This is the Ramsey Call of the Day part of the Ramsey Network today's question comes from Samuel in Georgia Yes, the same as we just bought a three hundred and thirty thousand dollar house knowing it needed some updating We got quotes for a two hundred thousand dollar remodel if we did an edition and updated every inch of the house inside and out We have a hundred and eighty thousand dollars in the bank currently But have a family member willing to give us a fifty thousand dollar loan interest free our income is roughly six eight hundred dollars a month If we budget and don't spend money on anything on anything outside of bills and groceries are expenses would be around five thousand a month I don't feel good about spending that much, but just curious what you guys think about an interest free loan helping make it a dream home What a nice little spin there at the end Samuel okay just short answer team. Oh no. No, I mean like I understand math Mathematically, oh, there's no interest. This is like a good deal But when you involve debt period into your life it changes the equation and then on top of that It's not a bank you're borrowing from some big building.
It's a family member, which honestly feels like it feels worse Oh, dude every every Every dinner every Sunday afternoon dinner every time that he's gonna look over and be like first He took my daughter and now he's fifty thousand dollars or you're gonna buy a new rake He's gonna be like oh hi. I thought you were gonna pay my money But you're owed me some money and it's like yeah, he's your bank then whoever the family the bridge I got a new opportunity to take a job a new job. I mean you stay where you are I just mind you get you You do to chest and even like knowledge be no strings attached. You just do your thing it rarely don't don't don't don't don't don't don't So so I would not say most of I were you guys you're saying it would be an edition and updating every inch house to pull back the bit I mean I would say okay, let's just do the downstairs for now Maybe one or two bathrooms upstairs, which won't be 200,000 Maybe a hundred thousand you have that in the bank go ahead and start it and do a little bit at a time or wait And save up until you guys have the cash which is gonna be months from now and do it then but no I would not take the loan I would go with the speed of cash when you guys have the cash to do it and just I'd say simmer down Samuel, you know, I feel like our There's this lifestyle this lifestyle level that everyone expects to have and it's not necessary and we Sacrifice our mental health John our sleep at night Our peace to go and just acquire stuff in the name of just having that new house And when you drain your account when you go into debt for this kind of stuff It's not worth the trade off just to have stuff and then you're stressed and you're having to go to a job that you hate to pay the bills I'm all of it.
So we were just talking off here And Winston was in here earlier and Winston is I've been talking to him about a particular truck that I was into And he likes the same kind of truck and we're talking about it talking about it And my wife and I made an agreement that if we had a financial milestone at Christmas that the next big purchase for us would be Give me a car finally. I got my car. It's not great And I found myself getting insane like I was waking up in the morning I was scrolling the things and I was emailing guys Hey, can you see if you can find this and I was checking with Winston He's like to just be a grown grown up and get there I and then I realized if this fervor is the absolute worst time to buy anything So I just stopped and he just came I go say you get the truck and I'm just waiting at least a month probably to maybe even four or five And when I when I did that everything went whoo my angst anxiety left It just it was just it was just chill out. I'm only gonna make purchases Especially like this of a new truck, which I evidently they're pressed in platinum and gold or so Or a hundred or two hundred thousand dollar remodel only do that when you can just pop right down and go right to sleep Yes, yes, yeah, if you owe your father-in-law or mother-in-law or dad or uncle money I'm telling you're not gonna sleep man.
No matter how good they say the interest is you're just not yeah That's right. That's right. So so Samuel. Nope move at the speed of cash.
Take your time. You're okay. Everything's fine There's no rush. No one's making you do this either.
You know I know we need to move on but I really like what you just said about do one bathroom at a time or just do the downstairs I bet you as you get into this project what you want to do to that house will change Yeah, and it will morph and oh y'all did this so what if we and if you do it as you if you pay for project by project? They're gonna tell you it'd be way cheaper if you just did all right now fine Then I'll find somebody else who will meet this man They'll take care of it, but I like the idea of doing it project by project instead of just getting mowed down your whole house and Basically, yeah, and if you said you know, I had a million bucks kind of take 200 and go I go Oh, you know, I mean like it's all it's about the math. It's the money here and so the ratios. Yeah, it's just not worth it We're right now Thanks for tuning in to the Ramsey call of the day to check out all of our podcast just search Ramsey network on Apple podcast Spotify or wherever you listen