The Ramsey Show - App - We Have a Ton of Debt & No Retirement (Hour 2)

Episode Date: June 7, 2023

Dave Ramsey & Dr. John Delony answer your questions and discuss:  "We have a lot of debt and nothing for retirement", "I'm upside down on my car, what should I do?" "How much should we put down on a house?" from the blog: How Much Down Payment Do You Need on a House? What to do with an old pension plan, "Should we sell our condo?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Join a Personality-led FPU class. Click here! Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studios, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Thank you for joining us. Dr. John Deloney, 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. It is a free call. Johnny's with us in Boise, Idaho. Hi, Johnny. Welcome to the Ramsey Show. Hey, guys.

Thanks for having me on. Sure. How can we help? So I'm a self-employed contractor. I'm 46. My wife's 40. We don't have anything saved for retirement. We have an auto loan, a mortgage, a little bit of credit card debt.

And we're just wondering what the best plan moving forward is from here. We have about $110,000 in savings. Okay, so how much debt do you have, not counting your house? I have a truck loan that's, there's about $40,000 left on it. Okay, and that's your only debt other than your house? Yeah, a couple thousand in credit card, but we usually pay that off every month. And you have $110,000 in savings and cash? Correct.

Not counting retirement? I have no retirement. There's no 401, nothing. How old are you? I'm 46, and my wife is 40, and she stays home. She's not employed. All right. And what's your household income sir um it it varies but i would say it's probably around 90 to 100 good okay all right johnny i get the sense from the words you're using in the way you ask this question that you're fairly new to this whole ramsey discussion about money i am yeah okay all. Okay. All right. Um, so our whole

thing is when I was in my twenties, I went completely broke because I was stupid and I went into debt up to my eyeballs buying real estate. And that taught me a lesson that was stuck with me the rest of my life. I'm now 62. So I have lived 35 years with zero debt. Okay. That's awesome. And that has given me the control of my most powerful wealth-building tool, which is your income. And it's easy to visualize this.

If you had no payments and you were in control of your money with a written game plan where you're telling every dollar what to do, you could enjoy life and also invest aggressively and not be broke because you make good money that makes sense okay yeah absolutely yeah because your your car payment is is what 800 uh it's about 750 almost like i've done this before yeah okay yeah right all right and so 750 dollars and see if you invest 750 a month from your age until retirement you'll be a millionaire that's awesome that's what i want you got 20 years so you'd be a millionaire and so but but instead you got car payments and no plan, no plan. And you just kind of wander along and go, I got some money saved, but what you did a

good job, 110,000 in the bank, you're way ahead of most people. Right. I mean, that's pretty impressive, but, but you kind of almost, you kind of almost fell into that. Cause it's not like you got some detailed plan going. I'm not picking on you. I just know you. Cause I used to be you.

Is that okay? Yeah, that's that totally fine understandable okay and so what we have taught and what sharon and i did after we went broke is we got on a detailed in-depth plan and we became in charge of the money making every dollar behave sometimes it behaved for generosity sometimes it behaved for investing sometimes it behaved for generosity. Sometimes it behaved for investing. Sometimes it behaved so we could have fun with it. All right? Okay. And so then what we discovered is, again, your most powerful wealth building tool is your income.

So if I woke up in your shoes, what would I do? I would take some of the $110,000 I pay off your car today. Okay. That's what my wife told me. And then I would get your credit cards out, and I'd cut them all up. Okay. And I what my wife told me. And then I would get your credit cards out, and I'd cut them all up. Okay. And I'd pay them off. Even though we use one mainly, and then we usually pay it off at the end of the month.

You know what? If you use a debit card on your checking account, it does everything your credit card will do, and the money comes straight out of your account, so you don't have to pay it off at the end of the month. It already came out. What about the cash back advantage that we get, like the points we earn from it? So far, it's not caused you to be rich. Definitely not. And by the way, brother, they're not your friends,

so they're not hooking you up with free money and flights every time you use their card. They're making their money. You spend more money than you would otherwise because you can just pay it off later. And it's psychological. It's just it's research and it's data and it's data and it's data. We don't tell you to get rid of them because it's fun for us. We just look at the data, man. Yeah.

So when we talk to millionaires and we study researched millionaires, we find that they make every dollar behave. They're in agreement with their spouse. They quit borrowing money, and they invest, and they're generous. And they pay off their house. And then they pay off their house is the next thing. So I'm going to pay off. I'm going to take $110,000 minus $ 110 000 minus 40 which leaves me 70 you make 90 so i'm gonna set

aside out of that 70 30 000 in a separate high yield savings account we're gonna call that your emergency fund and you never touch it even if you have an emergency it's just sitting there for really bad days okay okay okay and then that leaves us about $40,000, doesn't it? It does, yeah. Okay. And do you have children? I do. I have three minors at home.

If anybody's going to college, you're going to need that $40,000. I'm not sure yet. They don't know. They're kind of younger still. Well, let's talk to an investment advisor about setting that aside for them. So you've got an emergency fund. You're debt-free. I've used up your $110,000.

You're going to get on a detailed budget, and you're going to start putting 15% of your household income away in a 401K or Roth IRA. We'll show you how to do every bit of that, Johnny. If you want to do it, I can show you how to do every bit of that, Johnny. If you want to do it, I can show you how to do it. But what we're doing is we're going from I eat everything in sight anytime I want to eat it, and now I'm fat, and I don't want to do that anymore. So now I'm not going to eat everything in sight and be fat. Because I did that.

I ate every donut in a 50-mile radius, Johnny, and I got fat as a hog, just a sloshing hillbilly hog. It was awful and so i had to quit eating everything in sight because it didn't work for me you know and i had to say okay i'm going to actually take care of this body i only got one and your money's the same way you've got to make it behave you can't be disorganized chaotic and impulsive and end up anything but broke and that's that's the thing so the thing. So you really have done some very good things in this process. But, dude, I'm getting ready to send you to boot camp if you want to do this,

and you're going to come out totally fit and wealthy. And if I had a punk rock band, the first thing I would do when this show was over, I would call and say, we're changing our names to the Sloshing Hillbilly Hogs. We would be incredible incredible well battle of the bands names here we go i know i may i may have to change our name that could happen right there sloshing hillbilly hogs didn't even know those existed did you it's it's its own breed, John. Yeah. So I think it's important to call, man. Poor Johnny here was just doing what he was

told to do. Just doing what he was told to do. By everybody out there. By everybody out there. Normal people. I'm going to get my points. I'm going to save some money. I'm going to get a big, super nice truck. You're always going to have a car payment. And I just work my butt off and have nothing.

And it'll kill you, man. You'll feel like a rat in a wheel. Johnny, hang on. I'm going to give you a copy of the book, The Total Money Makeover. The details out the plan I just gave you and shows you exactly what to do. This is The Ramsey Show. Hey, you guys. Health insurance costs are only moving one way, and that way isn't down.

And if higher costs aren't enough, the wait times to see your doctor are longer, and it's harder than ever to get anything approved through the bureaucracy. So if you feel like the system is working against you, try a biblically-based alternative to health insurance. Christian Healthcare Ministries. CHM is a health cost-sharing ministry that's helped hundreds of thousands of families like yours take care of over $11 billion in medical bills since 1981. And CHM has also helped them stay true to their values and avoid miles of red tape. And CHM support goes far beyond meeting financial needs.

They'll also help meet spiritual needs. Members become part of a family who will pray with them and for them when they experience a medical event. So listen, y'all, there's no better way to take care of healthcare costs. CHM programs start as low as $98 a month. So learn more today and join at chministries.org slash budget at chministries.org slash budget. Dr. John Deloney, Ramsey Personality, is my co-host

today. Thank you for joining us. Hey guys, how many of you are thinking about buying a house, but you're cringing when you think about the debt for the rest of your life? A 30-year mortgage is not your only option. You don't have to fall in that trap. You can borrow, and if you're going to do it, we don't recommend any more than a 15-year fixed rate. It'll get you on track to pay off your house fast, and you pay a ton less interest.

Of course, the monthly payment is higher and scares people off, but you know what? Buy a little less house. You don, the monthly payment is higher and scares people off, but you know what? Buy a little less house. You don't have to be intimidated. The free mortgage calculator on our website can help. It'll give you an idea of what your monthly payments would look like, could look like, should look like. That way, you'll know how much home you can afford, so you can be mortgage free in 15 years or sooner. RamseySolutions.com. Click free tools, and you can use the mortgage calculator and get confident about buying a home. Click free tools, RamseySolutions.com.

Minnesota is next, and Devin is with us. Where is Alexandria, Minnesota, Devin? About an hour and a half northwest of St. Paul, Minnesota. Ah, cool. Okay. Hey, did you hear the Vikings paid off their stadium? Yeah, with the tobacco tax, I'm not surprised. Okay, cool.

How can we help? I've got a 2015 Dodge Charger, and I owe $15,200 on it. It is valued right around $8,000. I make $65,000 a year, sole income from my household. With bills and everything, I'm right around $3,600 a month. I make about $3,800 a month.

How do I get out of this car? You make how much a year? I'm salaried at $65, much a year i'm salaried at 65 000 a year my at home takes right around 3800 what in the world is coming out of your check before it gets home at 3600 that's how they paid off the stadium dave that's right no really no no i mean you don't have three thousand dollars a month is coming out of your check where's it going uh i pay taxes and then i guess i really haven't broke it down other than i pay some child support out of your check yep pay two hundred dollars a month for child support 200 a month before you get the check? Yes. Are your wages being garnished for back pay?

No. Okay. Are you paying... Okay. Did you get a huge tax refund last year? Yes, we did. I've been listening to your show for a few months. How much was your huge tax refund? $18,000.

Okay. I found it. Okay. Because I couldn't find the $2,000 a month, an $18,000 tax return. Okay. So here's how we fix your car problem. We go in tomorrow and change your W-2 withholding on your check by $1,500 a month. And that will mean you get zero tax refund because $18,000 divided by 12 is $1,500.

Okay? So you're going to bring home $1,500 a month more and pay all of that on the car, and in 10 on the car, and in 10 months the car will be paid off. That makes sense. Ta-da! $18,000. That is why I called.

So the moral of the story, Devin, is a tax refund is not a gift from Santa Claus. He does not live in Washington, D.C. The reason you're getting a refund is you had $1,500 a month too much taken out of your check, and it sits in Washington with no interest at the IRS all year, and then they send it back to you in April after you file your taxes, and you think they did you a favor. It was your money all along. And so all I'm doing is putting your money back to work for you.

Folks, you should never get a tax refund. You should always adjust your tax withholding to where you don't owe any, but you also don't get a refund. $100 one way or the other is the most it ought to be off. You got to pay $100 extra out of your withholding or you got to get a $100 refund. But you don't need to be getting big refunds. And sure it is not a blessing i'm old i have been around i personally know santa claus and he does not live in washington dc that's not where he comes from though there are some old people in washington dc there are some people desperate to remain in Washington, D.C. that are old.

I mean, it's scary how the mummification process in that town is pretty amazing. Yeah, I think they put embalming fluid in some of the local beers. Well, or you can buy it by the gallon at the local plastic surgeon. I'm not sure which. All right, James is with us in Chicago. Hi, James, what's up? Hey, guys, thanks for taking my call sure how can we help i'm so i'm selling my current home and i'm scheduled to close this month actually um i'm also getting married in the next month and i'm building a home yeah and you're building a home in the south yep at the

same time good lord lots of life yeah so we're also building a home in the southeast At the same time. Good Lord. Lots of life. Yeah. So we're also building a home in the Southeast at the same time, which will be where we'll be starting our family. So we're actually waiting for that to finish up before we move. Um, and then, but so what I'm trying to figure out is between my savings and the profit from the current place that I'm selling, I'm trying to determine how much I should put down on the new home. Cause I have quite a bit and I'm kind of trying to go back and forth between some of the things you say and throwing as much as I can at the house and trying to make that debt-free as soon as possible or taking some of that money and putting it with my financial advisor for them to invest it.

Yes. Well, here's the thing. I mean, so you already told me what I'm going to say. There's a decent amount of a gap, though,'s the thing. I mean, so you already told me what I'm going to say. There's a decent amount of a gap, though, is the thing. No, it's not. No, it's not. You know exactly what we say. You were very clear on that.

So all you've got to decide, James, is which of these methods you think has the highest probability of building wealth. Okay? Getting your house paid off as soon as possible or borrowing on your house to place the money with your financial advisor. Because effectively, by not putting the money down on the house, you have borrowed on the house to put the money with the financial advisor. You understand that, correct and so if you had a paid for house would you go borrow on it to put money with your financial advisor because that's so smart that you're going to get rich that way obviously and obviously you know i don't think that yeah and to your point i think

my point of view is i i think that being debt-free as soon as possible, I think if you take the number of years, I'll say 10 years from now, I think the same amount of money probably goes into the market just once I'm as close to being debt-free that I'll be much more aggressive, but I'll still have probably a $250,000 to $300,000 mortgage that I'll have to pay off because it's not a cheap house, let's put it that way. How old are you? 30. Okay.

Well, I mean, obviously, James, you can do whatever you want. You're like a 30-year-old man. So, I mean, do whatever you want. Do whatever you want. Let me tell you that you're wrong, and you called here to ask. And so the data tells us when we talk to millionaires, we talk to 10,167 of them, and we did detailed in-depth research, the largest study of millionaires ever done in North America, the number of millionaires that we talked to that said the reason I'm a millionaire is I borrowed as much as I could on my house,

I limited how much I put down on my house so that I could put the money with my financial advisor in the market sooner. And I carried a mortgage that was the net essence of this so that I had more money in the market. And that money in the market and leveraging and using my personal residence as a way to get rich caused me to become a millionaire. The number of millionaires that said that was precisely zero, James sure and here's my promise here's my promise so you go with your plan or you go with theirs my promise to you james is this you're the guy who sold the house got married and tried to build a house in the same month good for you you're a hustler you always have a scheme and you always got a plan and a plan and then a plan on top of that plan. That money that you think is going to be in the market in 10 years won't because your buddy in your new place will have talked you into real estate properties.

You own a couple of duplexes because you sell it on Instagram. That money won't be there. Pay your house off and be free, my brother, and then you can invest whatever you want. Quit looking for a shortcut. Be free. The fastest way to get rich quick is don't. This is The Ramsey Show. Dr. John Deloney, Ramsey Personality, is my co-host today.

Open phones at 888-825-5225 thank you for joining us america hey if uh we all have people who tune in every episode on this show right you know we have people to do that like it's a little shocking to me but they do and we're happy for you we're glad you do and we're thankful for you being there but some people listen all the time and they still feel stressed like you know what to do but you want me to tell you to sell the car this is silly okay you don't have to do this knowing what to do with your money isn't the problem doing it is the thing personal finance is 80 behavior only 20 had knowledge and the proven way to change your behavior with money is by taking a financial peace

university class the class is the difference between trying to get in shape on your own versus hiring a personal trainer. You'll have a coordinator that holds you accountable, encourages you, other people in the class pushing you and cheering you on. This is why the class has worked for over 10 million people. And after nine weeks, you will never handle money the same way again. You will make progress faster than ever. Don't just listen to the show.

Commit to doing what it takes to win. Join an FPU class at ramseysolutions.com slash FPU. ramseysolutions.com slash FPU. Terry is in Charlotte. Hi, Terry. Welcome to the Ramsey Show. Thank you for taking my call, and thank you for what you do, sir. Sure. How can we help? I want to know what i need to do with a pension plan for when i work for the state of north carolina and um i'm 50 years old so i can start drawing the actual pension if i need to but i'm in the private sector now so i don't plan on going back to the state but they'll pay me a one-time payout of $126,000 if I take the one-time payout, or I could start drawing

now for the rest of my life $2,600 a month. Or if I set it where I collect or my wife collects, where as long as either one of us lives, it'll decrease it by $180, so it'll pay $2,420 for as long as either one of us lives. And she's 40 years old. Or just for the fun of it, I ran the numbers, and I could put my son, who's three years old, in, and they'll pay $2,270 as long as me or him lives. Well, which way do I go with that? Well, there's a thing called the time value of money

would you rather have ten thousand dollars today or would you rather have ten thousand dollars 15 years from now and the answer of course is today why because you could invest it and it would be worth a whole lot more than ten thousand,000 15 years from now. So the $2,200 that the 3-year-old will receive after your death is not $2,200. It's $2. You follow me? Because it's so far out into the future that it doesn't create any real money. So because of the time value of money. Now, the normal answer to the equation on this is take the lump sum and roll it

to an ira in good growth stock mutual funds now in your case the payout on this is so high it's a very good payout if you don't do that that you probably won't make as much per month. Okay? So if you make – The state to keep it sovereign – the state to keep this program sovereign, if I take the payout, I only get the money I paid in. If the money that the state pays into the pension, I only get that if I take the payout, and that's what makes the payout so much better. Yeah, I know.

But, yeah, the payout – the solvent is the word you're looking for. But, yeah, the – but still, so if you take 100 – you said $130,000 is the payout, the lump sum, right? $126,000. $126,000. Okay. So 10% will be $12,000 a year, $1,000 a month, half If you made 12% on your money. Or 10% on your money. So you're going to make half on the payout, which is unusual.

But that's because of what you're talking about, the state's match portion. They're not offering you on the lump sum. Is there a point later that the lump sum is better? No, it doesn't get better. If I wait until I'm 60 to draw it, they'll pay me $3,200 a month, or if I wait until I'm 65, they'll pay me $3,600 a month.

I wouldn't do that. I would take the draw now if you're going to take the draw. So here's what I'm going to recommend. I would sit down with a good investment professional, click SmartVestor at RamseySolutions.com. You can find who we recommend in your area, the SmartVestor pros,

and let them crunch these numbers with you and show you what you're dealing with. Because basically, if you took it and rolled it to an IRA today and you were to start drawing on it today, which you couldn't do, but you would draw about half of what you would get if you just start taking their draw, which is a lot different, okay? However, in depending on which scenario you choose someday, when someone dies,

this pension goes away. The $126,000 in your name is always in your name, regardless of who dies when. So it would go to your wife. It would go to your kid. It would go to your grandkid. It would go to wherever it's now in your name. You don't lose it.

But with a pension, when you die, or if you've got the extensions when someone dies it's gone it goes poof okay so you got a so there's 126 000 swing not going poof that also goes into the mathematics it's not just the monthly compared to the monthly. Because if you leave it, for instance, let's just say you leave it just for your name and you take the full payout just for Terry, okay? Terry dies. The thing goes poof, right? Right. So, yes, you got an extra $1,000 a month, but, yes, you lost $126,000 on your death.

Do I take the $2,600 and then use part of that money to go buy life insurance? Yeah, that's what you can do. You could go the other direction and that that would back fund it that's exactly the right plan so i think that's why i want you to sit down with someone who's not sitting on the radio trying to figure this out in my head and work this with them because what you've got is a very unusual thing because the state 99 of the time i get this, the payout is less than you would get if you invested it, your, the lump sum yourself, because most pensions are calculated on a 7% rate of return, and you can make 11, 12% in the, in a good growth stock mutual fund. So you're going to whip your pension on terms of rate of return and you get more per month and more if you die so it almost

always makes sense to take the lump sum and roll it in your case what's happening is the state you're losing the state subsidy of it and so that's doubling the payout if you take the monthly thing so they're really pushing you to do the monthly thing they don't want you to cash it out that math is telling us that so sit down with a smart investor pro and crunch the numbers and either backfill it with life insurance and take the full pay. I would take the full pay just in your name and then backfill for your kid and your wife with life insurance if you want to buy some term insurance. And then reinvest some of that money. Don't just consume it all. You know, if you reinvested

all of it now you got a really good plan it's real fast 2200 a month it's going to become 126,000 in an investment real fast yeah just putting the math looks like it's gonna be about five five and a half years yeah to catch that catch back up does that include uh rate of return that's just no that's just cash a month that's just by piling up the cash at zero yeah interest yeah yeah so it's about a three-year should be about three-year turn really yeah and so yeah that that's the uh but but for those of you listening if you get the opportunity to take a lump sum payout on your pension almost always because of it going poof on your death you come out better off your family comes out better off and you better off by rolling it

to an ira in good growth stock mutual funds there's no taxes on it that way and then uh and it does and it grows at a greater rate and you don't lose it all when you die i had never thought of this but i can i've been concerned about the solvency of pension plans especially city and like municipalities some serious trouble i hadn't thought about this as a clever out for them, which is going to strongly discourage. It's just going to kick the can down the road, but it's going to strongly discourage people from taking a lump and walking away. Well, I mean, think about what it does to a fund's numbers

if you're paying out $2,200 instead of $126,000. Yeah. You can get your annual bonus. You can go a long time. So, yeah, it helps keep them liquid and helps keep them stable on the balance sheet side. Love it. Love it.

This is The Ramsey Show. Dr. John Deloney, Ramsey personality, is my co-host today. Open phones at 888-825-5225. Daniel's in Pensacola. Hi, Daniel. How are you? Hey, Dave. How are you doing?

Better than I deserve. How can I help? All right. So I got a quick question. So I get to the point here. I'm in the military. I served in the Navy in here, Pensacola. I've been in for about 15 years.

And I have a unique situation, but I just don't know how to go about it. I want to be intense, but I want to be intense in the right direction. So we just started the baby steps, and me and my wife, and after a few months, I've got her on board. We're both heading in the right direction and trying to knock off debt and things like that. And I'm trying to find ways to lower expenses and increase income. And we've got the expenses down as low as we can. I'm trying to find ways to keep doing that. So now I'm thinking, okay, how can I make more money?

For obviously, I'm in the military, so making rank is one big one. And I'm hoping to pick up chief this year. That'll be a big, big increase in pay for me. But in the meantime, I was saying, those results don't come out until August. So I'm like, okay, I need to pick up another job because I have a lot of free time here. I'm in short duty.

I'm currently in school, and I've considered getting out of school or stopping school temporarily. What are you studying? A second job. Accounting. I'm going to school for an accounting. Why? Because once I leave the military, I'm retiring five years from the military,

and I'm going to pursue being a CPA. Good. Good plan. The Navy's paying for all of that right now, and that's what I want to do when I get out. And so your question is quitting school? Yes, to pick up a second job. No. No.

Stay in school, brother. It's free. Go get it. It's free. It's a good degree. Don't give up the long term for the short term. If you can give up the short term for the long term, that's always a good trade. How much do you owe, brother?

We're about 80 grand in debt right now. Is it just haunting you? What do you owe the money on? It is. Some credit cards which I cut up and a truck payment.

We have one paid off car and one truck. What do you owe on the truck? It's at 49 and I looked into selling it to get rid of it and we can get about maybe 37 on it and I was so frustrated because I was getting ready to get rid of it. No, I think you can get more than that. I think that was trade-in

value that CarMax offered you and I think you can sell that truck for 40 and you need to sell it. Go down to a credit union and get a loan on the difference, and you cut your debt from owing $50,000 to $41,000. No, it was $80,000, wasn't it? $80,000.

Yeah, $80,000. Sorry, yeah. You get rid of half your debt, over half your debt. And, yeah, definitely do that. That would be a big relief. Yeah, absolutely. Okay. And then you keep working on it.

The accounting is your long play. It was a good long play. Right, because I'm retiring in five years.. The accounting is your long play. It was a good long play. Right, because I'm retiring in five years. Yeah, it's your long play. Don't destroy the long play for a short-term gain. That's – no, don't do that. I appreciate your hustle, man. You're turning over every rock you got.

Yeah, you're thinking with the right level of urgency, and I appreciate that for sure. I agree with John. Yeah, that's not the way to go. I agree with John. Um, yeah, that, that's, that's not the way to go. I'd get rid of the truck. I'd make chief and I keep working on your accounting degree and you're going to plow on through this. So what is your household income today? Um, so my wife has gone on board and helped, he's been helping me out by myself. I bring in roughly 75,000 a year. And what are you going to, how much of a bump do you get? How

many thousand a year extra do you get if you make chief in August? It's going to be roughly five to 600 a month. So six or 8,000 a year. Okay. Yeah. Pretty cool. And what does your wife do? My wife, she homeschooled my children at home,

but she did pick up a gig to stay close by in the neighborhood, and she's been helping me bring in about $1,500, $1,800 a month, nannying for military wives or for military couples around our area who need the nannying jobs next to our neighbors, across the street. She's got people all in the neighborhood, and I'm like, wow, nice work. So she's been helping out with bringing some extra cash in. i'm wading into um treacherous waters here so youtube people keep your comments to yourself but brother if i was going to make a sacrifice right now i might consider putting my kids in a local school and my wife working full-time and let's squash this

thing in 12 months and be done sell the truck for sure sell the truck make go get a full-time job put the kids in a local school and then let's reconvene in 12 months because you'll have cut your debt almost in half by selling this truck and then between your eighty thousand dollars you're going to pick up you pick up that extra money in a few months man plus she's making 35 to 45 to 50 $45,000 to $50,000. Man, you can get this stuff knocked out quick. That'd be a short play. Wouldn't be a long play.

But yeah, thank you for your service, by the way. If you don't do that and she keeps nannying and picks up more and kicks it from $18,000 a year up to $25,000 a year, that'd be a big help. You make chief, that adds another $6,000 or $8,000. That's a big help. And you get rid of the truck $6,000 or $8,000. That's a big help. And you get rid of the truck, boom. You're going to be done in 12 months. So if you really continue to lean into this.

And what I most appreciate about your question and your approach, Daniel, is you're actually thinking about this and you're willing to do just about anything. And there's an importance in the military. Berserker mode is good, but you've got to be wise about calling berserker, man. Don't go so bananas that in seven months you've just created a quagmire. Yeah. You're getting there, man. Good for you.

Get you into a mess, a mess, a mess, a mess. Davis is with us in Grand Junction, Colorado. Hi, Davis. How are you? Good. It's Dave. What's up? It's a quick question.

So we have a paid-for condo that we're living in right now. We purchased another house, and we're going to be moving into it in the next month. Excuse me. And then we're wondering if we should pay or sell the condo to put on the mortgage as a new house or keep it as a vehicle rental. Yes. You should sell the condo. You know how I did that so fast?

If you were sitting in your house one day and you said, I'm going to go borrow more on my current residence to buy a rental condo, you would never do that. No, sir. Same difference. Just reverse the process okay yeah i don't mind rentals i don't pay but i pay cash for them after my after my residence is paid for so you're sitting on a paid for house or a largely paid for house you don't go borrow

money against it and buy rentals don't you that would be dumb even if you pay cash for the rental because you borrowed on the house it's not cash but displaced debt but yeah replaced no dave but instagram says i have to have a rental home or i'll be poor forever tiktok says that you can have 57 million dollars of rental homes and be 26 and have no mortgage debt or you don't have to pay a penny no because the renters pay everything because renters always pay right on time and they never tear up anything and there's never been such thing as a one to two year pause on people having to pay heating and air unit on the rental house never goes out. And roofs are perfect. Especially if it's an Airbnb, because we all know that if you're on Tic Tac, that you're doing Airbnbs. Because everyone knows this is what rich people do. You guys are hearing the sarcasm font, right?

It's frustrating, man. Here's what's frustrating. It's predatory. get rich quick is human nature there's been a version of it for 35 years i've been doing this show there's always someone pitching get rich quick of some kind somewhere and uh new digital methodologies and social medias only give it a new place for this cancer to grow. And it just doesn't work. It just doesn't work, boys and girls. There used to just be that one person at your church

that chased you around trying to get you to join in. Now, if you click on it a few times, that's all you will see all day, every day, 24-7, 365, until you find the cave. Hey, listen, start watching cute dogs on Instagram. And the more you watch it, the more it'll feed watching cute dogs on instagram and the more you watch it the more it'll feed you cute dogs it's better than watching nothing down real estate morons you know what i'm going to talk to a buddy who's a researcher i want him to run that study just i want to get 100 people

that just watch cute dogs that's all they are allowed to look on there's some funny dogs real funny yeah once you watch one they'll send you another one and once you watch one moron on nothing done real estate they'll send you two more morons on nothing done real estate in case you're wondering there is moments when we're walking through ramsey solutions building and dave's in the corner just laughing to himself scrolling cute dogs a little dog photo that's it you know that's happening y'all can just see that can't you? This is The Ramsey Show. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.