What’s Really Important

Hollywood celebrity once scoffed at the idea that money can't buy happiness say look at the smile on my face time Rob West, although still wealthy. A few years later that Dr. was divorced and battling substance abuse, and probably not smiling anymore. So what does bring happiness and joy just to talk about that today it's on your calls at 800-525-7000 800-525-7000. This is moneywise live biblical wisdom for your financial journey but are guest our Dayton's founder of compass, finances, God's way, author of several books on applicable financial principles and as many of you know, the former host of this very radio program is also a great friend and mentor to me personally.

Howard welcome back great to be with you just a delight Howard were to take a look at a chapter in your book, your money counts today, specifically a chapter you've titled what's really important that all go out on a limb and say I'm thinking that's probably not money as I think you're right about that money will never bring true happiness to me. Just think about King Solomon.

The guy was the author of much of Proverbs, Ecclesiastes, he had an annual income. That's more than yours, Rob, about �25 million limit of the palace.

It took 13 years to build the own 40,000 stalls of horses.

He sat on the ivory throne overlaid with gold. Obviously, Solomon was in a position to know whether money could really bring happiness and he just doesn't hesitate to say that riches do not bring true happiness in Ecclesiastes 5 he writes, he who loves money, shall never have enough. The foolishness of thinking that wealth brings happiness. The more you have, the more you spend right up to the limits of your income or isn't that true, and we know that's true because it comes right out of God's word and yet Howard, that's certainly not what the world believes is no, it really is that most people believe that you can buy happiness.

Rob according to surveys. This is mine polling no matter what income level Americans say they need about 40% more than they make. To be truly satisfied and I find myself battling sometimes falling into that if only trap you know.

If only I had that new cook part I really be satisfied if only I had that house I'd be content will the list is endless, and the Bible offers a sharp contrast to this attitude is somebody said money will buy a bed, but not sleep books but not pralines food but not an appetite house but not a home medicine but not wealth the crucifix, but not a savior boy that's powerful. Are you made a statement to moment ago. The more you have, the more you spend right up to the limits of your income, and boy have I seen this play out. You know, the tendency is, as our income grows our spending grows with it, and that's always going to be the case unless we protest to the contrary.

Talk about that phenomenon that happens to so many families. Yeah, I think it's really important to establish as early as possible. The limits of your lifestyle. I was in a small groups to study last night in one of the couples who were just doing great when it comes to their business. Jesus ER doctor he's making a lot of money but they decided early in their marriage that this was going to be the limit they set an amount that we will spend that for our lifestyle and so they're giving 40% of their income away because they set that lifestyle that And I think it's really important for those who have a lot in particular had to set a lifestyle And to do it really is early in the game as possible. Yeah well it's okay in that lifestyle Relates to your expenses.

What are you going to spend on a monthly basis, Howard. There's also an opportunity to set a financial finish line for your balance sheet as well on accumulation right this couple did that in they actually have pin living on 20% of their income giving 40 saving 40 and they're just about done on the saving side.

I think you're absolutely right, Rockwell, and that just creates an opportunity to give lavishly will continue to talk about this just around the corner what's really important. How should we view money in this God always bless his people financially that and much more.

There guest Howard Dayton. This is moneywise live biblical wisdom for your financial journey back to moneywise live what's really important. Were looking at a chapter of the great book your money counts from Howard Dayton. He joins us today to talk about money and its role in our lives. In Howard we were talking, just before the break, about how money can't buy happiness and that comes from an authority. King Solomon, who is arguably the wealthiest man who's ever lived, and he made that point, it just doesn't happen yet we can take it to the opposite extreme, and if we understand this idea we can say well perhaps money itself then is evil in some way talk about that. I understand that but money is not evil. According to the Lord. It's morally neutral. Money can be used for goods such as supporting missionaries or building hospitals can also be used for evil such as financing, illegal drugs and pornography that Rob just listened to first Timothy six verse 10, the love of money is a root of all sorts of evil, the Bible doesn't condemn money itself.

Only the misuse of it or the wrong attitude toward it.

Keep in mind that in the Old Testament. Many of the godless people were among the wealthiest of the day Job, Abraham, David, were all wealthy and yet they didn't allow wealth to interfere with their relationship with the Lord. Still, having been said, Scripture warns that riches are dangerous. They can destroy a spiritually fruitful life.

Jesus says in Matthew 13 verse 22 and the one on whom the seed was sown among the thorns, this is the man who hears the word and the worry of the world and the deceitfulness of riches, choke the word, and it becomes unfruitful. Also, it's really easy for well to turn us away from the Lord. Deuteronomy 31 verse 20 tells us when I bring them into the land flowing with milk and honey, and they have eaten and are satisfied to become prosperous, then they will turn to other gods and serve them and spurn me and break my covenant is so rob it just must be human nature to cling to the Lord when it's obvious that only he can provide our needs but once they have a lot people often take the Lord for granted because they no longer think they have as much need for them so true, and in my experience, I know it has been yours as well that when we have access when we have a surplus that generosity really is the only way to break that grip of money over our lives. If we allow it to do so is not right absolutely, there's nothing else I mean having God's perspective of money and then practically just to be radical in generosity is the best anecdote for your taking the Lord for granted Howard. Another misconception among believers is that godly people will always prosper financially how you address that you Rob. I think Christians often brace one of two extremes that some say if you're really spiritual. You must be poor because wealth in a close relationship with Christ can't coexist. The opposite extreme is the belief that if a Christian has enough faith he or she will always prosper. Now it's interesting in the Old Testament. The Lord did extend the reward of abundance to the children of Israel when they were obedient and he threatened them with poverty. As a consequence of disobedience. Deuteronomy 30 tells us.

I have set before you life and prosperity, and death and adversity in that I command you to love the Lord your God, to walk in his ways and to keep his commandments at the Lord your God may bless you. The Bible doesn't say that a godly person must live in poverty. The godly person may have material resources what it's exactly right. So at that point it really comes down to being found faithful with what God and trust to each of us rightly recognize he may give more to summoned less to others and it's really about ultimately being held to account and being found faithful.

You're exactly right Rob, well said what about the other extreme. Howard, the so-called prosperity gospel.

Yeah, some believers feel that all Christians who really have faith will always prosper and frankly, this is also an error in me. Just think about Joseph is the classic example of the faithful person who experience both prosperity and poverty. He was born into a prosperous family and sold into slavery by his jealous brothers. He became a household slave for Potter for Potter for promoted Joseph to head the household and later Joseph made really the righteous decision not to commit adultery with Potiphar's wife and what happened, he was thrown into prison for he cares. But in God's timing. Joseph was elevated to the position of prime minister of Egypt. So a godly person living a righteous life can experience both prosperity or poverty working in their lives, yet is some believers though may ask the question why then does the Lord allow me not to be blessed financially if somebody were to ask you that Howard how might you respond yet. Rob I think there are three reasons.

First, the person may be violating a scriptural principle. For example, they may be giving generously, but acting dishonestly and they may be honest but not working hard, they may be completely added that, but not giving. Second, there's the building of godly character.

I think Joseph's character was being built during his trials and example of the Lord, developing character in a people before prospering them is found in Deuteronomy 8 in the wilderness he fed you manner which your fathers did not know that he might humble you that he might test you to do good for you in the end. Otherwise, you may say in your heart my power in the strength of my hand made me this wealth and the third reason why godly people aren't blessed financially. We just have to look at the mystery of God's sovereignty. Hebrews 11 list people who try up miraculously by exercising their faith in the living God. But if you look in verse 36. The writer directs her attention to godly people who live by faith gain God's approval yet experience poverty and when you think about Rob, it's the Lord ultimately chooses how much to entrust to each person and sometimes we simply can't understand or even explain his decisions, that's exactly right. And Howard to some this. The good news is that God's word has some instructions for those of us who are materially rich and by the way most of us in America would fall into that category. So let's finish today with how we should manage money according to God's word, yes, the Lord knew that the folks who have a lot would really face serious spiritual danger so he offers three instructions. First, be humble. First Timothy six tells us instruct those who are rich in this present world not to be conceded, then put no confidence in your assets. If same passage you not fix your hope on the uncertainty of riches, but on God and third give generously instruct them to do good to be rich in good works to be generous and ready to share. So I think those are the three primary things that when a person has a lot they need to focus on God's word teaches the true joy is based in our relationship with Christ. Here's what we want to do each day on this broadcast. We want to understand God's heart as it relates to our money because we know there's 2300 versus contoured to deal with money and possessions, and the reason for that is because there's so much to say about our money in our hearts and ultimately our walk with the Lord folks we already have in abundance before the first dollar and we can look to God's word for instruction. Howard, thank you for these important reminders. Today my friend great being with you, Rob. Bless you our days, that our guest today.

You can find out more accompanists one.org that's compass the number one.org. Be right back to back to moneywise live with us today Rob West Coast taking your calls and questions here in just a moment with X against lines open. We love to hear from you. Here's the number 800-525-7000. That's 800-525-7000 what's on your mind today, financially speaking, of course, will apply biblical principles to your question and see if we can help you get some answers to move forward with confidence just a moment, will head their first let me just invite you to consider giving to moneywise media here at year end. Now more than ever we could use your financial support as we close out this year and plan for next year. Here's what you may not know this ministry is entirely listener supported.

So what we do here on the airwaves in the moneywise app with her coaches and online it's all as a result of your gifts tax-deductible. Of course, if you had to moneywise live.org and click the donate button you can get them quickly and securely online, you'll find an address to mail a year-end gift for you can never find her phone number there and there be somebody who would be delighted to help you over the telephone again before 1231 will be counted for this year and it will go a long way to continuing our work. Thanks in advance for any support you can give again moneywise live.org just click the donate button hard phone lines are open 800-525-7000 will begin today in Sandusky, Ohio hi Jeff, I can help user how you doing great. Quick question. Is it wise to purchase cancer insurance. That's a good question Jeff. You many more employers are now offering this type of the critical illness insurance at group rates and that can be attractive if it's offered. That way, but apart from that it's not necessarily the best thing for everyone here is why these plans tend to be pretty specific in terms of what the cover, so you have to really look at the fine print for any exclusions, critical illness premiums tend to increase more than traditional insurance. As you age so you need to understand what the premium is to start with, but then how it's can increase over time. They don't offer the same protections that traditional health plans do under the affordable care act, people often overestimate their chances of developing cancer in which this would specifically be for so you'll typically save money by getting a traditional health insurance plan with adequate coverage for critical illnesses rather than a specific an add-on plan and I would also look at you trying to save cost as it relates to covering your healthcare. You can always explore a medical cost sharing ministry as an alternative ill Christian healthcare ministries would be a great example. It's a ministry were very familiar with here because some of our team members at moneywise media actually have used CHN for many many many years and found it just to be a wonderful solution for that you find them online@chministries.org but I think at the end of the day, Jeff. It's not my favorites policy from a cost-benefit standpoint unless it's made available really inexpensively through a group plan okay yeah that's what this one. It is through insurance through work $45 a month or family.

I didn't know if it was like to get it or not yet. I said I think you just got a look at your budget and just determine your whether that makes sense to me and you were talking $600 a year ill and what specifically would that cover and you know how much of a risk is that to you and then also look at your traditional health insurance just to see you know what gaps might exist that this would need to cover because it could be that you've got adequate coverage already, so I think it's you gonna start with your budget and understand the policy and then compare that to what added benefit you get over and above what you already have many cases it just doesn't make sense but I appreciate your call today. Hope that was helpful to you in thanks for listening 800-525-7000 is a number to call Lorraine Ohio hi Christina, how can help you. Thank you for taking my call.

So yeah, I married 11 years I have been a Christian and a Christian finances in the breadwinner in her home, but when it comes to the financial issues he just refuses to talk about and, in any sense of the word. I asked how I hate bacon. I can like you make it go away worried about it to build to plead that he doesn't have to beg we have no saving application Unit.

We have a median income. He just refuses to talk to about finances and I'm just completely lost and confused about well.

Christine obviously no money issues are typically symptomatic of other issues. You know, they reveal what's going on in our hearts were replaced or trusted.

It's really, generally, when there's money challenges. It's not about the money. Is there something else there and underneath it that I think you need to begin to explore because clearly God's design for marriage and what is oneness in every sense of the word, and that includes our finances, which means even though we may have one bookkeeper one person who's more prone to financial matters.

One person who's in a more prone to the details and taking care of making sure the bills are paid on time and keeping the budget organize which by the way, doesn't have to be the person if there is only one income doesn't have to be the one earning that income that has to do with more you.

How is God wired you. What is your personality or you more hands on her hands off you know some people are more directional in wanting to understand where things are going where others are more detailed will the person is to be the bookkeeper is the more detailed hands-on person and that may in fact be you but the fact that he's resistant to talk about it at your request ill. Perhaps there's something else going on there either. He's embarrassed about how it's been handled in the past and even if there is not in a financial infidelity going on, which would be where there's things that are being hidden decisions that are being made that being incurred without your knowledge expenses taking place perhaps depleting any savings. Those issues would be real. Those are serious minutes. Marital financial infidelity.

It could be that it's not that it could be that it's just embarrassed that you're not further along or you know that you know it's tough to make ends meet every month, but the bottom line is, until this is out in the open where you can communicate together about it here and I can build making progress so I pray first and then I'd have an honest sit down with him just to say listen we have got to be able to do this together and if we can talk about why that is that point. It's not about the finances and then 1/3 party could help like one of our money, we can take breaks down the line. We'll talk a bit more.

This is moneywise five phone lines (one for you.

We'd love to hear from you related to your calls and questions on anything but the number is 800-525-7000. It's 800-525-7000 just before the break we were talking to Christina about the breakdown in communication related to money in her marriage. You know that my friend Dr. Chante Feld, Honda conducted a study with her husband, Jeff. She's a Harvard trained and she's a researcher and looked into this area of money and marriage, and you won't be surprised that she concluded in her study that 72% of married couples have conflict in this area communicating about money and that you're really the primary drivers of overcoming that were twofold. Number one, that there be a cushion the financial cushion and what that means is that it's not about necessarily what your income is. It's about the fact that you're living below your income so there's margin or a cushion there and that cushion was an essential ingredient in overcoming marital financial conflict. The second one well he will be surprised to know it was communication even if there's not a cushion. And even if the communication is difficult, communicating about money regularly as husband and wife, was absolutely essential in terms of being able to move forward together and experiencing all that God has for you. So I would challenge you. Perhaps this is the month to begin a monthly or even a weekly money date where you look at what's working, what's not working. What changes are coming up with course corrections do we need to make and how are we doing in light of pursuing our goals that hopefully align with our values. Where is God taking us and how can money be used as a tool to accomplish that. Here's the bottom line we all have different personalities as a relates to money. As I said to Christina. Some of us wanted handle money more directionally versus on a detailed basis.

We just want to know where we heading at a high level.

Others want to be pretty detailed. We want to know down to the dollars and cents in pennies of each account. Well, you need to construct your conversations around how each of you want to see that and handle money and someone to be hands-off in their every day or every couple of days in your accounts. Looking at things others know you're more hands off you want to see it monthly or quarterly what I think once we understand our money personalities. It gives us the ability to then communicate in a way that's consistent with that. So nobody's overwhelmed and nobody's frustrated.

Perhaps one of our moneywise coaches can help with that. By the way, you can connect with a coach when you become a pro subscriber to moneywise. That will get you access to the Pro subscription of the moneywise app and you can connect with our coaches for help anytime you need it you can do that quickly and easily right now with a discounted offer available@moneywise.org/Pro we love free to check that out this month discounted offer to become a moneywise pro subscriber again moneywise.org/TR oh I would get some phone lines open 800-525-7000 as a number to call 800-525-7000 before we head back to the phones we get an email or two in these are from folks that have sent an email into questions@moneywise.org we try to take a couple of these each day on the air, this first one comes from Esther and Esther is simply saying I have a lot of credit cards with high interest rates, and even though I faithfully pay the minimum each month. I feel overwhelmed I need guidance on the effective way.

The most effective way to eliminate these as quickly as I can and Esther would be delighted to help with that. You know when you have high interest credit cards that needs to become the focus in terms of your priorities in paying them off up the first thing I would do is make sure you have an emergency fund, but with high interest credit card debt.

I wouldn't try to solve for one month or three months expenses. Certainly not six months. I'd set a goal of $1500 in savings emergency savings that's going to give you some cushion not as much as you ultimately need, but something so when the unexpected comes you not adding to those credit cards, but as soon as you get that 1500 saved. Let's put every extra dollar of margin or surplus toward paying down those credit cards beyond the minimum payments now one of the thing. Esther, I would suggest is that you look into credit counseling, debt management that's going to allow you to get the interest rates down through a nonprofit credit counseling agency. The accounts will be closed to pay one fixed monthly payment. But here's the benefit through debt management on average will pay off these credit cards 80% faster so I would check with our friends@christiancreditcounselors.org is a first step and perhaps that'll get you well on the road to play paying these off once and for all and Esther. We appreciate your email. Sorry. Let's head back to the phones 800-525-7000. Lynette is in Colville, Washington, go right ahead. Thank you for taking my call concerning an inheritance from my mother and the inheritance is coming from two different sources. The first portion is coming from any annuity that she had in our tax preparer told us that we do have to my husband and I we have to pay income tax on that money. But now I will be receiving another check soon that will come from her checking and savings account and architect Parker says that we did not have to pay income tax on that still so I'm wondering is that income has to be included as part of that our income for well were trying to get onto the affordable care act for health insurance and that's that's can it I would take the advice Lynette of your tax preparer your professional and the only thing that's causing me some question which might prompt you to go back and asked for clarification is if this is truly an inheritance. Generally, errors do not pay inheritance taxes, the estate does that.

If there do before dispersing the funds now. If it's an asset that is past you know normally there's a step up in basis, which just means the cost basis is what determines whether or not capital gains are paid on the sale of the asset and so typically there's a step up in basis to the date of death. Establishing a new cost basis and that if it sold after that.

If it sold for a profit over and above that stepped up cost basis than you would pay capital gains on the difference, but generally not as income for tax purposes, and you know that's true for Washington state inheritance taxes as well. So I would just ask for clarification. Again, I don't see all the details. I don't know, the legal structure here and what transpired. I just have a very little bit of information so I would get professional counsel, but that's a bit perplexing to me as to what you're being told there so I would just ask for further clarification and then I think once you know that then you can proceed from there. In terms of understanding how that may or may not affect you in terms of that the affordable care act. We appreciate your call today. Thanks very much you had to break here will become back. Eddie is in Oaklawn, Illinois, and he wants to know about paying off his house or setting aside an emergency fund. Jonathan's in Miami he's been waiting to purchase is wondering if now is a good time to go ahead and fire continue to read mostly of slides open for you. Here's a number 800-525-7000.

By the way, if you haven't created your free moneywise account to receive our moneywise weekly wisdom email to be able to post in a moneywise community answers from our moneywise coaches can do that quickly and easily on our website is@themoneywiselive.org sign up for a free account to deposit a brief come back more of your questions and call 7007 us delighted. Along with this demand. Moneywise, lively recognized guns and all stewards and managers of his resources and money to accomplish his purpose well in community. Together we can help you navigate your financial decisions applying biblical wisdom to the issues of the day. We got slides open today will head right back to the phones.

Miami, Florida hi Jonathan, how can help user going to little Craig down here in Florida with the housing market and everything we had in my life have been trying to rent it out. Hopefully that or something that comes our way. We can now take that opportunity by but right now the rental market crazier now and our landlords trying to raise our rent like. The room we have a one bedroom one bath, and he wants to raise it to 2000 month we are trying to get it changed like at least one 1850 a month so just a little crazy and were just wondering if we should just get into the process of buying just so crazy right now. Well, you know, as you think about buying. I think the key is are you ready to buy. I'm not as concerned about the housing market in terms of your your timing because even if we were to see a cooling of the housing market.

I think that's can result in a slowing of the increase as opposed to a decline in mean if there was any kind of dip. It would be very slight, and so I think the primary thing here is if you're not looking to buy a property is a rental that would be another story. This is can be a primary residence. It's not just a financial consideration because your primary home is not an investment. Here's what I mean by that. Yes, it should increase in value over the long haul.

You know if you're planning to stay 5 to 7 years or more and that's a good thing. But the definition of an investment is that we sell it when it accomplish his purposes, and that's not how we approach our homes.

That's where we live, and so for me it's not as much of a concern as to you whether or not this is the right time to enter the housing market as it is. Are you ready financially to enter in the way I would define that is to say, can you find a home that you would be happy with location, size, and so forth, where you have 20% to put down, and where the resulting mortgage payment that you would take on would be no more than 25% of your take-home pay. Would you be able to accomplish those.

Do you think how it is probably downgrade our wants are maybe accomplish.

Sure, maybe I only have the savings savings for a down payment of more to keep us financially stable. Anything that another COBIT craze happens or something. Sure, mostly the monthly income looks more of the problem. I think you make total like 70,000 before taxes low performing something now 25% of our take-home pay is a little hard. I totally get it. But I also realize that you you're likely to be paying more than what you would be paying for mortgage for rent just because what's going on in the rental market right now so let's say your net take-home pay is 4500 a month. Can we be talking about in $1125 for principal and interest, taxes and insurance.

I realize that's can be difficult to do.

But even if you had because you're living in a hot real estate market right now you if you had to move up to 30 or 35%. I'd be okay with that. The key is that you need to be able to balance the budget. So you have to dial back other areas, which is increasingly challenging due to inflation, especially in in certain sectors of the budget like food. In particular, so I think that the key for you is just to begin to explore that. Could you buy something that perhaps isn't the home you ultimately like to be in but maybe a starter home to get into the market that does fit your budget that's knocking to be a strain.

Perhaps it's even less than you would be paying for.

You know your rent and then factor in those other costs that are to be associated and see whether you know now is the time you can swing that.

If not, I think perhaps you may just need to delay this just find us in a reasonably priced rental. As you can and continue to save and then hopefully your income continues to increase, but I think Jonathan that's the main focus right now is when you're financially ready for me, more so then you win to enter the market because we try to play that game, you know, we just have no idea where the markets going from here and I don't see any signs you know that were in kind of a bubble situation or anything like that with the housing market, the increases even though were slightly overvalued have been as a result of real supply and demand issues and lack of inventory as opposed to any kind of bubble in the housing market so I think you need to do the hard work to figure out what you can afford and see if you can find a house that matches up with that will ask the Lord to give you some wisdom on that. We appreciate your call today.

Oaklawn, Illinois hi Eddie, how can help user right and where chartered out what's the best route to panel for how often do we have enough money in reserves to do so. Couple we are caught.

We have no problems with two cars. No student loans and we have no credit card debt and what that involved where we make some pretty good income but did and we also we fully fund our archiving and we fully fund our 401(k) and IRA retirement accounts. What's the best way to do so. If we have 30,000 in cash in the bank and were wondering about enough to put a work reserves and just focus on paying the house off your thought now your total expenses on a monthly basis. Total expenses about what works, kicking and staying private school Christian school about a grant of month-end. We we have reserves we have bringing about 10,000 a month. Okay, so that he thousand and expenses you have nearly 4 months expenses already set aside what is your age 50 okay so you all planning to continue to work for the foreseeable future. Correct.

Yes any other major changes on the horizon that you know about no sir okay will you know if you good steady income that you know God as you said you're making good money you're doing all the right things are prioritizing your giving your fully maxing out your your retirement accounts so you're completely debt-free, except your home and you've got four months expenses in emergency reserves. I'd say absolutely let's go after the house and take your surplus and begin attacking that dad because once you're completely debt-free, not only as I can free up even more margin for increased giving work, and whatever else the Lord might lead you to do a but you can get a whole lot of peace of mind that comes from that knowing you're completely unencumbered. So, given everything you've told me today Eddie I would absolutely encourage you to go all out toward paying down the mortgage. Thank you so much. I got bless you buddy. We appreciate you listening and calling it a congratulations on all the progress you've made financially to finish today in Tampa Bay Florida a WK ES hi Bill, how can help user hello rental property and Nola right now and the right to refinance and admit that the property I can have like a good deal more than 200,000. I know Robert okay yeah so you have a couple of rental properties right now that your primary residence. Do you have the mortgage on that.

Yeah yeah yeah conduct on the mortgage payment right, maybe $600 extra.

What is your interest rate on that one. It's 2.8% okay phenomenal see one leave that alone. And you're already paying extranet and then you got these other two rental properties how much equity you have in those want to sound a bit more than hundred thousand. I do like about maybe 90,000 okay and are you looking to get cash out. Are you just trying to improve the term just got out dark out to buy another property okay and how much would you be looking to pull out and how much would you be spending on according to Bilodeau mortgage company to be a bit less than 200,075% of property at cost of the property for boat will be 701 that the 200,000 okay all right and you'll have how much a person I have that interest rate that I have the 44 point admit it, but it's going to go down the 3.875 okay and you get that on all of them. Yeah, yeah, yeah. Two.

But then what about this new property you take a new mortgage on that as well. Right do mortgage guide will be because of the business of the similar to that sure if it does I guess the question is just are you comfortable with this amount of leverage.

You know I'd rather you get these properties down to 50% loan to value before you take on the third just because you were got a lot of debt out there and if we were to had a recession and you all of a sudden have these rented, but they're no longer rented in all. Now you've got yourself in a challenge. We are trying to cash flow. These things does not give you any pause and I have attributable to serve in the bank, and that there director. I like more than hundred thousand and then the renters are paying mostly the I have extra income up to date.

Dana opted to get a mortgage look at $500 each. Yeah, and that's good. So your cash flowing. The debt service you cover the expenses and you have a little bit extra left over.

I think the key would just be be careful in getting to overly levered you my preference again would be that you have no more than 50% loan to value on these before you by yet another property. So I think you just need to be careful because everything is going along great. Right now we gotta housing market, the tile you got good rental income. But if we had a recession a year from now, and in all of a sudden you're not renting these properties. I think the question would be how quickly would you run through your reserves many months do you have how to cover all of these before you could get them sold so I probably go slow and wait until you have 50% equity in order to get home. We appreciate your call today. All the best to you and let's get to do it for us today. Moneywise, lives a partnership between the radio and moneywise media want to say thank you, Eric and Dan, thank you for being here is tomorrow. See you