The Ramsey Show - App - We Paid More for Our House Than We Wanted To Spend (Hour 1)

Episode Date: August 17, 2021

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Thank you very much. Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I am Dave Ramsey, your host. This is your show, America. Common sense for your dollars and cents. Open phones at 888-825-5225. Having done this show now for 25 plus years, coming up on 30 years,

I have been amazingly blessed to get to meet some of the more iconic people in this wonderful town of Nashville that I live in, and I've gotten to call many of them friends. And so we had some of that happen today. Some of our friends have dropped in. The iconic group, the Isaacs. If you don't know who the Isaacs are, they are in the Gospel Music Hall of Fame. Last week, our friend Ricky Skaggs invited them to join the Grand Ole Opry, and they have sold millions and millions of articles, and they've got their 52nd GMA Dove nomination for their 2020 album, Songs of the Times, just yesterday, as a matter of fact. And a couple of the Isaacs, we couldn't get everybody in here, and it kind of was a little

bit of a family feud as to who got to come on. It sure was but uh we were hanging out at john rich's the other night uh for the uh candace owen and ben shapiro are kind of come to nashville he had an event welcome welcoming them and you guys got up you ladies got up and sang with your brother and it's just absolutely amazing as always and we got to talking there and then we that led to us saying hey they have a new album coming out let's talk about it so thanks for coming by so uh becky and sonja are with us of the isaacs welcome thank you so much we're honored to be here we love you so we love you guys we're so glad to have you very cool stuff so um the album came out yesterday and you guys are this i keep calling you guys but most of your

ladies but you are are traditionally gospel. That's what we all know you for in Nashville. But the album is charting on the country. Yes. So this album is actually not a gospel record. It's the first album the Isaacs have ever released that's not gospel. It is, I mean, they're great songs, life songs, love songs, story songs. And we've always included those type of songs on our records in the past,

and we've always done things like the Grand Ole Opry and other secular venues. But this is the first time we've ever done a whole album of just those type of songs. And so it really does have a place in that secular market and the country market. And so we were surprised when this weekend we were watching the numbers, and it ticked on up to number seven in the country download charts in all of iTunes. And number 20 in all genres of music. Wow. So that's pretty exciting for a little local group.

Yeah, a little local group. Yeah, she says, unbelievable. The American Face is the album. It was released August 13. It's a 12-song collection split between new material, classic covers, bluegrass country, rhythm and blues folk contemporary which you got you can sing anything i mean you it's not your first ride on this cabbage truck so you can you guys can put together a harmony on almost anything so i'm not surprised

to see the crossover here and and the success with it very very strong so your mom lily is a great american story yes she is we are living American dream, and it all began with her. Her parents are both Polish-Jewish Holocaust survivors, and they were in the camps in Poland and Germany. She was born in a French Army relief camp in Germany after my grandparents were liberated from the Holocaust. And they moved to America when she was 2 years old, and she became an American citizen via Ellis America when she was two years old, and she became

an American citizen via Ellis Island when she was nine years old. And, you know, she had a hard life. Her parents started over here with nothing, and they built a life working hard and believing in the American dream. And she never would have dreamed all those years ago that she'd be singing gospel music for most of her life, and then asked to be members of the Grand Ole Opry. No one could have ever anticipated that sort of a life for her, but she is an amazing woman. Yes, she is. Always fun to talk to Lily. She's got some stories now.

She wanted to be here, but I kind of like, Mom, I'm the baby, so I had to pull the baby cart today. Oh, okay. Well, she's here. She's in the studio. She's getting to hear us brag on her, so it's good. So 35 years ago, the Isaacs were started. Actually, she's here. She's in the studio. She's getting to hear us brag on her, so it's good. So 35 years ago, the Isaacs were started. Actually, 50 years ago. 50 years ago.

Yeah, they probably need to update that bio. Mom and Dad started singing 50 years ago. Our dad's the baby child of 17 children. Wow. His parents were Pentecostal preachers. His father was a preacher. They were farmers back in the hills and the hollers of eastern Kentucky. Oh. And it was music that brought Mom and dad together in New York City, Gertie's Folk City in Greenwich Village,

where a lot of people were discovered, like Peter, Paul, and Mary, and different ones. And so dad was singing bluegrass, mom was singing folk rock music, and they were at the same time. Comes out of a Pentecostal family, ends up on the hippie scene? Right. Right. This is fun.

Yeah. There's got to be a little story here our mom thought he was jewish with a name like isaac isaac's how can you not think that he was not jewish he's a good jewish boy he didn't bother to tell her any different until she'd already fallen in love with him so they so they you know they were in new york singing together and then my my dad's brother his closest in, was killed in a car accident. And so after that, they both went to his funeral service, which was at a church, and they both opened their hearts to receive the Lord.

And that was the beginning of the Isaacs 50 years ago. Fifty years they've been singing. That's pretty impressive. And, of course, Ben, your brother, sings with you all now. He aggravates and sings with us aggravates the bass as a musician would leave the band the isaacs are the original isaacs our parents um mom and dad would see the talent in us they would set an instrument in the in the living room and dare us to touch it and that's how we learn how to play music and uh you know dad would put a bass in ben's hand and next thing you know when the bass player left ben would step up. Sonia started playing mandolin

when she was nine and I was eleven when I started playing the guitar and so we've just slowly become who we are but you can see the influence of the bluegrass side of our father and the folky rock side the hippie movement of our mom which explains a lot about this record. We've done

a lot of records in the past that have honored the bluegrass side of our father. But this record kind of leans a little bit more towards that Americana folky style. And, you know,

we give our mom a hard time. She still has the feathers. She kept those. And she was at Shea Stadium for the first time when the Beatles performed. She went to Woodstock. Yeah, Woodstock.

We don't talk about that. We ask her, she still remembers Woodstock. But, yeah, we're just like a, we've been called the little gospel chipmunks. We've been called kosher gospel chip monks we've been

called uh kosher hillbillies uh jubilees jubilees Hebrews we're all mixed up I'm a year younger than her and my brother's three years older than me so from the moment we could talk we could sing harmony full part harmony so um yeah we were cheap labor that's right mom put you to work but you'll have to you to bring that up you had to pay them but you'll have to you'll really appreciate this from the time i've been a child i had the envelope program that you talk about and i would write down what it is and i would put the cash in there and by the time i got married and so i still i still do some of your amazing uh most of what you talk about so well i'm honored all right sonja and becky isaacs the new album is the american

face it released last week charting already on the country charts again uh 52nd dove nomination gospel music hall of fame and last week inducted into the grand old opry so i want to fire this tune before we run up on the break so the audience gets to hear it this is one of the singles from the album. Fire it up, friend. We're Polaroid pictures in a shoebox Sons and daughters of the baby boom we are needle on the vinyl intoxicated on our toes we are pilgrims and minute men

pacifists and veterans scotch irish to the carolines sailing New York Harbor all the way through Ellis Island Colonel Sanders, Southern Granders And Caduto Denders Your story, my story, oh glory Folks, listen up.

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You jump in. We'll talk about your life and your money. Max is going to start off this hour in Knoxville. Hey, Max, welcome to the Ramsey Show. Hey, Dave. Thanks for having me. Certainly. How can I help?

Well, you know, wife, we're looking to sell our farm. We're coming up here in a short time and with our expected uh conservative numbers projected to profit after we pay off the mortgage on it and the capital gains uh is going to be around 550 000 maybe 600 000 i hate it when that happens yeah wow yeah it's a good problem to have so So our question is, what should we look to do? We're working our way through the baby steps, 4, 5, 6, with our kids, college funds, et cetera, and retirements. We've already maxed out the retirements for this year. And we have 529 plans, but only have about $5,000 in each of the three plans for each of our three young children.

But our idea was maybe to front load those 529 plans off the bat and get that done on the front end so we don't have to contribute anymore. Yeah, I like that. One less thing to worry about, right? Yeah. more yeah i like that one less thing to worry about right yeah um what is a projected we were looking you know that their colleges in roughly 16 years from now we're looking maybe um a target of say 150 000 each kid uh when they get to that age uh is that a where do you get your projected numbers from of what college may or may not be? Well, of course, God only knows, right? I mean, there's no way to know.

The inflation rate is about 12% on tuition. I'm sorry, about 7% on tuition. The inflation rate on everything else runs average about 4%. So if you want to use a 7% inflation rate, you've got about a $12,000, $10,000 average in-state school tuition right now. You could run that out. So it's $40,000 right now plus room and board plus 7% inflation rate. And you can sit down with your financial advisor and project that for the number of years you've got left and then do front load those.

But it won't take $10,000 or $15,000 out of this $500,000. You've still got a lot of money left after you do that. Okay. And then the only debt we have left on us is our home mortgage, in which we owe roughly $600,000 on that. Yeah. What's your household income? $300,000 a year. Yeah. What's your household income? $300,000 a year.

Man, you're just killing it. Way to go, dude. This is all good news all around. Yeah, very blessed. Yeah. Very blessed, for sure. I love the idea of you paying off this house. I mean, you're saying the kids got 16 more years before they head to college?

Correct. I mean, with that kind of income, you've got 16 years to invest. I don't see anything wrong with paying off the house. It sounds like you could do it once you sell the farm. Would you have enough? Yes, we would have enough. I mean, if we took just the conservative numbers of what we think will profit after this, we could definitely just pay off just the house.

I have other taxable accounts if needed, you know, we could draw some money out of, but we were more of longer, just monthly checks, we would just finish whatever's needed. Yeah. So because your income is so ridiculously wonderful, I'd write a check. I'm with George. I'd write a check out of the form, pay off the house. That puts you at baby step seven.

You have addressed baby step five. I'm not skipping a baby step because you've got money in there for college. Then you just take $10,000, $20,000 out of your income, and you can still front load over the next few months or six months or something, decide to front load those $529,000 plans the rest of the way. So sit down with your smart investor pro or your advisor, calculate what you need to take out of your $300,000 income and do that. And I'm with George now that we got a little deeper into this.

Yeah, let's pay off that house. I mean, just if the kids are half as smart as you are, I think they're going to be just fine and it's going to come down to college choice and what their dreams are. But you guys have so much time ahead of you and you've done so well. I love the idea of you not having a house payment and making 300 grand. The kids are going to school debt free. I'm just going to say it right now. I'm worried about it yeah yeah i think you're going to be okay because you're going to have plenty of money even if it's not in the 529 plan you're going to be

very very wealthy uh with this income and no debt payments at all and you're obvious bent towards doing things on purpose with money that's that's a big deal here and so very well done man touchdown congratulations this is very very cool i'm impressed you know when you said that it made That's a big deal here. And so very well done, man. Touchdown. Congratulations. This is very, very cool. I'm impressed. You know, when you said that, it made me laugh. I hadn't thought about this guy in 20 years, but I knew this old guy, and he was kind of an old, you know, when you get old,

you either get happier or grouchier. And this guy was the grouchy one, right? Oh, boy. And he's like, Ramsey, I'm trying to make so much money that no matter how dumb my kids are they can't spend through it and i'm discovering that it's not possible that's what i thought of when you said that's good half they're half as smart as you that's all you need you can't make enough money to outspend really truly stupid children we know the story of the prodigal son dave. You know, you can spend a lot of money

really quickly if you're dumb enough. Alright, Dawn is with us. Dawn's in Indianapolis. Hi, Dawn, how are you? Hey, I'm doing great. Thanks for taking my call. Sure, what's up? I'm going to be 50 next week, and I'm just really struggling with the state of the world and the division

and how to navigate, you know, I'm working part-time, working on the side. I've chosen to be unvaccinated as a personal choice. I just feel like the world is closing in. I'm on every dollar. I've been following you for four years. I was very hardcore. And the last 18 months ago, I went through a divorce because of financial infidelity.

Blowing about stuff. I thought we were paying off things, and we weren't. So I kind of had to catch my breath, and I started doing day dish. And I'm just, I almost feel like I only have $16,000 of debt, but I almost feel like I just want to, like, start saving my money and just feel like there's some peace in the world. I don't know. So I just wanted some encouragement or to get some advice. It's not peace in the world that's the problem. It's peace in you.

Okay. You got hammered, girl. You got hurt. And, you know, listening to you, it sounds like you're emotionally holding your breath like you're just trying to hold on and just not cry um and i've been there i know how it feels um but you've been through personal emotional trauma this year i have but i'm strong i know're strong. I wasn't accusing you of collapsing. I was just accusing you of being human.

But I feel like I should go out and get, like, another job or do some stuff, and this part of me just wants to stay home and just get this debt paid off and just, I don't know. So why don't you put yourself on a plan that has a more reasonable pace and gives you some margin to heal because you're wounded? Would that be okay? Would that be okay? Absolutely. Let's just take your Supergirl cape off and hang it up in the closet for a minute.

Okay. And let's just go okay i'm gonna take a year and breathe because i've just been through hell you guys were married a long time weren't you we did and we were i thought we were almost to the end of our plan and we paid off over 120 000 worth debt, only to find out that we didn't, and there was $60,000 that I had to divorce and split and take with me. Yeah, you'll be okay, though. You know how to do this.

It's having the gas in your tank to do it. Right? That's true, yes. How long were you married? 20 plus? Yes, 23. Yeah. I mean, as our friend Dr. John Deloney says it, you need to take a little time and grieve this. What do you think, George?

Absolutely, Don. And you said you're turning 50, right? I am, yes. You're 50 years young. I think you ought to have one hellacious birthday party. You need to party, Don. You've got a lot of life ahead of you. You're 50 years young. I think you ought to have one hellacious birthday party. You need to party, Don. You got a lot of life ahead of you. You're just getting started.

It's halftime. Start dreaming again. Get some big balloons. It's halftime. Throw a fit. Stir up a ruckus. Give yourself a little time, kiddo. You're going to be all right.

This is the Ramsey personality is my co-host today in the lobby of Ramsey Solutions on the debt-free stage. Alec and Carolyn are with us. Hey, guys, how are you? Good. How are you? How are you? Better than I deserve. Welcome. Where do you guys live? We're from Pittsburgh. All right. Welcome to Nashville and all the way down here to do a debt-free screen. Absolutely.

Very cool. How much did you pay off? We paid off about $63,000. Good. It was 16 months. 16 months. And your range of income during that time? Yeah. When we started, our income was about $75,000. And then by the time we paid our debt off, our income's gone up to close to $90,000. But that doesn't include any of our side hustles.

Oh, okay. What do you all do for a living? I work for a distributor of air compressors. I'm a school teacher. Awesome. What was the most lucrative side hustle? I have two that are pretty good. In college, I detailed cars at a dealership,

and that taught me a lot about just detailing and that kind of stuff, both kind of a nice business doing that. And then I also have been very fortunate to be an ice hockey coach for little kids for a youth hockey program in Pittsburgh, and that's been very, very helpful. That's a paid gig? Oh, yeah. Yeah, it's like a AAA travel organization. They didn't pay me when I did it.

The parents just bitched at me. Yeah, it's awesome. I'm very, very fortunate. Awesome. Wow. Very cool. Good for you guys. That's neat. All right. So what kind of debt was the $63, very fortunate. Awesome. Wow. Very cool. Good for you guys. That's neat.

All right. So what kind of debt was the $63,000? It was mostly me. I had a car, a cell phone, and my student loans. All right. I had a little bit left on my student loans. Yeah. How long have you all been married?

We got married in June of 2020, so a little over a year. Oh, okay. So you started this before marriage. Yeah. We started in, I think, like March of 2020. I think we had our first two classes right before the pandemic hit. Straight into pandemic. Yeah, so we had the rest of our class over Zoom during the pandemic.

Your engagement was during the pandemic. Yeah, it sure was. Oh, gross. This is harsh. But you made it. We did. 63,000. 16 months. You guys went hard

after this. What was the switch where you guys went, nah, we're not going to fool around with this anymore? That was Carolyn. That was her family member. She asked me, and we got engaged in December of 2019, and she asked me, she said, hey, I think that we should take this class together. And money was just never something talked about when I was a kid in my

house. We just never came up. And I was kind of like, yeah, okay, maybe we'll see. And then I remember I was working on a car with her dad, and he kind of looked at me and said, so you're going to be at that class Monday, right? I was like, wow. Future father-in-law says it too. You kind of perk up like, oh, yeah. Touchdown, dad!

You're right. I like it. So I was like, yep, absolutely, we did it. And then, I mean, I was just awestruck by some of the things you said in the first class. Wow. A lot of the things that you said I heard thrown around my house when I was a kid, you know, like how much down, how much a month, and I was really tuned in from there on out. And we just went gazelle and tens ever since.

Wow. So, Carolyn, it sounds like you grew up a financial peace baby. A little bit. A little bit. Mom and Dad were already into this stuff. Yeah, they took the class, and then they actually taught our class, so. Oh, that's cool. Yeah. Oh, you're going to be at the class Monday

that I'm teaching. Yeah, that made it a little bit more interesting. There's a whole, yeah, I'm taking roll, by the way. I got him back, because we went around the table and said why we were there in our first class, and my reason was my crazy father-in-law, future father-in-law, said I-in-law said I should be here,

and nobody in the room knew it was him except the three of us. Oh, that's great. So you had a nice little moment. I love that. That's great. You might as well have some fun with it. Absolutely. That's awesome.

But it didn't take long. You just had never been exposed to these ideas, and the first class you went, oh, yeah. Yeah, yeah, yeah, absolutely. Like you said, poor people ask how much not how much month right if you can't afford something you can't buy it save up for it be patient be mature and you'll get you'll get there so that really resonated with me and uh yeah i just i can't believe we're here doing this it's pretty cool that's pretty cool well i'm so excited for you what a great way to go through your engagement

oh yeah and to then enter in and finish. And Carolyn finishes up, helps him finish up getting it paid off. And mom and dad are cheering you on along the way. Way to go. If you get married during COVID, nothing's stopping you guys. They've already been through the worst. They didn't just get married. They got married, went to the father-in-law's FPU class and got out of debt.

That's like a threesome. You can do hard things. Going to the father-in-law's FPU class is probably a little more difficult than getting married during a pandemic. I love this story. This is great. You guys are a young couple. How old are you two? We just turned 25.

Oh, my goodness. This is inspiring. So what do you tell people the key to getting out of debt is? Well, for me, as the nerd, I definitely think the budget is the key. Being able to see where your money goes and control where you can put some of your money definitely was the key for me, as the nerd, I definitely think budget is the key. Being able to see where your money goes and control where you can put some of your money definitely was the key for me. Yeah. I mean, I agree with her there. I never thought that I would live on a budget in my life. And now the first thing I do when I come out of a store is get my every dollar up out.

But from where I am, you have to be okay saying no to doing things, right? Like my buddies took a trip to Vegas in May and we were just so close that I was not going to put anything in the way of us paying this off. And we moved our debt-free date up by like, I think like 12, 13 months from when it was originally when we first got married and we're making those salaries. So you have to be okay saying no to things. You can't have the FOMO. You have to just trust what you're doing. And if people say that you're crazy, look at each other, smile, and say, we're doing the right thing. That's good.

My granny used to say, crazy like a fox. Yeah. Yep, yep. I like it. So you have to do that. You have to work. If your broke friends are making fun of your financial plan, you are right on track. Yeah, absolutely.

Well done, you guys. I'm so proud of y'all. Thank you. I appreciate it. And I know Mom and Dad are. And who were your other cheerleaders other than the obvious ones sitting to your right? Each other. We were, especially Carolyn.

I mean, she would not take no for an answer and really worked with me and was very understanding that I had not come up in a family like this, right? You know, I'm very proud of the way that I was raised, blue-collar, hardworking, but just the financial stuff wasn't there. She was very patient with me. I think when we look back at our budgets from the beginning, I think my free spend was like $150, and now it's like $30. Both of us are at $30, and we're cool there.

It's just amazing. You get a track of your money and see how much money you really waste. She helped me see that. So she was definitely my biggest cheerleader. I'm very blessed. Wow, what a great way to start your marriage. This is amazing. Look at Dave., you're 25 and they say, we're not going to wait on student loan forgiveness. We're going to forgive it ourselves by paying it off. What a concept.

You guys are awesome. I just love this story. And I know you're inspiring a lot of other young couples out there who may not be on the same page. And you would say, go through Financial Peace University. That's what did it for you guys. Yeah. Yeah. I mean, you have to build that solid foundation, right? I mean, we are really trying to change the future of our last name. It's not going to mean swipe a card anymore. It's going to mean pay for cash.

Plan for things. And in doing that, you have to build a solid foundation together. You have to be on the same page. So if you're not, take the class. It is absolutely worth every penny. Way to go, guys. Thank you. not take the class it is absolutely worth every penny yeah way to go guys thank you thanks for the ad but uh i'm so proud of you guys thank you we got a copy of legacy journey for you that's the next chapter in your story for sure as you said you've changed your

legacy you've changed your family tree change your name what it means now a whole new brand way to go very cool and a copy of total money makeover for you to give away knock one of your uh buddies right on the head with it and maybe you can wake them up and get them going. You never know. You never know. That's how most of us get inspired is through our friends and our family, and much more so than some dude on a radio a thousand miles away. So way to go, you guys.

Thank you. Very well done. All right, Alec and carolyn from pittsburgh pennsylvania 63 000 paid off in 16 months got married in the pandemic and did it all extra side hustles and everything making 75 to 90 plus side hustles count it down let's hear a debt-free scream three two one we're dead free! Free! Yes! With a kiss to top it off. That's it.

The newlywed look. I love that. That's fabulous. Good stuff. Congratulations, you guys. Folks, big announcement coming up after this break. We put it out on social media a little bit earlier today and out on some of the media wires and we will let you guys in on it in just a few minutes after this break be sure you stay tuned in um a brand new endeavor for the ramsey team and uh really really really excited about it uh and it's perfect on the heels of their debt-free scream from their student loans, newly married, 25 years old, and they're free.

The problem is not enough people in America are where they are. A lot of people are hurting on this subject. That's a good tease. I'm getting excited about it. At first, I was like, I don't know what this is. And then I caught on. I'm real sharp. I suspected you would figure this out.

I'm real pumped. Of all people, I suspected you would figure this out i'm real pumped of all people i would suspected you would figure this out it's perfect yeah i love it all right this is the ramsey show We'll be right back. If you aren't strapped with student loan payments, odds are you know someone who is. Millions are having to put off things like buying a house having kids because they're stuck or even worse they're waiting and waiting and waiting and waiting and waiting for a government to save them world-class documentary called Borrowed Future. It uncovers the dark side of the student loan industry and exposes how the system is built to work against you. The date, save the date and make a point to watch the release date for the documentary will be on October 14th and you'll see all of us weigh in on the epic failure otherwise known as

the student loan program. Featured interviews from industry insiders and thought leaders like Seth Godin, Seth Frotman, Dr. John Deloney. We're coming at this hard. We're going to take big swings at the student loan problem with the goal to educate parents and students across this country of the truth. You do not have to take out loans to get a college education. It is important to graduate debt-free and avoid the predatory student loan industry and your predatory government. Borrowed Future premieres on digital platforms everywhere October 14th.

Mark your calendars. Go to borrowedfuture.com. But we'll give you the – when we get a little bit closer, we'll have all of the distribution tied down, but the major digital platforms will all be carrying it. They've all made commitments to us, and we'll have to get it tied down, but the major digital platforms will all be carrying it. They've all made commitments to us, and we'll have to get it tied down before we can actually announce exactly who and when and where. But October 14th, they'll all be lined up by then, and we'll let you know. This thing's going to be huge, George.

I can't wait. I went to the website last night. I watched the trailer. I signed up for the mailing list. I marked my calendar. I did all the things because I was legitimately that excited about it. It's going to be so good. The team did an incredible job.

It is world class. Yeah, our Ramsey Networks production team is off the chain. Yeah. I mean, they are very good. And, I mean, my wife and I are watching the trailer in my living room, I don't know, three or four weeks ago when they got the trailer done. We watched, of course, screened the actual documentary as well. But we're watching the trailer and we're going, wow, that's our company that did that. Wow.

It's pretty cool. Yeah. It's pretty cool because it's going to mess you up if you're thinking about borrowing money to go to college. It's going to mess you up if you don't get in your governmental congressman and senator's face about stopping this student loan program it's a disaster you're going to stir up a ruckus david if you're not careful uh it's it's a spiritual gift of mine george thank you i'm good at stirring up well if you've got student loans and you're going to watch this and get even angrier and go i got to pay this thing off asap i don't want this in my life anymore. If you sit around and wait on the government to do it, the process here,

it's just once you get in the underbelly of this and you see what some of the evil and manipulative intent was from day one of this thing and see who some of the players are and how they acted, it's unbelievable. And then you see people's lives are just on the, you know, they're just wrecked. Yeah. He's wrecked. There's a lot of villains in the story. And I'd be shocked if anyone could walk away from that documentary and go, I still think

student loans are good debt, Dave. Yeah. Well, they help a lot of people. There'll be some idiot that will, but not as many. It's pretty convincing. It really is. Borrowedfuture.com. Go ahead and mark your calendars. it's going to be a big fall comes out october the 14th debbie is with us in

detroit hi debbie welcome to the ramsey show hi thanks for taking my call sure what's up my husband and i made a huge mistake we moved into a house about two months ago. And with the housing market being so crazy, and lots of competition for homes, we made a mistake of buying a house that we just feel like we can't afford the mortgage payment. It also has a pool that is much more of an expense than we thought it would be. The house needs a lot of repairs, and some things have come up in the last couple of months that we didn't realize were going to need to be repaired right away. So my question is, should we plan on selling it or stay for at least two years and then not have to worry about capital gains?

But if we sell it now, we would probably walk away with losing about $40,000. There is no capital gain when you lose money. Right. But on the odd chance that we were to make money. If you break even, there's no capital gain. Capital gain would only occur if you made a profit. Right. So it doesn't sound like that's a problem.

Yeah. But if we sold it for what we bought it, if we just broke even, we'd probably lose about $40,000 with closing costs and everything. So what's your house payment? Well, that's the other thing, too. It's more than what we thought it would be. The property taxes are going to be more than we had planned for.

So with property taxes and insurance, it's about $2,300 a month. And what's your monthly take-home pay in your household? About $9,000. Okay. All right. Well, you're slightly above what we would tell you, but not a huge amount. Right. It doesn't sound like this. Your house payment's not 40% of your take-home pay.

This sounds more emotional than mathematical. Okay. We feel like we've been bleeding money ever since we went into the house because of the pool and the repairs that have been needed. What have you spent on repairs? I'm sorry? What have you spent on repairs? I'm sorry? What have you spent on repairs? Well, with the pool, it's been over $1,000.

With the repair, we just had a garage door repaired that was over $700. What did you pay for the house? We paid $410 for it. And you had $1,500 worth of repairs and you're panicking? Yeah. You make $140,000 a year? Yeah, well, yeah. Yeah.

This is emotional. It doesn't sound like you're bleeding out. It feels like you got a little scrape on the knee, but it's just a lot. It sounds like it's more stress of just we're having to do a lot. I think you were super impulsive, and you did something that you wished you hadn't done, and that's what's killing you. The math's not killing you. Okay.

I mean, it's not ideal. Yeah. But I probably would just breathe a little bit here um okay you know i i okay here's the thing the house payment's not out of control the repairs are not twenty eight thousand dollars in one month there were fourteen hundred in one month and you make 140 there's nothing here that's causing red sirens to go off and fireworks and panic in the numbers. Now, I understand you have a deep sense of regret because you feel like you impulsed and overpaid.

So I don't want to trade a $1,400 repair and a house payment that's slightly over the margins we teach, which are conservative, for a $40,000 loss. Right. Well, the other thing that I'm worried about, too, is we moved with our jobs because now we can do our jobs from anywhere after COVID, and there is a chance that my salary could be decreased based on where we're living now. Well, if that happens and you can't afford the house, we can talk about selling it then, but we don't sell a house on what might happen.

The house might get hit by a tornado, too, Yeah. But we're not going to sell it because it might. Right. Debbie, do you guys have any other debt other than this mortgage? We do have a car payment. We owe about $12,000 on a car. We only have one car. And then we, just from the move, we've got about $6,000 on credit cards. So it sounds like there's some other pieces to this puzzle that are causing this stress. Do you have an emergency fund? We have about $25,000 in savings right now.

I would write a check and pay off the credit card and cut it up and pay off the car today. Right. And you guys need to get on a budget. You are not in control with your spending. That's where the stress is coming from. The sense of chaos is where the stress is not the actual math there was more to it i think she's bleeding out more from these payments versus the mortgage and i think once she gets that out of her life they pay down the debt they refill the

emergency fund she's gonna breathe and go okay no car payment no credit card and be on a written plan with every dollar where you know you're under control. Both you and your husband looking at the numbers every month, stress level goes down. Then if you want to sell the house when it's not a $40,000 loss, $4,000 loss, maybe. Have a friend or family member that needs a daily dose of 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.

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