The Ramsey Show - App - Writing Down a Goal Is Powerful (Hour 2)

Episode Date: September 3, 2019

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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 a paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thank you for joining us. Open phones at 888-825-5225.

That's 888-825-5225. That's 888-825-5225. Stephanie is joining us to start this hour in Missouri. Hi, Stephanie. How are you? I'm good, Dave. How are you? Better than I deserve. What's up?

My husband and I are on Baby Step 2, and I was wanting to start a financial coaching side hustle, and I'm not sure how to get started with that. And I know you guys offer that class, and that's something I'm interested in doing, but I don't know if we should pay for that while we're in Baby Step 2. Hmm. The only way I would tell you to pay for anything to start a business, including our class in Baby Step 2, would be if you could see a very quick return on it. Meaning, let's say you call me up and say, I want to start a lawn mowing business.

I'm going to buy $8,000 worth of equipment to start a lawn mowing business. I would say, no, you're not going to make that money back fast enough. But I'm going to spend $800, and I'm going to go get $ thousand dollars where the income's cutting grass is my side hustle then that would make sense right so um you know and so really what it comes down to is is are you going to do enough paid financial coaching quickly to justify the cost of the of going to the class and uh that would be the only way that'd be the only way I could recommend that in good conscience at this stage. Otherwise, it's like, hey, I'd like to help some people. I want to do this at my church as a volunteer, and I'll charge sometimes for it.

That sounds like you might make your money back over a period of years rather than months. But if you say, hey hey i'm going to devote a serious number of hours to this a week and i'm going to build up a clientele and i'm really going to get paid and that kind of stuff then yeah it'll be worth it to have the knowledge base to have the confidence to go do that but that's the only way it makes sense to to pay money to do a side hustle is if it's a small amount of money versus the rate of return, the money you're going to make back very quickly. And that would be true of any side hustle on Baby Step 2.

All right, on line 2 is Gary in California. Hi, Gary. Welcome to the Dave Ramsey Show. Hi, Dave. How are you today? Better than I deserve. What's up? So my wife and I are in Baby Step 6.

We've been gazelle intent on paying off the home since March when we saw you at the VIP event at Mariner's in Irvine. Cool. We've paid off about $45,000 on the mortgage since that time. And we're on track to pay off the house by this time next year. Yay. The way we're going right now. But we have an interesting situation here. So we've been in our current home for 16 years. Our kids are out of the house. I'm retired

with a government pension and have my own business now. And so we're in a very beautiful house, large custom home. But with just the two of us, we're thinking about moving to a different community. We have nothing tying us to this community right now. And so we've actually put a deposit on a new lot in a 55 and older community. The question is, my wife is very emotionally attached to this house, and it is a very beautiful house. So we're trying to decide whether or not we should sell this house and take all that money and basically move into the new place. Your other option is to go into debt so that you have a big, beautiful, custom-made home that is a rental that your wife was emotionally attached to, and when a renter moves into it, it's going to destroy her. Yes, that is one of the options or one of the potential options. No, I'm just telling you, there's no such thing as someone moving in your home, your personal residence that you love dearly and that you have fond memories

that your babies were rocked in that room and they move in and rent it. It requires a tremendous amount of emotional concentration. I've done it. I'm a landlord. I'm a real estate guy, and it was hard for me, and I don't even have feelings. And my concern is because this is is such a nice large custom home there's plenty that could be wrecked if we got the wrong exactly in it it's not a rental property dude okay it's one foot on the boat it's like oh i kind of really want to keep my house but i kind of want to move over to the other community in which case you ought to go get

your deposit back if you want to stay in your house or you need to move and you need to move your emotions with you one other option which i think i know where you're going to say right now is um so through my through my retirement i have a steady pension that is more than what we live on. But I have enough money in the 457, and I could take that out without penalty, that we could basically own both places outright and still rent this one. And how much money will be left over in your nest egg? Well, through my new work, I am maxing out. Your current nest egg, after you pay cash for both of these properties, 401Ks, 457s, everything, how much would be left today?

160, probably about $350,000. Okay. It's not bad. Now, then the next question is, are you keeping the original house for the right reasons? You're now proven you can afford to do this and pay cash for both. If you're paying cash for both, now we have a discussion, and it's just an emotional discussion. Is this original house a rental house, and can we both, you and your wife, handle it when a renter doesn't treat your home?

I don't care how expensive it is. I have one rental property that's $1,200,000 house. And when I walk in it, I go, really? You know? Right, yeah. And so what I hear you saying is based on our situation you're not completely adverse to tapping into the 457 well you'd have because you'd have 350 000 left over and there's no penalties right and so yeah as long as you got you know you got a sizable nest egg

you got a great retirement set up ahead of time and you pay cash for both of these properties you're not in debt at all right and i love in addition to my retirement i'm working my own business making a substantial amount of money and and this house will generate a pretty substantial cash flow i mean what would the old house rent for um so probably there's very few rentals in the area, which is positive. So we could probably get between 21 and 2,400 a month for it. So 30 grand a year extra income coming in. And what's it worth? It's worth right now probably be between 490 on the low end and 530 on the high end. Yeah.

You need to get more in that rent than that to justify that. Okay. Yeah, because that's going to end up being about a 4% rate of return on your money after expenses, is what you're telling me. $30,000 minus expenses on a $500,000 asset. So you've got to look at that. I think it's going to break your wife's heart. I think.

By the way you set the question up originally, and I think you guys really need break your wife's heart. I think. By the way you set the question up originally. And I think you guys really need to prayerfully consider that. Not going to make me mad either way as long as you pay cash. Do whichever one you want to do. But I don't think this is going to be a good end to this story five years from now. This is the Dave Ramsey Show. Let me tell you a story about two families that are very much alike in a lot of ways. Both families have two working parents and a couple of young kids. Each has debt and a struggle to make ends meet.

But they're starting to make headway with their budgets and smarter decisions with money. They have dreams and plans, and the only real difference is that one family has the right amount of term life insurance and the other doesn't. Big difference. If one of the parents die, and that does happen, their well-being would be destroyed. Paying for the mortgage, utilities, food, and other bills would be impossible, let alone saving for education or retirement. That's why every day I talk relentlessly about getting term life insurance.

Just go to ZanderInsurance.com or call 800-356-4282 and see how inexpensive it really is. Be the family that takes those deliberate steps to be different and responsible. It really does make you the hero of your story, and it puts you on course for better things ahead. Missy is with us in Mississippi. Hi, Missy. How are you? Or Michigan. Hi.

Michigan, yeah. There we go. How can I help? My best friend from college became debt-free because of your steps, and her and I were talking about them. And my question is specifically into Baby Step 4, the 15% for retirement. How are HSA contributions seen as inclusive of that 15%, assuming you are not using them until retirement, or in addition to the 15%? I would do them after you're at Baby step seven as far as excessive contributions anyway.

And here's the problem with an HSA contribution. It can't be used for anything except health prior to retirement. Now, I'm using mine like you're talking about. I've never touched it. It's just like there's like $200,000 in there. I've been doing it since George W. started it years ago. And so I've loaded it up every year, but I'm using it basically as a shelter because I never touch it for medical

knock on wood. We've not had any medical that caused us to need it. And so we've got the exact same plan you got. It'll be an extra chunk for retirement when we get there that we've sheltered the income off of. But in the interim, I want the 15% to have more uses than just medical. Because of its limited use, I wouldn't include it there. Now, if you've got a huge income and you're just trying to find some way to shelter it and you've run out of 401k and Roth IRA options. It's a bit of my husband's my challenge only because I don't have a 401k at work. So we account for that in his 401k deferral, just to put more away to kind of mathematically

take the fact that I don't. Yeah, but if you maxed his 401 and maxed the Roths, are you at 15%? We are over 15% because we have no consumer debt. We have no children. Okay, 15% of your income, if you maxed his 401K and maxed two Roths, then you'd be over 15%. So should I do? I would not do it.

We've been maxing out the family one for years. I have $30,000 in there. Yeah, there's no need. I wouldn't put any more in that for now. I would put my 15% in matching 401K first, Roths second, and then non-matching traditional 401Ks until I get to 15% in that order. HSAs would be last on that list, and I wouldn't do any more in that. You've got $30,000 in there.

You've got an emergency fund. You're more than covered on any health issues now when you get your house paid off and you're looking for other ways to shelter more than 15 percent you're just trying to keep the government's hands off of money in general then yeah i would use it but it's simply because it's got such a narrow focus it's health only and um and you know and it's not roth because roth's growing tax-free so good question interesting call thank you kathy is with us kathy is in nebraska hi kathy how are you hi great how are you better than i deserve what's up well i me and my husband are kind of stressing right now. We have a question. We are both in our mid-50s, and we are just next month we should be done with Baby Step 3. Great. And we are wanting to get a house, and our dilemma is we basically have no retirement. And so I'm like, we need to hit retirement, you know, but there's the house.

We want to get a house. What's your household income? I'll say $110,000. Good. Okay. That's great. And it sounds like you kind of had a newfound, like in the last four or five years, ability to handle money. Yes.

Prior to that, you sucked at it. Right? Is that right? What did you say? I'm sorry. I said prior to four or five years ago, you were horrible at handling money. Oh, absolutely. Okay. Yes, both of us.

Yeah, me too many years ago. So I understand how it feels. Okay. Absolutely. But the good news is you turned it around. You got your emergency fund in place. You're debt free. You're doing the steps.

So, yeah, here's the goal. Let's just back up. Let's pan back and look at the big picture. Okay. The big picture is at 70 years old, 15 years from now, we need a paid-for house and a chunk of money in your 401k. Okay. Now, how do we get there? We chunk money in the 401k, we buy a house that we can get paid off. We don't buy a house we can't get paid off.

And the faster you get that house paid off, the bigger the chunk you're going to have in your 401k. Okay. Now, if you save 15% of your income for 15 years, that's going to be half a million, $600,000 in your 401k. If you pay off your house in 15 years on a 15-year note doing that same budget, you have a paid-for house during that period of time. And that's probably going to be – you know, you could be millionaires by 70 if you work this. That would be something. Okay.

I guess, you know, right now it's just kind of like let's retire with dignity you know yeah that's you're on your way but let's let's just say okay 50 i'm just gonna put in a calculator because i'm just i'm spitballing it but now i'm curious so um let's see here 15,000 i put it as a payment and future value and we're gonna do 15 years and let's see if i was right i was right 624 000 if you save 15 000 a year for 15 years okay okay now if you buy a house that is worth 400 000 15 years from today and it is paid off you would be millionaires okay well i'm sure we're not looking at buying like a 400 000 no no no no no i didn't want to the day and it is paid off, you would be millionaires. Okay.

Well, I'm sure we're not looking at buying like a $400,000 house. No, no, no, no, no, no. I didn't know what I said. I said a house that 15 years from now is worth $400,000 and it's paid for. That is a $200,000 or $150,000 house. Gotcha. And where do you live in Nebraska? I mean, $150,000 probably buy Gotcha. And where do you live in Nebraska? I mean, $150,000 bucks probably buy a lot, won't it? A good amount of house?

$200,000 is kind of what I've been looking at lately of what I would want. But here's the thing. Here's the thing. No screwing off. This is your game on. Okay? You can't mess around with this. You've got to be doing 15% every year of your household income.

And actually, that's a little bit more than what we were talking about, because I only did 15,000, which is 15% of 100,000. You make 110 already, and your income is going to go up through this 15 years. So every year, you save 15% of your income, and you buy a a house on a 15 year fixed where the payment's no more than a fourth of your take home pay and then you turn around and get that stinking house paid off in about 7 or 8 years. If you do all of that, you're going to retire inspired. You're going to make it. The question that we're dealing with is do we put off retirement and start saving for the house?

No, you start saving 15% of your income and you save a down payment on the house very, very quickly. And you make these your primary goals. And probably traveling to Europe this summer is not one of these goals. Okay. Because you're coming to the game late, so you don't do a bunch of luxuries right now. You've got to get this ball rolling. You've already got it rolling really well, by the way. You busted through baby step three, which already puts you in the top 10% public in America

because most people spend everything they make and have nothing and are deeply in debt. Sally Ray's been around so long she's got her own freaking bedroom in her house. You've cleaned all this up. You're rolling now. I'm proud of you. So you're on your way. The point is, if you keep your eye on the ball and you play the game all the way through exactly as we teach and you don't goof off with your money, you're going to be just fine. You're going to be more than just fine.

Hang on. I'm going to send you a copy of Chris Hogan's book, Everyday Millionaires, because my prediction is you're going to be one. But you're going to have to do the steps. It's not magical. It's not automatic. we don't have a millionaire pill here you can take but we will show you how to sacrifice and how to win and how to do the steps and if you do this you will get the results by the way two primary things that people do they become cause them become millionaires as they pay off their house and they fund their 401k

just like we were just talking about almost like it's magical it's not magical nothing magical about it it's just so weird that nobody does it why in the richest country the world has ever known do we have this many freaking broke people i'll answer that for you it's called consumption you're consuming your brains out. This is The Dave Ramsey Show. Thank you for joining us, America. We're glad you're here. Open phones at 888-825-5225. Well, here at Ramsey, our team members work really hard.

We actually work while we're at work. I know that's weird, but we do. And you're really not on your Facebook account unless you work in the social media department. And then you're not on your Facebook account, you're on mine. We work while we're at work. And you know why? Because of you. The work we do is to help you.

And we care. We want to win. And we're looking for some folks to join the team. This is a group of sharp people. And so, I mean, if you really want to work with smart people that care, this is a building full of them. Because the people that aren't that, we get rid of. It's pretty cool. As a matter of fact, they don't make it through the interview process to start with so i mean occasionally a dud slips in but not very often

and most of them are studs occasionally you get a dud but most of them are studs and they're just good man i got a team i'm so proud of our team if you'd like to be on a team like that i mean we win best place to work every year because we're like the best place to work every year. That's why we win that. And so if you want to join us, check out the stuff at Dave's Hiring. Click the Dave's Hiring tab at DaveRamsey.com. Looking for some video producers right now, some digital marketers, some creative directors, a bunch of different sales positions,

and a bunch of different developer-type positions, web techs and all kinds of things. So check us out, front-end developers, back-end developers, Java, everything. Certainly Ruby, senior Ruby people in particular. And by the way, you developer people, we don't work 80 hours a week here. We go home to our families at 5. This place is a freaking ghost town at night. There's nobody here. If I walk through and somebody's here working, I'm like, what are you doing here?

Go home. Because guess what? It ain't all about you. You're not the Messiah. We can do it without you. And so, come on. Go be with your family. Now, if you're in the tech world, that's weird.

Because tech people, most of these corporations, they just eat you alive. They work you 80, 90 hours a week. And, I mean, if we have a major catastrophe or something, we're willing to do that, but it's not our way of life around here. Betsy's with us. Betsy's in Maryland. Hi, Betsy.

How are you? Hi, I'm good. Thank you, Dave. I'm 65, and I recently quit my job. I looked up one of your SmartPro investors. My husband and I went to meet with them, and one of the recommendations they made was to get long-term care insurance, obviously, because of my age. They offered this policy that's a life insurance with a benefit access rider that can be like it's worth $100,000 life insurance if I die,

but I can draw from it if I need it for long-term care or health care in the home. The premium is $229,000. You're saying one of my SmartVestor Pros offered that crap? Yeah. Oh, well, I'll put you on hold when we're done because I need to know who that is so I can fire them. They shouldn't be offering you that. That's trash. I'm sorry.

I apologize. Yeah, we let you down. I'm so sorry. I had no idea. I was getting ready to sign up for it, but I thought I should ask you first. I'm glad you did. Now, you should buy long-term care insurance, but you should never buy life insurance with an investment vehicle tied to long-term care.

It's crap. Okay. When they bundle it together, it's all about the fees, and you're paying way too much for that. Oh, okay. Yeah, you're much better off to just buy straight long-term care insurance. And how much money do you have saved? Saved? In your nest egg, your whole nest egg let's see let me think between my husband and me probably let's see maybe a hundred

and some thousand uh you do need long-term care insurance then yeah okay we'll help you get that xander can help you get it or one of our other brokers can help you get it, and we'll take care of educating this individual that didn't understand things on the other end of what I'd send people to. Hang on, I'll have Kelly pick up, and we can get the name of that SmartVestor Pro. So, all right, cool. Thanks for calling in. I've got 5,000 endorsed local providers and SmartVestor pros in our system,

and we vet them every day, and still crap like that happens. I mean, it's just there's nothing we can do. We have to constantly just be checking them and constantly be following up in every lead and watching everything. But that's the problem with the financial world. And, you know, it's not that the guy's a crook. He's not a crook. He's just stupid because that's stupid.

It's bad. It's a bad financial product. When you put a savings element with an insurance product, it's always a screw job for the consumer. It's always messing the consumer over. There's not a single instance otherwise. It does not come out ahead. It does always messing the consumer over. There's not a single instance otherwise. It does not come out ahead. It does not work out for you. And so we just don't do that around here,

and we don't send people to people who do that kind of stuff. So I'm real sensitive about it because you guys all call me hypocrites when I do that, and I'm not a hypocrite. I do. Sometimes we screw up or sometimes something slip through. A dud slipped through. I was talking about that on hiring a minute ago. Yeah, same thing can happen in the ELP or the SmartVestor Pro program as well.

So, yeah. You don't get to make up your own rules if I'm going to send them to you. It's that simple. You get to do what we teach so that it's consistent. That's called integrity, the integrity of our brand here at Ramsey. And we fight really, really hard for that. And we work. We've got a team of 100 people doing nothing but working on this all the time.

And it's still, God, that's aggravating. All right. James is with us in Colorado. Hi, James. Welcome to the Dave Ramsey Show. Hi, Mr. Ramsey. Thank you for taking my call today. Sure.

What's up? So my question is, should we move, really? I've asked multiple family members, and especially my dad, if we should move. So the whole story, I'm going to try to really cut it short for you. My wife was on reserve duty for her two weeks for the Army Reserves, and she got offered a job, but not just a job, a job that we've been looking for for quite a long time here in Colorado, and we just can't find it. What is the job?

And she, so it's a, technically it's a, so she's a computer person, so she would be working at the computers, taking in equipment and exporting equipment. So she's the person that sends 18 wheelers across state lines with products from here and there. So once we get that military training in. I'm sorry. Is this a military position? So, yes, it is a military position. However, it's run by civilians.

So she would be a full-time civilian. And this is what she wants to do for a living, is do logistics for computer shipments. So this is a stepping stone to the job that she wants to get eventually. And where would you be located? We would be located for four years in wisconsin uh at fort mccoy uh so it's pretty close to two so it's a civilian job but it's a contract no well yes and no she would be working that job for four years and have the option of transferring to a different fort or stay there. And we would just be doing it for the four years.

She would be starting out $35,000 with increase every six months. Why would you move for a job making $35,000? So she would be doing that job, and then I would be doing pest control. That's what I've been in for the last three and a half years. But you can do that where you are. Right, and I currently am doing pest control where I'm at. Why would you move for a job making $35,000? Roger. That doesn't make any sense.

Okay. No, I doesn't make any sense. Okay. No, I wouldn't do that. No, I think I need a different career goal and a different reason to move. I mean, jobs making $35,000 are not that hard to find. Unless there's a serious career arc, which I did not hear. Four years is not a serious career arc, or months is. But, you know, you really got to look at this. I don't see any love here.

You keep digging in it. I'll hold on. I'll send you a copy of Ken Coleman's book. Maybe it'll help you with the process. It's called The Proximity Principle. It's the best career book on my shelf right now. This is The Dave Ramsey Show. you know what happens when you have a goal that is your goal and you define it so clearly that you actually write it down when you write it down on paper very clearly with a time limit, and it's measurable, and it's specific, you know what happens?

You have a very high probability of hitting that goal. And the probability of hitting that goal, unless you do that, is very low. A lot of work, but writing down a goal, folks, this is where you start. It's powerful. That's why I'm excited to tell you about our brand new 2020 goal planner from Christy Wright. We launched the first goal planner last year and inspired our number one best-selling book business, inspired by our number one best-selling book business, Boutique, a woman's guide to make money doing what she loves. And of course, Christy Wright did that, and she did the goal-planning tool for ladies last year, and it took off.

The goal planner is not just a calendar. It is a full working system to help you grow in your business and in your personal life, and it guides you through your goals, the inspiration you need to have them happen, get your why in place. Yeah, monthly lessons activities inspirational quotes pretty incredible last year they sold out in a heartbeat and here's the great news you can buy the 2020 gold planner right now it's on sale for 49.99 at davramsey.com if you look at these gold planners most of them are twice that out there in the market businessboutique.com or

davramsey.com to get it the 2020 gold planners 49.99 davramsey.com businessboutique.com or daveramsey.com to get it. The 2020 Gold Planner is $49.99. daveramsey.com, businessboutique.com, or call the Ramsey Concierge Team at 888-22-PIECE, 888-227-3223. Our question of the day comes from blinds.com. They are 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. Use the promo code RAMSY to get the best possible deal.

Rules and restrictions apply. Today's question is from Daniel in North Carolina. I have $94,000 in student loan debt, which I pay toward each month. It's the only debt I have. I know investing is best debt-free, but how can I invest and pay down my student loans at the same time? I'm 27, and I just received my master's degree. Well, I hope your master's degree has a value in the marketplace so that you can use it to quickly pay off $94,000 in debt. No, I would not invest at the same time.

I would 100% concentrate on the student loan debt. Listen, student loan debt is insidious. The very language, Daniel, that you use to describe this means that you are not intimidated by this debt. It's kind of like your own personal little stuffed animal. You're keeping it around. It's fluffy, and I like it, and it doesn't bother me much. So I want to start investing at the same time.

Instead, you need to look at this as a freaking dragon trying to eat you, your family, and all your future children. And you need to get your sword out, great knight, and go and slay the dragon as soon as you possibly can. It is a threat to your very family tree, and you need to get pissed off, not snuggly. You need to get mad, not be giving old Sally a big hug. She is an ugly woman with a wart on the end of her nose. You need to get her out of your house.

This is not a good thing to have around. As soon as you get rid of debt, then you're in a position to build wealth like nobody's business. But your number one wealth building tool is not avoiding your student loans so that you can start investing. It is your income. And you reclaim your income by paying off your debts. Mark is in Maryland. Mark, how are you? Good. How are you doing today, Dave?

Better than I deserve. What's up? So about a year ago, me and my wife, we called in. We did our debt-free screen. We paid off $ hundred thousand and fourteen months since then we uh we're moving on to baby step four five and six look at you man and and we're expecting our second child it's due october 11th all right so what we've done is we've put everything on hold like like we sit just stacking up money,

just, just like you say. And within that timeframe, and it's crazy. Like you say, you take care of the little things and then the big things you get more responsibility with. And that's exactly what's happened with us.

So within the last 12 months, like my business has taken off even more. So we've saved personal about $100,000, and then I've never had retained earnings or anything like that. I've got $35,000 in retained earnings. Wow, look at you. Well, you're over-saving. Yeah.

You already got your Baby Step 3 in place. You are debt-free except the house, and you have your emergency fund, right? Yes. Okay, I don't tell you to stop everything for baby and that. The only time we tell you to stop everything is when you're broke and in baby step two. Okay, okay, okay. No big deal. No big deal.

You're just $100,000 ahead. It's not a problem. Okay. So we have $30,000 in our emergency fund, so we could essentially just get down to that. Yeah, everything down to that yeah everything down to that it ought to be invested or really thrown at the house exactly where you are or if you want hey if you want to hold back i mean you can hold back uh 20 grand of it and put 10,000 and 529 this year 10,529 next year for new baby if you wanted to i don't care yeah because in because I met with my CPA again like two or three weeks ago,

and they were suggesting that I put $25,000 into like a SEP, and then that will save me $4,000 on my tax bill. Not if it's over 15% of your income. It shouldn't be over 15%. Okay, let's review. Stop, stop. let's review. Stop, stop. Let's review. Baby step three is you're debt-free and you have an emergency fund in place.

Okay? You're there. Then baby step four is 15% of your income. Not 13%, not 28%. 15% of your income going into retirement. Once you're doing that, the spillover of your fabulous income goes to Baby Step 5, which is kids' college. And you address kids' college however you want to address it.

You can throw some lump sums at it like I'm talking about or whatever. Okay? Then once you're addressing college and Baby Step 5, everything else goes to pay off your house. Yes. Okay, okay. I got you. So you're saying not if, like, don't put the $25,000 in if we have already put in 15% of our income. Correctamundo.

Okay. We're going to throw that money. You'll do that in other years, but right now we're going to get the house paid off with that money. Oh, yeah. What do you owe on your house? I was looking at it the other day. We owe $215,000, I think. Goddamn, man. What do you owe on your house? I was looking at it the other day. We owe $215,000, I think. Goddamn, man. What are you making?

What's your household income? So we're still kind of ironing out the numbers, but we should bring in like $240,000, I want to say, this year. So you're going to pay with the $100,000 we just found, because you've got $30,000 plus $100,000, don't you? Yeah, I've got, I mean, that's another thing. Yeah, with that money, all I'm going to do there is just throw it at the house. So we just put $100,000 on the house, and you're going to pay off the house like next year at your rate, maybe the year after. I mean, you're going to have no mortgage.

Then you load up everything. You max out SEPs. You max out Roths. You max out whatever, 401Ks. And you load the kids' college funds. And then you just go off into the sunset being outlandishly, outrageously generous. And you have a lot of fun with money. And that's really all it's good for.

Man, you are so close to completely breaking through baby step seven. You just got to dial in these last few steps again. Just reset, dial back in, dial back in. You're very, very close. Don't let your CPA get you distracted. You are almost across the finish line. And congrats on the new baby, dude. That's awesome.

Well, I got to tell you, folks, this stuff works. The more I sit here, the number of years i've sat behind this microphone coming up on my third decade very soon the more i've seen millions upon millions of you and that's a weird word to say but literally i mean there's 16 to 17 million of you listening to our radio show and our podcast at this moment um There's another several million of you, 100 million downloads on YouTube this year alone. 100 million downloads. So I know you're out there, and I know you're doing this stuff.

And the more I get, Dave Ramsey, he's just real tough. He's just straight in your face. It's like, you know, I'm just here to help, and I just don't have the patience to do it any other way. Let's just do this stuff, folks. You can do it. I know you can because millions are.

I think you're cool. That guy right there, that guy's a hero, Dad. Do you hear what he's doing? Second kid on the way. He's getting ready to be a multimillionaire. Way to go, Dad. This is The Dave Ramsey Show. This is James Childs, producer of The Dave Ramsey Show. Did you know you can now listen

to The Dave Ramsey Show on Pandora and Spotify? For all the ways to watch and listen, check out our show page at DaveRamsey.com slash show.