The Ramsey Show - App - What Is The Most Recent Jobs Report Really Telling You? (Hour 2)

Episode Date: September 6, 2022

Take our Audience Survey & Enter to Win a $500 Visa Gift Card: Click here to take the survey   Dave Ramsey & Ken Coleman discuss: Upgrading your living situation, The current job market, Not having half your annual income in depreciating assets. How much you should be investing. Paying off mortgages quickly.    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

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is here as my co-host today. We'll be answering questions about work you love and about your money and about your life and your career, your job, how you get a bigger shovel. All that is included today for free. The phone number is 888-825-5225. The call is free. Some say the advice is worth exactly what you pay for it.

Vanessa starts off this hour in Los Angeles. Hi, Vanessa. How are you? Hi, I'm doing fine. How are you guys? Better than we deserve. What's up in your world? Thank you so much for taking my call.

So I have about three months of expensive stays, so I'm in the middle of baby step number three, and I'm looking to move out, and I'm not sure if I should be leaning towards renting an apartment or working towards purchasing something. Move out of your parents' house? Well, I rent a studio from my grandparents house it's just really small and i don't have a kitchen so yeah i'm looking to upgrade

okay and what do you make a year 65 000 okay all right and you live in los angeles proper or what yes i live in los angeles by downtown All right. Well, as you know, you're in a pretty expensive real estate market. Agreed? Yes, I agree. And so $65,000 doesn't go that far. You're not exactly broke. You have a good job, but it's an expensive world to try to think about rent or buying, either one in your situation. So did you say you're out of debt? I am out of debt, yes. And I work from home, so I am, like, flexible.

I can move out of L.A. I don't mind, like, leaving L.A. I just, you know, don't know if it's the best thing to do. What's the comparison between what you're paying for the studio with your grandparents versus something else that's not exorbitant or luxurious, but an apartment with a kitchen? What's that going to cost you in LA? Probably like another thousand dollars a month compared to what I'm paying now. And what do you pay now? I pay only like $350. Yeah, if you can get that for $1,350, you've got a deal.

That'd be a deal. Yeah. So I doubt it. Yeah. Okay. Obviously, your family is in L.A. Mm-hmm. How old are you? I'm 25.

What do you do for a living? I work in fraud prevention for an e-commerce business. Okay, good for you. Okay, so here's the thing. If you don't see your income coming up fairly quickly, you're going to struggle to own real estate in LA soon. It'll take a while. Okay. So I'm tempted as a short-term adventure to move you to a less expensive market as an adventure, not a permanent solution. Maybe, maybe it is a permanent solution, but pick a city you've always wanted to live in, and let's try something new. You're 25. There's not much holding you except family ties.

And let's go somewhere where $65,000 goes a lot further. Yes, I agree. And then you could get a lot of a little bit nicer rental situation while you save like crazy to buy a property. And then talk about it as your income comes up. Now, if you tell me that in three years you're going to be making 165k then i'll shut up but if you're going to be making 65 and then 75 and then 85 you're going to be there a while in la yeah so i'm not trying to talk you

out of this but it's just a matter of what your career path is because this is a math thing and you don't get a pass on math just because you're in California. And that's the question I have is what's driving your future decision right now? I know it can change tomorrow, but right now, is it live in a more affordable place and keep doing the kind of work I'm doing, or is there a much higher professional goal that you're dreaming about? I think right now it's just moving into a more affordable place. I just got this job, right?

So I was making $40,000 just three months ago, and I just received a new job. Good for you. Good. Yeah, I'm just ready to move out and basically start my adult life finally. Yeah. Well, I agree with Dave. I would be patient and uh get into this new professional role let's move to a much cheaper area the fact that you work why don't we say after

christmas we start talking about moving to a different city yeah that's what i was aiming towards yeah let's just stay in the studio till then okay that's what i would do because my birthday my birthday's in march so i was hoping like by march yeah there you go should be on my own yeah and then you can move to what if you were just going to pick a city today just for fun for us to talk about what city would you pick well probably somewhere in riverside county because i also have family out there but i don't know if it's like a lot of a difference in like rent no not much yeah that's not that's not really a different city i mean that's just that's moving from one problem to another there but i mean if you went to

northern california uh into some of those areas you know there's more reasonable stuff going on there or you just go to an adjacent state you know yeah we start talking about um tucson or something like that i'm just making it up, okay? But so you just start saying, okay, by March I'm going to be here if I'm not seeing a huge increase in my pay boom over boom over boom, okay? Because in order to prosper in a very, very expensive market, you're going to have to get north of six figures pretty quick. Okay.

It's just a shovel thing. I mean, you've got a hole you're in and a shovel you to dig with and that's what we're discussing here so the good news is you're in an area a field that you've chosen to go into that if you'll get continue to study take classes get the certifications in that area security internet security stuff is just quite hot. And you could go way up real fast. Yeah, I think there's three things that I would give to her and anybody who's looking to kind of level up and get that paycheck bigger. Learn something new every day within the field. I mean, every day you're learning something.

Maybe it's through a course or maybe it's just somebody who's more experienced than you. Do something with that knowledge and make sure you're connecting all of the time, real relationships and real conversations with people in the field. Because by learning, doing, connecting, you're going to automatically have opportunities that come to you because you're very attractive. People could see that your leadership sees that about you. And before you know it, you're moving up and you're making six figures. It's the opportunities you never saw before. You might consider moving to the city where this company is and working in the office. Because that way you can be actually around the human beings that are doing this. One of the problems with work from home is out of sight, out of mind on promotions.

They forget you're there. They're not even sure you are there. That's correct. That is correct, by the way. The data is showing that. As people are trying to wrestle with whether or not I go back to work or not, the data shows that there's a much greater chance of getting promoted because you're actually getting noticed. Yeah, so here's a weird thing.

Promotions also happen on relationships. Yes. And that's not a good old boy network. It's just i can trust you if i've actually seen your eyes this is the ramsey show សូវាប់ពីបានប់ពីបានប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពីប់ពី thank you for joining us america ken coleman ramsey personality is my co-host today. Open phones at 888-825-5225. Guys, we really value the input from people who watch and listen to this show, and we want to know what's important to you. We want the right content for you, the right questions, the right challenges. And right now you can share your thoughts with us

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But there is some weird economic data that the media is not parsing through, and it is telling a different story of reality than the politicians on either side want you to believe. Okay, so side one is that, you know, we're at the best job market in the history of the world. There's a shortage of workers. We can't get enough workers i can't fill the jobs that we have available at ramsey okay which is true by the way probably got a hundred positions we could fill today roughly we can't get so there's you know there's

at arguably full employment anybody that really wants to work in this current economy is working is able to work is working from an economic perspective um and so the current administration would say look at us look at this great economy although we know we're in a recession uh we know that the fed thinks we're in a horrible inflationary situation so they're going to slam interest rates up and what they said so that they can cause some pain. That's correct. It's exactly what the moron at the Fed actually said. We want to cause some pain.

We want some more unemployment, and we want things to slow down. Well, thank you very much, you aristocracy piece of trash oh my god yeah the first thing we want to do is not let the little people prosper if we're in the fed so i already trashed on him last week so i'll just hold that for now yeah hold that thought but anyway so we've got this side that the economy is in such good shape that it's inflating and the marketplace is full, and there's a shortage of workers. And yet, we find people looking for work every day. There seems to be a shortage of, quote, good jobs. So what we're really finding, when you dug into the data, you were showing me this earlier,

is that it's not as easy as saying jobs. That's correct. It's what jobs. That's right. There are more options. The way to look at it is there's more options available now to people than previously existed that are attractive to them. So, example, where we see less jobs.

I'll give you one really dumpster fire situation. We have 300,000 less teachers now than we did prior to the pandemic. 300,000 less teachers. I wonder how many less police we've got,000 less teachers. You're also- How many less police we've got. That's correct. You're seeing a lot of municipalities with jobs. So local government, state government jobs aren't as attractive as they used to be. And there's a reason for this. This is upward mobility. And I think a lot of people are like, well, it was always safe,

but it's always been pretty stagnant. So there's more opportunities for people. You're seeing people move into delivery jobs. You're seeing people move into warehousing the environment of those jobs the culture not good what it feels like to be a cop today or feels like to be a teacher today is way different than five years ago there's no question about that we actually saw this recently just about a month or so ago you can look it up for yourself uh the fraternal order of police had their meeting in washington dc the., the National Chairman of the Sheriffs. They came out and said, we're losing good people, and they're moving into a different sector of the society to do the same type of protecting work. So a lot of private security, things of that nature, because they don't want to be treated this way.

They don't want to feel unsafe. So what's happening is we've just seen a big reshuffling of the chairs. And so what happens is when you hear things like, well, there's a job gap. Well, that's a function of there are one and a half jobs available for every person that's unemployed in the United States. You see a lot of people choose retirement, not come back out. So we've got this big gap. And so when you see a gap like that, what you see is companies are competing everything from a kid making $16 an hour at Target. That's real. Yeah, but I'm talking about a 16-year-old kid.

I've got a friend of mine who just got that job. And so what happens is that you see inflationary pressures from wages. So now the Fed's going, well, we've got to get inflation under control. And what they're trying to do to get inflation under control is drive off unemployment. The August job numbers were out. We're at 3.7% unemployment. We were at 3.6% in July. So they're actively trying to drive unemployment up, hoping that that will cool wages.

But the type of unemployment that goes up is going to be those entry-level jobs. That's correct. So it's not going to actually solve the inflationary pressures. It's not going to solve the nursing shortage or the cop shortage. It's not going to solve, you know, dev twos, developers, software engineers. Private sector is going to drive that. Nothing's going to change any of that that they're doing. That's right. It's only picking on the little guy.

That's why I was talking about the arrogance of the aristocracy, because they are looking at a number as a jobs number holistically rather than saying all right let's parse this and go okay uh by the way uber eats is way up well what does that really mean well i'll tell you what that actually means when uber eats goes up it your prices go up so your 18 pizza is now 22 your combo meal so that's what's really going on what's that guy doing what would he what would he have been but I mean, what's that guy doing? What would he have been doing with his life if he wasn't doing a breach? Well, he's probably in another hourly wage position, and so he's going, I can't. It's a side hustle.

That's exactly right. Are they counting the side hustles as full employment? No, they do not. So part-time jobs are in a separate category in the jobs report. So the unemployment, it's really where someone's choosing to be unemployed, meaning so they're not working a full-time job. Part-time really doesn't count, doesn't weigh into that. Okay, so if you're a professional in an A, B, or C position that makes $80,000 to $150,000, okay, there is a – you've got your choice right now right now you do right now you do if jerome powell and the fed has their way it could really squeeze that we could see and he's

predicting fourth quarter layoffs first quarter of 2023 layoffs 150 000 is not at the front line of the layoffs uh not at the front, but you're also seeing like larger companies will because they get concerned about the economy. You could see those people get laid off, and now you're going to have another rush for that position. So Facebook and Google and one other one, I was trying to remember who was in the article, came out and said, I believe it was Apple. If they don't have an increase in productivity, they basically threatened their team that if you don't have an increase in productivity that we're going to have to do layoffs. Yes. And yet the vast majority of their people are working from home. And then turn around, Tim Cook says at Apple, he says to his employees, get this, please come back to the office.

Oh, yeah. Well, exactly. That was different than Ramsey. Oh, yeah. We kind of just said, come back to the office oh yeah well exactly that was different than ramsey oh yeah we kind of just said come back to the office voluntold i like that word you created we voluntold you you're gonna voluntold yourself back to the office because this is where we were right well so you know what that speaks to two things number one tim cook is weak just being honest number two he runs the largest company in the world yeah but he's weak when he says that. Yeah, but he's afraid of his employees. There's the leverage issue.

If those highly skilled workers leave to go somewhere else, it's a lot harder to find them in the sense of getting them in for the same pay. So he's trying to save money by placating the workforce. So I'm not trying to take a shot at his character. I'm saying from a leadership standpoint. You called him weak. Well, yeah. Hello, Pot. I'm Kettle. I mean, that's a weak leadership standpoint. You called him weak. Well, yeah. Hello, Pot. I'm Kettle.

I mean, that's a weak leadership move. It really is. You can't plead and bargain with your employees. What you have to do is make it appealing for them to come in, or you put a clear directive out there that says, if you don't come in, you don't work here. And we've seen companies try that. Elon Musk did. He said, you know, you cannot work from home somewhere else.

That's correct. Interesting times right now. The chairs have shifted a good bit. It's a weird, I think it may be the weirdest job market I've seen in 30 or 40 years. That is correct. The most unique for sure. It's a very, very strange job market. For both sides, the hiring and the hired.

This is the Ramsey personality, author of the number one bestseller from Paycheck to Purpose is my co-host today. Open phones at 888-825-5225. Ruben is with us in Corpus Christi, Texas. Hi Ruben, welcome to the Ramsey Show. Thank you. What's up? Yeah, me and my wife had a situation where we have an opportunity to purchase a house. And right now we have about half of it or a little more than half. But we can pay it in full if we clear out her 401k. So my question is, should I finance that difference or should I just get out of the 401k and just have a free and clear house? Sounds pretty tempting, doesn't it? Yes. Yeah. So if you take it out of the 401k,

you get a 10% penalty plus your tax rate. So if your tax rate's 25%, that's a 35% hit on your money. So kind of what you just accidentally asked me was, Dave, I want to borrow money at 35% interest to have a paid-for house. And that would be, of course, ridiculous, wouldn't it? Okay. Okay, yeah. And we said whatever you told us. Well, I mean, no, no, it's not what I said. I want you to think.

You don't want to give up 35% of your money. Right. It's like 35% interest. Okay. You understand? Yes. Okay. Yes, no, I do. want to give up 35 of your money right it's like 35 interest okay you understand yes yes no i do okay i do so we just borrow it from the bank and i assume you're out of debt everything but the house but the house you're buying right well yes well we owe about six thousand dollars on the truck and thirty thousand on our car on her car so than that, we don't have any other debt. Okay, full stop, full stop, full stop. How much money do you have in savings?

Right now, $108,000. Okay, and what's your household income? About $80,000 to $90,000, I guess. Okay, you're probably not attuned enough to the things that we talk about here and we teach for you to actually do this, but I'm going to go ahead and tell you anyway, what you should do and what I would do if I woke up in your shoes. I'm guessing you're in your mid twenties. No, I'm actually in, uh, we had a house. Uh, the house was almost paid off, but we had an accident. Well, we didn't have an accident on January the 1st, a firework got in my backyard while we were asleep, burned the whole house down.

We got out alive, thank God. But, um, that happened and that's why we're in this situation we're in. We were already paying off our house. I mean, How old are you? I'm 47. Oh, okay. All right. What we teach folks is your most powerful wealth-building tool is your income. So getting out of debt and staying out of debt, first step is everything but the house, then the house. And when you make, you said $80,000 a year?

Between the, yeah. Well, I would say closer to $90,000 to $100,000, really, I guess. Well, I mean, what'd you pay taxes on, dude? Do you not know? Yes, I paid on $55,000. She paid on, I want to say, $40,000, so I think that's about right. That'd be like $95,000, okay. So a $30,000 car does not fit in this equation. You have too much tied up in something that's going down in value.

No, it doesn't fit at all. I would sell it. I'd get a cheaper car. And I would pay them both off. And with what's left, I would put it all down on the house. And I would put the house on a 15-year fixed rate or less, and then I would work on paying down the house because you have no debt at that point. But you shouldn't have more than half your annual income, and you potentially do or are very close to it,

tied up in things that go down in value with wheels and motors. So the chances of you calling about a 401K withdrawal and me selling your $30,000 car in the same conversation are fairly low. I know that. But it is still what you should do. And I hope I can convince you to think about that anyway. Because if I woke up in your shoes knowing what I know now with all the stupid butt stuff I have done in my life, and if you were to talk to one of the 10,000 millionaires that were in the millionaire survey that we did for the baby steps,

millionaires book, um, you would find that they would all say the biggest mistakes they've ever made are super expensive cars when they're still broke and you are still broke. You're not broken like most people, but you're, you don't have any money to amount to anything. Um,

you're just still in your early stages of wealth building. And so you need to get those cars cleared up. The best thing to do is I would rather you be driving a $10,000 car and have another 20 down on the house than you keep this $30,000 car and pay down on it personally. If I was in your shoes, that's what I would do. And so I'd have a couple of $10,000 cars. I'd put as much down on this house as I could, get it paid off, and then you're going to be in a position to really super build wealth. But, again, I think I just sold Mom's car, so I don't know if I'm going to get away with that or not. Yeah, you hit a lot there, Dave.

The $30,000 car, I've got to sell that, but it makes total sense, especially if you can come out ahead on that and put that towards the other cars. I think you said $6,000 in credit card debt as well it was on the other car it was the other car okay yeah so knocking that out is going to be huge and here's the other thing uh you uh need to think about in this case reuben is car debt is debt you weren't sure of that earlier in the conversation so it's like oh we don't want to really have debt, but we got these two guard debts, $30,000 and $6,000. That's debt.

It's a debt. Because if you don't pay it, they will repossess your butt, and then they will sue your butt, and that's what will happen. So it's debt. It has consequences, has problems. Heather's in Roanoke, Virginia. Hi, Heather. How are you?

Doing great, and it is such an honor to speak with both of you all today. You too. What's up? My husband and I are in baby steps four, five, and six. My question has to do with baby step four. My husband's a pastor, and he's opted out of Social Security. So I was wondering, do we need to be investing more than the 15 since he will not be receiving social security at all no okay 15 is sufficient you'll be very wealthy on 15 if that's all you ever do but as you know 15 is not our only plan it's 15 until until you get kids in college and you get the house paid off when the house is is paid off, then we max out everything. And so how old are you guys?

My husband is 50 and I am 49. Do either one of you have income that is not pastoral income? Yes, I do. Okay. Obviously, that has Social Security coming out of it. And if he does anything other than pastoring, that has Social Security. It's only his pastoral income that's exempt. We have about, in retirement accounts, close to, of course, the market's been down. So at one point, we were at about $100,000. Good for you.

Good start. Good start. So it's a good start. I would opt out. I would do exactly what you've done if I were in that situation. I'm not allowed to, obviously, because i don't have pastoral income that's that i can do a i can uh object to i can't be a conscientious objector to the social security system uh legally i can morally and i am morally i hate it uh but um but it is there still and so

um yeah if i were you i would opt out and i and I would save 15%. But then, you know, finish the plan. Get out of debt and house and everything, and you can. And so, Ken, we talked about this before. Your dad's a pastor. Yeah. Opting out, if folks don't know that are pastors, you have the opportunity for your pastoral income only, not other income. If you're a pastor and you have royalty from a book, that's taxable.

You don't get out of it. But your pastoral income, you can opt out as a conscientious objector, and you have to sign a document with the IRS that says on a religious basis, I object to the Social Security system. And you have to be able to do that with integrity. Now, if I were in a pastoral role, I could do that with integrity because as a Christian, I'm real sure the Bible says to be a good steward, a good manager of God's resources, and giving it to the social security system, by definition, is not a good use of God's money because it sucks. It has a negative rate of return

and it's a horribly run government bloated. It's the DMV of retirement. It's a mess. And so, you know, I can object to it on a religious basis with good conscience if I'm in that role. If you can do that and you're a pastor, then you need to make sure you have life insurance in place, disability insurance in place, and have a retirement system, a retirement plan in place. But you need those anyway, Pastor. Regardless, you got to do that anyway. So while you're at it, do good financial planning. Don't count on the mother state to take care of you. This is The Ramsey Show. Teksting av Nicolai Winther សូវាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប់ពីប្រាប� Thank you for joining us, America.

We are so glad you are with us. Open phones at 888-825-5225. This is The Ramsey Show. We're all about helping you get to a different place, a better place in your career, a better place in your wealth building, a better place in your relationships. This is all about moving up a notch, leveling up, as the important people say these days. Open phones at 888-825-5225.

Carl is next in St. Louis. Hey, Carl, what's up? Hey, how are you doing, Dave? So glad to talk to you. Really excited to be here the air with you. So my wife and I have kind of been in debt most of our life. And boy, I wish I found you 20 years ago. And we paid off so much of our debt. We paid off my car a little quicker. And after that, we started putting that car payment towards her car. Then we got sick and tired of her car and

started putting extra from savings to it. And we kept our savings at a set level and put the extra against that car. And I was talking to my financial advisor about a week ago, and she's like, oh, my gosh, you just got one more month of this. Just pay it off. You're going to feel so glad you did. And so I did. I paid off the car, and boy, did I feel excited. So the only debt we have remaining is our house, and we owe $45,000 on the house. We have $35,000 in savings. And my financial advisor was like,

oh man, you should just put $25,000 of that against your house. You can pay that off in four months then and just be done with it and then build your savings back up. And so I was kind of like, should I leave more in savings? Should I just follow that? Just take a big $25,000 chunk against savings savings just knock the house out quick or should i just keep paying on the house more and knock it out in about nine months good for you wow well i like your financial advisor i thought you might i mentioned the name to her so much of the time she hates debt she hates debt bad and that's good because your income once you get it all freed up is she's she knows the truth is going to become your most uh powerful wealth building tool

when you're not giving it all to someone else as a way of life and you're beginning to experience the emotions of these numbers in the last few months it sounds like and it's very exciting for you i'm proud of you yes okay so we teach a process very that comes from the same principles that she's leaning on that's why she and I like each other I can tell and so baby step one is save a thousand dollars you've done that okay baby step two has become debt-free other than the home and you've done that baby step three is have an emergency fund of three to six months of expenses. Okay?

Okay. So I don't want your savings below three months of household expenses. So if your household expenses are three grand a month, then we can go with her plan. Well, without a house payment, it would definitely be below that. Oh, you have a house payment. You have a house payment still. Yeah, once that's knocked out. With house payment, it's probably, okay, with house payment,

monthly expenses is probably, well, probably pretty close to $3,000. Okay. Well, no, that's not true. I don't think it's that much. I'd say it's probably, I mean, the house payment. What's your household incomes? Um, I make one 45. My wife makes 48, right about 48.

She's a couple of hundred a year. Okay. And so, um, um, yeah. And if you take, you said there's 35 in there, right, in your savings? Yes. And 40 or 45 on the house? 45 on the house. Okay.

So if we throw 25 at it, leave 10 in there, like she suggests, that means we have 20 left on a $200,000 household income, and you're done by Christmas then. Yeah, I'll be done by Christmas for sure. Yeah. Okay. I don't want you below 10. Are you okay with 10?

Borderline, but I just want you to gauge everything around you and be very wary because if you have a $15,000 event, we've got a problem, dude, and you make $200,000, and that's silly. The other idea I had that I kind of threw at my wife because we were putting – no, the first thing was take our house payment, put our two car payments against it, and then put the extra we're putting from savings, which takes us to a house payment of $5,100 a month. We're just going to keep cranking it up.

And so my other idea was every month, you know, pay that and then pay an additional $5,000 from savings and kind of see how we feel as we're going with that. That would be okay, too. Yeah, I just don't want – if I could establish real comfortably what three was, I mean, I'd be more comfortable with 15. I'd probably do it if it was 15 but okay people often call me and say i have enough money in my savings account to pay off

my house today and it would leave me with one thousand dollars left in my account and i would tell them no and i i'm the get out of debt guy and i'm still telling them no because i don't want you sitting there with one thousand dollars at this stage of your financial plan now at the beginning of your financial plan when you're broke and got a bunch of other debts and everything else you're living on beans and rice but this is more intentional than it is intensity at your stage and so I just want to be wise and careful even though I'm as excited as you are to get you out of debt so i'm guessing that either way you're out of debt by christmas yeah it's going to be really close if not i mean if we live a bit more near it's going to i think we're i mean another way you could another way you could

work it is uh you know another you know we're just keep manipulating the numbers here but if you said okay let's just call it three to six months. Let's call it 20 grand throw, the rest of it at it, and then just start chunking on the house. You're still going to make it. And if you don't, reach over and pull 10 out and take it down to 10 for one month. Yeah. In December. But just go, you know, December I'm done as long as I don't go below 10 in my savings.

But if the math works, the math works on throwing it at the debt or it works on throwing it in the account and then pulling it out of the account. So either way is fine. But I would not stop. Are you saving for a 401K? I would not stop that. Absolutely. Yeah, my wife puts about 11% in.

I'm putting about 7% in. Then I'm putting about another 8% into Roth IRA. Yeah, you've got the right numbers, and I wouldn't stop that either. The difference is only whether it's Christmas or whether it's March. That's the only difference. And when you're 75 years old, that date won't matter. I like the advice, Dave, and I'd actually be a little bit more cautious with that savings because if it's me and I really want to get this because it's just intensity, he sees the finish line, how could you make $5,000 to $10,000 extra?

That's what I'm looking at. I like that savings posture. I really do, having that just in case a big event happens because you're talking about the difference between three months. So it's great advice. I certainly agree with you i wouldn't personally i started getting a little nervous listening to that going lower and 15 myself i was like 10 or 15 has got to be your floor yeah for sure but i mean you could just throw money you know leave the savings like it sits and throw

money at the house and then when you get within striking distance of taking it down to 15 then do it in one lick yeah then you're sitting on savings the whole time while you're waiting to do it and um that won't mess you up either you'll still get there in exactly the same period of time exactly and so yeah it's a great place to be though carl i love where your head's at and i i like that you found a financial advisor who's understood that getting out of debt is the key to building wealth because not having any payments you know what you can do if you don't have any payments anything you want i mean it opens up the door baby it's uh americans live in such bondage that we don't even know what it's like to be free yeah i was getting ready to say if you're new to the show and you're listening and watching carl is a great example of where you can be you know he started off by saying i wish i had found you 20 years ago but they've jumped into the process and

now he's look at the finish line he can't get there fast enough it's a wonderful wonderful place that's possible yeah it it is amazing that um that you can you know run for two hours and a half marathon and still have enough gas left to sprint the last 100 yards once you see the finish line. That reminds me, Dave, when I was cramping up and had all kinds of issues a couple years ago, and I was like a wounded wildebeest out there, and then I saw the finish line, and I just gutted it out. It hurt so bad, but it was like, oh! We were running beside you. We were cheering you on.

I don't know if what I was doing could be described as running. Well, we were in motion going forward. Drag a leg. All in the name of the Coleman Project. Oh, man. Glad I retired that day. Fun stuff. This is The Ramsey Show.

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