The Ramsey Show - App - You've Gone Hog Wild! (Hour 1)

Episode Date: March 5, 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 actual amazing relationships. Rachel Cruz, number one best-selling author and my daughter, and host of the Rachel Cruz Show, co-host of the Smart Money Happy Hour and a bunch of other things as my co-host today. We're taking your questions about your life and your money. And you're back.

I'm back. I know. There was a bet going on on social media if you would ever come back. Everyone was like, where is Dave? Proof you can't count on social media for anything. I know. Well, welcome back. Well, it's good to be back. america missed you glad you're here i've been sharon and i've been down south for a month and a half and um took a little time off we've never done that in the entire working life so

i've never taken that much time off but uh so i'm ready to be back i'm getting stir crazy proof i'll never retire because she would not let me but yeah uh we had fun though we had a blast and uh it's good to be back in front of the microphone again and uh we can put all the fears of the youtube commenters to rest i guess but uh or whoever it was it was coming you're still here you're still here i didn't know that there was a commenter but you you saw there's a couple yeah a couple were like i mean he may never come back. We don't know where he is. And usually the first show with Dave Beck, he's a little feisty. So Reed and everyone get ready.

That's because I get afternoon coffee. That's what does that. Open phones here. We'll talk to you about your life and your money. The phone call is free, and some say the advice is worth exactly what you pay for it. 888-825-5225. Let's start with Reed in Dallas. Hey, Reed, what's up in your life? Hey, I'm doing good.

How are y'all doing? Better than we deserve, brother. How can we help? Yeah, so I'm just trying to figure out if my wife and I are kind of living recklessly. We make good money, but we also spend a lot of the money that we have um we followed your plan we paid off a hundred thousand dollars in debt a couple years ago now our only debt is our house but yeah again we just kind of we spend most of what we make why why do you feel like you're why do you you think you're out of control or you wouldn't ask the question?

Well, I mean, we take multiple vacations a year. We go to Europe or Asia pretty much every year or somewhere in the Caribbean. I mean, we still save about 20% of our income. Are you still doing generosity? Yes. Okay. So you're generous, you're investing, and you're enjoying your money. What's out of control?

I don't know. I just maybe feel like we should be saving more. I mean, we make, you know, after taxes, after 401Ks, you know, about $13,000 a month. I'm just, yeah, do we need to be saving more? I don't know. Because you're the saver and she's the spender i bite up too but yeah but of the two you're the saver yes sir and savers never save enough and spenders never can spend enough that's just nature i mean i get it i i you know i can tell you no matter how much we save sharon looks at me and goes are we saving enough because she's the saver and i'm the spender

okay is that is that is that is it just your tendency or do you really have actual data points that say i'm out of control it's probably my tendency I mean, we both have. We max out our 401ks and save into our own investment accounts on top of that. And how old are you? So, I mean, 30. And how much is in your 401ks now? It's about $200,000. And when will your house be paid off? About 10 years.

Okay. So, you'll be a millionaire at 45 to 50? Not too bad. Okay. So you'll be a millionaire at 45 to 50? Not too bad. Okay. Now, do y'all, Reid, you said you saved 20% of your income. What percentage of that goes into retirement investing, and what percentage do you guys have saving just maybe short-term savings? It's kind of just some liquid cash on the side.

Liquid cash, we probably have about $80,000 right now. Including your emergency fund? Yeah. Yes. Okay, and how much do you owe on your home? It's $185,000. Okay. Well, of course, if you're following the baby steps that we teach,

you would have only 15% going into retirement, and you would have only three to six months of expenses in liquid cash, and everything above those two numbers would be going on to the mortgage, so it would be paid off in five years instead of ten okay because you're going to put about half or three quarters of this eighty thousand on there boom now we got 120 000 on our mortgage and we're going to quit putting so dad got much in the 401k another five percent a year which another five or ten grand going on the house, in addition to what you're already paying on the house, yeah, you're done in five years. Now, when the house is paid off and you're 35, it's starting to feel pretty good then. I would think so, yeah.

Yeah, and Reed, and I would say too for you guys at that point, you'll be 35 on baby step seven, and there may be other financial milestones y'all want to hit. Maybe you want to buy a second property in cash, right? Or maybe you want to do something else that may slow down your lifestyle in order to hit these other goals that you want to have. So that may be the case. But for where you guys are right now, I mean, it sounds like you do well. So I think that you need to, I would adjust those two numbers if I were you, because I think it's going to get you to your overall goal faster. And I would institute a, for a little while you don't do it forever but for right now at least once a quarter go somewhere with your wife for three hours and don't do anything except look at the numbers and dream and say okay let's get aligned on what we're doing because i kind of

think y'all put this in on autopilot and it's disturbing you, and it's not bothering her a bit. That sounds right. I think I was just used to, you know, that kind of, like, the ill-intensity of paying it off. Well, and you just worry about the numbers all the time, and that's okay. There's nothing wrong with that, as long as it doesn't start becoming anxiety-inducing. But paying attention is a good thing.

But I think the two of you getting aligned and her hearing that you're concerned about this is a good thing for her to hear. Yeah, and Reed and I would encourage you guys, the house will be the next big goal, but always have a financial goal. Even a baby step seven, have something you're working towards. Like Winston and I, one of our big goals was to build a house, and we moved in in 2019. And there was probably a year i mean 2020 hit with covid and everything but i mean maybe a year year and a half or we didn't have another big goal and you do look up and you think oh gosh like what am i being wasteful yeah it's just kind of that feeling because i think there's a natural health to saying hey there's something

else our money is going towards besides just the 15 and building wealth and all of of that. But there's these other things that we're saving up for. And I just think that's a good rhythm to be in. It's just to kind of always have that thing out there that you're always thinking about and working towards as well. That makes you feel less like floundering. Yeah, and the goal can be a systematic increase in your generosity and go, you know, like, you know, I want to give away X by the time I'm 40. I want to build a wing on the freaking hospital. I don't know.

Whatever it is you want to do, I don't care. But that can be your goal. It doesn't have to be something you're doing for your own net worth. It can just be that. But you got it. You really need to have, if you aim at nothing, you'll hit it every time. That's your point. Yes. Yeah. And you're at nothing you'll hit it every time that's your point yes yeah and you're exactly right well just feels like you don't have anything that you're like you feel you feel listless and shifting yeah and that's a little bit about what reed's feeling he's feeling a little bit uh untethered yeah exactly so if we

get a an alignment and we discuss in high definition what our dreams are. We align our high definition dreams in our marriage. And then we go, okay, I heard you, but I think we're okay. Okay, now that you heard me, I think I'm okay. You know, that kind of thing. And just get aligned on that and say, this is what we're doing. Then you can make decisions like that. That's a cool thing. This is The Ramsey Show.

Thanks for joining us, America. I'mave ramsey your host rachel cruz ramsey personality number one best-selling author my daughter is my co-host today michael is with us michael is in davenport iowa hey michael welcome to the ramsey show hey how you doing better than i deserve man what's up good to hear all right so this basically is just a question on my wife's spending habits and my saving habits. I'm a hog farmer out here. And right now, I currently own three hog farms and I own one house. It's all paid for. I have zero debt to my name, 31 years old. And the big question is my wife, she wants to buy another house. The problem with the house that we have now, which I don't have a problem with it. I grew

up in it. It's too close to our hog sheds. So the smell is a big problem. Well, so we rent a home in town. That's about five miles from the farm to kind of just to please her to get the smell she doesn't she doesn't like smell well the house that we rent the landlord passed away about two months ago and he left in his will that we you know have rights to buy the house from his daughter well his daughter doesn't want to rent. She wants to sell the house to us. I have saved up a lot of money and I do not want to buy a house. I would rather buy a hog shed. Now, I don't own the hogs. The company owns the hogs. They rent the buildings off of me and I take care of the pigs. I have saved up $431,000 right now is what I have, and I would rather go another two years and buy another hog shed to put on the farm. And the hog sheds do two things. The company pays the bill, pays the rent on the first of every month, they're never a day late, which is good, that's why I don't rent to people.

Michael, how long have you been married? Four years. Okay. There's a buddy of mine that's a comedian and has a wonderful saying. Happy wife, happy life. So far, we're there. No, you're not. No, you're not.

You're a hog farmer that's gone hog wild. All you think about is hogs. And I love that. I think you're a business guy, and you're great at what you do, and you got it dialed in, and it don't bother you a lick. Your wife ain't going to stay there, brother. She done told you that. You need to listen to her.

I need to be looking at buying this house you need to write a check so this in the house is only 45 000 it's a wonderful shut up it's only 45 000 you can make her happy for 45 000 and you're buying a 400 000 hog shed? Michael. Well, listen to this. This woman doesn't ask for much. And absolutely, and to be honest with you, she's the one that shows up when the help doesn't. Yeah, well, I mean, she did marry you. Yeah, and knowing that she was going to live next to a hog shed. So, I mean, you must be a prize. You'll have kids, Michael.

She's coming in there. She's awesome, man. Look at you wow dude i do buy the house i do have uh i have twins that is three and our oldest daughter is six oh yeah is she home with them all day? Yes. Yeah. Yeah. She works part-time. You're a great farmer and a great businessman. You know your numbers inside and out. You take care of all the details. I can hear it. I've worked with entrepreneurs for 30 years.

I can hear everything about your business acumen. I think you're very, very good at what you do. You suck at taking care of your wife. You need to buy her a house. You need to buy her a house. I know. And Michael, I'll say this. I feel like you're getting beat up on this call. There was a lot of I's. I saved up this and I did this and I did this and I did that. And you guys are a team. And part of a team is there's an A and a B. It's not just an A. And bring her in. She has as much weight and as much value to the conversation

and how she wants to live her life as much as you. I'm poking fun at you, but I'm having fun with you. But in all truth, she's not asking for much. And you can easily provide what she's asking for. She's not asking to buy a $4 million house. Correct, correct. She's not asking you to sell off your hog farm. Correct.

And she's not even asking you to slow down, because the $45,000 is not even going to slow down. You're not going to build that shed within $45,000 estimate anyway, probably. No, a new shed now is, the dirt work and everything is about $930,000. Yeah. So we've got a little while to go anyway. So buying this house is not going to throw your goals off is my point. You're on your business goals. And what I have figured out in doing this marriage thing for 43 years

and doing this business thing here at Ramsey for 35 of those is that the best thing I can do is have no drama at home because I got enough of it at work. Gotcha. And it makes me more valuable when I'm at work. Yes, yes and amen. I know. I'm convinced one of the reasons that Ramsey is successful as it is

is that your mother is no drama. Yeah. And doesn't ask for much. And neither does Michael's wife. She doesn't ask for much. Right. And she would feel valued in what she brings to the table too. Yeah, I take her input.

And there's that extension to say, yes, listen to her, Michael, and what she wants. We were looking at an investment thing uh a week ago and walk through it all and and she's like i don't care and i said i know you don't care but we're gonna walk through it because i want to see if your eyes roll i want to see i want to see what you really you really do care but you're not going to say it so i want to see we'll see if you shift in your seat i want to watch your body language while you're looking at this because i'm going to you know and because i can tell what she's thinking then sure we've been married long enough so that then there's

about who can find a virtuous wife for her worth is far above rubies the heart of her husband safely trusts her and he will have no lack of gain proverbs 31 31. It is a financial principle. If you'd like to have no lack of gain, listen to a virtuous wife. Not a Cinderella, not a princess, but a virtuous wife. And everybody, as you said, has a vote. And then we make good decisions together. That's right. And everyone from California should move to Iowa and buy a $45,000 house. That's unbelievable. That's so fun. Go. Go, Michael. Enjoy it. You guys will make it a home. It's going to be great. I'm excited for you guys. I love it. That's fabulous. Good for you. Good for you. And what a great business guy. He really is. Wonderful. And you're 31. You're going to do great. Olivia is in San Diego.

Hi, Olivia. How are you? Hi, Mr. Ramsey. I'm good. Thank you. How are you? Better than we deserve. What's up?

I am just calling. So we are on Baby Step 3. We just got out of debt. We are in Southern California. And just to condense my question, I'm essentially wondering, should we move someplace less expensive but leave our family, leave our church, leave everything? You know, we have two kids in order to build wealth. What do you guys make? So my husband made $70,000 last year.

I work on his days off. I'm an independent agent, so I so my taxes are like 13%. He pays what I have. What do you make? I made $30,000 last year. Okay, so you have $100,000 income in San Diego. Okay. Where are you guys living now? So we're in Carlsbad, California. But we're looking to go to Arizona. Okay.

But we just... The way you asked the question, the way you formed your sentence, you don't want to leave. No. Okay. Because you made it sound like we're only doing this for money. The only reason we're going to Arizona is for money. Yes, that's the only reason. But right now, I am working so hard to try to keep my daughter in private school, Christian school.

Yeah, you don't have a sustainable situation where you are, right? No. But we have support. I'm sorry, I wasn't thinking I was going to cry. That's okay. We have help right now with our family. Yeah. Well, it's heartbreaking to move away from the grandparents, but you're either going to change careers to be able to sustain the situation,

or you're going to make some different choices like not private school to sustain the situation. Something's got to give. What you figured out is the math isn't working and that's very wise now what's going to give private school career change or a move really one of these three things and all three of them are painful choose your pain because it'll choose you if you don't rachel cruz ramsey personality is my co-host today in the lobby of Ramsey Solutions. You can stop by and hang out with us anytime you want if you're in the Nashville area. We do this show on the glass, and so you can watch it happen. And that's from 1 to 4 Central Time.

The cookies are homemade and they're free. The coffee's free. And, hey, we love having you we come around stop we come out the commercial break get books signed and take pictures all kinds of things also in that lobby is what we call the dead free stage and christy and steve are on it which can only mean one thing hey guys how are you doing great dave how are you better than we deserve where do y'all live wilder kent, right outside of Cincinnati. Oh, yeah.

Just across the line. Okay. Well, welcome to Nashville. And how much debt have you guys paid off? $351,840. Wow. And how long did this take? Nine years and eight months.

Nice. Nine years and eight months. Good for you. And your range of income during that decade? We started at $36,000. And we are now at $287,000. Well, there's a nice move. Okay.

And so what do you guys do for a living? I'm a sales manager. And I'm a chiropractor. And I own my own business. Okay. So you got the business, you got the practice working and the sales management's working and you're kicking it. Yep.

Way to go, you two. So I'm guessing with this length of time and this amount that in northern Kentucky, southern Ohio, you might have paid off your house. No. No. Oh, wait a minute. I left out the chiropractor part. It's your fault. Okay.

Yes, sir. Yeah, the chiropractor debt of 200 was of this right yeah we had a small i had a car we had about 7 000 left on that and about 1500 in credit card debt but we paid it off every you know at the time we were paying off every month so we paid that off and the rest was student loans yeah over 300 000 yeah well that's where it ended up after all that time and interest sure sure sure yeah yeah but yeah there was there was uh undergrad in there quite a bit of interest there and then yeah chiropractic school yeah and his master's so oh yeah and my master's degree so the nine years and eight months i'm guessing that that's when you came out of

school pretty much and just started the practice and you guys were just newly married and get things going, I'm betting. Okay. But I'm also guessing that at some point in those nine years, the intensity suddenly turned on. Was it from day one? Pretty much. So we had just bought a house. He had just started his practice and we had no money. And I was working part time and also helping him in his office and we realized we had no money. And I was working part-time and also helping him in his office.

And we realized we had an income problem. And so my cousin told me about Dave Ramsey. And I checked the book out. He checked it out. We made a budget. And we wanted to start a family, but we had no money. So we put every dollar we had together and got started. And I got a full-time job and just went up from there.

Yeah. And every time the practice went we threw it at the debt every time they got a sales commission threw it at the debt every dollar i changed careers actually through covet i was laid off and then um stayed home with the kids for a little bit and then yep so you had so you had two during the time how old are they now uh they are seven and six seven and six okay around the middle of all this for all the young families listening you guys started it before kids during kids you know you're raising little ones during it all like what what would be the hardest thing would you say about the journey

well with the kids we it wasn't uh a really easy um process so they were both born um both of them required uh emergency procedures um the older one needed surgery three weeks after he was born oh my gosh and then medical stuff on top of this oh yeah oh yeah the second one was um it was very emotional um christy, abrupted, which means she started bleeding the placenta, pulls away. Yeah. Um, and he had to be, um, delivered at 34 weeks, spent three weeks in the NICU, came home for two weeks, then got a RSV and almost died again. Luckily he knew CPR, honestly. Wow.

Oh y'all, you've been through it all. Yeah. So we had our deductible three years in a row of $6,000 in there as well. So there was another 18 grand right in there. And I had two under two and my 90-year-old grandma lived with us for three years. We were taking care of her at that time up until COVID happened. Okay. Yeah, we were.

So y'all have had a whole journey through this nine years. It was a bit. A decade of life. Yeah. But we're so excited to be here now. Yeah.'s paying off debt would you say it's like oh yeah that was like oh we'll throw that in too right like i mean it almost becomes that like yeah after experiencing this with like with your kids absolutely we can do this if we can do that we can do this yeah yeah it was it's it's been a heck of a journey and it's been great with these kids and we're so happy to share it with them.

Sure. So great. Now that the dad is 100% gone, how's that feel? Amazing. The light at the end of the tunnel felt so far away for so long and so it's really exciting. It was. It was. Yeah. really exciting it was it was yeah we're renovating our house now and um all cash flowing that and um

excited to be able to do things with our kids and change our family tree and we're so excited yeah i mean nine freaking years yep from 37 000 to 287 i mean that's a quarter of a million dollar swing and two babies oh yeah yeah and some nicu some NICU thrown in. Yeah. Oh my goodness. Yeah. Wow. Wow. Amazing. Amazing. What do you tell people the key to getting out of debt is? Cause you stuck with it. I mean, you persevered. Oh yeah. The, I think the biggest key was the budget. Um, even at, you know, our $36,000 initial starting salary, we were finding, you know, $500 a month and putting that towards our debt and started that, that ball moving. And, you know, we were avid listeners of the podcast, you know, even when we couldn't see the light at the end of the tunnel, that podcast, you know, we heard

other people doing it and it really helped us out a lot, um, to, to hear about those, you know, those stories and how people are, are, are making it and it can be done. Yeah. Yeah. When we were about halfway down, we drove by and did a family selfie in front of Ramsey Solutions out here. So little things like that was like, all right, come on, let's keep going. We can do this. We can do this. Yeah.

Well, I'm so glad that you took inspiration from all these other debt-free screams and now you get to be one. Exactly. That's pretty cool because there's somebody out there with a baby in a NICU that doesn't know if they're going to make it and you're just telling them they can by your presence oh yeah oh yeah just keep going yeah well done well congratulations you guys thank you so much proud of y'all thank you thank you who was cheering you on saying go go go go go honestly we were we were very private about it um we kept it you know pretty close to the chest and until now our family

our family knew but uh pretty much pretty much kept it close to the chest so we didn't have a whole lot of uh cheerleaders i guess that really or naysayers for that matter because it was just none of your business everyone knew what we were doing but yeah so good for y'all way to go very cool congratulations so proud of y'all what's the first big thing you do now get the house paid off i guess but other than that yeah get this house renovated and uh we're gonna you know start traveling i really want to um share the world with our with our boys um it's something that i wasn't able to do as a kid we didn't grow up with a lot of money my family had a hard time with

money all as i was growing up so i'd really like to let them experience the world amen that's a great legacy good for you well done all right what's the young men's ages and uh let's introduce them their names and ages bring them up this is this is ashby and this is austin ashby is seven and austin is six all right have they been practicing their debt-free scream oh yeah we almost got kicked out of the hotel this morning oh wow okay that's good well the hotel needs to know about this it's good yeah it's very good hey we've got the baby steps millionaires book for you total money makeover book and the financial peace membership that's the live and give box for you as our gift for saying thanks for coming down.

We're so proud of y'all. Way to go. Thank you. All right. Christy and Steve Ashby and Austin from Kentucky, just south of Ohio. They're 352,000 paid off in nine years and eight months, making 36 to 287. Impressive. Count it down.

Let's hear a debt free scream. all right ready boys here we go three two one wow wow they are amazing they're they're. That is very cool. Good for you guys. You're inspiring. It's a lot of life in there in that decade. Stay with it.

A decade. Wow, that's impressive. And now I'm going to show my sons the world. I love it. Just like that. This is The Ramsey show Rachel Cruz Ramsey personality is my co-host today Danny is in Miami hi Danny welcome to the Ramsey show thank you so much for having me very excited well good to talk to you sir how can we help cause I, I'm not really good at talking about,

you know, finances and stuff like that. But the main point of, uh, the reason for my call is because me and my fiance who were getting married in July in Montana, but, uh, she inherited a house from her grandparents after they passed away. And we're right now, it's been a rental property for a couple of decades, right? Where somebody in the front of the house has been renting and then somebody in the efficiency in the back has been renting out, right? It brings in, well, right now we're, we're renovating it, the back end of it, but we know that once we get it fixed up, total should bring about maybe $4,000 a month in rental. Her perspective is that she wants to move in into that house.

The house is paid off. Where is the house? It's in Miami and Coral Gables. Oh, okay. But you're getting married in Montana. That's what threw me. Okay. Yeah, yeah.

Okay. So she wants to move into the house, which is paid off, right, just to maintain it would be about $1,500 a month, aside from the $4,000 if we kept it rented. My standpoint, or at least my perspective, is that if there is a scenario where we can, and I know you're all about, you know, cash, cash, cash, right? If finding a home using the benefit of my first home buyers, right? To, uh, find a new house and then use the rental property monthly money to put, uh, to pay off its mortgage of a new house. Cause I, my, my perspective is I really want to maintain a rental property instead of just moving into the

house. It's paid off. Okay. How old are you, Danny? I'm i'm 28 good for you and she's 27 good for you well i i share your love of real estate investing i believe in real estate investing i own a whole bunch of real estate i love it and not everybody should own real estate you have to deal with these things called tenants and so sometimes you shouldn't own real estate. But it's not a problem for me. I do conflict well, so I can handle it. And so I'm with you on owning investment real estate. Rachel's husband does real estate for a living, runs our family real estate, and has his own company as well. And so, you know, we both of us love real estate and so we're we share that with

you we do also know that the shortest distance between where you are and wealth is to become and stay debt-free house and everything that's why we're cash cash cash cash cash all the time because it's the best thing for you. It doesn't affect me if you go buy a house on debt. It affects you. So it doesn't – once we get off the call, my life's going on, and you're going to be dealing with the debt, not me. So – but I love you, and I want you to win.

I want you to go out there and be big-time wealthy, and the shortest distance is not borrowing money on a residence and keeping a paid for inherited rental so if you're going to follow that advice then you've got two choices actually one is do what your fiancee thinks is okay move into one of the properties or move into one side rent the other it's paid for you have zero debt and you're a young married couple with no debt. That's a very nice place to be and a very unusually wonderful place to be. You have your entire freaking income to invest and pile up some money

and buy your first rental otherwise with cash. And that's what I did after I went broke years ago in the real estate business by borrowing too much money. So that's one option. The other option is probably emotionally painful, but also mathematically is just as valid, and that's sell the inherited property, use that cash, and buy your first home for cash.

Now, I don't think that's going to be real appealing to your fiancé. Yeah. Because this was her granny's place, and it's been in the family, even though it's been a rental for years. She's got some emotional attachment to it. So suggesting that might not be a winner for you. Probably not. Yeah.

It's a good house. I mean, it's in an area that's very, her grandparents bought the house for, I believe, like $100,000. It was years ago and now it's about worth $750,000 and for $750,000 you can buy a pretty decent home in that area if you pay cash for it and sell that house and pay cash

mathematically that's fine but she just got this you're just getting married there's a lot of just starting things here so I would not do your suggestion and i would not do her suggestion long term but i would do it initially and i way i would set it up with her is say listen i don't think long term we want to live in this house next to renters but but i also and that's why yeah even though

it's granny's house and even though it's inherited and all that but there's nothing that there's nothing uh nostalgic about a piece of real estate in most cases so what i would say we do is we live in this house for a year or two years and then we sell it and use the money to buy a house but for right now we're newly married and this inheritance is fresh for you and i want to be sensitive to that so let's give it a little time but i don't think we want to 10 years from now be living in this house and i think she'll agree to that because she probably doesn't either she's just looking at oh i can live here for nothing and i just got this so you know i i would suggest you spend a year to two years in that house

as a marriage investment. Yeah, yeah. And then sell it and move up. But no, I would not borrow money to buy another house with your first-time homebuyer. Not while you've got a place to live for free. Your fiancé has a point. But also probably, unless it's her idea, would not sell it today. I don't mind.

The only thing that bothers me about selling it today is the emotions of it. I think selling it today would be a fine idea. Nothing wrong with it at all. Yeah, but she probably wouldn't go for it. Yeah. Probably going to feel weird to her. And the family might go, oh, well, she married that guy, and the first thing he did was sell off the house.

Well, that's because he's got sense. But, you know, yeah, it's a good thing to sell it off, actually. I'd be rid of it and go buy a house. But I don't know that that's going to work relationally in a brand-new marriage situation that hadn't even occurred yet. So it doesn't occur until July. But I'm trying to think about all the angles on this. But, Danny, yeah, you're thinking like most people think

that get in trouble with real estate, and that is that the tenants are going to pay the bill. Tenants sometimes pay the rent. Sometimes there's tenants, and when there's tenants, sometimes they pay the rent. There's a lot of sometimes in there and those other times you pay the freaking payment and so that's how that works well and there's no payment on this one if there's no pain but i'm saying using it if you're using it

to cover your other house then yeah you get to pay your house payment dude yeah so you know this this you can tell a brand new landlord when they think they're always going to get their rent. That's a brand-new landlord. That's somebody who's never done it because you don't. Hello. And there's all kinds of stuff happens. I mean, sometimes it's sad things. Winston was managing one of our properties, and we gave these people four months free rent because the guy was diagnosed with a terminal cancer he

was going to die in four months last thing i'm going to do is evict this woman in the middle of her losing her husband and but i can afford to be that generous if i want to be because i don't have any payments right right but and that that was just a sad thing and then she needed to move and on anyway after he passed away so you know it wasn't a long-term situation but you can afford to do that but for people like danny you don't always get your rent that's yes yes but for people like danny because the real estate game it's always been there but i feel like it continues just to bubble up social media has made it popular to be stupid again well it has risen of like hey here's another way to invest your money and how to grow wealth and how to become wealthy. Leverage.

Yeah, that's how most people, if they get into the game, that's where they have to start out, right, is leverage. So how do you encourage people to say, okay, this is how you start? It is cash, but is there a formula where it's like, okay, you pay off your primary home or in Dana's case. Pay off everything. Become 100% debt free on your personal residence and then save up with no payments of any kind. You can save up money real fast. And you'll probably get a condo. You'll start small, your first property.

Yeah, buy your first little thing. And as you build it up. But I think some people, it feels defeating. I'll never be able to get into the real estate game with the cash situation. I was on a guy a podcast this morning. We were recording it, one of these big YouTube guys, and wonderful guy, and he was quoting Charlie Munger. He said, you know, one of the things that hold,

Charlie Munger says three things hold people back, liquor, ladies, and leverage. Oh, my gosh. That'll set you back. This is The Ramsey Show. We'll see you next time.