This is the Ramsey Call of the Day, part of the Ramsey Network. Stephen has decided to join us. He's in Cleveland, Ohio. Stephen, welcome to the show.
Hi, so I'll be right to it. Currently, I'm 26 years old. I'm debt-free, except for my house. I'm currently making 70k a year and contributing 50% to my raw 401k.
I'm engaged, I have to be married in October. If you're not currently in school, get a master's. I graduated about 120k in student loans. I've been paying her housing and living expenses for the last few years, so a little house floor, as you can say.
I'd get closer to this wedding October. I'm a little worried about having the funds ready for our wedding. I guess I'm wondering if it's okay to back off or stop. We're talking about dating staff back for the wedding.
So you've been paying her housing bills for how long? Yes, just under two years now. Why? I didn't want her to end up taking more in two months.
Man, well, that is a bold move, for sure, a strange one, to be paying someone's housing bills and you're not married to. What happens if it doesn't work out? Would you have any resentment for paying all the bills? Well, we've been together for eight years now, so I guess we're pretty confident.
Okay. Well, I'll focus on your question here about how to pay for this wedding. Is it all on you guys to pay? Have you guys had the conversations with family?
Yeah, so right now I probably am, maybe, seven or eight short of my goal. If I was to pause retirement, I'm pretty sure I'd be there by the time the wedding comes. Yeah. I mean, I'm okay saving for something like this and pausing retirement for a short period of time, especially how old are you?
You're 26. You're 26. So you're going to be okay pausing this thing for a few months to make sure that we're set for the wedding. Do you guys have a wedding budget currently?
Yeah. Okay. How much of the total? The total is around 30k.
We've got 10 for her parents and I got the rest. Okay. So 20k is on you and you have, how much save right now? Just under 14.
Okay. So you only have six to go then? Yep. Could you continue to invest and still have the margin to save up and pay for this?
It doesn't look like it. I've been trying to see what else we've got back on. Is she working? No, she's not.
Is she able to? No, she's going for a med school thing and she's not allowed to work for her program. Hmm. Well, this is a tough situation because I don't like the idea of you continuing to pay her housing bills even until the wedding.
And I don't really want you to pause investing. I'm okay with it because I don't want you to go and debt for the wedding. So if this is the only other option, then this is where we're at. How much longer is she going to be in that school?
I should graduate in August only by my month. Okay. And then she'll have income. Yep.
Okay. Well, my wedding parameters are this. Don't ever spend more than you have in cash, regardless of who's paying for it. And there is no Ramsey parameter for wedding spending, but my personal parameter would be not to spend more than a third of your gross income for paying for yourself.
So in your case, you're putting 20 grand in and you make 70. So you're not outrageous there. And you've already had the conversations. Do you have a checking account that is just for the wedding budget?
Yes. Okay. Great. And you have exactly what you need in that wedding budget and you're not going to go over.
Yep. Okay. I feel good about this plan, then. I don't love it.
It's not my favorite plan. But if this is where you're at and you're getting married and you said October, and it's currently marked. So we've got time. But I would try to work extra.
I'd try to save so that you don't have to pause retirement or you can get back to it real quick. I would try to hunker down, get this money saved up, keep it aside and that savings account for the wedding, and then continue investing. Okay. I guess one other question with that is I do have a motorcycle that's paid for.
That's worth about 10k. I mean, I'd easily sell that and I would be clear for the wedding. I love that plan. Are you willing to sell it?
Is it going to hurt you emotional? A little bit. But you have another vehicle. I do.
Yeah. I get two vehicles actually. Oh, wow. You have two other vehicles.
Yep. You just love things with motors, don't you? I do. What does the value of all those add up to?
All the vehicles you have, anything with the motor in it? Probably right on 50k. Yeah. That's too much vehicle when you're making 70.
We say no more than 50% should be tied up in things with motors in it. So, yes, I'm selling that motorcycle and congratulations. You now have a wedding fund and you get to keep investing. Gotcha.
That hurt, didn't it? I can feel it in your voice. You didn't want to hear that. But hey, you brought it up, man.
I didn't know you got a motorcycle. You were keeping secrets for me. I didn't know we had options. There's more motorcycles in the world.
Exactly. And once you get rid of her debt, I would, you know what I would do? Once you become debt free, you pay off the 120,000 student loans. Make it a gift to yourself to save up and get yourself a motorcycle.
If she's okay with it. I mean, you know, I'm too scared. I don't even run out of the back one of those things behind James, our producer. But you're a brave man.
Congrats on the wedding. Can I give you a gift? Sure. Okay.
I'm going to send you a one-year membership to Ramsey Plus. And I want you and her fiance to go through all the financial piece, university videos, get on every dollar budget. You can make a separate one for the wedding and have one for your life once you combine your incomes, once you're married. But you can go through the videos now and get on the same page and start to make a plan for how we're going to pay off these student loans.
Sounds lovely. Awesome. I'll have Austin pick up and he will get you that Ramsey Plus membership. Thanks for the call.
Congrats on the impending marriage. Thanks for tuning in to the Ramsey Call of the Day. Check out all of our podcast, just search Ramsey Network on Apple Podcast, Spotify, or wherever you listen. Go wherever you listen.