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From the headquarters of Ramsey Solutions, broadcasting for the pods moving in storage studios, it's the Ramsey show where we help people

Build wealth, do work that they love and create actual amazing relationships

George Camel Ramsey personality is my co-host today open phones at triple eight eight two five five two two five

Annie and spoken Washington starts this hour. Hi Annie. Welcome to the Ramsey show. Hi. Thank you so much for taking my call. Sure. What's up? Yeah, so my husband and I have a slight

Disagreement and it should the question is should we pair mortgage off and empty our savings account or

Keep it low for about 150,000 and then do a few home improvements and that would be a new foundation

Windows and H-Fact systems. Okay, so how much is in savings? Right now we have 608,000 in savings. Okay, and the balance on the mortgage is what?

600,000. Okay, you said 608,000. Correct. It would be this about a month and a half to two months worth of emergency fund if we pay off our mortgage.

You have an emergency fund in addition to the 608. No, the 8000 at the 8000 is a month and a half. I got you. Okay. Correct. Yeah. Yeah. And your household income is what?

At 200 and three bucks with about 200 and 3000 and then also we do have we're just signing a 10 year lease for some farm ground and that will bring in 30,000 a year for 10 years.

Okay, so you have a quarter million dollar income and we do not tell people to pay off debt and leave less than three months of expenses. Okay.

So let's fast forward from today a couple of months and now you've got 600 and 30,000. Okay.

That day I would pay off my mortgage. Okay. And then I'm going to use this fabulous income and the extra $6,000 a month to build up some little buckets of money to do these renovations that we want to do.

Okay. My husband said that's what you'd say but. Well, I'm fairly predictable. I said it over and over and over. I said the same thing all the time.

So, I mean, you can. Yeah. So here's the thing. The other thing you can do it. It'll help you with this. Annie to process it helps me when you actually put numbers to it and then you put.

How many months it's going to take me to do this? So I'm going to go ahead and get like a bid on the heat and air. I'm going to get a bid on the foundation. I'm going to get a bid on what was the other thing?

Windows. Windows. Okay. And then I'm going to say, okay, the first one of these we're going to do is I'll make it up windows. Okay. And the bid is $30,000. Okay.

Without a house payment and a quarter of a million dollar income, then how quick do I have $30,000 in addition to my emergency fund? Oh, just a couple months. I mean.

Got it. Yeah. And then how quick do I have, you know, the how make it up $20,000 for the heat and air? If that's the second one, I don't care which ones first I'm making this up. Okay. But my point is prioritize and put actual dollars to it. And then back into how many months and what you're going to discover is probably by this time next year, you've got a fully renovated paid for house. Yeah. Perfect. Yeah.

So we're really not discussing, oh, we're never going to get around to this. No, lay it out. Yeah. Game planet. Develop a detailed strategy. And then that if I'm in your shoes, because you're the one not wanting to pay it off, you're the one wanting to do the renovations first. And that's okay. But if I'm you, then having that game plan going, it's going to be here in a minute. Anyway, I can deal with that. Yeah.

Yeah. It helps me to release it. Yeah. We're talking about a month or two before you guys have, you know, 625 in that account. And now we can clear the mortgage payment, which frees up the mortgage payment on top of still having an emergency fund there. So it's not enough time to even argue about. Yeah, it's you're going to be there. And.

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