The Ramsey Show - App - You Have To Sacrifice Now To Win in the Future (Hour 1)

Episode Date: January 1, 2024

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. We help people build wealth, do work that they love, and create amazing actual relationships. Ken Coleman, Ramsey Personality, host of The Ken Coleman Show, an expert on your career and your job. And boy, is that a subject out there today. We're here to talk to you about your life and your money.

The phone number is 888-825-5225. The call is free, and some say the advice is worth exactly what you pay for it. 888-825-5225. The call is free, and some say the advice is worth exactly what you pay for it. 888-825-5225. We're going to start with Baltimore this hour. Robin is there. Hi, Robin. How are you? I'm doing well. How are you, Dave? Better than I deserve. What's up? Thank you for taking my call. My question today is, my husband and I own a home, and we're hoping to move soon, but we also have some debt. So we're just trying to figure out the best next steps for ourselves.

Okay. Why are you moving? We need more space. We have a two bedroom and we have an 18 month old son and we would like to try for another baby soon. So we would like to have a three baby soon. Cool. We would like to have a three-bedding house and I also work from home so we do need like some type of office space or area. Okay how much debt have you got not counting your house? Not counting the house I would say 70, 50 in student loans and I'm sorry 55 in student loans and 15 in credit cards. Okay. And what's your household income? $95,000.

Good for you. Okay. What do you guys do for a living? I am a financial analyst, and my husband works in auto manufacturing. Okay. All right. Well, your goal of moving up in-house to have, you know, a little more room for your family is a great goal.

And it's a reasonable goal. I think we can agree it is a want and not a need. Okay. I would say like you could get to. A need is shelter. You have shelter. You have one baby and a two-bedroom house. Everything's okay today.

But it'd be nice to move up. It'd be nice to move up. I'm not saying you can't do a one. I spend money on ones. I'm okay with that. But we need to classify it where it really is. Now, the number one key to building wealth, the number one wealth-building tool that you have is your income.

And when you send it all to Sally Mae may it's very difficult to build wealth and so uh before you buy once you get your house in order no pun intended um and uh that means you get these debts paid off and so if i'm you i'm rolling up my sleeves i'm going to work as much as I can work. I'm going to live on nothing, and I'm going to knock out these debts ASAP. And that's probably going to take you 18 months, and that's living on beans and rice. 18 months. So you're suggesting in the house for now. Stay in the house and get out of debt before you spend money on luxuries,

which is a move up in-house is a luxury. Your family is not going to die if you don't move up in-house. It would just be a really nice thing to get to move up in-house. That means it's a luxury, not a need. Yeah, it would just be uncomfortable. And I guess a lot of things would cut expenses, but like a daycare is so expensive we pay um we pay $1,300 a month in daycare it's more than our your option is to move up in house and keep the debt and you will be stuck in the middle class the rest of your life because

you're not dealing with your issues I want you to become wealthy I need you yeah when you move up in, you're going to move up in-house payment. Now your budget's going to be even tighter because Sally Mae also needs her own bedroom. Yeah. So Robin, you do make a very good point. You can cut expenses. So what can we do to reduce the child care costs? Got to look at it from 18 different angles where there's a will there's a way is an old phrase and in this case yes $1,300 a month for child care that's a lot and it's more than your mortgage you said so I would absolutely be doing what Dave said but finding ways to make more money and reduce cost which means you could take that 18 months as Dave saying with rice and beans and

with more income we add the more intensity we, the quicker you get out of this debt. And now we can begin to think about the future. But your focus needs to be on the now. Thanks, Robin. We appreciate your call. So, guys, I talked to our staff here, our 1,200 team members, Monday morning. And we talked about it a little bit on the air the other day. But it bears repeating, Ken, that here's what i'm always going to give you

i'm always going to give you the hard path on the short term because it is the easy path in the long term i'm never going to give you the easy path in the short term because it's always the hard path in the long term easy path for her in the short term is go buy a nicer house but she's stuck in the debt her budget's even tighter she's going to struggle to be able to build wealth and find money to save and invest for her kids college and for their retirement investing and be able to get the house paid off and sally may kicked out and the other rest of that debt kicked out that's what normal people do they buy whatever they want whenever they want it like they're in congress and normal normal finances in america suck you don't want to be normal

it's awful and so what you want to be is unusual you want to be weird so one of the greatest compliments you get on the shows if i call you weird. It means you're doing hard stuff to get an easy life long term. It's always harder to work out and avoid a donut than it is to just pop donuts in your face. Believe me, I know. I have the ability to eat untold infinite numbers of donuts in one setting. And I have to curb that appetite but and it's hard but it's easier than walking around with all the diseases of obesity right well you know the mindset this is a mindset so a lot of people think of this type of rice and beans gazelle intensity

that dave that we teach as a sacrifice and i think it's worth shifting that mindset from thinking of it as a sacrifice and think of it as an investment it's a price to be paid yes i am investing in my mission to a better life that's it and you've got to invest in yourself so stop thinking of oh it's drudgery and oh we got to sacrifice and oh we got this you know okay here's if we do this this has yield long-term yield long-term impact long-term return on my investment not my sacrifice but i'm investing in me my family our future yeah like a buddy of mine there was a huge negative article written about me a buddy of mine goes like oh man i'm i'm so sorry and i said well you know it's the price

of admission to get to be davesey. I'll pay the price. It's awesome. I don't want to be somebody else. I like me. Life's good. I got a great life. And if all that means is some idiot left-wing journalist thinks I'm a capitalist pig and correctly identified me as such, then have at it, baby. That's the price of admission to be Dave.

That's right. You know, what's the price of admission to be wealthy? What's the price of admission to be dave that's right you know what's the price of admission to be wealthy what's the price of admission to raise great kids what's the price of admission to look at your drunk friend and say you need to get off the sauce you're screwing up your life it's harder to have the conflict than it is go along and buy him another round hard is easier than easy always turns out to be hard because you're wimping you're mailing it in you're not paying a price this is the ramsey show ken coleman ramsey personality is my co-host open phones at 888-825-5225.

Jackson, Kansas City. Hey, Jack, how are you? I'm doing very well. How are you doing? Better than I deserve. What's up? I had a question about purchasing a vehicle in today's climate for my wife.

It would amount to purchasing two vehicles at the same time, basically. Okay. Riddle me this. What are you talking about? Well, I've been driving a vehicle for about 20 years as my everyday vehicle. I inherited it from my father, brand new, basically. He bought it brand new and then got diagnosed with a terminal illness and ended up passing away soon after. And so that was about 19 and a half years ago. I've been driving the car. It's a Subaru race car. Long story short,

I've been taking it only to dealers and my local dealer kind of wrecked the last time they serviced it trying to install a clutch and destroyed the transmission and did a bunch of damage and basically ruined the car for me so they're gonna pay you for the car uh they we made a deal we came to a deal oh that avoided anyone going to court and so they're going to sell me a new car and give me a bunch of money off on it basically to make the equivalent of the value of the other car yeah plus a little bit over i think and you're and you're well yeah i'm sure there's margin in that thing. I'm a good customer. There's margin in their deals. So you're getting a brand-new Subaru?

Yes. Okay, so that deal's done. Base model, basically. That deal is done. And what are you spending there? Here's the thing. What are you spending on that car? It's going to cost about $25,000. Okay, what's your household income?

Our household income is about $200. Okay, and you're wanting to spend what on your wife's car? $220. So here's the thing. The dealer felt bad, and he told me, I told him my wife needed some work on her vehicle as well then, and he said he would give her the same deal he's given me if i wanted to buy her one so i wasn't thinking about getting her one before he said that he's going to give you the price of your old car off of your wife's and your car or just a good price he's going to give me all the money he's given me off my deal and he said he'll do the same thing for her. He'll give her the same money off as if he wrecked her car just because he feels bad, he says. How much did they give you for your old car? For the old car, it's leaking out of the head. How much money did they give you for your old car?

For my old car? Yeah. They basically gave me about $ four thousand for my car okay and then they knocked off how much more the car then they knocked off how much more they knocked off another three okay so they're gonna knock seven thousand off of another subaru if you bought two in a row basically yeah and and your wife is driving what now she She's driving a Subaru that's... What's it worth? It's got $100,000.

It would be worth about $7,000 or $8,000, except that it's got to have the leaky head gasket, which will cost $3,000 to $4,000. All right. So you're going to be able to sell it for $5,000, right? Yeah, if I fix it. No, if you don't fix it. If you fix it, it'll sell for $7,000 or $8,000.

Yeah, I guess. It's just drivable. It's just got a leaky head gasket. And it's an old freaking Subaru. Now, what is your net worth? What is your net worth? Net worth? I just did a calculation. I think if I go by just net worth,

we're at about $230,000 I guess. Between equity and money. Do you have the cash to pay for all these cars? No. Well, only if I take money out of a Roth account or something. No, we're not buying these cars. We're not buying cars with Roth money.

I only have the cash to pay for one car. Okay. Okay. But my mother's been telling me, you know know maybe i should be buying some reliable cars for yeah maybe you should but maybe you shouldn't be going and taking your retirement money out to do that you probably i'm going to pass on this i'm going to pass on the second one because i don't recommend people buy new cars that go down in value like a rock except for in the last 12 months um uh unless they have a net worth of in excess of

a million dollars because that way you can accept the blow on that so i would save up some money and i would buy your wife a better car that is used and i would forego this sweet dealer's offer which is really not that great an offer anyway it's an okay offer but it wasn't like he gave you like half off the stinking thing or something so he basically gave up his margins is what he did and he's got you back on the hook for more work in the and everything else in the in the shop but no i i'll pass on the second one i would save up and buy her a better car and i would pay cash for it and i would not cash out my retirement but we don't borrow money to buy cars we don't buy

cars where the total of all your vehicles is more than half your annual income and I don't buy brand new cars unless they're a million dollars unless you have a million dollar net worth or greater and here's why because they go down in value and you need to be concentrating on things that go up in value yeah and in this situation I'd go and fix the Subaru for the wife and then save up save up you're going to get a decent amount I think Dave you're right you're going to get seven or eight for it if it's fixed up and then you put that into the savings and all of a sudden we've upgraded pretty substantially without any kind of debt it is doable and people get the itch and i don't i don't fix six thousand dollar cars at the dealership either no uh i fixed six thousand dollar cars independent mechanics where the cost is about

half of what it is to fix a car to dealership and so um if you have a brand new vehicle and you know whatever and you spend a ton of money on it you make a lot of money and you want to take it in for the dealer to service it that's one thing but you don't take a six thousand dollar car into a head gasket job into the dealership you're gonna pay double what you pay with an independent good mechanic shopping around so do some shopping around i'm not doing it no no so a super with a hundred thousand miles is just getting warmed up yeah well that's okay i mean i don't mind him moving up and no but you can by the way i forgot to tell you the federal law too wife gets the good car that's exactly that's the federal law so that means she gets the new one you get the one with the busted head gasket. Y'all are about to trade cars out.

So this is how that works. That's a marriage thing. They're just helping you. Oh, open phones at 888-825-5225. Dylan's with us in Scranton, Pennsylvania. Hi, Dylan. How are you? Hey, good afternoon.

I'm doing very well. How are you today? Better than we deserve, sir. How can we help? Good. So I have a general question. I took a job with a church in Philadelphia last year in September. They offered me a $60,000 salary, but it's basically a package deal. I'm currently 23 years old. I'm married. I do own a house with my wife. We purchased in December last year. And basically, part of the deal is that right now I'm on my parents' insurance,

but the church does offer full health insurance, full medical, but I'm going to lose $18,000 of my salary. So the church is paying me that $18,000 currently. So I'm bringing home like $58,000 a year. Why would your insurance be $1,500 a month? I have no clue. And I had worked for Walmart prior to this, and I know the family insurance was a lot cheaper. And I'm just trying to navigate how to approach this because I don't want to get two years. So basically from now, two years from now, I'm going to lose $18,000 of my salary

due to health insurance. Small church? Not quite. It's a larger church. They employ 350 people. They do have a full school. Their health insurance plan sucks. Yeah, it's bad.

But you got two years. Yeah. I have two years to prepare for this. So the reason I wanted to get your professional advice on this was that I'm trying to navigate what to do. So currently I am a property caretaker and I'm an apprentice to literally every trade. So I'm learning mechanics, I'm learning plumbing, electrical, everything with this job. Do you want to be full-time ministry or do you want to add one of these trades as a part-time

gig to supplement? Which one? I think my desire is to be full-time ministry. Then do the trades on the side to make up for the increased cost of insurance. You got two years to figure this deal out. Go shopping on the health insurance and see if you can't buy in the independent market cheaper too. But I would stay in the ministry seat. That's the seat you want to be in. Don't let health insurance drive you out of your dream. Hey, you guys, health insurance costs are only moving one way and that way isn't down. And if higher costs aren't enough, the wait times to see your doctor are longer, and it's harder than ever to get anything approved through the bureaucracy.

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chministries.org slash budget. That's chministries.org slash budgets. Ken Coleman, Ramsey Personality, is my co-host today in the lobby of Ramsey Solutions on the debt-free stage. Sean and Tammy are with us. Hey, guys, how are you? Doing fantastic. How are you doing, Dave? Better than we deserve. Good to have you guys. Where do y'all live? We live in Houston, Texas area. Oh, wonderful. So good to have you. How much debt have you paid off? We paid off about $100,000. Wow.

How long did this take? It took us about eight years. Okay. And your range of income during that time? It ranged from about $70,000 to about $130,000 for both of us. Okay, cool. And what kind of debt was the $100,000? It was mostly student loan debt.

Oh, Sally Mae. took a while to get her out of the house huh so uh tell us the story what happened here there you go um so we uh got a copy of your show yeah yeah so so we we moved uh to houston and bought a big house um a big house you know it about 4,000 square feet. And I started a new job there. And a buddy of mine at work, he went around and he was passing around and said, hey, you guys, I got this audio thing. And we downloaded it on our computers. I listened to it, and it was a financial piece of university.

It was apparently a pirated copy of it. Okay, that'll work. And we started listening, and we were like, wow, we're doing that wrong. And we're doing that wrong. And there's a way better way to do that. Yeah. It was like one thing right after that. I was like, oh, man, this makes so much sense.

Why are we doing, why are we so stupid? So, we made a huge chart on the back of our bedroom door that had all 100 little steps that we needed to get to $100,000. And we just got fired up and we started paying it off and paying it off and paying it off. And we did great at the beginning. And then I started having these weird spells where I would forget things. So we went to the doctor and found out that I had epilepsy and tried a couple of medications and then they didn't help. So then we went and got an MRI and found out that I had epilepsy and tried a couple of medications and then they didn't help. So then we went and got an MRI and found out that I had a brain tumor.

Oh, there's that. Wow. So then we were like, okay, you stop the debt snowball. You just start stockpiling money and you get ready. And so I had the brain tumor taken out. And then we find out that if you do it on purpose and you save up your money, it takes a good two, three months to get the bill. And this time we just paid off the bill with cash instead of adding to the debt like we had

our whole lives. One of the debts that we had was the birth of our daughter, Kaylee, this cute little blonde over here. But with her, we knew we were pregnant. It took nine months to bake her up in the oven. And then nine months later, we still hadn't paid it off. And that's how we were living before. And now we get a brain tumor out of the blue. And by the time the bill comes, we just pay it off. Wow. That's a nice thing to have while you're facing something that severe. Yeah.

Well, and it doesn't stop there. You know, afterward, because of the brain tumor, we found out there was other complications that happened. You know, she had lost, you know, when they it out she lost sensation in half the half of her face so she couldn't feel what was in her eye so she had an eye surgery where they grafted a nerve into her into her face from her leg and then uh she couldn't hear so or actually she could hear too well i guess is the thing so three three ear surgeries later, she now has much better hearing. But this was like a year later and then a year later so that we could pay our out-of-pocket max

every year. But that kept kicking Sally Mae down the road a little bit because you're dealing with health stuff. Exactly. I always say the word that the little engines that could. Yeah. Like we were on the debt snowball plan and we wanted to do it, but all these things kept coming up. Much more important to take care of you than Sally. Yeah. And then our we crashed our car yeah i got in a head-on collision and uh why not yeah why not well and and and that was that was our first car that we bought with cash because we had that we had to upgrade from the little tiny sedan that we had because we had six kids now so we bought a we bought a minivan a used minivan had a total debt and then i was informed about a month later that i was put on notice for a layoff of course yeah so it all happens all at once but i'm country song

man it's unbelievable and so you know people tell you like yeah i started dave ramsey and it's a good idea and stuff but then stuff happens in life and you can't just follow it. And we were like, baloney, we don't do debt. Even if we have six bodies and a car that only fits five, we're going to make do and we're going to buy a car with cash because we don't do debt anymore. So we bought a brand, well, not a brand new car. It was new to us. It was a used car that had 40,000 miles on it. We were, you know, the Lord blessed us with the cash that we needed in order to get it

paid for without going into debt at all. So many naysayers kept saying, hey, guys, just get a loan. Come on, you can do it. I mean, it's just a car. We decided not to. And then the medical journey just kept going on. So I guess what was it, total? How many surgeries?

So then they said for epileptics, there's this thing you can install in your brain and it will help turn it off. So I had brain surgery again and then it didn't work. So then the next year they said, we can just go in and take that chunk of your brain out. And we said, okay.

And by this point he was like, okay, we're putting our out of pocket max in our budget. Cause we keep doing it year after year. And then it didn't work. Because I'm just that patient. But luckily, he said, we can put the thing back in your brain. But I can't imagine how it would have been if this doctor was like,

there's something else we can try to help you because you're a difficult patient. But you haven't paid your bill from last year. Because that's the way we were living before we did the Ramsey plan. But this way, we paid it with cash. So when they had something else that we could try to help us. So I'm counting five surgeries now or six? How many was it? Seven, I think, total?

Total is nine. Well, total is nine. Four of them were brain surgeries. When was the last one? How long ago was the last one? October? This long ago. I was bald in October.

All right. So how are you doing overall now? I still have about two um seizures a week bless you but the thing is what would it have been like if every time i needed a surgery or every time i needed to change medications we had to panic about money yeah like now it's not a problem while you're doing all nine surgeries you go ahead and pay off sally may you know and have some kids and live like and fix a head on and get laid off and yeah oh my gosh we're the little engines that could and you know the thing i think more than that i think you just didn't quit yeah

oh my gosh unbelievable heart and and i just this isn't a question just a comment i hope the audience is paying attention to this you had financial peace in the midst of still paying off the debt you know the fact that you guys press pause but the ability to do that dave i mean that you know they hadn't even paid off all the debt yet and still cash flowed stuff yeah very amazing huge you guys are something else very very well done what do you tell people the key to getting out of debt is um to not pay for Christmas with your December paychecks. It's very prescriptive. I'm also going to tell you, never quit. That's right.

It's like a Winston Churchill speech, never quit. Never, never, never quit. Once we got the budget, it was just nice to be able to say, this is how much we need for new school clothes, and this is how much we need for Christmas, and this is how much we need for new school clothes, and this is how much we need for Christmas, and this is how much we need for out-of-pocket max in case Tammy needs to have brain surgery. And I'm the free spirit. And now the thought of not having a budget, it's scary to me because I'm like, but.

And a monthly budget meeting. Yeah, really. So let me ask you this. I don't know anything about the medical part of this. Does stress add to the likelihood of you have an episode yes he's shaking his head she says no but i say yes because i see it okay all right so the fact that you don't have financial stress in the house is probably helping it's huge yeah and it's allowed us to focus on the things important these four right here our relationship with each other her health yeah her health exactly yeah instead of focusing on money on on this material stuff that

that consumes so many people's lives stupid car payment on a stupid car yeah wow you guys are fun amazing you're you're inspiring wow all right let's bring the kiddos up. What are their names and ages? This is Jacob, Sierra, Haley, and Kai, and they are 13, 11, 9, and 7. All right. Very good. We've got a copy of Baby Steps Millionaires for you. That's the next chapter in your story. And you guys have quite a story.

The little train that didn't quit, for sure, without a doubt. Also got a copy of a non-pirated financial peace university version and we'll let you watch it legally this time and available with ramsey plus it's online now and we'll give you a one-year subscription so you guys can go through it brand new videos on this and they're the best we've ever done the class is the best it's ever been in all these years and also a copy of total money makeover. So, all right, gang, count it down. $100,000 paid off in eight years while they take quite a journey from $70,000 to $130,000.

Count it down. Let's hear a debt-free scream. Okay, you guys ready? Three, two, one. I am debt-free! I am debt-free! I am debt-free! Love it!

Whoop, whoop, whoop, whoop, whoop, whoop! That's how it's done! Wow. Ken Coleman, Ramsey Personality, is my co-host today. Matt's in Erie, Pennsylvania. Hey, Matt, how are you? Hi, Dave. Hi, Ken. How you doing? Better than we deserve, sir.

How can we help? Yeah, so my wife and I were 23 years old. We got married when we were 21, and I'm a youth pastor, and she works customer service jobs so that she can stay at home and take care of our baby. We're on baby steps four, five, and six, and we've never had any debt except for our mortgage. Way to go. We both have always... Thank you. Appreciate it.

We both have always enjoyed listening to you and following your program, but we recently took FPU, and we left it feeling super inspired to pay off our debt for our house. We currently have $48,000 left on it, and it's a fixed 15-year mortgage, but I don't want to just wait 15 years for it. I don't want to just survive. I want to thrive. You know what I mean? And so I hear you talk about the importance of having a big shovel to pay off debt. And as someone who's getting started in his career and his ministry, I don't have a huge shovel. My question is, is how can I wisely increase my income while balancing the responsibility and calling of being a pastor

to pay off our house? Good for you. Yeah, I love the question, Matt. My dad was a pastor, and many times in our childhood or adolescence, he would have to, because he pastored a small church, so had a very small income and not a lot of opportunity, he would have to add things. And so, you know, dad was very good with construction work and things of that nature so my my thought would be where do you have some talent and skill that you can immediately put to work so you've got some premium something premium to offer based on the time you can give so how many hours a week could you give well i could do i could do evenings and then fridays and saturdays but maybe like i mean mean, realistically, maybe like 20 hours, something like that. So you start there.

I've got 20 hours max. And so what can I do that will allow me to make some money quickly? Because we're talking about hourly work right now. You can make $20 an hour if you're stocking shelves at Walmart or Target. But what's a skill that you have right now that you know you can get paid for? Well, I really like to work with people, like talk with them. You know, I'm pretty relational. I can't say I'm super handy, but I'm learning, you know, I'm 23.

I'm really, you know, I kind of view myself more scrappy than anything. I'll just do whatever I can to really make a buck. So your degree, I mean, you went to seminary. Did you have another degree other than seminary? No, so it's a youth pastoral degree with pastoral leadership. Perfect. Good, good. Okay.

Yeah, so it's just a matter of poking around and figuring out what you could do that you can make the most per hour on the short term and i honestly my general rule is i always i'm kind of entrepreneurial so i always move towards some kind of self-employed anything and it could be something as silly as walking dogs or pet sitting and you know making 30 bucks an hour doing that and um i mean we've had people do their debt-free screams on here that have done that. The great news is you're way ahead. A, you're thinking about this. B, you only owe $48,000. I mean, you could pay off this house in like two years of extra income.

Yeah, that's the goal. That's what I want. Yeah, but I mean extra income. It's just a matter of how much you guys want to get jacked up about this. And then the other question is, you know, what Ken's saying is true. The data that we have working with churches all across America, we've worked with about 75,000 churches now over the past 30 years. And the data that we have is somewhere around 80% to 85% of pastors are bivocational most churches are not of size that they can uh even support the senior pastor full-time uh just in general the movement the way

the church movement's been in america and uh traditionally the worship pastor and youth pastor starve to death you know until you get into a mega church or something, right? And so, you know, in your calling, it's going to be a few years before your calling pays you a substantial amount of money. Now, as your calling does develop, though, particularly your oratory skills, if you become a great preacher, you may get some side gigs speaking at youth conferences and other things, you know, filling in for a pastor here or there, pulpit ministry, that kind of thing.

And even later on, maybe some writing. So a lot of pastors supplement their incomes within the calling. And then some just simply, you know, they have a bread route, a donut route, and they deliver off a truck, you know, and they work UPS or whatever it is you do. But, you know, the good a truck you know and they work ups or whatever that whatever it is you do but um you know the good news is you're willing to work and like you said scrappy and honestly i'll take scrappy over six degrees any day uh six scrappy will get her done and

there's so much opportunity right now day for somebody who's scrappy so you know matt look i'd look at people-based work you got those 20 hour. You got that time of day that you're looking at. So this is just the hunt, as Dave said, but you got limited hours and you have a limited time during the week. So what are we looking at? People-based work sure would be great. Sales, customer service work. But if it's just good old-fashioned delivery or waiting tables, I would do that. Yep, exactly exactly nick is with us in salt lake city hi nick how are you good how are you guys doing better than we deserve what's up so i just had a quick question for you guys so uh we have an opportunity in our life to buy a house but the problem is is that it's a million-dollar house, but it has two rental properties inside the house

that would bring in around $5,000 a month. And so the mortgage would only be around $4,000 a month, and we could make potentially around $5,000. Do you think that would be a smart decision to do to buy that house? Not if you're dependent on the rent to pay the bill. Okay. Let me tell you what. I, I don't know where, I don't know where you were in the last three years,

but in some areas, rent, you couldn't evict someone for not paying for six months because of the pandemic. Yeah. During which time you would have been foreclosed on, sir. Yeah. So the thing is, though, is that- You drove right past that and didn't hear a dadgum thing I said.

I did. But I'm just curious because we're... I don't know. We feel pressured to do it from certain people, but we're kind of hesitant. The thing is, though, is that it's not like a typical rental at their B&Bs, and they have a three-year... That's even worse. ...three-year track history where they're bringing them...

That's even worse because now we've got cities passing laws not allowing Airbnb because they're in violation of zoning. Okay. Why were you hesitant? You just nailed the whole thing. You're feeling pressure from some people that you and your wife respect big time. They have a lot of influence over you and yet you're hesitant. What are you hesitant about? Just I think it seems like a good opportunity but also don't know if we can make it work yeah i think there's a lot more risk here than the people pressuring you have any concept of that's right they don't know what the flip they're talking about so no i'm not going to tell you to do this deal based on this i think you're doing i think you're going to get yourself in trouble

uh and on top of that you're living in a house with other people kind of defeats the purpose man if i wanted to live in a hotel i'd buy a hotel no thank you um just you know all in the name i can make a buck on the name of all real estate's a good investment all real estate's not a good investment real estate's a good investment. All real estate's not a good investment. Real estate is a good investment. All education is not a good investment. Education is a good investment. But there are stupid forms of real estate and stupid forms of education.

I mean, you can get a degree in German polka history or medieval left-handed puppetry, but that doesn't mean you're going to end up being anything but a barista and that you know that's stupid education and when you buy real estate leveraged up to your eyeballs and you say well the renters are going to pay the rent that's stupid because i've got i've had renters for 30 years let me just tell you some of them don't pay sometimes they go in chapter 13 bankruptcy there's a pandemic moratorium on for on evictions and you're sitting on them and uh you know it had nothing to do with the pandemic they just chose to not pay because the government told them they could and then when you do finally get them out they've oh can you tell i'm bitter well you got to beware of the influence trap what

you just heard folks happens to all of us at some point in our lives if we're not careful and people that we respect and love dearly that are stupid who yes but yet they tell us it's a good idea and something in our guts this young man he said we're hesitant about it he didn't feel right about it but the influence of people who have no idea what they're talking about makes him think well gee whiz they said it's a good idea maybe i should consider it thankfully he called the show today. Read some articles about what's happening to Airbnb politically in a whole bunch of markets. They're getting their face smacked, man, and their hands and everything else smacked. And so you can read.

You build your whole pro forma based on Airbnb performance. You can really get yourself in a crack, dude. Don't do it. Don't do it. This is the Ramsey Show.