[Music] brought to you by chm a biblically based alternative to health insurance learn more at chministries.org budget so this is probably a really stupid question but I'm a tight wad so I got to ask it anyways okay so uh I'm in baby step 7 my wife and I and we're 27 and the Really the problem with my question is I feel like I just have too much my net worth wrapped up in my house but I I just recently bought a Mercedes S Class maybe a day or two ago um and just emotionally to me
feels like I spent way too much money on something that goes down in value and it just eats me up thinking about what I could put that money in that would go up in value um and so my question is just should I take this stupid car back well let's talk about the what you spent on it uh so after taxes and fees and all that you know Jun it was about 35 Grand all right and what's your household income uh the last two years I've averaged about 250 well there's some ratios for you that
puts it in perspective how much do you have tied up in everything with wheels and Motors in your in your house right now uh probably about 45 Grand counting the Mercedes yeah you're driving an older car for the other car Dave would have said you should have bought a nicer car you're not doing anything my cars both both of my cars outside of the Mercedes are probably worth 10 grand total understand like ratio wise it sounds okay but emotionally it just doesn't it doesn't feel right to write a check when I could for something that
could go down something that goes down in value when I could put that in you know something like some mutual funds retirement whatever all right let me ask you a quick question Landon you seem like a very even keeled level-headed person so this may be difficult for you to answer but have you ever acted out of emotion before and realized that your emotion was wrong uh sure all right so your emotion is wrong on this Mercedes well your emotion's wrong I mean like intellectually I get that like I do get that but oh wait a
second wait wait wait wait wait wait you started off and said it was all emotional and I I just destroyed the emotional argument on your behalf by the way and now you want to go intellectual well what I mean is like my NE so basically all in all them are worth about 750 and about 550 of that is in my house okay and so it just feels like cash Cashwise I feel like 35 Grand is Rich out of the cash that I have available is what I mean it's not Landon there are people who have
a negative net worth who bought more expensive cars than you today and so just know that in the grand scheme of life it's going to be okay and here's the deal when you're young naturally more of your house is going to make up your net worth it might be 50 60 70 80% when you're young but over time compound growth with your investments will catch up and so by the time you retire your house will probably be a third of your net worth and you're right that car will be in an impound somewhere 30 years
from now and that's okay stuff is stuff so you wouldn't you wouldn't say go buy $10,000 on you know Toyota Camry or something you're in your live like no one else era you said you have a paid for house right you're in baby step seven yeah then what's the point of money you're scared to death over nothing there's three things you can do with money Landon you can give it save it spend it and if you just save it you're going to drive yourself crazy if you just spend it you're going to end up broke
and if you just give it you'll be a great philanthropist but unable to retire and so it's wise to do all three and what you're experiencing is something I experien as well which is needing to flex this muscle of spending after you've been so aggressive toward a financial goal of paying off the house or investing and so this is something I struggled with when I wrote when I stroke a check for my wife's last car we bought her it hurt my soul I've never spent that much money on anything outside of a house I remember
that and Ken remembers I was talking to him about it but over time you you'll look back 10 years from now and go remember when I was stressed out about buying a $35,000 car I'm sure Dave Ramsey had the same experience yeah now Dave Dave's cars are worth more than my house and so it's okay to have nice stuff as long as you understand that it's a toy that goes down in value it doesn't make or break you money just magnifies who you are and it sounds like you are right on track my friend what
year what year is that Mercedes and how many miles 2018 it's about 80 thou 85,000 yeah it's totally fine I I drive a used Mercedes as well if you take good care of it it'll last forever is a little bit more expensive to keep up yes but you've got it I mean listen you've been shoting all over yourself and you need to stop keyword should just for those listening who weren't sure what Ken just said I know exactly what I said and we all tend to should he said either should but I'm using it very
purposefully my therapist helps me this it's called double on Tandra stop shoting on yourself I should have done this and I should have done that that's the idea and and so uh you can sit there play that game and talk yourself into another $5,000 car sounds like you got two $5,000 cars or somewhere in that range so you can do whatever you want to do you can take the car back and if that allows you to sleep better but I think you're not addressing what's really going on and what's going on George this is more
your lane than mine although I understand it I just think there's a deep rooted shame in this I'm not allowed to have this something this nice that's what I fear I think it's shame I think he's got shame over this and I think you got to confront that did you grow up with money Landon uh yeah my maybe my parents had some money for sure so what was the wow what what you know we say behavior is a language what how do the way they handled money influence you well I'll tell you what honestly what
I think it is is honestly that I've just been so aggressive since I was 18 because I mean you know just doing this since I was 18 and you know doing this about marriage that it almost feels like you know I need to stay aggressive you know what I mean and so you know we just fought and clawed so hard to pay our house off in the whole deal yeah what does your uh your spouse think about oh she legitimately we went up to the dealership and she said buy whatever you want I'm tired and
went home good for her it's a good woman right there that's a good woman by the way let me let me just ask you this how long youve been familiar with Dave and and his teachings and what we do here since I was probably 12 all right I want you to finish a sentence for me okay you ready sure sure live like no one else so that later you can live like no one else all right then now swap that with drive drive like no one else Drive the crappy car so later you drive really
hard you worked really hard to get to a point where you can buy a $35,000 bins and by the way your wife has worked really hard too and she deserves to go on date night with you in a car that you don't have to Pedal like Fred [Laughter] Flintstone hey there he is is did you hear that laugh that's the first time on this entire call I felt like we got the real you who wasn't so uptight well what's so funny about that is that's not far off from what I'm driving outside of the vins
I know I know I don't car this guy he thinks do I do I come across really dumb cuz when you tell me you got two cars worth $10,000 those are Fred Flintstone cars I didn't have to do a lot of deduction my man and so she deserves better she deserves better you if you want to drive a piece of if you want to drive a turd on Wheels then that's up to you but she doesn't deserve that can we agree it's Valentine's Day for heaven's sakes I agree I age all right then relax you
worked really hard it is impossible to for me George to conceive of a scenario where Landon does something dumb with money yeah you're I mean you are spot on our parameters here it is if all the things with wheels Motors and your life adds up to more than half of your annual income you're off track that's simply too much you are not even close to that and again like ratios Dave buying a nice car is like me buying a biscuit and so you have to understand the ratios look different when you have a very high
income your net Worth's going to continually grow you're 27 you got another 30 40 years of working for you and investing to build wealth and so in the meantime you have to do something called enjoying life and I'm scared cuz you're kind of like me I'm wired to go but if we didn't eat this month we could invest that in a good grow stock mutual fund it could make 12% over it you can't live your life like that got to let go chm isn't health insurance it's a health cost sharing Ministry check it out for
yourself at chministries.org budget
