[Music] um Thomas has a question. He says, My wife and I just got debt-free as of April, which is awesome. That has to be a great feeling. And they have a baby on the way, another exciting thing. So, big year for you guys. He says, We currently share a car and want another in case of an emergency. Not sure we can do this without debt in time. Thinking about the baby on the way. Any advice? So, okay. By the way, somebody asked, What are these guys writing down? We take notes like when someone's reading a question. I want the details. I want to make sure that I know Thomas's name. So, that's what we write down. So, wife and I are debt-free as of April, but they have a babe in the way and they need to buy a car. Yeah, that's the thing. And I think a lot of people find themselves in this situation. You celebrate. You're so happy, man. I'm finally out of debt. I finally did. I finally got out of it. And then something happens, and in this case, it's

a wonderful thing. Your family is growing, and you probably made the decision, Oh, I either need a bigger automobile to be able to carry more stuff 'cause babies have a lot of stuff, or maybe I need a safer, more reliable automobile. Whatever the case may be, but I'm not quite at the financial place where I can do that completely debt-free. Is that bad? No. Oh, I thought you wanted me to say... I was going to say, No, it's not bad, and I think a lot of people find themselves in that situation, and it's okay. You know, we have this little graphic that says, Okay, I think that the way my financial life works, if I'm following the foo, is step one, step two, step three, step four, step five. Well, in reality... Oh, Nate, you're so good. There it is. In reality, it's not like that. It goes up and goes down and goes up and goes down, and even in my life, I've had periods in my life where I've been completely debt-free, right? You know, in between homes and that sort of

thing. And then I've had other periods where I've had a whole lot of debt. And it's okay if that is what your cadence looks like. That's why we come up with rules that we think can be so valuable. So, Thomas, for you and your family, as you're thinking about getting that reliable transportation, you're thinking about getting something that works for you and your family. I would encourage you, one, go to moneyguy.com/resources. You can check out a whole car-buying hub there. But really lean heavily on 238 when you go to buy that car. Put 20% down. Make sure that you do not finance for any longer than 36 months or 3 years. And you have to make sure the total car payment does not exceed 8% of your gross income. And so, if you can do that now and you can buy a car following 238, I think you're going to set yourself up for success. And what you're going to find is, Yeah, okay, well, I might have to go back into debt in this.

season if I fast forward 24, 28, 36 months in the future, that Deb's gone. It's okay. It was part of my process. It was part of my journey. I don't think you need to feel a lot of shame around that because that's life. That's what happens as we work. I empathize with him. He's saying, Like, we just got out of debt. Like, I don't want to take on more. And I get that. I think there's a mental-emotional element to that, but that's why we have rules like 238 that help you, you know, do some of these things in the timing that you need them to happen. CU, yeah, it'd be great to save some cash for a couple years or whatever, but you have a baby on the way. So, I get it. Um, so, I yeah, definitely go check out moneyguy.com resources. There's both a car buying checklist that you can download for free and then also um, a car buying calculator that will help you just, it kind of automatically calculates the 238.

rule for you and lets you kind of play with different numbers like well if I put this much down what would it look like um so yeah definitely go check that out and congrats on the baby like I'm glad that Bo said uh you know there's no shame in if you have to use some of these tools we're here to help you do it the smart way and not derail your finances now there are two quick caveats I'm going to throw out cuz Bri would be very upset if I did not throw these out oh I know what you're going to say yep so the first one is 238 is not the like crutch that allows you to buy a car that you probably shouldn't be buying so if you're using 238 to go out and buy the luxury brand to go out and buy the Mercedes or the BMW perhaps you're not thinking about it the right way and even when you do this even when you go back into debt even when you take that step

back. You need to really make sure that your monthly investments, the amount that you have going to your 401K, 403b, Roth IRA, after-tax brokerage account, wherever your dollars are going, the monthly amount that you're saving is greater than your monthly car payment. Because you want to make sure that you're devoting more resources toward your future self than devoting resources toward your past self, the person that bought the car yesterday. So, if you can make sure that you keep that in line, again, even though you're taking a slight step back, going back into debt, that's okay. Make sure you do it the right way.

Go Back into Debt to Buy a Car with a Baby on the Way?

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