Stop Living in Financial Chaos

SPEAKER_1 (0:05)

Brought to you by the EveryDollar app. Start budgeting for free today.

George Kamel (0:14)

Normal is broke and common sense is weird. So we're here to help you transform your life. From the Ramsey Network and the FAIRWINDS Credit Union studio, this is The Ramsey Show. I'm George Kamel, joined by my ride or die, Dr. John Delony, and we're taking your calls at 888-825-5225.

John, are you doing all right? I need a moment.

John Delony (0:36)

There's a lot going on. We're good though, man. Let's dance.

George Kamel (0:38)

This should be a fun show.

John Delony (0:39)

I'm not your ride or die. I would probably show up.

George Kamel (0:42)

I said it facetiously.

John Delony (0:44)

Okay.

George Kamel (0:44)

That's a $10 word.

John Delony (0:45)

That was a big word. Thank you.

George Kamel (0:46)

I went to college.

John Delony (0:47)

Look at you using Chad GBT.

George Kamel (0:48)

Don't need two PhDs to know that one.

John Delony (0:50)

You went to Alabama College, so let's don't stretch on that.

George Kamel (0:52)

Okay, roll tide. Adam's in Green Bay, Wisconsin. What's going on, Adam?

SPEAKER_6 (0:57)

Hey, guys. Good afternoon.

SPEAKER_7 (0:59)

Thanks for having me on the show today. It's a pleasure being on and looking forward to it.

George Kamel (1:05)

Absolutely.

SPEAKER_7 (1:05)

Got a question for you.

So, within about 12 months of being completely debt-free, which is great. You have been sacrificing for about 15 years. Wow. I met my wife, yeah, probably 12 years ago, and we've just had our nose down to the grindstone. We've been doing the right things, following the show and doing the Baby Steps. The last thing we got to do is pay off the mortgage. So, if we're working hard enough on it, we'll probably have it paid off in about 12 to maybe 14, 16 months, something like that.

SPEAKER_6 (1:42)

Awesome.

SPEAKER_7 (1:44)

I don't know, this is gonna be a little maybe pep rally or for a reassurance check or what, but I'm getting a little nervous because now I'm able to forecast what the next year looks like. And it's looking like I'm gonna have about an extra 700 bucks per month to use after I free up that mortgage.

SPEAKER_6 (2:06)

What's the mortgage payment?

SPEAKER_7 (2:08)

Well, the mortgage payment is actually, thankfully, I bought the house quite some time ago. Mortgage payment is $600 every two weeks.

George Kamel (2:18)

So $1,200 a month?

SPEAKER_7 (2:20)

Yeah, about $1,200 a month, but that's escrow with my property taxes and homeowners insurance included.

George Kamel (2:27)

So principle and interest side, you'll save $700 a month is what you're saying?

SPEAKER_7 (2:31)

Correct.

George Kamel (2:32)

Okay. I was like, man, there should be more margin with a paid off house. Do you guys have any extra margin now? Outside of the extra, because you're paying extra on the mortgage, right?

SPEAKER_7 (2:41)

Yeah, we are. We are paying extra. Yep. So we're living this lifestyle now where we got some extra. We're already saving $400. And this is after everything is all the baby steps are covered. Everything's paid off. We're doing the right things.

We're kind of spreading ourselves thin on purpose just to make sure 401Ks and IRAs and all that. You're doing it right.

George Kamel (3:05)

There's not just like a huge pile of money sitting in the bank account every month. You already have a plan for it.

SPEAKER_7 (3:11)

Correct.

George Kamel (3:12)

So you're investing 15 percent. You're putting some money away for college if you have kids and you're throwing extra at the mortgage.

SPEAKER_7 (3:18)

Yes, exactly.

George Kamel (3:19)

What's your question?

SPEAKER_7 (3:20)

Yep. We're right on track. Well, the question is, you know, the light at the end of the tunnel is looking dimmer than expected.

And I don't know if I'm just need I need to maybe take a breath and just realize I am doing the right things and everything. But $700 extra a month is not going to move the needle a whole lot. It's going to give us some breathing room.

However, we've been sacrificing so heavily that we've neglected some things around the house. You know, flooring needs to be fixed or, you know, we may need to we're looking at buying a shed to put some stuff in. And, you know, these things are going to take quite a bit of time to stave up and pay cash for. So, once I start adding all this stuff up in my head, I'm like, oh boy, we're going to be dead by the time we...

George Kamel (4:07)

By the time you've actually done all the things you need to do as an adult?