The Ramsey Show - App - A Rundown on Tiny House Economics (Hour 3)

Episode Date: September 19, 2019

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios. It's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thanks for jumping in. This is your show. The phone number is 888-825-5225. Dara starts off this hour, Atlanta, Georgia.

Hi, Dara. How are you? Hi, Dave. I'm good. Good. How can I help? Hi. I just had a question.

I just graduated from college in May. I'm currently living at home, and I started working in July. And so my only responsibility right now is really packing my student loans. And I'm just trying to figure out the best way to go about that. Okay. And so what did you graduate in? What's your degree? I have my BSN.

I got a bachelor's nursing degree. Okay, cool. Are you nursing? Yes. Great. What are you making? I'm currently making $26 an hour. Okay.

Mm-hmm. How many hours are you getting? Full time. So I work 36 hours a week. Okay. All right. And how much student loan debt do you have? I have about $6,000 on my salary and may loan, and I have $41,000 of that loan.

Okay. All right. Good. Well, here's the great news. You picked a great degree field, and you've obviously landed, you know, you passed your bars. You've obviously landed straight into a job. Very well done. You just get to work more.

You need to pick up another job as a nurse, ER, and some other stuff. You're only working 36. And so let's pick up another 30, and let's knock this debt out as fast as we can. Because you want to be done with this, don't you? Yeah, I kind of want to get it over with. Yeah, because I'm gonna rip the band-aid off guy if you're a nurse you understand that one right yeah yeah i don't want to i don't i'll just snap it off there just oh god you know that's what that's what you want to do here and get this over

with right let's get her done as fast as you can and uh so you can get on with the rest of your life because this is this is the only thing holding you back so you need what do you need you need 56 000 or 46 000 47 000 right yeah about 46 i already started paying on my salary mail on but all we need is 47 000 i mean you can do you probably do this in a year yeah if you're living at home working all the time. Because you can make more than $26 working a weekend. I mean, picking up, you're only working three 12s, right? And, I mean, some people call that a full-time job. But, I mean, the good news is you're only working three days. That gives you four whole other days to do something else, right?

Yeah. And just pick up some ER time or somebody, and they'll probably pay you more than $26. It's gross work, but it'll make you some serious bucks, and you can get done. So this is my question. What is your opinion about loan forgiveness programs or loan repayment programs? Because I am a public service person. I have the opportunity to do those. It's 10 years.

Yeah, it is. Why would you wait 10 years to start your life? Let's do it this year. One year. I just gave you a one-year plan. Okay. You got no life for the year, but you're done. It's a rip the Band-Aid off game.

See, because here's the thing. You can always work 312s, plus or minus other hours, if you want to, the rest of your life, because you chose a fabulous groove field. You can always make good money. I've been doing this for 30 years. I've never known when a nurse couldn't get a job. Every time I talk to a nurse, I can always solve their problem, because they can always get two jobs. Nursing, two jobs.

The second job is an awesome job. It might be better than the first job in terms of pay, but it might not be the second job is an awesome job might be better than the first job in terms of pay but it might not be the one you want to do for the rest of your life but you do whatever and you get get it done because you ain't got any overhead if you're living at home and do that for one year at one year from today though whether you're out of debt or not you got to move out you can't stay can't stay at mommy's more than one year nope that's my goal is to move out in a year or so you got it now i think you could be debt free by then but you're gonna but you i mean we're talking about you making like 70 or 80 grand in a year yeah well i mean the thing is that after after a few months i have the opportunity

for a pay increase. I know. I just gave you another one. It's called another 30 hours. Yeah. Yeah, potentially. I mean, well, I don't know. Potentially.

Let's see here. Let me just add this up here. Just a second. I want to put this in the calculator because I'm not sure. Maybe I'm wrong uh 936 and that's um uh four times 12 times oops uh well we'll do it six times yeah you see you're already making 46 000 yeah so why can't you just i mean because i because I'm telling you, if you go do ER, it's going to be like $36 an hour, not $26. And if you work $30 down there, I didn't make that number up.

I thought I hit it right. I just wanted to put it in the calculator because you were questioning it. But I guess I shouldn't. I'm the math guy. You're the medical girl. So anyway, yeah, you really can, like, double your income. So you're just going to get another job, tackle it in a year. That's what I've been saying for the last five minutes, yeah.

All right. You can do this. You can do this. Hold on. I'm going to send you a copy of the book, The Total Money Makeover, to show you exactly what to do and exactly how to do it, because that's living the dream, kiddo, because here's the thing. You go back to making 50 if you want. You go back kiddo because here's the thing you go back to

making 50 if you want you go back to making 60 if you want you go back to making 90 if you want you got another goal i want to buy a house i'll pay cash for it i'm gonna buy a car i'm gonna pay cash for it i'm gonna move out and furnish my apartment i'm gonna pay cash for it the good news is at the drop of a hat with your degree field you can go get a job what made you want to be a nurse i mean honestly I just like taking care of people. But, you know, the flexibility of it wasn't bad either. But my main reason was I wanted to help people out. But it is a very flexible field.

It is a very flexible field. It's a very lucrative field. And you get to help people. I think it's a wonderful career choice. I was just curious what led you to it. But very, very, very well done. Hats off to you, kiddo. You got a great start.

Get them. Get them. You can do this. Don't sit around waiting on the government to fix your life 10 years later. Good Lord, no. If the government says I'm here to help you, that means run. Okay. This is the Dave Ramsey Show.

This is how it's done, y'all. It's just a different mindset, isn't it? It's just a different mindset, isn't it? It's just a different. What if the only option for you to fix your life was you fix your life? Guess what? The only option for you to fix your life is you're going to fix your life. The bad news is you're the cause of the problems. The good news is you're the solution.

You can just change right now. You ready? Set, change. Ta-da, just like that. Ta-da, you just did it. You can just change right now. You ready? Set. Change. Ta-da. Just like that. Ta-da. You just did it.

All you do is just decide. No one's telling you what to do. No one's telling you what to think. You don't live in Russia. Just decide. Trump's not going to call you. Obama's not going to call you. Your congressman's not going to call you. congressman's not going to call you

they won't even return your call you are your solution you're your problem guess what I'm my solution and I'm my problem these days I'm more of a solution than a problem if you ask Sharon I used to be more of a problem

and she's right still got my issues but we air them out right here in front of 15 million people every day and we're glad you listen. This is the Dave Ramsey Show. Let's talk about low interest rates, baby. I know right now that Churchill Mortgage can get qualified buyers into a 15-year conventional loan for well under 4% with no discount points or no hidden fees. Listen, if you're even thinking about buying a home or refinancing, do it right now. These rates are incredibly low. Here's what I'd like you to do. Take 10 minutes and call Churchill Mortgage and see what you can qualify for. So even if you have

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Brittany's in Houston, Texas. Welcome to the Dave Ramsey Show, Brittany. Hi, Dave. Thank you so much for taking my call. Sure. What's up? So we're in baby step two. Me and my husband, he's 31, I'm 30. And we just moved from Wyoming and then Pennsylvania into Texas.

So we're currently trying to sell our house, but outside of the house we're about $98,000 in debt between our car loans and our credit card debt. And so we're renting our house while we're trying to sell, but we're kind of drowning in our budget. So we looked at trying to sell our car, but we're upside down on them. And so we're not sure how to sell our cars exactly in order to try to get out of the debt that we're in. How much do you owe on car number one?

So car number one is $33,000. What's it worth uh well kelly blue book says you know it's around 28 but when we went in he said the most he could offer is 26 that would be a dealer correct well dealers don't pay retail for cars they pay wholesale for cars because they resell them at retail so it's probably worth about 28 if you put it on Craigslist. Okay, what's the second car owed on what? The second car, I'm actually not sure exactly because that really wasn't on the table for my husband. But it was like, you know, somewhere between the same range.

So maybe like $35. Okay, I'm sorry. It's not on the table for your husband. What the crap does that mean? You guys are starving today. I agree. But he gets an allowance from work. What?

I'm sorry? He gets an allowance for work for his truck. So what? He's broke. I understand. Yeah, getting an allowance from work does not make owning a car you can't afford work. So what? He's broke. I understand. Getting an allowance from work does not make owning a car you can't afford work. Right. You don't have enough coming in.

I'm sorry. Go ahead. My car is $650 a month, and his is a little bit over that. Okay. What is your household income? So take-home, we came up with like about 78 000 a year um so your gross is about 90 and your cars are both absolutely asinine insane they both need to be sold right so it goes on the table okay a grown-up will look at this and say you cannot afford these cars so your husband's gonna have to be a grown-up okay this is ridiculous i mean now who do you owe the money to on these cars um so one is a lending tree is that is that correct i don't think they're any longer in

business and the other one i'm not sure of either but they're they're banks i'm pretty sure about that okay is your credit has it survived this debacle um mine probably hasn't but i think his has i think his is pretty different we're not like delinquent on any payments or anything, but, I mean, we're doing that every dollar budget, and we got your course. So we're about two weeks into your course. Okay, good. Well, you're going to need to talk to a credit union or a small local bank about getting a small unsecured loan to get both of these cars sold, and you're both going to have to get in some much, much less expensive cars, like $5,000 cars, and get this mess cleaned up.

Because these cars are destroying your life. Yeah. They were ridiculous. Yeah, and then we have our house that we're trying to sell. Yeah, the house is not the issue. A mortgage as well. Yeah. Okay.

The house is not the issue. These cars are, as a percentage of your income they're insanity i'm really i'm serious you you are going you're heading towards the wall you're going to hit the wall your life is going to disintegrate and you're never going to know what happened if you don't get rid of these cars they are really really really a problem i hope i've not been unclear because i really want to help you guys but i don't know if i can help your husband it sounds like he's a hard head right now so i've been a hard head too and the problem being a hard head is it caused you to hit the wall that much harder if you don't wake up and so this stuff is ridiculous They're out of control. You made really, really bad decisions with these cars.

The good news is you can undo the decision. You're going to have to amputate this crap out of your life so you can get your life back. Think about what if you had no car payments. Just think about that. If you just can swallow that into your spirit right now. I mean, you guys have probably $1,400, $1,500 in car payments. I mean, that's just nuts. There's no other way to describe it.

So I'm not picking on you. I'm trying to make sure I get through to old hardhead over there so everything gets back on the table because everything's going to get on the table and it's going to get off the table because we're selling them if you don't do that i predict years of problems in your future and i'm right minette is in baton rouge hi minette how are you hey dave how are you better than i deserve what's up um i have a question um my husband i I'm 57. My husband is 60. We just built a house. This is the second marriage for both of us. We've been together for eight years.

With this house that we're just building, my husband, his retirement is only, what he has in retirement is $85,000. And we have a choice with this house that we built to either pay $2,200 every month and be finished paying for it in 12 years or to pay $1,200 a month and pay for it in 30 years. And since the amount that I feel that is in his retirement is not what it should be, and will probably won't live another 30 years. Should we focus more on putting the money in his retirement and just pay the lowest amount on the house? Okay. What is your household income?

Our household income growth is about $142. And how much is owed on this home? $250. Okay. All right. And you really, in seven years, you're going to be at retirement age. Yeah, he's 61 right now. He'll be 67 and you'll be 65.

Yes. I'm actually on disability. I'm an RN and I had two surgeries. Okay. How much is in his nest egg? $85,000? Yes. How much is in your nest egg?

I don't have one. Okay. So you have no money. All right. You need to be saving 15% of your income into retirement, household income going into retirement. And you need to be putting everything else that you can squeeze out on this house. And if you cannot get this house on a 10-year schedule or less, I mean, you can put it on a 15. But if you can't pay on it to where it's going to be gone in 10 years, you built too much house.

Because you do not want to go into retirement with a house mortgage. Okay. So I think you probably built, but I think you built too much house. But too much debt on this house. What's the house worth? $250. And you owe $250 on it? Well, we just moved in about four months ago.

You owe $250 and you paid $250 on it? Well, we just moved in about four months ago. You owe $250 and you paid $250. You didn't have any equity to put down on it? Oh, yeah, yeah. I'm sorry. It's worth about $278. So you put down $20,000. No, we put more than that on it. Okay, $278 minus $20. We8 minus 20 20 percent down okay all right so you put 50 grand

down okay yeah 50 but that's all you had okay yes you bought a lot of house for how late you are in life with no money saved so um you're gonna have to roll up your sleeves and knock that mortgage out or you're gonna have to rethink this house. And I doubt since you just bought it and built it and moved into it, you're going to rethink it. I doubt that's going to happen on one radio call. But you're going to struggle if you get into retirement and you've got a $2,000 a month house payment and you have $8,000, $80,000.

But if you'll save 15% of your income for the next seven years while you're attacking this debt, you probably can knock it out. But it's going to be tough. It's going to be tough. It's really going to be the only thing you do. You're not going to be traveling the world, and you're not going to be buying purses with letters on them.

You're going to be paying off a house. Hope that helps. This is the Dave Ramsey Show. Business leaders, if you're not using LinkedIn jobs, you're missing out. Our Ramsey Solutions Company page on LinkedIn has over 100,000 followers. That's 100,000 potential like-minded people our team communicates our current openings to. We also post our jobs on LinkedIn because we know the best candidates already have jobs. And LinkedIn makes it easy by doing the legwork for you. It's no wonder a hire is made every eight seconds on LinkedIn. And over 600 million members visit LinkedIn to make connections,

learn, and grow as professionals, and discover new job opportunities. Get started today with LinkedIn Jobs and get $50 off your first job post. Visit LinkedIn.com slash ramsey terms and conditions apply so In the lobby of Ramsey Solutions, Nathan and Alicia are with us. Hey, guys, how are you? Doing great. Thank you. Welcome.

Where do you guys live? Independence, Missouri. Love it. Welcome to Nashville. And all the way here to do a debt-free screen. Yep. How much have you paid off? $62,000.

Good. And how long did this take? 30 months. Good for you. And your range of income during that time? $55,000 to now $110,000. Whoa, doubled it. Yeah.

So somebody get a job or what? Yes. Okay. I went back to work. Okay. What do you do for a living? I'm a nurse. Okay. I went back to work. Okay. What do you do for a living? I'm a nurse. Okay. I'm a firefighter. Perfect. Thanks. Good for you guys. What kind of debts, the $62,000? Well, we had student loans. We had a basement repair. We had car repairs.

We had two vehicles, credit cards, just the normal. And then we had our kids on credit cards, too. We had adoption debt and IVF debt as well. Wow. Wow. I mean, you had every kind of debt out there. Yes. You were like normal on steroids. Yes, pretty much.

How long have you two been married? Just celebrated 10 years in June. But two and a half years ago, something happened. What happened? Well, we had nine-month twins at home that had just gotten out of the hospital. Six months before, they were born at 29 weeks. We had a three-year-old at that point in time with 22Q deletion. And we wanted to do so much more for them. And we just couldn't. we were playing credit card games

and just didn't and so we borrowed the hundred dollars from my mom over there and took financial peace and did it wow wow so you you said we're tired we're broke we're sick we're sick and tired of being sick and tired yep uh we're going going to class. Mom gives you the money. You go to Financial Peace University. And then what happened? We drank the Kool-Aid. Okay. It was a little slow at first, but I think for a while I didn't want to get rid of those

credit cards. But once I bought on the whole thing, going through the class and getting gazelle attempts, starting everything, just looking at it differently. And then I went back to school. That was part of that money is that I finished my RN. I had my LPN, but I finished my RN during that time so that we increased our income. Way up. Yeah.

You changed the size of your shovel dramatically during that time. Most of it was that last year once I graduated. Basically, you increase your income $55,000, you pay off $62,000, so you did most of that in the last year. That makes sense because you just shoveled the whole thing onto that. Yeah. Okay. Very cool. Very cool.

How hard was it to go back to work with babies like that? It was hard to adjust, but over the time I i learned i'm not a stay-at-home mom i'll be honest with myself okay um i love my babies dearly but it doesn't mean you don't love them if you want to have a career exactly and i had been told that um by a lot of people and so you know i had to get through get past the work and mom guilt yes very much the guilt trip that's out there. Yes, exactly. Well, good for you.

We need good nurses. Yes. So good. I'm glad you're doing this. Yep. Good for you. Not everybody has to work outside the home, but some people want to. So there you go.

Okay. And in your case, it doubled your household income and cleaned up this mess. Exactly. And you'll be able to do for these kids in a way that you wouldn't have been able to otherwise. Yep, exactly. Well done, y'all very very well done so how does it feel to not have any payments you guys have been under the thumb for a long time yeah it's amazing we can start working on retirement and getting ready for the future and get these kids um college taken care of and not have that over our head you know just trying to pay for the couch or the car or whatever

else. We don't have that. Will you ever go back in debt? No, no, absolutely not. Been there, done that, played that game for years. Yeah. Were you ever debt free during your marriage until now? Oh, absolutely not.

It was, it was as soon as we paid off one card, go out and get something else at the place, put it back on the card. I mean, it just was normal for us. Exactly. Yeah. We can't be without a payment. We have to fix this. Yeah.

Yeah. I hear you. Well, well done y'all. Very well done. What do you tell people the key to getting out of debt is? You have to want to and have a why and have a plan and have a budget and follow all that stuff. That's big.

That's big. You got three beautiful little whys, right? Yes. Yes. That's big. That's big. You're a Y. You've got three beautiful little Ys, right? Yes. They are definitely. Very fun. Good for you guys.

I'm assuming Mom helped with the money to go to the class. I'm assuming she was a cheerleader. Who else was a cheerleader? We had a big group of people from church through FPU. Yes, their whole church. And then we had a couple guys from Nate's Fire Station, McNabb and Simpson, that were like, I told you so.

Yes, they used to see me sit there and mess with the credit card game of trying to make a few points. And now I have all that time back to us. They've been trying to convert you for a while. Several years. I've heard of you for a while. Yes. Several years. Her to do that. I love it. Very good. Very

fun. Good for you guys! And you brought the kiddos with you. What are their names and ages? We've got Robbie, that's six, and we've got twins, Dean and Ruthann. Okay, and Dean and Ruthann are how old now? Three. Three. Alright. Very fun. Good for you guys. Well, we've got a copy of Chris Hogan's book for you, and Dean and Ruthann are how old now? Three. Three. All right. Very fun.

Cool. Good for you guys. Well, we got a copy of Chris Hogan's book for you, Retire Inspired. That's the next chapter in your story. And it's Robbie, Ruthann, and Dean. Nathan and Alicia, Kansas City, $62,000 paid off in 30 months, making $55,000 to $110,000. Great story. You guys changed your family tree.

I'm proud of you. Thank you. Congrats. Count it down, kids. Let's hear a debt-free scream. Are you ready? Are you guys ready? Three, two, one.

We're debt-free! Well done. This is how we do it. Did you hear that sound? Did you hear that sound? Did you hear that sound? Don't miss it. It was there.

It was real clear. It was the sound of a family tree being changed. You have the dignity and the ability to just decide to change. You could be the last one in your branch of the family tree that lives hand to mouth. You can decide that. Now, sometimes bad things happen to people, I know. I've had bad things happen to me, and in some cases it was nasty, crooked people doing things, and in other cases it was my own stupidity that I brought it into my life. All of us got a little of both, don't we?

I'm afraid I have more stupidity than I do nasty people around me, though. I've shoveled most of both out of my life, and the more I keep away from nasty people and I keep away from my own stupidity, the better every area of my life gets. My spiritual walk, my relationships, and the wealthier I get. Because the thing that steals your money is your own stupidity and other nasty people. And you have to learn how to put up the shields and keep the crooks away from you, the people that have a vested interest in taking your money away from you.

And you have to learn to protect you from your biggest enemy, which is in your mirror. That gives you the ability to change your family tree. You can do this. People just like you do this every day. Dave, you don't know about where I do, too. Man, I've been doing this a long time. Five million people have been through Financial Peace University.

You don't think we've seen people like you? We've seen people dumber than you. We've seen people that got messed over more than you. We've seen people that had bigger challenges than you've got that still made it because they made a decision. Is it easy? No. Winning is never easy. If it was easy, we wouldn't call it winning.

It's just worth it. The hustle, the grind, the grit, the living like no one else so that later I can live and give like no one else. No discipline seems pleasant at the time, but it yields a harvest of righteousness. You get to decide. Ready? Set? Go. We really value your input. It helps us to know what's important to you so we can deliver relevant content to help you crush your money goals.

We just launched a brand new survey, and we'd love your feedback. It only takes a few minutes, and you'll be entered to win a $100 Amazon gift card. No purchase necessary. Take the survey at DaveRamsey.com slash survey or text survey to 33789. Our scripture of the day, Psalm 56, 3 and 4. When I'm afraid, I put my trust in you, in God, whose word I praise. In God I trust, I am not afraid. What can mere mortals do to me? Maya Angelou said,

Courage is the most important of all virtues, because without courage, you can't practice any other virtue consistently. Michael's in Phoenix. Hey, Michael, welcome to the Dave Ramsey Show. Hey, Dave, how are you doing? Better than I deserve. How can I help? My question is, we actually moved in with my in-laws and my wife's going back to school. And we're working on paying our debt off and becoming debt-free.

Good. And we're upside down in our vehicle, and we walked away with about $70,000 from our house. And I'm just wondering, should we take some of that money and pay the car off, or would it be better to sell the car and pay the difference? How far are you upside down it's worth maybe 20 and we owe 30 on it okay where'd you get the maybe 20 hey that's just doing a little bit of market research seeing we have a little more miles on ours than the others do so it could be a little less yeah so what i would do is jump on kellybluebook.com and look at a private sale

appraisal on there it takes you about 10 minutes and that'll give you a more accurate than a um than a wet finger in the air on what the car is actually worth uh what's your household income uh right now she makes 45 and i'm making 35 000 actually going to be going part-time to start nursing school. Okay. So a $20,000 car, even if it were paid for, probably doesn't really fit in your all's life with your income right now, right? Correct. You wouldn't buy that much car with this situation. You're just in this much car.

And you have $70,000 cash in your hand. How much so uh and you have seventy thousand dollars cash in your hand how much other debt do you have uh we have about three thousand dollars in credit cards okay so you've got enough to pay the car and uh get rid of the car and get you about a five thousand or a ten thousand dollar car that you pay cash for right yes so that will use up about 15 of your money. So we're going to use up about 20 of your 70 to do all that. How are you paying for school? Right now we're paying it out of pocket. Good.

What does right now mean? You're not planning to do that all the way through? If we can, we'd like to. She has $25,000 student loan debt already, so we really don't want to add to it. From this school or from the last one? No, it's from a previous degree she got. Okay, how much other debt do you guys have?

I have a student loan that's about $2,800, and that's all we have. Okay. I would go ahead and pay yours off, but she can delay hers while she's in school, and I'd pay off the car and pay off the credit card and be debt-free everything but her student loan while she's in school, and then I would raise my right hand, and I would use this money for her to go to school if you have to. I would not borrow another dime.

Okay. The only way to get out of debt stop borrowing more does that make sense make perfect sense yeah so we got it we're going to clear up everything but hers until she gets out and then we're going to use your income her income to feed the family and hopefully we can cash flow and not mess with this house money any more than we've already messed with it just now. Right. But I would rather use that than I would go in debt. Okay. Make sense?

Makes perfect sense. Thank you, sir. Samantha's in Green Bay, Wisconsin. Hi, Samantha. How are you? Hi. Thanks for taking my call. I'm good.

Good. How can I help? I just found your program a couple of months ago and am trying to avoid making another bad financial decision. Okay. And I've started saving up for a house. Good. And I would really like to buy a tiny house.

And I know you say those are depreciating assets because it's on wheels. And so I just want to – The tiny house is on wheels? Yeah. I don't know if you've seen any of the programs, but they're like on a trailer. It's built like a real house, but you can move it. Oh, I know what a tiny house is, but I didn't realize you could move them. Okay.

Yeah, you can hook them up to like a pickup truck. Gotcha. Okay. That's not the problem. That's not the problem with those. What I'm referring to with wheels is the mobile home, a trailer. Okay. Yeah, you would live in a trailer.

And they go down in value for sure. I don't know if tiny houses will go down in value or not. I just don't think they're going to go up in value like a traditional home, and I wouldn't tie my money up in it for that reason. Okay let me tell you how i want to base that on okay what makes something go up in value is the more people that chase that item the more it shoots up in value you know what i'm saying if something is scarce and there's a lot of people chasing it. That drives the price up. Does that make sense to you? Yeah.

That's basic econ 101. But if there's a flood of things, then it becomes cheap if there's too much of it. The problem with tiny houses is not that they're evil or something like that, but there's going to be a very small percentage of the population that buys houses that are going to be interested in a tiny house and so you don't have very many people chasing them that's going to make them not go up as much as a traditional house a lot more people will buy a regular house would you agree with that right which means that there's a lot more market for the regular house,

which means it's going to appreciate more. And so I would not buy a tiny house if I were in your shoes. I would rather see you rent a little while and save up for a down payment on a more traditional home purchase and get you a 15-year fixed mortgage or less, or just save up and pay cash for it if you want to. But I think you're going to have a harder time selling the tiny house, and I'm positive of that, and a harder time than a traditional house

because there's fewer buyers. And as a result, they're going to not appreciate as much, if at all. I don't know what they're going to do, but it's a simple econ lesson from the seventh grade that says, you know, it's a supply-demand curve is what it's called. When there is a lot of demand for a limited supply, it drives price up. When there is a limited demand for a supply, then it drives price down. And so it's very simple that way so something that's rare versus the number of people looking for it drives the price up and that you know that's what's going to happen here there's no way around it lane is with us in casper

wyoming hi lane how are you good Good, Dave. How are you doing? Better than I deserve. How can I help? Well, a series of bad decisions has led me right to you. I quit my job, and I'm trying to make the right decision with my 401k. Okay. You quit your job. Do you have another job? Not currently. My wife is working.

Oh, okay. What does she make? My wife makes $50,000. How much? $50,000 a year. $50,000. Okay. Can you live on that?

No, not in our current situation. Okay. All right. So we've got to change your situation or you've got to get a job? That's where we're sitting. The idea is to be able to chase a passion, and to do that is to eliminate the debt, and then maybe be able to do that on her income. How much debt do you have?

Well, it's hard to say. We lost our house, and that's still under foreclosure. Mm-hmm. Without that, $63,000 roughly. Mm-hmm. On what? Two vehicles and credit cards and some medical collection. How much of the 63 is the vehicles? Most of it. So sell them.

Get rid of them? Yeah, if you want to chase your dream, you've got to get rid of the debt, right? If you cash out the 401K, they're going to charge you a 10% penalty plus your tax rate. So you're going to be hit with about 30%. That's like borrowing money at 30% interest to pay off your debt. That's not chasing your dream. That's just dumb. That puts this hour of the Dave Ramsey Show in the books.

Our thanks to James Childs, our producer. Blake Thompson's our senior executive producer, social producer, and phone screener. I'm Dave Ramsey, your host. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey guys, it's Blake Thompson, senior executive producer for the Dave Ramsey Show. This hour's over, but you can find more great content on our YouTube channel. Catch the most watched Dave Rants, deathly screams,

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