The Ramsey Show - App - What Happens When You Let Family Borrow Money (Hour 2)

Episode Date: September 1, 2022

Dave Ramsey & Dr. John Delony discuss: Buying employer stock options, Converting a traditional IRA into a Roth, Why you shouldn't let family borrow money, Buying a truck with profits from a home sale. Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 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 Studio, 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. We help people build wealth, do work that they love, and create actual, real, amazing relationships. Dr. John Deloney, number one best-selling author of the book

Own Your Past, Change Your Future, and host of the Dr. John Deloney Show, is my co-host today. The phone number, we'll talk about your life and your money right in front of you. The phone number is 888-825-5225. Jack is on the line. Jack is in Jacksonville, Florida. Hi, Jack. How are you?

Hey, how's it going, David? John, thanks for taking my call. Sure. What's up? Yeah, so I recently had a career change. In my previous employer, I vested about 7,800 privately held stock options to purchase. I vested about $1,000 off my in it, like a dollar a share. Like I said, they are privately held.

And so, yeah, I'm just looking for some advice as to whether we should purchase any or not. I just got married in February with my wife, and we don't have any debt. We have about $10,000 in our emergency savings, and we also have a sizable amount paid for down payment for a home. We're currently renting. And, yeah, I just, like, want to know what the best option would be moving forward. Okay. The way I answer questions on this show, Jack, after 30 years of doing this,

is knowing what I know, if I woke up in your shoes what i do and that's the way i look at it okay you're newly married you got 10 grand you got a house down payment and these are privately held shares uh do i invest in them okay everything in your life sounds normal except that that kind of stands out over here is weird you know yeah yeah that's an investment you would make if you had a million dollars you'd been married 40 years whatever and if you wanted to have some play money uh you would goof around with that okay so a couple of issues i would have with it if i were in your shoes is, number one, it's single stocks. So you've got all of this money, basically all of your investment money at this point, tied up in a single company.

So as it goes, so goes your entire portfolio. So that's called risk because you're not diversified. You're not spread out, number one. Number two, it's probably hell which means two things uh we have no idea what's going to happen right none whatsoever it's a small operation or it's a big operation but either way you have very little transparency you have very little control uh and you have very little liquidity once you own it it's hard to get out of it a lot of times. And so even if I was going to buy single stocks, I wouldn't buy that one. Yeah.

The only reason I was concerned about it was, so we do have two Roth IRAs. I have one and my wife has one. We've maxed out the last two years. And then, yeah, I was talking to some friends and they're saying, you know, even if you buy 5,000 of them at $5,000, um, over the course of your entire investments, um, for retirement, yeah, I mean, it's a risk, right? Um, so I'm not sure if that 5,000 would be a risk or if I should throw a thousand in it and then if they go public, um, the rate of return could be, could be very lucrative, but I know.

And you could set a thousand dollars in the middle of the floor and set it be very lucrative. And you could set $1,000 in the middle of the floor and set it on fire. Yeah. That's the thing about Instagram, man, is you'll see these things roll up every once in a while. If you had invested in Tesla nine years ago, you would have $100 billion. What that kind of thinking doesn't tell you

is how many people sat at their friend's brother's table with this new business idea that they invested and they lost everything. They lost 1,000, 5,000, 10,000 or whatever. There's way more of those than there are of the Teslas in the world. Yeah. And so here's the thing about this situation, okay? One of two things is going to happen. You're going to make a lot of money or you're going to lose all your money there's probably no in between you're either going to put 5 000 in and get 25 000 out or you're going to put 5 000 in and say bye um you're newly married you're trying to buy a house you don't need to put five thousand dollars on the roulette table and hope it hits red. And that's what you're doing.

So you can do whatever you want. I've done it. I did it when I was your age, and I lost it several times because I'm stupid, and I have to learn these lessons more than once. Because I always think I'm a glass-half-full guy. I always think it's going to work out. Oh, that's me. And it doesn't. So it's a bad investment strategy jack i wouldn't do it and your friends that are giving

you advice on this are people who are broke they're not millionaires so millionaires do steady predictable investing they get out of debt and they stay out of debt nothing in this discussion falls on those under those headings i wouldn't do it but you do whatever you want we'll still be friends. Ronald is with us in Greenville, North Carolina. Hey, Ronald, what's up? Hey, Dave. This is a great day to get to talk to Dave Ramsey and John Deloney,

and I turned 52 today, so this is literally the icing on the cake. Happy birthday to you. Happy birthday, young man. Thank you, sir. Just a couple quick questions. So basically, me and my wife, we're at about $1.4 million net worth. Over the

period of four or five years, we're at $87,700. I have rolled over about $470,000 into a Roth. Good. I've got about $80,000 left before I can completely be all of the pre-tax stuff is rolled over into the Roth.

Good. Number one, is that smart to do? Yes, yes, yes, yes. The number two piece is basically being 52, do I continue to, because in our job we don't have a Roth IRA. We just have a simple IRA. So would it be smart right up to 60 years old to roll over every year, convert it, and then pay the taxes until 60 and stop at 60 doing that? If you're going to leave it alone, whatever piece of money we're talking about, if you're not going to touch it for 10 years, it's going to be smart. Okay. Even past 60.

I'm 62, and I'm going to do a Roth this year. Okay. Okay. So because I'm not going to touch that money, I'm going to let it grow tax-free. Now, if I'm going to get the money out sooner, it starts to be questionable as to whether that's the right direction. Okay. But if you're going to leave a loan decade, you're better off to have the tax-free growth. And let's repeat, you're 100% debt-free, Baby Step 7 house and everything.

You have a $1 million-plus net worth. You're a Baby Steps millionaire. You did it on your own. You didn't inherit it. It's all sitting there. You've got the cash to pay the taxes that this $80,000 going from traditional to Roth creates, and now that $80,000 is growing from this point tax-free. And so if it grows 10%, it grows $8,000 next year,

that's $2,000 that would have been taxable. On that $8,000, it's not taxable. Okay. And the next year, and the next year, and the next year, and the next year. And also, too, right now I know with the mutual funds are down,

so basically I'm... Great time to do a roll-over. Great time to do a roll over. That's kind of what I've looked at. I didn't know. Again, you said pretty much past 60, as long as you don't touch it with a 10-year time period, continue to do it. If you've got an investing horizon of 10 years or more, it's always

going to work out to do the tax-free growth. That's it. It's that simple. And you do a baby step 7. Now, I'm not going to tell people that have debt to create a tax burden by rolling to a Roth while they need to be paying off their car debt. No, no, no, no, no, no. This guy's a baby step seven. He's got extra cash. All we're doing is getting tax-efficient growth on his investments.

That's all we're doing. This is the Ramsey Show. Dr. John Deloney Ramsey personality is my co-host today in less than two weeks we're kicking off the building wealth tour and it has been incredible to see the buzz around these life-changing events. At these events, you're going to learn the best way to build real, lasting wealth. You'll leave with practical, easy-to-follow plans that actually work. We'll be doing pictures and signing books. Dr. John Deloney at my right will be with us, Rachel Cruz, Ken Coleman, and George Camel, and me.

This week we announced that the event in San Antonio has sold out, that there were a few tickets left for us in Phoenix on September the 12th. Sorry, September the 12th is also sold out. So Phoenix is completely sold out both days, September 12th and 13th. Sacramento, November the 1st, is sold out. San Antonio in November the 15th is sold out. And Minneapolis, November the 10th, the only ones getting tickets left. So if you want to come, we'd love to have you.

Minneapolis, a few tickets left. I mean, like less than 100. So it's going to be gone very, very soon. And, again, the tickets are only $25. You get a four-pack starting at $60. Bring a bunch of friends. Come out. It's a party.

It's a pep rally for your money and your life and your mental health and your career. And we're going to talk about all of it. And it's a good time. I can't wait. These events are so fun. I can't wait. That's five of them we've got, and all of them are sold out but one. Yeah.

It's a great fall lineup. Excited about it. And also, there's still tickets left to the October 22nd Smart Conference in Dallas. And they're a whole $35 for an entire day. All of the Ramsey personalities, plus Craig Groeschel, Amy Groeschel from Life Church, will be speaking on marriage. So lots of good stuff going on in all of this. Don't miss any of it.

Our question of the day comes from Blinds.com. Find out for yourself why Blinds.com is the number one online retailer of custom window coverings. Free samples, free shipping, new promos they run every month. You'll save even more. Use the promo code Ramsey to get the best possible deal. Today's question comes from Roberto in Texas. Says, I've always helped my immediate family members if they needed money and most have paid me back. But I have two siblings that have

borrowed 9,000 bucks through the years without paying back a cent and neither of them work. My brother has used the kidney failure, his kidney failure as an excuse for the past 20 years. And my sister has recently been diagnosed with diabetes and is going down the same path i made a promise to my parents that i would look out for my siblings but i feel like enough is enough how can i let them know i will no longer come to their aid unless they pay for their past debt all right dave i can i answer this and you can you up my answer? Yeah, or vice versa. You promised your parents you'd take care of them. It looks like you are contributing to them very negative health outcomes. So if I'm this young man, or if he was my brother or my friend,

I would tell him, forgive the debt and sit him down and say, I'm not going to give any more money to anybody and then move on with your life yep so here's the i mean is that right yeah now this is not a um a proper uh psychological definition and so you can shoot holes in this but in my opinion number one enablers that i have met including when i have been an enabler um and i can think of a time recently that i did that lord forgive me and shoot me in the head if i try to do that again but um uh enablers when we are enablers any of us it is when we are the nicest people in the world, we are too nice to say no. And in the name of being nice, we get run over like doormats. And we call that being nice.

We're really good at it in the South. Bless your heart. Bless your heart. Bless your heart. Which can mean I'm getting ready to slit your throat, or it could mean bless your heart. We don't know what it means. It depends on the tone and the context and everything else. And then you may still may not know so um when my wife says bless your heart i still i'm not sure after 40 years what she means sometimes it's sarcastic and i do understand but well bless

your heart i know what that means okay but um that means you are a dumb butt but yeah that's um but but the uh uh anyway enablers this man is a nice man. That's right. Number one. Number two, this is the part that's probably not psychologically correct. In my opinion, someone who is enabling, they always say, I always hear the language, I'm helping. They want me to help. I want to help. I told my parents I would take care of them, help them, be there for them. And I think enablers have defined help wrong.

Absolutely. I think enablers use other people as tools to make themselves feel good. But, I mean, if you think giving a drunk a drink is helping them, you have defined help wrong. Right. You've harmed the person. That's right. You've contributed to it, right? You've poured gas on their fire. You've harmed the person. That's right. You've contributed to it, right? You've poured gas in on their fire.

You're participating in their crazy butt behavior. Right. Now, I don't know about the kidney failure. I don't know about the diabetes. I don't know what's going on here. I'm not a medical doctor. Diabetes comes from a lot of different things. Obesity is one of them.

And they don't work much, he said, in both their cases, I think. So, I mean, I don't know. It could be in the equation here. But I'm not going to, I can't make a prognostication or however you say that, a prediction on their health or even read motive into their health. But I can go, these people are not sustaining their own lives. And so, I am participating in their failure by giving them money. Not only are they not sustaining their own lives, and so I am participating in their failure by giving them money. Not only are they not sustaining their own lives, but I'm watching the quality of their life decrease,

and I am paying for it. I'm paying for it. That's right. So I'm contributing to this. It's giving a drunk a drink. It's buying a heroin addict some heroin. I mean, when you're participating in their, when you're enabling or causing or making it easier

for their negative behavior to continue. My son lives in my basement and he won't get a job. Well, what if he wasn't in your basement? Oh, yeah, you're contributing. Because an eagle that doesn't leave the nest is eventually known as a turkey. Kick his butt out. Why? Because you're a big old meanie and that's tough love?

No. out why because you're a big old meanie and that's tough love no because you do love him so much that you know he will have no dignity as a 46 year old in your basement he already doesn't have any dignity as a 26 year old in your basement get his little butt out and i would reverse it i would reverse this to roberto and say stop using your brother and sister as a way to reconnect with your parents right your parents. Right? Your parents. Now we just got hoochie-coochie with the psychology. They passed away. Stop using your brother and sister and giving them money,

leading to what Dave was just talking about, leading to them having challenges. Stop doing that. Don't use your brother and sister anymore. And don't become, you're not a loan shark to your brother and sister. Yeah, yeah. That money's spent. I would just say, I agree with John on that. I'd call him up and call him up say listen it's forgiven i'm not going to give you any more because

i love you because i love you and what i will do is i will cheer for you i'll help you i'll coach you i'll show you how to get a job i'll show you how to interview for a job i'll teach you the character you need to keep the job i'll help you with your budget i'll help you get out of debt by showing you how i'll pay for you to go to financial peace university um if you want to take a class at the community college i'll and to get to get that job i'll pay for that i'll go to the doctor with you when he when the doctor when he or she explains how you're going to navigate your health crisis and work right we'll figure all that out i'll be there with you i'm i'm there for i love you yeah i'm not cutting you off emotionally and relationally i'm cutting you off financially that's right and the only reason i'm

doing that is because i love you so much yeah well that's tough love no honey that's just love just love just love what you're doing is not love enabling is not love it's called cowardice right uh you don't have the backbone to say no when you're blaming your parents it's cause it's using people yeah don't do that don't do that so yeah enablers are the nicest people in the world well even when i'm an enabler i'm that's when i'm my nicest i'm because you're too wimpy to do the conflict to say dude you need to get a job this stops you're my brother you freaking lazy you need to get up get your big butt off the couch here man or if you've got if you've got kidney failure we need to go get you with some services that are going to get you the help that you need man this isn't working yeah and

what what kind of income producing thing can you do yeah with that because it's not sustainable right it's not sustainable. Right. It's not sustainable. And there's no dignity. I'm writing down dignity restoration. This is how you give someone the gift of dignity. Here's 73 books to read that will motivate you. And I'll read them with you. We'll do this together. We'll have a Bible study together.

I'll pick you up and we'll go to church. Raise our hands and praise Jesus. And let's do it. What do we got to do? Let's get this thing moving called life. I'm here in your corner. I'm for you. But what's happening is you're becoming bitter toward them over nine grand. Forgive the nine grand. Forget that. It's gone. You ain't getting it back, number one. Number two, it's holding you back from moving them forward. This is The ramsey show Dr. John Deloney, Ramsey Personality, number one best-selling author, host of The Dr. John Deloney Show, is my co-host today. Open phones at 888-825-5225 in the lobby of ramsey solutions olivia is with us with keno kiano kiano i'm sorry i knew i was gonna mess that up welcome welcome good to have you guys

all right where do you live wisconsin yes what part we live in lomero okay which is near small town near oshkosh yes okay there we we go. That's something a Tennessee person recognizes. Beautiful area. How much debt did you pay off? $72,000. All right. How long did this take? Just about two years.

Whoa. Good. And your range of income during that time? It ranged from $55,000 to $80,000. Cool. And what kind of debt was the $72,000? It was about everything we had. Cars, credit cards, and some medical.

Kind of normal. Yeah. Normal Americans. All right, what happened? What woke you up two years ago? Well, it kind of first started after we got married. We used most all of our wedding money to start paying off our debt. And then a few months later we

got pregnant and we're like this is our i've had a moment we can't bring a child into this world and not have our finances in order so that's really where we started right from then there's something about a baby grows you up instantly you're like oh this just got real how long have y'all been married three years. Three years. Ah, very good. We've been together for 10 years. High school sweethearts. Fun. Very fun.

So how'd you get connected to this Ramsey stuff, the Ramsey way? You know, I actually was watching some vloggers, and they were talking about how excited they were that they paid off their car. And when I saw that, I was like, that seems weird. I'm like, I couldn't imagine having they paid off their car. And when I saw that, I was like, that seems weird. I'm like, I couldn't imagine having a paid-off vehicle. So I, and they, do you use your name? This was years ago.

And I was like, we should try this. And at first she was like, no, you know, we're not. I was reluctant. I was like, we gotta cut the credit cards up. I was gun-ho on it right away. And yeah, that's just how we learned from me and then as soon as i started dropping the ramsey name around co-workers and family they would all start kind of giving their two cents on it ah okay positive or negative positive positive or negative he's a snake oil salesman stay away from that guy yep i sell i sell a lot of snake oil

lots of it. Lots of it. I've got it all in my hair and everything. So, Olivia, what probably finally brought you along? I just really needed to realize that I was living beyond my means. I didn't need certain things, and I just needed to focus on our main path and changing our family tree if we were going to have a child and bring more children into the life. So one of the most common questions we get is somebody married

to somebody else saying, how do I get my spouse on board? What did Keanu do? What was the conversation that finally happened that you said, you're right, let's do this. He just really put out an outline for me. He's really good with spreadsheets and he explained all that to me and i'm like you know that sounds awesome it would be great to be debt free and then we can just give back eventually and yeah have a great life and so he gave you a vision of what this yes the vision definitely gave me a great outlook on it and i'm like yes let's do this yeah very fun very fun love my spreadsheets so how did you you heard about us and then how did you plug into our stuff just the youtube or what

youtube and the podcast i would listen to the podcast every day at work and i'd come home with something new to show her and we'd be listening to the podcast all night i'd say when it going through everybody's story and he's like, see, this could be us. When it really took off was when we started actually putting everything out in a budget. And first we were trying to use random budgeting apps and stuff. And then we were like, well, we should just use the EveryDollar app. That makes more sense. And then we started seeing how much money we were wasting.

Crazy amounts of money. We were like, this money could easily have been used for- On what? What were you wasting it on? Going out to dinner or shopping. And sometimes we were sitting there like, we have no idea where all this money went. Yeah, we would be so confused. We're living paycheck to paycheck.

Where is all this money coming from? So once we started putting everything down into the budget, we're like is where it's going we cannot do this anymore we need to change especially with a baby on the way yeah yeah the baby gives you that urgency that's fine we've got to change our family tree we got to be grown-ups when this little one gets here we can't children raising children not a plan no it's a how old are you guys now? I'm 24. I'm 26. Wow. And y'all owe nobody. Nope. How's it feel?

Feels great. Feels great. It's a weight off the shoulders for sure. It seemed like every week we were getting hit with a different credit card payment and stuff. And it just, it was, it puts you in like a depressive state at times where you're sitting there like, I'm finally getting ahead. And then all of a sudden you realize, oh, I forgot to pay the Capital One bill this week, and now we owe an extra 75 bucks.

And it's just great to be able to do this at such a young age too, and we don't have to worry about doing this in the future. Will you go back in debt? No. No. You two don't understand what you've done for your financial future yet you'll be 35 and y'all will be smiling and then you'll be 45 and you'll be really smiling like what y'all have done millionaires yeah oh my goodness i hope so that's the plan yeah you are you will

oh if you stay on the track no question all right when people hear you did this and they ask how do you get out of that what What do you tell them? I tell them that start off with a game plan and sit down, especially if you're married or something. Sit down with them and write everything out. And you work as a team. You can't work against each other. You can't hide things from each other. You need to work as a team and just make sure everybody's on the same page because that's the only way you win. Cash is king.

That's dumb. That's pretty much it. There it is. You married Socrates, Keanu. There it is. I like it. Very good. Very good.

Well done. All right, and you brought your son with you? We did. And what is his name? Grayson. Grayson. All right, we got a copy of Baby Steps Millionaires for you. We're proud of you, too. Well done for you. We're proud of you two.

Well done, you guys. Very proud of you. Oh, he's great. Oh, look at that. A cookie in hand. That's how he can be happy. I love it. That's fun.

And I also got a copy of Financial Peace University for you, a one-year membership to that. And we will also send you or give you a copy of the Total Money Makeover. You can give that away and get somebody's journey started. So very, very cool. good stuff all right keanu olivia and grayson from wisconsin 72 000 paid off in two years making 55 to 80 count it down let's hear a debt-free scream three two one we're debt free. Yeah. Woo-hoo-hoo.

I love it. Well done, you guys. Very well done. So for everybody listening, I hope you heard this trajectory here. He really wanted to get out of debt. He wanted to follow his plan. Wife wasn't on board. So he sat down and he painted a picture of this is what this could look like for us. And he had a plan how to get there.

And he said, I'll be a part of this if you will. Right? So it's all of that stuff, right? Have a dream meeting with your spouse. What this could look like. And paint it out in great detail in HD. This is exactly where we could be sitting. we could be in this situation at this age and here's because the math says we can't and it's not high it's not pie in the sky this is conservative this is reasonable

we get out of debt and we get the house paid off during that time we build this level of wealth we're 35 we'll be sitting here with this kind of net worth and um you know and put you in a completely different mindset then because you start to believe it's possible when i was about oh was i was 22 years old and um i went to one of these uh multi-level get rich quick things oh i thought you're gonna see a covered wagon convention yeah okay so yeah let me tell you what let me tell you what they carry when they're right on covered wagons they carry colt 45 so um just keep that in mind all right so uh circle the wagons the zelonis are here all right um but the uh uh yeah so i have no idea what i'm

gonna say the multi-level marketing convention the multi-level so I have no idea what I was going to say. The multi-level marketing convention. The multi-level. So anyway, the guy pops up there a compound interest chart and says, if you saved $100 a month at 12% from age 30 to age 60, age 25 to age 65, you'd have $1,176,000. And I went, why don't everybody do that? Right? Right? Because i was 22 yeah and i'm like i don't even have to get started till i'm 25 yeah 25 to 65 40 years at 100 a month 12 percent 1 million 176 thousand dollars we can't get 12 it wasn't the point the point was why don't everybody do that yeah because once you see the math, it gives you a vision.

And you go, dadgum, everybody, $100 a month. Everybody ought to be a millionaire. That's just crazy. This is the Ramsey Show. We'll be right back. Thank you for joining us, America. We're glad you're here. Dr. John Deloney, Ramsey personality, is my co-host. Thanks for hanging out with us. Tom's with us in Lima, Ohio.

Hi, Tom. Welcome to the Ramsey Show. Hey, guys. It's really nice to speak to both of you. You too. What's up? Hey, I was was wondering a little dispute between my fiance and i yes that's what we're here for yeah we're getting married in 16

days i'm 20 she's 21 you lose whatever the dispute is you lose it's not much just a very slight disagreement i guess okay that's how i can tell you're not married there is no slight disagreement but go ahead no uh yeah um i've got to wait till i was in person whenever we come down during our honeymoon but uh found a truck sooner than later we're closing on selling our house we're moving moving to, we're going to rent my grandparents' family farm with the plans of buying it in three to five years. But anyways, we have about $102,000 in equity on our house that we'll be getting a check for tomorrow.

And then we're wanting to get a little bit nicer truck than we have now. What do you have now? I have a 2002 Chevy with 170,000 miles. Okay. And what do you make a year? Between the two of us, it's going to be around 85 to 90. Okay. And what are you talking about spending on a truck?

I found a really nice 2017 F-350 for 37,000.. So it'd be around $40,000 after tax and title. Nope. She wins. All right. Is that just due to the income? Yeah. You're going to spend half your income on a truck. Okay.

You don't want to have more than half your income tied up in things that are going down in value. And by the time we buy her a car, you've got more than half your annual income tied up in things that are going down in value. And by the time we buy her a car, you've got more than half your annual income tied up in things going down in value. You do need a better truck, but you went whole hog here. You need to back off a notch or three. Yeah. Like 10 grand. 10 grand is 10 times nicer than what you got.

10 grand is 10 times nicer than what you got. Yeah. He doesn't sound enthused sorry man listen that's not really what you're hoping for you called a couple of dudes on a radio show and you're like these guys will be we just ruined i'm sorry yeah hey you got a lot going on you're you sold a house you're getting married and you're moving all in less than a month yeah it's okay if you wait to buy a truck a little bit yeah okay and and i i you know you have you have too many things too many balls in the air you're getting ready to drop one and that was one you were getting ready to drop you i i wouldn't do it i wouldn't do it and you asked't do it. And you asked us, because I want you to be able to pay cash for this farm more than I want you to have that truck.

Yeah, I'd love to be able to put at least 30% or 40% down on the farm. Yeah, and the cheaper truck you buy, the more likely that is. And the funnest part about having a farm is all the gear, right? Like, I can't just have an F-150 or an F-250. I have to have an F-3, right? It just just you can gear yourself out of a lot of money man no stop it john i know i like the toys man but no no it's uh here's the thing things that have motors and have wheels whatever they are they go down in value. Like 99% of them do. And if you're going to build wealth, you minimize the things that you buy

that go down in value. You maximize the things that you buy that go up in value. Fairly simple equation. But if you, you know, like here's another one, Tom, and John will relate to this. I was driving the other day. I cut through a back way, and i got over into this uh new little neighborhood and it was a little um it was nice nice homes but they were starter home

maybe a one half notch above a starter home okay kind of slammed all together and the you know the little driveways are coming down the front they're all kind of looks like a um truman show or something right they ran through and just buzzed the trees down and just threw them up it's just a it's just it's a subdivision you know kind of classic right but nice they were nice they weren't they weren't trashy but they weren't mansions they weren't even mcmansions okay and but what struck me was as i drove along there that most of the cars were not in the garages they were in the driveways in front of the garage or in the street in front of the house because they wouldn't even fit in there. And as I'm driving along there, I can look,

and I'm adding up the price of the two cars sitting in front of that house, and I go, dude, if you weren't driving those two, you wouldn't be in that house. Yep. Dude, if you weren't driving those two, you wouldn't be in that house. And so you can tell these people have got their thing bass-ackwards. That's right. And they've got all their money in wheels rather than in real estate. They've got their money in image.

Well, yeah, because the people at the stoplight need to be impressed. Exactly. You will never meet them, but they need to be impressed. For the people that walk by the parking lot where your car is parked for eight hours of its day, and they're really going to be moved by that car you've got yeah i mean i i you know i uh the first time i heard this really pissed me off i had i was making good money i was in real estate business before i went broke and i bought a jaguar and i thought man i'm so bad i got a jaguar i'm the coolest dude on the planet and my grandpa who worked 38 years as a

cost accountant at alcoa i went down to see him now he had a um a 68 i wish i had this truck 68 short bed chevy lime green three on the tree yeah oh and it was perfect. And I come wheeling up, and he had about probably a million, two, in money markets, cash. Never invested a thing because he's a child of the Depression. Just stacked cash is all he did. And I knew he had money, but I didn't know how much until he died. But I roll up in that thing with my cool suit with the little pocket thing in it, you know, look like Ken Coleman, right?

Yep. And, man, I come rolling out of that Jaguar, and he comes out, and he looks at me, and he goes, what is that? suit with the little pocket thing in it you know look like ken coleman right yep and um man i i come rolling out of that jaguar and he comes out he looks he goes what is that i said it's a jaguar he goes what in the world i said well it's a european vehicle right paul it'll it's it's kind of fancy and he goes oh it looks like it he goes what that thing cost i told him he goes he whistled he said that's dumber than a rock i said well what do you mean it assaulted me i thought i was cool i was there for my grandpa to brag on me and he that's dumber than a rock i said what do you mean he goes well you take out amount of money and you put it in a savings account, you know how much will be in there in 10 years? And I said, how much?

He told me. Just ran that calculator, right? And I said, he said, you know what that car's going to be worth in 10 years? I said, well, it holds its value. He said, no, it doesn't. That's a lie. People tell themselves to buy crap like this. I was so mad.

I was mad for six weeks. Yeah. I mean, I wasn't just mad for six minutes. just left i mean i wasn't mad at him i was just mad because he was right he's right that's you know and it it didn't you know it just had boiled me boiled me because i was there i had a whole different image a whole different thing set up and of course i had borrowed every dime i didn't 100 financed yeah you know and uh man i but i you know that's one of those lessons you just don't you don't get to quote drive away from you know smart people put the money and things that go up in value dumb people put money and things that go down in value and you need to buy some things that are nice that have wheels i've got nice cars but but they're a small percentage of my net worth and of my income and i'll identify with this young man because it's a truck we're a couple of months out from

me finally replacing my old truck when you needed to your old truck was a piece of crap it's not great it's i still got it i got a couple more months i'm not there yet look at you kicking me while i'm down um but i also the covered joke is going to come back to haunt you. I'm just saying. But, hey, I understand. I'm a couple months out. And I understand. Like, I'll just pull up. I was just looking on websites before the show started and thought, I bet I could pull the trigger.

Nope. Just follow the plan, man. Just follow the plan. Follow the plan. Take a breath. Calm down. You're 20. Wait three more months.

It's time. You're 20. You're months it's time you're gonna be married in 16 days good idea to start marriage with her being right yes yes so because it will end with her being right good idea that's gonna you might as well start that way because it's where it's going in that's right yeah i get that man i get it man you want a new truck you need a truck it's all good all joking about wives and stuff aside, but here's the thing. Who can find a virtuous wife, the proverb says, for her worth is far above rubies. The heart of her husband safely trusts her, and he will have no lack of gain.

Now, his wife is not a nag. She's not a jerk. His wife to be. She just has wisdom. She's wise, yeah. And she just said this isn't smart. And he's like me. He's that little boy on the cereal aisle.

But I want one! I want one! And then he called this show, and we said, no. She's right, my brother. No. 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.

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