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[Music] james is with us in san diego hi james welcome to the dave ramsey show hey guys how are you guys doing great how can we help hey thank you for taking the call yeah i'm relatively new to uh to the family i started binge watching all of your shows since covet happened um so i'm trying to identify kind of where i would stand and everything um we have a baby coming in in march yeah welcome welcome to the family by the way thank you thank you we got married january last year and uh recently in the middle of covet moved from new york city to california started a new job as a children's pastor here um and pretty much i'm just trying to identify what priorities should be obviously i know we need to save for the baby um we're on baby step one currently well actually baby step two because we have a thousand but we do have um a loan a car loan we bought a second um second-hand car when we got here um so it wasn't new but it was definitely i still took out an 18 000 loan for it um and i guess i'm just trying to figure out okay what priority should i be focusing on between now and i guess next year really yeah and the baby well a rule of thumb james is the fact that you guys are expecting a baby things shift a little bit here so we usually always say you're gazelle intense you're paying off your debt that's where you guys would be but because the baby is coming we're actually gonna pause baby step two and just pile up money because you guys just have that thousand dollar in savings and so just anything you'd be paying at the at the debt you want to stay current on all of your debt but not paying extra on it and pile up some savings and then once baby comes and mom and baby are safe and good to go then you can apply all that money besides the thousand dollars onto your debt so how much debt do you guys have you have the eighteen thousand dollar car loan just the eighteen yeah that's right okay yeah we do have a little bit on some cards from this month but it will be paid off um tomorrow when i get paid okay so we're going to tell you and then um tonight tonight we're going to teach you to have a thing called plastic surgery where you chop up the cards and get on a debit card system where you quit you quit spending money you don't have and yeah jump onto uh every dollar or jump into ramsey plus and start the free trial and get the every dollar budgeting app and it'll help you put together your budget where you can make your money behave monthly that way and so what is your household income right now uh we're on 70 000 okay so if you were to just guess because you haven't done your budget i can tell which is fine you're just just joining the family but uh if you were to guess how much money a month can you pile up if you don't pay any extra on debt and your only goal was to build your savings um well actually i've done a brief budget i think at currently we have about a thousand dollars excess a month um from every yep paying off all the bills the necessary bills and then they're alone and when's the baby come james march march okay yeah and i had one more thing my mom so i i also came into an inheritance this year um my late uncle passed and i was in his will so he got 19 000 from that i obviously tied the tides off of that and then but my mom's been giving me money uh two times like five thousand dollars every couple months to go towards that down payment but she said specifically she wanted that for that do i just leave that there until we're at a place to use that or that's fine just set it over a separate savings account and just pretend like it's not there because she's you know she stipulated how that gets to be used so we have to honor that um not what i normally would do don't care for that idea but it's okay you're there now so so you have 19 000 and i'm gonna tell you that when you really start leaning in on your budget and you and your wife are working on it really really tight and you get you get more intense and more focused you're gonna do more than a thousand let's pretend for example purposes for five months between now and march you did two thousand well that would be ten thousand dollars you already have nineteen so that would put you at twenty nine thousand dollars in savings when baby comes i actually have twenty six currently in the in the housing one no i'm talking about the housing the housing's separate yeah wait is the inheritance for the house the inheritance i put into the housing one no um no your inheritance is getting ready to pay your car off after baby comes okay so okay at the moment it's older than the same one but i i yeah i would have only your mom's money in the house fund gotcha because that's the money that she has dictated the give what the gift is for the inheritance money is yours to do with as you please yeah and so what we're gonna have is we're gonna have your inheritance money house money separate from mom your inheritance money plus whatever you can save between now and baby so you're gonna have 25 to 30 000 in that account when the baby comes that's gonna feel pretty good isn't it yeah yeah a lot of comfort with a new baby a new job in a new land called california and a new marriage and all this stuff so there's a lot of money here to give you comfort for a short period of time anyway now baby comes home mama comes home we write a check and pay off the car that's going to leave you somewhere in the neighborhood of ten thousand dollars yes sir for your baby step three emergency fund and so then you can start to save in addition to that towards your home if you want to we call that baby step 3b and that's how we would execute the baby step plans in your situation so but rachel's exactly right excuse me what we've got to do is you push pause on your baby steps you do not do the baby steps when the baby's on the way or when you've got some other thing that's on the horizon that's a big deal like you know you're going to lose your job in two months they've announced it yep you know you push pause and you pile up cash to get ready for that then when you get the other side of the situation like baby comes or you get the new job or whatever then you clean out the account all the way down to a thousand in your case you're not gonna need to clean it all the way out because you're gonna have more and you're probably gonna have almost have your baby step three completed it's very cool you're in a really good position yeah and i think some people who are new to the program because i know like he said like during quarantine a lot of people just binge watch youtube and stuff but even though the money is in the account even just from the inheritance and he has enough money to pay off the car today you still press pause because of the big life event so even though it's there still press pause it'll be fine stay current on the car and then again in a few months in march they can pay it off yeah and just just because the last thing you want to do is have eight thousand dollars in your account and baby comes and you have a nine thousand dollar issue yeah and then you gotta worry about money and baby that's right that's right our money and mommy and so we don't we just don't need that this is supposed to be a blessed time an exciting time a fun time and when you take money stress off the table it allows that to occur that way the joy can flow i'm not worried about anything else so fun first babies are so fun