The Ramsey Show - App - You Must Change Your Habits To Not Waste Generational Wealth (Hour 3)

Episode Date: February 27, 2024

🎵 Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I am Rachel Cruz hosting this hour with Jade Warshaw. And we are taking your calls at 888-825-5225. Well, Jade, we're going to do something fun. Something a little different this segment. And next, we're going to start a segment called Pick a Side. And Pick a Side segment means that we're going to talk to a couple. We have Mark and Samantha on the line, and they are kind of in a disagreement of what to do about a situation.

And so they're each going to have time to lay out their case, present it to us, Jade. The referees. And then you and I are going to decide next segment who's right. Whose side do we think yeah i got my paper ready we cannot wait okay so to start us off here with the pick a side segment we have mark and samantha from harrisburg pennsylvania hey mark and samantha thanks for joining us afternoon ladies how are you we're doing great.

We are so excited about this. I'm so glad you're both here because we can really get the story. Yeah, we're still in negotiations. We just need an impartial third party to kind of lean us in one way or the other. I love it so much. Okay, let's hear it. Who wants to go first?

I'll lay everything out for us. Here's the situation. My wife and I recently built a new home. So we've been in it for a couple months now. And we're starting to receive estimates to build a patio in our backyard. You know, stone, nice pagoda, things of that nature. Yeah. that nature. Now, we received the estimate of $50,000. We have a CD that's due to mature in July, and it should be roughly about $27,000. Now, currently, we pay an additional $1,000 on the principal for our mortgage every month. So we're wondering, do we take that extra principal payment and save for roughly 18 to 20 months, use that CD to pay cash for the patio, or do we use that CD, put that on the mortgage to pay the mortgage off faster? Okay, how much do you guys have left on the mortgage?

We have $109,000. $109,000 left on the mortgage. And how much do you guys make a year? Roughly $70,000. $70,000. Okay. How much did you say the extra mortgage payment was that you're making every month? We're making on the principal $1,000.

Okay. $1,000 extra every month. Okay. And any other debt? Nope. We're on four, five, and six. Okay. That's great. All right. So who wants to do the patio? Who doesn't? Oh, I want to do the patio. Okay. Mainly my reason behind it is we recently lost a couple of friends here recently that are our age

and don't want to put off for tomorrow and not enjoy today. So, you know, since I'm not willing to go into debt for this, that's an absolute no-no. That's a dirty four-letter word in our house. Yeah, right. You know, we can cash flow it, save roughly about two years, cash flow it and enjoy the time we have with friends and family, entertaining, because that's what we built the house for, is to entertain everyone.

And it sounds like you saved a lot of money for it because you said it's a new build. You've only been in it for a couple of months, but you only owe $109 on it? Well, there's a little caveat to that. Actually, my wife and I lost our house in a fire. So we were able to rebuild the house without taking out any additional debt and keep the same mortgage, which we have. Oh, wow. Wow. That's something. And did you say, Mark, you're going to save for two years in order to pay for the patio or would you use the CD when it comes to maturity? Well, it would be save for the two years plus with the added CD, we should be able to cash flow it.

Okay. How much is the patio? Roughly about 50. 50,000. Okay. For the patio. Oh, I'm sorry. And the CD is the 27,000. 27. Oh, okay. I'm sorry. My notes, I had them flipped. So it take you, it take you roughly a year to get the patio in two years to pay off the mortgage. No, it takes about two years. Well, yeah. Yeah. Roughly my calculations using your guys' payoff calendar, if we just put the CD on the mortgage as well as our extra payment, it'd be paid for roughly in September of 27. So a little bit longer than that. So Samantha, we've heard from Mark and his, yeah, his scenario. So what makes you, Samantha, not want to do the patio and just want to go ahead and pay off the mortgage? Well, I keep reminding him how Dr. John says how good your body feels once you have no debt. And I keep telling him, think how much we will enjoy this patio once we truly own this house. It's clear and free.

Then we can sit outside and enjoy it. So that's basically my angle. I don't want to have any debt. And, you know, I think both scenarios are good, but I really, really want to pay off the mortgage. Not this way, you ladies anyway. Can I ask a question question since you guys have paid off your debt and saved up your money tell me something fun that you've done as a result of basically being in baby step six we just got back from a cruise about two weeks ago that we cash flowed okay so you feel like you feel like you guys are living, you're taking regular vacations. Is that fair? Yes.

Okay, you both agree with that. So it's not like we're not stifling ourselves, right? No, we're working our butts off, but no, we're not struggling by any means. Also having fun. Okay. Okay. I'll take that into my notes into my consideration yes um okay one more clarifying question if you threw

everything at the mortgage you'd have it paid off you said mark in about two and a half years ish about three three years three three and a half years okay About three years. But then two years for the patio. Correct. Okay. So in a, you know, in just a perfect world, in five and a half years, you could, both are going to happen. It's just a matter of which one goes first. Correct. Correct. Okay. That's great.

Interesting. Okay. Another question about the patio. Is it in phases? Is there some part of it that you can have now and save another part for later? Like, does that make sense? Yeah, my only reservation with that is that it's always going to get more expensive. So that $50,000 then turns into $55,000 into $60,000 if we wait. But yes, it could. But I don't think the original estimate will remain the same. Oh, you're saying just because of inflation and price of goods and just things going on over time. And labor, things of that nature. It will get more expensive. I'm almost guaranteed of that. As it goes, yeah. And what does the patio include? Be clear. Is it like outdoor kitchen and fireplace? Like, tell me more about it. Yeah, so it's, you know, a bunch of stoneworks

and raised planters. We have a, we're going to pipe a propane line in for a nice seated area with a propane fire pit. Okay. As well as a pergola. So we have a nice seated area to eat.

And, you know, once again, just a nice outdoor entertainment. What is it right now? Not the whole. What is it right now? It is grass and gravel. Grass and gravel. All right.

All right. I've got enough to take my notes. Okay. Okay. Mark and Samantha, hold on the line. When you come back, we'll tell you what we think.

I feel like we need a bailiff. Austin comes in and tells us. Tells us what to do. What the verdict is. Oh, so good. Okay. We'll be back. Hey, you guys.

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One with Mark, who wants to build a patio for $50,000. They have a CD that's going to mature next year. So that and their savings, they could cash flow it, build it in two years, and it'll be great. Samantha, on the other hand, wants to throw all that extra money, pay off the mortgage. It'll take about three and a half years to pay off the mortgage. And she just said, you know, how much when you don't have debt, there is a weight that is lifted off and there is such freedom, such freedom when it comes to that. OK, was that was that a fair summary, you guys on both sides?

Yeah, OK. Yep, absolutely. OK, we both have one follow up question. I have one final question and Rachel does too. So Mark, this patio, realistically, because you guys live in Pennsylvania, realistically, how many months out of the year do you think that you'll get realistic use out of this? We should get a good seven to eight months a year out of it. Really? Okay. Okay. Samantha, my question's for you. On a scale from one to ten, ten being I am obsessed with patios, one being I hate being outside and I never will use it.

No matter what. Where are you on the scale of the patio of your excitement and your use and where you want to put $50,000. Well, if we pay $50,000, you definitely should believe I will be using it. Okay. Okay. No, but for real though, do you, do you want it though? Like, do you, would you be excited about having it and hosting up there? Like, is that part of your value and dream and like, Oh my gosh, how great that would be? Long-term. Yes. Long-term. Yes long term yes um yeah okay so you you are excited

okay because i didn't want to make this decision and then samantha you feel like oh my gosh we're spending all this money on something that i don't even care to use right so yeah so i wanted to make sure that you at least would be excited for the patio yes okay all right. Let's say our answer on the count of three. What are we going to say? Patio or mortgage? Okay. Ready? Yes.

Count it down. Three, two, one. Patio. Oh! Were you surprised? I'm surprised. Did we blow your mind? Yeah, they're both like, it's the opposite of what we thought well let's tell them why okay yeah I'll give yeah Jade you give your reasons I'll give mine

and Samantha I just want to give you a hug right now I'm sorry we wouldn't get you I know my reason would just be because you guys have done such a great job and we say all the time you know baby step four, five and six is really about intentionality. It's not about having to be intense. And I kind of what Mark said, you know, you guys, you endured a fire, you've endured some loss. And I do think there is something to be said for making sure that you're enjoying the fruit of your labor. And I think that you guys would truly enjoy this. And at the end of the day, five years is going to pass both of these things are going to be done it doesn't throw you off course it doesn't take anything away so that's my yep for those reasons i'm in okay yep and i would say

yeah the time line is really important so if you guys said that you had gosh you know 10 more years on either ends right so much longer on it or you had six months right like I mean if it was both extremes I think my answer would be changed but the fact that it's okay it's kind of this perfect medium to your point Jade it is about intentionality not intensity and here's my belief too I really think your income in the next five years is going to go up. And so I think you're going to be able to get that piece of paying off the mortgage faster than you even think as you stretch out this five-year time frame. That's a good point. And even now, like your ratio of income to how much is left on the mortgage is so, like it's very healthy so yeah yep um so yeah y'all i would i would build the patio

well yeah i'm i'm very surprised do your happy dance mark do your dance i'm happy but you know one i can see both sides of the coin as well too that uh you know for as hard as we work um you know that could save us two years of the hard labor in order to pay the house off faster to have that, you know, the peace of mind for it. But I can also get a little bit of peace of mind while I'm kicked up enjoying a sunset. I know that's right. Mark, you're a good man. You did not do the touchdown dance that I thought you were going to do. I know.

That's funny. So you both thought we would say get out of debt because I guess that's what we're known for, right? Is that what you were thinking? Yes, but I think that's really good that all of our hard work has gotten us to this point, has led us to this fork in the road, and it sounds like we can do either because of our hard work and because of our sacrifices and our intentionality. I'm actually smiling. I can hear it. I can hear it in your voice. And you know what's funny? I'm actually smiling. I can hear it. I can hear it in your voice.

And you know what's funny? Sometimes when you want something, like Mark on his side, and then you actually, like, we kind of opened the door of, like, you can, then sometimes you kind of second guess. That's right. Do I really want it? Or was it more just this, like, kind of intensity of, you know, wanting something I can't have or feel like I can't. I feel like this story is not over.

And Mark and Samantha, let me add this note. If there were other personalities sitting in this chair, they may have given you other answers. That is a fact. I think Deloney would have said pay it off the house. Deloney would have. What do you think about George? George probably would have said pay off the house.

They need to live a little, those guys. Ken would say build a patio. Yeah, Ken would say build a patio. But I think George and Deloney would say pay off the house. So you may have called on the wrong day, Samantha. I so sorry that's a good point you may have to call back then i know you should you should do the exact same question and see what they say that is awesome you guys are troopers thanks so much and y'all enjoy it and take a picture and show it to us when it's done i was gonna say yeah tag us on social when it's done. And we want to see. We can do that. So great.

Thank you, guys. But I mean, either way, you're not going to go wrong. No, they can't go wrong. That's so good. You're going to have a patio and a paid-for house. It's just which one is first. And again, you guys, when you get to that point of four, five, and six, that's when you replace the furniture.

That's when you can replace the car. That's when you can do some renovations. A a lot of people go straight through though rachel it's like they feel that momentum of paying off debt yeah and it's not wrong we just don't want you to burn out right because there is a part of living life and and mark i'll say this too and samantha you can you can quote me on this don't go over budget because whenever you're doing stuff around the house jade it is the thing that just creeps. It's like, well, this stone is great. But if you get this stone, it's just a little bit more, but it's great.

And then the kitchen appliances, I mean, you can really get in the spiral where you go down real quick. That is true. And in two years time, you might find that there's more things that you want. That's true. I know. Just pay cash. Yep. Just pay cash. Yep. Just pay cash with it.

So, so great. Well, Mark and Samantha Trooper, so great. So, so great. Well, you guys, we are excited that we're actually going to be having an event here in Nashville at the Ramsey Solutions headquarters up in our conference center, May 10th and 11th. And it's the Total Money Makeover weekend. And it is happening. We love events around here.

We love hanging out with you guys. And people travel from all over that come. And Nashville is such a great destination place. And so there are millions of people out there listening or watching right now. And maybe you're sitting on the sidelines. Maybe you're kind of like, gosh, do I really want to jump in? Listen, this would be the event to really jump start you this is the event to get the motivation if you haven't started maybe if you're in the middle of this process and you're like man i i just need like-minded people in a room i need that extra motivation

this is for you maybe you're on baby step seven and you're like we just want to fun weekends in nashville and we're gonna hang out with the ramsey personalities love that because we're all gonna be there uh for the weekend and so again we are really excited we're gonna you know have some some talks we want to be able to dialogue with you guys in the audience and john and i john deloney and i did this with our money and marriage event which we loved is we did so much q a because hearing from people just like this show so much q a because hearing from people just like this show where it's color driven hearing from people and their stories and their situations is so helpful for other people to learn and so we're going to do a lot

of that we want to we want to hang out with you guys and and hear what's going on in your life so again lots of q a's there so uh with the first 500 tickets sold you're going to get a copy of the total money makeover signed by Dave. Nice. And those are going fast. And you can get your early bird tickets for just $99 for a limited time. So go to RamseySolutions.com slash events for that. So again, you guys, it's the total money makeover live weekend here in Nashville, Tennessee at the Ramsey Solutions headquarters. And that's May 10th and 11th. live weekend here in Nashville, Tennessee at the Ramsey Solutions headquarters.

And that's May 10th and 11th. May 10th, that night, George and I, George Campbell and I are going to be doing the Smart Money Happy Hour podcast, a live recording. And then the next day, Jade Warshaw and John Deloney and Ken Coleman and myself and Dave Ramsey, we're all going to be there hanging out with you guys. So make sure to get your tickets again at ramseysolutions.com slash events. Welcome back to The Ramsey Show. I am Rachel Cruz hosting today with Jade Warshaw, and we are taking your calls. Up next, we have Sam in Dallas, Texas. Hi, Sam. Welcome to the show. Hey, thank you for taking my call. Absolutely. How can we help?

Yeah, my wife and I currently, I guess I personally have a 529 account that has $700,000 in it. And I'm currently out of school. Me and my wife, we have one kid and then one on the way. And our question is, is it worth pulling $300,000 out to fully buy a home in cash? Um, if so, we will be losing about

$102,000 due to federal taxes and withdrawal penalties. I guess my question is, is that a smart move on our end? I'm 26, my wife is 24. And so that's kind of my question. Okay. So you have $700,000 in a 529? 529. Educational account, yes. Where did that come from? Your parents?

My grandfather. Wow. Money aside, it just kind of grew over time. That's a lot. Yeah. Do you have kids? Over over time. That's a lot. Yeah. Do you have kids? It's overwhelming. I do, yes.

My wife and I, we have one child and then we have actually a baby on the way here in the next couple months. Okay. Yeah, because with 529s, obviously it has to be used for education. It can be passed down to your kids so their coach fund would be fully funded it can translate to retirement on down the line after a certain point as well yeah i think it's after uh i think the account 62 67 well i think it has yeah it can transfer to a rough ira if the account's been open i think 35 years maybe that sounds right um how long has he had it open sam yeah it's been i believe since 2010 okay um yeah and i was told by my financial advisor um doubles every seven years about

seven to ten years up in the market right it doubles yeah um how much are you about four doubles okay and where are you guys financially sam you and your wife um are you guys renting right now do you own a home yeah we currently rent um and yeah currently rent okay do you have any money saved besides the 700 000 um about 35 000 savings saves okay is that retirement or is that just in a savings account? It is in an account, yeah, bank account. Okay, perfect. And then how much debt do you guys have?

Totally probably have I mean with our car payment, we have about $20,000. $20,000. And how much do you guys make a year? I currently make $65,000. $55,000? $65,000. Okay. Okay. A little piece of the puzzle here. I'm seeing here that there's a lifetime limit, by the way,

of money that you can roll over from 529 into Roth. And it's not very high. It's only $35,000. Okay. $35,000. Okay. I was thinking 35 years ahead of you, but I knew $35,000 was saying 35 years it had to be open. I knew 35 was in there. $35,000, okay? Yeah. Okay. Oh, gosh. I mean, man, I never recommend. I mean, usually the case is not taking money out. I mean, this would be in a sense like, it's not retirement, so you can't use it.

You can only use it for educational purposes. And on top of that, you only have two two kids and if it doubles right every four years it's just a lot of money like a lot of money there's part of me that would rope off an amount for your kids that by the time they reach education age there's the right amount for them there's the part that would rope off the,000 that you can contribute every single year up till that point. You can contribute it at the max Roth IRA limit every year until you reach that maximum. Now, you might want to work with somebody to find out if it's $35,000 just for you, or if it's your wife as well. So I'd ask somebody about that. And then honestly, I might be wrong, but I think the rest I try to get my hands on

because if it's a double, and you're right, it would double every seven years and it's just going to become more and more money that you're going to be taxed at 10% when you try to take it out. So I probably would alleviate some of this cash. And what would you do, Rachel? Yeah.

I mean, that's kind of where I lean my only hesitation Sam is um I mean it's such a gift that your grandfather gave you guys but when you enter in this amount of money I just want to make sure that the house you guys buy the lifestyle that you you know and I would use some of this to pay off your debt and get an emergency fund and all of it before even buying a house um use it to your advantage in that way too um which again just to be clear for everyone we usually don't recommend cashing out college but because of the massive amount that's right realistically will not be used for education for two kids is kind of the dilemma right there so it's kind of like the way we talk about when people invest in stocks we want people investing

but we don't want them investing in stocks. And when they do, we advise them to clear it out, even though they're probably going to pay a penalty and a tax on in the form of taxes on that so that they can pay off their debt or work their baby step. Yeah. And in this case, it's very similar. It's like somebody had the right idea. They invested in 529, but they went way beyond the limit of what makes sense.

Yes. And so now getting access to that is going to be better for you in the long run. Yep. So I have, hold on. I have categories for you, Sam, that I'm just thinking out loud what I would do. Think about your kid's college, okay?

And then maybe just for the fun benefit, because this is so much money, think about grandkids and just say, what if each of our kids had three kids? And what if their college was go ahead and pay for because it can be passed down that's right so maybe you say what would what would it look like to pay for eight kids totals college two kids that we have now and maybe if they each have i don't know i'm just throwing out a number right um because again you like that would be that would be a cool gift if grandpa sam you know had already paid so think about that yeah um look into the roth ira option that you can go up to the

limit every single year until you reach 35 000 and see if you i want you to do that with that money 35 000 of it like jade said and then also see if you can open up a spousal roth ira and if for some you know because of married i don't know if taxes, I don't know if that will be allowed. But if you can roll it over into your wife's Roth IRA too, I would do that. And then taxes will be a bucket too. Okay. So you have kids college, grandkids college for the fun of it.

I don't know. I just like the legacy idea of it. Roth IRAs for you, possibly your wife taxes next bucket sam is what when you do cash out some of that money after all that's taken care of debt goes first fully funded emergency fund goes second of six months of expenses and then third whatever's left can go on the house so that's what i would do but But Sam, I'm going to caution you because this is, we get this a lot when we talk to people that have, get an inheritance or they get a lump sum of money from insurance and they've been having habits of using debt, debt being part of their

lifestyle. And something like this is such a gift because it's going to wipe all that clean and you guys get a blank slate, which is beautiful and wonderful, but your habits haven't changed because of it. So you and your wife have to shake hands and look each other in the eye and pinky promise, we're not going back. This is not a get out of jail free card and then go back to the lifestyle you guys were living. I want you to be wise with this money

because what a beautiful gift your grandfather gave. Does that make sense? Yeah, it does. I think that was our thought is we really want to be smart with this money. We do want to be debt-free. That is one of our goals. But I do also like the idea of categorizing it out and saying, hey, this much amount for our kids, and that doubles over time,

throughout time, and kind of being a gift for not just our kids but also like you guys your same grandkids and so but um how old are you again sam how old are you 26 i just turned 26 okay and when did you get access to the money sorry i'm just re reweighing this when did you get access to it i believe i got access uh last year last year okay so you've been sitting on it for a year okay okay yes i'm with it it's good all right sam i hope that helps i know that was probably a lot of uh ways to go about it but i think um there's part of me that kind of wants them to do a little of the work like feel it a little bit if you wanted to you could if you're like you know what we whatever debt you have pay off some of it like work through it a little of the work, like feel it a little bit. If you wanted to, you could. If you're like, you know what? Whatever debt you have, pay off some of it.

Like work through it a little bit. Like feel it a little bit. For the habit's sake, right? For the habit's sake, yeah. To feel some of that sacrifice. Because that money's not going anywhere. It's just growing. Yeah, yeah.

So true. So true. Something to think about. Yep. Thanks for the call, Sam. This is The Ramsey Show. Our scripture of the day comes from Psalm 119. Your word is a lamp to my feet and a light to my path. Ella Fitzgerald said, it isn't where you come from, it's where you're going that counts. That's good. I love it. I know, not looking in the past, looking straight ahead.

All right, I'm Rachel Cruz hosting today with Jade Warshaw. We're going to finish out this show with Jessica in Los Angeles. Hey, Jessica, welcome to the show. Hi, ladies. Thank you so much for taking my call. Absolutely. So I'll just get straight to the point. I am married and I am expecting our first child.

And thank you very much. So once I go on maternity leave, I will not be returning to work. I will be staying home with my baby. And my husband and I, he, I did Dave Ramsey's financial university, and I'm all about saving and it got me out of debt in my 20s. So I'm save, save, save. And my husband, he and I had very different financial upbringings. And he's like, no, we need to invest, invest, invest. And so my question today is basically he takes on margin debt, and that scares me. And I know nothing about investing.

And so I feel very uncomfortable with the margin debt that he has in our brokerage accounts. And I just wanted to get a second opinion, like, oh, no, that's normal. Margin debt is normal. But like I said, that scares me. So just calling in, I'm like, I always tell him, like, you have to watch the Dave Ramsey show. Like, I'm all about Dave Ramsey. And so I was like, let me just call and get a second opinion. Well, good. Well, I'm glad I'm glad you called. So when you say margin debt, that he's taking on debt, he's taking maybe what he's gaining and then turning around and reinvesting it? Or what's, when you say that, what do you mean? Yes. He's borrowing money from the broker to invest it? Yes, he does. So the dividend pays off the margin debt. It also pays

off the interest. And then the dividend also pays off our car payments so he takes like what the um jody i believe what jody said that's exactly what he does okay i would not take on debt to invest in i just i mean the way that we teach we're just a zero debt foundation yes um and so to that end i would say no and then to answer your broader question. Now, I don't know how your husband is going to react to this. I have a feeling that he probably if he's doing this, it's because he feels very strongly about it, in my opinion. I don't think everyday Joes do this. I think that they probably don't even invest at all. So I think that's going to be your biggest headache is I don't think I think you knew what we would say about this the the problem is are you going to be able to get him to to just

hey can you just invest 15 of our income do we have to do this margin debt thing like what have you said that to him you know um I've I haven't approached him with that, but he invests 50% of his income and then 50% is what pays like our household, everything. So 50% pays like our rent, bills, everything else. And then 50% is investing. So it's not 15, it's 5-0. And you want to save some up for this baby. Do you have debt? I'm all about saving um the only debt we have are cars which gets paid by the dividends so other than that no debt okay so

there's just there's three different ways of thinking going on there's the ramsey way there's your way and then there's your husband so the way we the way we would teach and i think you know this the way we would teach is we'd say if if you weren't pregnant, the first step would be that you basically are paying off your debt first before you even started investing. But I kind of feel like I'm barking up the wrong tree even saying that because I don't even know that your husband will go for that. debt first save up three to six months then invest 15 save up for college kids college pay off your house and then you can invest till the cows come home 50 i don't care 70 whatever yeah what is he making when you say 50 he's investing how much how much is that 180 he makes 181 181 okay so okay so 50 though is for your lifestyle. Yes. So 90. Okay. And how much are you making? I make 85. Okay. And what do y'all do with your income?

Um, mine gets invested. Mine goes straight to investing. So we just live off of his. Yeah. It's straight into the brokerage account. How much do you have in that brokerage account? Um, I, my? I have an individual. He has an individual. And then we have a joint. And so in my individual, I think I have $15,000. But partial of my income goes to individual and then also goes to a joint. We both tied.

So it goes into multiple of our brokerage accounts. Tell us the numbers because that doesn't make sense so far. If you say you make $80,000 and he invests all of it, and then you have $15,000 in an individual account. So tell us all the numbers because that doesn't make sense so far. If you say you make 80 and he invests all of it, and then you have 15 in an individual account. So tell us all the numbers. 15 in yours, how much is in his? In his, let me see, I'm pulling it up right now. I don't know what he has in his, but I can tell you in like three seconds.

Let me pull that up. His individual is 141 and then in the actually that's um i'm sorry his individual is 49 and then our joint is 49 so this must have just started because you're telling me that you invest 90,000 of his and 80,000 of yours but these numbers don't add up to that but okay we just started investing in september of last year got it okay and how much you guys owe on the cars um on the cars i we owe uh 45 total in both cars 45 total in both cars okay yes um okay so yeah jessica i think what's happening and and it's easy to do because if you get in these like circles of people like, hey, did you know about this and the margin and what you can do here?

And you watch a TikTok video and you're like, wait, what? I can do that too. There's all these ways to do it. And so what we teach has been a proven system. People would call it boring. Your husband may just think we are boring old fashioned when it comes to money and the way to do it. But it's just the most proven, peaceful way to live with your money. It is how to build wealth the right way without playing all the games, using your income, not anyone else's, to fund your life, fund your future.

And that's what you're dependent on. There's an autonomy that we teach of not owing anything. And what that brings, ultimately, Jessica, is a level of peace. When you don't owe anyone anything, I mean, scripture is clear, the borrower is slave to the lender. There is a part there that you emotionally carry around when you sit there and play these games. And so what I would do, Jessica, and again, I don't know if you guys would go for it, because it's going to feel extreme on one end but i would i would cash out one of the brokerage accounts of the 49 000 pay off the cars um have

some money and it was my thought yep i would do that i would do that to pay off the car yep i would do that but yeah no yeah no you're right yeah we invest go ahead and pay it off and then and then jessica he's listen he a, he is all in the numbers. So what I would do is I would just lay out a very simple plan. Okay. You take this money, it goes to zero, but we have no debt. So that's off the table. We're going to take this other money, put it in a high yield savings account for a emergency funds, because we got a baby on the way. We got a life. And that's what this is going to look like. Then we're going to take this other brokerage account. Maybe we leave it, but here's what it's going to look like when we fund 15% of our income into retirement, which yours is going away because of the baby, but you're going to have $181,000.

And I would do the math, Jessica, just for his sake. Go ahead and you can go to ramsaysolutions.com and use our investment calculator. Take 15% of that income and plug it in. And how old are you guys? I'm 36. He's 33. Okay, so do it from age 33 to age 63. 15% of your income and that's with your income not going up the numbers you're going to show and do you know a conservative rate of return. You can do 10% whatever you want to do. But run these numbers and show him that you guys are going to be okay. And when you do it this way, it's maybe slower, but there's no risk. There's no debt in the picture. And you guys are working as a team because there's a lot of separation here. I want

you guys working out of one account. I want you guys seeing this as really as one as well in your language even. I appreciate it. I definitely appreciate it. I kind of feel like maybe I'm not too far off because I know I have my thoughts about not having debt. And I was like, well, I know zero about investing. And my husband, he's a very intelligent man, but still, I think he feels like, no, this is a way we're going to do it. But I'm like, well, maybe he's right. Maybe I'm right. Like, maybe there's truth in both sides. So I really appreciate your ladies' input. And yeah, thank you. I appreciate that. I would love to like say a prayer, light a candle, but I hope to reduce our, our, into our, reduce what we invest.

But yeah, well, just so you know, just so you know, I plugged in the numbers for you. If you invested 15% of $181,000 for the next 30 years from 36 to 66. You've already got $50,000 in one of those accounts. That's over $6 million. I'm just letting you know. Yeah, you're going to be fine. That ain't bad. You're going to be fine.

So great, Jessica. Well, good luck with everything, baby and all. We're excited for you. Thanks to all the guys in the booth for making this happen. Oh, and Taylor. There's a lady in there. Making this show happen. Thank you, Jade, for always being a great a lady in there. Making this show happen. Thank you,

Jade, for always being a great host. You bet. And thank you, America. And remember to take control of your money and create a life you love. I'll see you next time.