"She Needs To Get Her Head Wrapped Around How Dumb This Is"

[Music] brought to you by the Every Dollar app. Start budgeting for free today. >> So, I have um I'm in Baby Step 2 right now. I read Total Money Makeover, you know, last year. Changed my perspective on finances and things. So, um you know, changing things around and my wife is I would say 80% on board with the uh with the plan. Um but we have two debts left. We basically paid off about $100,000 this past year of >> car notes, you know, things around the house, student loans, >> and our last two debts are her student loans and uh a 401k loan that we took out um before I knew not to do that. Um how much are those down payment on a house? So, the herd school loan debt is about 6,500 and the other one is uh $40,000. And I know that there's supposed to be smallest debt to largest debt. Um, but in this situation, my wife doesn't want to pay off her student loans first because we get a $50 statement from her company, which is basically quote unquote, you know, free money. And so, she keep that going as long as >> I'm sorry, what was that? >> How much did you get? $50 per month. >> $50 >> to keep a student loan around. >> That's $600 a year. >> That means 10 years to pay it off. >> No, no, no, no. So, we're paying over >> I know. If you want to keep getting the $50 and that's your rationale, then you're going to pay it off at $600 a year. $50 a month, which is $6,000 for 10 years, >> right? So, you know, my thing is like $50 is nothing. We should just pay it off right now. >> Yeah, cuz interest is back, you know, >> right? And then student loans, you know, I can't really seem to budge on this cuz she's just like, well, it's kind of, you know, it's just kind of like free money income. Pay that off last. >> How about if I How about if I give her a nickel? What would she do for that? Meet Every Dollar Budgeters Christy and Steve. They used to fight about money. >> I'm the spender. >> I'm definitely the saver. >> Now that they budget with Every Dollar, they're on the same page. >> Money is definitely one thing we do not ever fight about. >> Having the budget gave me the permission to spend. >> Knowing that the money is in each category, it just allowed us to work together better. >> Now, that's what we call a win-win. >> Now, we just have to pick paint colors. >> We can't help you with that. Every dollar, create your free account today. How about if I How about if I give her a nickel? What will she do for that? >> I know, right? Um, so, uh, our income is just like our base income is just shy of 300,000. >> $300,000? Wait a minute. Wait a minute. Wait a minute. >> 300,000. And this woman is keeping a $6,500 student loan for $50. That is That's you going That's Chick-fil-A. What are you saying? >> Yeah. Well, that's what I'm saying. You know it. >> She Oh, wow. >> Yeah, she doesn't want to budge on this. So, >> well, no, don't we have to stop though, okay? We have to get past stupid. This is stupid. >> Okay, I don't care if she wants to budge. She needs to get her head wrapped around the mathematics of how dumb her but not budging is. >> You've paid off a $100,000. >> It's ridiculous. You're not going to keep this loan long enough to get much $50 because even if you turn around and pay off the 40, you've already paid off 100. If you pay off the 40 in the next 6 months, you're going to pay off the six right after that. I assume you're not going to keep it forever. Or is she want to keep it like it's a pet? >> No. So, she wants to pay off this uh 401k loan first. >> I know. So, 6 months. What's the difference? >> She she does want it just to ride it out basically. Um which would be about two years. >> What's the >> No, it does. It's not two years, honey. It's 10 years. Y'all need to work on your math skills. No, we're paying we're paying over we're paying our 337 right now and then we get $50 on top of that. >> I got that. But the $50 you're writing it out for would take 10 years to get you. You know, you're you're working your butts off for 200 bucks here. >> Yeah. I mean, yeah, I agree with you guys. >> Just as I'm >> No, we're not going to ride this out, honey. This is We're not keeping this thing around like it's a pet. We are getting out of debt. >> You have to use We're there's no rationality. >> I'm just a gasast that if she was getting $500 a month. I mean, you know, and you want to keep it for a year and let that thing pay it off. Okay, we'll talk about flipping it that way. >> $50. >> But this is just this is like >> that's nothing. >> I'm I I'm so confused as to how much value she is putting on this. >> There's something else to it cuz it doesn't not making $300,000. >> She's so proud of her company. She's so proud of her company for doing this. I don't know. >> It's It's It's hilarious though. Sad. Very sad. Very sad. Very funny. Very sad. Create your free every dollar budget today. The simplest way to budget for your