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Brought to you by the EveryDollar app. Start budgeting for free today. Question. My wife and I have been working through the baby steps and we both work remotely from home. But recently, my company provided me with a company vehicle that I used to travel. I do have to go out to locations. And then we have two personal vehicles. One of them is paid for and then the other one is my largest debt left in my snowball. And I just was wondering if it would be wise since we don't drive as much to get rid of to sell that vehicle to pay off a huge, you know, to get rid of approximately half my debt. And then just use our own personal vehicle and then my company vehicle as needed if it comes up. Yeah. So there's three cars. One's paid off. One has a note and one's the company vehicle. Correct. So the one that has the note, what do you owe on it and what's it worth? Oh, 23,000 and it's worth approximately 28. Nice. So we get a little something on that action, which means, yeah, since you don't need another car to purchase, you could use that 5,000 in profits to throw at your debts. Absolutely. So not only do you free up a payment and get rid of half your debt, you also start to knock out even more debt instantly. Yeah. Why not do that deal? I'm doing that all day. What do you have? You have approximately 2,500 left on a credit card, 3,600 on a student loan and 14,000 on a personal loan. Okay. So with the 5K, obviously the credit cards are done and a good portion of the student loan is done. Any other cash laying around? A small amount of savings. How much? We've been working through 15,000. 15,000? A small amount. That's all your debts. I don't know where you come from. That's a lot of money from my neighborhood. I'm very conservative. Help us understand what you said you're working through the baby steps. You're working through Ryan's steps right now because you know the baby steps would say, let's use 14 of that 15 and knock out this debt, which looks oddly like that personal loan, which means oddly enough, you could be debt free in like a month. If you do all this. I could. You're just nervous, making a big move and trade my savings. How conservative are you considering the fact you went 40 grand into debt? Yeah. That's not a very conservative. You can't be fiscally conservative while going into debt. I understand. You're right. You're absolutely right. I say to people all the time, Ryan, that it has to be balanced reasoning. You can't say, well, I'm very conservative and I avoid risk when it's time to hold on to the savings because where was that reasoning when it was time to go into debt? And so that's where we have to question and go, okay, what are we really saying here? What we're really saying here is we just like the feeling of being able to say, I have $15,000 in the bank. It's kind of like, that's really what it is. And once you realize that and go, okay, suddenly the logic that I had kind of falls apart when we look at this thing as a whole, now you just have to ask yourself simply, do I want to be debt free or not? And how quickly do I truly want this to happen? Let me show you how quickly you'll get back to peace. So how much money do you guys make a year? $190. You make $190 grand. And what are your total debt payments add up to every month right now? Right now they add up to approximately $1,300 per month. Okay. So lay this out with me. Let's say you completely debt free in a month because you followed all the advice we just gave you. You make $190 grand plus you freed up another $1,300 a month, which means you freed up $15 grand a year plus all of the margin from your income, which doesn't have to go to debt payments. How quickly could you get 15 grand back in that savings account? Three months. Three months. Three months. So if you play this whole thing out in about three months, you're back to where you are, except you're completely debt free with this savings. No. You're right. Sometimes you just got here from somebody else. That's right. Yeah. Good. I mean. This is such a solvable problem. It makes you excited for you. dollar budget today, the simplest way to budget for your life.
