The Ramsey Show - App - Why You Need Title Insurance on All Real Estate Transactions (Hour 1)

Episode Date: June 10, 2019

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Music Music Music Music Music Music Music Live from the headquarters of Ramsey Solutions Broadcasting from the Dollar Car Rental Studios, it's the Dave 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. This show is common sense for your dollars and cents, and common sense is so rare it's like having a superpower. We're glad to have you. Thanks for hanging out. Open phones at 888-825-5225.

The call is free, and some people say the advice is worth exactly what you pay for it. 888-825-5225. Monique starts off this hour in Minneapolis. Hey, Monique, how are you? I'm well. How are you? Better than I deserve. What's up?

I have a question for you. I'm wondering if I should use some of the money that I have in stock or retirement to kickstart my debt payoff. I do have three, soon to be four children, and I would say my total debt is a pretty big number, but wanting to kickstart things and making sure I get on the right path so I can start saving, et cetera. Get to the other steps. Not counting your house, how much debt do you have? So I have about $150,000 in debt.

Okay. And what's your household income? By myself, I'm at $140,000. I'm sorry, are you by yourself? Oh, I'm married, but my husband filed for bankruptcy individually, so I kind of keep his stuff separate because all of his stuff has rolled into his bankruptcy, and so we've just kind of separated things so that it wouldn't impact the household financials. So, yeah.

Okay, and so how much debt does he have in the Chapter 13 bankruptcy? He has roughly $120,000. Okay. What does he make a year? $165,000. Okay. And what do you make a year 140 okay all right so one way of looking at this is um that you have a three hundred thousand dollar income i don't understand why you're in bankruptcy well he he's in bankruptcy because at the time you're married we are in bankruptcy because at the time... Honey, you're married. We are in bankruptcy. Right. Okay. Okay, fair.

So at the time that he filed, he was not working. He was just kind of like at an odds-in job. But you made $140,000 a year. Yes, and I still have my $140,000 in debt. Yeah, $150,000, yeah. Okay, that's what you told me. Yeah, $150,000, yeah. All right. Okay, let's stop.

Okay, then how much money do you have, either one of you have in accounts, stock accounts or whatever, that are not inside of a retirement account 8k that are not inside of a retirement account eight thousand dollars yeah okay all right good okay and i mean i have money saved in my like savings account so probably like another 10k for you want to call it emergencies or whatever but okay all right so here's the way uh number one i will tell you that uh in studying 10 000 plus millionaires and in doing this for 30 years i find virtually zero married couples get ahead financially and become wealthy regardless of their incomes if they don't work together as one unit. You are not doing that.

You're violating that. You've got to work together as one unit to solve these things. The bad news is you have $270,000 in debt. The good news is you make $305,000. And that's the way I would look at it if I were you based on 30 years of me doing this, if you want to win. If you want to be divorced, then go be divorced. But you can't have, you're going to have to paint or get off the ladder. So you've got to decide what you is.

And you're not two individual units that happen to be in the same household. He's not your roommate. He's your husband. And so you guys working together for better, for worse, and richer, for poorer, unto thee all my worldly goods I pledge is the old-fashioned marriage vows. And that's how building wealth works for a married couple the most often. One percent chance of making it if you don't do that. That's your probabilities. Based on 30 years of me doing this.

I just don't find it happening where you drag along a wounded partner instead of standing up, dusting off, and we hold hands and we hold each other and we get in a death grip of a bear hug and we work through this crap together. So I would lay out a strategy with your fabulous income to clean up your debt. If you lived on $50,000 a year household income as your living expenses, which would be the normal household income in America is $54,000, by the way. So if I put you on a normal American's household income, not counting taxes, that would free up $250,000 a year to attack $270,000 in debt. Minus taxes, that means you're 100% debt-free with the bankruptcy dismissed in two years. I just don't know if that's possible because of the cost of child care, because we have three soon-to-be-four kids. You just told me child care is going to keep you from putting $250,000 on it.

You really believe child care is $100,000 a year? That's the way you just stated that. Okay. Not, not, okay. Fair. Okay. It's a minor issue. It's not 40 a month, though.

It's mathematically a non-starter. So, it can, you know So are my numbers exactly right? Is it going to take you exactly 24 months? No, it might take you 18. It might take you 27. But it's absurd for you all to stay in debt and in bankruptcy with the kind of incomes that you all have if you were to join arms and actually learn to work together. This is not obviously the news you wanted when you called, but that's okay. I'm here to love you, not to make you my – I'm not taking a poll.

I'm here to help you. So this is what works, kiddo, and that's what I would tell you to do. You're bright people. Dumb people don't make $300,000 a year. So you're bright, but you're violating common sense ethic, and the data points that you're violating are not going to get you there, the process that you're using. So please, two of you sit down together and say, how can we get out of this mess, given that we have this fabulously large shovel, and we have this medium-sized hole?

If you call me up, you're making $27,000 a year and you had this debt, I would be going, I don't know what you're going to do. But the good news is you have this fabulous income. If you will just say no to you and really detail out a scorched earth budget, you can clear this debt in an amazingly short period of time. The math's right there in front of you. You got some child care expense that's there and you know you're obviously carrying a child which is wonderful another blessing you've got and that does affect your decision making as well um and so that's what you got to look at but but you can do this

i know you can do this i know you can do this more than you know you can do this. I know you can do this. I know you can do this more than you know you can do this. Because I've seen people just like you do it. This is The Dave Ramsey Show. One question I get asked all the time is, do I need life insurance? Listen, the whole point of life insurance is to replace your income for someone who counts on you. So if you have a spouse or you have kids, yes, you need term life insurance. It's the only way to protect them until you're out of debt and have built up your wealth. You're only digging a deeper hole if you waste money on cash value plans since it robs you of the ability to make real progress.

And that's why I send you to Zander Insurance, and I have for 20 years. That's where I get all my insurance, and they only offer the plans I recommend. It is not expensive. It's not complicated. And Zander will be there as your guide every step of the way. Visit Zander.com or call 800-356-4282. You need to get this taken care of. I can give you the advice, and I can tell you where to go,

but it's really up to you to take that important step to get your family protected. That's zander.com or 800-356-4282. Thanks for joining us, America. We're glad you're here. Open phones at 888-825-5225. This is the Dave Ramsey Show. Joshua is on YouTube. Is title insurance worth getting when buying a house? Never buy a piece of real estate without getting title insurance. Ever.

If you're buying it from your father, get title insurance. Period. What is title insurance? Title insurance ensures that the title is clean and that all of the transfers of ownership all the way up from as far back as we can find on the piece of ground have been done properly. So I used to think that it was kind of like rip-off insurance because you don't need it because title insurance, titles are all clean in the real world. And then I started buying foreclosures. And I have seen so many real estate titles that were clouded, which means someone that needed to sign the deed didn't or the wrong people signed the deed. And it might have been three transactions ago

might have not been the person you're buying it from did it wrong but if the person before them and the person before them bought it from an estate and there were five sisters and only four of them signed the deed you're screwed when number five shows up she's going to own a fifth of your land, a fifth of your house, because she never signed off on the sale that her crooked sisters did. It happens all the time. Insurance from a title insurance company says that they have checked the title and it is proper. And if the fifth sister shows up, I'm making this up, obviously, but if she shows up, they pay her to go away because you have insurance. That's what insurance is for, fixing broken things with money. And so that's what you have is you have this insurance company.

So guess what? They do a detailed title search that's completely different than if you go over and do a title search or your best friend who's in the real estate business does one. I know how to do a title search. I've looked at property and bought property my whole life. I've owned 2,000, 3,000 pieces of property in my life. So I know real estate's my thing. I love real estate

never buy a property well it's a house it's a subdivision house how could it be wrong it could be sitting on the wrong lot all kinds of crap happens human beings put these things together and human beings make mistakes title insurance oh by Oh, by the way, if you're getting a mortgage, they require you to get title insurance. In a lot of states, it's customary for the seller to pay for it for you because they're ensuring you that the title they're giving you is clean. So it's not unusual there. In some states, it's otherwise. But it's a matter of negotiation and a matter of custom, not a matter of law, who pays for the insurance.

If your mortgage company requires you to purchase it, which covers them, not you, you can get a simultaneous issue for about $50. Meaning you have to buy the one for your mortgage company to protect them against the fifth sister. And then you, for $50, can buy a simultaneous issue policy, which is a great deal. That's a super deal right there to make sure that you're covered against the fifth sister or whatever other things that can happen to real estate title, and lots of stuff can happen to real estate title. Austin is with us in San Francisco. Hi, Austin.

Welcome to the Daveave ramsey show hey dave thanks for taking my call sure what's up hey i'm going to throw a bunch of numbers at you and then i'll ask you my question so i owe 395 on my primary residence mortgage uh i owe 111 on my second mortgage that was taken out to build a rental that's actually attached to my house. My house is worth about $1.2 based on the square footage value in my area. My annual income is about $100,000, and I make about $28,000 from the rental per year. My monthly mortgage for my primary residence is about $1,900, and my second mortgage for the rental is $700. So my question is, do I stop 401k to attack that second mortgage and kind of treat it as debt?

Do I move out and rent? What's the interest rate on the first mortgage? 3.6, I believe. What's the interest rate on the second mortgage? Second one is 5.29. Fixed? Yeah, fixed. For how long?

30 years. I took that out before I started listening to you. A 30-year second mortgage? Yeah. And that was to build the rental. Yeah, I got that. Is the rental on the exact same piece of property or is it parceled off separately uh it had to be attached uh according to the

according to the city code right i kind of have like a deadbolt door there and it kind of has its own separate unit okay so you basically built your house into a glorified duplex yeah yeah all right by adding on a hundred thousand dollars worth of stuff okay all right uh no i would treat your first and second as your baby step six we count we count your second mortgage as a baby step two item if it's less than half your annual income it's not even close it's almost equal to your annual income and so i just treat it like one thing and you got 128 coming in total and you got 111 owed on the second so i'm just going to leave it up there baby step six a lot of times the reason i

was asking about the other mortgages is a lot of times if that if that first mortgage is even close to break even i probably would refi and roll them in together but your first mortgage is half a percent below market right now. And so you're going to go up a half a percent on 395 in order to save 2% on 100. I don't think I would do that. Okay, so just keep them where they're at. Yeah. Now, when I got to Baby Step 6, when you're working your Baby Step 6, and you decide, okay, that's time to any extra goes to the mortgage.

We're putting Baby Step 4, 15% of your income into retirement. Baby step five is kids' college. If that applies, then six is the house gets everything else. First thing we're going to chunk, no extra principal at all on the first. All extra principal goes on the second because it's the higher interest rate of the two and the smaller of the two. Yeah, I've been using that rental income as the extra principal on that second mortgage. Well, anything else you can find in your life, you just start throwing it at that second. But we're not going to panic about it.

I mean, it's not like a gazelle intensity baby step two item. We're just chunking extra money that we can find to still have a good life because we want to pay off our house someday. Yep. As if it was one big mortgage. But we're going to concentrate on that second as the first order of attack. So, good question. Thanks for joining us. Lynette is in New York.

Hi, Lynette. Welcome to the Dave Ramsey Show. Hi, Mr. Ramsey. How are you? Better than I deserve. How can I help? So, I had a question about a post-tax traditional IRA that I currently have. I had filed it about two years ago with my bank.

And at the time, I didn't recognize really the difference between traditional and Roth and what it meant. And I guess the intricacies of it. Thanks for listening to your show. I actually got a lot more into financing. And I had wanted to put the traditional IRA into the stock market before it was just, I guess, in a CD. I switched it to Fidelity. And then the problem became that I realized that because it was post-tax, but it still said traditional, I didn't want there to be an issue along the line as far as taxes go for something I've already paid taxes on. So when I asked Deli, they just said, oh, well, you have to submit some form, but they didn't really seem to know what I was supposed to submit to the IRS as proof that I've already paid tax on this.

So that's what I had a question about. I don't know that you have to have proof. I'd roll it to a Rotha and let it grow completely tax free from this point because it was a pre-tax and it was a pre-tax anyway uh so it was a post-tax traditional i mean it's a post-tax i'm sorry i don't know how in the world that happened but some banker that helped you with that's an idiot but um yeah so yeah i'm gonna just it's basically a roth but it's growing with taxes right now so So I'm just going to roll it to a Roth, and you're not going to have any taxes due. Well, wait a minute.

How much, has it grown at all since you bought it? It's only grown $68 because it's basically an FBA. Okay, you'll get taxed on that $68 when you do this. Yeah, roll it to a Roth, and if you need some help, get in touch with one of our SmartVestor pros, and they'll sit down and show you how to do that. But it should be a Roth. That's what it should have been from the start, and it ought to be across four types of mutual funds, growth, growth and income, aggressive growth, and international. We'll be right back. In the lobby of Ramsey Solutions, Sean and Rachel are joining us.

Hey, guys. How are you? Hey, Dave. We're great. Welcome. Where do you guys live? Amarillo, Texas. Oh, cool.

Welcome to Nashville. Thank you. And all the way over here to do a Dead Free Scream. Yes, Dave. We're great. Welcome. Where do you guys live? Amarillo, Texas. Oh, cool. Welcome to Nashville. Thank you. And all the way over here to do a debt-free screen. Yes, sir. Wonderful. How much have you paid off? We paid off $237,000. Whoa!

How long did this take? About 43 months. Good for you. And your range of income during that time? Well, we started off about $62,000 and then got around $200,000 around 200 000 whoa nice jump what do you guys do for a living we're veterinarians oh okay all right so vet school debt yes sir all of it student loans all of it was student loans okay and you come out and you start off with your jobs and now you've grown your careers during that four years dramatically yes good for you so you're making 100 each roughly roughly yes okay good way to go guys excellent and 204 years 50,000 a year so you did most of

this in the last 18 months yes yeah well when we got married um sean was still in veterinary school for two years so we were living on one income i graduated two years before him so our total student loans actually was about 325 000 but my parents paid part of my schooling so we dropped down to about 237 so between the two of us um sean graduated in um may of 2015 so that's when we really started with two incomes yeah and yours And yours had come up by then, too. So, yeah. Very good. Good. Way to go, guys.

Way to go. I mean, you knocked this out fast. Yes. Yeah. $200,000 in four years. Yeah. And really, you averaged through there only about 100. Yes.

Yeah. Through the average of the thing. So, well done, guys. Thank you. So, what let you fuse? What made you decide, okay, the first thing we're going to do is get rid of this student loan. We're not keeping it like we think it's a pet, even though we're veterinarians. Well, I had kind of heard the word Financial Peace University a few years ago from her sister and brother-in-law.

And then once I got finished with school and added up all the loans that we had i kind of had a small panic attack it was near 300 000 and um it just caused me a lot of anxiety and i came to rachel and talked to her about um really jumping in trying to pay it off quickly and she was on board after a few months i came at her as the guy who said we're going to do it this way and kind of came too too hard at it. But she jumped on board after that. Okay. All right.

And did you end up in Financial Peace University? We never took the class. I listen to your podcast pretty much every day, and I've read the books. Good. And yeah, she's right alongside there with me. All right. Very cool. Very cool.

Well done, you guys. Thank you. How does it feel? Incredible. I'm the saver. He's the spender. So I had a little anxiety about the differences in money anyways. And we say all the time, marriage is hard enough.

We don't need to fight about money. So that was just one really huge blessing that we haven't had to wrestle with, really. So it feels great just knowing that we have the rest of our lives to not worry about debt and um really gives us a good start a good basis for raising our kids we've got one little girl at home so now you know she doesn't have to worry about that so awesome very cool the family started everything's going yeah there you go what do you tell people the key to getting out of debt is oh gosh i think having a reason like you say having having a why. I come from a family of just no money IQ whatsoever, and I started my life just spending everything in sight. And Rachel was more inclined to save money, and she taught me a lot about money. But I just feel like I finally have a lot of peace about our future. And just knowing that we're being a good steward of God's resources, that gives me so much peace.

So the peace was your why. Yeah. Versus the anxiety attack. Yeah. Gotcha. Okay. So what do you tell people the key is? Get a why.

That's one thing. What else? I think one thing that was major for us was every month sitting down and doing that budget and sticking to it. And it took us three to six months to kind of get that lined out. And then after that, it was pretty simple. The other thing we just say all the time is the delayed gratification and the long-term benefits of, you know, living like no one else now. And it's really paid off for us. Very cool.

Good for you guys. Thank you. Well done, well done, well done. Proud of you. Thanks. So who are your biggest cheerleaders? Probably my boss. He does a lot of the entre leadership stuff with our clinic.

And we were kind of on the fence about coming to do our debt-free scream. And he said, no, you have to go do it. Wow. Good for him. Very cool. Yes. So he kind of on the fence about coming to do our debt-free scream, and he said, no, you have to go do it. Wow. Good for him. Very cool. Yes, so he kind of spearheaded that. My first boss when I graduated was also a Dave Ramsey fan, and she bought me the Entree Leadership Book just even a couple of months into working for her.

So that was neat. And then really my family's been really supportive. Like he said, my sister and brother-in-law took financial peace, and they kind of were the instigators for us following that. Yeah, so they were cheering for sure. Right, and then obviously my parents paying part of my student loans because they had been smart with their money. So all of that kind of rolled into our story. Yeah, and then they're looking at you going, way to go, you're finishing this out. Yeah, play through, play through.

Well done, you guys. We've got a copy of Chris Hogan's book, Everyday Millionaires, for you, signed by him. Thank you. That's definitely the next chapter in your story. Yes. I mean, you know how to live on nothing, and you make 200 grand. You don't even know how to use that yet. So you're going to be in great shape if you keep watching what you're doing.

Just follow that budget. Keep having a plan. Keep having a why. And live and give like no one else. You're going to be able to do that. Way to go, guys. We're proud of you. Thank you.

Good stuff. Sean and Rachel Amarillo, Texas, $237,000 paid off in 43 months, making $62,000 to $200,000. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Yeah! Woo-hoo!

I love it. Well done, you guys. Very well done. Man, that's fabulous. Well, that Everyday Millionaire's book continues to be a big seller for Chris Hogan. It is the book with 140 statistics in it on what the everyday millionaire looks like from the largest study of millionaires ever done in North America. The white paper is also available.

If you're a nerd and you want 500 statistics from that study, it's like nine dollars on our website as a downloadable pdf and check it out at daveramsey.com if you want to go that route but the book itself has the main crux of the findings of the study and shows you what to do and how to do it and what happens what real millionaires look like we're going to be doing a millionaire theme hour a little bit later in the week. And if you are a millionaire, which means if you have a $1 million or greater net worth, your net worth is what you own minus what you owe.

When that equals a million dollars, you are by definition a millionaire. You may or may not feel rich. It's not a feeling. It's an accounting function. You may or may not feel like the rich and famous. It's not a feeling. It's an accounting function. So if you are a millionaire with a $1 million or greater net worth, we want to talk to you.

We want to know how you did it. We want to interview you as part of the Millionaire Theme Hour. Put millionaire in the subject line and email me at dave on air at dave ramsey.com one word no spaces no dashes spashes or dashes either one love that dave on air at dave ramsey dot com put millionaire in the theme in the subject line and kelly will get back to you schedule you as one of the callers we let anyone on who's a millionaire to tell their story or greater we want to know how you got there if you inherited the money if you won the lotto if you've worked

hard all your life and saved your money i don't care how you got there i want to know your story i want to hear your story because it inspires other people that they can be like you and that's what the purpose of the millionaire theme hour is and really for the purpose of the best-selling book everyday millionaires as well which if you haven't read it by the way is a stellar book it's absolutely worth doing so dave on air at dave ramsey.com put millionaire in the subject line if you are a millionaire we do want to hear from you spoiler alert 90 of america's millionaires are not millionaires because of inheritance. 79% received zero inheritance.

There you go. I'll help you with the math on the rest of it another time. But it's a proven statistic from airtight research of the largest study on millionaires ever done. You really can't argue with this because if you try to, you're what's known as wrong. This is the Dave Ramsey Show. Thank you. Our question today comes from Blinds.com. Find out for yourself why Blinds.com is the number one online retailer of custom window coverings. You get free samples, free shipping, and with the new promos they run every month, you'll save even more. The promo code is

ramsey today's questions from kristin in colorado should we continue paying for flood insurance my husband and i are debt free other than our house we've carried flood insurance for the past six years in colorado and do not live in a flood zone but in 2013 we were almost impacted by a flood that happened near us we don't want to waste our, and so I thought I'd ask you your thoughts. Well, I think you're just judging. You don't have to carry it by law. You do not have a mortgage, and so there's nothing requiring you to carry it. And so what you're judging is what the probability is you're going to get flooded,

even though you're not in a flood zone. So the event in 2013, in flood l lingo there's a 100 year event a 500 year event or a 50 year event meaning it occurs every 500 years we had a 500 year event in nashville about eight or ten years ago flood the whole stinking place it's unbelievable and uh lots of places that were not in the floodplain got soaked, right? So if you're in a 500-year event zone, I probably wouldn't think anything about dropping the flood insurance. If you're in 100 and you think that event back in 2013 was something that's going to happen again and almost got you, you may want to consider keeping it. So it's just you're looking at it from a common sense perspective saying, in your mind, using actual data, what's the likelihood you're going to get wet? And that's what you're looking at.

And so, you know, same thing with like earthquake insurance. If you live in California, you should have earthquake insurance. I live in Tennessee. I do not have earthquake insurance. And I'm not likely getting it. So there was an earthquake here in the year 1900, a very slight one, over in West Tennessee. But it's not like we're California. We're not shaking and baking, man, all the time.

That's not what we're doing. So we get tornadoes instead. But, you know, so you just got to pick, you got to choose your poison, right? What are you going to insure for? Carly is with us in Raleigh, North Carolina. Hey, Carly, welcome to the Dave Ramsey Show. Hi, thank you so very much. Sure, how can I help?

Well, first I just want to say thank you for sharing all of your wisdom and finances. But my question is in regards to future retirement. I am 22 years old, and I just finished paying off all of my debt last, well, in April. Way to go. Thank you. Thank you. So essentially now all of my income, I am trying to figure out how to best set myself up for success. I have been doing a lot of research into IRAs and stocks and the 401k at my work and mutual funds, and I guess I'm trying to figure out where I should invest most of my money in order to soon purchase a house. Okay.

Well, there's three different things going on. Number one, you're completely debt-free. Is that right? One hundred percent. Yes, sir. Good. Way to go. Number two, the next thing you want to do is you want to build an emergency fund

and a simple savings account that covers life in the event you need an umbrella. It's going to rain some days. And that's three to six. That's my $1,000. That's not the $1,000. It's three to six months of expenses. Once you get the three to six months of expenses set aside, then you would start either saving for a house or start your 401k at your work or you can do both but obviously the more money you put in the 401k

the longer it's going to take to save for a house the good news is at 22 you're going to be able to pull both of them off you're going to be able to get there so you're getting a really early head start congratulations on being that wise. That's the way to go. When you do do your 401k, I recommend the Roth IRA first or the Roth 401k first, certainly up to the match and make sure you get the match going. And then if you want to start saving for the house above that, you could do that. But baby step four, after you have your emergency fund in place, is to put 15% of your income away for retirement. Baby step 3B, after you have your emergency fund in place, is where you would save for a house. So it just depends on which one you want to start and how aggressively you want to start on either one right now.

You could do a little of both. That would be fine. But you just got to look at your budget and say, I'm going to lay this out in detail on every dollar figure out where i'm going and what's next good good call thanks for joining us shane is in omaha hi shane welcome to the ramsay show thanks for having me dave sure better than i deserve how can i help uh i just uh started your baby steps about 30 days ago. I read Total Money Makeover, Everyday Millionaire, and knocked out the first three pretty fast. Great. My question is now, I'm getting to four, five, and six, obviously, and I'm sitting on about 250 in liquid, and I'm wondering how you would proceed forward.

I would just start putting 15% of your income towards retirement. Do you have kids? I do have an 11-year-old stepdaughter. She has about $5,000 in college savings from a previous relationship. And I also forgot to mention, I'm meeting with my advisor again tomorrow. And currently, my girlfriend and I have about 200 M.O.D. accounts for mutual funds and 401k. Way to go. Well, first thing I do is just go ahead and jack that 529 up for the kiddo, and let's just kind of finish school. You're sitting on so much liquid.

You throw $20,000, $30,000 at that thing, $10,000 this year, $10,000 next year, that kind of thing. It's going to go a long, long way towards taking care of that school. And then I'm going to reach over and pay off my house. Do you own a home? I do. We paid $650 for it November 21st. What's the mortgage on it?

We currently owe $450. Okay. So you just back out enough and not pay it off. Yeah, $450. The payment at 5% on a 30-year-old, unfortunately, is $37 and change. Yeah, but you can almost pay it off. You said $200 and $250 liquid, right? $250 in liquid, yes. Oh, I thought you said. You said $200 and $250 liquid, right? $250 and liquid, yes.

Oh, I thought you said there was another $200. That's in the retirement investment. Oh, okay. We don't touch that. We don't use retirement. Okay. Well, what I'm going to do is do baby steps four and five, which are start putting 15% of your income away on auto draft,

401Ks, Roth IRAs, and so on. And then I'm going to make sure i've got the kid kiddos college rounded out let's just pump it up be done with it uh and and then i must chunk everything else that's liquid that's not in retirement at this house and i smell a really big income based on the fact you're sitting on all these dollars yes sir What's your income? Household income is $269. Cool. So if we throw like $50,000 in the kiddo and $200 at the house, that leaves about two and some change on the house, making $260. You can pay this house off in two or three years.

Okay. And also, I spoke with somebody from Churchill about refinancing. I didn't know if you thought that was worth doing or not on such a short payment time. No, you're going to pay it off. You're going to pay it off in maximum of five years. I wouldn't screw with it. I'd just pay it off. You're killing it, man.

Congratulations. And all you needed was a framework to run down, and we just gave you that clear path, and you went for a jog. Well done, sir. I'm honored. Thank you. We appreciate you calling in. Open phones at 888-825-5225.

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i am dave ramsey your host and we'll be back. This is James Childs, producer of The Dave Ramsey Show. Once again, you made The Dave Ramsey Show one of the top five most downloaded podcasts last year. To get your daily dose of motivation and inspiration, subscribe today.