The Ramsey Show - App - Wisdom is the Art of Living Life Well (Hour 3)

Episode Date: January 16, 2019

The show about you

🎵 Live from the headquarters of Ramsey Solutions, it's the Dave Ramsey Show, where debt is dumped, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. You jump in. We'll talk about your life, your money. It's a free call at 888-825-5225. That's 888-825-5225. Angela is with us in St. Louis. Hi, Angela. Welcome to the Dave Ramsey Show. Hello, Dave. Thanks for taking my call. I appreciate it. How can I help? I just went through your program about six months ago, and I just retired from the military about two months ago after 30 years of service. Your phone sounds a little muffled.

Can you speak directly into it? I sure can. Is that better? Much better. Thank you. And thank you for your service. Oh, you're very welcome. It's my pleasure.

I'm 54 years old, no dependents, no one in my family, my brothers and sisters, needs my money. I have no credit card debt, no vehicle debt. I have an emergency fund of $9,000 and a savings of $6,000. I also have a $260,000 traditional PST and $93,000 Roth IRA. And the only debts that I have are I have a primary home mortgage of $89,000, and I also have four rental properties, two in Las Vegas, which are both mortgage-free, and two here where I live that both have mortgages on them. Now, after I retired, I kind of got to talking to some different financial advisors,

and one told me that I could actually roll the $260,000 traditional TSP over into a civilian IRA and that there was $30,000 that I contributed while I was deployed that will not incur a penalty if I took that out to pay off my home mortgage, to help pay off my home mortgage. I love it. I kind of want to know what your thoughts are. I would do that. I think both of those are good moves to roll it.

I always roll anything to an IRA when I leave a company, and the TSP is a fine plan, but you can beat the options that the TSP has in good mutual funds. Okay. And so I would roll it to a direct transfer rollover into an IRA. And if there's $30,000 available from your deployment days to throw at the $90,000 mortgage, boom, that's going to move that along. That's awesome. How much non-retirement money have you got? I have the $6,000 in my savings account, and I have $9,000 in my emergency fund.

And then I'm on my pension. So I get about $5,700 a month from my retirement pay. And I will be getting a VA disability. I'm still going through that process right now. So my total utilities debt uh for the home for my primary home is about 1400 a month yeah okay but what i was looking for you don't have like 30 000 bucks in a mutual fund that's not in a retirement account correct i don't have any other money than what i've told you okay so we're going to throw the 30 at the 90, and that leaves us 60 to do. And you said you're 50 years old? 54. 54. So what's your new career?

I'm going to take a year off and travel. So I need a break from the military. Okay. And when I come back, I might work. I might not. I haven't decided. I want you to work when you come back. But I don't want you to work at something you hate. I want you to work when you come back. But I don't want you to work at something you hate.

I want you to work at something that is your dream so that it's fun and gives you energy rather than takes your energy. You associate work, when I said that, the reason you laughed was you're like, oh, God, he wants me to dig ditches again. I don't want to dig ditches anymore. I'm tired of digging ditches. I don't want you to dig ditches. I want you to do something that's fun.

I don't work because I need money today, Angela. I work because I love doing this. And you can tell by listening, can't you? Oh, absolutely. I want you to find something that's fun like that for you. I don't care what it is. Because number one, it'll energize you. It'll help you grow as a person to engage in something after you do your travel time. I got that. That's fine.

But you need to be doing and engaging your brain into something, and it'll be good for you spiritually, emotionally, everything else. Oh, and on top of that, you're going to make some money, which is going to pile up and make you an everyday millionaire because we're going to get this house paid off and you're going to be able to invest more. You may make more money in the last five years of your 50s, 55 from the return age, return from the trip age to 60. You might make more money than you've ever made in your life in five years. Do you think I should sell those two rental properties with a mortgage on them? If you don't develop a plan to get them paid off real fast, yeah. Okay. How much equity is in them uh about 50 for both and what do you owe on them i owe 50 000 on one and

77 on the other so you can sell one and pay off the other that could work too yeah if you wanted to but see the thing is this what are we we saying? $200,000 makes you 100% debt-free on all of these things. And we're going to pull $30,000 and throw at it, so it's not even that. It's more like $150,000 makes you 100% debt-free, okay? The two houses in Las Vegas, I bought those during that downslope in 2008 for $80,000 each, and now my realtor said they're worth $220,000 each. I love it. That's awesome.

If you want to keep them, I would plan to get them paid off between the ages of 55 and 60 with this new career I just proposed for you. Okay. Okay? Thank you, Dave. Thank you so much. Yeah, I want you to find something you love doing, though, because there's too much good that you can do to waste it doing nothing.

Thank you for your service. I appreciate it. And, yeah, that year off sounds fun, or six months off, or whatever. That's all good. Reset your batteries. While you're doing all that, dream. Dream again. What is it?

I could be anything I wanted to be. What would I be? Then go be one of them, kiddo. No reason not to, right? And everything is possible right now. You really have a great situation with your retirement income, your disability income coming your way. All these properties paid off or almost paid off.

You are in such good shape. But I just want you to put the icing on the cupcake here. That's all I'm saying. So, hey, good shape. But I just want you to put the icing on the cupcake here. That's all I'm saying. So, hey, good question. Open phones at 888-825-5225. You jump in. We'll talk about your life and your money. It is a free call at 888-825-5225.

Kirk is on Twitter. Dave, I'm 49 years old, and on my second career, I get a pension from my first career. When investing my 15% of my gross, do I count the pension income? No. Well, you can. I don't care. It doesn't matter. The 15% is that you're putting 15% of your income away to build more wealth.

Yeah, I probably would count it. Why not? It doesn't hurt anything. There's no magic formula here. It's not a perfect formula. The point is be investing a substantial amount. And the more you invest, the more you're going to have. So, yeah, what's the other option?

You could give it. That'd be okay. You you could give it that'd be okay you could spend it that'd be okay but you got plenty of money so i now i think i'm gonna put 15 of your household income including retirement disability or whatever's coming in into retirement because the more you put into retirement the more you put into investing the more you put into retirement, the more you put into investing, the more you're going to have, which puts you in a position to spend more and get more. If you live like no one else later, you can live and give like no one else. This is the Dave Ramsey Show. Your goal this year is to get rid of your debt, but here's the deal. In order to keep your momentum going past January, you have to make small changes that get quick results.

That's why you need to attack your debts smallest to largest. I also recommend you look for ways to find extra money to pay off your debt sooner. It's there, I promise you. Take a look at your mortgage. If you call my friends at Churchill Mortgage and request a five-minute checkup, they can help you find extra money. Churchill Mortgage Checkup has helped thousands of my listeners save big. In just a few minutes, the Churchill team can tell you how much cash they can potentially save you, or they can restructure your mortgage to pay it off early. Become debt-free in 2019.

Call Churchill today at 888-LOAN-200, or visit churchillmortgage.com for your Churchill checkup. This is a paid advertisement. NMLS ID 1591. NMLS consumeraccess.org. Equal housing lender. 761 Old Hickory Boulevard, Brentwood, Tennessee 37027. The Everyday Millionaire book tour is in full swing. Chris Hogan is on the line with us. Calling in from San Antonio, Texas. The Texas tour comes to an end tonight.

The Texas leg of the tour anyway. And as they head up to Colorado Springs tomorrow. So, Chris Hogan, how's it going out there? Oh, Dave, it's been a blast. You know, from getting around doing the different media to all the book signings here in Texas, everyone's been so supportive, and I'm very excited. Great shows there in San Antonio that you were able to be on today, right? Oh, yeah, we did a fantastic thing today.

We were on Fox 29, daytime at 9. Got a chance to get on there and talk with them about the book. Then we did a radio interview with one of our affiliates in Chattanooga as well as in Phoenix. And then I was on with Cox Media, and we taped an interview that's going to air on seven stations here over the next few days. So just staying busy and looking forward to the signing tonight at 6 o'clock at the shops at La Quintera.

And I'm going to give away another $1,000 at Barnes & Noble. I've got to be 18 years old. Go ahead. Go ahead. Oh, no, I was just saying you have to be 18 years old to enter, and you have to be present to win. So tell me about Rachel that won last night. Oh, it was fantastic.

The gentleman that won the drawing was very excited. He was a young man that was focused. His name was Thomas. And he was going to use the money toward baby step number two. So he was looking forward to attacking the credit card. Okay, cool. Well, they were flashing a picture up on YouTube of a girl winning, written named Rachel.

That must have been from a different night. Oh, yeah, that was from before in whatever city I was in. I don't know what town I'm in. It's Groundhog Day on Book Tour. Yeah, that young lady was in Houston, Texas. Thank you. All right. It came back to you.

Good. That's awesome. All right. It came back to you. Good. That's awesome. All right. The Barnes & Noble tonight at 6 o'clock for those of you in San Antonio. The shops at La Quintera. That is a great store. We've done many signings there over the years.

Again, the SmartVestor Pros will be present and they are sponsoring the $1,000 giveaway. No purchase necessary. Must be present to win. Must be present to win. Got to be 18 to win. And then after you all finish that up tonight, you head up to Colorado Springs. That is correct. We're going to be flying to Colorado Springs,

and in the morning I'll be on with KRDO, Morning News Extra, and I'll have an opportunity to talk with them. And then I'll head over to Channel 13 News at noon and be on with them. And this time, Dave, in Colorado Springs, we're going to have a noon signing because we have a Smart Money event at Life Church at 6 o'clock. Right. You and Anthony are tomorrow night at Life Church. One of the Smart Money events.

There's a few tickets left for that tomorrow night in Colorado Springs. And the book signing in Colorado Springs is at noon. Barnes & Noble on Citadel. The Citadel location for Barnes & Noble. Again, $1,000 given away. And, of course, no purchase necessary. Must be present to win. All that stuff.

So very cool. And then you guys head over to Phoenix, right? That is correct uh we will fly over to phoenix and on thursday night and get over there and get ready to uh do some media uh there with the local box affiliate as well as another signing on friday january the 18th again at six o'clock at desert ridge marketplace so you know hitting up two more cities finishing up texas here and san antonio then heading to colorado springs and then on to Phoenix, Dave. So we're keeping this bus moving.

Now, then the weekend you're doing what? In the weekend I'll be heading over to Vegas to do a few services at a local church and excited to share with them on Saturday night as well as on Sunday. Judd Willite's church, right? Judd Willite's church. That's right. Yeah as on Sunday. Judd Wilhite's church, right? Judd Wilhite's church. That's right. Yeah, I remember. Judd Wilhite's church, and excited for that, and just going to keep rolling.

Very cool. Very cool. So of the messages of the statistics that we found when we were doing the research, the 10,000 millionaires interviewed that you've quoted from the book, which ones are most impacting these people that you've quoted from the book um which ones are most impacting these people that you're meeting while you're out there on the road where they go okay that makes me think i can do this yeah i think there have been a few dave i think the one the statement about only you know 79 of these millionaires didn't inherit a dime uh that's really waking people up and they're

looking at it and i can see their eyes widening. Letting them know only a third of these millionaires never made six figures, never made six figures, even in a dual-income household in a single working year. I can see people breathing and looking and thinking that they can do this. But when I start to drill in and talk about the things to do, about living on less than you make, 79% of them use an employer-sponsored retirement plan to be able to get to that million-dollar mark.

And 68% of the millionaires use an investment professional. I see people lighting up and understanding there's a clear path for them and their process to financial independence. It's possible. The book is Everyday Millionaires, soon to be named a number one bestseller. We don't have the numbers in just yet, but we'll have them in probably just a few hours, actually, from that first week of sales and these other weeks while you're out there on the road honking along. I did notice that you were number 30, I think it was, on USA Today. And you've been hovering up in the 30s and on Amazon, of course, as well, which pretty much ensures a number one.

Those are other indicators as well. So good times on all of that. And things are happening the way they're supposed to. So good stuff. The book, Everyday Millionaires, How Ordinary People Built Extraordinary Wealth and How You Can Too, by number one bestselling author Chris Hogan. You can go to the online store at DaveRamsey.com and get it. You can go to ChrisHogan360.com and get it. You can go to either one of those locations and find where Chris will be in your area. By the way, Chris, I did get word a few minutes ago that the irvine event that you and

i are doing monday night or tuesday night next is uh this coming tuesday over in the la area is sold out uh it's a complete sellout so uh we're booming we're booming over there in that market and uh of course i'll be over there to meet you for that Tuesday event next week. Looking forward to that. So good times. Congratulations, sir. You holding up okay? Oh, yeah, feeling good, Dave.

The team's taking good care of me. We're staying focused and just having fun. All right, well done. All right, thanks, Chris. Thank you, sir. All right, Chris Hogan, author of Everyday Millionaires, how ordinary people built extraordinary wealth and how you can too. And, um, that's the book and, uh, man, it's just going, I don't know. This book is on fire.

It's, uh, well, it should be because it ought to give you hope that you can do this. And, you know, we didn't, we didn't trick the survey to cause that to happen um well dave ramsey it just says everything you've always said well i can't help that can't help it i was right shut up of course it says what i was saying because i've been making people into everyday millionaires for decades and that's why this book actually ended up confirming that by the way the millionaires that we interviewed only half of them were d millionaires, meaning they even knew who I was. And they weren't saying I caused them to be millionaires, but they even knew who I was. Half of them were white space, meaning had no knowledge of us whatsoever.

We have airtight research process here that confirms this data. We actually know where millionaires come from. Not where some crazy congressman says they're coming from not where somebody with a political ideology says they're coming from not where someone who's a victim instead of a viking says they're coming from i love that guy's statement yesterday so you either be a victim or a viking i always said victim or victor but i like viking better i'm going with that yeah you're either you're either going to be a warrior or you're going to be a victim. And the good news is that when you fight in this process of building wealth,

the data points that we have now proves it works. It's not easy. If it was easy, everybody would have already done it. But it can be done. What about people like me? I got this, this, that you can done it. But it can be done. What about people like me? I got this, this, that you can do it. We have found people just like you. Same color as you, same upbringing as you, same background as you.

We found people just like you that did it. I can promise you, whatever you is, that's the thing. This is doable, people. This is doable, people. This is doable. Everyday millionaires. How ordinary people build extraordinary wealth and how you can too. This is the Dave Ramsey Show. Do you know who is a prime target for identity theft? Your children. Kids have no debts or credit history.

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Call them at 800-356-4282 or visit Zander.com. It's just the smarter, more affordable way to protect your entire family. And it's the only plan I provide to my team. Zander.com or 800-356-4282. In the lobby of Ramsey Solutions, Jody dropped by from Cape Girardeau, Missouri. Hi, Jody. How are you? Hi, Dave.

I'm good. How are you? Better than I deserve. Welcome. Good to have you visit. Thank you. Thanks for having me How are you? Hi, Dave. I'm good. How are you? Better than I deserve. Welcome. Good to have you visit. Thank you. Thanks for having me. So you've got a question.

I do. I have a what would Dave do situation. I've taken FPU, and my fiance Hunter and I are taking FPU again, or we're taking it together this weekend. Good. I feel like I know the answer to this, but I just would really like your guidance on this. So I just started my new job on Monday.

That's why I'm here in town. And I'll be traveling. I'm a sales rep, so I'll be traveling some, maybe once, twice, maybe three times a week. I have an expense account, so I'll get reimbursed on everything. But I don't know. Here's my question is I don't know how to budget for it,

how to plan for it. I think because I don't know dollar amounts, right? I don't know exacts. Everyone keeps telling me, everyone keeps telling me, like, get a credit card. You know the points and the miles. And I know that's not the answer. I'm like, no, Dave, Dave, I can't do that. Dave won't like that.

So my question is, how do I plan for this? How do I budget for it? That's kind of where I'm at. What are you going to be selling? It's agricultural marketing type products. Great. Good for you. you cool well um let we'll have to use some examples because we don't know yet in your situation exactly okay um what are you estimating your income to be um in the 70s okay good all right so the best way to do it is set a separate checking account

aside with a debit card on it just for travel. Okay. And because the problem with expense accounts is people will use their personal credit card for things on the road that are okay to put on the expense account. And they use it also for comfort stuff. Right. Because traveling is tough for things that are not okay. Okay. But you got the whole thing set up under the rationalization,

I need it for my reimbursable expenses. But people end up running up debt all the time that travel because they buy stuff that they cannot turn in on their expense account while they're on the road. It's not okay. Or they lie and do turn it in, which we'd never recommend that. So anyway, you figure out what your actual reimbursable expenses are going to be in a given week or month. How often will they reimburse you?

You know, I don't know. I think every pay period, so every other week is what I'm assuming. But I'm not 100% sure on that. That would be fairly normal. Okay. So we would say every two weeks. So two weeks' worth of expenses. We'll just make up a number.

$2,000. Okay? Okay. Might be more, might be less. You figure it. But you find the real number. Okay. And you put that much of your money in the account one time.

Okay. And then, as you spend down your money, you turn in the expense report. The next week or two weeks later, they give you the money back. It comes back up. Right. So all you have to do is put it in there one time to prime the pump, so to speak. And then every time it drops down, it's only dropping down by reimbursable dollars that you're going to get right back two weeks later in our discussion here. So it comes right back up.

So let's say you spent $700. It goes down $700. You get a $700 check. You put it in there. You're always going to have that $2,000 in there that's just sitting there going up and down, up and down, up and down, up and down, and you use a debit card, and you don't have to get into the credit card business. The credit card is really dangerous in these situations. Again, I travel a lot.

I don't travel as much as I used to. I used to be gone all the time but travel is rough those people that think traveling is um romantic or something don't do it and and what happens is we get tired and uh we overeat and some people over drink and some people do other things on the road and um it can just be, you know, little silly expenses just for comfort because you're just uncomfortable because you're on the road. And people just spend money is what it amounts to. And you'll end up with $10,000 in credit card debt of unreimbursable expenses in an eye blink in a situation like you're in as much as you're going to be gone. So you've got to avoid that. And by having that real money in there and it being a real debit card

and it only being reimbursable stuff, you'll be super careful, and you'll watch it, and you'll do it. So you've got to prime the pump one time so that it doesn't run dry during that two-week period of time if it's a two-week reimbursement. So you've got to get all that dialed in, get an estimate on the expenses and how often it's going to come, and then that tells you what your goal is to set that thing up and to get you going. Does that help?

Yes, it's very helpful. Thank you. Hey, thanks for coming by. Thank you, sir. Thanks. Congrats on the new job and the new marriage. Thank you. Things are going good.

All right, Tommy's with us in San Antonio. Hey, Tommy, welcome to the Dave Ramsey Show. Hey, thanks, Dave. What's up? Well, I'm 27 years old. For my company, I'm kind of the road warrior. I'm home 30 days a year. I'm traveling the country for work. Luckily, while on the road, all my expenses are paid for. I pay them and then I turn in all the receipts for eating, renting, whatever else I use. And so it otherwise saves me quite a bunch of money that I wouldn't be saving

if I had been home all the time with a desk jockey kind of job. My 2018 gross income was $66,000. This includes a $10,000 bonus, which fluctuates based on company profit. This results in $53,000 net. I currently have $62,000 in my checking account, $18,000 in a Roth IRA, a target fund. I don't have any college debt. I don't have any debt. Way to go. But I do have a degree. My monthly expenses, because I'm never home, comes out to less than $1,300

a month. That's including rent, water, Netflix, everything. My sister just bought a house. I'm wondering if that's something I should be doing so that I'm not just spinning my wheels, money sitting in a checking account. I can keep putting it into other forms of mutual funds, but I've been thrown into a Roth IRA for retirement purposes. Do you recommend a house? Do you recommend more investing? I just fear I'm not home.

It may not be feasible to have something that's just sitting there without my eyes on it. So you rent an apartment now? I do. Okay. Seven, 15 months. Okay, cool. All right. Well, what i would do is take the sixty thousand in your checking account let's allocate a portion of that and call it an

emergency fund and separate it out into a different account sure and the money above that is your down payment um how old are you 27 okay if and what's what are you you said you're making 60 grand 66 grand if i woke up in your shoes and i was 27, I would buy a condo in a nice condo, okay? Okay. Because I don't have to worry about the maintenance while I'm gone. I don't have to worry about the yard being cut. Number one, I'm single. I don't want to screw with it.

I don't want to screw with it either, by the way. But if I'm in your shoes, I'm just thinking like you. You don't have a yard to cut today that's a good thing right you don't have to worry about maintenance today and if you're gone and something springs a leak there's a landlord there that knows it and the same would be true around the property management firm over overseeing the hoa for the condo and you could actually have somebody look in on it and check it every so often and that kind of thing, depending on how long you're gone on these stints. But a condo, because of the maintenance issues, and it gives you the same benefits as the apartment,

but you've got that ownership, and it's going to go up in value, and you've got a good down payment saved, and the way you're working, man, you probably turn around and pay the thing off pretty quick. What's the liability on a condo i mean is that do i cover drywall in and they or yep if something happens you buy a condo uh policy a homeowner's policy uh that's specifically written for condominium documents and it does you're exactly right it covers drywall in and your hoa fee covers your exterior structure. The condominium association covers the exterior structure with their policy. And so if there's a fire, for example, all of the exterior from the drywall out is on their policy.

And your contents, kind of like you have a contents policy now on your apartment, except you've got, you know, the kitchen dishwashers inside there, so that one's yours, right? That's your baby, as an example. Those kinds of things. But the condominium policies are very standard. They're fine. I own several condominiums, and I've got that on all of them. And, you know, it's a good investment.

Again, I want to be careful that you get a condo in a good area where it's going to go up in value, but you're not overpurchasing. And it gives you something to turn around and target some of this money at because you're just doing really good with the money, and you're looking for a place to stick some of it. And you're doing 15% going into your retirement, your baby step four. And then above that, we're going to reach over and pay that condo off as as soon as you can and that's going to put you in a really cool place and uh yeah that's exactly what i would do if i woke up in your shoes but i i personally you can you can buy a house if you want to buy a house i don't care i personally wouldn't want to mess with the house if i were

27 years old traveling in your shoes um you know it's up to you though you can do whatever you want to do hey Hey, good question. Thank you for joining us. This is the Dave Ramsey Show. Thank you. Our scripture of the day, James 1 and 4, The fear of the Lord is the beginning of knowledge, but fools despise wisdom and instruction. And by the way, some people misunderstand that scripture because they haven't studied in detail, and they think fear means scared of. It is a type of scared of, but it really means reverence.

The reverence of the Lord is the beginning of knowledge. But fools despise wisdom and instruction. Aristotle said, Educating the mind without educating the heart is no education at all. So, there you go. All throughout Scripture, particularly in the Proverbs, you will see wisdom, the wise, juxtaposed with the foolish, the fool. The wise against the fool, wisdom versus foolish. It's wise to do this, foolish to do this, wisdom versus foolish, the wise man versus the fool.

And there's a lot of very, very clear instruction that will cause you to live your life well. And one of my favorite Bible teachers the other day said the definition of wisdom literally in the hebrew in these means the art of living life well see someone who lives their life well you see someone who is wise that is what wisdom is actually knowledge applied isn't it and wisdom the wisdom book is the book of proverbs and there is enough instruction on scripture in the on money in the proverbs to um there's enough instruction in there to give you a master's degree in finance if you read it over and over. Bruce is with us in Idaho Falls.

Hi, Bruce. How are you? I'm good. How are you, Dave? Better than I deserve. What's up? Oh, not too much. Just a beautiful snowy day here in Idaho.

I love it. Yeah. Hey, I've got a question for you. So thankful to you and to the many blessings of God, my wife and I are debt-free, including our house, the past two years. Good for you. It's a great feeling. We came and saw you last December 2017, and we got to meet you there with our kids and everything. So the situation that we're in right now is, like I say, we have a paid-for house, and we just had our eighth child in December.

And our house is about a 2,000-square-foot house, and we're just looking to upgrade to a bigger house. And I just wanted to see with you if you thought it was appropriate to get a mortgage that we would pay off as quick as we can, obviously, in the next couple years. What's your house worth? It's worth about $180,000 to $200,000. And what would you move up to?

About $280,000. Okay, so roughly $100,000. Yeah. And what's your household income? Well, at the end of each year, I receive a bonus, and it puts us about $120,000. That's wonderful. Okay. And so you could pay off this $100,000 how fast doing that?

We're counting on a couple years. Okay. All right. So we've got a bit down to pay. We've got about $30,000 to pay down on the house. Oh, in addition to selling yours, yeah. Okay. Good.

Right. Hmm. Well, it's a tough one. Yeah, it's certainly not, you know, once I was out of debt, there's no way you were going to drag me back in. Wild horses couldn't drag me back in. Yeah. But I wasn't living in a 2,000-square-foot house with eight kids either.

I mean, that's a woman in a shoe, man. You're crammed in there. For real. I grew up in a small house with a bunch of kids too, so I know what it feels like and we can do it. But, you know, it's nice i grew up in a small house with a bunch of kids too so i know what it it feels like and we can do it but yeah but you know it's nice to expand a little bit too well nice to expand yeah nice to expand i would say wait and save up your money and do it uh eight kids crammed into 2 000 feet uh i can't even imagine the bathroom line. So, I mean, you guys got to look at it.

What Sharon and I would do would be that we would save up the money because we're not going back into debt. And we could do that in two years, realistically. But two years of not fun, you know, living in that house, that's no fun at all. If you had two kids, I would tell you to stop your whining and sit there. Right. And so the only thing that's pushing me over the edge and giving you a little more sympathy is I can't imagine how far, how jammed up things are around there.

So I guess the other option, but it doesn't even seem to make sense here, is to sell the house and rent for a little while into a little bigger house so you can breathe and during that time save up the money. But that would be a way to do it and not go into debt at all. But certainly, you know our guidelines. I can tell from talking to you that we tell people not to buy a house with more than a 15-year mortgage. And certainly, you're not going anywhere near that. You're going to take out about a five-year mortgage, and you're probably going to pay it off in three.

So, you know, I can't tell you that's dumb. I just want you to plan in the future to where you never get yourself in this situation again, that once you get out of debt, that every so often you don't have to go back in debt for just a little while. I want this to be the last time and so i guess um i don't know how far how long ago you became debt free house and everything but that day i would have started aggressively saving given that you have obviously have uh plans for a very large family and so you've got to you got to just like anything else you got to financially plan for that so whatever your next thing is that's coming at you college is going to be a you know a big

deal buying cars for kids is going to be a big deal everything you do is a big deal because of scale here and so you've just got to look out into the future because otherwise you're going to go well we're a large family we have to go in debt and then i'll pay it off right quick and then we're a large family have to go in debt i'll pay it off right quick that's got to look out into the future because otherwise you're going to go, well, we're a large family. We have to go in debt. And then I'll pay it off real quick. And then we're a large family. We have to go in debt. And I'll pay it off real quick. That's got to stop. This is the last time you do that if you do it so that you're looking far enough into the future.

And, you know, you're doing some different kinds of investing, some different kinds of savings to be ready for these events as your family has got substantial size to it. So very cool. Hey, thanks for the call. Jamal is with us in New York. Hi, Jamal. How are you? I'm doing good. How are you, Dave?

Better than I deserve. What's up? Just calling. I lost my job in November making $160,000. Found a job making about $80,000, and my debt and my lifestyle that me and my wife were living has me contemplating trying to see how I can get rid of my lease car. You want to know the process to do that? You want the process to do that?

Okay, cool. So how much is left on the lease? About a year and a half. Okay, and how much is the lease payment it's 600 a month okay so 600 times 18 is ten thousand eight hundred dollars that you still owe in payments okay so if you keep the car you're going to be out ten thousand eight hundred dollars and then you turn the keys in 18 months from now. That's one way you get out of it. The second way you can get out of it is you find out what the car is worth today. Have you looked that up?

Yeah, I did. How much? It's worth about $35,000. Who said? Kelly Blue Boat. On what kind? Private sale? Trade-in. Trade-in. Trade-in. Okay. So private sale might be $38,000 or $39,000? Yeah. And have you called for the early buyout on the fleece?

They said $42,000. Okay. All right. So if you sold it for $35,000, you'd be in the whole $7,000. If you keep it, you're in the hole 10-8. Right? Yeah. Okay.

Or if you sold it for 39, you're in the hole 3,000. Yeah. Which would be a private sale on the car. What kind of car is it? It's a 2018 Genesis 5.0. Okay. Yeah, that car will sell. Yeah, I'm selling it, but you've got to have the money to cover the difference.

And that means you're going to have to arrange a bank loan or a credit union loan for that. But I'd rather you be $3,000 or $5,000 in debt rather than $42,000 in debt. And that's the point. And that's the point of getting out of it. Hey, thanks for the call. That puts this hour of the Dave Ramsey Show in the books. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus.

Hey, it's Blake Thompson, Senior Executive Producer for the show. You know, you can listen or watch anywhere with the Dave Ramsey Show app on your smartphone. Catch the full show or watch the highlights and check out Dave's upcoming guests. Head to the App Store and download it today.