The Ramsey Show XX
[0] From the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships.
[1] Rachel Cruz, number one bestselling author, and my daughter, and host of the Rachel Cruz show, co -host of the Smart Money Happy Hour and a bunch of other things as my co -host today, we're taking your questions about your life and your money.
[2] And you're back.
[3] I'm back.
[4] I know.
[5] There was a bet going on on social media if you would ever come back.
[6] Everyone is like, where is Dave?
[7] Proof, you can't count on social media for anything.
[8] I know, well, welcome back.
[9] America missed you.
[10] Glad you're here.
[11] Sharon and I have been down south for a month and a half and took a little time off.
[12] We've never done that in the entire working life.
[13] So I've never taken that much time off.
[14] So I'm ready to be back.
[15] I'm getting stir crazy.
[16] Proof I'll never retire because she would not let me. But yeah, we had fun, though.
[17] We had a blast.
[18] And it's good to be back in front of the mic.
[19] microphone again, and we can put all the fears of the YouTube commenters to rest, I guess, but, uh, or whoever it was, it was coming here.
[20] You're still here.
[21] I didn't know that there was a commenter, but you, you saw there's a couple.
[22] Yeah, a couple were like, I mean, he may never come back.
[23] We, we don't know where he is.
[24] And usually the first show with Dave back, he's a little feisty.
[25] So, yeah, so read and all of that, everyone get ready.
[26] Well, it's because I get afternoon coffee.
[27] That's what does that.
[28] So, yeah.
[29] Open phones here.
[30] We'll talk to you about your life and your money.
[31] The phone call is free.
[32] and some say the advice is worth exactly what you pay for it.
[33] Triple -8 -825 -5 -2 -2 -25.
[34] Let's start with Reed in Dallas.
[35] Hey, Reed, what's up in your life?
[36] Hey, I'm doing good.
[37] How are you all doing?
[38] Better than we deserve, brother.
[39] How can we help?
[40] Yeah, so I'm just trying to figure out if my wife and I are kind of living recklessly.
[41] We make, you know, good money, but we also spend, you know, a lot of the money that we have.
[42] we followed your plan we paid off $100 ,000 in debt a couple years ago now our only debt is our house but yeah again we just kind of we spend most of what we make why do you feel like you're why do you think you're out of control or you wouldn't ask the question well I mean we take multiple vacations a year we go to you know Europe or Asia pretty much every year or somewhere in the Caribbean I mean we do we still save about 20 % of our income.
[43] Are you still doing generosity?
[44] Yes.
[45] Okay.
[46] So you're generous, you're investing, and you're enjoying your money.
[47] What's out of control?
[48] I don't know.
[49] I just maybe feel like we should be saving more.
[50] I mean, we make, you know, after taxes, after 401Ks, you know, it's about $13 ,000 a month.
[51] I'm just, yeah, do we need to be saving more?
[52] I don't know.
[53] Because you're the saver.
[54] And she's the spender.
[55] I bite up, too.
[56] But of the two, you're the saver.
[57] Yes, sir.
[58] And savers never save enough.
[59] And spenders never can spend enough.
[60] That's just nature.
[61] I mean, I get it.
[62] You know, I can tell you no matter how much we save, Sharon looks at me and goes, are we saving enough?
[63] Because she's the saver and I'm the spender.
[64] Okay.
[65] Is it just your tendency, or do you really have actual data points, that say I'm out of control?
[66] It's probably my tendency.
[67] Again, I mean, we both max out our 401Ks and save into our own investment account on top of that.
[68] And how old are you?
[69] So, I mean, 30.
[70] And how much is in your 401k's now?
[71] It's about 200 ,000.
[72] And when will your house be paid off?
[73] About 10 years.
[74] Okay.
[75] So you'll be a millionaire at 45 to 50?
[76] Not too bad.
[77] Okay.
[78] No, do you all read, you said you save 20 % of your income.
[79] What percentage of that goes into retirement investing and what percentage do you guys have saving just maybe short -term savings?
[80] It's kind of just some liquid cash on the side.
[81] Liquid cash, we probably have about $80 ,000 right now.
[82] Including your emergency fund.
[83] Yeah.
[84] Yeah.
[85] Okay.
[86] And how much do you all on your home?
[87] It's $185.
[88] Okay.
[89] Well, of course, if you're following the baby steps that we teach, you would have only 15 % going into retirement, and you would have only three to six months of expenses in liquid cash, and everything above those two numbers will be going on to the mortgage, so it would be paid off in five years instead of 10.
[90] Okay.
[91] Because you're going to put about half or three quarters of this $80 ,000 on there.
[92] Boom.
[93] Now we've got $120 ,000 on a mortgage, and we're going to quit putting Saddam much in the 401K, another 5 % a year, which another 5 or 10 grand going on the house.
[94] In addition to what you're already paying on the house, Yeah, you're done in five years.
[95] Now, when the house is paid off and you're 35, start to feel pretty good, Dan.
[96] I would think so, yeah.
[97] Yeah, and I would say, too, for you guys at that point, you'll be 35 on baby Step 7.
[98] And there may be other financial, you know, milestones y 'all want to hit.
[99] Maybe you want to buy a second property in cash, right?
[100] Or maybe you want to do something else that may slow down your lifestyle in order to hit these other goals that you want to have.
[101] So that may be the case.
[102] But for where you guys are right now, I'm.
[103] I mean, it sounds like you do well.
[104] I think that you need to, I would adjust those two numbers if I were you, because I think it's going to get you to your overall goal faster.
[105] And I would institute a for a little while.
[106] You don't have to do it forever, but for right now, at least once a quarter, go somewhere with your wife for three hours and don't do anything except look at the numbers and dream and say, okay, let's get aligned on what we're doing.
[107] Because I kind of think y 'all put this on autopilot, and it's disturbing you.
[108] not bothering her a bit.
[109] That sounds right.
[110] I think I was just used to, you know, that kind of the gazelle intensity of paying it off.
[111] Well, and you're just, you worry about the numbers all the time.
[112] And that's okay.
[113] There's nothing wrong with that as long as it doesn't start becoming anxiety -inducing.
[114] But the paying attention is a good thing.
[115] But I think the two of you getting aligned at her hearing that you're concerned about this is a good thing for her to hear.
[116] Yeah.
[117] And, Reed, and I would encourage you guys, the house will be the next big goal, but always have a financial goal.
[118] Even a baby step seven, have something you're working towards.
[119] Like Winston and I, one of our big goals was to build a house and we moved in in 2019.
[120] And there was probably a year, I mean, 2020 hit with COVID and everything.
[121] But I mean, maybe a year, year and a half or we didn't have another big goal.
[122] And you do look up and you think, oh gosh, like, are what are we?
[123] Am I being wasteful?
[124] Yeah.
[125] It's just kind of that feeling.
[126] I think there's a natural health to saying, hey, there's something else our money is going towards besides just the 15 % and building wealth and all of that.
[127] But there's these other things that we're saving up for.
[128] And I just think that's a good rhythm to be in.
[129] It's just to kind of always have that thing out there that you're always thinking about and working towards as well.
[130] That makes you feel less like floundering.
[131] Yeah.
[132] And the goal can be a systematic increase in your generosity and go, you know, like, you know, I want to give away X by the time I'm 40.
[133] I want to, I want to build a wing on the freaking hospital.
[134] I don't know whatever it is you want to do i don't care but that can be your goal it doesn't have to be something you're doing for your own uh net worth it can just be that but you got it you really need to have if you aim it nothing you'll hit it every time that's your point yes yeah yeah and you're exactly right well just feels like you don't have anything that you're like anchor tour you feel list you feel listless and shifting yeah and that's a little bit about what reads feeling he's feeling a little bit untethered yeah exactly so if we get an alignment and we discuss in high definition what our dreams are.
[135] We align our high -definition dreams in our marriage, and then we go, okay, I heard you, but I think we're okay.
[136] Okay, now that you heard me, I think I'm okay.
[137] You know, that kind of thing.
[138] And just get aligned on that and say, this is what we're doing.
[139] Then you can make decisions like that.
[140] That's a cool thing.
[141] This is the Ramsey show.
[142] Buying your first home is a big deal and sets the stage for your financial success.
[143] So work with a mortgage advisor you trust, not just some random website.
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