The Ramsey Show - App - When Should I Go Full-Time With My Side Hustle? (Hour 2)

Episode Date: August 31, 2022

Dave Ramsey & Ken Coleman discuss: Accepting a gift that would pay off debt, Going full-time with your side hustle, Buying a car after getting laid off, Is $1.5m in real estate debt worth the risk? 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, 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, amazing relationships. Thank you for joining us. Ken Coleman, Ramsey Personality, number one best-selling author of the book Paycheck to Purpose, is my co-host today.

We'll be answering your questions about everything you want to talk about. The phone number is 888-825-5225. Samantha starts this hour in Minnesota. Hi, Samantha. How are you? Hi, Samantha. Hi, Dave. This is Allison. Thanks for taking my call. Oh, shoot. I'm sorry. I said my name. Oh, boy. I'm starting off good here. My question is that I am wondering whether I need to sell my home to pay off the rest of my debt or whether I need to accept a gift from my parents to pay off the debt. Okay. How old are you?

I'm 35. And how much do you own your home? I owe about $250,000. How much other debt do you have? About $12,000. I have worked that down quite a bit thanks to your help, but I keep on bouncing back and forth between baby step one and two now, just based on recent events that keep putting things in my path. Okay. Like what?

But like last summer, my AC went out. This year, I've had a lot of vet bills. What do you make? I make $80,000 a year. Okay. Well, vet bills and an AC should not cripple you making $80,000 a year. I have made a lot of progress. I'm sorry? Yeah, I have made a lot of progress.

Okay, so how quick would you pay off $12,000 if we took all this out of the equation, if it was just up to you? Just up to me. I could probably get it out, you know, and then, I mean, if I took on like another weekend job, probably, you know, six, eight months. Yeah. That sounds right. Okay.

And so you don't have to sell your house to get out of debt? My house is a little bit more than the 25% that you recommend. A little bit more doesn't make me sell it. Okay, your house is not out of line. I mean, your house is close to out of line, but it's not 50% of your take-home pay. No, no. You know it's it's it might be 28 or something right no well with the hoa it's 30 yeah that's not going to kill you with

my debt it's not going to kill you this is a guideline to keep you from being house poor so it's not a it's not a pharisee thing where if you're one and a half percent over you got to sell your house it's not it's not what we're doing. We're just trying to say, don't be house poor and you're not house poor. I'd rather you be a little bit lower, but I don't think you have to sell your house unless you want to sell your house. Okay. So if mom and dad give you $12,000, uh, what's the downside of that? Are they controlling? Are they going to be giving you a hard time or? No, no. I think, you know, the, I would want to pay it back to them you know anyway just you know before they retire that's not it's not a gift that's a loan so the downside is they don't

really have the 12 000 they're too broke they have it how much do they have are they millionaires yes then they don't need $12,000 from you. It's a gift. Hello? Yeah, I'm here. It's a gift. Why can you not accept a gift? I just don't want to feel like I'm enabling myself in a situation that is going to, that is, that isn't good for me. Like, cause for example, the loan I have on my house is a 30 year loan. It's not a 15 year loan, like you recommend. So I, you know, I've, I've been kind of coaching

myself to get in more of the mindset where I get into, you know, a house, 15-year loan set, you know, interest rate, and then potentially sell this house. And I just feel like if I accept that gift from them, I'm kind of enabling myself. The $12,000 is going away still. The house is still exactly the same situation. So it's not enabling the house, it's enabling the debt, but you've already broken the cycle on the debt, haven't you?

Yeah, I think so. I hope so. I mean, just the fact that yeah. Have they given you money before and you've messed back up and fallen off the wagon? They have given, they helped me with the down payment on my house and I did pay that back to them, though.

Okay. All right. Okay, here's the thing. You're 35 years old. You do not have to prove your maturity to your parents by repaying. It's not like, well, she needs to learn her lesson.

No, you don't. That's not the thing, okay? That's just not a thing. If you can accept the gift and there's no strings attached and your parents aren't freaks and they're not dogging you about going on vacation after you got a $12,000 gift from them or something like that, then I think you should learn to accept the gift. You need to learn to be a receiver as well as a giver. And no, it is not a loan a a receiver as well as a giver and no it is not

a loan do not take it as a loan either don't take it or take it as a gift and um and i don't think that makes you irresponsible and i don't think you're enabling nothing you've told me indicates that i would tell you you know i would dave i think i hear some self-loathing or some you're still punishing yourself like you've bought into the baby steps and you believe it. And listen, you've done a great job to get to this moment. You don't need to feel guilty about receiving a gift that will fast forward you being able to start paying your house off. And I just sense that you feel just the fact that you said,

I don't want to enable like you're still feeling shame and guilt over maybe past financial decisions. I think you got to be free from that. Yeah. Rear view mirrors are smaller than windshields, and that's called grace. So you look in the rear view mirror enough to stay aligned, but it doesn't define your future. Your future is defined by the windshield. So here's what I would do if I woke up in your shoes.

And then you can go do whatever you want. Okay? Number one, as I said, I'm not going to do anything as a loan, period. No relative loans, no loans. We're out of the debt business, period. Shifting it from relative to relative debt from credit card debts, dumb idea. Just pay it off. Forget it, okay?

If you're going to take it, take it as a gift and a smile. No strings attached, no problems, number one. Number two, that leaves us with just the house then, and the $80,000 income and a 30-year mortgage is 30% of your income, including HOA. Do you have to sell that? No. Should you reevaluate it? Yes.

And what I would do if I woke up in your shoes is I'd take the gift, I'd pay off the debt, I'd set my budget up, and I'd work on my career to get my income up enough that I could start paying this house like a 15 at a reasonable rate so if you got your income to 100 000 this whole thing changes and so i'm going to give myself 36 months to get my income to 100 to 110 otherwise i'm going to talk about selling the house if i'm stuck at 80 for the next five years i'm probably going to sell the house but if i can see a curve on my income going up and this house starts to be a smaller and smaller percentage of my income,

therefore I can put it on a 15-year schedule because I'm debt-free because I accepted the gift and I'm on a budget, then I'm keeping the house. But nothing, you are a very precise, very detailed person. And that works to your advantage. In this case, you have got a little bit of paralysis of the analysis. And so, in other words, cut yourself some slack, kiddo. You're doing so much better than your emotions and your sentence structure tells us you think you're doing.

So, I think you're doing great. That's how I would play it if you want to. This is The Ramsey Show. We'll be right back. Ken Coleman, Ramsey Personality, is my co-host today. Thank you for joining us. In less than two weeks, we're kicking off the Building Wealth Tour. And it's been incredible to see the buzz around these life-changing events. At these events, you'll learn the best way to buy, to build real, lasting wealth.

It's me and Ken Coleman, Dr. John Deloney, George Camel, Rachel Cruz. Yesterday, we announced a sellout in San Antonio, and there was a few tickets left in the second Phoenix night. Today, I'm going to tell you, Phoenix is sold out both nights. So it's gone. It's gone. We have one city that is not sold out. That's Minneapolis, and they have less than about 60 or 70 tickets.

So if you want to come to the live event this fall called Building Wealth, you are going to be in Minneapolis unless you already have already have your ticket passes uh start as low as 25 you can get a four-pack starting at 60 bring a group of your friends and come out to building wealth i'll be speaking we'll be doing panel discussions we'll be signing books taking pictures hanging out with you guys and we are ready to go so phoenix september 12 and 13 sold out thank you pho, Phoenix. Thank you, KTAR listeners. We love you guys. Sacramento, November 1, sold out. Minneapolis, November 10, almost sold out.

I'm not kidding you people. Get your tickets. San Antonio, November 15, sold out. November 15, sold out. It's exciting. Oh, it? 15th. Sold out. November 15th. Sold out. So it's exciting. Oh, it's very exciting. I'm glad we're going from Minneapolis to San Antonio. I'm a southerner, and I need to thaw out after that November Minneapolis day.

But that's a great city. Why are we that cold, Willie? No, it's just a bad joke. Minneapolis is a great, great, great city for all things Ramby Sluice. Always great crowds. All of these markets, as you can tell by the response. These are all 3,000 to 5,000 person venues. Yeah, just unbelievable response.

So thank you, guys. We appreciate it. Turns out there's still a lot of capitalist pigs out there. They want to learn how to build wealth. That's us, man. Sound effects brought to you by Dave Ramsey himself. We believe it, man. We believe it.

We is that. All right. Brock's with us. Speaking of Minneapolis. Brock, do you have your tickets yet i actually do i'll be there awesome very nice awesome you know anybody needs to come uh well probably almost everyone in minneapolis to be honest with you but for sure for sure there's four of us coming okay hey for sure i'm going to give you two more tickets to give to some of your

friends okay that's fun all right. I will definitely take those. I've got some people in mind. Okay. When we get done, I'll put you on hold. I'll send them to you. How can we help? Well, I need some advice here, speaking of being a capitalist pig. Basically, the last four years, I've been working at an electronic repair shop.

And it's been great, but I have determined it's my time to leave. And now I'm at kind of a weird crossroads. So it's either in the last four years, I found a side hustle that I've been extremely blessed at and in doing, and essentially for the part-time work, it's been equivalent to my current salary per year, or it's either I continue doing my side hustle and make it into a full-on business, or maybe just because I do have a background in some sort of IT working at this electronic repair shop, would it be better to go more corporate style IT by going through like the proper certifications, get a corporate 40-hour a week job? So I'm essentially trying to ask, when did you determine that it was a good fit to try to be an entrepreneur and to potentially make more than what a corporate safe job would be?

Well, I want Dave to answer that from his standpoint, but real quick, Jim Collins, who wrote the book Good to Great, and a whole series of books under really the most famous research done on company strength. He once got a question like this from one of his business school students. And he looked at him and he said, what makes you think the corporate job is so safe? Because you can't control a leader doing something crazy like an Enron situation. He said, if you want to paint your own portrait with your own business, I would tell you that that is more safe long term because you are controlling what you are doing with the business. And you've proven to this point that you've got this thing going and right now sustained it at a level and you could grow it, presumably. So the corporate IT job, to me, it could be a both and. Would the corporate IT job make you more money in the short term and allow you to put more resources into the

side hustle until you get that side hustle built up to the point that you can walk from the day job right into the side hustle? But that is also based on the fact that would you go all in on your business right now if you knew it would pay you what you're making now and then some? So what's the answer to that question? Yeah, I mean, the answer is like right now, you know, I'm currently at, you know, my salary position. I'm doing full-time, and at this point, I've already racked up all the part-time hours besides, you know, going into sleep schedule. So I don't think I could expand it anymore, whether I'm in my current job or a different job. But in terms of being able to put

into a viable business, essentially the only thing I'm really missing is retail and then retail location, and then obviously putting all my full-time effort into it. So how much cash would you need to have? Because we don't want you to ever go into debt to try to expand a business. So how much cash would you need in the form of resources to be able to go full-time on the side hustle? I would say a good nest egg would be anywhere between 80 to 90 to start off with. That should cover my first year, essentially. Then the corporate IT job.

I'm already halfway there. Okay, so you're halfway there. So let's call it your 45, 40, 45. And so the corporate IT job would become a very viable option for me, if I were in your shoes, if it allowed me to make more money so that I can get to that nest egg faster. Okay. It's a stepping stone, though.

It's not an answer. It's just a stepping stone. That's right. It's not long ball. Right. And if I were to take some sort of corporate IT job, it wouldn't be necessarily exactly what I'd be doing on my own business. What is your own business?

So essentially I buy and sell and refurbish electronics that people don't want. And then I, you know, sell them on online platforms. And then obviously corporate it job is going to be more so, uh, trying to sustain and customer or not customer client help, or, uh, even, you know, internal helping of it issues. Yeah, that's brilliant. Okay brilliant okay yeah your side hustle is killer it's killer um there's really no wrong answer here what are you making now a year currently my salary is about 55 and then i'm on track for this year my side hustle i should clear about 50 to 60. can you live on 50 to 60 i mean i used to be living

on 40 so no i wouldn't ask i said can you live on 50 i didn't ask what you used to do are you married i could nope i'm single well my girlfriend is probably going to be listening to this can you pay your bills yes on 50 to Yes, and I have no debt. Can you not open with the 45 you've got and keep making 50 to 60? So right now I just got out of the Marine Corps Reserve. I just did my six years. So the reason why I'm leaving my current job is because I'm trying to continue my service, and I'm thinking of going National Guard or Air National Guard. So that's going to

be a natural break since I'll have to leave potentially for three to nine months to get trained in this new military occupation I figured on my way back once I finally get back then I would probably start the business or continue to get certifications to go. Listen I'm a huge fan of the National Guard and the military. Thank you for your service. I'm so confused why you're confused. Why do you need to go do that? You know, I just feel like it's just a calling that I have. I just enjoy, I enjoy the people. I like the clowns, maybe not the circus in its entirety, but you know, be able to to get some sort of change with and and lead people is what i really enjoyed at least in the marine corps

feels bifurcated to me it's like you got three different things you're passionate about you need to pick one yeah i i would agree i i think it's going to hurt your dream of making the side hustle the full-time gig you're already making 45 00050,000 a year, doing the thing you think you want to go do love. Go do that and lead people. And serve your country by being a small business person. I'm not opposed to you being in the military, but I would pick. I wouldn't take nine months off, shut your business down, then come back and try to open it. You're chasing your tail, man. You need you make a call here this is the ramsey show Ken Coleman, Ramsey personality, number one bestselling author, is my co-host today.

Open phones at 888-825-5225. Tracy is with us in Fort Myers, Florida. Hi, Tracy. How are you? Hi. It's a pleasure to speak to you both. You too. How can we help?

So yesterday I was laid off. Whoa. Well, you know. Sounds like it was unexpected. It was. However, I'm in a rare situation from, I think, a lot of people in that I recently came into some inheritance, a decent chunk. I am completely debt free, including the house. So and it's within like my mom died on Christmas Day and I it's all this has been a heck of a year anyway.

Thank you. And so I my job, I'm in H.R. I had sweet privileges where I work. And so the irony is I sold my personal car that I hadn't driven in a year last week. And now I have 13 days to get a car. So no notice at all on this layoff. That's just weird. No, yeah.

I mean, it is what it is. I'm just trying to roll with the punches. And I think the scariest part for me is I now have more money than I've ever had. And I still, and you know, you're not supposed to make big major decisions with grief being so recent. I, what was the car that you sold last week? What was it? It was a 2012 Hyundai Elantra.

And what did you sell it for? 4,000. And they put it online for 8,900. Whoa. They turned around and re-flipped it on you, huh? Oh yeah, I mean the pictures, while I was waiting for them to come back with how much they were going to give me, the pictures that I had to place and everything on it that they end up bringing back to me. So it was crazy. Okay, so how much money do you have in cash? Oh, I have over $500,000. Okay, so go buy a car? What's the problem?

Well, because I am not used to having this kind of money, and my mindset is still that I should go get a cheap car, a Hooptie. But I know after working in the realm that I've worked in where I could drive a different car all the time, I know what I want. I'm just afraid to spend that kind of money because I've never had that choice before so I just feel like I need permission from you to say yeah go out and spend 40,000 on a you I really want to Jeep Grand Cherokee okay but they're expensive okay are you buying it one year old one or something a couple years yeah I don't know that I'd want to go more than two or three okay what did you make at your job that you got lost 75 and what are you going to make

it the next job 85 i hope so and honestly i'm kind of i'm not i don't know that i need to look right now with the holidays i need to it's going to be crazy with the first year without my mom she died on christmas day so i think this is a sign that I should just kind of not rush into anything until maybe after the first of the year. You guys tell me, but that's kind of where I'm thinking right now. Okay, there's two separate questions on the table. Number one, let's deal with the easy one. Go buy a car.

And yes, you can afford a $40,000 car. You have a half million dollars cash in the bank. You make $80,000 a year. You do not want to buy a $40,000 car. You have a half million dollars cash in the bank. You make $80,000 a year. You do not want to buy a $70,000 car. No, I would never. And you do not need to buy it. Well, you might. I mean, I'm just making sure.

Okay. Okay. And I mean, I wouldn't spend more than half of what you think you're going to be making. Okay. And so 40 with you making 80 is okay 60 with you making 80 is not okay right just because you got the money okay so that that would be my guideline and so that gives you permission to do a lot and just take and take your time on that go rent your car for a week so you're not in a hurry and get and pay too much for a car and that's what i was afraid

of yeah just slow down go just go down the rental car place and rent a car for a week okay and just rent what you think you want to drive by the way go ahead and rent you a jeep cherokee well the irony is that i just got laid off from a rental car company so that's why i know what i want to drive okay this gets better and better every minute yeah okay i've had almost two years i've had almost two years of driving pretty much whatever i like so i know what i want let's move on to the next question and i want my career expert next to me to step in but i'm gonna before he does i'm just gonna be papa dave okay okay you lost your mom and then you surprise got kicked in the teeth and you walked in and got devalued instantaneously last week so your confidence your confidence is a little bit shaken

and um i would prefer you get back on the horse quicker than the first of the year for that reason because i want you to get back on the horse because i want you to regain some of your some of your swagger and just the grieving of your mom which is fine and normal and you should but also in the middle of that you had somebody walk in and say you don't have any value hit the street and I

want to tell you you got a lot of value thank you and when you land that new job that's them telling you you got a lot of value and I don't want you to wait until the first year to hear that message again okay that's just papa dave talking but ken no i appreciate it i agree with that um because you're really a victim of a lot of fear out there around recession and things like this and a lot of companies they staff up and then they staff down and it's really wasn't personal at all it's why you really didn't even see it coming. We hear about this every day. My question is, do you have a severance at all?

Yeah, just two weeks because I've not been there quite two years. Yeah. Well, I think I would echo Dave. And what I want you to do, though, is I like the idea of reflection. And you've got at least a month of just kind of going, where do I want to go? And looking into all of the possibilities. But one of the big hiring times for a lot of companies is in November. And so I would actually take advantage of getting back on the horse pre-holiday. We still have a very hot job economy. So I want you thinking now, because you've got financial freedom, what is it that you really want to do and why do you want to do it?

I'm just curious. You got something at the top of your mind without trying to make it sound pretty? What is something that you would do? What is it? Tell me. I've always wanted to be in real estate, but I'm afraid because the market is so saturated with realtors. Markets slow down.

That calls them out pretty quick. Yeah. I mean, I've thought about this for 10 years, and I've just never done it because the people who are in it that I've asked the questions, I mean, they're real. You're going to pay a lot of things out of your own pocket. You might not make money the first year. You know, that's scary.

Now I have that freedom. I know I could, but I'm still – it's hard for me to wrap my head around the amount of money that I have. And so in my mind, I keep trying to forget about it so that I don't go crazy. Well, okay. So I want Dave to comment on the real estate. The guy's been in real estate a long time and he knows. But I just want to tell you something that now is the time for you to do this. You've been thinking about this for 10 years.

You didn't ask for permission from me on this issue. I'm going to give you permission without you asking. You need to get qualified now. Now is the time for you to get studied up. And I want you to find some different real estate people who have a much different outlook. You've been hanging around some people who are giving you the negatives. I don't need to know the context of those conversations, but the fact is you can win and you can win big, even in this real estate economy, if you are committed to do it, committed to get good at it, committed to work with a broker who's going to mentor you

and guide you and invest in you, you can do this. Yeah, and you need to do it starting next week. Go ahead and get your license signed up for to take your test and jump in and find a broker and get all your groundwork and everything done this fall to where January 1 you hit the ground running wide open cooking cooking with gas in january 1 yeah you know in a new chair in a used jeep cherokee yeah yeah and listen if you make zero money for six months and it starts to scare you go get a job okay after january okay right but yeah but i think you you the time, align yourself with a great broker, get the groundwork.

Because it's going to take a little while to study for, sit for, take the test, get the results back, get signed up to the Board of Realtors, all the stuff you do. You got to, you know, it takes a hot minute to get set up. You don't just walk in and in a week you're selling real estate, in most cases anyway. And so, yeah, that's exactly what I'd do. I would start. I would just go ahead. It's time. Burn the ships.

You know, it's an old phrase. Just you approach the island, you burn the ship, I'm all in. I'm not going to fail. No way home. No way out of this deal. You know, Dave, that is true about real estate or any sales job that's straight commission. At some point you've got to commit to go, I'm i'm not going to quit i'm gonna do whatever it takes and and you know in fort myers florida you're gonna be just fine yeah you're gonna be just fine that's correct it's

not exactly a slow market yeah and it's not like you have to wait till winter's over you're in fort freaking myers i mean come on so it's. The way the snow thaws, I don't think so. It's not going to be a problem. It's true. Alright, there you go. Get after it, kiddo. Let us know how it turns out. This is the Ramsey Show. We'll be right back. Ken Coleman, Ramsey personality, is my co-host today. Open phones at 888-825-5225. Gary is with us in Chicago. Hey, Gary, welcome to the Ramsey

Show. Hey, Dave, how are you? Better than I deserve. What's up? Thanks for taking my call. It's really a pleasure. My question is this. My wife and I, we're 50 years old. About 10 years ago, we figured out what we wanted our retirement to look like. And I should mention we found you about one year ago. So pre-Dave Ramsey, we developed a plan. And we wanted our retirement to look like a vacation property in Keough Island, a vacation property in Park City, Utah, and somewhere else, a third primary home. And so what we did was we went out and bought a rental property in both of those two locations. Took out a mortgage on both of those two. Wado still had a mortgage on our primary residence as well.

For five years, as we bought those properties, we got them about five years ago. We've been short-term renting them. They cash flow positive. They've been great. We have better than 50% equity in all three of our properties, our primary residence and the two rentals,

but we realized that's not the Dave Ramsey way. But we've got a good income, a good net worth, the cashflow and positive. We're about 10 years away from retirement and it's like our dream. So I kind of want to know what you would do. It sounds like based on your personal experience, we've got some risk. Well, I think everyone would agree that debt equals risk and more debt equals more risk agreed very much yeah we have no other consumer debt so that means you have less risk than other people who have a lot of debt but you have some risk so i can't tell what it is so how much mortgage debt do you have so to keep the numbers real simple, we owe $500,000 on each of the three properties.

Our primary residence. So you have a million and a half in mortgage debt. Correct. Better than 50% equity in each of those properties. I heard all that. I got all that. Yeah, okay. And your net worth is what? One point, I'm sorry, 3.3 net worth. So what's the other one and a half in?

Or 180? worth so what's the other one and a half in one eight so it's it's uh four one k's and uh brokerage accounts okay and how old are you guys we're 50 and our household income is 400 000 okay i'm not panicking about this um the only thing i would adjust is let uh you know here's the thing okay it's not a dave ramsey thing um it's just a when you when you scour the people who have a net worth of 1 to 15 million we find in the data and we did one of the largest studies of millionaires ever done a few years ago we find in the data some commonalities meaning that they're causal okay these things caused people to have this net worth uh one is they did what you did they built a really nice retirement plan nice 401k they usually got a million million and a half like you've got in your 401ks your brokerage accounts your retirement accounts okay two is they have paid for real

estate their home so as an example a scaled down version of where you are what we found in the millionaire study a lot was a guy or gal a couple with a six hundred thousand dollar paid for house and a million dollars in their 401k. So I got a million dollar net worth or 1.5, 1.6 net worth, and they have zero debt. And we find them at 52 years old, a lot like that. Like we found thousands of those that were millionaires. It sounded just exactly like that. So what we've figured out is that paid-for real estate going into retirement, having zero debt real estate or anything going into retirement, is a stabilizing factor.

And it makes your retirement a lot less stressful. So you said you're 50? We're 50. Yeah. And so if I woke up in your shoes, would i panic and go oh david says i gotta get out there no this is all real estate debt okay uh but you make 400 freaking thousand dollars a year so how fast do we pay off with all these rents coming in too how fast do we pay off this million and a half well i'm definitely gonna do it in a decade yeah so they met you and online

what we've been doing we've created a little debt free chart and what we've decided to do we've taken the rental property with the highest interest rate on it and we're going very intentional with that one so all extra income whether it's household or whether it's rental is going to court against that one and then we'll pay off the other rental and then what we plan on doing as we retire is whatever equity is in our primary home we're going to downsize into something that size so we have no primary mortgage on our primary home well or here's the other thing your million eight will be 3.2 in seven years if it's in good mutual funds yep which it is and so you reach in there and touch it when you hit 60 and just pay it off and keep it if you like the primary you don't necessarily

have to downsize the primary how quickly can you pay off a million dollars of the million and a half well i've got the one house planned at four years it's a half million on that one so i would think two we could do in eight years probably quicker because we'll get one paid off exactly yeah yeah yeah i'd like to see you do the whole thing in about eight i think we can i think we can yeah so if you get to 59 and a half you got anything left just take a little out of your Yeah. Yeah. I'd like to see you do the whole thing in about eight. I think we can. I think we can. Yeah. So if you get to 59 and a half, you got anything left, just take a little out of your retirement account and pay it off. If you like all three properties still and you still like your plan, the only thing I

did was disturb you about the debt, setting you up on a decade or less to be clear of the debt. If I'm in your shoes, I think that's fine. And let me tell you what will end up happening. You going to get obsessed with this you're going to end up doing it quicker i've already i've already got a side hustle with my income i'm going he's doing driving uber making 400 guys what is your side hustle do you mind us asking uh yeah it's logistics so there's companies around chicago that will help you deliver you deliver things it's logistics. So there's companies around Chicago that will help you deliver things. It's like doing DoorDash, but just not DoorDash. That's hilarious. $400,000 and he's got himself

a sign on something. I love it. My wife thinks I'm nuts. You are. Well, you kind of are. Yeah, you kind of are. What do you do for a living? We're both in sales management. So I hear you talk about the virtues of sales careers we've been living sales our whole life and couldn't change it for a thing great yeah well that's the other thing here's what happens okay as you now you have a new goal that's got you fired up your sales are going to go up yeah but the level we are in sales now we're out of the commission world we're in like the salary and bonus because we're in management now so it's salary and bonus so going up helps a little bit but not as much as it would if you're

commissioned you know i'm saying yeah you know you could do a side hustle with sales training for non-competing companies you make a whole lot more in doordash thanks exactly just what do i know but yeah anyway you're doing great man i'm so proud of you it's so cool i appreciate you getting fired up on our stuff and all it's going to do is just increase your peace level as those debts start dropping off and even putting them in the crosshairs and knowing when they're going to drop off the peace comes just from doing that even though you hadn't gotten there yet just knowing you're going to be able to pull the trigger and knock them out that's the thing so yeah that that's beautiful yeah you'll probably end up doing the whole thing in about six years that's going to be my production my

prediction and uh just just this guy he his mind is already moving. So that's what, I mean, we see people do it all the time. Very seldom do you hit your goals on this stuff. You almost always hit them early. That's right. Well, and when you're focused, right, whether it's losing weight or relationship growth, when you're focused towards a goal, then what happens is things begin to move in your favor that you didn't see. And we hear that all the time. And it's just a function of intentionality and hyper-focus activity. And just things fall your way. And I actually would say, you know what? You're getting bonus probably on team performance.

Instead of the DoorDash, I'd be working with these individual team members that you and your wife manage and lead. Help them grow. Help them hit new goals. Boy, is that going to be fun, and it's probably going to fatten those bonuses, I would guess, if I was leading a sales team. Yeah, I think there's a lot of stuff you can do.

It's fun. It's fun. I mean, but your overall plan is not out of control, but keeping those debts forever would not be my recommendation. So let's just develop a plan for getting rid of them in some reasonable period of time, forever would not be my recommendation so let's just develop a plan for getting rid of them in some reasonable period of time and uh and or when you hit 59 and a half cash them out cash out because you're going to be sitting on in excess of three million dollars probably in excess of

four million dollars in those retirement accounts at that point not counting your real estate and the real estate will have continued to go up too so you you're going to retire at 65 with a $7 million debt worth, give or take. Wow. That's a trek you're on. Especially if you continue to make a freaking $400,000. That does help the equation a little bit. But up through some number of those years. So it's going to put you in a great, great place.

Well, Dave, I can't be a baby steps millionaire. I don't make $400,000. 33% of the people that we found that became millionaires in North America, starting from nothing with no inheritance, did so with an income less than $100,000. The third most likely category of career to become a millionaire in the study was teachers. Number one was engineer, number two was accountant, number three was teacher. So there you go. Those are facts.

They're not wishes, and they're not a political statement. So if you don't agree with them, you're what's known as wrong. This is The Ramsey Show. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.