Should I Borrow Money From My Family? (Hear Me Out)

Brought to you by the Everydollar App. Start budgeting for free today. Should I go into debt with my father to double my income? So a little bit... How long you been listening to this show? A little over a year and me and my wife are on baby step four now. So what are we going to say? I know, but it's tough because... So here's a little bit of backstory. Me and my dad work together and he owns semi trucks and I drive this truck currently. It's worth about $64,000 and he told me that he would sell it to me on interest-free payments of $2,000 a month for one year and that would double my income. So I'm at a bit of a crossroads. Why do you have to buy it from him? Can you not just rent it or use it? Well, that's what I do now, but, you know, I would go from, I make about 30% of every load right now to 72% if I actually own the truck myself. Gotcha. Why? Because he pays for it probably. Yeah. Yeah. Who's booking your loads? Him. Is he going to continue to after you buy the truck? Yeah, that's why he gets that 28%. So I would make... So he gets it for booking it or for owning it? Well, right now I make 30%, so he gets that 70% for booking and owning the truck. If I own the truck, I would get 72% and then he would... Oh, 28% for booking it. I see. Yeah. And using his trailer and stuff like that. Yeah. Sounds like a no-brainer till the thing blows. Yeah, that's the other thing. Sounds like a no-brainer until diesel doubles because the straight of her muse is shut down. It sounds like a no, a no-brainer until Trump decides to bomb somebody else and screw up the whole supply. It sounds like a no-brainer until... So you're projecting a perfect future and that's the only way this makes sense. And perfect futures don't exist in business. Yeah. I mean, that's definitely fair, but I... No, that's the truth. That's not just fair. That's the world you live in. The world I live in. Now the question is whether you're going to admit it or not. Yeah, no. Don't do it. No, don't do this. This is crazy. Crazier than crud. Don't do it. Your dad owns the truck free and clear. Yes. I have a counter proposal. Okay. I will rent it from you for $2,000 a month. That goes towards ownership. Well, that's essentially what he would be doing. No, this is essentially different because if things go sideways, he still owns the truck and you don't. Hey, what's up guys? It's Jade. Listen, my husband and I drive used vehicles and we really do plan on keeping those running for a long time. So we trust Christian Brothers Automotive to take care of them. Their team is honest. Their shops are super clean. And what I love is they don't try to upsell us on things that we don't need. I personally feel really confident walking into Christian Brothers because I know that no one's going to try to take advantage of me or scare me into unneeded repairs. Christian Brothers gets it. So schedule a service today at cbac.com slash Ramsey and get 10% off your visit. That's up to a $250 value. See stores for details. He still owns the truck and you don't. That's different if the dadgum engine blows, honey. And guess what? Engines blow in trucks. Brakes go bad in trucks. Transmissions go out in trucks. Y'all wear them out, man. You run the road with them. You've not accounted for any of those things in this scenario. So if you want to rent his truck and him sell it to you for a dollar, after you've accumulated the, it's $2,000 a month for till it got to what? How many thousand 64,000 was it? Well, that's what it's worth. But he said he would give it to me for 24. So one year of 2000 off the top. So I'll rent it to you for 2000. I'll rent it for $2,000 a month for one year. And you sell it to me for a dollar. Same thing to him, right? Yeah, fair enough. But the, but the truck is his. It's not your right until that part, until the purchase price. And if the world falls apart, you don't know your dad, $24,000. Yeah. That was the kind of second part of my question is, uh, us being on baby step four. Um, I mean, I, I have the money to buy it free and clear with that 24,000, but basically it would leave me with really nothing left. Oh, so that's your emergency fund. Yeah, right. But how much do you make? How much do you make a month, Andrew? Uh, about 6,000. But if I bought it, it would be around 12. Are you married? Yes. What does she make? Um, she's a part-time nurse. She makes about 3000 months. And you've got kids? Uh, yes. Three. Okay. And what do you drive during the day? Uh, like as my personal vehicle, uh, paid off truck. Worth what? Uh, probably about 10,000. Okay. Uh, reduce your emergency fund to 10,000. Sell your truck and pay your dad cash for the truck. I would do that. Okay. And then you're not going to do that. All of a sudden this idea doesn't sound so good. I just sold his truck. Yeah. But if he doubles his income, like what he's saying, it's worth it. 10,000 bucks, 10,000 bucks in two months worth it. Until I sold his truck, drive a $500 truck. Cause you're not driving it anyway. You're driving a semi honey and go pay cash for this sucker. Oh, but now, now we got down to it. Say borrowing is now a convenience in this discussion. Not the only way to expedite the idea. So you can either rent the truck for one year and buy it for a dollar. Uh, but I wouldn't, I'd pay cash for it and start making my money now. And I'd sell your truck for three months. I'll get you a $500 hoopty. Yeah. Whatever. Well, I mean, for one month and get you a $5,000 truck. I don't care. It's not going to be much different. The voice tone changed. Create your free, every dollar budget today. The simplest way to budget for your life.