brought to you by a sander insurance compare rates from top-term life insurance companies in seconds at sander dot com i recently stumbled across your show i've watched her babies that's explained a couple of times and uh... got me on fire to really nailed on my finances so i'm on baby step two i've got a few uh... got a few loans to pay off and i've got some savings i'm thinking of taking those savings and wiping out those debts moving on to baby step three awesome uh... but my dad and my mother-in-law both independently uh suggested that i put the money towards my mortgage instead and i want to see you you're married do they do you work for them no i went to them for counsel i just wanted to get their advice oh okay so you ask them to vote on this okay yes well i mean you've got to decide what you think is wise what they said or what we say okay i think they're vice-of-stupid i think they mean well yeah but it's dumb okay we have led more people out of debt into millionaire net worth than any other organization operating in america today and neither one of them work for me all right so i mean it's this process works in other words it's a proven process if you follow it all the way through now you follow it in order to that's another thing is some people go out of order and you're not going to see the progress as quickly yeah jet if you paid off all of your debt today how much of your income would you save per month that would not be going out in payments not about five hundred dollars a month okay okay and how much is your debt total on uh...
twelve and a thousand okay all right and so if you if you put um a thousand dollars away you're gonna put twelve thousand back in one year agreed how much can you do how much can you put on your baby step three if you don't have any debt to build your emergency fund backup because you're using your savings to clear your debt how much how much a month can you put back into savings with no debt payments i'm thinking right around a thousand dollars a month okay i want you to crank that up to about fifteen hundred and uh you know get on beans and rice rice and beans and let's get that emergency fund rebuilt i need that for your sake i want you to have what's your household income about seventy five day okay cool yeah i want you to have a twenty grand set aside for emergency grandma's rainy day fund and how much have you got in there today in savings right now i've got about twenty two and a half okay so you're gonna take it down to ten by writing a check for twelve and a half correct that's right yep and then you got to raise it back up to twenty and if you do that fifteen hundred a month you're done in like seven months and that would be my plan if i'm you and then get on through and let's get the investing going and start paying off the house and maybe step four five and six but um get that consumer debt cleared out Jeff from a mathematical and emotional standpoint when you have no payments it frees you up yeah now the one vote that does count is your wife's and so the two of you need to be in agreement on that before you move forward but that's what we would tell both of you to do so and again your parents mean well but their plans don't if anyone depends on your income you need affordable term life never cash value insurance visit zander.com today for quotes