"You're Scared To Death Over Nothing"

Summary

Summary of "You're Scared To Death Over Nothing" The Ramsey Show Highlights | Release Date: March 16, 2025

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1. Introduction to Landon's Concern

In this episode of The Ramsey Show Highlights, Landon, a 27-year-old in Baby Step Seven, reaches out with a financial dilemma that intertwines his emotional well-being with his monetary decisions.

• Landon's Situation: Landon is struggling with the substantial portion of his net worth tied up in his house and a recently purchased Mercedes S Class. Despite being in a stable financial position, he feels uneasy about investing $35,000 in a depreciating asset.

  "I feel like I just spent way too much money on something that goes down in value."
  — Landon [00:02]

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2. Evaluating Net Worth and Asset Allocation

Dave Ramsey and Ken Coleman delve into Landon's financial metrics to contextualize his concerns.

• House and Car Investments: Landon's net worth stands at approximately $750,000, with $550,000 invested in his house. Including the Mercedes, his total investment in vehicles is around $45,000, which constitutes a relatively small segment of his overall assets.

  "Over time, compound growth with your investments will catch up. By the time you retire, your house will probably be a third of your net worth."
  — Dave Ramsey [02:00]

• Income Reflection: With a household income averaging $250,000 over the past two years, Landon's investment in his house and car aligns with recommended financial ratios.

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3. Emotional vs. Intellectual Spending

Landon grapples with the emotional discomfort of investing in a luxury vehicle versus the logical understanding of asset depreciation.

• Emotional Conflict: Despite recognizing the Mercedes S Class as a depreciating asset, Landon is tormented by the thought of diverting funds from potentially appreciating investments like mutual funds or retirement accounts.

  "Emotionally, it just doesn't feel right to write a check when I could for something that could go down."
  — Landon [01:20]

• Ken's Insight: Ken challenges Landon's emotional stance by probing his ability to differentiate between emotional impulses and rational decisions.

  "Have you ever acted out of emotion before and realized that your emotion was wrong?"
  — Ken Coleman [01:37]

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4. Balancing Financial Goals with Enjoyment

The hosts emphasize the importance of balancing saving, spending, and giving to achieve financial well-being without sacrificing life's pleasures.

• Three Pillars of Money Management: Dave outlines that money can be used for giving, saving, and spending. Overemphasis on any single pillar can lead to financial or personal dissatisfaction.

  "If you just save it, you're going to drive yourself crazy. If you just spend it, you're going to end up broke."
  — Dave Ramsey [03:17]

• Flexing the Spending Muscle: Landon acknowledges the struggle of transitioning from aggressive saving to allowing himself to enjoy the fruits of his labor.

  "This is something I struggled with. When I wrote a check for my wife's last car, it hurt my soul."
  — Dave Ramsey [03:51]

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5. Overcoming Shame and Emotional Barriers

The conversation shifts to addressing deeper emotional issues, such as shame, that influence financial decisions.

• Shame vs. Fear: Ken posits that Landon's reluctance stems more from shame than fear, urging him to confront these feelings to make healthier financial choices.

  "I think there's a deep-rooted shame in this that... he’s got shame over this and I think you’ve got to confront that."
  — Ken Coleman [05:26]

• Behavioral Influence: Dave explores how Landon's upbringing and financial behaviors shaped his current mindset, highlighting the importance of understanding one's financial psychology.

  "Behavior is a language. How did the way they handled money influence you?"
  — Dave Ramsey [05:42]

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6. Practical Advice and Reassurances

Dave and Ken provide practical guidance to alleviate Landon's concerns, reinforcing that his financial choices are within healthy parameters.

• Reiterating Ratios: Dave reassures Landon that his investment in the Mercedes does not disproportionately affect his net worth, especially given his high income and young age.

  "If all the things with wheels, motors in your life add up to more than half of your annual income, you're off track. That's simply too much."
  — Dave Ramsey [07:36]

• Encouraging Enjoyment: Emphasizing the importance of enjoying life, Dave advises Landon to strike a balance between financial prudence and personal satisfaction.

  "You have to let go. You got to let go."
  — Dave Ramsey [08:16]

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7. Conclusion and Takeaways

The episode wraps up with affirmations of Landon's financial health and the importance of not letting perfectionism hinder life's pleasures.

• Validation of Choices: Both Dave and Ken validate Landon's financial choices, highlighting that his concerns are common and manageable.

  "It's okay to have nice stuff as long as you understand that it's a toy that goes down in value."
  — Dave Ramsey [04:52]

• Empowerment to Move Forward: Landon is encouraged to embrace his achievements without guilt, understanding that financial success includes both saving and spending wisely.

  "You worked really hard to get to a point where you can buy a $35,000 bin."
  — Ken Coleman [06:41]

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Notable Quotes with Timestamps

• "I feel like I just spent way too much money on something that goes down in value."
  — Landon [00:02]

• "If you just save it, you're going to drive yourself crazy. If you just spend it, you're going to end up broke."
  — Dave Ramsey [03:17]

• "I think there's a deep-rooted shame in this that... he’s got shame over this and I think you’ve got to confront that."
  — Ken Coleman [05:26]

• "You have to let go. You got to let go."
  — Dave Ramsey [08:16]

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Final Thoughts

"You're Scared To Death Over Nothing" offers a profound exploration of the emotional aspects of financial decision-making. Landon's journey underscores the delicate balance between prudent saving and the necessity of enjoying life's rewards. Through empathetic dialogue, Dave Ramsey and Ken Coleman provide actionable insights, encouraging listeners to embrace both financial discipline and personal fulfillment.

Transcript

[Landon]

Brought to you by chm, a biblically based alternative to health insurance. Learn [e-mail] budget so this is probably a really stupid question, but I'm a tight wad, so I gotta ask it anyways. Okay, so I'm in baby step seven, my wife and I, and we're 27. And really the problem with my question is I feel like I just have too much, my net worth wrapped up in my house. But I just recently bought a Mercedes S Class maybe a day or two ago. And just emotionally to me feels like I spent way too much money on something that goes down in value. And it just eats me up thinking about what I could put that money in that would go up in value. And so my question is just, should I take this stupid car back?

[Dave]

Well, let's talk about what you spent on it.

[Landon]

So after taxes and fees and all that junk, it was about 35 grand.

[Dave]

All right. And what's your household income?

[Landon]

Last two years I've averaged about 250.

[Dave]

Well, there's some ratios for you that puts it in perspective. How much do you have tied up in everything with wheels and motors in your, in your house right now?

[Landon]

Probably about 45 grand. Counting the Mercedes.

[Ken]

Yeah.

[Dave]

Okay.

[Ken]

You're driving an older car.

[Dave]

For the other car, Dave would have said you should have bought a nicer car. You're not doing anything.

[Landon]

Both of my cars outside of the Mercedes are probably worth ten grand total. I understand, like ratio wise it sounds okay, but emotionally it just doesn't. It doesn't feel right to write a check when I could for something that could go down, something that goes down in value when I could put that in, you know, something like some mutual funds, retirement, whatever.

[Ken]

All right, let me ask you a quick question, Landon. And you seem like a very even keeled, level headed person, so this may be difficult for you to answer, but have you ever acted out of emotion before and realized that your emotion was wrong?

[Landon]

Sure.

[Ken]

All right, so your emotion is wrong on this Mercedes. Well, your emotions wrong.

[Landon]

I mean, intellectually I get that. Like, I do get that, but.

[Ken]

Oh, wait a second.

[Dave]

Wait, wait, wait, wait, wait.

[Ken]

You started off and said it was all emotional, and I just destroyed the emotional argument on your behalf, by the way. And now you want to go intellectual?

[Landon]

Well, what I mean is like my neck. So basically, all in, all in a worth about 750 and about 550 of that is in my house.

[Dave]

Okay.

[Landon]

So it just feels like cash. Cash, cash wise, I feel like 35 grand is rich out of the cash that I have available is what I mean.

[Ken]

It's not.

[Dave]

Landon, there are people who have a negative net worth who bought more expensive cars than you today. And so just know that in the grand scheme of life, it's going to be okay. And here's the deal. When you're young, naturally, more of your house is going to make up your net worth. It might be 50, 60, 70, 80% when you're young, but over time, compound growth with your investments will catch up. And so by the time you retire, your house will probably be a third of your net worth. And you're right, that car will be in an impound somewhere 30 years from now. And that's okay. Stuff is stuff.

[Landon]

You wouldn't, you wouldn't say, go buy $10,000?

[Dave]

No.

[Landon]

On, you know, Toyota Camry or something.

[Dave]

You're in your live like no one else era. You said you have a paid for house, right? You're in baby step seven.

[Landon]

Yeah.

[Dave]

Then what's the point of money?

[Ken]

You're scared to death over nothing.

[Dave]

There's three things you can do with money, Landon. You can give it, save it, spend it. And if you just save it, you're going to drive yourself crazy. If you just spend it, you're going to end up broke. And if you just give it, you'll be a great philanthropist but unable to retire. And so it's wise to do all three. And what you're experiencing is something I experience as well, which is needing to flex this muscle of spending after you've been so aggressive toward a financial goal of paying off the house or investing. And so this is something I struggled with. When I wrote. When I stroke a check for my wife's last car we bought her, it hurt my soul. I've never spent that much money on anything outside of a house.

[Ken]

I remember that.

[Dave]

And Ken remembers. I was talking to him about it. But over time, you. You'll look back 10 years from now and go, remember when I was stressed out about buying a $35,000 car? I'm sure Dave Ramsey had the same experience.

[Ken]

Yeah.

[Dave]

Now Dave. Dave's cars are worth more than my house. And so it's okay to have nice stuff as long as you understand that it's a toy that goes down in value. It doesn't make or break you. Money just magnifies who you are. And it sounds like you are right on track.

[Ken]

What year, what year is that? Mercedes. And how many miles?

[Landon]

20, 18. It's about 80, 85,000.

[Ken]

Yeah, it's totally fine. I I drive a used Mercedes as well. If you take good care of it, it'll last forever. It's a little bit more expensive to keep up. Yes, but you've got it. I mean, listen, you've been shooting all over yourself and you need to stop.

[Dave]

Keyword should. Just for those listening who weren't sure what Ken just said.

[Ken]

I know exactly what I said. And we all tend to should either should. But I'm using it very purposefully. My therapist helps me. This.

[Dave]

It's called a double entendre.

[Ken]

Stop shoulding on yourself. I should have done this and I should have done that. That's the idea. And, and so you could sit there and play that game and talk yourself into another five thousand dollar car. Sounds like you got two five thousand dollar cars or somewhere in that range. So you do whatever you want to do. You can take the car back and if that allows you to sleep better. But I think you're not addressing what's really going on. And what's going on, George? This is more your lane than mine, although I understand it. I just think there's a deep rooted shame in this that I'm not.

[Dave]

I'm not allowed to have this night, something this nice.

[Ken]

That's what I don't. I don't think it's fear. I think it's shame. I think he's got shame over this and I think you got to confront that.

[Dave]

Did you grow up with money, Landon?

[Landon]

Yeah, maybe. My parents had some money for sure.

[Dave]

So what was the what?

[Ken]

What?

[Dave]

You know, we say behavior is a language. What. How did the way they handled money influence you?

[Landon]

Well, I'll tell you what. Honestly, what I think it is is honestly that I just been so aggressive since I was 18. Because I mean, you know, just doing this since I was 18 and you know, doing this about marriage that it almost feels like, you know, I need to stay aggressive. You know what I mean? And so, you know, we just fought and clawed so hard to pay our house off and the whole deal.

[Ken]

Yeah.

[Dave]

What does your spouse think about.

[Landon]

Oh, she. Legitimately. We went up to the dealership and she said, buy whatever you want. I'm tired. And went home.

[Ken]

Good for her.

[Dave]

Good woman right there.

[Ken]

Good woman. By the way, let me. Let me just ask you this. How long you been familiar with Dave and his teachings and what we do here?

[Landon]

Since I was probably 12.

[Ken]

All right, I want you to finish a sentence for me. Okay. You ready?

[Landon]

Sure, sure.

[Ken]

Live like no one else so that later you can live like no one else. All right.

[Dave]

Then now swap that with Drive. Drive like no one else. Drive the crappy car so later you can drive, like, really hard.

[Ken]

You worked really hard to get to a point where you can buy a $35,000 bins. And by the way, your wife has worked really hard, too. And she deserves to go on date night with you in a car that you don't have to pedal like Fred Flintstone. Hey, there he is. Did you hear that laugh? That's the first time on this entire call I felt like we got the real you who wasn't so uptight.

[Landon]

Well, what's so funny about that is that's not far off from what I'm driving outside of the bins.

[Ken]

I know, I know.

[Dave]

I don't get rid of that car.

[Ken]

This guy, he thinks, do I. Do I come across really dumb? Because when you got two cars worth $10,000. Those are Fred Flintstone cars. I didn't have to do a lot of deduction, my man. And so she deserves better. She deserves better. You. If you want to drive a piece of. If you want to drive a turd on wheels, then that's up to you. But she doesn't deserve that.

[Dave]

Can we agree?

[Ken]

It's Valentine's Day, for heaven's sakes.

[Landon]

I agree.

[Ken]

All right, then relax. You worked really hard. It is impossible for me, George, to conceive of a scenario where Landon does something dumb with money.

[Dave]

Yeah, you're. I mean, you are spot on our parameters. Here it is. If all the things with wheels, motors in your life adds up to more than half of your annual income, you're off track. That's simply too much. You are not even close to that. And again, like ratios, Dave, Buying a nice car is like me buying a biscuit. And so you have to understand, the ratios look different. When you have a very high income, your net worth's going to continually grow. You're 27. You got another 30, 40 years of working for you and investing to build wealth. And so in the meantime, you have to do something called enjoying life. And I'm scared because you're kind of like me. I'm wired to go. But if we didn't eat this month, we could invest that in a good growth stock mutual fund. It can make 12% over. You can't live your life like that. You got to let go.

[Landon]

CHM isn't health insurance. It's a health cost sharing ministry. Check it out for [e-mail] budget.