so where you have seen them is like if you've ever seen, like when you open up a checking account at the bank, they'll send you a thing, or your mortgage company will send you a thing that says you can buy mortgage insurance to pay off your mortgage if you die. Those are typically guaranteed issue policies. That's one of the larger ones you could buy. And you can go get that one if you've got a mortgage, which would be really helpful.

Yeah, we do have a mortgage. Yeah, you can probably get that. Call your mortgage company and ask them if they sell mortgage life because they love to sell it. They make a lot of money on it. It's five to ten times too expensive. But it's a way to get your mortgage paid off in the meantime. And you can cancel it later. You don't have to keep it forever if you become qualified you know two or three years from now you get a full regular zander term insurance policy that's less expensive you can cancel this

crap but you've seen it with your checking account ten thousand dollars insurance you can just pick it up sometimes even on the back of a magazine or sometimes an association you belong to with your professional career will send you something, you know, and it's just, it's a $20,000 policy, a $30,000 policy, a $10,000 policy. Sometimes people will get three or four of those, kind of stack them up. It's an inefficient way, an expensive way to buy insurance, but at least you've got some. Meantime, you're getting out of

debt you're piling up cash and reaching towards self-insurance so that if something happened to you wouldn't actually need any insurance because uh the kids are grown and gone there's a pile of cash and no debt then he'd be okay without your income uh but i the mortgage life is probably the biggest chunk you could knock out and And then just stay in the game. Don't just say, well, I can never get life insurance because I once had cancer. That's not true. It's just that your cancer-free date is too recent. Because, you know, basically we all know that life insurance is priced or issued based on probability of death.

So as you get older, it's more expensive. You're more likely to die if you're 60 than if you're 40, statistically speaking. And same thing if you've had cancer than if you hadn't had cancer. And so when you do get it, it's going to be double what regular term is, but it'll still be less than the other insurance i'm recommending right now so what is your so sheila and i we redid our wills over christmas um we as a part of just our annual planning and and discussions and she's transitioned in the last couple years to staying at home for a instead of working and what's your recommendation for like a stay-at-home mom or a stay-at-home dad when it comes to life insurance? In a middle to upper income family, I put $400,000 on them.

Okay. With the idea being that it would create $30,000 to $40,000 worth of income off of that much invested to hire Mary Poppins. Okay. Because we've got to hire Mary Poppins if something happens to Mama. Right. And, you know, in other words, in a sense, we're putting an economic value on a stay-at-home mom. Right, right. What it would take to replace the duties that she has. Driver, tutor, maid, chief cook and bottle washer chef.

Yep. And I'm in a position where, I mean, y'all would walk through that season. If something happened to Sheila tomorrow, y'all would walk through that season with me. But there are millions of men or women who'd have to go to work on Monday. Yeah. I've got to be there, right? Or I'm working on the clock or something. So every moment I stay home.

So that's good advice. I didn't know what the number would be. Yeah. And, you know, let's say your household income, let's say we've got a stay-at-home mom and the husband makes $35,000. Well, the average household income in America is $59,000. So this is a lower income, a lower below average. Then you'd probably put $250,000 on her because you would have a different level of, not to say she's not as valuable at home as someone else, but you would just expect a different level of service and care from the people that you hired to come into your home.

It's that kind of situation. So, plus I'm trying to not spend so that I get much money on life insurance, you know, if I can. That's the idea. But yeah, so typically, folks, we tell you to have 10 to 12 times your income on you. So if you make $50,000 a year, either one of you, if you had 10 times, that would be half a million. 12 times would be $600,000. And so if something happens, the spouse has $600,000 to invest. If they invest that at 10% for round numbers, that's $60,000. And so you're making 50. You got, you know, so you don't buy too much.

You have to sleep with one eye open, right? But the but but, you know, you want to have enough invested that without touching that amount, the income off of it replaces the income of the one who died. I love it. And that way the family can go on and uh it changes everything and the most mind-blowing tear-jerking stories over 30 years of doing this are not 65 year olds who died it's 27 year olds 35 32 year olds with a brand new baby and Dave, I've looked at those folks in the eye. They got a million dollars or they don't because of the cost of a pizza a month.

May I ask you that question? Term life insurance from Zander is about as noble a product as I know of. It's really important. Safe place to land. This is The Ramsey Show. I heard a statistic recently that absolutely blew my mind. 43% of Americans are not protecting their loved ones with life insurance. This drives me crazy, people. What are you thinking?

Taking care of your family has to be a top priority. Think about it. If you died today, would you be the hero by making sure that your family had the money necessary to carry on their life without struggle and hardship? Would they be able to pay the bills and plan for the future? That's what term life insurance is all about. Regardless of where you are in the baby steps, you've got to make this a top priority. Have I gotten my point across yet?

That's why I talk about Zander Insurance every day. They keep it simple and make sure they find you the best rates out there. Zander will do their job to find you the best rates and make sure you're served like I expect. But you have to take the first step. Go to Zander.com or call 800-356-4282. If you feel like you should have made more progress on your debt by now, I understand. When it comes to paying off debt, sometimes it feels like all grind and no reward. Here's the thing. When you try to do it on your own, you're more likely to fall back into bad habits. That's why when ish happens, you stop making progress.

And that's why you need Ramsey Plus. Ramsey Plus is our step-by-step money plan that will give you the accountability, the encouragement, the practical tips that you need to pay off your debt faster than you can do on your own. When you have someone in your corner cheering you on, you make the tough choices that get you where you want to be. Ramsey Plus helps you go from ish to all in.

So you can finally keep more of your money. To start your free trial of Ramsey Plus, just text the word trial to 33789. A free trial by testing or texting trial to 33789. Open phones at 888-825-5225. Dr. John Deloney, Ramsey personality, is my co-host today. Jen is with us in Orange County, California. Hi, Jen. Welcome to the show.

How can we help? Hi, Mr. Ramsey and Dr. Deloney. Thank you so much for taking my call. Sure. Me and my husband have a life household money question for you. We have a couple different options for me potentially starting to work part-time that we're considering, and we wanted to get your opinion if we've considered all of our options and what is the best way to maybe test those options.

We are on baby steps four, five, and six, and we're both working right now. And we love our careers. But more recently, I just felt a tug to want to be at home more. We have two kids, a five-year-old and a two-year-old. And we've also realized that how much work there is for managing a house and the cooking and the laundry and appointments. And so the two options we're really looking at is, is me going part time when the five year old goes to school next fall.

Um, and we can still pay off the house in, in a little less than 15 years. If we do that, um, the other option we're looking at because we really want the freedom and getting the house paid off is, is to suck it up for like three years and pay off the house um because then i wouldn't really have to have to have the option to work

maybe um but that would mean maybe doing more of a baby step 3b4 ish and bringing the retirement down to maybe the company match so those are the two options we're considering. What do you make? Together we make about $165,000. No, no, no. What do you make? $165,000. You make $165,000? Yes. What does he make? About $135,000. What does he do? He's in finance for a local restaurant company. And how old are you guys? We're 37. Okay. What do you do? I work for a medical device company in regulatory.

And you can do that part-time? I think I have options, even if the company I work at currently wouldn't be willing to do it. I think I know enough people in industry or could potentially consult if that company or another company wouldn't hire me. Okay, so if you went part-time, how much does it cut your all's income? You're from $165,000 to what? One, about $80,000. So about in half? Yeah. Okay.

If I'm in your shoes, I'm going part-time in September when the five-year-old goes to school. Okay. The way I decided that was, this is not a question of financial well-being. This is just a question of how fast you get rich. Yeah. You cannot have those years back yeah i'll trade i'll trade getting rich a little slower for you to be there with the five-year-old when she comes home making her cookies or whatever the scenario is you want to do yeah yeah that's quality of life hard to hear that

okay it's quality of life well the thing is, you get tremendous satisfaction, and you're tremendously good at your job. You don't hate your job. No, no, not at all. You're a professional woman. I mean, you're killing it. And so you're really trading something that you love for something that you love more. And, Jen, you need to know, like I'm'm telling you like you don't know this there is an entire

industry there's an entire cultural ethos that is against women having peace period so if you are at work crushing it at 165 you and your husband are just sailing through life

there is a part of that culture that's going to tug on you and say, why aren't you at home? They're going to shame you for not being home with a baby. What kind of mom are you? Yeah. And you're going to take a half pay cut, still making double the average U.S. salary. You're going to go home,

and there's going to be an industry telling you, seriously, what kind of modern woman are you? You walked away from that career. What's wrong with you? You hate your family financially? So there's a moron out there somewhere to shame you no matter what you do. Right. And so here's what you have to do as you make this transition.

And I'm speaking from somebody. We've made the same transition in my house, okay? You've got to get a couple of people around you that are going to be able to walk alongside you as you make this transition. You're going to have to learn new skills. And most of us don't think I have to learn skills on how to run a household. I can just quote unquote, take care of my kids. It's more complex than that. You got to learn some new things and you got to have people around you that you can reach out to and say today sucks. And I love my kids, but I don't like them today. And then aren't going to judge you and say, you sucks. And I love my kids, but I don't like them today. And then

aren't going to judge you and say, you're the worst mom. And we're going to send you mean cards and pray for you, but they're going to laugh and send you funny memes. And you're going to go on with your day. And then there's going to be people who are going to pick you up on the work side of it. And, and, and, but you got to have folks who walk alongside you. I just, Dave, I know too many folks who go home to follow this call to be at home with their kids, and then it just is a silent vortex there. And they get lonely, and they start doubting, and then they start looking online, and then everybody's telling them what a loser they are, and they made the wrong decision. And it's hard. You've got to have people walk alongside you when you do this.

This is when you learn that Facebook friends are not friends. They're not your friends. No. No. They're not real. They're not. They're not your friends. No. No. They're not real. They're not. They're not real friends. No.

Gosh. They're not. Oh, my gosh. Yeah. Jen, go home. Go home. And it's going to be hard and worth it. And use that wonderful brain that God gave you to be a world-class mom

while you're doing consulting or whatever it is you. And here's the other thing. You've done all of your projections as if your income is linear and his income is linear, and it's not. You're both in professional careers. Both of you are going to see your incomes go up even if you're working part-time, and he's continuing. So it's not a 15-year versus a 3-year. It's a 3-year versus an 8- eight or ten year yeah you're going to get there good for you really really good question really good question mike's in philadelphia hey mike

welcome to the dave ramsey show hey david john how are you guys doing great what's up uh i had a quick question just generally around motivation uh my wife and I, we had our kind of never again moment about two years ago, had around $250,000 in student loan debt plus a mortgage. And she had then lost her job and she was about 60% of our income. So we then kind of made the decision, you know, we got to buckle down and we just said, we got to pay off the debt once she gets back into it. We really paid off really a lot of debt over the past two years, even with her being out of work, but just having generally just trouble with motivation, especially with the holiday season. We want to spend some money on our kids and a few other things, and just trying to get a little bit of advice. You evil guy wanting to spend money on your kids.

What's wrong with you? Of course you need to spend some money on your kids. Yeah. And of course you've lost, you're not having as much progress as you thought you were going to have because you lost her income. Those are realities, man. That's not a loss of motivation. That's a loss of mathematics. That's okay. Yeah. You're not broken. It's not a loss of motivation. That's a loss of mathematics. That's okay.

It's good. Luckily, she'll get a new job. She'll get a new job, and then you're going to be able to plow again because you've got a tractor again. You'll get moving again, but right now, you're kind of slow. That's just kind of your reality. It didn't mean you quit, and it doesn't mean you lost your motivation it means you lost your income that's right when you're running a marathon sometimes you stop and you get that water station right and you slow down a little bit and you get the water you're not losing your desire to finish you got to slow down for a minute and then you're going to pick back up and you're

going to start running again yeah it's nutrition and you know what you're facing is exactly the way you should be feeling you're going to do great get your kid a christmas gift amen Dr. John Deloney, Ramsey Personality, is my co-host today. This is the Ramsey Show on the debt-free stage right here in Ramsey Solutions Lobby. Raphael and Jessica are with us. Hey, guys, how are you? How are you doing, Dave? How are you? Welcome. How are you doing, John? What's up, brother?

Where do you all live? We live in San Antonio, Texas. Awesome. How much debt have you paid off? $76,000. Woo! How long did this take? 17 months. Wow, you kicked it. and your range of income during that

time from 60,000 to 104 now there's a bump we went to school she got a job and uh look at you throwing her under the bus come on you got a job because i'm a disabled veteran so uh she was usually just at home taking care of me and then like i was like hey you gotta get out there start making some money for us so we can pursue what we really want to do in life. I love it. Thank you for your service. So what kind of debt was the $76,000? Oh, it was a lot.

Man, I bought a car. Well, I originally bought a truck without telling her. Yeah, I didn't listen. Yeah. I bought a truck without telling her. Jessica, how did he live through that? I don't know. He's still't know the doctors are missing huh you're just a sweet lady the doctors are amazing i'm still here so yeah i did that and then um we thought we needed a family car because we had our second child at

the moment um so we bought a new 2018 dodge journey sure um traded in the truck for that so it was like negative equity into the new one. We paid $40,000 for a $27,000 car. That went, we were, what do I say? Underwater? Yeah, we were underwater. We went upside down in that within like six months. Wow.

So yeah, in the last five years, I got scammed. We blew $27,000 in a furniture store in like two minutes. That was awesome. It's like you're on a game show. It was awesome, Dave. We did that, and then we just got sick and tired. We had our second child, and then we was making all this money. It was like $60,000 at the time.

We had nothing to show for it. So I got mad. I started calling some of our companies and say, hey, can we postpone these bills? Can we do it three months out? Because we just bought a house at that moment, too. So it just felt like every time the money came in, it went out on the second day of the month. So we were just eating ramen noodles at the time just to make it by trying to make ends meet yeah yeah it sucked i hated it i didn't like it you're eating ramen noodles at a really fancy kitchen table it was nice it was a really nice table it was glass all that you pull it out it rotated in the middle and everything it was nice those

ramen noodles tasted just the same right it? It was. It was really good. We had the shrimp flavor, the chicken. Man. All the different powder packets. All of them. It was nice. It was nice. So what did you do when you got disgusted?

We had a talk. We originally went to Financial Peace in California. That's where I was stationed, Camp Hilton. So we originally had it there, but we were still doing Dave-ish we didn't have an accountability partner or anything like that so you flunked we flunked the class

we never even got the certificate so it was sad we left we moved to San Antonio and then we met these great we met this great church called CBC we met friends there started a small group

and then they they seen a book in our house like hey what you doing with the Dave Ramsey book man can I borrow it and then they got serious about it. That became our financial accountability partner. And then we just started in January of last year, and we've just been booking it.

Okay. So you knew what to do. You just had to go back to it. Yeah. Yeah, we knew what to do. And we had an accountability partner. Otherwise, we would just still spend whatever we wanted to. Keep you out of the furniture store.

Stay away from the furniture. That's nice furniture, Dave. All right, so Jessica, we haven't heard from you. Tell us about your experience in this journey. It was really rough. For a good while, I just kind of had to sit him down and talk to him and tell him that I felt like he was dragging me. Ah.

But we came together. And like he said, our accountability group just kind of helped us through the whole process. And now we're here. So you didn't mind your financial situation. You liked that furniture. I did. You liked that new car. I did at the time.

Okay. But it was, like he said but it was like you said it was just ramen noodles so oh money yeah yeah well way to go now that you did it you're the other side of it talk to somebody who has taken the class years ago and fallen off the wagon so to speak and um what does it feel like to get back on it and go okay now game on well it's excited um after seeing the first debt go away doing the steps uh do the smallest first and then do the largest um it was just motivating just checking it off the list on the on the refrigerator um i would say to them just just don't give up um stop eating out uh because you you might eat out small but like those little

purchases add up throughout the mountain we we noticed that we were spending like nearly eight hundred dollars on like food just eating out and stuff like that yeah so we stopped eating out um had the accountability partner and we just we just stayed focused like we knew what we wanted for our kids um that was our why. We didn't want them to relive relive a family curse of just being broke all the time.

I didn't like it. So I want to set them up for financial peace. That's why we did it we had a really strong why and you did you did you you broke the chain didn't you you are uh you literally changed your family tree that's pretty cool man i'm so proud of you and bigger than the money very well done you taught those two kids what a married couple can accomplish when they come together. You taught your kids what it looks like to submit to accountability partners. You changed everything about their future brother.

Yeah. Because they were watching you the whole time. The whole time. They absorbed all of it. They absorbed all of Mama's temper tantrums. It was a lot. All of it. Yeah. She was upset with me. We had a lot of fights along therums. It was a lot. All of it. Yeah.

She was upset with me. We had a lot of fights along the way, but it was worth it. She was like, you're all about the money. I'm like, no, no. Because every time we got paid, it was like, hey, let's throw it here. Let's throw it there. Let's get rid of this one. Let's get rid of that one.

Because I was just motivated by just seeing that big pile of debt just disappear every month. Man, I'm so proud of you guys. Well done. Very, very well done. So what are the secrets to getting out of debt? You got a big why, and that's obvious. What are the secrets? Sell.

Sell a bunch of stuff. Sell everything inside. Sell everything. We sold the entertainment system. We sold the car. The couch. We sold the couch. We don't even have a couch anymore.

That's crazy. We sold that dining room table. Everything we bought with that glass dining room table. The glass dining room table. With the spinning thing in the middle. We sold it. Sold it.

Sold it all. I love it. We sold clothes. We sold shoes. You know, there's something that switch that flips and you go, it's just stuff.

It's just stuff. Like, we were selling plasters. It was crazy. I want my We were selling plasters just stuff like they were selling plastic i want my family tree changed more than i want a glass table with a spinny thing in the middle hey it was worth i mean that's like the opposite of shallow right it is well done i don't want to live inside of one of the greatest culinary cities on earth eating ramen noodles right oh man no you don't i want to get some good food in san antonio amen my mouth is watering of one of the greatest culinary cities on earth eating ramen noodles, right? Oh, man. No, you don't.

I want to get some good food in San Antonio. Hey, man. My mouth is watering. Mine is, too. You did that. We going to get the kiddos into the debt-free scream? Let's do it. All right.

What are their names and ages? This is Rafael Jr. and Leonardo. I'm trying to stick with Ninja Turtle. There you go. I need two more. I need two more. All right. Lots of Ninja Turtle action here.

All right. Lots of Ninja Turtle action here. All right. $76,000 paid off in 17 months, making $60,000 to $104,000. But the most important thing was the family curse has changed. The family tree has changed. And you're looking in the guy's face, the gal's face, who changed it right here. They did it. Count it down. Let's hear a debt-free scream. Three, two, one.

We're debt-free! Yeah! Oh, man. You have honor to where you came from, but you don't have to repeat where you came from. That's the magic, right? You don't have to repeat the things that they did that were wrong. You can change your family tree. You can honor people and recognize

there's not a curse that can't be broken. They didn't have the tools. I've got them. A curse can be broken with the truth. And the action. When you put the truth and the action in place, you can change it. This is The Ramsey Show. I'm going to go ahead and get started. our scripture of the day romans 8 24 and 25 for in this hope we were saved now hope that is seen is not hope for who hopes for what he sees but if we hope for what we do not see we wait for it with patience john maxwell said the pessimist complains about the wind the optimist expects it to change But if we hope for what we do not see, we wait for it with patience.

John Maxwell said, the pessimist complains about the wind, the optimist expects it to change, and the leader adjusts the sails. There we go. Just lead. Will you say that again? Because all of us need to hear it. The pessimist complains about the wind, the optimist expects it to change. The leader adjusts the sails. And as we throw it around, as we say it around here, just throw your shoulders back and lead. Please. Leaders that don't know how to lead are not leaders.

How's that for deep? How's that for deep how's that for deep that's the most profound thing i've ever heard in 48 hours i mean really these you know we put you in these positions god help us putting up with you politician idiots and then and you know god help, you work for one of these wussified publicly traded companies where they just are sitting around paralyzed and frozen and will not lead. Oh, God. It's so aggravating. Or if you're sitting at home and you won't get a will or you're letting your kids run your house or wherever you are, lead.

Vision in your life. Have a vision in your life. Have enough care and concern about yourself to bother to lead. Lead. And start with a mirror, man. That's it. Start with a mirror. That's it.

Open phones at 888-825-5225. Kathleen is in San Diego, California. Hi, Kathleen. How are you? I'm good. How are you? Better than I deserve. How can I help?

So we were toying with the idea of selling our home right now because it's worth a lot more than I ever thought it could be. But I wanted your opinion on if that was a smart move or not, and then to rent for a little while while we wait to see what the market does. If you're going to stay in the area... We don't want to long-term, no. Well, I'm not talking about long-term. I'm talking about short-term. I mean, if you're going to stay, then you have to believe in the area,

and if you believe in the area, then you should own real estate. What if the time frame is like 6 to 12 months? Why is it 6 to 12 months? We're just actively looking to maybe go out of state and exploring some transfer opportunities with careers. Okay. Well, what if they don't come through? I would be very disappointed.

And you'd be homeless. And homeless, that's right. Yes. Yeah. You would have sold your expensive California house and be living in expensive California rent. That is true, yes. Yeah. How much of this do you want to leave, and there's something psychological about selling your house that feels like that's a couple of, you don't have a job, you don't have,

you're trying to make an emotional move before the reality is setting in. Is there something else driving this, just the political climate or what? A lot of it's the political climate. Honestly, I never thought I would see this dollar value for our home, and so I'm worried that if I wait six months and something huge happens with the market, I would have a hard time dealing with that loss of what I guess could have been.

I see. FOMO. Okay. Where do you want to move? So we're exploring some other states, obviously, like the Texas, Tennessee. Just kind of, I mean, we spent the summer kind of traveling to see, you know, get a feel for those areas and see where we might be comfortable relocating. I think if you're going to put your home on the market, you need to turn the heat up on the transfer thing to where you you activate everything in sight and you're moving in 30 days okay i think you're kind of exploring uh tinkering with the

idea and i wouldn't put my home on the market while you're doing that i think when you move from tinkering with the idea to, ah, we're moving. Let's get this transfer in gear, and let's start talking about it, and here's the city we're going to. And you need to make some decisions if you're going to put the house, a big enough decision to put the house on the market. Because I'm afraid that all of that might unravel, and then you're a renter. And all you did was maybe sell the house at the top of the market. But, you know, that's not a plan if you're going to stay there. That's a good point.

Yeah. So I think, you know, what you began tinkering with last summer needs to become a thing. Like we're really freaking doing this. And so we're going to put in our applications, and we are moving to X city or Y city, and we're going to, depending on which place we can land with these jobs, and we're going to put in our applications, and we are moving to X city or Y city, and depending on which place we can land with these jobs, and we're going to go. And as soon as you start getting some feedback on that that sounds positive from your jobs, then you put the house on the market. Okay, cool.

Thank you. Thank you. I appreciate you calling in. Open phones at 888-825-5225. I wonder what the census is going to show i'm really truthfully curious i'm not being sarcastic because it's bizarre oh that every third person that we meet here or that i know from texas says that there's just this exodus east there there's you cannot find a u-haul truck in california really to move out wow there's not

any just heading out the the the exodus out of that state is and in new york as well has been in new york city as well it may take decades to repopulate wow some of the areas the workforce is gone wow and i i don't i don't know what the numbers are i mean anecdotally we're just we're seeing it everywhere yeah but i mean it's got to be in the millions it's unbelievable how every person i talk to where you hear from california to be that when we do the census bureau that we're going to see that those two states have lost millions with an s wow of people. So can I ask you this question?

You've been in real estate for years. Does this happen every five to ten years? No. No, no, no, not the exodus. I'm talking about her question about the value of my home. I can't imagine it could ever be worth this. Well, California real estate has typically gone through a cyclical thing. It goes up and bursts and goes up and bursts. Every decade or so it bursts okay and for one reason or another oh eight obviously a lot of places burst

but um it typically has done that okay uh but over the scope of your life it's been a good investment okay you know but there's been some high points and some low points and she may be right she may be catching a high point here because of this exodus. If everybody's selling and very few are buying, hello, we're going to see prices go down. That's seventh-grade economics. Supply-demand curve, we call it, right? And so when the supply is very high and the demand is very low, prices drop on anything. And we have not seen that in California yet.

The prices have not weakened yet. So that's why I'm really kind of intellectually and emotionally curious what the actual numbers are. Because it feels one way, right? It feels like it's large millions of people. But it's not been enough yet to affect the real estate market. Because the real estate market that I've seen has not been soft yet we've not our elps are not telling our california elps are not telling us california real estate's in trouble wow uh but at some point right it'll

have to be right i don't know what the tipping point is uh and maybe certain neighborhoods are affected more than others right you know where they've been particularly draconian on the lockdowns and stuff. And people are just like, screw it. I'm out of here. I've got to go to work. I've got to go to work. I've got to go feed my family. I'm out of here.

I'm going to freaking Nebraska, you know, or something. And they're just bailing out. But it is going to reshape the landscape and reshape the economy of the entire nation. The last time I remembered something this big was the number of people that permanently left New Orleans with Katrina. Yep. They thought they were leaving to get away from the storm, but they just never went back. And I was living in Houston, and I remember it changed the real estate market in Houston. Houston absorbed it.

We felt it all the way into Tennessee. And truthfully, the joke is, but it's not a joke, it really happened, there are Cajun restaurants all over America right now because of Katrina. Huh. You know? And they really are. Yeah. They just never went home.

They went to Minneapolis and opened a Cajun restaurant and never went back. And stayed, yep. You know? That's it. So that puts this hour of the Ramsey Show in the books. Thanks to James Childs, our producer, Kelly Daniel, our associate producer and phone screener. I'm Dave Ramsey, your host. We'll be back 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 Child, 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.