How Do I Balance My Financial Goals and Having a Life?
John is with us in Atlanta. Georgia the start off this hour. Hey John. Welcome to the Dave Ramsey show. Hey Don Hey Chris how're you doing great man how can we help? so I have a little bit. Trying to figure this out mentally as well as math novelty I'm I'm in my mid thirties I have about two hundred and four thousand in my retirement not as job won't or should have but that's what I have right now. My base salary is one nineteen. What bonus up to one thirty, eight with my last batch of restricted stock units looking at about one fifty next year. God willing, of course. Good. So Is I really want to pay off the House that I'm living in I'm currently going through refinance right now from the thirty. Two a year. Conventional. And, I, WanNa have I wanna be completely free in the next three to four years preferably three. But I'm just trying to find a balance between retirement enjoying some the minded I'm also making but likewise paying off the house within their three to four year goal that I have. What did you say? Oh. Sorry. The house down is one, thirty nine and with the refinance been wrong in the cold and calls it comes up to one forty six. Hundred Forty six thousand. Okay. John, what's motivating you to attack pay off everything in the next three to four years. To be honest this whole situation and also just the general craziness with the economy I mean it's like pockets of positives and negatives I. Would I would sleep better and have peace of mind if I have seen nothing and no no nobody nothing basically. Okay, do you currently owe anyone anything else outside of this? House. So I paid off all Sumer. Death I did seventy five thousand and seventeen months about two two years ago who FPU. Wow. Okay. No other debts right now. Nothing zero style you have children. Children Okay all right, and did you and you said you're married, right I'm thinking. Okay. All right. Well. You don't have to talk anybody into how are you wanNA sacrifice you can just decide that. So. You can decide how much of your life you WanNa give up the only variables are formula are fixed in your situation. Are you've done a great job? You're in baby step four, fifteen percent of your income going into retirement. And then the only two things fighting for the rest of the money is mortgage reduction versus lifestyle. And you can decide that I don't care. English where does YOU WANT TO BE? But John I would rather you tap in on the internal and find that motivation not based on anything that's going on in the world. you're going to be more consistent in your value system in the thing that's driving you as opposed to what's happening out and how crazy the world is going to get. Okay. If we cash how restricted are the restricted stock options they best every few months. Okay you. Roll those into cash then. Okay. So basically, we have one hundred and fifty thousand dollar household income if everything's going like you've planned. And you're putting fifteen percent away into retirement. You have your emergency fund in place. You don't have any other bills and so I'm you what I'm going to sit down and run out three scenarios. I'M GONNA say if my spend. If I, pay off the house three years, that's fifty thousand dollars a year. For three years. Right. Okay. An out of my income that's forty eight forty, three, hundred dollars a month or whatever. It comes out forty two, hundred dollars a month. And Then I'm going to say all right. If I do that I've got that in my budget that leaves me X. for lifestyle. For. Fun. Then run the same thing out if you've paid off the house and four years, five years, maybe even six years. Maybe, maybe do three and five and six or three, five and seven and just look and say, okay, seven I get this much fun three I get this much fun which is less obviously and look at that and go. Okay. Now here's the here's the thing you none of this is a contract. So. Let's say you said Iron I'm going for the three year plan. Almost. No Fun. And you do you do one year of that and you go this sucks. I think I'm going for a little more fun and a new three year plan. That's right. After. You can adjust it if you want, it's your money and your calendar. Oh you're doing a great job buddy. You really are and you need to hear that and day, but you need to believe it. But what my point is this it for all US listening and for John is sometimes when I take these philosophies that are in my mind is like Ooh I got I got I have no life cycle for three years. We actually run the math out hundred and fifty thousand minus fifty thousand for paying off the house in three years minus fifteen percent you're single guy used to some pretty decent money left in their. You probably GonNa be like, okay. That doesn't sound like that big strain but you haven't really put money to it. You've just got it in your head math to it. You got in your head like this is GonNa be hard. That's true and Dave we're not even accounting for the fact that his income could is going to go up probably over the next. Three years. So again, John You find that internal motivation. I loved the three number scenarios of figuring out. Hey, what makes sense for you and the good thing is you can make the decision and remaking and change your mind. If you want to preserve that right because everything you're doing is in the smart column. So if you're not gonNA move outside the SMART, problem.