Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Radio Studio, this is The Dave Ramsey Show, where America hangs out to have a conversation about your life and your money. I'm Chris Hocking. And joining me is fellow Ramsey personality, Dr. John Boloney. And we are very excited to be with you. And we are ready to talk to you about your questions on money or if you're dealing with relationships or dealing with emotions. Dr. Dulaney is here and he will provide you some guidance and some instructions on how to go as we kick off the show.

I do want to let you all know that John has a show himself, the Jon Dulaney show. New episodes are every Monday, Wednesday and Friday. And on YouTube, you can catch him there and get a chance to see him and his facial expressions. But you can get real talk on life relationships as well as mental health challenges. So are you ready to go today? Let's do it, Christopher. You look wide awake. I'm wide awake, OK?

And you're properly caffeinated just like me. So it is time. So we want your calls. Jump on the phone line. Call us Triplette 855 225. Again, that's 888 8255 225. Kelly is standing by. Let's light up those phone lines. We want to hear from you. And if you prefer, you can find us on social media. You can look up at Ramsey Show. You can find me on social media at Chris Hogan 360 and you can find John at John the Lowney.

So you got all the ways to be able to connect with us. We're going to get to the phones. First up, we've got Dave out of Daytona, Florida. Dave, how are you?

Good. How are you? Oh, I'm focused and not finished, my friend. What's on your mind?

So my wife and I recently became debt free and we're wondering when it would be reasonable for us to buy a boat or if we should continue piling into that extra retirement and, you know, potentially a rental house instead. All right. See how far we should keep going. All right.

So you made some stuff happen. How much debt did you pay off?

Well, we paid off our house, which is 215. Oh, you know, loans were about 40. OK, but sold cars, you know, new cars got rid of those. OK, got some reasonable cars at about 10000. All right.

So, Dave, you all paid off the house. Yes. That's amazing. How old are you? All 29.

What, you have a paid off everything before you hit 30, my man. Good for you. Has that unicorn right there. That's the way to go, buddy. I'm proud.

So what you all's household income one term after taxes. OK. And so, listen, I'm going to double check 40. All right. And you do have a three to six month emergency fund. Yeah, OK, I need you to answer, yes, these next few questions, you invest in 15 percent. Yes, all right, you paused on that window, maybe reached his phone, are you doing much more than 15 percent?

Wait a minute, how much more will we live on? 40. And we paid off our house and we've been just putting everything into there. So another, you know, 60.

Well, wait a minute. You guys are investing 60 percent right now. Yeah. Dave, where is your wife right now?

She's at work. How many jobs do you have her working? She's got one job I've had.

She been to a restaurant since you paid off this house? You're investing everything.

Yeah, we we go to restaurants. Nothing fancy.

Like Taco Bell. Where are you taking her? Like a pizza place. Listen to David, get him. John, you're in Daytona, Florida, where there are some of the best eateries on planet Earth. You've paid off everything. You're not even 30. Here's what you're going to have to do. You are taking weird to a whole new level, my friend. And when weird goes too far, it becomes pathological. That makes you insane. OK, so you're getting real close and we're laughing and smiling.

But you got to enjoy some of this. Do you do you have one man? You have one.

So so we're going to back down to 15. We're going to readjust. You all have kids yet? No kids. No kids. So young. All right. Talk to me about this boat.

How much are you planning to spend with the truck? About 80 K. OK, you said both. Now you add and stuff and me all of a sudden here you said Boat Slippery Dave.

Here he goes. Yeah, yeah. So like probably 60, 60 on a boat and would need a truck to tow it. Need a truck. That's all right.

You're going to a new house, Chris, with a big garage to park all stuff in.

So what's your game plan? Listen to me, Dave. What's your game plan? Because please tell me you've worked this hard to get to debt free. You're not going backwards, right? No. OK, I said one more time. I need you to answer it from now. Yeah, OK. So a year or two from now. So you're going to cash flow this thing.

Absolutely. OK, I don't I don't see an issue with that, to be honest with me, to honest with you of where you all are and what you've done. If you're going to cash flow it, meaning you're going to back down, you're investing to 15 percent. You're going to you don't have kids yet. You've paid off the house. So now you guys having a sinking fund, i.e., that you're saving up toward to get that boat, I don't see a problem with it.

I think you and your wife need to make a list of priorities of what do you want to do? Do you want to renovate some rooms? You need to find out what your wife wants to do because this boat sounds like your idea. So what's her thing? You know, what is that? And I think John is absolutely right. It's imperative to enjoy some of it or you'll start to feel like you can't you'll feel you'll be a prisoner of your own making, right.

Have your own prison and then you will have these rules that will become ironclad feel. And they'll feel like concrete at the same time and say, I mean, y'all are just doing great. We need a new vision. Now, I bought a boat, right? The beginning of coving my boat cost three thousand bucks.

Now, I got ripped off by a couple of twenty year olds. They scammed me and they did a good job. I got a high five. It's a Craigslist boat, right? They got their deal. So I'm not saying by three thousand our boat, but there is a big gap between 60000 dollars and three. Enjoy your money. Right. But, man, if you can find a boat that you might find a cheaper. There you go.

But you know what? You've paid off your house. You got all your money. If you win and get get what you want.

John, how much was your boat? Three thousand. I am never getting in Europe.

Do not. I'm gonna tell you is your friend Chris do not get him. This body size does not belong on a three thousand dollar boat. I need something seaworthy. I need something that can go to the Pacific. This one can go through a medium sized bathtub. But it was fun. It was fun. Here's the deal for you all out there that are hyper focused and intentional. Being intense is good. But when you fall off, when you when you don't allow yourself to breathe and do a little bit of stuff here and there inside the budget, what will happen is, is you'll collapse.

I can remember the Atkins diet. You don't remember that. I remember the Atkins young. Remember that I can you could eat a side of beef, but you couldn't have one potato chip. That's right. I was on that. Died for about. Hold on. Let me count about two hours. I was on a diet for two hours, lost my mind, ate a whole bag of the read. I was like, OK, I couldn't take after the rest of my life.

Yeah. So you got to have moderation. And I think that's what's so important. And I think, again, Dave, seriously, congrats on you all paying off everything, being completely debt free at age 29. You all have been fantastic and on the ball. But it's now time, as John said, for a new vision. What's the new thing you all are chasing? Because you're obviously in sync and aligned financially. Now, what you got to do is, again, give yourself permission to enjoy.

And our colleague Rachel Kroos talks about that in no, you're still your your life knowing about your life and enjoying yours. And so have that spirit. You won't have that dream date again, set a new vision and chart a new path that you all are going. But you're not going to go backwards, buddy, because stupid is out there lurking. This is the Dave Ramsey Show. Business leaders, how are you communicating with your customers? Do you know that 97 percent of text messages get opened and 90 percent are opened in less than three minutes?

Why aren't you texting your customers already? Go to podium dotcom to learn how to turn your landline into a text. No, this has been a game changer for doctors. Retail stores and service industries across the nation confirm appointments, ask for reviews and get paid all through text. Go to podium dotcom and try it for free today. Welcome back to The Dave Ramsey Show. I'm Chris Hogan and hosting along with me this hour is Dr. John Delany, and we are excited to talk with you and take your calls.

We are wreaking havoc and helping people as much as possible right now. But I've got to tell you, 20-20 has been wild. So many plans have changed this year. So many things have been canceled. But the year isn't over. And we've got some amazing things coming up next weekend here in Nashville. Now, about now, you have definitely heard for sure we are live streaming our smart conference event for the first time ever next Saturday, November 7th.

And we have I have a very limited number of seats available for an exclusive in-person studio audience experience. Now, not only will you get to be in the room as we streamed this event to tens of thousands people across the nation, but you'll get to join us for an amazing VIP reception on Friday night, November six, with Dave and all the Ramsey personalities here at Ramsey headquarters. We're going to have heavy orders, a bar meet and greets, photo ops and all kinds of fun.

So if you're interested in joining us for this act fast, because we have less than 50 seats left, it's only 50. I think it might be shrinking by now. Tickets are available for the Smart Conference live stream studio audience today at Dave Ramsey dot com slash event.

Now, I've got to tell you, smart conference. This your first one is my first one. Listen to me.

It is one of the best events that we do by far because we're going to be talking on topics such as parenting, talking about goal setting, talking about money, talking about retirement, talking about career. I mean, it is all the information in one day. Now, for those of you out there that are already smart enough to be signed up for Ramsey, plus you're going to have an opportunity to live stream that for free. But if you want to come here and hang out and meet John and Dave and Kristi and Rachel and maybe even me, you can meet me too, as well as Anthony and Ken Coleman.

You need to register now to come Dave Ramsey, dot com slash events. So it'll be a great time. I'm looking forward to it. You've got your talk ready.

We are getting ready to go, man. All right, man, I'm excited. I'm telling you, it's going to be fun. Looking forward to it. And it's a great day. I love to hear from the team. And when I'm not speaking, I'm sitting in the green room taking notes.

That's the most common thing I hear, Chris, from my colleagues is they speak and then they sneak out and go sit in the audience, sit down, because this it's it's so good that those of us who are also who are personalities, who speak for a living, but also our husbands and wives and dads and community members, we want to figure out who this to man.

Absolutely. And why we why would we not waste this opportunity, grow ourselves to be able to hear it.

So it's that constant growth mindset and that's what happens. I think if you ever get too comfortable to where you think you've arrived and you can't grow anymore, that's where you begin to backslide. That's that's that's where you just start digging your own grave, my man. Yeah. You're I mean, yeah, you always have to keep making yourself uncomfortable being around people who think different. Read a book. It's going to make you uncomfortable. Listen to speakers grow.

Grow man. Yeah.

I think too this is a good time to assess your friends. Like are you around people that are pushing you to better write. And and I think, you know, I talked about I've got a YouTube video out there. I see you've got four people you need in your life. John, tell me if you agree with this. You need you need you need a coach. That's somebody to push you. You need a mentor. That's somebody you're kind of patterned yourself after, someone that's had some success.

You need cheerleaders in your life, people to believe in you and you need some good friends. That's right. And you get those four people in your life, and I'm telling you, it starts to change the game. But here's the deal. This is where I flipped it on people in my video. John, not only do you need to have those four in your life, you need to be one of those four brothers. That's right.

Because you get to you get to learn by doing right. You grow by doing.

And there's so many times I'll show up in somebody's life in a in a really tough situation. And on the way home, I have to ask myself, how would I thought I had this conversation with my wife? How would I tell my kids this? And then I realized I'm ill equipped to deal with this in my own house.

Then I got to go get a mentor in the loop. Starts again, does. And so it's constantly pressing yourself to lean into hard conversations and grow.

Well, the weird thing is, is as you focus on others, it makes us less selfish. And it does it makes you more empathetic.

It makes you realize, oh, I don't I don't know how to do that either. Yeah. Or I wouldn't have handled it like this. Hey, Chris, tell me, why did you do X, Y and Z and you and I've had some of these conversations back there.

You have it just makes us realize that we have way more in common than we do different, right?

We sure do. And I'm telling you, we're all living this thing called life. And the reality is, is it's not meant to be done alone. So I want to encourage you out there. If you are not plugged in to a community, we've got the Facebook Baby Steps group. I've got an everyday millionaire, a Facebook group of people that are chasing their everyday millionaire dream. Some have achieved it. You can go to Facebook dotcom slash. Chris, can 360 click on the group section and you can join every day millionairess people anywhere from 18 to 80 and they're cheering each other on, which is just a great opportunity to never be alone.

And if you're already plugged in and a part of RAMSI, plus you've got a great opportunity to be plugged in with the community as well. Don't do life alone. I'm telling you, it'll give you a new area of focus. All right. We're going to get to the phones. We've got Patrick on the line. Patrick, how are you?

I'm doing great. Mr. H. Dr. J. How are the two of you?

Oh, I'm focused on not finished. How are you doing? I feel like I'm running a scam here. This is my day job. So, Patrick, we're doing great, brother.

Well, let me tell you why I'm calling this off a little unsolicited plug back in July twenty eighteen, I called into the show. And Chris, I believe you were on the air with Dave that day. And I called in with some very dire concerns about my retirement. My wife and I were 60000 dollars in debt. We were doing all sorts of really wonderful balance juggling with credit cards. And we are now baby step three in our outlook looks so much more hopeful.

That's great. My wife is sleeping through the night and I actually feel like I'm doing something right. That's fantastic. And I want to thank the folks at Ramsey Solutions for sending us Financial Peace University. It has really rallied our marriage in our relationship and our outlooks on our future. And in January, we're going to be facilitating a class. Oh, that is fantastic.

Patrick, thank you so much. It's great to hear that because it's also great that you are doing the thing we also talk about which is giving. And so you're giving back by facilitating, so you'll be able to blazed the trail for others. So congrats to you, my friend. How can we help you today?

Well, so my my follow up question from two years ago has again to do retired. And so I recently discovered the existence of a pension that I've been paying into at the tune of six percent of my annual income group. And I also have a 457 where my employer will do a five percent match. So my question has to do with what sort? Six percent of my income is going into the pension general fund and I'm getting five percent in my 457.

Once I start that particular step, what then is my percentage? Is that makes sense? Yes, sir, it does.

You make an absolute complete sense. So you've got six percent of your money going to a pension and when you start the 457, they're going to do a five percent match. Here's the reality, Patrick. We tell people once you get yourself out of debt and you build up that fully funded emergency fund, you yourself are investing fifteen percent. So if you've got six percent going into the pension, that leaves nine percent left that you need to do either using the Roth IRA or going back to, you know, you investing in growth stock mutual funds outside of retirement.

So you yourself want to be doing 15 percent, I don't care about the match at all. And so that's that's that percentage you want to be at. Great. Yeah, no, no, that's a really, really good question. The match is just gravy money, right? That's exactly right. You don't count it, John, because it comes and goes.

It can stop, like a lot of businesses right now have stopped the match because of it. Right. It's a it's a cost saving measure. It'll come back. It happened in the Great Recession in 07 09. So it's just a cost saving measure. That's why you yourself are doing the 15. So to be clear out there at all, the listeners, you were investing 15, the match doesn't count. We're going to call that like gravy. It's extra.

Of course it's good. It's free money. You want to take advantage of it, but you yourself want to have the habit of 15 percent other. Patrick, also with your pension, when you get to that point of retirement, you want to make sure that they are offering you that in the form of a lump sum. And I want you to always take that lump sum because you can go invest in many more options and sit down with a smart Vesterbro and get a better rate of return than that pension will.

Stay tuned, people. This is the Dave Ramsey Show. Welcome back to The Dave Ramsey Show. I'm Chris Hoggett, and hosting with me this hour is Dr. John Boloney. And we are having fun. And it's because you all are reaching out and calling and connecting with us. And we appreciate you. That number to call us Elite eight two five five two two five. Let me tell you one more time. Eight eight eight eight two five five two two five.

Or you can find us on social media at Ramsey Show. Or you can hunt down John at John Doe Lowney. He's on the Facebook, the YouTube, as well as the Instagram. You do have Instagram now, right? I've got it. We tell you what that word, 21st century man. All right.

You can find me at Chris Hoggett 360. John and I have been on and we have begged for your vote before. And this is not about the presidential election. This is about helping the lonely. And I beat Rachel Cruz and Christie. Right. They are dominating us on Instagram and as far as number of followers that they have and we need to catch up. Can I tell you what happened?

Once when I was sitting in the office and I was looking at this Instagram machine and I said, man, I need X number of only 500 more people or something. And I hit some some number.

And Rachel Cruz looked at me and she pulls her phone out and just puts me in the rearview mirror of it. And she goes live and says, Hey, everybody, I'm Rachel Cruz. Please follow this guy. I had a thousand. It was like all this wisdom I think I'm putting out there, Chris.

All these good nuggets, these ladies, nothing. These ladies are on it. She's a sorcerer. She's really beautiful. No, she really is. And listen, I joke. We do want to beat them. By the way, that's not a joke. Across over 360, John. Baloney. But again, follow up Ramsey personalities on social media. Coleman is pushing out information about careers. John is helping people with relationships and emotions. Christie is talking to women in business.

Rachel is talking about money and lifestyle at the Oneal is talking to millennials about money and life. I'm helping people with building wealth and getting prepared for retirement. So, again, you've got a great opportunity. There is no reason to be plugged into all this negative stuff going on when you've got an opportunity to plug into some positive, uplifting stuff that's actually going to get you somewhere.

Yeah, right. Yeah, it really and truly is. So join us on social media. We'd love to talk with you. I really get to the phone lines. We've got Jesse on the line. Jesse, how are you?

Hi, I'm great. How are you? Oh, we're focused and not finished. How can we help you today?

Well, thank you so much for taking the call. Yes, ma'am. First time, First-Time Caller, long-Time listener, short story. My husband and I, we've been listening for about ten years, but really last year we got focused, started the steps were in back. Good. We're putting yeah we're putting away about twenty one percent into our retirement. That's with my profit sharing with my company, you know, and I've always listened to the callers call in and have discussions about their financial advisor and dumping them in that sort of thing.

So we've really been paying attention to our return and we have a rollover account that we set up when we first got married and just noticed that the performance on those was not what our personal funds have been. So we dug in a little bit more. I talked with a new financial advisor that we really enjoy and we realize these are seed funds and those were set up, my goodness, ten years ago, my read and investigated. It's almost like a gut punch.

And this initial advisor was a good friend of a family and grandparents. Right, Bill? They were going to get out of these, but I guess I want to understand what that was. Yeah. And now what to do with one hundred and seventy eight thousand dollars in these funds. Right. They can be moved. Yeah, no.

And realistically, Jesse, what you're dealing with in that scenario, you were dealing with someone that had a very safe and very no risk type mentality as they were doing the investing. And so unfortunately, when, you know, at that point in time you were dealing with someone that wasn't asking you all what your goals were or maybe they were, maybe they asked you what your goals were and your risk tolerance was extremely low. And my risk tolerance, I'm talking about see, for example, the speed limit, like when I speak to groups and people around the country, I say, all right, you need to know what your risk tolerance is.

So I asked them, how fast do you drive the speed limit if it's 55, how fast are you willing to drive? And people will tell me we'll go five miles over a ten and you get Daredevil's like boloney. That'll go twenty miles over like, OK, all right. And so what you're seeing is risk tolerance for getting a speeding ticket. The same is said with investing. So typically, C funds are used for more beginning investors that have a small risk tolerance because they're making their fees through annual fees.

It's not a high fee. It's not a high risk. It's kind of their shares. You're up. You're up. A different class, they're going to have fees, but as you can imagine, the difference between A, B and C, it's a four class difference. So what I would do if I were you, as I would sit down with your investment professional and if you've had one and you've had a conversation, I want to encourage you to have another consult with the smart Vesterbro looking at what you have in the hundred and seventy eight thousand, understanding your options based on your new found risk tolerance today.

And so you're right, it is frustrating and irritating when you're not seeing the growth and the things that could have happened if it was invested. Jesse, this is why I tell people to quarterly at minimum annually sit down with your investment professional and bring everything, bring old 401k spring IRAs, bring it all and sit and look at it so you can get this full picture, because oftentimes what happens, I can remember my first four O3b that I did while I was coaching.

You know, I literally was picking stuff like I was picking out Cheerios. Right. You know, do you go with this one or this one and just grabbing stuff didn't have rhyme or rhythm to what I was doing. So grab your paperwork, bring everything, sit down with the smart Vesterbro and begin to get a comprehensive adjustment. I would switch without a shadow of a doubt from the C to the A.. Now it's just a matter of you understanding what those options are based on the goals of that money.

When are you needing it? What are you needed to do? People have told me, Chris, I want to grow this money and pass it on to my grandkids or I'm going to grow this money to buy a second home. I want you to have it a name and a high definition dream of what it's doing and you and your husband can get aligned and what your money is doing together. So reach out to a smart Vesterbro, go to Dave Ramsey Dotcom.

You can find a smart Vesterbro in your area just to have a conversation with and begin to get these this dream aligned in.

Jesse, before you hang up, I want to pass along one one on non-financial related tidbit. You mentioned that he did something ten years ago. You got some good wisdom and you did it. And then you look up ten years later and you called it a gut punch. Couldn't believe this happened.

What a bunch of idiots we were. We got taken advantage of. Do me a favor. Don't beat yourself up. You learn something good. You have made some more money. Yeah, I have a heart for somebody that was trying to invest with a young couple ten years ago. Remember, ten years ago, the world was sideways in a mess and the rules felt weird and different and shifty. So whatever happened ten years ago, let yourself off the hook.

You learn something new and the school, let's go forward and go change it, right? No, but let's don't carry that gut punch and forgive yourself and move on.

You know what? That's a good point, because thinking back ten years ago, that would put us at 2010, we didn't know what day it was, but we were just coming out of the Great Recession. So we were right. People. Yeah, exactly. The 070. Oh, no, that's right. So people saw their 401k become more like a 201 K in the government to start print money and they had quit.

Right. So nobody knew anything.

So I don't know the heart of the person you worked with ten years ago. But John's right. There's no sense beating yourself up what it is, what it is. My grandmother used to say that it is what it is now. What what are you going to do moving forward? I think you guys could take control and really begin to have a new outlook and a new area of focus for yourself. Again, for those of you out there, if you're going, boy, I haven't looked at my 401k statement in a while.

Again, I know the market's been doing this and all that stuff. It's the roller coaster. But I want you to actually open up those statements, take a look at it. And if something looks off or weird, I want you to reach out to your investment professional. Get on the phone if you prefer, get on Skype or do some kind of technology so you and your spouse can be there and you can see them and you can ask those questions.

I'll be vulnerable for a second. Yeah. So this no, this retirement calculator. Tell me what this is, because here's what I get nervous about that eternal question. Am I going to have enough? Yes.

Am I going to have enough? Yeah. The RFQ free tool at my website to help you start to answer that question, to tap into your dream of what you want for your retirement, but also understanding how much am I going to need that way? You don't feel like you're chasing a ghost. You actually begin to put some skin on the bone. I struggle with that man. The retired spa quotient free at my website. Crisil get 360 dotcom.

You can do this and we're here to help. This is the Dave Ramsey Show.

Welcome back to the big Remzi show, I tell you, we were just out in the in the lobby. We've got real people here, people from all over the place that Wisconsin we got some newlyweds in the house, Tony, Christine, some California Tory, Christine, celebrating their honeymoon with the Dave Ramsey Show. Yes. They are so good to see them. Good to see them. We got some Californians in the house that are actually going to be looking at land here in Tennessee.

So we are recruiting people. Come on. Come on, come on. Quality of life.

We've got some Texans over there that are wearing their full Texas uniform. I'd love to see them go.

I have got the boots and they look great. They're full of an American right there, man. So, listen, if you're ever in the area, come by and visit. We've got some coffee and cookies. And Miss Melissa, I'll take care of you over at the Baker Street Cafe. And you've got an opportunity to browse the bookstore to pick up all of our best selling books. Speaking of best selling, somebody else that I know has a book coming.

They just put they brought it and put it on my desk yesterday, Chris. I saw it pressed and brought it in. It looks good. Yes. Dr. John Boloney has a book coming out. And it is going to be a fantastic book and a fantastic guide in a time of need right now that we have going on. John, tell them the title.

It's called Redefining Anxiety. We are going to look at it in a whole new way. What we've been told about it, that we're broken, something's wrong with us is ludicrous and we're going to get into it. It's a quick read. It's a short, simple book. And you're going to put it down and go. And we'll be all right. Yes.

And that's the goal. Oh, that's the goal. That to me, it sounds like exactly what we need in this country right now because everyone is feeling anxiety in some way, shape or fashion. We've had to change the way we go to church. We've had to change the way that we hang out with family and hang out with friends. Change has been thrust upon us. And so we've got to learn how to deal with this and be able to walk through it confidently.

But here's the key to getting that information. And John's book, Winds are going to be available November 7th, I think, coming up.

So you had a chance to hear about it and be ready so you can click on that button when it comes. But it's time for us to be able to go forward and move forward in this life. And the best way to do that is get the right people around you, get the right information in your life. Change can happen and go do it. That's right. You've got to do it right. That's right. All right. November 7th, this book coming out.

Keep your eyes open, people. It's going to be amazing. All right. We're going back to the phones. Next up, I've got Ann. And how are you?

I'm doing well, thank you. Well, you're welcome. How can we help you today? I'm not a question of home equity. Line of credit as a private citizen. Once 45000, 801 forty five thousand seven hundred. Türk is a 20 year Hilliker, three years in the 4.5 percent variable. And the time growth rate is 45, 75 years and three years in. And it's a six point twenty five fixed. I didn't know if I should refinance that into my first mortgage.

I could. Right now I have to go to 26, my house at a three point five percent interest rate, and they are offering me a be 80 percent. So much higher, but it would be three Kagin closing cost at a three percent rate. Yeah, that just completely increases my way of my 15 year in my 20 years. You OK?

OK, well, hold on. The refinance that you're looking at, you're looking at a 15 year fixed rate at 20 year low. Oh yes.

I would go. OK, hold up. Back up a second. What's your household income.

I make this 100 a month.

OK, and do you have any other debt outside of this home? No. OK, do you have an impact, do you think. What's that? Besides that, you are kind of OK.

So no other debt, no car loans, no credit cards? No. OK, and do you have an emergency fund in place? No. OK, so OK. So looking at this, you said how much is this property worth? A 400, 400000, and you only have these two mortgages, right? Your first mortgage and the Heela, correct?

Well, and then a private mortgage or like I put in the pool. So it's like a private exchange.

OK, you have you put a third mortgage, you've got a third mortgage. So right now, look at this. Hold on. Because you're using the bank's terminology, which is all about marketing. We're going to get real here. He lost a home equity line of credit is a mortgage because it's a deed that's recorded on your home. So you have a first mortgage of two hundred twenty six thousand. You've got the second mortgage, the yield at 45 eight, and your third mortgage is your pool at forty five thousand seven hundred.

And that's just a big ol credit card, right, Chris? The Helike. Yes, it's a revolving door, which means that you make payments, you have the opportunity to borrow on it. Again, I would call and look at getting a 15 year fixed rate mortgage on all three of these. And you're right, combining the three of these, you're going to be looking at a 15 year. But at three and a half percent, like right now, you're Helike is at five and a quarter variable, which as soon as they burp or hiccup in the in D.C., in the LIBOR goes up, your payments are going to go up and then you've got six point two five on that that pool loan of yours.

So, yes, I would reach out to your lender or reach out to Churchill Mortgage, begin to sit down and look at the reify on this. Mortgage rates right now are hovering in the two nine two point eight. And on the 15 year you look at this, you start adding up your payments on it. Yes, it's going to be a little bit more, but we're going to get out of debt. We're not letting this just hang around.

And Chris, I want somebody to have a spiritual moment literally before they take the consolidation route, though. This consolidation is a drug. Yes. Right. Yes. Suddenly you're going to feel freer. You still owe the same money. That's right. Right. That doesn't give you more liberty to go pull out another thing or another thing. You know, I've been down the consolidation drug route. Well, think about it.

Look at the word con salination. It's a con, right?

So if you've got debt out there and again, we're talking about this mortgage situation, but if you've got credit card debt, we got to teach people the difference, Don, between secured and nonsecure debt. Right. Secured debt is a mortgage, a car loan, a boat loan. They're going to get that. But if you don't pay that stuff, you're going to get it unsecured as a credit card, a personal loan. There's no collateral on these debts.

So the last thing you want to do is to to pay off a bunch of unsecured debt and secure it with your largest monetary asset, your mortgage. That's right. Yeah. You don't want to do that. So I'm telling people, if you got credit card debt and personal loans and car loans, leave them bad boys separate, list them out small. It's the biggest. It's the debt snowball approach we talk about and you pay minimum payments on all the other debts and you throw all extra money at the little one.

Because what we found, John, is that getting out of debt is not about math. It's about momentum.

That's right. But and has experienced some things in her life that have caused her to go to a dark room and say, I'm going take a second mortgage out. And then she took a third mortgage. That's right.

So this is somebody who struggles with either massive events or with self-control or with both know you're right.

Right. And the thing of it isn't that I'm telling you, one of the most brilliant pieces of marketing in the financial world and the last 25 years is the home equity line of credit because it is a credit card that had an imaginary number.

That's right. And it's attached to your house. And here's the deal. Nobody thinks it's a mortgage because it's called a home ahee lock. And people go, I'll take a headlock. If they said it was a second mortgage, some people would take off running. But because it sounds cool and hip, people would take it. And they didn't realize that, oh, my gosh, this is like a giant, as you said, a giant credit card attached to my house.

And it's against an imaginary number, that imaginary number being what we all think the house is worth right now.

Yes.

And that can shift and change up or down or sideways. And so we're taking out a a credit card, a giant one.

We would never go get a visa with forty five thousand dollars.

No, don't do that. That's right. But we will put it on the hillock. That's right. Against an imaginary number that they will take your home. Yeah.

Right now. And if you don't make that payment, that is exactly what will happen. So if you're out there and you're going, wait a minute, I don't know if we signed a mortgage on this or not. Get your loan documents, call your bank, get a copy of your loan documents. As you can imagine, there's no swimming pool that's worth six and a quarter percent. We got to learn how to slow down. And I actually just recorded on my show.

I gave people some tips to how do you make finished twenty twenty strong financially and kick off the year 2021. And I was telling people you've got to say no to sales. Right. Black Friday is not going to be in person this year. It's going to be a. And so you could be clicking on some buttons to get boxes showing up to a whole lot of stupid, and they'll do a lot or a whole lot of financial damage to yourself.

So you got to be smart.

Oh, that's one hour down like that. And I do, too. I do, too. Look at me fired up. I'm sweating and I'm ready to roll. I want to thank Kelly Daniel, associate producer, Ben Hill, producer. Thank you, John, for hanging out. We had fun, buddy. Yes, sir. Hey, you all this has been the Dave Ramsey Show.

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