The Ramsey Show - App - Walking Away From a Deal Means There's a Better One Coming! (Hour 2)

Episode Date: January 19, 2021

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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, Chris Hogan, Ramsey personality, and number one best-selling author is my co-host today. Open phones at 888-825-5225.

That's 888-825-5225. Tom is with us to start us off in Grand Rapids, Michigan. Hey, Tom, welcome to the Dave Ramsey Show. Hey, Dave. Hey, Chris. Thanks for taking my call. Sure. What's up? Hey, so my wife and I are about to close on our second home. We're about 25. I'm 25. She's 26. We have enough between cash and investments to pay for the whole home in cash.

The problem is a lot of it is in investments, and a lot of it, about half of it was put in around April. Um, and so we're looking at paying potentially short-term or long-term capital gains in a couple of months, if we were to check it out and we're kind of just like, it's gotten to a large number and the amount of money that, you know, I could be potentially making year over year, just, you know, and study growth being in good mutual funds i'm a little weary about taking that large amount of money out um and not just continuing to let it grow and especially since the mortgage rate is so low now tom how much money we're talking about you're saying a large amount give us give us some specifics yeah so i got about 160 000 in cash and i have about 430 000

investments and what's the basis on that $430,000? What do you mean? What did you pay for it? So I have about $245,000 in actual cash that was put in. That's what you put in to make $400,000? Yeah. So you got a $200,000 gain in nine months. Yeah.

Okay. All right. And so, yeah, you're going to pay ordinary income on that, so that's going to be pretty heavy. It'll be pretty hefty. All right. So that's question one. And then the overarching question is, do I pay $600,000 for a house and pay cash?

Because mortgage rates are low. Yeah. I mean, it's $535,000 as a home cost. Um, and so, uh, you know, I, I, my thought is, is we're both maxing out our 401ks. Uh, we make just a little over 200,000 a year and, you know, we could just divert, you know, roughly 60,000 a year for the next six years or so, or, you know, after the 20% 20 down six seven years and just do it that way rather than you know emptying all of our investments and stuff and you know paying cash is the only debt we would have let's let's let's pan back just a little bit because there's

two or three different answers uh and it's it's the nuances of it. Okay. Number one, where do we want to end up 10 years from now? Let's pan back that far. 100% of the time, all of the data that we find, I mean, 100% of the time, you're going to want to be debt-free. Right. 10 years from today. Okay. Or seven years from today. Or, as you said, six years from today.

All right. So the long-term goal is debt-free. Now, why is that? Well, it adds stabilization to your overall life and that you own your home. There's no threats when there's a pandemic that something turns upside down on your wonderful careers that you have. And all of a sudden, this house is in jeopardy and everything's in jeopardy and there's a lot of stress. So if you're the third pig that built his house on the brick with the big bad wolf comes along and the brick is paid for you got no issue that's right so that's where we want to end up and we know from all our data that the millionaires want to do that and we know the

borrower really is slave to the lender that's not a dadgum joke right and so that's where we want to end up so in light of that i figured out i don't borrow money ever for anything and so i would be looking at a delayed closing on this to get me past the capital gains date so i wouldn't close on this property until april and i'd actually pay them a little extra to do that if it's me because i'm going to pay a hundred percent cash a hundred percent of the time now the one thing we don't yell at people for is taking out a mortgage if they can pay it off rather quickly or as quickly as possible and so we wouldn't yell at people for is taking out a mortgage if they can pay it off rather quickly or as quickly as possible and so we wouldn't yell at you if you took out a short-term bank loan and paid it off within a year to avoid the uh to make that a long-term capital gain instead of an ordinary gain which is going to cut your tax bill in half that's a a $40,000 play in this scenario. Right. Tax savings only.

Now, am I going to keep you in debt on your house because of low mortgage rates in order to invest more? Absolutely not. As a philosophy. Absolutely not. So that's not where I want you to be long term. It's not where I want you to be as soon as you can get there. So there's two or three things playing in this but the capital gains thing and the april the april date and the gain you know you take a ordinary income on a two hundred thousand dollar gain or two hundred fifty

thousand dollar gain versus a fifteen percent uh which is what you'd be on your long-term capital after one year yeah i'm probably gonna want you to mess with that i can't because i have vowed before god i will never borrow money again for any reason because i truly believe the teach stuff we teach so and if i were in your shoes and i'm sweating that capital gain i'm going to just do a delayed closing in order to avoid it and get it past that one year mark and come out of there but tom you know you're really kind of asking two questions that the capital gains thing and the gains that you've had this year right have made you a little greedy because you had an unrealistically good year on the stock market.

It is unrealistic. It was a wonderful year. Oh, it was. Especially when you bought at the bottom. That's right. Absolutely. You bought right at the bottom. And, Tom, I'm going to tell you this.

25 and 26 years old calling in with this kind of question and the path you all are on you've got the habit of saving you've got the habit of being intentional please please please continue to grow that skill uh do not backslide and i know that because having been 25 and 26 stupid comes around and it's shiny and it's real easy if you're not clear on what it is you want to make some bad decisions so very proud of the progress you're making. Take your time. Look at this. And it's okay to delay some gratification because it's going to feel a whole lot better

later when you walk in that home and it's all yours. Yeah. The number of times I couldn't do something because I didn't have the money right then and so because I refused to borrow money, because I truly believe the borrower is a slave to the lender. I really am a legalist. I really am a fanatic. I really don't borrow money for anything.

But the number of times I couldn't do something, so I didn't, because I couldn't figure out a way to do it. I couldn't scheme it. I couldn't scam it. I end up with a better deal. Like, let's say he said, okay, I can't do this if I'm not going to do a delayed closing because I'm unwilling to pay the capital gains and I'm unwilling to borrow money.

Right. Okay? And then the seller says, no, I won't do a delayed closing. You lose the deal. Yeah. You know what you end up with? Better house later. Every time you get an upgrade.

Wow. God's always standing there with an upgrade. The other side of you making the right decision. And that's not what our mind tells us. No, no. It's a mind. We have a shortage. Scarcity mentality.

That if you don't do this, you're never, ever going to be able to do it. The number of times I've walked away with a deal. And when I walk around the corner, there's a better one waiting. Because I walked away from the deal for the right reasons. Wow. That's a lesson there. Sticking to the principles. I'm going to dance with the girl that brought me.

That's right. I mean, this debt-free thing, it brought me here. It's real. This investing thing, it brought me here. This outrageous generosity thing, it brought me here. And I don't care if there's another pretty girl at the party. Those are the ones that I came with. That's the girl I came with.

I'm dancing with her. That's it. This is the Dave Ramsey Show. In an uncertain world, being a good steward of your money is more important than ever. While some circumstances can't be controlled, there are items within your budget you can take charge of, such as your health care costs. Thank you. chministries.org slash budget. That's chministries.org slash budget. Chris Hogan, Ramsey personality, number one bestselling author, is my co-host today. Our question of the day comes from Blinds.com. They have a 100% satisfaction guarantee. It means that even if you mismeasure, you pick the wrong color, they will remake your window blinds for free.

You get free samples, free shipping. And with the new promos they run every month, you'll save even more. Use the promo code Ramsey to get the best possible deal. All right, Dave. Today's question comes from Crosby in Idaho. He says, why do you recommend only 15% of your household income to be invested? If I can do more, should I? Ah.

So, looking at this, Crosby, I'm going to take a stab at this, Dave. You get 15%. What you're wanting to do is to get started and allow compound interest to start moving for you. However, you're still going to be doing some other things. For example, we invested baby step four, 15%. You're still going to be saving for college, and you're going to be attacking to attack and pay off the house. Now, Crosby, once you attack and pay off the house, you definitely can invest more than 15% because you freed up that income, that payment from going to the mortgage. Yeah, it only applies until the home is paid for.

That's right. And once your home is paid off, then you've got a lot more cash flow and you can do other stuff. Wide open spaces. Obviously, you could do 12% and put more towards the mortgage. You could do 17% and put more towards the mortgage. You could do 17% and put less towards the mortgage. So why 15%? Is it magical? No.

Right. It's not magical. It's not a magic number. But we did, when we were designing the baby steps, we learned the baby steps from working with people over the years. We finally said, we first used to tell people to stop doing everything and get out of debt. Then we developed, people kept having, you know, the tire would blow out, the alternator would go out on their car, the kid would get sick and it's $200 at the pediatrician. And they didn't have any money because they paid it all on the debt.

Right. So then Baby Step One was born. So before you get out of debt, have $1,000. So you got a little starter cushion. So it was born. These steps evolved. Right. We didn't just make them up in a room.

Right. They evolved in 30 years of coaching and counseling people so once we got out of debt and got the emergency fund in place then we said okay what what number in the budget with the average household income is fifty nine thousand dollars in america but if you're making thirty two thousand the number still works and if you're making a two hundred thirty two, the number still works. And if you're making $232,000, the number still works. What percentage allows you to have money left beyond that percentage? That's a big, healthy percentage. Right. But beyond that, you'd have money left for college savings,

and beyond that, money left to begin to pay off your home earlier. And we played with 10%, 12%, 17%, because we have people that are super savers and they will put 28 percent in right and then we have people that go i only want to put three percent in because i want to pay off my house right and we knew neither one of those were right because you need to have a good healthy amount going in but not so much that you don't have any left to flow over the edge of the cup over into the other two baby steps. And so we ran case study scenarios off of real people that we had met with, you know, all these tens of thousands now today,

hundreds of thousands of budgets that we have done at Ramsey, and the 15% just works. It works at almost any number. Now, again, this is not out of the Bible. Right. And so it's not an absolute. You can decide to do whatever you want to do. If you want to do 17%, do it.

I wouldn't recommend it. This comes from real experience. We didn't just make these numbers up. This wasn't in a think tank somewhere that some stupid broke college professor came up with. You know? And, you know, got tenure and no money. You know? You don't want people with no money teaching you about money here's the the magic of it is obviously most everyone has picked up on your percentage

that you've devised because it does allow people to continue to take care of life but at the same time get compound growth started in your favor and the same thing when we talk about buying a car you don't have cars that are more than half your annual income you pay cash because you have too much invested in going down in value right the same thing we talk about no more than a fourth of your take-home pay on a 15-year fixed on your mortgage you don't want to be in debt long term so no more than 15 years and if you have more than 25 percent of your take-home pay going into your mortgage you're going to have trouble saving to buy and pay cash for the next car you're going to have trouble paying cash for your vacations you're going to

have trouble doing your 15 percent into your retirement and kids' college and been paying the house off even earlier. So you become house poor. You can become investment poor. Yes, you can. Cash-wise. And you can become house poor cash-wise. You can become car poor cash-wise. And these are the things that kick people in the kneecap while they're trying to get ahead.

Right. And I remember when I first started working the plan, and I was like, $1,000, that's not enough. What's not enough? That's not enough. And then I realized, I was like, ah, wait a minute. No, no, no. This is going to break the habit of me thinking that debt's an option. And it's going to give me a little bit of cushion.

Yeah. You know? And it was one of those things where you go, ah. Because if you won't do that one, if you won't do the 1,000, there ain't no way in the world you're going to do baby steps, too. You're not going to submit yourself to a plan. You're not going to submit yourself to a plan. That's right.

You know what was happening, Chris? And this was in the early days of Financial Peace University, before there was baby steps. I mean, I was teaching this stuff, and I'm teaching it in class, and we're sitting in there having the small groups. And what would happen is that somebody would have, that was really earnest. They really had had an I've teaching it in class, and we're sitting in there having the small groups. And what would happen is that somebody would have that was really earnest. They really had had an I've had it moment. They really were ready to change.

They really wanted to get out of debt. And they're really game on. And, you know, they're charging the gates of hell with a water pistol. Here we go, baby. Let's get going, you know. Game on. Let's bust this thing. Braveheart this thing, right?

Let's go. And they go down there about three months and they're busting into this thing and their emotional energy is starting to run a little bit low but they are making progress and then that alternator would go out or that that you know tires tires you know brakes to go out on the car or something a kid gets sick some little thing and you know it really didn't ruin their plan the fact that they pulled out an old credit card and went and bought tires. But it ruined the psychology for them because they felt dirty. They felt like a drunk that had gone and got somebody that was an alcoholic that had been dry for 90 days and then went and got drunk.

Right. They felt dirty. And so they'd quit so the thousand dollars isn't about you and about never using a credit card again it's about the feeling that you you went back to the old ways you know the proverbs talks about a dog returning to its vomit you know and it's how it feels you wake up and you go man and you just feel like a dog. You feel awful because you failed. And you really didn't. Right.

It's $200 on a credit card. Guy's got $42,000 on his credit cards. The $200 didn't really keep him from winning. That's right. But the fact that he fell off the wagon did, and that's all the $1,000 is for. It has nothing to do with the actual math right right it's to keep you from feeling like you're not working the plan right gotcha like you fail and that's what's worked and that's why that's why it's so important

and so you know you see these stupid butt people posting stuff about us on the internet and man there's everything in the world out there. People just make up stuff. I mean, Tom Cruise had sex with an alien, you know, I'm sure. And we interviewed the alien, you know. I mean, they just make up crap. And so, but they, you know, Dave Ramsey doesn't understand. You know, he's out of touch with the times, $1,000. Well, $1,000 wasn't enough when we started either, duper.

Right. It was never enough. It was never intended to be enough. And, you know and and you know some financial planner dave ramsey thinks a thousand dollars is an emergency fund no he doesn't you moron that's right i tell you what i think an emergency fund is three to six months of expenses the same thing that's been taught in the financial planning community for 50 freaking years right you know it's the same exact thing the rainy day fund grandma's rainy faint day fund the

g-o-k fund the god only knows fund it's always been the same i didn't make any of this up the only thing about the thousand dollars is to keep your emotions intact and you don't feel dirty like you didn't work the plan when some little dinky butt little emergency comes along now you have a ten thousand dollar emergency you got another issue. That's right. While you're in baby step one or two. Right. Yeah, you do. You've got a different thing going on then. But most people don't have a $10,000 emergency but about once every 10 years.

Yeah. 78% of Americans will face a $10,000 emergency fund once a decade. Now, the trick is, are you going to be ready when that comes what happens and you will be if you work these baby steps in order that's right but during the time you're in baby step two the number of times that that big emergency comes along at exactly the wrong time it's fairly really rare that doesn't happen often well it's more about worrying about the unknown yeah that's so good to hear the rationale behind that. I'm glad we talked about that.

That's good. And listen, if you're out there and you fell off the wagon, get back up on that thing. This is 2021. You still got time. It's just gotten started. Let's do it. This is the Dave Ramsey Show. We'll see you next time. Chris Hogan Ramsey personality is my co-host today. Tyler and Shauna are with us in Boston, Mass.

It says on my screen, you guys are debt-free. Congratulations. We are. Thank you. Way to go. How much did you pay off? We have paid off $343,993 in 36 months. Woo-hoo!

Wow! And your range of income during that time? So we started around $150,000, and then when we finally paid everything off, we were up to $240,000. Wow. What do you guys do for a living? I'm a nurse, but I'm currently staying home with our three kids. And I'm in sales. Sounds like it. Yes. and and i'm in sales sounds like it yes yeah you guys are taking care of business so tell me what stuff did you pay off so we had quite a bit of student loan debt about 245 000 uh yeah yeah our cars, credit cards, and then a 401k loan. Okay, so you did over $100,000 average a year for three years.

You've been on beans and rice, or you sold some stuff, or you had some savings you threw at this. We definitely sold some stuff. I'll let Tyler tell you about that. Yeah, we sold a couple things. We actually lived in a three-family and rented out the other two units as part of this and did a condo conversion and sold them all individually. So that put a good amount of money in the bank. And you might see pictures of our cars on the screen.

One of them is a very excited picture of us leasing a new car. We paid all those off and then decided we wanted to dollars in the bank uh you cut out you said you paid one of them off and last i heard you were leasing a car so i'm confused well we we paid off a lease car so we had two cars that we financed one was leased and we paid them both off and just decided we didn't need that much car so we actually we traded down to a smaller car and put sixteen thousand dollars towards our debt oh wow i actually yeah i actually totaled that car three months later and you you hear people call in and use it as an excuse to buy more car we actually traded down trade it down again are you guys there yes we went down again okay you're breaking up pretty bad okay good

congratulations so what's the key to getting out of debt? You did an incredible job. Yeah, I think the key to getting out of debt is really having a big why. For us, we accepted Jesus Christ as our Lord and Savior as we started this process and decided we had to tithe, and we just realized we were managing our money poorly and needed to change something. So I think that was one of the big reasons that we decided we needed to make a change and to just show our kids that you could do things differently, that living debt-free was normal.

Yeah, absolutely. Shanna, what was the biggest sacrifice for you? I would say just, I guess, learning to say, you know, no all around, whether it be, you know, going out shopping or going out to eat, just learning that word no, that wasn't a word really in our vocabulary, and we quickly had to learn what it meant. So you said you guys accepted the Lord right about the time you started all this. Tell us the story. What happened here? Yeah, about three months probably before we started our debt-free journey, we both found the Lord and accepted Him and decided we had to tithe.

And we just looked at our budget and realized we were going to be living on 90% less than we had been before. The numbers didn't work, and we weren't sure how we were going to do that. But we just made the commitment to do it anyway, and the Lord's really blessed our 90% more than our 100% ever worked for us in the past. Yeah, and so a couple months later you, what, found Financial Peace University, did you say? Yeah, somebody at our church was promoting it on the stage, Peter and Alicia Martino. We actually couldn't take it at the time, and we kind of did day-ish for probably 16 months

before we finally did FPU on our own online. We're actually going to be leading our first FPU course in a few weeks, so we're pretty excited about that. Wow, thank you. Yeah, that is fantastic. Good for you guys. We're excited to just share what we've learned and just, you know, the excitement that we felt and the freedom that we've found, I mean, we want everybody to experience that. Well, I'm going to tell you, you guys calling in and sharing your story, you have no idea how you're motivating other people to start to believe that they can, too. And so I'm proud of you guys, and I'm very honored that you're going to go back and pay it forward, leading a class and helping other people find their way as well. So job well done. Amen.

Well done, you guys. Thank you. So this was a pretty intense three years. Yeah, yeah. It actually went by faster than it felt it was going at times. When you got done, was it worth it? Absolutely. Will you ever go back in debt?

No way. No way. Not a chance. Nope. Yeah, you live like no one else, so later you can live and give like no one else. I mean, you make $240,000 a year. You don't have any payments but a house payment. Yeah.

That's pretty rowdy. Exactly. You can go do some stuff. Yeah. That's why we did it. We got a copy of Chris's book, Everyday Millionaires, for you guys because you're going to be one soon. That's the next chapter in your story. Keep working, keep working, keep being intentional.

You can slow down on the intensity a little bit, but now the intentionality kicks in. So well done, you two. We're proud of you. Thank you for leading Financial Peace University and Ramsey Plus. We appreciate that. Tyler and Shauna in Boston, Mass, $344, 000 paid off in 36 months making 150 to 240 count it down let's hear a debt-free scream three two one That is a lot of money. A whole lot.

I mean, Dave, that's $245,000 in student loan? Yeah. That's a lot of money. That's a whole lot. Folks, what if you didn't have any payments? What if you didn't have a credit card or medical bills or student loans or no car payments? After 2020, most of America feels the same way you do right now, stressed, out of control.

But 2021 can be your year. Time for you to take control. The best way to do that is the Ramsey Plus money reset. It's our challenge for anyone who starts Ramsey Plus this year. How much progress can you make on your money if you go all in for 90 days? All in to paying off your debt as fast as you can and then finally saving for emergencies as fast as you can. With Ramsey Plus, we're going to show you every day what to do, every week what to do, the small wins with your money, and even some really big ones. And then we're going to help

you turn those wins into lifelong habits. It is never too late to get a great start this year decide to reset your money go all in for 90 days take control you can do a free trial at ramsey plus if you want to it includes financial peace university it includes the every dollar premium app It includes all kinds of tools and other courses and classes. It's everything you need to know about money in one place. DaveRamsey.com slash reset. Do the free trial. DaveRamsey.com slash reset. Yeah, now that's important, Dave.

And I've been listening. I've been watching people. You know, I've been doing a little cardio and doing some stuff, getting myself in better shape. But I was reading on it. It was talking about you need a system. You need a system and a process to be able to follow in order to get healthier and do all the things. And I thought, that's exactly what Ramsey Plus is.

It's the system. It's the thing you plug into and do the things that are there. Well, one of the best phrases I've ever heard was Craig Gro rochelle the other night we did recent last tuesday night and a week ago today in oklahoma city that went fast and um you know he said quit trying start training yeah yeah training is you're gonna make mistakes when you're training and it's never perfect it's never a straight line from where you are to being wherever you want to be but when you're in training you don't eat that when you're in training you don't buy that that's right you don't do that training i can't do that i'm in training that's right i can't do that i'm in training and i'll just keep saying that to you that's a really

powerful little phrase right there it really is i'm trying to get out of that. Nope. Mm-mm. I'm in training. I can't buy that. Can't do that. Amazon Prime? Nope. Nope. I can't click that. Nope.

Nope. That big old pop-up ad that comes looking at you. We need to get like a nope button. We do. You and I both pop up. When you push it, it's nope. When it's Chris's voice, nope. Nope.

That's what we're going to tell people. This is the Dave Ramsey Show. Thank you. Chris Hogan, Ramsey Personality, is my co-host today. This is the Dave Ramsey Show. Open phones at 888-825-5225. Cesar is with us in Fort Myers, Florida. Hey, Cesar, how are you? I'm doing great, Dave. How are you?

Better than I deserve. What's up? Thank you so much for the call. What an honor, really. You too. For me to talk to you guys. So I sold my house. I used to live in Connecticut, moved to Florida about a month and a half ago.

I sold a house in Connecticut for $225,000, and I owe $210,000 here in Fort Myers, in my second home. I'm not sure if I should invest the $225,000 or pay off my home right now, my house. How much do you owe? $210,10 on the current house? Correct. It's worth $335.

Okay, so you took out a mortgage on it and the money from the home sale in Connecticut was just sitting in the bank? It's sitting in the bank right now. He had the mortgage earlier. But now you can pay it off. I could. Yeah, good.

What are you hesitating about, bud? What's wrong? Well, because I retired about probably back in April, eight months ago. Yes, sir. I'm 48 years old. I have an $80,000 pension coming in. Okay. years old uh i have an eighty thousand dollar pension coming in okay uh and uh i have about four hundred and ten thousand on a 457 right now right and i i could continue making mortgage

payments on my with my retirement you could so let's try it this way, Cesar. Let's pretend for a second that you did not have any of this $200,000 left and you had a paid-for house that you're living in there in Fort Myers. In other words, you paid off the house, okay? Correct. Let's pretend you're sitting there in a paid-for house with that money in the 457 and the $80,000 pension, and you're sitting there in a home in Fort Myers, and that home is worth what? $335,35 right now. Okay.

If you were sitting there in a paid-for house with your 457 and with your pension and no other monies other than not counting the money from Connecticut, right, would you go get a new mortgage on the Fort Myers house in order to invest? No. Same thing. Thank you. in order to invest no same thing thank you now let me tell you what that little trick does okay yes here's what's going on when someone asks including me because i'm a math nerd should i pay off my home because mortgage rates are low and i can make more by investing it into a mutual fund?

You are using your brain to do math, and you're considering with good critical thinking skills, does the math work to do this, right? Now, when I reverse and I do that little trick, which is a, you know, it's called a sunk cost analysis. In other words, do we reverse engineering something is all we're doing. When I do that, it causes you to think not just with your brain, but also with your heart. Because your brain didn't leap when I suggested you go get a new mortgage. Your stomach did into your heart. Right. And so that's where you measure risk is in your heart. You do math in your head, and you have to use both to have a good financial plan. And too many people in the financial world only use the brain for the math,

and they don't use the risk analysis of the heart. That's good. Math is in the head. Risk is in the heart. I mean, that's a, you know. You think about your physical reaction. That's right. When you think about going and getting a mortgage on a paid-for house, you kind of like you

got the hiccups almost. That's wrong. Your chest got tight. Yeah, no. Your diaphragm, your abdomen changed. Your brain didn't move at all. No. It didn't even flinch.

Not at all. That's amazing. Cesar, you're going to be feeling so different. Yeah, pay it off. You really are, buddy. You're going to feel so different. You've done a great job, and thank you for being a listener. 48 years old and retired? Yes, he's done it the right way.

Open phones at 888-825-5225. Mike is in Boise, Idaho. Hey, Mike, how are you? Hey, guys, how are you doing today? Better than I deserve. What's up? Thank you for taking my call.

I'm hoping you guys can help maybe settle a discussion my wife and I are having on the last item in our snowball. I bought a 2014 Ford Raptor Shelby about six months ago. So weird. Yeah, to fix up and actually flip. That was the intent. We got a pretty good deal on it. But then he fell in love. Well, okay, so my wife actually fell in love.

With the Raptor? This is funny. With the Raptor. I love it. raptor this is funny with the raptor i love it she uh i love this woman got a little bit of a so she got a little bit of uh anxiety while driving and for whatever reason when we get in this truck and drive on the freeway and it's like a freaking tank of course she doesn't have anxiety driving i drive one every day i love my so she loves it so so where we're at right now is we paid everything off with that and what do y'all want it you know i what's that what do

y'all want it oh 30 about 30 000 what's your household income 175 okay and then what's your question so my question is we're deciding whether or not to sell it right now. I purchased it with the idea to flip it. It's worth about $45 to $50 depending on the buyer right now because it's kind of that special supercharged package, the whole thing. My concern with selling is we haven't got very far in retirement. I'm 43, and we were thinking, hey, if we sell this, we're done. We'll put a little cash in our pocket, but we enjoy driving it so much. It makes the traveling so nice. She's kind of on the fence where she'd like to keep it and figure out how to-

What's your other car worth? Let's see. She's got a 2014 Escape, and it's like maybe 15 grand. And that's the only other car? You only have two cars? No, no, no. Sorry. So when I talked to the gal, so I've got a couple other specialty vehicles, and that's one of the reasons that I'm kind of leaning towards selling. I've got a couple early Broncos as well that I've had for years. You have good tech. And so I fixed them up, restored them, and they're in the garage.

How much are they worth? Mike, how much are the Broncos? Oh, they're in the garage so how much are they worth and i drive mike how much are the broncos yeah they're worth a hundred grand yeah so the one i have is an all original uncut one it's probably worth in the sixty thousand dollar neighborhood and then the one that's more of a toy is probably worth mid 40s i would say okay you got a lot tied up in cars now those those two cars there i'm going to pull them to the side because they're probably not going down in value. They're specialty vehicles. They're collectibles. But 90% of the time, 98% of the time, you buy something with wheels or motors,

it's going down in value. And you just don't want to have too much tied up in toys. You guys got a lot in toys. We do. And that's kind of where we're both trying to have how emotionally tied are you to the broncos i'm saying say that one more time please how emotionally tied are you to the broncos um one of them i'm pretty emotionally tied to just because of what it is i mean the other one it's so i mean i am i'm emotionally tied to them they're so rare i can never replace them no that's true

i love how honest you are, Mike. I like how you tried. I mean, so it might be, I mean, I was just thinking, because I'm a car guy, and I'm into all these cars you're talking about. I love every one of them. You've got some sweet stuff there. You've got good taste. I'm probably dropping a Bronco and keeping the Raptor, but that's just me.

That's just me. I don't care what you do. I'm a little bit afraid with all four of them, you've got an awful lot tied up in rolling stock with $170,000 income. Okay. You're going to get the $30,000 paid off, and you're going to retire a millionaire. I'm not worried about that. You've got to stop buying cars.

I know that. Especially ones you keep. That's right. Because you know, Mike, you're only a few months away from finding another one. I'm with you, Dave. Pick a Bronco. Sacrifice it. Pay off the Raptor.

Put mama in that Raptor. You think he's going to drive the Escape? No chance. Wait a minute. No chance. Wait a minute. Sell the Escape. the escape that's what i'm that's true yeah get rid of that thing and then drop the only thing on this list that i wouldn't care about yeah get rid of that thing sorry escape this is a boy discussion right here i'm just saying oh i don't know man that's a hard one that is tough just you don't want too much tied up in rolling stock get rid of the debt if you're going to keep it for sure you don't know, man. That's a hard one. That is tough. Just you don't want too much tied up in rolling stock. Get rid of the debt if you're going to keep it, for sure.

You don't want to keep the debt around. And I don't blame you for having this discussion. No, this is a good one. This is a good one. This is the Dave Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money in under 10 minutes. Check out the Ramsey Call of the Day podcast wherever you listen to podcasts.