It’s Time To Go Scorched Earth on Your Debt!
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Live from rami network. It's the ramsey show where we help people build wealth, do work that they love and create amazing relationships. A msi personality, George camel, joined by jay warshow, best selling author.

And we are here to help you take the right next step for your life and your money. So give us a call at triple eight, eight, two, five, five, two, two, five, and will try to get to the help and hope that you need. Jack is gonna ick us off in new york city. What's going on? jacque?

E hi there. How everyone.

what's going on?

Well, I would love to be able to help my sister obtain the markets um sin suggest of my mom and August um they find herself in a position of um needing a place to with. I want her to move very close to me in the same town, hopefully and unfortunately, because he was my mother's caretaker for the last six years and he did not .

have a an income.

my husband does not want to go sign on a mortgage for her. Why having a hard time with .

when he told you that, what did he tell you?

He told me and sixty two years old, we just paid off our own home. I do not want my name on another more fish for the rest of my life um I am having a hard time with that as a reason because it's .

IT most likely .

would be a temporary situation .

would mean temporary.

Well I would assume that once my sister is daddle and with a job that he would be able to take over the mortgage, I guess refinancing and um I guess getting his name off of that markets. How old is? You know .

you're sixty two.

How SHE T I am actually sixty SHE is going to be sixty two in .

february SHE having come .

now he has a very small pension that he is uh collecting on. He started that early because of um leaving her latest job. And do you have .

any money to her name? No, jack, do you see the writing on the wall that your husband sees? You are taking on this mortgage for yourself. It's going to stay for your ability to retire because you're gone .

to have to pay this entire mortgage. Yeah, jackie, first off, i'm sorry that you lost your mom. You IT says on the screen that you live in new york. What is IT cost? I'm just trying .

to get my head around the number. I'm sorry. I actually don't live .

in new york, york. So where okay, what does what you're looking at?

What is the cost .

as far as for her to buy a home?

I mean, for her to live in a house that SHE needs or wants to? I mean, you're the one saying that you should buy or something. So i'm just trying to see what you guys have looked at that would see .

her needs her her buying a home would be contented upon selling the filling of my mom house. 是。

And what would you guys get for that?

And I would say that proximately between the eighty and ninety thousand dollars, I am one of seven so and we are all on the day so it's one seventh of of the entire cell. And um I have also agree because I .

can I clarify, is the ninety thousand one th or is that .

the ninety ninety thousand support seven eighty probably go. okay. I yes O K, so we're trying to sell the home now. So in other words, her her obtaining a home close to me would be contingent upon the scale of my mom's house. I have also agreed because on in the position where I don't work, I I don't have to um wear wells that can I ask .

a question if you want your sister very closely to you because that's that's in one hand and then you got your husband who gets a vote saying I do not want to sign in coastal forests, which, by the way, I agree with him, pretty sure George, one hundred percent and agrees. Es, with two.

What would IT look like if SHE SHE stay with you guys for a while until he could? You guys set IT a limited time and say, hey, we want you to live here h or we want you to live on this side of town or on the side of the country, whatever IT is. Uh, what if you stayed with us for four months or whatever you guys decide, talk to your husband and until you get a job on this side of town and then when you get a job, the house sales, you will move into your own place. What would something like that look like?

Probably not durable and simply because of um the pet situation there two dogs and a cat that one day my mom's pet and ending her my sister's dog as well. So can SHE .

afford take care of these pets?

Can I mean, right I mean there are you asking me if he would give them up? I'm not asking that.

I'm saying that sounds like she's broke. And then these pets are adding an extra expense, and now she's going to jump in the home owners. I'm wondering if you can rent somewhere instead. Why is that have to be SHE .

needs to buy her own house or else? Unfortunately, from what I understand about really having to meet so much bacteria of having a job for the past six months now or that.

well, there's one more let me this, there's one more criteria needed to buy a home than to rent to home, to rent to home. I want to make sure basically that you can afford the rent in that way. If you have det pay off for other things to get in place, you have the time to do that well as if you're going to buy, there's really quite a bit that needs to be in line first.

And based on what you're saying, IT doesn't sound like he has that in line, at the very least being able to put a gun payment. IT sounds like she's quite far from that. And so here's what I would take.

her ninety in pocket and high yield savings account, let her rent for a year, and something that, you know, an apartment, maybe a small home with a reasonable in your area. And then when he has income and is proven that he can make all these on time payments, maybe then you at least help her buy the home, not financially, but just for a support standpoint, walking through all the pieces of IT. But I would not intertwined your finances if you want to give her some money to do this, that's fine, but do not sign any piece of .

paper because the truth is, think about and i'm not saying this in any negative tone, but SHE hasn't worked for quite a while and she's sixty two years old and she's moving to a new area of town and has to find not just A A part time job, but a job that is going to support her as a single woman and that could take some time um do you know does he have any other debt or do you know anything else about her financial situation?

No, I mean he has no other major debt. You might have like maybe three hundred dollars in credit card. That's something that he pays a minimum baLance on.

Okay, the really the bottom this jacket is we want to make sure that he can sustain her own life and that you're not art officially propping her up for the rest of her life because that's not fair to her. He needs to learn how to become independent and kind of grieve the life that he had as a caretaker. And go, right, I got to do this on my own now, and I got to pay my own bills. And that means i'm, I have to go to work for seemly. Who knows how long you might have to work into her seventies at .

this point and it's not fair her husband dead because the truth is you guys have built a life together and it's allowed you to get to this point. And it's OK if he says and he is smart for saying I am sixty, i'm sixty two, I don't want to put my name on somebody else is that it's not smart to cosign for someone else is dead and that's really what this comes down to.

He knows you guys are break argon to have to pay that bill for the rest of your lives or sell IT. It's going to cause more relational term oil. So we need to figure away for her to do this on her own. Thanks for the call. This is the great show.

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Welcome back to the rami show. I'm George camel, joined by jay warshaw open phones at triple eight, eight, two, five, five, two, two, five. Well, today is eleven eleven, also known as singles day.

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So eleven dollar deals today, only november eleven. Go to ramsey solutions. Don't come slash store or for listings on youtube podcast, click the link in the description denis, up next in new york, new york. What's going on, denis?

Hi George.

hey is one are you?

I am good. I am to the program. I um among the baby steps three um raising my bridge six months emerging fine. And my question is um for the next as I move forward, I put the rest of the money. Want to see for a doll payment.

Do I put that in a hio fAilings? Or can I put that in a low risk investment like S, P, Y or something? Let IT grow.

What's your time horizon for this purchase? Are you looking at buying a home in the next two years or six years?

I five minimum.

okay. If you're looking out of five year plus time horizon, you can invest in something like know an index fund, mutual fund to help that money grow at a much higher rate than a hail savings account. And the reason for that time horizon is if you're below that, you're talking a year, two year, three years, there's a much higher chance you could lose money right before you go to make that purchase.

So five years plus we've seen in the market, you're likely going to make money. And so ah that's that's a great move. Talking five years out, how much are you looking to save up?

Um here in york is very expensive for a house like six hundred minimum. So I don't like I I didn't map IT out exactly, but you're probably .

looking at a six figure down payment. yeah. How much can you save each year based on your current .

income turn? Come about thirteen.

fourteen thousand a year?

yeah.

okay. But so if you get aggressive, could you save twenty grand year for five years with that invested? You'll have a healthy six figure down payment.

Yeah.

that'll get you there .

after my income of a bit. And then .

over five years, I think so.

I mean, my income goes up.

What do you do for work .

and financial services? What do you make financial right now? About sixty five.

sixty five. okay. Yeah, I mean, that's a that's a great income, but from new york city, that's tough at a various an ultra high cost of living area. And so I would try to up your income. That would be my goal to get that core income up over these next five years while I aggressively try to save as much as my income as possible.

right?

That's the gold man. I hope that helps. Not easy in new york city.

J, I mean, people call from california, new york. go. Hey, your housing premeditate work.

We go. The math doesn't broken. The math of your reality is broken. You want to buy six hundred thousand dollars home.

but you make sixty k, yeah, i'm hoping he lives outside the city and somewhere, you know.

yeah, I know I I A lot of friends out there and they live in know suburb of new jersey and they commuted up and know it's a good life. If you want to be a home owner, that's kind of the game you have to play.

One hundred percent. And yeah, especially making sure that that that payment is no more than twenty five percent. That's a key. Key is of this.

If you have a month one hundred, you're not going to be able to survive and pay for anything else. Tom is in seattle up next. What's going on? tom?

Hi, hey, thanks for taking my call. I just need your your opinion and anything give me some guidance on the following.

Come on, I said.

come on this here. He was excited.

I'm excited. Okay, good. I'm my and sixty one years old. I'm in a retire in four years. Our sun graduated with a degree in chemistry two years ago.

Uh, he his company has told him that he needs a degree in engineering, which he wants to pursue. So it's going to be two years full time. I and I know he can do IT, but my my question is here. My wife and I paid for everything in the first degree and close to retirement. How much assistance do we give them?

It's up to you. You don't have to you don't have to give him any and that's the thing I want you to walk away from this from if you guys have IT to give and IT makes sense with the plan that you've created. Yeah you can decide what that is but uh being a paying paying for education, especially paying for IT in full really is a privilege and it's something that you get to decide um if you want to do IT or if you don't want to do IT.

And there is no guilt if you say, I don't want to do this, but you do need to have that conversation. That needs to be really clear. And I would be very um forthcoming on ways that he could pay for IT himself so that he doesn't go into.

And I think that's the most important thing that you could do. So dad is is not on the table and IT shouldn't be on the table for you. Um however, your mother and I are only going to pay for x percent or zero zero percent or what have you guys decide? What are you thinking about?

You know i'm just a kind of lost because he just he kind of spring this yeah you know I think you know we got will get three courses page uh we get six about six hundred in irim four one case, another four fifty and cash mutual funds.

What's your house worth?

House is worth about three hundred and three twenty.

Okay uh and .

um you know household income .

right now is about one hundred eighty five.

Oh, wow, great job.

Could you if you wanted to do this, could you cash flow IT as part of your budget versus taking money out of your investment or savings?

Ah yeah, I think so. I'm with with my work. It's no it's it's a drivers is error, a drags commission. So I get four big settlements a year.

okay? What's IT going to cost?

Uh, I am thinking forty to fifty thousand dollars and .

when you say he just sprung this on you, um what what does that mean? When did he, when did he say.

oh, like two weeks ago he said he'd had a, had a talk with his his bus wait on the forum.

Can can I be honest? I think it's ridiculous that the employers not paying for this. If day rams, he said, hey, we want you to do this job.

It's going to require this degree. Go get IT sun. Go pay fifty grand. I'm not doing that usually if the employer wants you to do IT, they're going to foot the bill for IT.

That's a really good point. There's another point that i'm thinking of, which is i'm trying to put this in a delicate way because if if IT was spring on him, then I can see why he's spring IT on you.

But there's also a part of IT that to just be like any fifty thousand dollars makes me feel like maybe he doesn't understand just how much money that is and IT might be good for him to pay for a good chunk of this and feel that so that it's not just oh, I can just up and get the degrees I need you know i'm saying like I don't know your son, you do but there is part of that that I do want him to understand. This is a lot of money. Money is like our parents told us s money doesn't grow on trees. Like you have to go .

out in what happened? What happens if he tells the boss, hey, I can't afford fifty thousand dollars for this degree. What's happen? Well.

okay, the the way they the way they put IT to him is that his career, his future with the company progressing is limited without its Green and OK.

And did he know that when he stepped .

into this role? No, he deny. And he has been the company he works for is a very well known worldwide electronics manua OK. I I mean.

IT might be time for a career change where the latter higher while keeping his chemistry or degree, I don't know, but I would not just foot the bill for this without doing a lot more research pushing back. So there's some conversations to be had with his boss and then he with you. And we're going to figure out if we're going to do this and if we're going to do IT, we've got to do IT that free.

Thanks for the calton. This is the rainy show. If you're .

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Welcome back to the RAM z show. I'm George camel, joined by jade warshaw open phones at triple ate eight, two, five, five, two, two, five, four. Get to the phones.

Today's question of the day brought you by why? Why very fy refinances defaulted, private student loans defaulted, meaning when the bar or can't make to require payments. So if that describes you and you you got private student loans, contact yifan.

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Uh, ready. Today's question comes from antonio in washington, D. C. He says, i'm twenty six, finally graduated as an electrical engineer, and I about to start working in twenty twenty five, so i'm trying to plan out what happens in the next year.

One of those concerns is leaving my parents home and finding my own place. Good for you. My worry, however, is that I am not sure if I should do this by printing or by buying a space.

I know the consensus is never rent, but I see IT as a stepping stone of sorts, a place of your own, while not being able to comfortably purchase a property yet. Very smart. This is considering the mortgage, the maintenance taxes eeta.

My idea is to rent for one to three years while I build my career and income streams and then consider buying a small property to call home. Is this the correct way of thinking? Or are there things i'm not thinking of? Antonio, I think you hit the nail on the head. You're smart, dude.

Like you think he's the crazy one. In reality, everyone else is crazy for telling you that renting is a waste of money. You to bye ye, bye. Thank you.

Thank thank.

He spoken like a true actual engineer. The mathematics, they are not computing. You right? You're right tonio. You don't need to buy a house just because you're out of mom and dads, rent for a while, get out of debt, get the emergency funding place, get a nice healthy down payment, and then once you feel ready financially and emotionally, go ahead and and buy a small property to call home. As he says.

very good there.

And here's the other thing, you don't know what's going to happen with relationships. In the meantime, you might get married. And SHE decides, I hate the little house that you buy. I want to done vry you. So I think it's wise to wait and see a little bit as there's not the wrong with buying a house at twenty nine instead of twenty six or even thirty five instead of thirty.

Well, the good news, we've got a real estate home base for him waiting on him when he's ready and it's waiting on youtube. If you're thinking about pulling the trigger on a home, we've got a wonderful real estate home base. You can find that at ramsey solutions, not calm flash real estate, they can actually help you if you're buying or selling whatever your real estate needs are. Is a nice little hub there that has everything you're looking for.

right? Including the tools, resources, calculators, articles. But I also did a course.

Jade, yeah, on for first time. Mobile, tell me more. Checked that at others. I walk through in a little little quick videos to help you understand what it's going to take, what all the pieces of the process are. Course, I before I got my first home.

I love a video. It's different when you hear somebody saying IT versus trying to read IT. I don't know why when IT comes.

the things I have, those that many details, our team to a great job making IT visual, making IT clear, helping understand all what the heck is esco? What's going on there? We break IT down for you got a ramsey solutions, not come slash real state to get access. Do all of those .

reasons probably made IT funny too?

We try, there was a men in black reference that i'm very proud of in that, including VS tapes. So, you know, I got ta make IT fun if i'm involved. I want a pigeon hole myself as a guy who cannot be boring.

Good job what I try to do. All right, let's go to the phones. Matt is in bolt more? Or how can we help?

Hey guys, big thanks to be on as well. So i'm currently get free myself, and I am working on paying off about forty one thousand dollars of my wife.

said OK.

Now we split everything down, medal making, minimum payment. But I am a disabled, Better in. And I work part time. I'll have a little extra money, my pocket about twelve thousand one side twelve hundred months with my speed low between, uh, my sons college find a downpayment on a house and building my retire are building my emergency fund .

OK so my clash so my .

question is whether you think it's smarter to speed on my extra on spoken for income across different savings accounts or if you think I should attack each thing individually?

Well, first off, its veterans day. So thank you for your service every day of the year. We're appreciative at that. Um what you said I know you have another question there, but what you said about you and your wife kind of threw me off from the very beginning, to be quite honest, when you said that you're debt free but your wife isn't that was kind of like my signals went off because here we really believe in combining money and doing that if you're married couple so my question is how long of you .

and your wife been married uh so mean the most of the married about four years OK and that problem kind of became too fold um one of which is um SHE wasn't really handing her finances very well and SHE hit dead from me until very recently OK. And we don't share one bank account. We just we just combine IT for all the household bills .

so you pay half of her minimum payments, yes. And then SHE pays half of all household bills. You pay half, yes. Do you guys make the exact amount money?

Uh, so I make more with my benefits OK. So I try, I try to help out with a major doesn't feel unfair though.

if he doesn't the same exact and spin things. I feel like if i'm here, i'm going, hey, this isn't fair. I'm paying two grand out of my three. You're pay two grand that you're four. You know do you see how like there there could be some relational problems with that, some resentment.

Yeah so we he has, he has we know we have the household bills. SHE has her personal car that sixteen thousand, then SHE had to get a consoler dating loan to cover twenty five thousand. So she's paying for her car and i'm paying the insurance and i'm paying half of her dead.

what? ARM, when you told me earlier that he was hiding, I act up two questions for you. When you told me earlier that he was hiding debt from you, I want to know how much he had and how long that went on. Then I want to know what you guys have done to rebuild trust because what I don't want is um depending on what you tell me, there could be a situation where I understand that you guys have if if you've been working with the council, maybe there's a separation going on. But I also wanted know what you guys are doing to rebuild that trust.

So SHE had um no various credit cards for for buying product as well as um one style payments. I could just regular regular payments that he was putting all the credit card and then just paying the minimum payment.

And how much that was that to the tune of like what type a debt did that rack up?

Well, that ended up backing up about twenty five .

thousand hours. Okay.

that's the consolidation to get get all that s and s.

How did you find out about IT? Did you tell you or you discovered IT?

So a little bit of both. Actually, what had happened was, you know, the red goes up, the daycare goes up, things like that. And he came to me saying, SHE couldn't pay her half anymore. So I went over her finances to see where the trouble was, what we could cut out. And I realize he had three hundred, but across four different.

And you, and so what you guys do you with counselling?

No, I took the consolidation .

one .

out to pay everything off to make her solve IT. And then to about four hundred, seven months, cut her, have down about two hundred months OK.

so she's putting extra nod. Listen, that's great.

If you notice, I I have veered completely away from your monetary questions because I care mostly about your marriage. And IT bothers me that what this is telling me is you still don't trust her because this thing happened, which is a big deal, by the way, i'm not minimizing that at all, but IT caused you to say, oh my god, you did this without me knowing you're not good with your finances. I don't really trust you.

So we're going to keep IT separate. I'm going to control my have you control your half and i'll also chip in, right? So there's this. This is not a good way going forward. And my my encouragement to you is not don't let IT go on like this.

You guys need to get with the counsellor and figure out how to mend this so that you can be back on the same page again, because it's very hard to accomplish a singular goal when you're on two different path. And I want you guys on the same path so that you can combine, you can support each other. There's no kind of like animosity.

There's no resent ment. There's no on her end, there's no guilt because once he said, hey, I did this, i'm sorry, please forgive me she's not going to be you guys aren't to be able to move forward until he knows, okay, this guy, we're back on the same page. They're trust there again. And i'm not saying that that's gonna en overnight, but I want you to work towards .

marriages are either going going together or they are growing apart. And I want to see more unity. I want to see you make progress with your marriage and your money.

And that's going to take unity. That's going to take one bank count, one budget. We're going out of our debt.

This is we, not us and you. That's how to deal, right? Thanks for the call. Happy veterans say this is the rainy show.

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Welcome back to the raz show on George. She's jade. Or here to help you with your life in your money.

Call us a triple. Eight, eight, two, five, five, two to five. Linda is up next in medicine. Linda. How can we help?

Hi, thanks. I'm glad that you always get some really good advice. I have a pretty difficult situation. My question is, what is the best strategy for me to pay off my debt given my current circumstances?

What are you? What are they?

yeah. So i'm fifty eight and I was diagnosed with cancer two years ago.

What kind yeah .

doing well praise god you and cancer in your mind sided of course. So I was a um making really good money as a veteran and you know working on trying to save on that stage when office happened and um because of everything I decided to take an early with tireless and I was fast tracked on to for security disability .

in twenty .

twenty two oh but unfortunately I hadn't saved a large mistake.

What did you have?

Well, well, right now this is this is where I am. I I owe a house, my home, no, no mortgage, is a brand new construction house. So I will really doesn't that nice.

I, what's your worth? Another story. I haven't had IT a praise, but i'm thinking I could probably get two fifty or IT.

And you live alone.

I live alone, no kids, I own my car um so you definitely .

completely .

no so this is now this is my fear is I do have appropriate thirty five thousand dollars in dead right now of which twenty four thousand is on a credit card that I had used where I went over budget on house, about thirty nine hundred is for special medical care and supplements on a credit card. Neither of those credit cards are their interest free right now.

No but .

but that will end next. The medical .

the credit card that you're putting the medical stuff on is at an ongoing expense that you're using that for? Or was that kind of a one time deal.

one time deal? So i'm done with that. And then I unfortunately, I had to have a high deductable insurance yeah in twenty twenty four. So now i'm going to have a total of right now at seventy one hundred of medical bills that are gonna to be coming due next year. And my complete an entire life fatting is ninety seven thousand five .

hundred OK.

And so my question is, what strategy would you recommend? I used to pay off this, that and rebuild savings are work on that.

How much do you have savings? Where where's the ninety seven thousand stored?

I haven't in a high il saving account at four point eight percent interest that .

so you could pay off all of your debt today. Using that money, you would just leave you with lesson savings that would still be a fully funded emergency fund.

correct? How are you doing with .

the living expenses?

For my living .

expenses are 可以 low， except for I I actually spend a lot on groceries and supplements. I have to buy, you know.

only .

stuff. yeah.

What is your what is your access to I income? What is your total income each month?

Three thousand, one hundred and seventeen?

And what are your monthly bills if you exclude the debt payments you need to make, let's say you were debt free today. How much with your total expenses be per month?

So my total expenses are coming out around twenty five hundred.

Okay, good. That's without the debt, without the debt. So let's say you took your you're ninety seven and savings.

You subtracted your thirty five and debt. You are debt free tomorrow, less stress, Better for your health. Leave you with sixty two thousand for emergency fund, correct?

yeah.

And then you be able to cover all your bills with about six hundred box left over.

What's your, what's your out of pocket max every year for your insurance?

Well, starting on january first, i'm gonna beyond medicare. okay. So I have a very little help and I it's only it'll be two hundred and fifty five a months um and they cover a lot and you still have some copies and things but that be .

life changing.

I should. That is part of five hundred. Okay.

good. So if when a thousand years he is, truthfully, I would get rid of this debt today today using your savings. I know it's onna knock you down. I know it's your life savings, but that's also gonna up six hundred box you could put in a savings account to add to that to start to cover some of these expenses. Wondering and mean the risky is you got to live off of thirty one hundred bux for the rest your life, right? Do they have a cost of living increase each year with that?

They do um you know it's based on the government, but they do have a cost of living increase. I mean, technically I could i'm trying to make IT work. I could get a part time job or something. I mean, i'm not disable, but i'm trying not to do that .

because one.

it's just more stress on me and I I be going on your .

house right now for sure. What is the prognosis the way you beat this? What does the doctor say?

Well, originally um IT was bad. I mean, I was like I was bad, was not great great thanks for um so I was in over a timber right out right out the gate um but I am an imminent therapy which has been just game changed her lifespan or i'm in complete remission and i'm doing everything like i'm doing call the natural perfect stuff that you can imagine. We are so .

glad to know that. Yes, I truly think that dad has a physical weight on our bodies. I think when you pay this off today, you are going to feel so much Better emotionally, physically, mentally, spiritually, all of IT and then yeah, your job is to get on and every .

but are going to say, oh my god, you like failed epically because no, I so far behind lda.

lda, there is always, there is always a measure of peace that can be achieved always, always. And you've got actually, you know, you have the money to do exactly what George said. You can be debt through.

You've got a paid forex to be able to say that is amazing. You've got ready for cars. You've actually accomplished quite a bit. You may have done IT in a around about way, but the most important thing is you're healthy and you've got .

your life back exactly. And beyond that, now we got to make sure living on we make we're on a written budget. We have margin left over instead of being right to the line every month.

And that's what's going to happen when you pay off this debt in that extra six hundred bugs. We need to just keep living like that didn't exist, was pital away in the savings, maybe even investing long term. You can jump on rain.

These solutions not calm and get in touch with a smart western pro who can teach you how to invest this money. So instead of a four percent rate of return in your savings, you could get twelve percent. I mean, this year, we've seen thirty eight percent returns in the market, Linda, so your money could grow for you. I mean, you you know, if you continue to to live a healthy life thirty years from now, I want to see this money growth for you to have an even Better retirement than you thought possible.

And you know, based on what you said, I probably wouldn't encourage you to start working part time again. That's definitely not gonna hurt you financially. It's going to help you financially if you're healthy enough to do IT, it'll give you some great purposes. Well.

so yeah yeah I I am i'm just trying to enjoy everyday right now. I am enjoying everything.

Yeah, I just really .

needed this advice and so glad I got to talk to you because it's been wing on me like, you know, all these different ways. I could go about IT, but i've been watching your shows, learning a lot. And I, you know, i've got my written budget. I've got, i've got things down to the penny. No, I knowed down what's going.

So then the hang on the line, we're going to send you a whole year of every dollars that you can budget, the rams y way and get over this as soon as you're out of debt today.

It's going to feel so good. man. Linda.

what what that be given myself going through what she's going through and has gone through. I want a life of freedom. Okay, give out of those brain calories and replace them with something much Better than that.

We are cheering for you. We hope you continue to have good health and calls back, if need any help. This is the ramsey show.

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This is the ram's issue where we help people build wealth, do work that they love and create amazing relationships. I'm George camel, joined by jay war. Shawn, we're taking your calls at triple eight, eight, two, five, five, two, two, five.

You want to talk about your life in your money. This is the show for you. If you're looking for something else.

I don't know why you're here, but we're glad you're here. Glad you here. Stick around. Maybe i'll enjoy IT mackensen kicks us off in pittsburgh. How can we help today?

hi. How are you going?

Great for you.

I'm well, thank you. So I had a quick question. My human and I we bought a health in twenty twenty for an extremely low Price, and we got a really good interest rate on at three percent.

It's not in the area that we would like to stay a long term, but we are in debt. We are not planning on moving right now. My question is would have be why to sell our house. And because of the market in the work that we've done to IT, we would make a significant amount money. After that, we are we bought IT for seventy thousand and we are estimating one hundred and forty thousand selling IT and we owe sixty five on IT currently.

Uh we're kind of that I .

want um so we have um three sixty five thousand dollar mortgage. We are twenty seven thousand dollars on one car, a one thousand on another and seventy honors in one combined.

What's your householding income?

One hundred and sixty thousand? That's very happening. sept. awesome.

Great income. So let let's walk through two scenario. One is you stay in the house and you aggressively pay off the debt. How quickly making one hundred sixty six could you pay off one hundred grand in debt?

I am pretty .

quickly um two years.

fifty fifty year yeah I would .

have that definitely possible.

Um okay.

the other part of that is my parents are moving and they are looking to rent out their house now that they're currently living in and they are moving into another. So I was thinking, what if we rented my parents home and then use the income from our home to pale almost everything? We just have a little bit of student loans left and we can get that kid off in like a month.

Do you like the house? Do you like your house that you live in?

I like our house, but I don't particularly like the area. The um live in town and I want to be somewhere more secluded. So in the future, we do plan on moving.

okay. Can I i'm gonna a question. I know it's going to be hard to handle answer, but just try your best. If you didn't have this debt, right? If there was no hundred and nine thousand dollars of debt, would you be so pressed to leave or rent right now to get out of that area?

No, but we would definitely be looking for a house .

you'd be looking okay. I'm trying to what i'm trying to access is if this is feeling like A A way to get out of debt quickly and kind of avoid pain, but possibly at the expensive I mean, you've got some nice equity in this house and doing things that you wouldn't Normally do like rent because in your situation, you shouldn't necessarily have to run again. Um if you wanted to move to a different house, that's just what i'm looking at.

If you sell the house, you're probably going to get about six D K after paying off the mortgage and real turfy and closing OK. So you're you going to knocked out a little over half the debt, which is great, and you'll knock out the rest of the debt in a year. So really what we're talking about here is one year difference.

If you stay in the house, it's going to take you a year longer. If you sell the house, it's going to take you one year shoulders. So it's up to you.

This is not an on fire situation where I go, you got to sell the house. That's that's a drastic last ditch effort to get out of a bad situation. Nothing is on fire here. Your mortgage ge payment is probably not that large compared to your amazing income. I probably .

wouldn't do IT if I were in your shoes. I think that the idea to get out of that area, I think that's good. I think it's in your head, but I don't i'm with George.

I don't think it's on fire. And I like when people walk through this process, especially when we're talking about cars that we can afford, it's it's just a good lesson in, okay, this is what I really cost me. I can actually feel the cost of twenty seven and eleven and seventy thousand policy .

to never go into that again. And you sacrifice to pay IT off over two years. And honestly, one year after that, you could pay off the mortgage.

You continue down that path. I were talking about three years from now will be completely debt for including the house. That gives us a lot of options when we move.

And your motive just change. I mean, truly, we don't realize how much dead um kind of pushes our motives forward. And then when it's gone, it's like, oh, wait a minute, things look different now.

And so there's part of that that i'd like for you to experience because I really think that right now, even the dead is clouding your motive slightly. But George is right. Sitting on a paid for house makes you think of the whole thing a lot differently. And so i'd like free to be able to experience the situation that you're in debt free. And i'd also love free to build up the habits ARM to keep IT that way by paying this off.

What are you guys paying for your mortal right now?

Five hundred and nine .

dollars a month. AmErica matter. You just want to let you know we're not happy. Way to go. What would your parents charge rent if you move to their place?

I mean, I don't know this is that number on guessing because of the area, probably country month.

So you are pean way less now. Yeah so I I don't think the jesus were to squeak on this one just to get you out a dba little bit faster. I would use that amazing income live on little of IT as you can to cover .

the bills and throw the rest of the dead. I mean, a hundred about .

the margin left over with one hundred sixty six grand. Yeah and we've .

been off that we had about four thousand dollars and credit card debt that we paid off um and we're starting to work on and attacked these things like I got said that thinking we could except IT exciting to when .

you look at all the ways you could get out of that faster. But selling the house, that's a big one with a lot of numbers on the end.

Can I take you to task a minute? How long did they take you to pay off the twelve thousand and credit? ard? Det.

so IT was kind of a process. We actually we have a one year old um and we initially were going to go like gazelle tensity. And then I found out I was pregnant and I was not going to get a new leave.

So we OK .

decided to save for my maternity leave. So um I would say IT took us maybe like four months to pay off credit card.

But this was after after the baby. Yeah yeah okay, because she's one years old. My point is and I like I said, i'm taking you to task. My point is I don't think you guys have I truly don't think you've been willing to embrace what IT will take to pay this off. You have a great income um and I I want you to see that it's onna cause a level of discomfort to do this.

And I think before you were searching for a way that wouldn't be discomfort, it's like, okay, we could sell this house oh, moving my parents house that will be Better. And so I don't want you to search from place to place to find how this is going to be, uh, the most how IT will give you the most comfort to do this because you may end up putting yourself in a worst situation, trying to do that like paying double for rents, then you are four mortgage that can be paid off in a year. So that's kind of what I want to leave you with, is you will feel this.

I would I would just stay put where you are mackenzies. I mean, guys bring him home, probably ten grand a month.

yeah.

So think about this, if you can live off of five and put the other five toward debt that's sixty granted year and dead pair you're done in less than two years. That's your name math to get you excited about that.

And that's no so yeah.

that's without doing anything extra. I could live off five brand. We could do this.

So that's what my goal is. Sit down with your husband tonight doing every dollar budget. go.

okay? We make ten grand. It's disappearing right now. A little bit of lazy, a little bit of comfort. Let's really get on this thing and be done in eighteen months. Let's get a big Harry odis goal so that we can move on with ether life and have our, our home and our dream location one day. This is the rainy show.

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come back to .

the rainy show. I'm George camel, joined by jay warshaw open phones at triple eight, eight, two, five, five to two five. Well, tax day isn't until April, but there are some really important moves you can make before the end of the year that will affect what you owe. And we're all about trying to help you pay the government less legally.

I feel like I my spectacle s on for this were about to get nerdy.

But so we got seven quick tips were going to make this painless and you might even learn something. So what's tip? Number one.

just right. Number one, check your paycheck with holding. That's a good one. The goal is not to the goal do not have a big refund.

That just means you're overpaying to the government right every single month you're giving them too much. So you need to adjust your withholding to get as close to zero as possible. And again, i'm saying that you do not want attacks refund every year. That's what we're talking about here.

You get like we get our three grand refund every year. You just gave the government an interest low. Actually be going back into your paycheck every month to tune of almost hundred bx a month.

Next tip income is tax only in the year you receive IT so you can defer any incoming til january first or later to save on this years tax bill. So you might be self employed and you've got vendors that are paying you. You might say, can you pay me january first and that way I have less income this year.

That will be tax. That's one way to do IT. If if your employer knows that caviar, consider whether that extra income will push you into a higher tax bracket next year. So if you kind of know what next years look like, that you can figure out what's gona happen.

There is good to note though that the way the tax brackets work, if you are pushed into a higher tax bracket, your whole income is not going to be tax at that rate, just the amount that this you into that bracket.

if that makes sense. So you have twenty two percent of bracket. Well, you're not paying twenty two percent on the entire amount.

It's just on our amount over a certain. So that's a helpful tip. People think I don't want to make more, jane. I'm cared. I know you're not paying that much more in tax.

Making more money is a good thing. Yes, please OK keep going. What's the next one? Number three, let's save by contributing more to tax advantaged retirement accounts. You know what i'm talking about for one case for a three B S I R S that could be traditional. Um you want to do these uh you want to do traditional for one case in traditional iras that are funded with pretax dollars, okay, so that you can write off the contributions as a deduct.

You can deduct like a rough for linka contribution. You've already pay taxes on IT. But the pretexts of the traditional side, you can save some money there in your taxes.

Next one, if you're seventy three or older, you can withdraw. You need to withdraw from traditional over time that comes to avoid penalty. So these are required minimum distributions, r mds, as they call IT in the biz, and is a minimum you have to withdraw every year. And here's why the government wants their peace. So if you got that, these traditional accounts that have been sitting there, the government, like when are you're gonna take money out to pay us taxi.

they that best believe that.

Another reason why I love the rough, you ready pay the taxes. So there's no R M on that.

Yeah, I had somebody. This is a sidebar. I had somebody on social media, George, that was like a my my plan is I do all traditional and i'm just when I just before I retire, I am going to go back through and convert .

to all the roth IT and I was just tax .

of of all time. Yeah, IT was a scary thing.

I hope you read my comment. Yeah, not recommend. No, boy. OK.

what's the next one? right? The next one is let's use gift tax, the gift tax exclusion, to avoid filing a gift tax return. For instance, if your gift is greater than the gift tax exclusion amount, the remainder ghost towards lifetime gift exclusion believe it's like.

I don't know seventeen grand .

per per person per child.

you're whatever per per so you can really move a lot of money around and gift IT when i've ever needing to file for that life, you know gift exclusion lifetime, which is millions and millions of dollars, that this really does not apply to a lot of people out there. All right. Next one, take advantage of tax deductions and credits.

Now we've all heard about deductions and credits. You can really reduce your taxi ble income by doing a bunch of thing. So for example, paying property tax and full by december thirty first, you can write off property taxes when you file.

If you pay your january R A mortgage bill early before december thirty first, you can deduct the interest portion of that payment, making charitable contributions to receive reductions. Keep that list there. There's E V tax credits you can file for, uh, energy efficient home upgrades.

So a lot of things you can do, but this is really for those that item ize, which because of the two thousand seventeen trump tax cuts, the standard deduction almost doubled for everyone. So I made a way more sense for people to do standard deduction versus atomizer. So less than less people .

are doing that. Are you a tax deduction or credit?

I like a credit. We know I feel like the deduction will lower your taxable income. The credit is taking some money off the bill feels Better money taken off the back into the bill.

He feels like a coupon yeah like some sort of and you I would.

but i'm not evisions for a lot of credit these days, you know. So it's fine.

Our number seven, I go to this. okay. We just talked about this. Converting retirement in accounts to rough has its tax advantages. You'll get tax free growth on your retirement savings, which we talked about in tax free withdrawal at retirement. The thing is when you're going to do this, we really say this should be like a baby step seven activity because again, you're you're pay yeah and depending on how much you had in traditional accounts that you're converting over IT could be you know decent definitely something to plan for yeah.

So you're Better off using that money toward getting the home paid off that that's why the baby step seven .

thing to do and that's why you need to do a healthy mix throughout the years.

That's right. And one final bonus strip for you, connect with the RAM c trusted tax pro. These are the folks that can help you do things the ramsey way. They're not going to tell you to do stupid stuff like go buy a hundred thousand dollars AR because it's a right off our rainsy trust attacks. Those are not onna steer you in a bad direction.

You're going to help you save the most money and do IT by the book and take out all the jargon and confusion and stress out of the taxes so you have questions. Reach out to attacks for rainy solutions. Don't com slash taxes. That will help you .

save money on taxes now and in the future. Was that I K P, I elt I A fort?

No, I wasn't fun, but I wasn't painful either. No, some, you know, some where that I enjoy that. Some account, some spreading loving guy was like, yeah, let's go all right, let's go to four worth texas up next Carry joins us there. What's going on care?

Hi um I my family, I just turned out recently that my parents in a bit of that and don't have really any savings and both of them are living our six income due to medical bagnoli that um leave them on disability and so security for their income and just wanted to know the best way to help them out of that. We've found out just recently that, that debt had been involved in a dead relief program.

No right OK.

So IT was .

almost forty thousand dollars that was involved last year and year to date. Men, how I think of the seven different um that three of them are settled in payments made. Two of them have reached an agreement and are in progress on making those payments but unfortunately the last two are the largest um totally almost uh twenty five thousand dollars to the last there in advance negotiations .

and I believe uh a lost you has OK what is their .

income so um income with so so they both so security do the disability and their some long term disability coming um that total about fifty five hundred month.

Okay, so that's their fixed income. And what are their monthly expenses?

So they do still have a mortgage that's about sixteen fifty a month. They're currently making payments to the dead relief program of about six fifty a month. And then um everything else those and and food comes out to um total, including the markets and the debt release program comes out to about um right right at the fifty five ended IT comes pretty close every month. okay.

Have you had a conversation with them part saying, hey, mom, dad, your broke here's like, let's look at the numbers. Do you see the reality, your situation? You've had that .

conversation, yes, so that that where the conversation started is not in macon.

scared that are you guys in a place to help them financially? Like if you were to cover the twenty five grand A O to get out of this lawsuit and be could you just give that to them?

Um we do have money available like that is sitting in a non retirement investment account that could be used to so we care that off. I don't know the process what baby .

step I was going to ask what baby steps he's on, but that's okay.

We're get into the line. This is a tough one. If you want to gift IT to help them out of the situation and then say you're never going to dead again.

There is going to be some strings attached if we do this, yes, but otherwise you're going up to do this on their own and use their income to do IT, which means lowering their lifestyle and potentially trying to do some part time work, which might be difficult with their situation. No easy answers here. That's for sure. This is the ramsey show.

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Welcome back to the ramsey show. I'm George camel, joined by jade war Shawn. From time to time, we have some guests that wants to celebrate.

They're debt free journey. They come visit us here at our headquarters and nash field and books and shanna have chosen to do that. Welcome, guys.

thanks. I like this .

is exciting. Where you from dells .

bert pensylvania .

just outside a hair spirt take ital awesome.

And how much dad did you pay off?

We paid one hundred and forty five thousand.

wow. Tell us more because I have a feeling this is great news.

All right, how long does this take? Six months. Six months. And what was the range of income der in that time?

Uh, sixty two thousand to one hundred and forty four thousand.

okay. I've got a lot of questions here. There's a lot to pay off in six months. What did you pay off?

Well, there's about thirty five thousand dollars for the food truck for the business. nice. And then you're looking at.

we're t like paid off .

the house of the house.

wow. Wait, can I set this up for the listening audience right, quick? Because the truth is you guys came up to me on the break and they're like, hey, jay, I don't know if you remember this, but you and Rachel, we're hosting and IT was kind of help us decide what we should do.

I think we call this or that yeah pick IDE, whatever. And IT was between paying off your house or like remodel in your backyard and based on what you laid out, I think great. And and I were like, do the backyard and IT was going to cause you're like we could do the backyard or i'll take us two years to pay off the house.

I feel like you told us now IT hadn't been two years. So what happened? We just started .

playing around with the calculator and realized because I was a photographer for ten years, and I said, if I retire and go back to work um actual tech writer and like if I go back to work we put everything and just .

go after IT and yeah now the first goal was, well, what does that look like if we can pay off the house by the time our oldest is graduates from high school? Okay, we can do this. What about the Youngest once he graduates? So, okay, then bm booboo.

And then we found, like, what if we do this in six months? If we do this, we do this, we do this. And yeah, let just go after IT and you just be to natural with IT and we go is old times we went orge a you walk me through this .

because i'm like trying to do the math and it's it's urting my brain as to how you paid off one hundred forty five grand, six months making hundred forty four.

So the thirty five was from retained earnings from the business. I had the cash on hand, but I was reluctant to spend IT just because that's that safety net just in case anything happens. And like you all say, just just paid off and it's Better off ward. And we just I think that we just sold IT.

Last week, we closed IT.

Well done with the food drug business. IT didn't work. Food and food burgers and fries, things like that is just it's a tough industry today.

We owned an Operate a craft. So that was just a addition to IT. And it's just it's a tough industry to to live and work in. And um so we just decided to to move on because IT wasn't working. So focus on other food that was much more profile and mainly less stressed for me.

Yeah, absolutely. It's in your hand. That would be a lucky.

And this is our hazy doble.

I P. A. wow. Good marking. I was wondering.

Was like.

is this guy I drinking .

on .

the clock here? I love so you paid off the thirty five, the food truck with retained earnings. What about the mortgage? How do you knock that out in six months?

Like I said, I went back to work um in the corporate world, I have to got a part time job and then I also work at our tap room. So a lot of IT was on my shoulders, but we knew I was for work because we're gone we're .

gone day this this was all cash load through income. Yes, you show anything to get the you have saving, you just want we're going to put every time we can from our income and live off of very little .

all the tips we learned from the tap room, every everything we mean, we were scary. The coach cuts just get a number. 这些 人， we have a goal and we're going to ta he said that and we're going to get IT after .

vision accomplished that. I mean, i'm just turbin because you guys you went from a two year horizon to six months.

Yeah I just by crunching some number going, we could do Better.

We could do Better all about the budget, all about the year. And now we don't have a payment in the world. No, so.

so what's next? How do you, how do you celebrate that?

Well, I mean, were, uh, mom needs new car um as first and foremost we've been driving hopes. I mean, my entire life have been driving pay check cars. Okay, I kind of like him because you don't worry about getting damaged.

You know, the first thing that you do when you buy a new car, someone scratches this up against IT. In the problem, you parking the back with the the new house we have um we haven't finished completely finished basement off. So the bars going to go down there then possibly europe as well too.

So so no backyard.

the backyards of the pool.

there was never a pool. But I just know you put different priorities on things and which is most important.

nothing that yeah and the basement bar clearly been the prior well.

you know it's well getting back to you to the new house. So we actually lost our original homes. So the home we paid off, we lost in a fire. Oh, my good .

anuther .

we my oh, so .

that's fifty minutes after .

I called .

after at night.

night. Thankfully, we were up watching TV .

just before we went home. And long story short, I started in our garage and we had a door with a door bell, and we had no notice of the fire. Accept the doorbell ring.

door bell ring. We got up to see what's going on. We thought.

walk the back .

door where the door. And we heard something weird. He opened .

the garages.

door and garage. Lately, nobody holy in my head. I was like, please tell me, there was nobody at the door to be a literal mirror.

And the next day of fire, martial asked, what did you see? Smile here. We had no idea the house was on fire until the doorbell ring.

Is that a feature on the door bells now? Or if there .

is like no five .

business?

okay. So what happened after that? Does the insurance company write you a big check?

They did. Uh so um we had the choice whether we wanted to sell off the land and then buy how somewhere else or rebuild a new to our house and we got to design the house of our dreams within budget w and it's the house we live in know we often say we paid off the old house, the current house which we live in is the gift the lord gifted to us and will propel us to do marvel things in the future.

And actually, one thing shane left out as we were walking away from from the fire, I, to this day, I can still remember her saying to our boys, something good will come from this. Something good will come from this. And uh, IT really has put us into a financial position to do a lot of lot of good things. Think our community, because our community, I can say enough about, we can say enough about the .

litter lost everything and I mean, you can go from living high and the .

hog life is .

great to be home in a matter of an hour and not having anything to change your .

perspective.

Perspective did that give you? Because few people will experience that.

yeah. So honestly, that became a why, how our community responded floor us. And we're like, we need to give back. You were more now. And so that motivated the y and honestly, IT was just stuff.

Yeah, our boys cannot be your place.

The four things I needed to get out of the house got out without any harm. We can replace other, other things. We can place the cars.

We can replace this, replace that. IT doesn't matter. IT really doesn't matter.

And and I I want to tell people who are listening. We did not use insurance money to pay off the mortgage. The insurance money went to read, build the house. Yes, this was .

hard work a lot.

I mean, the long, long days, long nights work in every friday night, night, saturday night, night, sunday, just just didn't reach our goal. And you two.

you got all four of you, because I see the boys are, you guys are incredible people, an incredible family.

Give new meaning to the word scorch dirty, which you use. I want to just point out, the irony is rich here. Let's get, let's get the boys up here. What's going? Names and ages.

So this is collen. We call him tank and he's fourteen. They're going to go by mom OK. And this is a in becalm e or bigger big. So his twelve tank is fourteen.

Wo and Young got a front row to a lot of sacrifice, a lot of life change, some trauma. But here they are, resilient, persevering, and they're going to live lives of death. Freedom thinks to m and dad's hard work.

Absolutely right. Count IT down. We've got Brooks and shane, Colin and ian from the hairbreadth sylvania area. Hundred and forty five thousand pay off in six months.

House and everything after IT burned down, and they rebuilt, making sixty two to one forty four counter down. Guys, let's hear a debt free scream. Let's go. Guys ready.

Three.

two, one, three, three.

There's a lot of first in this dead free screen.

wow.

And cracking the can. That's a first for me. They might become a tradition. Wow, that was incredible, inspiring guys. This is the rains you show.

Hey, guys, is Rachel cruise. And guess what? It's my favorite time of year.

The lights, the music, the decorations. I mean, I love at all. And as a natural spender like myself, it's really easy to overspend. And I want to do all the things and give my family the kind of holidays they will always remember.

And at the same time, I don't want to look back at my bank account in january and think, oh, what did I do? So that's why I use the every dollar budgeting APP IT helps me plan for all of my spending, and that's what a budget is. Then when I have my plan in place, I don't have to worry about overspending.

I am free to spend guilt free and have fun doing IT. Plus, with every dollar, you can customize your budget however you want. So whether it's buying gifts, hosting dinners or even turning your living room into a winter wonderland, every dollar helps you plan for at all.

So you guys go out and create some great holiday memories with your family without the stress of overspending. Download the every dollar APP for free today. Go downloaded today.

Welcome back to the razi show. I'm George camel, joined by jade war shaw, i've got to mention, and we just met our death free screamers out there. And shin is an air force fit, I anted to say, very happy veteran's d's day.

Very thankful for the service and sacrifice of of so many today, indeed, and not to be our done did. There is a much lesser holiday. IT is singles day. Oh.

tell me more that .

rest in the shadows of veterans day. Apparently even weapons, one, one, one, one, all single gets the same single digits over over single friends out there. Uh, I see some hands being raised in the booth from our friend will.

But I has nothing to do with relationship status.

IT does. Oh, that does.

IT has almost everything to do.

Tell me more. That's IT. We just know it's the largest shopping day in the world. apparently. This is what i'm told again, and we love any excuse to give our folks a great deal. Whether you're single or not, these deals apply.

So it's not about the digits.

I don't know. I'm not in charge. You think they put me in charge of the holidays?

I don't know national pizza day, i'm not in charge that. But today only we figured, you know what? fine. Let's give the people a great deal.

okay? Only we've got deals as lowest ten, eleven box in the rain these solutions store, uh, popular questions for human things giving addition total money makeover, baby steps, millionaire building an on anxious life from a friend doctor john loni can commons get clear career assessment, so many deals, just eleven box or toy's a great data go here and start stocking up before the holidays is your book eleven dollars? I don't think we're there are yet.

I think mine is. Maybe i'll get there OK check IT .

one day you have to see here. So I don't know what they put in there again, they don't put me in charge of this stuff. Ramsey solutions dot com slash store find out for yourself or you're listening on youtube in podcast.

Click the link in the description. All right, take joins us up next in seattle, washington. How can we help tape?

Hey, guys, just wanna say.

really big fan .

make good so back story. I recently graduate college six months ago and got a really good job and just became dead free and just max out, me, my wife are rock our age to do our yeah we're to do A H to c in in january. Will max out also to eight for twenty twenty five and doing you know four one in everything you can? Yeah, here. Thank you all the baby steps work.

Yeah, you do much. I was graduation. I'm impressed.

I want to be like you when I grow up. okay. So what's your question today?

So we we want to buy a health. We kind of this we kind of um just the markets are good, so is not looking good and we don't know what to do. Like we plan of saving up about fifty grand this year, right? And I don't know that even enough to put for downpayment for where we live. What are you looking at?

How much do the houses costs you're looking .

at about for a small health of a thousand curves that was built like you know like in the seventies, it's about four hundred thousand dollars and it's only probably about .

a handful out there.

This uh it's actually in uh, washington that is to the yeah okay.

which is which is pretty know high costs living areas and big companies over there.

Have you done the have you done the math? We've got a really great calculator of basically how much home can I ford and you can plug the numbers and and see OK what do I need to put down and and basically you can work backwards to say, how do I get this payment to? Where is only twenty five percent or less of my take home? Have you done anything like that yet?

Yes, we have that. Would that way I would take us to you .

about two years OK.

That's a long time for you.

I guess. Yeah, I still look on behind in life.

Take you just graduated. yeah. Okay, how old?

And I just change twenty seven a week ago.

Can I tell your secret? That's not even a secret, but I might make you feel Better.

sure.

What if I told you that my husband, I rented for ten years before we bought a house and we didn't explode or burst into flames? Just let you know because you got to be able to afford, right?

Yeah but you know we're missing out every body and thirty thousand and well.

you know what I wish. Let's build a time machine. Let's go back in time, buy a house. When I was fourteen thousand dollars in order to build more equity, there's a lot of things we wish we could do, right? The best time to planned to tree with twenty years ago, the next best time today.

But that doesn't mean that you should get impatient and entitled and go we've got to get in now because we're drawn going money on rent. Learn to have patients, your twenty seven, go talk to a sixty year old and though you'll see there's a level of, I guess, the maturity that happens when you go, okay, not everything's gna happen on my time line. And I remembered eight, twenty seven, feeling like time running out. I have one year to do this in my career and hit this financial or else and then five years goes by in an incident like, oh, okay, I more patients I thought plus s there's .

the whole thought here of if you buy this house before you can really afford IT, you're not going to be thinking about equity. You're going to be focused on making the payment every month because it's gonna eat you alive if you even get to keep the house right. So you have to run.

You have to run this equation for what IT is. You cannot. And the truth is, you could buy a house before you can afford IT, but it'll be a problem for you. So makes sense to wait in two years. And the grand scheme of things is .

a drop in the bucket. And if you don't want a crappy house like you're kind of talking about a thousand square food, then don't then wait, save up more, get a bigger down payment, and that will lower your monthly payment. So that's what I would do, thousand shoes. And if you don't like the timing, we got to figure a way to make more and spend less, to create more margin, to save up faster. And so I would just turn this into a math equation that puts some fuel on the fire vers a well with me shaking our fist at the, you know, the sky god's .

you know it's it's a fn. Renting is a funny thing. I think that you can really enjoy your renting experience while you're renting. You know I mean, like there's more to life in in an instant then whether or not you're renting or buying. And I think it's really easy in a moment to kind of base your whole life and like whether or not you deem yourself successful in a moment or not, right?

It's like you're twenty seven years old, you got so much time ahead of you and you're gona look back on this and go, oh my gosh, I was so funny that I was so rushed at twenty seven to have a home because a lot of times we're coming like without even realizing itself, subconsciously were comparing ourselves to something else we've seen it's not even really just our race that we're running. We're thinking about what our friends have. We're thinking about what our cousin did or what the people on social media did. And you put blinders on. Yes, you couldn't see any of that if all you saw was the race that you have to run in front of you, you wouldn't be so side track by that.

If we said the average person takes seven years to buy first home, you did, oh, well, i'm doing great.

right?

So I I think we need to look at this class half full situation ago. Man, what a blessing IT is to be twenty seven, no debt, maxing out rafi e rys, maxing out H, S, S, and be able to buy house two years from now in a very expensive area. Yeah, I I suppose you right.

Yeah, that's pretty good way to think about IT perspective.

Man is a wild thing when you can change your minds, but you will be there no time. What's the household income?

Uh, after we put up four one k up.

And just the great house, all amaze.

Gross.

gross, I OK good.

That's great. And how .

long you been married?

Um we did a little bit one year university. You to go.

yeah, you guys are doing great. you.

Just take .

your great.

Yeah, you're in. You're doing great type. This is a lesson in patients.

What you think that is, George, I feel like more and more we get calls. And if I had to summer up, it's just like this race to get a house and be, you know, have wealth and like.

yes, just this well, is the nineteen year olds calling and saying, I need a million dollars by twenty five and I go, why? And I I don't know. I just, I I feel like I I need to or I am behind my behind on have you listened to the calls on the show? You like people are happy to have a million box in the next step by the time they retire. Who told you that time is running out? And then if you're renting, you're throwing away money and it's probably a mix of society, parents and tiktok at this point.

Yeah and do you I think it's great if you um I think it's great if you turn to your adult life, you've largely avoided dead or if you did have you paid IT up quickly. I think it's great when you're able to walk through the baby steps and get further at a Younger age.

I think .

that's amazing. And you just this rush to kind of like check these boxes. I just want to remind people to like life is a journey that is a.

is a highway I can see anymore because I can get taken off the air.

But right to speaking in of the ride.

it's almost over here. If you're listening on youtube podcast, if you want to finish the show, head over to the rainy network APP for the distraction free experience you can download in the APP store of you're choosing, or click the link in the shows notes to check IT out. But this rise over j, i'm sad to say it's been fun. And if you're on radio, hang tight will be here. But if you're on youtube podcast, go jump on the p will see you for a whole another hour of the ng show.

Hey, you're still here. What are you doing? You do know that the rest of today show is playing right now over on the rain network, a APP, right?

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