The Ramsey Show - App - The Depth of a Relationship Determines the Impact You Can Have (Hour 2)

Episode Date: August 5, 2020

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Anthony O'Neill, Ramsey personality, number one best-selling author, is my co-host today here on the show. The phone number is 888-825-5225. That's 888-825-5225. Gavin is with us in Yukon, Oklahoma.

Hi, Gavin. How are you? I'm good. How are you? Better than I deserve. How can we help you? So, a little bit of backstory. I'm 18. My girlfriend is 17. She's a senior in high school this year, and I just graduated. She wants to go to college and major in art history, but she's told me that she doesn't think that there's much job opportunity there.

She just wants to go and learn some more. And so I guess what my question is, is at what point is it my time to say something or my time to say something? And then what do I say so I don't come off like I'm not caring or I'm not understanding for the situation? Oh, man, that's a real good question. How long have you all been dating? Almost a year. Okay. Okay. All right, all right, all right. Now, let me ask ask you this question what would you say like what do you want to say you know

i'm a little harsh on per dave so let's what do you want to say if you're harsh per dave that's really bad so but what would you say uh if you could say anything you wanted to say and you didn't worry about her feelings for a second what would you say yeah If you could say anything you wanted to say and he didn't worry about her feelings for a second, what would you say? Yeah, I would say that you need to think harder about this. Like, cause you have some money saved up,

you know, and you could get through it without putting on student loans or anything, but is it really worth spending $80,000 to go to a four year school to get a major in something you can get a job in? You know, okay, cool. And here's, here's what I would suggest since you are, you guys are a job in. Okay, cool. And here's what I would suggest.

Since you guys are in a relationship, I want you to step back and see if you can help her find out something else that she's good at. Because if she's saying that there's no job atmosphere, there's no job opportunities in this field, maybe you can help her identify something else that

she's good at that there are some job opportunities. So rather coming at her, that would say, well, you know, babe, what about this? You know, you're really good at communicating. You're really good at listening. You ever thought about this opportunity? If you do this, it can honestly cost you a little bit cheaper over here, and you could do this. Going to more.

Is it art or is it history? So she wants to go into art history. I know. I heard that. Which one is it that she likes the most she likes she's she she says that she can appreciate art and she likes how it's developed over time um so it's kind of both okay so it could i'm just trying to figure out is she a history major that uh needs to teach history in high school, or is she a graphic artist? Yeah, I think that she would, if it had to be one of those two options,

it would be definitely on the side of history teacher. She doesn't want to make art. She just likes to appreciate it and likes how it's developed over time. Okay. Well, here's a good rule in general. The extent that you can influence someone is 100% directly correlated with the depth of relationship you have with them. So a casual relationship, you really can't influence someone. Okay?

The UPS driver that drops stuff off at my house, his name's George. He's a great guy. I talk to him i say hey george he says hey dave but i don't really get to talk to him about what he's studying in college yeah i don't have any relationship that's way on the outer rings of relationships all the way in the inner ring would be my wife right and so then then my grown kids and then people that are good close friends that love me and can speak to me about things. And I can speak to them about things that they need to change or look at.

But outside that, people don't really listen to other people. It just it just pisses them off that you get involved in their business. Yeah. And so don't you know, don't be an Internet troll with your girlfriend is my point. So, you know, make sure that you are, that your relationship is deep enough that, let's just change the relationship for a second. Let's say this was a guy that you have grown up with since you were eight years old. You played baseball or football with him. You've hung out. Your dads took you camping together.

You are best buddies all the way through high school and he's getting ready to make a dumb decision well you just put your arm around him and kick his little butt wouldn't you right yeah but you've got the depth of relationship to pull that off in that scenario that i just laid out and um so you've got to tread lightly because you're about to test when you start this conversation how deep this relationship is yeah and and and know when to stop you know and then once you test it if you see that's okay i crossed my boundaries back up and don't bring it up again until the relationship warrants that you can bring it back up in a safe place yeah they've got to know that this is not about you.

Yeah. And that you actually do know them, and you're thinking of their best interest, which is what you're doing, it sounds like. But translating that to her and then becoming persuasive in the argument is based on the depth of the relationship. So this idea that, you know, well, you ought to be accountable to so-and-so. I'm not accountable to you.

I never met you. I'm not accountable to you. Kiss my butt. I'm not accountable to you. You know, some guy that has 35 people in his church is pissed off at me because I don't use the King James Version in FPU or something, you know?

So, you know, I'm not accountable to you, dude. I don't have a relationship with you. But one of my best buddies that I something, you know? So, you know, I'm not accountable to you, dude. I don't have a relationship with you. But one of my best buddies that I've, you know, read the Bible with and studied with and learned with or my pastor for 20 years or 10 years, yeah, they see something in my life, I'm accountable to them. They've got, and that's the same thing. It's the depth of the relationship in order to have an impact and change the direction of some kind of behavior.

Yeah. But you cannot do that with people that don't trust that you know them and don't trust your intent. Yeah. It's a big deal. Jackson is with us. Jackson's in Jackson, Mississippi, oddly enough. What's up?

How are you? Hey, how are you, Dave? Great. How can we help? So my wife and I are both teachers, and we're in Baby Step 2, and I am making a career switch, and this year will be my last year teaching. It'll be my fifth year, and I was wondering if whenever I finish this year, if I could pull out, I'll have $19,000 in my state retirement, and I have about $42,000 left of student loan debt to pay off.

And you've always said, you know, don't pull out of retirement to pay debt, but this is kind of a different scenario. Why is it different? I don't know if I should pull that out. Well, I guess the reason is I thought it would be different because I guess I could move the money over into an IRA. Maybe that would be the better decision. Yeah. You're going to pay a penalty.

Yeah, it was a pretty good penalty. A 10% penalty, plus you're going to pay your taxes on it. So it's like saying I want to borrow money at 30% interest to pay off my debt. Yeah. Makes sense. I guess I'm just so eager to get out of debt i thought it would be make it a little faster but yeah it i appreciate that yeah and that's who always asks this question is somebody who's game on yeah somebody who's got gazelle intensity so you got all the special

sauce jackson just i'm just not going to give up a third of my money to the government that was right on point dave yeah keep the eager go eager. Go after it. Keep your money, though. Yeah. This is the Dave Ramsey Show. One of the questions I get all the time is, which life insurance company should I use for my term life policy? A valid question since there are hundreds of companies out there with rates all over the place and riders and add-ons that are simply a waste of money. You need to get this

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Tom is in Spokane, Washington. Hey, Tom, how are you? Good, and you? You're breaking up with your phone. Try again, sir. So good, Dave. How are you guys? Good, good. how can we help so my dad um he's dying from a large brain tumor last august they gave him a couple weeks to live oh my gosh so he's already surpassed well further than they said but we ran into a few problems. Yeah. Well, like I said, he's made it way longer than we thought.

So he has a house. He has about 15 cars. He has a small retirement account with like five grand in there. My question is, my sister is the power of attorney, but we're reading that goes away when he dies. So what happens to all that when he dies? There's no will? So he has a will.

We can't really talk to him very well. We don't know if everything is in there. Have you read the will? No, I have not. Where is it? I know it was done very quickly, and because we thought it was going to pass very quickly. Who did the will? My sister, my oldest sister.

Well, get it from her. Y'all sit down and look at it. That's where the stuff's going, whatever that says. And it may have some broad strokes in it, like all of my known worldly goods are dispersed this way, which covers everything, right? It usually won't. Some wills will list out, if you've got a very detailed estate plan, will list out every single item.

But the will is the guiding document. It's going to dictate what happens. So let's say worst-case scenario, well, let's say none of the cars are on there or none of his retirement accounts are on there. What would happen to those? A judge would decide in probate court with an attorney, which means the will is a piece of crap. They may not be listed on there, i'm getting i'll almost i mean i'll give you a 90 probability that with some broad language the will addresses all of his assets okay it's very i know he wants even the template will

a basic will that you buy at freaking office max it's a piece of crap does that okay and so unless your sister typed this up it probably addresses with some kind of catch-all language for the other stuff i'm not an attorney i've just dealt with this like a thousand times right she's the power of attorney right now yeah but we're reading when he passes that that goes away yeah get the will and look at it everybody sit down look at it now before he passes and let's just have a discussion about it so that we're all on the same page and we go okay that's what this thing says because i'm thinking it probably does not address every item that he owns like your suspicion okay right but i think it does have a some catch-all language that just says and the rest of my assets other than these that are listed or anything not listed

here that i do own falls under this or whatever it'll have something that is like the umbrella catch-all for the other items and now the the retirement account may have a beneficiary on it and that would pass outside the will it usually does as a matter of fact like a 401k yeah it'll have a beneficiary on it like a life insurance policy does and it'll just go directly to that person if the beneficiary is the estate then the will will determine what happens to it. But otherwise, it'll go, if you're the beneficiary on the 401k, it's going to go to you outside, regardless of what the will says. Okay. My last question is taxes on his house and his cars and everything. I imagine we'll all get, I mean, it's not much, $15,000, $20,000 maybe. Anything we

need to know about that income? Shouldn't be any taxes on any of it except possibly the retirement account may have some income tax on whoever it goes to. An inherited IRA does have taxes on it, but inherited money does not. Inherited houses and cars do not. Okay, Dave. Thank you so much. Tom, I'm sorry you guys are facing this how old is he oh he's young he's 48 oh my lord okay well i tell you man from having walked through this a bunch of times you you you know you deal with the emotions you deal with the spiritual aspects of something like this and salvation issues and you also deal with the practical things which is what you're calling about today the um and it does actually help you

with the sadness and with the process you guys are going through as a family if you can all sit down and talk about something like you're asking me and get the will out together and look at it and be on the same page because the lack of harmony among siblings over something silly like what happens to a car is not worth it when your dad's passing. And so I would sit down with the gang and just have a little family meeting, very gentle, very kind and say, OK, let's look at what this says. And it's going to be good for all of us in ahead of time. If we're in agreement on this, they have a learning opportunity, even for myself here. Um, cause I have a will, but also have inside my will power of attorney. I didn't know that when a person, an individual dies, a power attorney goes away as well. When the power attorney go over. No, it doesn't. It doesn't power attorney, power attorney uh because you the power of attorney says that

again i'm acting like a lawyer i'm not one but your answer is um that that let's say you're the power of attorney for me okay when i'm gone you you you signing my name on my behalf which is what power of attorney is doesn't work okay legally that that entity is not there anymore okay and so you can't have a power of attorney on something that doesn't exist anymore from a legal standpoint. Spiritual standpoint, obviously, still exists, all that. That's not what we're talking about. But the power of attorney ends at death, and then the executor of the estate starts to be in charge of executing, thus the name executor. Okay.

They execute the terms of the will okay and you know we throw around will like it's a document it is a document right but you know they always start out almost always with the same kind of little phrase it's like what is my will yeah it's my will and my last statement my last will and testament my personal will that anthony gets this car and that rachel gets this thing and that winston gets that thing okay that's my i i want that to happen that is my will that's where the name comes from that's what a will is it's it's your will it's what you will to happen upon your death and your testament is that you're testifying to that and so we should be updating that at least once a year minimum or as much

as often as we need to add things to the will there's a major life change yes if you move yeah you got to update a will because all will law is all probate law is state law it's not federal law and so louisiana has way different laws than tennessee yeah california florida way different laws california is like another country well you knew that but um but the uh uh you know way different probate laws and so you need it if you move the state that you reside in at the time of your death if you have a will from oklahoma and you're living in illinois you probably have a will that's got some problems okay very likely so if you move number, then if major life things happen, you have babies, babies turn 18 and leave,

you're married, you're divorced, someone else dies and, you know, the person you're going to give the stuff to dies. Yeah. You know, anytime there's a major life change, demographic change, meaning marriage, babies, divorces, all those deaths, all those kinds of things in your life, or you move, marriage babies divorces all those deaths all those kinds of things in your life or you move you've got to update it now we update ours in detail because i've got it's a massive freaking document once a year and we have a meeting with

the family and the leaders of the company and and we go through exactly what's going to happen if dave dies this year it's we call it the monty python meeting i'm feeling much better but yeah and so um but you know but we we're so freaking detailed about it because if you're not the government will end up with it and if you're not the family will end up fighting and the because i said well dad told me that's one thing well yeah no everybody knows what dad thinks because dad covers it in detail yeah a year, and then you update that puppy. So if you don't have a complicated state, you still need to have a reading of the will while you're alive with the parties involved. You don't need a movie scene with the bombshell trophy wife and the idiot son,

you know, that looks like a classic movie scene, right? And they're going to fight in the lawyer's office with a walnut line paneling and they find out what's really happened, what the old man was thinking. No, you do all that stuff while your butt's alive. Yes. This is the Dave Ramsey Show. Thanks for joining us, America. Anthony O'Neill, Ramsey Personality, is my co-host on the air today.

Danielle is with us in Athens, Georgia. Hi, Danielle. How are you? Hi, Dave. I'm doing well. How are you? Better than I deserve. What's up? I need your help settling a lively marital discussion. My husband and I have been talking about this for about a year, and he actually encouraged me to call in because I've been very dogged in what I think is the right thing to do.

You said your husband what for a year? Say that again. We've just been discussing it for about a year. Oh, okay. And he encouraged you to call this show? Yes. Okay. Those are the answers. Okay. we've just been discussing it for about a year okay and he encouraged you to call this show yeah okay answers okay yeah and hi anthony glad to hear from you too um so broadly our question is should we buy and flip a fixer-upper or anthony's gonna love it pay off our student loan uh well you know what i'm gonna like well yes you know what I'm going to like. Well, yes, you know what both Dave and I are going to like.

But what's the argument? I mean, what are you saying, Danielle? Would you like some context? Please do. My husband and I have been married for seven years. And we actually got a little money makeover at the wedding. And we've always been Dave-ish. I'm the oldest of eight.

He's the oldest of six. There's nothing to fall back on if we totally feel it. So we've always been fairly conservative in our spending and had student loans and no credit card debt. But my master's is in nonprofit management. His is in social work. So we have to be creative with how we fill our budget. So in essence, we bought our first house in 2015. It was like $82,000. It was like $3,500 down payment. And he renovated the whole house himself. So we bought it for 82, put 14 or so into it over two years, sold it when we had an 18 month old and I was seven months pregnant, sold it for one 28 five, and then took that $35,000 net profit put as a down payment on our current house. Okay. So we want to be able to use his skillset. Um, his dad

built their, one of his houses when he was 12, he and his brothers can all tile and they've refinished floors and built roofs, right? And so he really wants to get into, we're in Athens. It's a college town. He wants to get into rentals. I want to be completely debt-free and very low risk before we consider that. How much student loans do you have? So $19,583.

What's your household income? Our net is about 70, and mine fluctuates. Last year I was coaching a lot at a local boutique fitness studio, and we've always used his as the foundation, and then I kind of part-time bring stuff in. We have a three- and a five-year-old, so my work juggles around. So explain to me why during the year you've been talking about this, you couldn't have already paid off the student loan. Excellent question, Dave.

We refinanced to a 15-year with a cash out in actually on March 15th of this year, which was two days before our county locked down, with the intent to pay off the student loan immediately. And because everything locked down, we decided to give it six months while there was a break on student loan interest rates and build up our emergency savings. So we're at a three month now. We didn't want to have only $1,000 in the bank

during COVID just in case because his job is pretty secure, but we've always done a lot of- So are you back to work? Accommodating with my extra. I am not. There's no fitness jobs at the moment. Okay, so you get enough cash out of the refinance to pay off the student loan, right? Correct.

And you're still sitting on that? That's right, Dave. Okay. Okay, and so while you were sitting on this egg, he starts to go, I want to buy a house with it instead. He's been thinking that since about May. That was not the agreement when we refinanced the house. When we refinanced the house was we were going to pay off the student loan, and the only reason we didn't was COVID hit.

Right. And so because COVID hit, we sat on this egg, and this egg's starting to crack now, and he's starting to lose his mind and go on to buy a house. Yes, that's accurate. And was he still working during COVID? Yeah. Oh, he's never quit. Never quit, yeah.

Yeah, he works in IT for the university and works remote right now. So his income's solid. Danielle, come on let me just let me help you out this is this is anthony i'm gonna be a more calmer version of dave for you okay uh i want you to get the get the money and go pay off the student loans i mean just just just just get the money go pay off the student loans and then once you pay off the student loans go back to the three months then after the three months then i mean we're just gonna work the baby steps you know i think a lot of people right now just are getting like money hungry oh i can i can use my skills to

make more money and that's fine i want you to make more money dave and we both want to make more money but do it on a solid foundation so what does he do for a living now he went back to his bachelor's he's in it for uga how many hours a week to work program software he's 40 hours a week salary perfect benefit perfect okay so let me let me tell you i got a buddy of mine that's good with laying tile and putting up trim and doing carpentry work and fixing a gutter, started a little remodel business, and last year he made $300,000 profit. Oh, man. What? So these are skills that are valuable.

I'm not sure your husband necessarily wants to leave the IT field, but I think on the weekend he could build some decks and do some other stuff, and he can make more money doing that than he can screwing around and flipping houses and bankrupting you people. Thank you. I'm someone else's dime because they're in and they're just paying me for contracts. No risk. They just write you checks. Yeah.

For your work. No risk is my favorite phrase. And we get to use our skill that mom and dad taught me, me which is a wonderful skill my dad taught me to swing a hammer too it's a wonderful thing to be able to pick up a screwdriver and know which end works you know and so it's a good thing i'm glad he has that skill but it is it's leading you guys down a bad path you need to write a check pay off the student loans as soon as you talk to him tonight i don't want you to hide it from him but anthony's advice is exactly correct interesting discussion it is so it's almost as if you're heading in the right direction and if you pause instead of going ahead and doing

what you're supposed to do it gives you the opportunity to do stupid yes that was the problem you could almost take you could all you know you're going down the interstate and you let your foot off the gas, and the car starts drifting towards the exit. Yes. And the exit says, land of stupid. Right. Right. And that was the interesting thing, and I've done that before, Dave.

You know, I'm going to do this. Then when I get it actually in my hands. Yeah, you look at that pile of money. I'm like, ooh. Ooh, you look nice. Maybe I'm going to go over here rather than going over here. When sometimes it's just best, don't even see it. Get it and do exactly what you was going to do with it.

Execute your plan. Yep. Develop your plan. Execute your plan. And they did have a valid reason for tapping the brakes because of COVID. Okay. I don't have to argue with that. But it is interesting that when you have a moment to think about it,

I've done that too. That's what I could relate to. I thought, you know, if I just would go ahead and do what the flip I'm supposed to do instead of stopping and thinking about it, it really, because when I think about it, it's when I get dumb sometimes. That's exactly what happened there. So interesting, very interesting discussion. Now, we've got to say this too, Dave.

Now, when you're going into your emergency fund, you do want to stop and think and make sure that it is emergency so we're not telling people don't think but we're saying when you say you're going to do something do it well i you know i've got i'm executing on a plan and the next step of the plan is x and if you pause and start gazing at that pot of gold, your eyes will cross, and you'll go into a gold coma. Absolutely. Yeah, that's what happens. And that's very interesting. And they did it for the right reasons, because they should have paused because of COVID.

I don't disagree with that. You didn't want to have $1,000 in the bank. That was her point. And that follows what we were teaching people in the middle of COVID. Just calm down, pause. You don't have to do a bunch of moves right now however it is also an interesting principle that um here's what i'm trying to say what do you sometimes we overthink it sometimes we overthink it james we overthinkthink that. How do you lose weight? You eat less. And you work out.

You know what makes you look thinner than wearing black? Being thinner. This is the Dave Ramsey Show. Thank you. The crisis this year has left a lot of people feeling scared about their money, and all they know is that they never want to be in this situation again. But they have no idea where to start to get better with money. And that's where you can help as a Financial Peace University coordinator. Coordinators are everyday folks, just like you, who walk people through our proven plan to get out of debt, save for emergencies, become wealthy, outrageously generous, and never

have to worry about money again. You don't have to be a money expert to be a Financial Peace University coordinator. We take care of all the teaching. You can even lead a virtual class from home, and just for leading a virtual class, we will give you a free Ramsey Plus membership for a whole year. That means you get all of our best tools, all of our best content, including Financial Peace University, the legacy journey, including every dollar, all of this, while you stay focused on your own goals and you're helping others. Guy's a coordinator. They change people's lives. They're really boots on the ground and you can show folks the way to take control of their money for good no more fear no more sleepless

nights to learn more text lead fpu to 33 789 free ramsey plus for a year for leading a virtual class text lead fpu to 33 789 again lead fpu to 33 789 brian's in beaumont texas brian welcome to the dave ramsey show how can anthony and i help hey guys how are y'all good how can we help i work for a major oil company, and my employer has just suspended my 401k match going forward infinitely, I guess. So I'm wondering, should I continue to contribute, or should I focus more on an IRA, and can I roll over my 401 to an IRA while I'm still employed? Answer the last question is no. You can't roll a 401k while you're still there.

We recommend matches first. You've lost that. The second best thing to do is Roth. Does your 401k have a Roth option? Yes, sir. I'm currently investing in the Roth. Okay. And, well, that has the exact same effect as having your own Roth IRA.

Okay? The only difference is the 401K has got a few more restrictions on it, but in terms of what it will turn into for wealth building, if you were invested in the exact same mutual funds inside a Roth 401K that you were inside your own Roth IRA, you'd have the exact same results. Okay. So do you have good mutual fund options in your 401k? I do, but they are limited.

So I figured with the IRA, I'd have more options. Yeah, if you want to slow down your 401k and start your Roth, that'd be okay. But, you know, and then someday if the match returns, then make sure you return and get that match, right? okay. Yeah. But, um, it, you know, and then someday if the match returns, then make sure you return and get that match. Right. Absolutely. Yeah. Yeah.

Oil field is, you guys are taking a real hit. It's been a long couple of years, hasn't it? Yes, sir. It's, uh, it's getting longer as it, as it goes on. Yeah. It's been a dadgum boom town up until then. Everything you could, everything was on fire and all of a dadgum boom town up until then everything you couldn't everything was on fire and all of a sudden it just went to nothing and uh yes sir then we then we put

covet on top of that and destroyed demand nobody's driving and buying gasoline so there you sit with a oil oversupply and that drove prices down even more and uh you guys are just hanging on so i hope it turns around for you, brother. Yes, sir. I appreciate it. Thanks for calling in, Brian. Open phones at 888-825-5225. Christy's in Arkansas, or Alaska, I'm sorry.

Wasilla, to be exact. Hi, Christy. How are you? Good. Thank you for taking my call. Sure. I rode some dog sleds in Moisela one time. Oh, fun. It's a beautiful, hot, 70-degree day, so it's perfect here.

Good. Good. How can we help today? Well, my husband and I can't make a decision about, or just having trouble making a decision about whether to sell our house and finish paying off our debt by baby step two we have about 40,000 left on his student loan our house is worth about 325 and we owe 260 so we think we'd make about 40,000 profit if we sell do you like your house it, but long-term we don't want to stay here, you know, forever. We've got three kids. They're 11, 14, and 17. So we're just looking at transitions in my starting college with them and everything like that. So lots of changes coming up and don't know if it's worth it to sell it or just tough it out for one more year um we've paid off about 110 000 in debt over the past two years if you paid it off um if

you did sell it um christy what what would you all or will you guys be okay renting for the next three to four years to get your emergency yeah back? Yeah, we were thinking maybe two years, but you might be more correct. We could rent for about $1,500 to $1,700 a month probably, and utilities would go down too because of the home that we're in. It's older and it needs some work too. What's the household income again? About $100 per year. $100 how much? $115.

$115. Okay. Alright. On this one here, Chrissy, I'm going to say if you all do not like it and you see yourself moving out of it anyways down the road and you are really gazelle intense about getting out of debt, a year is not going to make a huge difference on it anyways down the road. And you are really gazelle intense about getting out of debt.

Uh, a year is not going to make a huge difference on getting equity in the house. Maybe a couple more, a few more thousand dollars. If I was in your shoes, I'm selling the house. Go ahead and get on the game plan to rent for the next.

I'm gonna say what your income about two, two more years, and then go ahead and save it to get back into the house that you all want to be in it. Not just you like, but that you love. Yeah. You know, one year from now after getting, if you sold the house and paid off the debt, one year later you should have $40,000 in your bank account.

Yeah. Because you could have paid off $40,000. Yeah. And now you don't have that debt and you've moved down in-house. And so you should be able to save at least what you would have paid off in debt had you stayed in the house. And so if you're going to rent, do not rent something super-duper expensive and nice because the idea of this is to take a step back in order to be able to leap forward. Yeah. That's the idea.

So make sure you get that effect out of this. That's very, very important. And we suggest 25% of your net pay. So we're probably saying anywhere between maybe 15 and 20 max, you will say from like a number wise, or you're saying just as cheap as possible, but that's livable. Yeah. I mean, on as a rental, the cheaper the rent, the more money you save and the better house you buy with a bigger down payment. Right. And so rent is patience. And so don't pay any more for your campsite than you have to, because you're camping for two years.

Yeah. Not literally, but figuratively. And, you know, Dave, people have a problem doing that, man. People have a problem living way below their means to go after their dreams and their goals. I don't think she does. I think because if you're willing to sell your house, you know, the trick is just don't fall in the trap of moving up into a nicer home than you're in now as your rental. Move into something that's, hey, this is our adventure house. You're right.

Because every $500 that you don't pay in rent is another $6,000 a year. Yes, sir. And that's good money. In your savings account. And that starts to build up a good strong down payment for the next purchase. You are on track. Right on track. Very good money. In your savings account, and that starts to build up a good, strong down payment for the next purchase. You are on track, right on track. Very good stuff. Truly, the Bible says that no discipline seems pleasant at the time, but it yields a harvest of righteousness.

And that's where we get live like no one else, so later you can live and give like no one else. And that's the path that Christy and her family are on. Yeah. So the thing is, there's these little, when you actually go look at a rental house and you go, ooh, it starts to go, oh, that philosophy of living on less than you make and, you know, sacrificing to win. Ooh. Yeah. Ooh, that's what this means. Ooh.

So, you know, before you put it on the market, you ought to go look at some rentals and know what you're getting yourself into emotionally. And then if you still want to do it, then that's okay. James Childs is our producer. Kelly Daniel is our associate producer and phone screener. I am Dave Ramsey, your host. My co-host today, Anthony O'Neill.

This is The Dave Ramsey Show. This is James Childs, producer of The Dave Ramsey Show. On your smart speaker, you can add our skill by saying, Alexa, open the Ramsey Network skill. From there, you can listen to all our shows. Ask Dave money questions like, how do I invest my money? Or what is the debt snowball?

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