The Ramsey Show - App - Tell The HOA You'll Sue! (Hour 3)

Episode Date: October 9, 2023

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Jade Walshaw, Ramsey personality, is my co-host today. Open phones at 888-825-5225. You jump in. We'll talk about your life and your money. Derek is in Arkansas and starts off this hour.

Hey, Derek, what's up? Hey, Derek. Sorry. Hey, Dave. Thank you for taking my call. I'll get right to the point. My wife just wrote a New York Times bestselling book that released less than a month ago. We've already started to see some income from that. Most recently, a check for $50,000 that came in on the date of the release. I've listened ever since I was a missionary in Nepal. My supervisors gave me their materials over 10 years ago and just appreciate what you do. So my wife and I were talking about this, and she recently got a message from Rachel Cruz,

who reached out to her, to my wife, and just said she'd read the book. So my wife and I thought, well, we really appreciate you guys and the principles that you stand for. So I wanted to just call in and see what your thoughts were about what we should do with some of the income that we're getting. I've already maxed out my retirement and my job. We're debt-free. We've already maxed out our Roth IRAs and didn't know if we should open a brokerage account just with an S&P 500 index fund. So the house is paid off? Yes, sir.

Yes, sir. You're 100% debt-free and everything? That's correct. Way to go, dude. How old are y'all? I'm 34. My wife is 32. Way to go.

So this $50,000 on the book is spare change right now. You're over and above the baby steps. Well, we're on baby steps. I guess it would be five and seven. We've got three boys ages one to eight. So you might want to use some of the $50,000 for education, you're saying? Correct. We have thought about that.

Didn't know if we should put a certain percentage of that toward kids' college and then some toward an index fund just to keep some liquid cash, because if we did move, we would want to pay cash for a house. How much is in your emergency fund? About $50,000 right now. Not counting the book deal, what's your normal household income? Fluctuates, irregular. I just graduated from law school and started prosecuting last year.

So we had, with partial year work last year, about $65,000, looking at about $150,000 this year and about $85,000 next year. And that's just my income plus a little bit of income in addition to like my wife brings in from social media and things like that. Yeah. Well done. Really good. Yeah. I think you've got it down. It's exactly what I would do with it.

I would, if it were me and I had that money in your shoes, I'd probably break it into thirds and give, save, spend it. I'd give some of it. I'd save a third, you know, for your college fund or whatever you have set up, 529s. And then I'd come up with something you guys want to do maybe you're saving for a trip maybe it's you know a vehicle you're saving for whatever that spindage that you're wanting and i'd break it up like that or maybe in fourths since you've got two kids you put a quarter for each of them for education you think it's opening one account and then then for 529s from childhood?

Correct. For 529s. I would put a little in each. I'd open three. I'd put a little in each of their names. Oh, it's three kids. I'm sorry. I said two.

But yeah. And the reason I do that, Derek, is just so I can tell them over and over that this is their college fund, which presupposes that they're going to college. And then if we want to change that as they get later in life, I can not force it on them. But I just want to brainwash them that continuous learning throughout your life is a brilliant idea. Like you went back to law school after the mission field. Okay, so continuous learning after, you know, if the last thing you read that's nonfiction after high school is nothing, then you're not going to grow in life. So adding learning, whatever it is, whether it's for your education or not, isn't there.

So Rachel reached out to your wife about her New York Times bestselling book. So your wife is Jill. Yes. Okay, Jill Duggar. Jill Duggar, now Dillard, yeah. Yeah, counting the cost is the book. Right, yeah. Okay, all right.

So the Jill Dug the book right yeah okay all right so the jill duggar book yeah yeah because rachel and i were talking about her the other day and uh because the book is impressive and rachel was saying she was going to try to get her on the show or at least do some kind of social media collab with her yeah okay well i didn't know about that but that's probably why she reached out to her yeah because we were both she and i were talking about your old story and your life and everything um and um because i'm i'm uh of course old and i remember all that stuff uh from a thousand years ago uh the whole gothard thing and all that stuff and then it's very interesting it's very interesting and so um and then to see what you guys have done as a couple is impressive but you guys are really it's very cool. At least the outside looking in.

I don't know you personally, obviously. Well, now I have to read the book. Yeah, you do. What'd you say it was called? It's called Counting the Cost. A lot of it really goes into what, especially John Deloney goes into, and his influence recently has helped us as a couple. Well, it's this

wonderful thing of boundaries and forgiveness correct and not you know and not don't spend your whole life being defined by bitterness and so on so yeah it's pretty cool right and uh you you're i didn't know the part about you going back to law school that's very impressive good for you thank you so well done dude very cool decided to go back to law school. That's very impressive. Good for you. Thank you. Well done, dude. Very cool. Decided to go back to law school through all of this. Well, the book just came out, so it hit the Times in the last few weeks, right? Right, about two weeks ago it hit

the Times. Congratulations. Thank you. Yeah, that's impressive. Yeah, because the Times is not known for putting Christians on their list. So, um, kind of known for not doing it, actually. I'm glad you did. That's awesome, man.

Very good. Very good. Yeah, so I'm with Jade. I would go thirds, throw some at the kids to make sure we got the college thing beefed up a little. You're going to have enough income to make sure they're okay on educational choices later in life anyway. You're going to be fine.

And enjoy some of it and be generous with some of it i'm with her give save spend give save spin love that very cool that's exciting very cool how do you get on the new york times best like how does that work uh it's up to them there's nothing to do with actual numbers right it's not sales no it's an editorial list so they decide so like it's not off it's not unusual for one of our books to outsell their number one yeah but by five to one well that's what i know that's what we don't get on there yeah that's pretty standard yeah basically my rule is new york times sucks so that well now they're not going to put you on the list they were not going to put me on anyway i've said they suck

for a long time i've been on there a couple times been there done that didn't help me a bit didn't change anything no one ever no one ever sent me a bit. Didn't change anything. No one ever sent me a check because I was a New York Times bestseller. Not once. But because I had a bestseller, I've gotten a lot of checks. Because that means we sold an actual number of books. That's a different thing. That's what counts, I guess.

But I'm glad they got on. I'm not being jealous of them. I'm happy for them. Young couple with a brand new book. And apparently, I haven't read it, but apparently the book is good. Rachel was talking about it. So good stuff. That's fun. That is fun. You never know who's in our audience. I know. This is The Ramsey Show. Jade Walsh, all Ramsey personality is my co-host today. Thank you for joining us, America. Open phones at 888-825-5225. Riley's in Raleigh, North Carolina.

Hi, Riley. Welcome to the Ramsey Show. Hi, Dave. Hi, Jade. How are you doing? Great. What's up? So I am considering selling my condo because I've got some neighbors that I'm not too happy with, and the housing market is expensive in the area. So I'm considering selling my condo, moving into an apartment, and using the money I make from selling my condo to pay off my student loans. And if I did that, I would have no debt. And I'm just curious as to whether or not that is a good choice.

So you want to sell your condo. Your neighbors are kind of annoying. You don't necessarily want to be paying for this anyway. How much student loan debt do you have? About $88,000. What will your condo sell for? I think it would sell for around $260,000 or $270,000. So my equity would be around $100,000. Okay, so you owe around $160,000 or $170,000. Okay, and what do you make? Yeah, I make about $95,000. And how old are you? 32. And you're single? Correct. Okay, how long have you had the condo um just about exactly three years what's wrong with the neighbors

um so they are renters they're by they're below me and um it's been a plethora of issues over the course of years different different bad like renters in that same issues over the course of the years. Different bad answers in that same unit over the course of three years. Smoking, really loud dogs that are left on their porch. I live above them. Dogs that are under me barking, waking me up all night. And on top of that, the owner of the unit and the HOA are not helpful.

Do you think you'd want to – I'm just wondering. Why is the HOA not helpful? They basically just don't do anything. You make complaints and they – it's a very laid-back HOA, I would say, which I guess in some ways could be good, but in my circumstance, it's not helpful. Yeah, okay. There's a couple things. Number one,'s you know not helpful yeah i okay there's a couple things number one if you want to do your plan that's fine um sometimes there's a uh um sometimes there's a time to leave and um i'm not selling something that i own because of renters

and an hoa that won't do its job i I'm going to start jacking some people up. Like if the HOA got a letter from your attorney that said, we're getting ready to sue you guys for not doing your job, which is making the rental units have renters that freaking behave. That's like the HOA's job in a condo. They don't do much else. That's what you're paying for. Yeah, correct. job in a condo they don't do much else that's what you're paying for yeah correct time for barney fife to get his one bullet out which is always who runs the hoa right yeah you're right

is there anything else about the condo that would make you want to leave other than the neighbors um you know i would like to you know if if it was more affordable i would like to, you know, if, if it was more affordable, I would like to purchase a home that the, the situation is I bought my condo in 2020 and the interest rates were really low. So I've got a very cheap con, you know, it's cheap to live there right now. I'm paying around 1100 total with the HOA fees. Whereas if I wanted to buy even a small home in the area, you know, the interest rates are now around 7%. So I don't have really a cheap, I don't have an equivalent option. Right.

And it is a small condo. It's a place I would not live in for a long time anyway. It's okay to sell it, Jake. I'll tell you the other problem you're going to run into when you sell it. The real estate agent that comes over to list it is going to smell smoke and hear barking dogs i know i am worried about that and they're gonna they're gonna say this is going to affect your buyers so these people have devalued your condo by their misbehavior yeah like it's not going to bring as much because people aren't going to pay for

a smoke infested doging bunch of crap. Well, that's one reason that he needs to stick it to these guys. Yeah, you've got to get this cleaned up either way. Yeah, this HOA. Yeah. They're really going to have to stop it. I mean, it's ridiculous. Yeah, and it's frustrating because it's not like it's not 24-7 bad where,

you know, I could see an instance where, because it's what I've experienced where sometimes I'll have a week where not that bad. And I feel like if there was somebody, you know, a buyer looking at it, they might not notice that stuff. But then there are times when it is bad where, you know, I could see both instances where a buyer could come in there at a bad time and say, oh, I'm not buying this. And then I can do the opposite, too, because I'm the one. I witness both myself. But you don't want to gamble that, you know, the open house or, you know, on the weekend the open house is the weekend they're throwing a rager. Here's what you can do.

Call the or jump online at RamseySolutions.com. Find one of our real estate professionals in the area that we endorse, that are Ramsey trusted. Tell them when they come over to look to call the HOA and say, we're getting ready to put this on the market, and if the renter downstairs isn't behaving, I'm going to advise my client to sue your butt off and let the realtor play the heavy and see if we can straighten these renters up for 30 days and get this thing sold. Yeah.

Yeah, and then move. And move. I just have trouble letting these people run me off without. It's exactly how I feel. I feel like I don't like them controlling my life. Exactly. You know, because I feel like I made a good purchase. It's kind of what an HOA is for.

It's so that people, you know, if you want to raise hell and throw parties and have barking dogs, you're supposed to go out in the country, not in a condo project. Hello. I mean, this is not rocket surgery here, people. All right. Wow. Amazing. I know, right?

Yeah, that's what I would do. I think you put it on the market and let the real estate agent call the HOA and tell them to be real tough on them and to threaten them. I want this crap straightened up, seriously. I'm going to put this house on the market and this condo on the market, and if this unit doesn't sell or it sells for less because of smoking dogs, I'm coming after y'all for the difference in the lost value because you didn't manage the property like you're like your job is yes why is that these hoas man they're usually they drive i hate them they drive me nuts i live in one it drives me nuts it's just god have you

ever been on the board of one no can i tell you that one time where you were yes i'm gonna blame it on sam sam was we were but it was really sam he was trying to make a difference and they did for a while and then he found out and then he was like i can't do this anymore yeah no it's just god i i should i'm the guy that ought to be on a piece of ground somebody don't know where but i'll be living by myself because my wife isn't gonna live there so i'm stuck with these choices in my life worse you know so i'm stuck worse than riley is i mean it's you know so yeah riley's in a pretty bad way yeah it's bad sell it get you an apartment then immediately start saving and get back in the real estate market as quickly as you possibly can riley. Let's not let this be a reason you don't own a piece of property two years from now.

So many people are struggling with that. His main thought, though, which is, I bought, I have such a low interest rate. And I'm stuck. And now I'm just, I have to live here forever. I'm waiting on rates to come down to move because of that. I know. And I got bad news for you. It's going to be a while, boys and girls.

And while you're waiting, house prices are going to go up. They are. Yes, they are. We told you that this time last year, and what we predicted has exactly come true. Yeah. We told you in a real estate live stream that we did last year at this time, that house prices were going to go up about 7% in the year 2023, and that's what they're trending right now. I mean, I know people who are sitting on the money they could buy, but they're just like, ugh, it grosses them out. You mean to pay cash?

No, like to have the right down payment, but the interest rates are just grossing them out. If you get a high interest rate, when the rates come down, just refinance. Or better than that, pay the stupid thing off and get rid of the interest rate. You know, I mean, there's a couple ways around this so yeah it's this trying to time this stuff but it's a generation that's never seen high interest rates and this these are not high interest rates by the way you need to talk about this more often dave 1982 and when i got out of college they were 18 17 fixed rate in 84 they were down to 14% fixed rate.

Now, that's high. And so that's back when the dinosaurs roamed the earth, you boomer. Yeah, I know. I know. I know how that works, right? But I also know what high is because high is all relative. Six is high if you've been used to three. That's right.

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you both love uh you will have the undistracted time to disconnect from everyday life and reconnect with your spouse interactive sessions and all kinds of sessions with Rachel Cruz, Dr. John Deloney, on money, communication, boundaries, intimacy. Tickets are $7.99 for this multi-day event. It's here on the Ramsey campus. If you're out of debt, you got room in the budget, this is a must-do. The Money and Marriage Getaway, a very luxurious weekend here on the ramsey campus um for couples coming up october 19th through the 21st check it out ramsey solutions

dot com slash events to get your tickets now on the debt-free stage in the headquarters solution of ramsey solutions here in the lobby uh j and Becca are with us. Hey, guys. How are you? Good. How are you? Better than I deserve. Welcome. Where are you from?

We're from Indianapolis, Indiana. All right. How much have you paid off? How much debt? $50,000. Woo-hoo. 50K. And how long did this take?

Seven months. All right. Wow. Jack. And your range of income during that time? $83,000. Wow. What do you all do for a living?

I'm a personal fitness coach. And I work at a church, a time? $83,000. Wow. What do y'all do for a living? I'm a personal fitness coach. And I work at a church, a local church. Oh, wonderful. What kind of debt was the 50K? Student loans. Hey. Whose student loans? Yours or hers?

Mine. Yours. All right. How long y'all been married? A little over a year. Ah, so we get married and then we pay off Joshua's student loans. Yes. First order of business.

Yep. Tell me the story. What happened here? Yeah. So I grew up and my dad was a big, big fan of yours, and so he put that in us since we were little growing up. And so when I met Joshua, and he was like, I have student debt. I was like, oh, no.

If you weren't cute, that would be a deal breaker. Right, I know, but he is, so it worked. And so then we just, like, talked about it, and I actually, like, gave him your book, and he is so it worked um but and so then we just like talked about it and i actually like gave him your book and he started reading it and applying it and so i knew that he like had the ability like he wanted to do this as well uh and so then he's a personal trainer for god's sakes discipline is his middle name right yeah uh and so then he got the app the every dollar app and started working that and making his own budget and i remember he texted me one one day. He was like, I made a budget. I was like, look at it. I was like, this is awesome. Look at it. You're a keeper. I know. I was like, that's awesome. So we made the budget and then

decided when we got married that my father had like saved up money and had made us like a wedding fund. And so we were like, I don't really want a super big fancy wedding and I'd rather like not have a lot of debt. So we did, we got married in my parents' front yard and it was beautiful and awesome. And then we took the remainder of it and then my savings. And then we, he paid his savings and we paid it off.

Wow. Boom. Just like that. I mean, you attacked it. We did. Yeah. Look at you.

That's a sacrifice when you know there's money that you can have this big wedding a big party and you say no this is more important that's one day this is the rest of our life yeah exactly and I think too just um growing up like being believers and just like knowing that Christ sacrificed for us of just that like he paid our eternal debt and so like at first I was like I don't want to give him like my money but then it's like no we're married like we're one and like this is what Christ has done for us and so to be able to like combine that and like be truly one and like to pay off that debt and was really really cool so Joshua she comes at you with all this stuff did you go like whoa

I mean at first it was a different approach so I mean my my parents did financial peace growing up. I have a special needs brother. So, you know, the whole financial situation was a little bit different. So, to go from that, you know, to this, it's a completely different side of it. You know, my parents did help us along the way. But yeah, I was like, okay, I got to do something here. I got to step up. If I'm going to be a husband, I need to be a leader. And so, I was like, I got to make change. Look at that. How old are you two? I'm 27. She's 26. Way to, I need to be a leader. And so I was like, I got to make change. Look at that. How old are you two?

I'm 27. She's 26. Way to go. Way to go. Amazing. Well, you leaned in, knocked it out fast. And that's got to feel good. You got to feel strong.

Yeah. Both of you. I mean, you did grown up stuff here. I know, right? It was very, very difficult. Wow, that's exciting. Becca's not a princess. She's like a woman.

No, she's a woman, all right. Thank you. She had a full agenda and a full plan and made sure it got executed that's what i'm talking about there's not there's not yeah that's that's good stuff well done y'all very well thank you thank you okay now that you've done it uh you see the principles of the process i mean you teach principles when you're teaching as a as a trainer right and uh you And we have principles that are guiding these baby steps or guiding this process.

What did you all observe that you tell other people, here's what you do if you're going to get out of debt. You've got to do these three things or these four things. What was the thing you think of? I think one of the big things, first off, is just communication, especially coming from two different financial backgrounds and what that looked like and saying, okay, we're a couple now. God said we're one.

So we got to figure out how we can do that to start off. So definitely starting off with communication and then coming up with a plan and then figuring out exactly what we need to do with that plan and what that step is going to take and making sacrifices. So even though I was working as a personal trainer, still have been, you know,

I worked at Chick-fil-A for a little bit to earn a little extra income on top of that in the evenings and then before we got married paying off even car loan debt and stuff like that too and then going from there and like okay like if we're gonna attack this we're gonna attack this and get it paid off because most people my age most friends are not in this position being in their 20s so we wanted to glorify god along the way but understand like we don't have to just be in debt and that's not the right way to do things. You had to feel like when the student loan started back with payments the other day that you dodged a bullet.

Absolutely. We did. We were like watching it while we were paying it off. Okay, they pushed it back more. Okay, we got to go before they put interest. Like we got to keep paying it. I think that was the one good thing about the COVID year. Honestly.

Yeah, we're like, thank you for that. Because I remember I submitted my first it. Right. And like. I think that was the one good thing about the COVID year. Honestly. Yeah. We're like, thank you for that. Because I remember I submitted my first payment was $150. And then by the time we got married, it was like, oh, we got huge payments here. And then. Yeah. About in April, we're like, oh, we're debt free. And it felt weird.

It was, but it was great. We're like, what the heck? Yeah. Just like that. Boom. Yeah. Wow. I love it.

If you want something different, you have to do something different. And you guys embrace that. It was, it's different's different right to give back some of your marriage money it's different for one spouse when they're you know engaged to say you know when we get married some of my savings is going to go to pay off this debt like that that's all completely different from what culture might say you know to work a second job in the evenings chick-fil-a in the evenings so you guys really did sacrifice to win that's amazing yeah yep well done thank you thank you i'm betting both sets of parents were bragging on you the whole way cheering you on oh yeah oh yeah that's great a couple of financial peace babies one more intense than the other but there we go i love it

still very good good job you guys very well thank you your future i mean when you you can take any problem and set it in front of you too and you do exactly what you did here yeah analyze the problem and say what must be true what have we got to do to get this done all right lean in next thing you know game on yeah and you'll have these things pop up from time to time hopefully this one will never pop up again but but you'll have other things as you go through your life and now you're equipped so that's the gift i mean the getting out of debt is powerful but the process that you use is even more powerful yeah so working together having a plan thank you to the every dollar app people well done well done here's my budget look at it

we've got the live and give box for you that's the baby steps millionaire book which is your next step on the journey to be able to live and give like no one else and then of course the total money make over you can give that to someone else get them started financial peace university if you hadn't gone through it go through it together if you have give it to somebody and uh that's why we call it live and give so enjoy well done you guys congratulations. Congratulations, heroes. You're heroes, man. That's powerful. Joshua and Becca, Indianapolis, Indiana. $50,000 paid off in seven months. Been married 12 months.

Did it, making $83,000. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free. Yeah. That's how that's done i love it man oh man if everybody could get it that quick dave you'd be so much easier oh gosh yeah you

know that's um but that's the good news about being second generation financial peace you know financial peace babies is even if you got a little if you're a little off you still can boom you know you know if you hit it it'll work it's like um and that's that's different hey you're doing an every dollar webinar tomorrow tuesday at 11 30 that's right for those of you listening totally free that is the 20th uh no it's not it's the 10th the 10th tomorrow at at 11 30 Central Time. We're going to be doing a few others. If you want to join the free EveryDollar webinar on how to do just what he did. I did a budget.

So you'll be able to do it tomorrow, right? That's right. And EveryDollar.com slash budgeting. Sign up with Jade for tomorrow or Jade later or Rachel Cruz or George Campbell. We're doing them all through the fall here. You're going to want to sign up and be part of that just like he did. This is The Ramsey Show. Our scripture of the day, Romans 13.1, let every person be subject to the governing authorities, for there is no authority except

from God, and those that exist have been instituted by God. Milton Friedman said, If you put the federal government in charge of the Sahara Desert, in five years there'd be a shortage of sand. Oh, gosh. Sheesh. Nobel Prize winning economist, by the way. Oh, you gotta love it. Jade Warshaw, Ramsey Personality is my co-host today.

We are in the last day of Dr. John Deloney's book week launch. We launched it one week ago tomorrow. His new book is called Building a Non-Anxious Life. And it is the six daily habits that are needed to do that, to deal with anxiety, to prepare for when anxious things happen. Your glass is full and you can deal with them. And this is a lot of neuroscience, a lot of nerd speak, all boiled down where normal people can read it like me. And Dr. John, this is his second book. His first was a number one national bestseller, Own Your Past, Change Your Future.

Building a Non-Anxious Life has already sold a bazillion copies in the pre-sale and in the first week. Thank you guys for the response to this. We'll know for sure where we land on the list in a day or two, but pretty much suspect it'll be number one based on our sales and normal book business stuff. But we'll see. We'll see. We've sold a bunch of them, and you guys, we appreciate you. Thank you for picking it up. You're going to be glad you did.

It's worth every penny. It's a great book. RamseySolutions.com, you can get it there. You can get it anywhere great books are sold, Amazon, Barnes & Noble, all of that. Building a Non-Anxious Life by Dr. John Deloney. Brittany's in Phoenix. Hi, Brittany. Welcome to the Ramsey Show.

Thank you so much, Dave. Sure. What's up? So my husband and I are wondering if we should sell our investment property to pay off all of our debt. Okay. Do you like the investment property? We love it, but we have a kid on the way and so things are changing and our income is going to significantly drop you're going to stay home

um your phone's breaking up like crazy um i'm having trouble. See if you can get somewhere where we can hear you. But anyway, so what do you make? We make about $125,000. $125,000? What do you make? Yes. I make $75,000 of that.

Okay. What's the investment property worth? $200,000, and we take home uh we net thirteen hundred dollars each month on it what does it what do you owe on it um what do you owe on it it's free and clear we don't owe anything oh okay and what is your personal residence mortgage is how much uh 345 currently okay and you you have 145 000 other than this um i'm sorry i i didn't okay you have 200 if you sell the rental. You owe $345. You said pay off your house. Do you have other money saved? No, we do not.

We'd be paying off some of our other consumer debt, student loans, and medical bills. That's $82,000. So we're hoping to pay that off and then get to the step. Where did this rental property come from? How did you end up with a paid $400,000 house if you're this broke? So we actually wrapped it into the financing of our home. Oh. So our primary residence is worth $500,000,

and this investment property is worth $200,000. So we've got $300,000 mortgage and then $82,000 of other debt. And we're wanting to sell the investment to pay the debt, consumer loans, and medical. Yes, I would sell it. Yeah. Yes, I would sell it. Whew. Yeah. Yeah.

I would sell it. Um, you pay off 82,000 in consumer debt. You got a baby on the way. You have $345,000 mortgage. You're getting ready to be making $50,000 a year. I'm not sure how you're paying for a $345,000 mortgage. You may be selling your home too.

That's what I'm thinking. I don't think you can service that debt on 50 grand. Unless they, I'm not sure about it, but unless they sold their existing house and moved into the rental and then had that one free and clear. Might go that way. Yeah.

Because I don't think you can, I mean, if you quit, you make 75 of the 125. He's got $50,000 income paying a payment. Yeah, that's going to. Your payment's got to be $4,000 anyway. He's strapped. And yeah, you're not going to make that. Your payment's going to be as much as his income.

Yeah, that's not going to work on. They got to get out of their existing home. You can't keep the house. You can't afford it. So yeah, we're selling the wrong house. You're moving into the paid-for rental. The good news is it's paid for. Or you're working.

Yeah. You got to decide. If you want to keep this house, the one you live in, you're working. And you sell the rental and pay off. If you're working, you sell the rental and pay off all the other debt, you can probably make it. It's tight then. Yeah.

But you can't make it. You can't pay the payments on this and you pay down a little bit on the 345 and redo the loan at a higher interest rate you're not gonna still you're not gonna net anything different so there's nothing happening here kid i'm sorry you know that the house you bought you can't afford if you want to quit and stay home with a baby and either one's an okay choice with me uh personally i'd move into the quit and stay home with a baby. And either one's an okay choice with me. Personally, I'd move into the rental and stay home because that's your heart's desire. I'd rather stay home than have the house, the big house, the house you can't afford. But you can't pay the payments on his income.

And if they are living in the $200,000 house paid for, their income's freed up. They can start stacking away money. They're 100% more free. Yeah. There's more freedom there. You get to stay home you have no debt that would be my that'd be my solution you start you know you start stacking cash and then if you want to move up in house in a few years you'll be able to do that with cash but that's right you cannot afford a payment on 345,000 making 50 grand I'm 100% sure of that and there's not not any numbers you gave me here unless there's a piece that britney didn't give me yeah that uh that changed that if

there's a two hundred thousand dollars laying somewhere else but i didn't hear that you did ask that because you said when she wanted to pay off the debt for the the their existing home you said you have another 145 she said no so there you have it no we have another 82 and consumer was her answer yes yeah that's it jay's in tampa hey jay welcome to the ramsey show hey dave and jade can you guys hear me okay yes better thank you how can we help thanks thanks for taking my call okay so i just i'm going to hit you with some numbers um the main question is uh i want to know if we should use the check that we're expecting from the car insurance.

I just got into a car accident a few days ago. Did you total it? Yes. Did you owe money on it? No. Free and clear. We just paid it off. What's it worth? It's worth between $9,000 and $11,000. Buy another car with it.

Rather than because I was going to use it towards the irs because they're breathing down our throats right now that could be different yeah that does change yeah what do you owe the kgb for well uh before my wife and i got married, it was maybe 91, almost 9,200. And you got another car? 9,200. You got another car? I have another car. We make $140 a year.

Yeah, pay it off. Pay it off and save two months and get you a different car. Mm-hmm. Pay off the IRS and then save like crazy. Get those people out of your life. Yeah. Until you said that, I was real sure. Yeah. Like Jade said, that's a game changer okay i thought so what i'm squeezing one more question

how do you i know you normally say stop all 401k contributions i still do step two i still do what if you can use the 401k contributions to break even on your taxes no no no no you don't break even on your taxes that's not how taxes work, no. You don't break even on your taxes. That's not how taxes work. You don't break even. Tax deductions, you save a quarter on the dollar. You don't break even. You put in $100, it saves you $25 on taxes. You're broke. You can't do that. You need to get the stinking IRS paid off, pile up some cash, get the emergency fund bill, make sure you get you another car purchase, get all the debts cleared, then build your emergency fund. Well, you got one out of two not bad not bad jade good show today good show the team in the booth excellent excellent calls coming in that puts us out of the ramsey show in the books we'll be back

with you before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, what's up, guys? It's Jade. If you love the show and want a deeper dive on your money journey, we have a weekly newsletter that gives you trending and helpful articles and tips on following the Ramsey way. Just go to ramseysolutions.com today to sign up for our newsletter. Again, that's ramseysolutions.com to sign up for our weekly newsletter.