"You Make $400,000 And Owe $700 On A Mattress?"

[Music] If your private student loans are in default, you're not out of options. Go to yrefi.com/ramsey. Uh called in to see if it was appropriate or what should I do first before purchasing a higherend time piece. >> Cool. What's the watch? uh looking at brand various brands the typical Rolex Panerai Omega I haven't really narrowed it down but kind of feel guilty >> you're thinking about a budget of what 10 20 R >> uh 10 10ish >> yeah would be right it's my first one guilty spending that much money on my myself so >> I don't I don't feel guilty spending it on you if you've got it or you do you have any debt >> we've got uh the house a car one of the cars is screen clear and then no other debt besides that. Well, I got to fess up. We We owe 700 bucks on a mattress that I could pay off right now. >> How much you don't No, you don't need to buy a $10,000 watch. You have a car debt. >> Okay. >> You're broke. >> What do you make? >> Uh this year I will eclipse 400. >> Good God. >> Commission. What do you do? >> You know, anywhere. I'm in the mortgage industry. How long have you been in the mortgage industry? >> 19 years. >> Wow. >> How old are you, Jake? >> I'm 41. >> Okay. >> So, why pray till you made 400 grand? Do you have a car debt? >> I don't know. I could pay it off, too. >> Good. You have the money in the bank to pay it off? >> Yeah. >> How much money have you got in the bank? >> We are approaching 1.2 in total cash assets. Okay. >> You don't I mean this you're not talking you're not talking about retirement. >> Uh 6 or 700,000 of that's retirement. The rest rest is post tax 529s stocks bonds cash just various >> well it's ludicrous to borrow money on a mattress. I can't imagine what you were smoking that caused that. And it's almost as dumb to buy borrow money on a car when you have the money sitting in the bank to write a check and pay for it. >> So I mean you did call the Ramsay show. You know that, right? >> I'm aware. I'm aware. I knew you were going to beat me up a little bit. >> All right. So yeah, I would go buy the watch as soon as I pay to celebrate paying off the car and the thing and to celebrate my de newfound debt freedom that I'm never going to do this again because I make too stinking much money and I have too stinking much money to be buying things with debt. But no, you if you make 400 grand and you're debtree except your home and you have a half a million dollar in non or 700,000 in non-retirement cash assets laying around, you can do a $10,000 watch. Absolutely. How much is left on the mortgage, Jake? >> Uh, we owe 290 and the house is worth 750. >> Why don't you go ahead and pay it off? >> Get the house paid off. >> Go ahead and pay it off, too. >> That scares me. So, hear me out. >> Why does that scare you? >> Because he's a mortgage. >> 400 every year. It's been a good year. >> Yeah. Unbelievable year. >> Up and down, you know. But it would scare me le I mean, if I had no income, I would rather have no mortgage. Just the feeling of having the cash. >> Yeah, it's a feeling and it's a you're in the mortgage business. I'm trying to take you into paying a mortgage off. I get that. But, you know, but yeah, I if I woke up in your shoes, sir, I would be a 100% debtree and wearing a $10,000 watch by the end of the month. >> Okay. >> Car, house, mattress, god, and everything. That's where I That's exactly where I would be. And then I'd be on a written game plan. And then you're making a crap ton of money and you just >> fast because here's the other thing. If you're just a tiny bit afraid about having less cash assets, it'll motivate your butt to do more deals. >> Yeah. >> Well, and with that income, which I know you don't get that every year, Jake, but like you can replenish the cash very fast. >> Yeah. You you built it pretty quick. So, >> yeah, >> you've done a really really good job. Um, I I will tell you in general, you don't need to feel guilty when you can spend the money and it's a small percentage of your world. And in general, that's the answer to your question. Yes. But I gave you a lot of detail to go around that of all the things I would do. But you did ask and you did call this show. So that that's exactly what I do. You've done very very well. Don't I I I ran into this cuz you're a great salesman and salesman sometimes run into what I did. I tried to out earn my stupidity for a while. Just lay it in place a system. Work the stinking system, man. And then go bank a pile of money and apply it to the system. You're doing so good. Why refi refinances defaulted private student loans for struggling borrowers. Learn more at y rey.com/ramsey.