Your Future Self Deserves Better Choices Today

Summary

Podcast Summary: The Ramsey Show – "Your Future Self Deserves Better Choices Today"

Introduction

In the December 20, 2024 episode of The Ramsey Show, host George Camel and financial expert Dr. John Deloney delve into a variety of listeners' financial and personal challenges, offering practical advice aligned with the Ramsey Network's mission to help individuals build wealth, foster meaningful relationships, and overcome financial setbacks. The episode, titled "Your Future Self Deserves Better Choices Today," emphasizes the importance of making informed decisions today to secure a prosperous and stable future.

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Caller 1: Jessica from Seattle – Managing Bipolar Disorder and Financial Recovery

Timestamp: 00:16 – 08:54

Issue:
Jessica, a 24-year-old diagnosed with Bipolar I Disorder at 19, shares her struggles after a recent manic episode led to accruing $20,000 in debt and depleting her savings. Having quit her job during the episode, she now feels lost and scared about her financial and personal future.

Discussion & Insights:
Dr. John Deloney commends Jessica's resilience, highlighting her consistent efforts in therapy and medication management despite her challenges. He emphasizes the importance of self-awareness and the critical choice Jessica faces in either succumbing to self-blame or actively taking steps to regain control.

Key Advice:

• Accountability Partners: Jessica is advised to involve trusted individuals who can assist in managing her finances, such as controlling her ATM and online accounts to prevent overspending during manic episodes.
• Debt Management: With an annual income of $104,000 and a substantial effort to repay debt, Dr. Deloney suggests focusing on paying off high-interest debts first while maintaining an emergency fund.
• Financial Tools: The hosts recommend tools like Financial Peace University and the EveryDollar app for budgeting and accountability.

Notable Quotes:

• Dr. John Deloney: “You can’t give up on you because your track record is pretty dang good.” (02:19)
• George Camel: “Freeze your credit, cut up the credit cards, and put some restrictions to make it harder to spend.” (06:44)

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Caller 2: Alice from Sacramento – Profiting from Long-Term Tesla Investment vs. Mortgage Payoff

Timestamp: 14:34 – 21:21

Issue:
Alice invested $1,000 in Tesla stock in 2011, which has skyrocketed to approximately $380,000. She and her husband, who have a combined household income of $175,000, are debating whether to liquidate this investment to pay off their $288,000 mortgage or maintain their stocks for potential further gains.

Discussion & Insights:
George Camel advocates for consulting a tax professional to understand the implications of selling a significant investment, particularly concerning capital gains taxes. He suggests a phased approach to selling the stock to mitigate tax burdens while reducing mortgage debt.

Key Advice:

• Tax Implications: Carefully assess the tax consequences of selling substantial stock holdings.
• Diversification: Encouraging diversification to mitigate risk associated with holding a large position in a single stock.
• Strategic Debt Payoff: Balance between investing for growth and reducing liabilities to enhance financial security.

Notable Quotes:

• George Camel: “Sell and pay off the house today... talk to a tax pro to see if there’s a better strategy.” (16:10)
• Dr. John Deloney: “Don’t give him a bunch of money as a way to buy back his goodwill. That’s going to backfire.” (25:30)

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Caller 3: Zach from Tulsa – Saving for a First Home While Paying Debt

Timestamp: 26:08 – 30:12

Issue:
Zach and his wife are approaching the end of their student loan payments and are debt-free except for their mortgage. They seek advice on whether to invest extra income or dedicate it to saving for a home down payment.

Discussion & Insights:
George Camel recommends following the Ramsey Baby Steps by prioritizing mortgage payoff while maintaining consistent investments. He cautions against over-investing at the expense of homeownership goals, advising allocation of extra funds towards a down payment.

Key Advice:

• Balanced Approach: Continue investing 15% of income while allocating additional funds to save for a home down payment.
• Avoid Overextending: Emphasizes the importance of not compromising homeownership aspirations by overcommitting to investments prematurely.

Notable Quotes:

• George Camel: “Do one thing in front of the other. That’s the way to do it.” (28:33)
• Dr. John Deloney: “There’s something beautiful about just relinquishing and following a proven plan.” (29:01)

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Caller 4: David from Colorado Springs – Investing Extra Income vs. Mortgage Payment

Timestamp: 32:33 – 35:26

Issue:
David, close to retirement in his 60s and nearly debt-free except for a $130,000 mortgage, contemplates whether to allocate additional savings towards his mortgage or bolster his IRA for retirement income.

Discussion & Insights:
The hosts analyze David's financial standing, highlighting the benefits of mortgage reduction to lower future expenses in retirement. Dr. Deloney underscores the peace of mind that comes with eliminating mortgage obligations, thereby reducing financial stress during retirement years.

Key Advice:

• Mortgage Payoff Priority: Suggests directing extra funds towards eliminating the mortgage to decrease future financial obligations.
• Retirement Planning: Encourages maximizing IRA contributions post-mortgage payoff to enhance retirement savings.

Notable Quotes:

• George Camel: “If you can reduce your expenses by $1,100 a month, you’re going to be better off in retirement.” (34:48)
• Dr. John Deloney: “If you don’t have a house payment, they can’t come take your house from you.” (35:09)

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Caller 5: Connor from Anchorage, Alaska – Building Wealth Without a Credit Card

Timestamp: 42:37 – 50:43

Issue:
At 18 years old, Connor runs a landscaping business with no debts and multiple paid-off assets. He seeks advice on building wealth, investing, and establishing credit without utilizing credit cards.

Discussion & Insights:
George Camel applauds Connor’s financial discipline and advises maximizing retirement contributions. Dr. Deloney humorously critiques the necessity of credit scores, emphasizing that wealth building doesn’t require debt accumulation. The discussion also covers strategies for investing through self-employed retirement accounts like SEP IRAs or Solo 401Ks.

Key Advice:

• Maximize Retirement Contributions: Encourage investing 15% of income into retirement accounts.
• Utilize Tax-Advantaged Accounts: Recommend exploring SEP IRA or Solo 401K options tailored for self-employed individuals.
• Manual Underwriting for Credit-Free Home Buying: Suggests alternative mortgage approval methods without relying on credit scores.

Notable Quotes:

• Dr. John Deloney: “Credit scores are all about being good at managing debt. It’s not something you need or interested in.” (47:08)
• George Camel: “You’re already good at what you do, but there’s a fine line between future casting and anxiety.” (82:20)

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Caller 6: Robert from Houston, Texas – Refinancing Adjustable-Rate Mortgage (ARM)

Timestamp: 63:56 – 81:12

Issue:
Robert and his spouse built their forever home using an adjustable-rate mortgage (ARM) during a tumultuous period. With an ARM set to adjust in December 2033 from 5.375%, they seek advice on whether to continue paying the mortgage aggressively or refinance to avoid future rate hikes.

Discussion & Insights:
George Camel and Dr. Deloney evaluate Robert’s steady income and substantial mortgage payments. They advocate for aggressive mortgage payoff using guaranteed income sources like VA benefits to eliminate the mortgage before the ARM adjusts, thereby securing financial stability.

Key Advice:

• Aggressive Mortgage Payoff: Utilize VA disability and retirement income to pay off the mortgage swiftly before interest rate adjustments occur.
• Sinking Funds for Unexpected Expenses: Recommend setting aside funds for potential car repairs to prevent financial strain.
• Maintain Financial Discipline: Emphasize living below means and continuing to invest while prioritizing debt reduction.

Notable Quotes:

• Dr. John Deloney: “If you can pay this thing off before it adjusts, your house is covered.” (78:43)
• George Camel: “Keep your lifestyle in check and start a sinking fund for unexpected expenses.” (79:46)

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Caller 7: Rachel from Wichita – Setting Boundaries to Improve Marriage

Timestamp: 54:13 – 73:40

Issue:
Rachel struggles with maintaining personal boundaries, leading to an imbalance in household responsibilities and a strained marriage. She identifies herself as a people pleaser, which prevents her from effectively communicating her needs.

Discussion & Insights:
Dr. John Deloney explores the root causes of Rachel’s boundary issues, linking them to childhood experiences of favoritism and lack of discipline. He emphasizes the importance of self-value and the necessity of open, gratitude-based communication with her spouse to establish equitable household responsibilities.

Key Advice:

• Establish Clear Boundaries: Encourage Rachel to communicate her needs and establish specific, equitable household roles.
• Gratitude-Based Communication: Suggest starting conversations with expressions of gratitude to foster a positive dialogue.
• Joint Planning: Recommend setting mutual goals and working together to build a harmonious and balanced marriage.

Notable Quotes:

• Dr. John Deloney: “Nothing will matter if you don’t think you're worth the conversation.” (58:07)
• George Camel: “Use sinking funds to plan for the future and ensure financial stability.” (73:06)

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Caller 8: Noah from Jackson, Mississippi – Overcoming Financial and Emotional Crisis

Timestamp: 64:00 – 85:16

Issue:
Noah, nearing 30 with three children, feels overwhelmed by financial struggles despite a substantial annual income of $115,000. His wife’s self-employed accounting business brings in $6,000 annually, and he lacks significant savings or retirement plans. Noah seeks guidance on escaping survival mode and establishing financial security.

Discussion & Insights:
The hosts address Noah’s chaotic financial situation, likening it to his demanding role as a paramedic. They stress the need for clear financial direction and goal-setting to transition from survival mode to proactive wealth building. Emphasis is placed on budgeting, reducing unnecessary expenses, and setting concrete financial goals.

Key Advice:

• Establish Financial Goals: Encourage Noah to define clear, achievable financial objectives for his family’s future.
• Implement Structured Budgeting: Utilize budgeting tools and strategies to manage income effectively and prevent overspending.
• Invest in Financial Education and Resources: Advise leveraging resources like Financial Peace University and retirement planning tools to build a secure financial foundation.

Notable Quotes:

• Dr. John Deloney: “Retirement is not an age, it's a financial number.” (35:26)
• George Camel: “Identify where spending is occurring and redirect funds towards savings and investments.” (67:57)

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Conclusion

Throughout this episode, The Ramsey Show underscores the significance of making deliberate and informed financial choices to ensure long-term stability and personal well-being. Whether dealing with mental health challenges, managing substantial investments, or striving for equitable household responsibilities, George Camel and Dr. John Deloney provide compassionate, actionable advice tailored to each caller’s unique circumstances. The recurring theme emphasizes balancing debt management, prudent investing, and fostering strong personal relationships as foundational elements for building lasting wealth and securing a prosperous future.

Final Notable Quotes:

• Dr. John Deloney: “You can’t give up on you because your track record is pretty dang good.” (02:19)
• George Camel: “Never stop investing consistently from 24 to 64; the next 40 years of growth will blow your mind.” (13:25)

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This summary encapsulates the key discussions and advice offered during the episode, providing listeners with a comprehensive overview of the strategies and insights shared by the hosts to help navigate financial and personal challenges.

Transcript

[Jessica]

Foreign.

[George Camel]

Live from Ramsey Network, this is the Ramsey show where we help people build wealth, do work that they love, and create amazing relationships. I'm George Camel, joined by the great Dr. John Deloney and we're taking your calls at 888 825. You call us up and we will do our best to give you the right next step for your life, your relationships, your emotional mental health and your money. Jessica is going to kick us off in Seattle. How can we help Jessica?

[Jessica]

Hey, guys, how's it going?

[George Camel]

Great. How are you?

[Jessica]

Not too bad. I've got bipolar one. I was diagnosed when I was 19, so I'm 24 now. And you know, I'd been on my meds, been in therapy for five years the whole time and then just kind of crashed this last couple of months. I went into a full blown manic episode for about eight weeks, racked up $20,000 in debt and through my savings that was almost $20,000. And I'm financially not in the best situation right now. I make 104 right now. I quit my job when the manic episode happened and luckily caught a new one that I started in October. So I'm just a little lost and scared of myself, if I'm being honest.

[Dr. John Deloney]

Yeah, that's it. Right? You're, you're. Well, number one. Can I just tell you, I'm proud of you.

[Jessica]

Thank you.

[Dr. John Deloney]

That's going to sound bananas, but you, you had, you've had one blowout in five years.

[Jessica]

Yeah. I mean, I've dealt with manic and depressive episodes in that time, but nothing to this, to this degree.

[Dr. John Deloney]

But that tells me you've been working real hard.

[Jessica]

Yeah.

[Dr. John Deloney]

That means you've been taking, that means you've been taking your meds even when you don't want to. That means you've been going to counseling even when you don't want to. That means you've been putting the work in. I'm proud of you. That's hard.

[Jessica]

Thank you.

[Dr. John Deloney]

Okay.

[Jessica]

Thank you.

[Dr. John Deloney]

And I, I love your self awareness is pretty, pretty amazing. Yeah. The person that you've lost trust in is not your boss, is not the government, whatever. It's you.

[George Camel]

Right.

[Dr. John Deloney]

And that's just a scary place to find yourself when you're worried about what you're going to do next. So when you, are you pretty leveled out right now or do you fall? Do you go down in the valley after a pretty, pretty hot episode?

[Jessica]

Typically I go straight plummeting down. Luckily, I got a new psychiatrist and I'm on A new medication over the last two to four weeks, I've been taking it. I want to say, feel good. And it's, it's. Yeah, I, I feel pretty. I'll be honest, I feel like normal, if you will. Mellow, medium, whatever you want to call it.

[Dr. John Deloney]

Sure.

[Jessica]

But to me, I. This is my own guess here, but because I was manic for so long, normal feels dull and low.

[Dr. John Deloney]

That's right. That's right. And yeah. Lame. That's the guys. I love that word. And that's the challenge, right? Is. How do you. It's making, Making peace with the ordinary. Right. Making peace with day in and day out. That's hard. It's hard.

[Jessica]

Yeah.

[Dr. John Deloney]

Here is the best, worst news I'm going to give you. Okay? You have one choice. Actually, that's not true. You have two choices. Choice number one is to say, see, I told you so. You blew it all. You screwed up everything. It's just going to keep happening forever, whatever. Or you can look at the data you have in front of you. The data says for five years, you scratch, you clawed. And by the way, you got a diagnosis at 19. And that means that 18, 17, 16, 15 were really tough years for you, weren't they? Yeah. So you got at 19 and you've been wobbly and figuring it out and doing pretty dang well, making a whole bunch of money, which tells me you're really good at what you do. And you had one kind of off the rails, manic episode. You quit your job and you managed to go get your. Dust yourself off and go get another six figure job, and now you're back at it. So option two is you take your lumps. You'll learn. You put one hurdle in front of yourself, which is you have one or two people that you know and you trust and love who have your ATM number and your Amazon login. And the next time they see you starting to spin up, they have permission from you in writing that they can go cut something off. And you're just going to need different hurdles than, than other people. But everybody's got their own hurdles. Yours are going to be taller because you, you got, you know, BP one. But dude, I'm just, I'm proud of you. The thing I don't want you to do is give up on you because your track record is pretty dang good.

[Jessica]

Yeah, I mean, I've dealt with a lot and, you know, like, I'm a Division 1 athlete. I, I hit all the milestones I was supposed to do and now I just feel Stuck and, like, failure. And I'm not good at reaching out for help. I don't want help. I keep telling myself, you know, I can. I can truck along and figure this out on my own. And I'm realizing that you can't.

[Dr. John Deloney]

You can't. It's okay. You know. You know who else can't? Me. You know who else can't? George? Dave. None of us can.

[George Camel]

And you reached out for help right now. You called the show. That's bravery.

[Jessica]

Yeah.

[George Camel]

So I realized that it's okay to bring others in to help you through this, and no one's gonna judge you, and the ones that do get them out of your life. And so I love John's idea of make the bad things difficult to do and make the good things easier to do. And we did this with my. With our little toddler. We took off all the ornaments on the bottom of the tree so that she couldn't reach them and smash them. And so for you, that means freezing your credit, cutting up the credit card, and putting some restrictions to make it harder to spend. Put friction in your life to where you can't spend money on that credit card because you don't have one anymore.

[Dr. John Deloney]

And by the way, it feels like the end of the world. George and I talk to people all day long who don't have bipolar one who blow through 20, 30, 40, $50,000 in credit card debt.

[Jessica]

Yeah.

[Dr. John Deloney]

And so 20 grand making $100,000 a year, 105 grand. You're going to be able to pay that off real quick.

[George Camel]

Could you put four grand a month toward this debt right now with your income? If you got on a real tight budget?

[Jessica]

Yes. The other issue is that 5,500 of it is what I'm calling a personal loan, but is to someone that I gathered a bit of a gambling problem over this last episode. And I lost eight grand to someone who was supplying that money for me to gamble with.

[Dr. John Deloney]

Do you have savings that you can go pay them off today?

[Jessica]

No, I blew through the savings I had on top of the 18,000 I have left.

[Dr. John Deloney]

So at $104,000 a year, can you get onto a local credit union and take out a loan for $4,000 or $5,500 and get them paid off?

[Jessica]

Yes, do that.

[Dr. John Deloney]

Do that today. Do that today.

[Jessica]

Okay.

[Dr. John Deloney]

And then delete their number out of.

[George Camel]

Your phone and block it.

[Dr. John Deloney]

And block it. And delete every app off your phone.

[George Camel]

And then debt, snowball the rest. Whatever the smallest balance debt is, we're going to attack that first make minimum payments on the rest.

[Dr. John Deloney]

Hang on the line. I'm going to send you financial peace University. We're going to get you hooked up and I'm going to send you the EveryDollar app. And I would love it if you had an accountability partner who also you could connect to the EveryDollar app and y'all could review budgets together or if you bought stuff, it shows up and they can see it too. And that might be a way that you can have mutual accountability with somebody. But all in all, man, you had a rough season. If, and by the way, if you got struggle, trouble with gambling, go to go to a meeting tonight, go to a meeting in the morning, get on top of this stuff. But man, you are on the right track. I want you to dust yourself up and get up and go again. I'm proud of you. We'll be right back.

[Jessica]

Mortgage rates have dropped. So if you're thinking about buying a home in the next year, contact your local Churchill mortgage team right now. If you wait, more people will be in the market competing for the same homes and potentially driving up prices. Churchill will help you do the math to be sure your budget is correct, making your home a blessing and helping you build lasting wealth. Learn [e-mail] Churchill Mortgage.com this is a.

[George Camel]

Paid advertisement in MLS ID 1591 in mlsconsumeraccess.org Equal Housing Lender, 1749 Mallory Lane.

[Dr. John Deloney]

Suite 100, Brentwood, TN 37027.

[George Camel]

Welcome back to the Ramsey Show. I'm George Camel, joined by Dr. John Deloney. The phone number to call is 888-825-5225. It's the only way to get on the air to talk to the great Dr. John and George. So choose and.

[Dr. John Deloney]

Hey, can I want to Hijack this for one second? This is totally self serving America. Listen, my YouTube channel is at 997,000 followers. I'm 3,000 away. I want to hit that million mark before Christmas. Wherever you happen to be right now, if you'll stop and go to the Dr. John DeLoney show and subscribe on YouTube, just help me hit that million mark real quick. That just. It'd be a Christmas miracle. That is so. Thank you for that.

[Jessica]

You're right.

[George Camel]

I'm not even going to mention my YouTube channel.

[Dr. John Deloney]

Nobody cares. But I'm so. It's fine.

[George Camel]

No, John needs the affirmation.

[Dr. John Deloney]

I need this. This is.

[George Camel]

He's very insecure. So if you want to give him a gift, hit a button that makes him feel better about the subscribe button.

[Dr. John Deloney]

Be good to go.

[George Camel]

You're exhausting. All right, we're going to try to help Joe in Detroit up next. Joe, how can we help you today?

[Jessica]

Hello. Hello. How are you guys doing?

[George Camel]

Well, how are you?

[Jessica]

Good. So I have a question. Heading into the new year, I want to continue contributing to my retirement about 15%. My company offers 401k where I can contribute either pre tax or Roth dollars into. And they contribute 12.5% annually. And they don't even offer a match. So they just flat out give 12 and a half percent.

[George Camel]

I'll take that over a match. Man, that's incredible. That's their money.

[Dr. John Deloney]

Yeah.

[George Camel]

Not your money they're forcing, but it's their company money. They're putting in 12.5% of your income.

[Jessica]

Yes. Which is very generous and it's a great company. So I really enjoy working with them. So my question is, should I go hard into that? Because I can contribute Roth dollars into the 401k. I think what they contribute is pre tax. But should I go hard into that 401k with Roth, or should I continue doing a Roth IRA where I'm trying to max that out each year?

[George Camel]

Great question. I would focus on the Roth side of the 401k. And if you have great funds in there, if they have some decent options. It sounds like they do. Based on how they treat this retirement program. You could do all 15% in that Roth 401k of your own money.

[Jessica]

Okay. Okay.

[George Camel]

It'll be very similar to the Roth ira. It probably has very similar funds. There's not going to be that much of a difference. The difference with a Roth IRA is you can invest in any fund in the world. On top of that, you know, you can look at expense ratios. But I think it's a good deal to invest in that Roth 401K. And again, their side will be the traditional pre tax side. That's okay. When you get to retirement, when you hit baby step seven, you could begin rolling some of that money over from the traditional side to the Roth side and pay the taxes on it.

[Jessica]

Okay, gotcha. Yeah. Cause right now I kind of dabbled in both. I have a Roth with about a Roth IRA with about four grand in it, which I can kind of use as like an emergency fund, I guess.

[George Camel]

But no, that's a retirement fund, not an emergency fund. Your emergency fund should be just in savings outside of that.

[Jessica]

Yeah, I mean, that was the plan, too.

[George Camel]

But do you have any debt heading the new year?

[Jessica]

No, I have no debt.

[George Camel]

Okay, awesome. And do you have an emergency fund saved?

[Jessica]

I have a saving, a high yield savings account with some money in there.

[George Camel]

Okay. Your goal should be three to six months of expenses in that high yield savings account. Then beyond that, invest 15% of your own income regardless of what the company's putting in.

[Jessica]

Okay.

[George Camel]

And how old are you?

[Jessica]

Sounds good. 24.

[George Camel]

Oh, man. The fact that you're talking about this stuff now and already investing, you're going to be just fine. The key is just invest consistently. Never stop from 24 to 64. The next 40 years of growth, it'll blow your mind. Go punch it into our investment calculator and have a merry Christmas.

[Jessica]

All right, well, thank you so much.

[George Camel]

Yeah, thanks for the question, man.

[Jessica]

Because I was kind of debating between like the two accounts, so thank you.

[George Camel]

Yeah, they're very similar. And for everyone listening in going, what the heck. The pre tax and the traditional Roth is just the tax treatment. So the pre tax means you're going to get the tax deduction now, but you're going to have to pay taxes on it later when you take it out in retirement. With the Roth account, it's going to be after tax, so you don't get the tax deduction come tax time. But when you withdraw that money in retirement, it grows tax free and you can withdraw it tax free. So I love that you can control the controllables because I don't know what taxes are going to be when I retire, you know, 30 years from now. So I like knowing that it's tax free. If there's $2 million in that account, that's like $2 million of take home pay in retirement. So I like that plan. Let's go to Alice up next in Sacramento. Welcome to the Ramsey Show. Alice.

[Jessica]

Hi. I have to say thank you for, to both of you and to the whole Ramsey team for everything you do.

[George Camel]

We're happy to do it. It's an honor.

[Jessica]

I have a question today, kind of a Fun1. In 2011 I moved back from college. I was, I'm from Fremont, California and my mom said, hey, the car plant that's been used to be called New Me dead for years. A little electric car company from across the bay is going to start building cars there. Let's Invest. And through $1,000, all I had at the time into Tesla stock. And last week I'm upwards of 380,000 what we owe. Yes sir.

[George Camel]

From that 1,000 you didn't put in a dime more? A thousand turned into 280,000. Because you're on the very front end of buying Tesla stock.

[Jessica]

No, I put in 1000. I did not put in a dime more. Upwards of 380,000.

[Dr. John Deloney]

Wow.

[George Camel]

That is wild.

[Jessica]

It is wild.

[Dr. John Deloney]

Do you ever play the lottery? Because if not, you, you should probably start.

[Jessica]

No, sir. That is the one time I will have won the lottery in this lifetime, I believe.

[Dr. John Deloney]

Oh, congratulations.

[George Camel]

Way to go.

[Jessica]

Thank you. So now you know. Happily married. We owe 288 on our home, and the question is whether we spell with the potential. Of course, nobody knows what Tessa's capable of to pay off the home or if we hang on to it.

[George Camel]

Well, what's your household income this year?

[Jessica]

This year it will be 175,000.

[George Camel]

Okay, so here's the question. I'm a big fan.

[Jessica]

I misspoke. I misspoke. 275,000.

[George Camel]

Okay, that's. You just missed by 100,000. No big deal.

[Jessica]

No big deal.

[George Camel]

So my, like, my immediate gut reaction was, oh, my gosh. Sell and pay off the house today. What I want you to think about and talks to talk to a tax pro about are the tax implications, because you're going to have to pay the capital gains on this, which will be a significant tax bill. And so I just want to make sure, if you talk to a tax pro, there may be a better strategy to sell portions of this off, you know, every year and use that toward the house payoff to get this done over the next three years. For example.

[Jessica]

Okay.

[George Camel]

Instead of paying a larger tax bill with your tax brackets, you know, because you're. You're basically paying taxes on $379,000 of gain.

[Jessica]

Absolutely.

[George Camel]

So I would crunch the numbers with a tax pro and see what the best strategy is. But, yes, as soon as you can get that house paid off and get out of a single stock, the better. And if you invest in a mutual Fund and your 401k, Tesla's going to be in there. It's just going to diversify your risk because Elon could, you know, you know, Trump could go, ah, Elon's not a friend of mine anymore. And Tesla Stock takes a 10% dip in one day. We just don't know.

[Jessica]

Sure, sure.

[Dr. John Deloney]

So George gave you the money part. Can I just give you my two cents? What I would do in my house, please? How long have you been married?

[Jessica]

We've been married 13 years.

[Dr. John Deloney]

Oh, gross. Y'all still like each other.

[Jessica]

We love each other.

[Dr. John Deloney]

That's so awesome.

[Jessica]

No one's getting out of this Alive, dude.

[Dr. John Deloney]

Awesome. Awesome.

[George Camel]

A little frightening, but also awesome.

[Dr. John Deloney]

What do y'all do for a living? Y'all make a great salary. What do you do for a living?

[Jessica]

My husband's in law enforcement. And my salary, this is the first year, I'm at 115. I'm an engineer for a major telecommunications company. But that comes with a big caveat. I am contract I'm not directly on quite yet.

[Dr. John Deloney]

That's right.

[Jessica]

So we have always. We have a large savings as well. And we've always been able to live within the means of his income. And mine has been extra right now, and. Yes. And also, you know, not guaranteed.

[Dr. John Deloney]

So I. If I'm you, I want you to imagine you and your husband. Just imagine this weekend. What would our marriage be like? What would our life be like if we had no house payment? And if I'm you, I put a thousand dollars on the table and I got 380. I won the. The. I've won with a period at the end. Not. I might keep winning more. I would pull my money off the table, go to the window, cash out, and say, goodbye, Vegas. And I'd pay my house off, and I'd have a different level of peace in my home. And I'd never look at the Tesla stock price again because it's only gonna make you crazy. But I'd sell it and get out.

[Jessica]

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[George Camel]

Welcome back to the Ramsey Show. I'm George Campbell, joined by Dr. John DeLoney.

[Jessica]

Hey.

[George Camel]

Student loan debt is an epidemic and defaulting on debt makes you feel even worse. But our question of the day sponsor, why refi refinances defaulted private student loans and builds a custom loan based on your ability to pay. So you'll have a payment you can afford with a low fixed interest rate you couldn't get anywhere else. Check them [e-mail] Ramsey that's the letter y r e f y.com Ramsey may not be available in all states.

[Dr. John Deloney]

Today's question comes from Vince in Massachusetts. Vince writes, my son graduated from high school this year. He lives with his mother and doesn't have any ambition to go to college or to even get a job. He's blocked all contact with me. My current wife and I are preparing to create our wills. My question is what, what would you do if you were in this situation? Part of me doesn't want to leave him any assets because I'm afraid if he knows there's an inheritance, he'll never have any incentive to make something of himself. I love the question. I don't like so much this idea that inheritance is an roi, that your kid has performed up to your standards. So I guess, although there is some life and like behavior standards too, right? So a, I guess if he's blocked all contact with you, that's, that's one thing. So no, I would not leave somebody in the will who has cut me out of their life. The second thing though is he's 18, he's a teenager and he's probably dealt with a lot of trauma in his life. Probably dealt with a lot of chaos from Yalls divorce, you getting remarried and all that kind of stuff. So I would have some compassion there too. My hope would be at some point y'all could sit down and have a grown up conversation and let them know I've got inheritance. And I don't know with sometimes people are like, I got a ton of money. It's 25,000 bucks. And then sometimes it's like Dave, like I got a ton of money. It's $700 million. And you're like, okay, so I think it's, it depends on how much money we're talking here. But I think if he knows now I'm going to pay for him to go to college, I'm going to support him to go to med school, to do whatever. I think it's Worth having those conversations. At the end of the day, if you've got a son or daughter who's struggling with mental health challenges, if you've got a son or daughter that is struggling with some form of addiction, just dumping a bunch of money into their checking account after you pass away is going to kill them. It's the worst thing you could do. And so I do think there is room for, hey, here's my expectations. Expectations are, you are a good person, that you treat people with dignity and respect, that you work hard in your job. And here is how my will is set up right now. You don't have that luxury because he won't talk to you. Maybe you could set up in a trust so that. With a. With a custodian that based on certain metrics, once he graduates college, then this comes. So if he never goes to college, then this money never comes. And then eventually it rolls to a charity of your choice or something. But I'd sit down with a, with a estate attorney and work through the knickknacks of that stuff. But I think there's George. I think it comes down to most kids think I just get, I have a right to mom and Dad's money, which isn't true. And then I think the other side is mom and dads often think, oh, I have to do this with my money. I have to give it to my kid or else. And they won't like me. It's like, man, he already doesn't like you.

[George Camel]

Yeah, well, the irony here is he's saying he already doesn't have ambition and he has no clue that there could be an inheritance. So adding one to the picture is not going to remove more ambition.

[Dr. John Deloney]

Exactly.

[George Camel]

So it's. I would see if I can repair the relationship. You can always change your will later. This is not like a forever thing. But what would I do at this point if there's no connection to this person? They've cut me out. There's no reason to leave them in if you don't want to. That's your choice. If you want to leave a million dollars anyways, that's also your choice. But I would do my best to see what's behind that lack of ambition. Because like John said, there's likely trauma. There's just a lack of hope. And I think he does want to make something of himself. He just needs some support to get there.

[Dr. John Deloney]

And one last note, Vince. If your son's not talking to you because you were a jerk when he was a kid, let's say you treated his mom real poorly when y'all. When, when y'all were married and you've went and cleaned your life up and you've changed and you're. You've got a new wife, a new life, and y'all are doing great, but son's still harboring some anger and some rage. Don't give him a bunch of money as a way to. To buy back his goodwill. That's going to backfire on you. And that's just me throwing that out there. We often try to solve guilt through our wills. Right? Like I'm gonna do this, and then. Then when I'm dead, they're gonna think good of me.

[George Camel]

That might make you feel better, but it doesn't actually solve.

[Dr. John Deloney]

But you'll be dead. You'll be dead. Right? So. And maybe this is a conversation between you and your ex wife, you and his. His mom, to talk through where he's at, what he wants to do, but there seems to be a lot more going on here. So there you go.

[George Camel]

Thanks for the question.

[Dr. John Deloney]

Did you. Did you put your kid in your will?

[George Camel]

Yeah.

[Dr. John Deloney]

Oh, you're one of those parents, huh?

[George Camel]

Are you not supposed to?

[Dr. John Deloney]

No. I'm just kidding. I did, too.

[George Camel]

Yeah, it's like. Sorry.

[Dr. John Deloney]

I was hoping you were going to say no. That would have been hilarious.

[George Camel]

Deloney's kids are listening. They just learned that, you know, learned about Santa today. There we go. Zach is up next in Tulsa. What's going on, Zach?

[Jessica]

How's it going, guys?

[George Camel]

Pretty good. How are you doing?

[Jessica]

Good. My mom's played the show in the car since I was like, eight, so it's. I'm sorry to be a good place to go from. I'm sorry.

[Dr. John Deloney]

Well, just how old are you? If you're 10, that's not that impressive. How old?

[Jessica]

I'm 25.

[Dr. John Deloney]

Wow, 25. George wasn't even born when you started watching this show. That's amazing.

[George Camel]

That's weird to think about.

[Dr. John Deloney]

So what's up, dude?

[Jessica]

Yeah, so my wife and I recently started kind of our quote unquote big boy and big girl jobs out of college. And her job comes with our housing being paid for for the next year and a half to two years. And so in March, we're projected to be done paying off our student loans. We've kind of been attacking those for the last nine months. And so from March until whenever we move out of this place, we're kind of just going to be raking in an income without a lot of expenses. And so we were looking for Ways to, you know, invest that smartly and save up for a home. But we're kind of new. New to that whole realm, so we're looking for some advice.

[George Camel]

But you just told me you have a bunch of debt to pay off, right?

[Jessica]

Actually, not a bunch. We've done a lot of work on that in the last year. We started with about 60,000 in debt when we both graduated, and we're down to 13,000 left.

[George Camel]

Great. So how fast can we pay off the 13k? Having little attachments?

[Jessica]

We're expected to be done with that by, like, mid March.

[George Camel]

Okay, so by March, you're debt free. Then how long until you have a fully funded emergency fund?

[Jessica]

We already have a fully funded emergency fund. We kind of did the baby steps. Wacky.

[George Camel]

But you've been listening to the show for. Since you were like, 17 years old and you decided Zach's plan is better than Dave's.

[Dr. John Deloney]

Bold choice. Sounds very Oklahoman, if you ask me.

[George Camel]

So the question is, why do you feel like your method is more optimal?

[Jessica]

Well, I don't think it's more optimal. We're in an optimal position where we're going to be debt free. And we don't know if we should invest just the 15% that's part of baby step three or if we should increase that while we're not paying for where we live. Should we be investing 25, 30% because we don't have any other expenses?

[George Camel]

Well, don't you want a home one day?

[Jessica]

We do. Yeah. Yeah.

[George Camel]

So you're gonna need to save up for that. And that's why we. We position baby step 3B before 4. So 3B is save up your down payment. Once you're debt free with an emergency fund, start saving up the down payment. You can do 0 to 15% during that time. So if you guys want to be investing while saving up the down payment, invest 15%. Any extra money goes to the down payment savings.

[Jessica]

Okay, so what type of account would you.

[Dr. John Deloney]

I would call it a Christmas miracle. I'd be debt free this evening. I would take my emergency fund and pay off all my.

[George Camel]

How much do you have in that?

[Jessica]

In the emergency fund? About 5,000.

[George Camel]

Okay. So it's not enough to knock it out, but you could. In the. You could be in like, the four figure mark, if you knock it down from 13 down to 9.

[Jessica]

Yeah, pretty. Pretty much. Every time we have some. Some extra money, we. We knock it down.

[George Camel]

It'd be debt free by January, late January or February instead of March. And then you'd have that emergency fund saved up probably six months after that, if not less with no expenses then we can begin saving up 15% and then any money beyond that goes to down payment and then we'll see where we're at in two years. But investing 25 or 30% now you're going to go, man, I really want a house. We have nothing down so we're going to do it anyways. On a 30 year loan with 1%. Do an FHA. This is the cycle that people get into when they want to shortcut it. And there's something beautiful about just relinquishing going. I'm not the smartest guy in the room. I'm going to follow a proven plan that works for millions of others. One thing in front of the other. That's the way to do it. Thanks for the call Zach. This is the Ramsey Show.

[Jessica]

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[George Camel]

Welcome back to the Ramsey Show. I'm George campbell joined by Dr. John Deloney. The phone number to call is 888-825-5225. If you're looking for a shortcut to get better with money, I wish I could tell you there was a magic trick you could do. But here's the best shortcut I found is making it easy to do the right things with Your money. And that's why I love our Every Dollar budgeting app. You punch in your income, you list out your expenses, you track your transactions against that both. You know, if you got a spouse, they can be signed into the same budgeting app. And so you have accountability, you have clarity with where your money's going. And I'm telling you, no matter what your money goal is, whether it's paying off debt, saving up for whatever it is, the budget will be your best friend. So you can download everydollar for free in the app store or Google Play or click the link in the description. If you're listening on YouTube or podcast, David is up next in Colorado Springs. What's going on, David?

[Jessica]

Hey, how are you guys doing?

[George Camel]

Doing great. How can John and I help?

[Jessica]

Okay, well, I got onto the debt free train a bit further down the track than most people. We are currently debt free except our mortgage. I'm hoping to retire in about six years. And my question is, I am currently investing 15% of my income into the 401k at work. And sometimes during the year we'll have an extra 500. Excuse me, an extra thousand dollars that we can put towards something. And I was wondering, given that I'm in my 60s and I don't have the 20, 30 years or compound interest to work its full magic, should I be putting extra money towards our mortgage or should I be putting a little extra into my IRA to try to give that a little bit of a boost?

[George Camel]

Hmm. How much do you have in your nest egg currently across your retirement accounts?

[Jessica]

About probably about 180, 190,000.

[George Camel]

Okay. And is there any other retirement income that you're planning on, a pension or anything like that?

[Jessica]

No, there's nothing.

[George Camel]

Okay. So history will tell us in the rule of 72 that every 7.2 years your money would double at a 10% rate of return. And so that 190, let's call it 200, would double to 400 in seven years. So you'll have 400k in your nest egg. How much is left on your mortgage?

[Jessica]

About 130,000.

[George Camel]

So over those seven years, can we also make a plan to get the mortgage knocked out, which will reduce your expenses by whatever your mortgage payment is? What's your payment every month?

[Jessica]

Trying to remember, we just moved, we just downsized. I think it's about 1100amonth. I'm paying like 2000 a on it.

[George Camel]

Oh, good, you're already paying extra and you're saying there's extra money coming in? Yes, I love it. So here's what I would do if I was in your shoes. I would put the any extra money beyond the 15% toward the mortgage. And the answer is pretty simple. If you can reduce your expenses by 1100 bucks a month, you're going to be better off in retirement. You won't need as much in the nest egg to cover your expenses.

[Jessica]

Okay, yeah, that does make sense. Yeah.

[George Camel]

And the true part is you're going to knock that mortgage out probably quicker. And that will allow you to then invest up to the max with your catch up contributions. Just max everything out that you can once the mortgage is paid off. And that might mean I got to work an extra year or two longer than I wanted to.

[Jessica]

Well, I'm already doing that.

[George Camel]

But yeah, yeah. Well, the thing is, retirement is not an age, it's a financial number. So I wish I could just tell you, yeah, you should be good at 66. It might, you might need to go, I'm not quite there yet, based on the life I want to live or. We have to make some serious sacrifices in our lifestyle in order to stay at this level in retirement.

[Dr. John Deloney]

But David, I can tell you the conversation I had with my parents, I think people get the retirement number is really important, but I also think the retirement risk profile is important. And the conversation I had with my parents who are in their 70s, was I want you all to be in a position where nobody can come take your house. And thinking about how much do we have in the nest egg? What about our bills? What about, I've got this one taken care of, nobody could come take my bed from me. You get what I'm saying?

[Jessica]

Yeah.

[Dr. John Deloney]

And so I think I really want you to have a nest egg in retirement, but man, I want you to have as little risk as possible. And if you don't have a house payment, they can't come take your house from you. Man, that. Just thinking about my own parents entering into the, into their 70s, that just gives me a lot of peace. I know it gives them a lot of peace.

[Jessica]

Yeah, I hadn't really thought of that angle. And that, that actually makes a whole lot of sense. I mean, technically I could pull money out of my 401k and pay off the house now.

[George Camel]

Oh boy.

[Jessica]

Don't want to do that.

[Dr. John Deloney]

Yeah, don't do that.

[Jessica]

I'm not going to do that.

[Dr. John Deloney]

Don't do that. I would love you to land. Okay, cool. Now we have, we have no bills, we have no, not one person owns us, except we have to pay taxes. We have to pay our light bill and our water bill and we'll have to pay some gas. Put some gas in the car. Man, that just feels like a great place to start the fourth quarter of your life.

[George Camel]

Then you don't need 1.5 million in that nest egg. You might be able to make do, but I would still crunch the numbers on this and go, all right, how much will we likely need and is there going to be a gap and what does that mean for our income? We might need to get our income up for the next seven years in order to hit this goal. So there are things you can control in this, and I love that you're taking charge even though you know you're getting a later start than many. Way to go. Jackson is up next in St. Petersburg, Florida. Jackson, welcome to the Ramsey Show.

[Jessica]

How's it going, guys?

[George Camel]

Great.

[Dr. John Deloney]

Doing all right, man. What's up?

[Jessica]

So I am 26 years old. I've been married for just about a year. We bought our first starter home in end of February. Unfortunately, we took about four, four and a half feet of water during the hurricane. Lost pretty much everything we own. So, you know, we made five mortgage payments on this house, pretty much still owe, you know, the full mortgage amount, and now it's essentially worth nothing. And the insurance is giving us about half of what we've been quoted to put it back together. So trying to navigate, you know, my existing finances and all of this has been a challenge.

[Dr. John Deloney]

Why isn't. Is your house a total loss?

[Jessica]

It's certainly unlivable, but it, it can be repaired. It's not a total loss.

[Dr. John Deloney]

So when you're getting. Where did the insurance company get their numbers from?

[George Camel]

Did you not have enough coverage or did they lowball you for some reason?

[Jessica]

No, they seriously lowballed us. We have, you know, good flood insurance, homeowners insurance. You know, we're kind of working through the appeal process right now.

[Dr. John Deloney]

Yeah, I think it's worth you going great. I think it's worth going to get an attorney to walk through it with you.

[George Camel]

What's that? What's the quote?

[Jessica]

Have already spoken with one.

[Dr. John Deloney]

Okay.

[Jessica]

But, you know, trying to prepare for the worst.

[George Camel]

So what's the quote, like, what's the gap here of the. Hey, the quote's actually 100,000 and insurance is covering 50.

[Jessica]

Yeah. So insurance is giving us 60 and it's looking like it'll be about 135 to 140.

[George Camel]

Okay.

[Dr. John Deloney]

Have you, you know, someone else that might get involved is your mortgage company?

[Jessica]

Yes.

[Dr. John Deloney]

And let them Know, hey, are this what they're coming in at? And because a cornerstone of a bank lending you money is that an insurance company has said, we'll take care of it if something happens to your investment bank. Right. If this guy keeps paying us for his insurance, we're going to take care of your investment, Mr. Banker. And they're saying, yeah, no we're not. And that might be, might be another call I would make.

[Jessica]

A lot of people in the neighborhood are, you know, selling for land value or pulling $300 cash out and lifting their home to above sea level. So that's kind of the other aspect of this is, you know, we spend all this money and put it back together and then it could happen again next year.

[Dr. John Deloney]

Yeah. I mean, you live in Florida. I grew up in Houston. That's always a thing, right? That's. We know that living on the coast. Yeah, you hope it doesn't happen, but. And if you're in a flood prone area, you're going to pay more for insurance.

[George Camel]

But do you still have the insurance?

[Dr. John Deloney]

Yeah.

[George Camel]

They didn't kick you off?

[Jessica]

No, they have not.

[George Camel]

Okay, good. And you're still living in this house?

[Jessica]

No, it is completely uninhabitable.

[George Camel]

So where are you now?

[Jessica]

You know, renting.

[George Camel]

So you're paying rent plus.

[Dr. John Deloney]

Well, the insurance company should pay for you while you're displaced.

[Jessica]

That is not part of the policy or any flood policy. So our only option there is fema. We're on like our third appeal with them. So obviously that's a very slow process.

[George Camel]

What's your take home pay?

[Jessica]

About 102,000.

[George Camel]

And what is this mortgage plus rent add up to every month?

[Jessica]

The mortgage is 39,50. Rent is about 950.

[George Camel]

Man. That's a lot of your take home pay. Going to just try to cover this in the meantime, this could be a long journey. That's a tough one. I talk to everyone, real estate agents, attorneys, the mortgage company, and just fight, fight, fight, man, I'm so sorry you're going through this. That puts this hour of the Ramsey show in the books.

[Jessica]

Hey guys, it's Rachel Cruze. Just about everything costs more these days and health care is no exception. So if you're looking at your health care options during open enrollment, be sure to check out Christian Healthcare Ministries. CHM is not health insurance. It's a biblically based health cost sharing ministry that's helped hundreds of thousands of families just like yours with health care costs. CHM is affordable, aligns with your values and gives you more options for your Health care. And you can join at any time, including open enrollment. Find out more and join [e-mail] budget that's chministries.org budget.

[George Camel]

Live from the Ramsey Network, it's the Ramsey show, where we help people build wealth, do work that they love, and create amazing relationships. I'm Ramsey personality George Camel, joined by my colleague and friend, Dr. John DeLoney, host of the Dr. John DeLoney Show. And we're taking your calls at Triple 882-55-5225. If you've got a question about money, relationships, mental or emotional health, help us help you by calling in. And we'll do our best. Connor is in Anchorage, Alaska to kick us off. What's going on? Connor?

[Jessica]

Hey, how's it going?

[George Camel]

Good. How are you?

[Jessica]

Good, good. Hey, I just wanted to kind of get your opinion on what I should do to kind of build wealth for my future.

[George Camel]

Awesome. Let's hear your situation.

[Jessica]

Okay, so I'm 18 years old. I own a landscaping company. I bring in about 70 grand during the summer and then 30 to 35 during the winter. My truck is completely paid off, and that's about $23,000. I have a $20,000 camping trailer that I rent out and that is also paid off. I have a motorcycle that's paid off and then a bunch. Like, I have more trailers and stuff like that, and everything's paid off.

[George Camel]

Goodness gracious.

[Dr. John Deloney]

So you sound like an 18 year old that suddenly started making six figures and bought every toy imaginable, just like I would have done.

[Jessica]

Right.

[George Camel]

And you've done it all very wisely.

[Dr. John Deloney]

So you don't owe any money to anybody?

[Jessica]

I don't owe any money. Nothing.

[Dr. John Deloney]

Okay. Will you make. Will you make me and George a promise you'll never borrow money?

[Jessica]

I will never borrow money.

[Dr. John Deloney]

Listen, that. You just took like one, one leap for mankind towards you having an astronomical amount of wealth. You're a hustler, aren't you?

[Jessica]

I am. Yeah.

[Dr. John Deloney]

Okay. When hustling is going well, hustlers get loaded. And when things get dicey, when the economy gets sideways or people don't need your. Your gear or somebody's like, I thought you made a lot of money. Why are you driving that truck? And it hurts your precious little feelings. Hustlers get themselves in a mess. If you will stick to this principle and the principles George is going to walk you through, all of us will be working for you someday.

[Jessica]

Gotcha.

[Dr. John Deloney]

Is that cool?

[Jessica]

That's cool.

[Dr. John Deloney]

All right. Good.

[George Camel]

Love it. Is this a solo gig or do you have a team.

[Jessica]

It's, it's solo. But I do have a team for lawn care and stuff. And then I design the landscape.

[George Camel]

Okay.

[Jessica]

Projects.

[George Camel]

But you're taking home 100k a year.

[Jessica]

Yeah, just about that, give or take, depending on the year. It's gone up every year though.

[George Camel]

Amazing. Okay, how much do you have in savings?

[Jessica]

I have about $20,000.

[George Camel]

We'll call that your emergency fund.

[Jessica]

Yeah, let's do that.

[George Camel]

Okay. So you're at the point where you're able to build wealth. You don't have any debt, you have an emergency fund that puts you in baby step four in the Ramsey plan where you begin investing 15% of your income into retirement plans. So for you, 100k a year, we're going to call that $15,000 should be being put away every single year into retirement. Now for you, you're self employed, you have options. You can always open a Roth ira. Do you have one of those?

[Jessica]

I do, but I only have like, I only have a thousand bucks in it, so.

[George Camel]

Okay, well, it sounds like you just made it to this point where you're in a really good spot. You've got all the toys you need and you have the emergency fund. So I would begin doing what's called dollar cost averaging. So you take, you know, $7,000 is what you can contribute to a Roth IRA this year. And so come January, we're going to put in one month of that and then February, one month of that. And so by December, you've put in all $7,000.

[Jessica]

Gotcha.

[George Camel]

Okay, that's what, 550. I got to check my math on that. 583.

[Jessica]

Okay.

[George Camel]

So you can put 583 every month in there. It'll be maxed out by the end of the year. But remember, you should be investing 15,000, so you still need 8,000 more of retirement account, which means you might want to look into, depending on your situation, a SEP IRA or a Solo 401K.

[Jessica]

Okay.

[George Camel]

Depending on how your business is set up. And I would be contacting a Smartvestor pro. This is a person who can help you on your investing journey. If you jump on ramseysolutions.com and click on smartvestor, they can walk you through the best options for your situation, for how your business is set up to get the right retirement accounts going for you.

[Jessica]

Gotcha. Okay.

[George Camel]

But man, you're crushing it. And if you, you know, as your income goes up, that 15% will also increase.

[Jessica]

Yeah.

[George Camel]

And then I'm guessing you have other goals. Do you want to be a homeowner?

[Jessica]

I do, yes.

[George Camel]

So beyond the 15%, let's say, you know, you. Hopefully you have money left over because you're doing such a great job budgeting and living on less than you make that you could then also set up another high yield savings account and just start shoveling any extra money into that account so that you'll look up and have a hundred grand ready for a down payment in a few years.

[Dr. John Deloney]

Gotcha.

[Jessica]

Okay, that's good to know.

[Dr. John Deloney]

Yeah, that would be.

[Jessica]

That would be nice. And then another question. How do I start? What's the best way that I can build credit? Because I still don't have a credit card yet.

[Dr. John Deloney]

Don't ever.

[George Camel]

You're 18 and wealthier than most Americans. What makes you think you need a credit card?

[Jessica]

I was thinking, like, someday when I do want to buy a house.

[Dr. John Deloney]

George and I have both bought houses with a credit score of zero.

[Jessica]

Really? Okay.

[Dr. John Deloney]

Yeah, that's. That's. That's an old story our parents taught us. And it's a new story that floats around on the Tick Tocks and the Instagrams. You want to get stupid rich? Just delete social media. Just delete social media and become a credit accounts.

[George Camel]

Never touch the stuff. Because guess what? You've already learned that you know how to manage your money instead of managing debt. And credit scores are all about being good at managing debt. It's not something you need or interested in.

[Dr. John Deloney]

Think about credit score like this. Imagine you're dating, okay? And since you're 18 years old and you make six figures, I'm. You're going to be a possession there in Anchorage. So all a credit score is is somebody asking how you've treated your old girlfriends before. They. They want to know everyone you've dated.

[Jessica]

Okay, that makes sense.

[Dr. John Deloney]

And if you ever go on a date and the first question somebody says, hey, hold on, before I go out, I want to know the names and numbers of everyone you've ever dated. I'm going to call them and check up on you. Just walk away. That's not gonna be a good relationship for you. It's not gonna be good.

[Jessica]

Okay, that makes sense.

[Dr. John Deloney]

Good to know that. Listen, I could give you $10 million in cash today and you could put it in your checking account and your credit score would not change. Credit score has nothing to do with how much wealth you have. It just has to do with how you've danced with debt in the past. It doesn't matter. It's a scam.

[Jessica]

Oh, yes.

[George Camel]

So here's the process and I'll send you a copy of my book, Breaking Free from Broken. And in the homeownership chapter, I walk people through the process of buying a house without a credit score. Actually in the credit score chapter, that makes sense where it goes. And so it's a process called manual underwriting. You'll hear this as a no score loan sometimes. And what they do, just like the olden days before credit scores existed, they'll look at your actual financial picture and they'll go, okay, Connor has a very low debt to income ratio because he has no debt, he makes a great income. We see his tax return and we're going to grant him this mortgage based on real factors. The automated underwriting is just a computer saying, hey, he's got a great credit score. You can trust him to hopefully pay back this loan. And so it's a very similar process. It's just a little bit more manual. It doesn't take more, much more time. It's simple. You just need proof of, you know. Are you paying rent every month on time?

[Jessica]

I am, I am, yes.

[George Camel]

Are you paying any utility bills or cell phone bills on time every month?

[Jessica]

Cell phone, yeah.

[George Camel]

Insurance, Yep. Boom. Those are the types of things that would qualify you. And our friends at Churchill Mortgage have been specializing in these types of no score loans for a long time. It's why they've been great partners for us. And John and I have both went through this process. So we're here to tell you it's very much possible.

[Dr. John Deloney]

And hey, you're going to learn a hard lesson. Can I go ahead and just ruin it for you, Connor?

[Jessica]

Go for it.

[Dr. John Deloney]

If you've got for easy math, let's say you make $100,000 every year on the dot. 35, 000 of that you got to pull out for taxes. 15,000 of that you're gonna put out to invest. Now you're down to 50, 000. And then you're gonna have an emergency fund and you're gonna see like, why your dad's grumpy a lot because he makes a lot of money and there's nothing. You don't get to spend it on anything other than planning for the future and giving to the government. So don't get antsy. Don't buy crap you can't afford. Just keep plugging away, dude. And I'm telling you what. I'm so proud of you, George. So proud of you.

[George Camel]

You're a hero.

[Dr. John Deloney]

You're on the path, my brother.

[George Camel]

Congratulations, child. Hang on the line, we'll send you a copy of my book, Breaking Free from Broke. Hope it helps you build wealth a much more peaceful way. This is the Ramsey Show.

[Dr. John Deloney]

This show is sponsored by Better Help. Hey, it's that time of year. It's starting to get a little bit colder. It's getting a little bit dark earlier. And sometimes if you're like me, you just want to stay inside and get cozy. And for me, my perfect cozy night is me and all of my family piled under blankets, watching a movie, sitting by the fire, maybe even reading a book. Listen, whatever your perfect night in looks like, sometimes therapy can feel a bit like that. A time when you can settle in, finally, exhale, replenish your energy and begin to take care of yourself. Therapy is a great way to bring yourself some comfort during the chaos and rush of the holiday season or any other time of year. Taking the time to pause and be mindful is one of the reasons I Recommend Better Help. BetterHelp is 100% online therapy with licensed therapist. You can talk with your therapist just about anytime and just about anywhere so it's convenient for your schedule. Just fill out a short online survey to get matched with a therapist and you can switch therapists for no extra cost. Find comfort this December with BetterHelp. Visit betterhelp.com deloney to get 10% off your first month. That's better Help.

[Jessica]

Folks, the Ramsey Christmas Cash giveaway is here and you could win big. We're giving away $500 prizes each week and one grand prize of $5,000. Enter daily for your chance to win at Ramsey Solutions.com giveaway. It's that easy. Plus, our 50 Days of Christmas deals is on right now. Get up to 30% off best sellers and life changing gifts that won't break the holiday budget. Ramseysolutions.com store.

[George Camel]

Welcome back to the Ramsey Show. I'm George Camel joined by Dr. John Deloney. The phone number to call is 888-825-5225. John, listen, I was in the Ramsey Network app as I tend to be in my free time.

[Dr. John Deloney]

You kind of live there in your free time.

[George Camel]

I noticed there's a new spot up top and it's got your face on it and it's a United States of anxiety.

[Dr. John Deloney]

So they've moved the Dr. John DeLoney show into the app and along with the Ramsey show and you can get the show a week early. But one of the big questions that people have asked since I started on the show is okay, you talk to people for eight minutes. And you give them this idea or 20 minutes. Then you give them these things they need to do. Does this stuff actually work? And so this was kind of a bluff call. And so there's a couple of episodes of me sitting with somebody for 90 days. We sit in person. And one. One person, I got on a plane and flew to Connecticut. Like, I need to see her asap. And. But we walk through. People are struggling with various things, relationships and anxiety, whatever. And it turned out to be a pretty amazing show. And so this. This latest episode is. Is about this extraordinary woman named Kelsey, who, man, she does a lot of hard, hard work during this thing. And so it's a fun. It's a fun, fun episode. But you can check out my show. You can check out the Ramsey show. You can check. Check out everything on George's favorite place to hang out, the Ramsey network app.

[George Camel]

It's totally free, so go download it. And a good reminder that the next hour of the show will be exclusive to the Ramsey Network. So we're putting a lot of cool things in there on top of new shows. The third hour of the Ramsey show is also in there. So go check it out. Go to your app store and search for Ramsey Network and get it today. All right, Rachel's up next in Wichita. What's going on, Rachel?

[Jessica]

Hi, guys. So I basically just lack boundaries and the ability to keep my boundaries, and that's got my marriage to a place where my husband's a bit spoiled and I can't get him unspoiled.

[Dr. John Deloney]

So we.

[George Camel]

I love the self awareness and honesty here.

[Dr. John Deloney]

Yeah, it's like I can't drive and my car is in a ditch. All right, so what do you struggle with? Boundaries. What kind of boundaries do you struggle with?

[Jessica]

I would say probably the most major thing is I am a huge people pleaser, and I don't like to, I guess, annoy people or bother them. So instead of doing that, I kind of just take everything on myself.

[Dr. John Deloney]

Who told you? Hold on. Who told you? Either explicitly or implicitly, who told you that you're a burden? Somewhere along the way, you picked up the message that the world would be better if you just stayed in the shadows. Who told you that?

[Jessica]

I would say it would partly be maybe like, a lack of self confidence mixed with bad, previous abusive relationships.

[Dr. John Deloney]

Okay. But that lack of self confidence comes from someone, something you don't just wake up with. The lack of self confidence, that's something that's earned over time.

[Jessica]

That's true. And I guess I couldn't necessarily Pinpoint. I don't recall ever not being like this.

[Dr. John Deloney]

Did you grow up. Did you grow up in a house where an adult said, hey, if you do that, your dad's gonna get really. Or hey, you know, mom gets mad if you did. Is that the house you grew up in?

[Jessica]

No, my household, it was kind of, I guess, maybe easy for my parents. Like my mom handled me and my dad handled my brother. It's just us two, so I didn't really get any maybe discipline from my dad. So I just.

[Dr. John Deloney]

What did you get from your dad?

[Jessica]

I guess that's maybe caught. Okay. So now I am thinking about it a little harder. My parents have always kind of denied it, but I've always. And other family members and things like that have always kind of felt like my brother was maybe favored a little bit more. At least that's always been my thoughts on it. So I felt like he was getting things that I was being told I couldn't have and things like that. So I guess maybe that could be where it stemmed from, is like, why is he getting it and I'm not.

[Dr. John Deloney]

Well, but take a step deeper. That's, that's the way to intellectualize it. But imagine yourself as a seven year old little girl when you're just basically a walking nervous system and you aren't asking yourself, why is he getting what I'm not? Like, like you can ask that question, but the underneath it is, what's wrong with me?

[Jessica]

Yeah.

[Dr. John Deloney]

Why doesn't dad like me too?

[Jessica]

Yeah. And I don't think it's that he didn't like me. I think it's maybe just easier.

[Dr. John Deloney]

I know, I know in seven. Seven year olds. Seven year olds don't tell the truth. I mean, they're not, they're not factual, but they're. They're just full feeling creatures. Right. And so all I have to say is here's where that's important right now. Nothing I tell you, nothing George tells you is going to matter. If you don't think you're worth even the conversation.

[Jessica]

Yeah.

[Dr. John Deloney]

If you think you're a burden to tell your husband, I'm not doing this, or we don't have the money for, or I need your help around here with the kids. If you don't think you're worth that conversation, or somehow his time or his precious little feelings are more important, more valuable than yours, then doesn't matter what, what tips or hacks we give you.

[George Camel]

Every time someone steps over that boundary line, the story you're telling yourself is, well, of course I'm not worth someone respecting a boundary.

[Dr. John Deloney]

Yeah, I shouldn't have put that boundary up.

[George Camel]

That's on me. You've taken this on yourself.

[Dr. John Deloney]

So tell me something. What? You say your husband's spoiled. How's he spoiled?

[Jessica]

I. It's mostly just the chores around the house, I guess. We don't actually have kids, but we. So we both work full time. So I feel like chores should be split pretty evenly.

[Dr. John Deloney]

Correct. You're correct.

[Jessica]

At the beginning of our relationship, I would say they were. He fell into a depression with his last job. And that, I think, is where the bulk of it came from, is I was obviously there for him through that. We've. We've gone through that. But during that time, I just ended up taking over everything. And it's never gotten back to the 50 50.

[Dr. John Deloney]

Well, I think 50 50, if you. If you try to keep score, that's a recipe for you crashing and burning. I wouldn't do that. But I would seek equity. I would seek. I pull. We pull equal weight around here. And what 5050 means is, you do the dishes, I do this. You do this, I do this. And then somebody gets the flu and dishes pile up, or somebody has a really wild. Like, my wife has an editorial deadline for her book. I don't do the dishes. I do my half. She does her half. Like, that's. That destroys relationships. But if there is a sense of whoever walks by the dishes, picks up the dishes, both of us help with kids, bedtimes, both of us help with laundry. And it does help sometimes to divvy up, like, hey, I'll take care of the laundry. I need you to push my wife hit send on all of our bills. Right? Like, we talk about our budget and stuff, but she hit hits. She's the one who actually writes the check or hits send on whatever Internety thing they have. I don't know how those things get paid, but. But, but. You see, but it starts with a conversation, and it starts with the. The deeper layer here is we do this together. And so here's a beautiful moment you've got. You're. You're coming up on a new year. This is a great time to do it. I would love to see you take him out to breakfast and say, hey, the last year was hard, and I'm proud of you for the steps you've made. I want us to have the conversation about what kind of marriage we're going to have this year. And I want to talk about what you need and what you want. I'm going to talk about what I need and what I want. And then we're going to talk about how we can love each other in this new. In 2025. We get to build a new marriage this year.

[Jessica]

Yeah, I love that.

[Dr. John Deloney]

And if you come at him and say you haven't been doing your stuff, the moment you say the word, you. His body's going to. You start to fight. He's got to defend himself. But if you sit down and say, I've been taking on the lion's share of this stuff while you got well, and I'm so grateful that I was able to help you and walk alongside you in this way, that's great. I want to back off on doing everything around the house. And I want us to begin.

[Jessica]

Right.

[Dr. John Deloney]

So you're using the word I, which is an invitation word. And, man, you get to decide. You get to lay it out there. I would suggest that you come with a picture in your mind that you can tell him pretty clearly. Because usually these conversations with the people pleasers start with, I just want you to pick up some more slack. And you have a picture in your head of what more slack is. And he gets a picture in his head of what more slack is, and those pictures do not match. So let's just be. Let's be specific. Let's be very specific and find a moment where you can be grateful for the things that he does do. And these conversations always help with a spirit of gratitude, a spirit of curiosity, not judging, not. I can't believe it. It's just about invitation. And then if he says, I'm not doing any of that stuff now, you have to deal with the actual gaps in your marriage. Right. Hopefully he hears you and says, I'm all in. I can't wait to build something new in 2025. Thanks for the call.

[Jessica]

I've been doing this show for over 30 years, and some of the saddest calls I have taken are from situations that are completely preventable. Yeah. And what's so hard is I feel like one of those, especially the ones.

[Dr. John Deloney]

That I'm like, oh, it's terrible.

[Jessica]

Are people that call in and their spouse has passed away suddenly and they.

[Dr. John Deloney]

Don'T have life insurance.

[Jessica]

When you have to think through how.

[Dr. John Deloney]

Am I going to pay my bills.

[Jessica]

In the middle next week. Yeah. In the middle of all that grief. Like, it's just. It is.

[George Camel]

It's terrible.

[Jessica]

And so life insurance is the one thing, especially as a mom with three little kids that I'm, like, so big on for people to get because it's inexpensive. Zander is the place that Winston and I actually get all of our life insurance. And it doesn't cost much because Xander shops among a gazillion different companies. It doesn't cost much. You just have to admit that someday you're not going to be here. You got to say it out loud and you got to say, I'm going to say I love you to my family by taking care of them and taking the time to put this stuff in place. The cost of stinking pizza. To get a free quote, call 800-356-4282. That's 800-356-4282 or go to zander.com are.

[George Camel]

You determined to get out of debt and build wealth this new year? Then don't leave out an important step, which is having the right insurance. Don't make the mistake of thinking you can get by with minimal coverage or no coverage at all because when Murphy comes knocking, and he will, you'll start backsliding further into debt if you don't have the money to pay for it and if you don't have the right insurance. So take our insurance coverage checkup. We make it easy with a free tool that helps you find out if you have all of your bases covered. To check it out, go to RameseSolutions.com checkup. That's RameeSolutions.com checkup. Welcome back to the Ramsey Show. I'm George Camel joined by Dr. John Deloney. The number to call is 888-825. We'd be happy to help you take the right next step for your life, your money, relationships, whatever you got going on. Noah is up next in Jackson, Mississippi. Noah, welcome to the Ramsey Show.

[Jessica]

Thank you so much. Gentlemen. How are we?

[George Camel]

We're doing great. How can we help today?

[Jessica]

Okay, so I guess, long story short, so I'm about three months out from turning 30 and I'm having some kind of crisis realizing that I have essentially been in survival mode, it feels like for the last 13 years of my, my wife and I've been together 13 years and we have three children together. And so I've come to notice that I have nothing saved. I'm constantly like overdrafting and I don't have a 401k because my work doesn't offer it. My wife is self employed so we don't have anything like that. I just, I feel like I need help. Like I'm trying to, to take in as much info as I can, you know, and do it that way But I'm like, I just need someone to talk to me about what I need.

[Dr. John Deloney]

I. Tell me if I'm. If I'm out to lunch, man. And. And, dude, I want to honor you in this moment. Like, this isn't an easy phone call for you to make, is it?

[Jessica]

No.

[Dr. John Deloney]

Okay. I. I want to. I tell you, like, if you were here, I wouldn't say anything to you. I just give you a hug for a second. Okay. I know this call's hard. You got three kids. You're a good dad. You're a good husband. And you also have that nagging feeling that you've probably had for 13 years. Like, I don't know. I don't know what I'm doing. Is that fair?

[Jessica]

Yes. Yeah, it is. I. You know, we were young parents. We were 16 and 17, and I just. All of a sudden, it's like life has come together. I've got a job that I adore, and my wife, like I said, she's running her own business that she adores. And it's like, okay, we've made it, but what do we do now?

[Dr. John Deloney]

How much. How much money do you make a year? What's your annual salary?

[Jessica]

So I. I brought home a little over 115,000 this year.

[Dr. John Deloney]

Okay, what about your wife?

[Jessica]

My wife, right now we pay ourselves $600 a month from her business account.

[Dr. John Deloney]

So is it a glorified hobby? And I'm not asking that in a mean way. I'm just.

[Jessica]

Yeah, it's a. She does her own accounting firm. We built a little office in our backyard, and she deals with agricultural accounting.

[Dr. John Deloney]

Okay, but. But, I mean, she makes $6,000 a year.

[Jessica]

That's what we bring home. Yes. And then we leave money, obviously, in the business, and it pays all of its own bills and all that.

[George Camel]

Is she also at home taking care of the kids and this is just like a few hours a week kind of thing or what?

[Dr. John Deloney]

I mean, she.

[Jessica]

My kids are all in school full time, and I mean, you know, as much as kids are. But. So, yes, she is home full time. The thing about my job, I work as a paramedic, and the only way I was able to find money like that is I have a travel contract. So I go up to Chicago for two weeks every month, and I work in Chicago for two weeks, and I come home for two weeks. Okay.

[Dr. John Deloney]

So the. The quickest thing, the quickest way to get out of survival mode is you have to have a. You've been running. Think of it this way. You've been Running for or you're a paramedic. So I. I've. I've run the streets with you guys a little bit. You know how annoying it is when a colleague from another department shows up and is just yelling, kind of running around like crazy without a direction, without a set of orders. Right?

[Jessica]

Yeah.

[Dr. John Deloney]

That's. That's been your life. And so the thing you have to have more than anything else is a. A direction and a goal where you and your wife actually want to end up. And then you gotta have a plan to get there, but you don't have that. You've just been doing the next right thing for 13 years. And now you're almost 30 years old, you got three kids, and you're like, oh, gosh, we don't have anything.

[Jessica]

Right, Right.

[George Camel]

The part that's concerning is you've been making more and more every year with nothing to show for it, which tells me every single extra penny you earn is getting also spent.

[Jessica]

Yeah.

[George Camel]

And I don't. I don't think it's all, like, it's for the kids. Like, there's probably some spending we've been doing out of just survival mode to kind of, you know, have some retail therapy or just go, I just deserve xyz. So where is that spending happening?

[Jessica]

Yes.

[George Camel]

Where would you say, like, man, I'm really. This is where the money's going. If you told me straight up, beyond the bills, this is where it's going.

[Jessica]

Gosh, truly, like I said, when my wife has some anxiety. So when I'm home. Oh, when. I'm sorry, when I'm gone, she does not do necessarily a whole lot with getting out of the house. So when I am home, we are taking the kids to movies and taking them shopping. And, you know, I know that I have this desire to seek this approval. I think of everyone in my household is like, hey, it's okay that you're gone, because, you know, there you go. I. I don't know. I'm trying to justify.

[George Camel]

So Dad's gone, and when Dad's home, he buys our love and life is okay.

[Jessica]

Right.

[Dr. John Deloney]

And so, again, going back to this is the magic question that transformed my marriage. It actually didn't transform it. It kept it from falling completely apart. When my wife asked me, what do you want this house to feel like when you walk in the door? And that led me to go to counseling because I was such an anxious mess and I had to deal with that, that led to us getting our money squared up because I was tired of being anxious about It. My wife had to go do her own work. And so, like, your wife just deciding. I'm so anxious now. I just don't do anything for two weeks out of every month or whatever. 26 weeks out of every year. That's insane. That's madness. She needs to go talk to somebody and head straight into that anxiety.

[Jessica]

Right?

[Dr. John Deloney]

And you. You're making good money. And probably you told yourself since you were 16 years old, if I could make six figures, all my problems would go away. Yeah, but you're missing half your life.

[Jessica]

Right.

[Dr. John Deloney]

And so maybe 85 is a better number for you where I can be with my family.

[Jessica]

Right.

[Dr. John Deloney]

Or she's working. Y'all built the whole thing. Hopefully you didn't take out a whole bunch of loan on it to. Or take a equity line of credit to build the thing in the backyard. But, dude, she could work at Starbucks for six hours a week and make $6,000 a year.

[Jessica]

Right.

[Dr. John Deloney]

You know what I mean? And so it's just a matter of asking, where do we want to actually go? What do we want this house to feel like?

[Jessica]

Right? Right.

[Dr. John Deloney]

And you have felt less than for a long, long time. And I just want to tell you, dude, the. The odds you getting. You getting somebody pregnant at 16, that a, you stuck around that B, y'all stuck this out, that C, y'all aren't in abject like you. You have. You have beaten every statistic against you.

[Jessica]

That's what I'm saying. I've got to get this figured out.

[Dr. John Deloney]

I'm proud. No, no, hold on. Before you do that, I want you to exhale and say, I've done some good.

[Jessica]

Right.

[Dr. John Deloney]

Okay, you've done some good. Now tell me, you're 35 years old. What do you want your house to feel like?

[Jessica]

Oh, I mean, by the. I don't know. I. I want my kids.

[Dr. John Deloney]

No, no, no, no, I don't. No, no, no, no. You've been thinking about Everybody else for 13 years. What do you want your house to feel like when you're 35 years old and you walk in the day after your birthday, what do you want the house to feel like?

[Jessica]

I just wanted to feel safe. Like, okay in the sense that. That. I don't know, that if. If something bad were to happen tomorrow, that we're okay or that. That.

[Dr. John Deloney]

That's your survival mode talking. That's your scarcity world. That's the childhood you grew up in.

[Jessica]

Yeah.

[Dr. John Deloney]

Let's flip it around. What do you want your house to feel like in my house? You know, What I want, I want it to be filled with laughter.

[Jessica]

Yeah.

[Dr. John Deloney]

I want my wife to be happy that I'm home, which means I have to exercise. I got to go deal with my mental and emotional health. That means I got to help around the house. I mean, I got to be an active, active participant in my house. I want my kids happy that I'm there. Right. Not just because I buy them crap, because they like me.

[Jessica]

Yeah.

[Dr. John Deloney]

And they know that I'm a safe person. Right. So, like I think that's the exercise. And I want you and your wife to get away at the turn of the year here and ask yourself, what do you want this house to feel like? And then hang on the line. I'm going to send you George and I will send you financial Peace University. We'll send you the every dollar budget. I'm going to send you a copy of George's book Breaking Free from Broke. That will walk you through step by step. I'll send you Dave Ramsey's bestseller. Gosh, I just lost the title.

[George Camel]

Total Money Makeover.

[Dr. John Deloney]

Good God almighty.

[George Camel]

There it is.

[Dr. John Deloney]

The book that built this building. James is laughing in there. Total Money Makeover. The OG book. Right. I'll send you everything because I want to support you guys and walk with you, but you guys have to get away and say, okay, what do we this house to feel like? And then you'll have to head into these things that you've been scared about. I don't know anything about money. We got you. I'm worried about your anxiety. We're going to go see a counselor. I'm worried about the kid. Number two. We're going to go meet with the teachers. We're going to go head into these problems in 2025. No more avoiding. We're done avoiding. I'm proud of you. We'll be right back.

[George Camel]

Folks.

[Jessica]

The Ramsey Christmas cash giveaway is here and you could win big. We're giving away $500 prizes each week and one grand prize of $5,000. Enter daily for your chance to win at ramseysolutions.com giveaway. It's that easy. Plus, our 50 Days of Christmas deals is on right now. Get up to 30% off bestsellers and life changing gifts that won't break the holiday budget. Ramseysolutions.com store.

[George Camel]

Welcome back to the Ramsey Show. I'm George campbell joined by Dr. John DeLoney. As a listener of the Ramsey show, many of you are wondering, am I on track financially? Am I on track to hit these baby steps to reach my financial Goals. Well, our team created a really quick, easy, fun quiz to check your progress. And on the other side, you'll get a personalized plan built just for you. So if you want to check it out, go to the Show Notes and click on the link titled are youe On Track with the Baby Steps? And complete the free quiz. And if you didn't know the Ramsey Network app is the only place to get full episodes of the Ramsey show, you can download it for free. We get the link in the show notes again or just search Ramsey Network app in the app store. And this will be the last segment of this show where you're listening right now. If you're on YouTube or podcast, if you're on radio, stay tuned. The show will continue. Everyone else, you don't want to miss more calls. So go get the Ramsey Network app and finish the show like a decent human being. John, be a good American.

[Dr. John Deloney]

Be a good, good job. George.

[George Camel]

Thank you. Robert is up next in Houston, Texas. What's going on? Robert, you're already. Dr. John's already a fan of you.

[Jessica]

Oh, fantastic. Yeah.

[Dr. John Deloney]

Gentlemen, we're doing well. They traded Tucker, so I'm still kind of bummed about it, but we're moving on. So what's up, dude?

[Jessica]

Well, we try to be really wise with our income, and I'm afraid we may have made ourselves artificially house poor.

[George Camel]

Tell me more.

[Dr. John Deloney]

Artificially. You used some great big words in that sentence. That was fantastic.

[Jessica]

Yeah, tracks. So almost two years ago, we took out a construction loan and built our forever home out on the family property next to my folks. We did get the land. We didn't build our home in someone else's land. So that was smart. I think the issue we is we kind of painted ourselves in a corner when we did it because we did it in an adjustable rate mortgage. And now it's forcing us to in a situation where we're kind of having a snowball, pay off the mortgage before the adjustment hits. So I'd appreciate your perspective on whether it'd be a better choice to continue power paying this mortgage or maybe loosen the belt a little, live our life and plan to refinance before the adjustment happens.

[George Camel]

When is the adjustment happening?

[Jessica]

December 33rd is a 10.5arm at 5.375.

[George Camel]

Okay.

[Jessica]

And we built it in March of 2020. So it was like the worst time in modern history to both retire from the military and build a home.

[George Camel]

Okay. And you're thinking, hey, do we just try to snowball this or refinance later on when Would you be refinancing in.

[Jessica]

33 before the 10 years is up is what I'm thinking, because we're able to make the payment and stuff right now. So we built it for 675, but we only financed 549 because we tried to pay as much cash as we could for different parts. The builder worked with us really well.

[George Camel]

What's your household income?

[Jessica]

So my Military retirement is 35,000, and then I have a VA disability of 45,000. That part's tax free. And I do have a phenomenal job. Or making 190,000.

[George Camel]

Amazing. So what's your monthly mortgage payment right now and what's the monthly take home pay?

[Jessica]

3,100 is the mortgage, and we're taking home about 9,000amonth. Because I have some payroll deduction for the Roth 401K. I'm at 9%. The company matches six. And they also have an ESOP of an additional 5% on top of that. And they were real generous. So I got about 18% of my income and going out of our take home to tithes and just being generous.

[George Camel]

Okay, well, if it puts your family in financial jeopardy, at some point, you may want to dial that back so you can take care of your own house first. But, I mean, nothing is on fire here. I don't see a world where, I mean, if you refinanced, what would the big deal be at this point? You'd get a slightly higher interest rate.

[Jessica]

Right now. It'd be a lot higher. Plus all the closing costs. I mean, I wouldn't make a. We're on track to pay it off in November of 32. But that's. Right now. I'm making the $3,100 payment, and we're paying an additional 3,500 every month.

[Dr. John Deloney]

How much you owe on it?

[Jessica]

466.

[George Camel]

Unless you're saying, hey, we can pay this thing off before it adjusts.

[Jessica]

Right.

[George Camel]

I think it's a great goal to have.

[Jessica]

Because we snowballed our dead. We're. I mean, I've got both of our vehicles. I think the youngest one is 16, and the lowest miles is like 230,000.

[Dr. John Deloney]

Yeah.

[George Camel]

But your, your future.

[Dr. John Deloney]

Casting problems. What if you just simply said, I'm gonna take my two VA checks for five years and that's going to go straight to the house. That's $450,000, right?

[Jessica]

Wow. Yeah.

[Dr. John Deloney]

It's $80,000 times five. It's 450,000 bucks. So the house is covered. Now you and your family have to struggle and scratch and claw to live off 190 grand with no house payment. I don't know how y'all will make it, but surely y'all can figure that out.

[Jessica]

Wow. That. I didn't look at it that way.

[Dr. John Deloney]

You see, I'm saying, like, you just cleared your. You cleared every one of your problems. You have a guaranteed income that will vest your house before. And vest is the wrong word. It's just the word I'm using. It will clear your house before the arm resets. You're done. It's guaranteed money. It's not going to go away. Your salary will probably fluctuate your 190. Hopefully it keeps going up. But you can't predict five, ten years from now.

[Jessica]

Correct.

[Dr. John Deloney]

Good God almighty, dude. That puts you in the tip, tip, tip top of earners in America to take care of your family. You're not. You're not ever. You're going to have a huge house, a nice place and a great salary. And you're not going to have new Tahoes. And that's frustrating. That's annoying.

[George Camel]

So you're going to have to keep your lifestyle in check, keep living on less than you make, and maybe even downgrade a little bit from what you guys are doing.

[Dr. John Deloney]

Yeah, you're going to get Camrys. And retired military guys aren't supposed to drive Camrys. We all know that. But you know what I mean. It's going.

[Jessica]

We're still driving junkers right now. I just. I'm figuring one of them's gonna blow up here pretty soon.

[George Camel]

Well, let's.

[Dr. John Deloney]

It will.

[George Camel]

Let's not be surprised.

[Dr. John Deloney]

Solve that when it gets there.

[George Camel]

Let's start a sinking fund. And part of that is we're gonna put 2,000 bucks a month right now into the savings account every month. We're gonna have 24 grand in a year so that when the car blows up, we got 20 grand to go buy something used and reasonable. So I think you're trying to go all in on one thing. You're in this spot in baby steps four through six where we gotta balance a bunch of things. And that's where the sinking funds are. Beautiful. Cause you just stack the money away every month. You're intentional about it. Nothing's ever a surprise. Whatever's left, we can throw at the mortgage. And you're also. You said you're only investing 9%. And the baby step four, the 15% is your income regardless of the match.

[Jessica]

See, I was. And should I still do the full 15%?

[Dr. John Deloney]

Yes. You need to give 10% to your local church. And you need to give a little bit to here and there. And right now you need to make sure that nobody's going to have to give to take care of you in 30 years.

[Jessica]

Gotcha.

[Dr. John Deloney]

You get what I'm saying? You're a good, good man.

[George Camel]

If you complain that you've amassed too much wealth because of the extra 6% invested, you can call and yell at.

[Dr. John Deloney]

John and I. Yeah, I'll take that call.

[George Camel]

You can venmo us the difference that you want to unload.

[Jessica]

Exactly.

[Dr. John Deloney]

But, but I mean, I think, yes. Tithe your 10 to your local church and be generous where you can and help out. And what'd you do in the military, brother?

[Jessica]

Electronics.

[Dr. John Deloney]

Okay. Here. Domestic or overseas or both?

[Jessica]

Oh, both.

[Dr. John Deloney]

Okay.

[Jessica]

Yeah, I was going, I don't know, six years out of 22.

[Dr. John Deloney]

Do you? Tell me if I'm wrong, dude, but I feel like I hear it on you. Do you have that sense of why me? That sense of why me? Why am I the one who's got a good house and my parents are still together and we're living by them and I got a good marriage and my kids are healthy and I make great money. Why me?

[Jessica]

You know, I used to, but it's because it's been a marriage of three. God has been on relationship since we got married back when we were 19.

[Dr. John Deloney]

Awesome.

[Jessica]

We just hit 28 years.

[Dr. John Deloney]

Congratulations, dude.

[George Camel]

Way to go.

[Dr. John Deloney]

Here, I want you to hold your head up high. You're in a good. You're in a good spot. And you've got to where you are because you're good at future casting. You're good at predicting what comes next and kind of solving that problem. But it's.

[Jessica]

You give me entirely too much credit. Well, really good at picking up the pieces after I made a bunch of mistakes.

[Dr. John Deloney]

Yeah. But you learn. You learn this magic thing. You learn this magic thing called intuition, which people think is some kind of voodoo. Intuition is just. I screwed it up a bunch and I see it coming again. Right.

[George Camel]

And you work hard and you're good at what you do.

[Dr. John Deloney]

Yeah.

[George Camel]

People don't pay people 200 grand when they suck.

[Dr. John Deloney]

There's a fine line. Exactly. You're clearly good at what you do, but there's a fine line between future casting and anxiety and worrying. So like, like, spoiler alert. Yes. Your cars are going to crap out. They are. So just start planning now. Spoiler alert. You got $80,000 guaranteed tax free income coming every year. And as a taxpayer, I'm honored To get to pay it for the work that. For the parts of your life you gave up. To protect my family. Dude, I'm all in on that. Pay your house off with it. Call it good. Worry about other things later.

[George Camel]

That puts this hour of the Ramsey show in the books. Go check out the Ramsey network app to get even more calls. Coming up.

[Dr. John Deloney]

What up? What up? It's Dr. John DeLoney from the Dr. John DeLoney show with some amazing news. The latest episode of United States of Anxiety is available right now exclusively on the Ramsey network app. This docu series follows real people from my show as they embark on a 90 day journey to transform their lives. And I personally walk alongside them every step of the way. Okay, now here's a sneak peek of what the new episode is all about. And don't forget to click the link in the show notes to download the app. What's up, Kelsey?

[Jessica]

So I've lived with crippling anxiety for as long as I can remember. How do I stop it from constantly coming up in different areas of my life?

[Dr. John Deloney]

What does crippling anxiety mean? Paint me a picture of that. All right, so you ready to jump in?

[Jessica]

I'm ready to jump in.

[Dr. John Deloney]

We're gonna check in with Kelsey. 30 days, 60 days, 90 days.

[Jessica]

I cannot even function because I am just crying. My mom left us when I was 4. I truly felt like for a while I had no family.

[Dr. John Deloney]

She's experiencing things that really hurt a long time ago. Tell me about this boy.

[Jessica]

He triggers me a lot. Scared of losing Paul. Scared of doing the wrong thing. Scared of not being enough.

[Dr. John Deloney]

It just feels like it would be exhausting to be Kelsey.

[Jessica]

It is.

[Dr. John Deloney]

Whenever somebody's playing whack a mole with their anxiety, when it just keeps moving, that tells me the underlying system's not okay.

[Jessica]

How do I get my inner child out of this relationship? Because I feel like she's running the show.

[Dr. John Deloney]

One of two people that's supposed to never leave took off. I was this.

[Jessica]

I was this burden.

[Dr. John Deloney]

You burdened. That's right. To the one person who should carry it. All of it. Did you ever tell that little girl that it wasn't her fault?

[Jessica]

I don't know what to do.

[Dr. John Deloney]

You either have to choose to let this guy love you, or you gotta choose to let this guy go.