Ramsey, John Baloney discussed on The Dave Ramsey Show


Ramsey research that we did ten thousand of them we studied pays off their home and eleven point two years. So i want you to knock this thing out. You have a fabulously large shovel. Your income is amazing. What do y'all do. I'm a nurse practitioner and my husband is a cpa. Both gonna keep working. Yes what's wrong with your current house While we have four small children so we don't have quite enough bedrooms and Just like they're mostly desires. We could we could definitely make it work But it's mostly just you know desires for a little bit extra and that's where we're like you gotta we've been living frugally for so long And now it's like okay. Are we okay with with taking this next step and spending this kind of money or should we use it to benefit in other ways you said equity in your home is your current home. Paid for No we have about two hundred and fifty thousand would your sell that property off when they do this yes had good. Okay yeah then. I i would do this okay. Now the the trick is four kids. You can't call me up and go. Oh we decided. Cut our income in half. Because i'm gonna stay home. Yes yes you gave that right up when you bought this out yes and another we pay a about forty thousand dollars a year in childcare so in about three three or four years that one even be you know on our budget at all so another area that will game. I'm more cash flow to the the key. Part of this equation is just your income to your payment and you can make that work and not just make it work. It shouldn't be any trouble at all. And then you just keep working your baby steps but as you as you find money in your budget you're going to keep working baby steps four. Five six four is fifteen percent of your income into retirement. Five is kids college and sixes all the money. We scrape together from something that any other money. That comes a bonus. Money increases in income. Whatever's all gonna throw it at the house and this how's it going get paid off in sooner than fifteen years and that's the pattern that you want to be on that. That's where all the data points lead us so specifically you would take that to fifty put against this house. Yes or now. We're at five fifty. Yes and i'm looking at that against my three hundred twenty five thousand a year salary. That's easy yeah. That's simple math. Yeah fifteen fifteen year fixed rate and or the payments by your easily do that and so they can reach over. Knock that thing out pretty quick. It just It is a little bit emotional. But also really. They're taking a big chunk of debt. Because i couldn't tell earlier in the call whether she like had two million dollars set aside or something. I couldn't feel it so You know again. The facts will lead you to say this is okay. But the facts. Also say you have to. You have to continue the the trick that you're on you can't change direction on you. Also have the emotion of selling part of your ten acre plot. And that that's your dirt right and yeah. I mean they're willing to do that. I think that's that's pretty. Well decided now. When john baloney gets racial piece of dirt. That's a problem. This is like the counselor will need counselling. I will be hard for me to sell dirt. You are your dirt maniac. Land i am too. I am too i. One of my favorite places on the planet is my big old farm and ain't nothing on it but some grass and rabbits. I remember going out to it the first time. A bunch of spy showcasing went out there. And where does the this. And i thought. Oh this is a happy place me. There's nothing else here. it's nothing else here. Just a big old piece of dirt and somebody needs to hold the rest of the earth together and that piece of dirt does it. So that's why i'm here. That's my my calling. I have a hard time parcel in but again everybody does their thing but You taught me this when you start playing with bigger shovels and you start playing with bigger zeros and it really leaning into those ratios is important. Yeah it is a little bit like you know your trauma. Formula factor your friends. Yeah okay what's really going on. Not what's the emotion right. You know what's really going on as you. Do you do the math. And you know you look at a projection on that and you look at the facts and then you say okay. Why am i scared. Why am i shamed. Why then do i have these negative feelings when all the math indicates i shouldn't do you still if i go look at a new truck i still have a number from the first time i wanted a truck back in ninety seven and i look at new trucks now.

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