"You're Stuck In A Broke-Person Mindset

[Music] brought to you by the Every Dollar app. Start budgeting for free today. >> Well, we are we have a lot of debt and we just kind of shifted our thinking the last couple months. We've been Dave Ramsey fans our whole marriage. We got out of $30,000 of debt 10 years ago, but then started going down the slippery slope. My husband's about to be 40. I'm 37 and we have three young kids at home. Um we have two rental properties. ones on the market right now in the Nashville area. Uh we owe 170 on each and they're worth about 310 to 320. We're hoping to get one at a time. My question is what to do with the profits? >> Are are you just selling one or both? >> We are planning on selling both but one at a time because they're in the same neighborhood and they would compete with each other. >> Ooh. Fight. Y'all should pick one. You get one and he gets the other and y'all should compete. What caused you guys living in Savannah to get two properties in Nashville? >> We used to live in Murphreey'sboro and my husband went to MTSU. >> Oh, so you became landlords by default. >> Yeah. >> Not by choice. >> We worked the system. We had the VA loan. We lived in it a year, moved. Lived in a year and moved. So, we thought this was going to be a great source of income over the years. It's been great, but we're kind of I'm wanting to get out of it because I manage it primarily and we went into debt turning one into a furnish rental last year and renovating it. So, we have about $24,000 on a credit card left from that. We've paid about half of it off. It used to be over 45, but we still have 24 left and we want to get rid of that. Um, we have 31,000. We have 31,000 on a car loan and we have our primary mortgage which is 292 left. And then we also have business loans. So my husband moved here and he started a land clearing business and so we have two loans with the business. We're in our third year. >> How much business debt? >> We have an SBA loan of uh that's 10 10 and a half uh variable. It's at 170 right now. And then a machine loan at 90,000. >> Goodness gracious. >> Holy smokes. So you're in the go into the government for almost 200 grand and you're on a depreciating asset to the tune of 90 grand. >> Yeah. But they make us a lot of money. We're in our third year. Last year we he grossed 330,000. So he's doing really well. He's a sole proprietor. Really? >> If he's doing really well, why aren't you guys doing really well? >> Yeah. You're in crippling credit card debt, bragging about how much money this business makes. >> And you owe $200,000 to the government. >> So, I'm if I'm tracking correctly, you owe 315,000 from this consumer and business debt. >> Does that sound right? >> The consumer business debt, the 170 and the 90, >> credit card debt, the car loan, the business debt. >> Yeah. Plus the mortgages on the rentals. That's why they're on they're for sale right now. We want it and we want to cash out. really want to start fresh. >> Sure. No, we got you. We got you. We're just We're >> walk away if you sell both rentals, you'll maybe walk away with like $240,000 profit, >> I guess. Yeah, about that. And then, you know, capital gains and all the >> Okay. >> the capital gains and stuff. >> So, let's say there's 200 grand. What would I do with 200 grand? >> Yeah. >> I would throw it at the consumer debt and the business debt using the debt snowball because that business debt is your debt. You guys personally signed the dotted line there. So there's no like LLC that owes that. It's just you guys. >> Yeah. So they throw it at that. >> Yeah. >> Me personally, I'd George, tell me if I'm wrong, I would want to get the government off my back ASAP. >> Is that wrong? Or do you want to pay off the >> Yeah. I mean, if you get snowballed it, most of it most of that debt is going to be gone and then it'll leave you with the that Is there one gigantic debt that 170,000? Yeah, it covered a machine and just the startup capital and then the 90 grand is for an excavator. >> Well, you you clear the rentals, you clear a bunch of this debt. It's going to free up a whole bunch of income on top of that. And then I think you also you guys have been spending like you're in Congress, it sounds like >> Well, we don't we don't The 24 was just for renovations. We're not like spending >> I know, but if he if he made 300 grand where that money go >> well, he invested 10 grand in the renovations. So, that went really quick. He >> Okay, this is boy math. He can justify any expense cuz it's an investment. You can't argue with that. >> Y >> Okay. >> And then he um put 10 grand on the car, but we did the rest on a loan. >> And then we he put about 50 grand in investments. >> Okay. I think what's happened is you guys are stuck in a broke person mindset of how much down, how much per month, how much down, how much per month, can I afford the payment? Can I afford the payment? You're also stuck in in uh >> in person in >> social media entrepreneur uh hell. >> This guy's one Tik Tok away from imploding your family. >> Well, but I mean it's like we're going to do rental houses so we can get passive income. I'm going to get some machines and do some excavator land movement stuff. Yeah. I'm also going to do some investments. I'm also You see what I'm saying? Like all these are all just like you can just go down Instagram to these different businesses, >> right? We're ready to move on though 40 and I think his eyes have been opened and he's he's ready. >> Awesome. My big fear is these es excavator type jobs are are boom and bust. They have years where they just absolutely crush and then they've got years where the phone doesn't ring as much and you really got to get out there and hustle. And so while you're while it's raining for y'all, man, >> God almighty, pay off everything. I I know that's where y'all are headed, but >> here's the math. You guys will be completely debtree except for your personal mortgage within a year if you do this stuff. >> You throw 200 grand at the 315, you're down to 115. Following >> 15. >> You throw 10 grand a month at that debt, it's gone in 12 months. >> Yeah. Yeah. >> That's the actual math. Now, you can argue, well, but that's how that would work. You guys could be completely debtree in that baby step six realm with just that 292 mortgage left 12 months from now. >> That's you and your husband shaking hands. No more of these quote unquote investments. >> We're going to pause on putting any money away. Oh, you got one. What is it? >> Is he over there whispering to you? Sweet nothing. >> The Oh, yeah. No, he's here listening in. He's on board. But um I have to be honest that the invest we have eight in a Roths, but the 50 was in crypto. Of course. >> And I'm really trying to get him to just release that because if you see the number 50 in crypto, about 50 in credit card and car debt, like I just want to wipe it clean. >> Yes. >> And my deal was if we paid off everything and we started at 15% that he could have a small percentage to do crypto if we could really get in a stronger position. That was kind of my deal. I told him >> I will be impressed if he offloads the crypto cuz what's going to happen is one year from now they're going to go those Ramsay guys told me to sell my crypto and I could have doubled it babe to a hundred we could have we could have been bajillion that's what's going to happen and uh >> and there's grandparents out there with garages full of Beanie Babies who had the exact same thing like yeah dude no listen beanie babies are going to crush all right cool >> yeah it's a gamble yeah >> so and it's fine if you want to use some fun money for crypto do that, but not when you're in crippling debt in every corner. And so, I would just get out of this. Let's start from scratch. Let's pay off the house. Let's have an actual nest egg in retirement accounts. And then we can go, hey, we're so unbelievably wealthy, we can just throw money into these things for fun with no debt and not worry about it and not need it to grow and 10x. >> Let's 10x the 10x to a,000x. >> I don't know. >> I get it. I'm on it. >> That's it. So, you know what this means? No more social media. >> Hey, look over to your husband. I want to hear him. Are you in? Totally. >> Oh, yeah. I'm I'm 110% and that's why we're calling. >> I love it. Okay. Okay. If you're all in 110%, that means you're more than 100, which means you definitely do crypto math. That means I want you all the crypto's gone by the end of the week and you're debt free, which is dope. And in your consumer stuff, and then you just sell your houses, your business free, and then you're off to the races. I like this plan. >> Yeah, that sounds like a good plan to me. I mean, I'm I'm ready to hit sell, >> dude. That's so awesome. I'm proud of you, man. Hey, can I also say this? It's hard to be in that place, isn't it? Cuz you have been working really hard, haven't you? >> It is. And I gave up my career as a pilot to, you know, be home with my family and started this business. And, you know, it it's been it's been a good tradeoff, but I do want to be completely free of owing anybody anything. my man. My man, my man. Hang on the line. We're going to hook you up with uh the premium version of Every Dollar for a year to get you guys put a little gas in your jet engine here um to get y'all off to the races here. Proud of you. Sell it all. Be free of all of it and then you're going to be building wealth like you can't imagine. Create your free every dollar budget today. The simplest way to budget for your