The Ramsey Show - App - Is My Job Offer Too Good to Be True? (Hour 2)

Episode Date: August 14, 2020

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studio, this is the Dave Ramsey Show, where America hangs out to have a conversation about your life and your money. I'm Chris Hogan, and hosting along with me this hour is Ken Coleman, and we are excited to be with you, and we are ready to roll. If you're out there and you've got a question on money or career, I want you to pick up the phone right now and dial it. The number is 888-825-5225. Again, that's 888-825-5225, or find us on social media at Ramsey Show. You all have already sent some questions in, and I'm excited. Coleman, are you ready to'm ready I'm warmed up two hours of the Ken

Coleman show already in the books so as you would like to say stretched you are no you're you're in the zone yeah yeah I'm excited I mean let's go okay we got people to help well and listen I know people are out there with career questions people want to know hey is this the time to make a move is this the time to make a shift or do you stay put listen you've got the man in here that can guide you with your career right now. All you have to do is pick up the phone, and we're ready to talk to you. So let's get to the line. We've got William on the line. William, how can Ken and I help you?

Hey, guys. Thanks for taking my call today. I'm having a little bit of trouble deciding what to do right now. My wife and I are in the midst of intercept two. We have about $15,000 left on her student loans and a car payment. I'm active in the military. We combine around about

$36,000 a year. We just had a baby boy. He is three months old this upcoming month. Congratulations. My question is... Thank you, sir. My question is really... I'm also. So my, my question is really, um, I'm also a full-time student after work, uh, a junior in college, and my wife is doing a medical billing and, uh, coding program. But my question is, do I pick up a weekend job that would reduce

the time to pay off all of our consumer debt by 50 percent or do i spend that time with my wife and son on the weekend ah is this your first son first child this is this is yes sir well i think it's an easy choice hogan i think he does it i think you do it as long as as your wife is on board with it uh if she's got some help because because she's going to be tired, too, exhausted. But your son's not going to know that you're not there. So if there is a time for you to work the third job, essentially, because I think school is a full-time job for you as well. So you've got three commitments here. Now's the time to do it, Chris, because, again, his son doesn't know whether he's there or not, and he's going to reduce that payoff time by 50%.

Yeah, that's gazelle intense from where we come from. It really is. William, what's your wife's thought about that? So she's supportive of me. She thought about potentially picking up a weekend job instead of me, and we kind of discussed that and decided that she would probably be better set off to stay home with the baby and take care of him. Right. And she would support me if i decided to do that because she's gazelle intent as well right and we're just we're tired of paying this stuff off we've been we paid

for two years made less than a thousand dollars in it and then this past month uh we paid off six thousand dollars that is fantastic my friend so how much of it is student loan debt of the 15 all of it actually right now so we had her15,000? All of it, actually, right now. So we had her car payment, which we owed about $4,500 on that. We paid that off, and then she had two smaller student loans, and we paid those off yesterday. Man, I'm proud of you guys. $15,000 total. Yeah, no, I'm very proud of you guys, and I'm with Ken.

I think the opportunity for you to make that sacrifice right now while your son's three months old, it'll be valuable because you can have this debt out of your life by the time they're seven or eight months old, and now you've got the time to be able to spend with them without the debt over your head. It's a no-brainer, my friend. You know, you digging in, and thank you for your service to our country, first and foremost. But you digging in, and as long as you and your wife are on the same page, I think it's a fantastic opportunity. All right, everyone.

I want to let you know, Ken is sitting in here with me, and he is doing a couple of shows. You've got the Ken Coleman Show, but then you also have the Work Matters. What's that about? Yeah, so Work Matters is a podcast, short-form podcast. It's about four to six minutes, and it's a daily podcast. And it's focused on work trends economic trends specific practical things that you can do to win in the workplace and it's a part of our youtube show we're we're live on youtube as you know every day monday through friday and the first part of that show

is that type of content so what we do is our amazing team takes that first segment of our youtube show which people can watch on YouTube, 12 Eastern every day, Monday through Friday, and we put that out as a podcast. So it's short form designed to give you the edge. That's fantastic. And also, I want to let you know, got a lot of people out there facing unemployment. A lot of people out there looking and going, man, I've got to get a job or I'm ready to

jumpstart my career. I want to also let you know Coleman has a Get Hired digital course that's available right now. You can go to KenColeman.com to get it. But the course is only $19.99, Ken. I mean, what all are you going to get inside of the course? Well, we're going to teach you everything from the resume, how it needs to look so that it gets noticed. We're going to teach you how to prepare for your job interview so that you actually perform noticed. We're going to teach you how to prepare for your job interview so that you actually perform well. We're going to teach you how to follow up. We're going to help you with connecting,

which is the currency to actually getting where you want to go. It's an 11-part video series taught by me. You can watch it as many times as you want. And as you said, it's only $20, and you're facing about 20 million people out there trying to get hired right now. 20 million. Yeah, that's the round number right now about where we stand. So give you perspective on that.

If those 20 million people all submit 10 resumes, and that's a reasonable number, probably low, well, then you're looking at a sea of 200 million-plus resumes that are floating around. So we're going to give you the entire perspective on what you need to do to get noticed so that you can get hired, whether that's the short term, I need a job to get stable, or the dream job. That's fantastic. So again, let's give yourself a leg up by having an opportunity to get this course, get plugged in. Again, that's at KenColeman.com.

It's only $19.99. Get hired course. And listen, you may know someone in your family that's looking for this. And it's not just for people that are out of work. You may have someone that's entering the job market, a new college grad. I mean, this is the kind of information that will help you all the way around. Speaking of which, you've got to pay $20 for that, which is a steal. But you've got the free investing guide, the Everyday Millionaire's investing guide,

your step-by-step playbook, your playbook guy, college football guy, you like playbooks. You like opening up, going, if we run this route this way, you're going to be open. All you do is catch the ball. And that's what you've done for investing. And that's free at ChrisHogan360.com. Yes, sir, it is. An opportunity to learn so much,

so many words, so many acronyms in the financial world. When we understand more of what we're doing, we can understand what we're willing to do to get there. So, yes, you can check that out. And the market right now, it's important because the market right now, despite the topsy-turvy, rollercoaster economy that is attached to COVID, the stock market continues to do well. So is now as good a time as any to be investing? It really is. You should definitely be plugged in.

You should understand that the goal is to grow money. I mean, that's the bottom line. That's why we invest. And so compound growth is a beautiful thing, but you want to know what you're doing and, more importantly, why. And so you've got an opportunity. Again, go over to my website, ChrisHogan360. You can plug in and learn more about it. Quick question for you.

Yeah. How can the economy be rough but the stock market be strong? You can't answer that in 30 seconds. Oh, I really can. Here's the reality. Everything is on a delay, right? We've got more goods and things being sold right now. Businesses are running, even though we've got this issue inside of the economy. So why is that? Products are being sold. People are still buying. Supposedly, we've got people unemployed, right? Businesses not happening. I think it's a little bit of a delay. We'll talk more when we come back. This is the Dave Ramsey Show. folks i love telling you about well-made well-thought-out products today i'm talking

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To learn more and get this month's Dave Ramsey special, visit GRIP6.com. That's GRIP6.com. Hello, everyone. This is the Dave Ramsey Show. I'm Chris Hogan, and hosting alongside me this hour is Ken Coleman. And we're taking your calls, talking about career moves, talking about your life and your money. Just know you can call us. The number to call is 888-825-5225.

Again, that's 888-825-5225. You've got an opportunity to reach out to us at any time. Kelly is standing by ready to help you, and we're ready to talk. So let's get to the phones. We've got, let's see, Reba is on the line. Reba, how can we help you today? Hey, guys. Thanks for taking my call.

So I have a question about my husband's old collections and some medical bills that aren't showing on a credit report anymore. We're trying to start getting the debt snowball rolling a little bit more and trying to figure out whether something might have happened to those medical bills if they fall off at a certain amount of time or something like somebody had tried telling us or if there is some way to track those down to make sure we clean them up. Yeah. Reba, how old are these medical bills? Well, my husband is going to be 30 in April, so they're probably from when he was 18.

Okay, so a long time ago. And what is causing you all to look at trying to clean this up right now? We've been looking at houses for a few years now, and these collections and whatnot always get in the way. I finally mostly have him on board to start working on cleaning all this up so we can actually look towards getting ourselves a nice place at some point. So were you turned down because of these things? Yes. Okay. All right. He's got more than just medical bills there. There's at least $6,300 in collections there and four or so collectors that

we don't know amounts for as there's like 13 lines of credit or so. All right. So here's the reality. If you ever get denied credit in that way, you're going to get a turndown notification and it's going to kind of allude to as why. But I want you to know this. There are three credit repositories out there. There's TransUnion, there's Experian, and there's Equifax. Typically with lenders, they're using what's called a tri-merge report. So they're looking at a report that is kind of the combination of all three of those. What will happen is people will only get one copy, say the Experian, and that has a list of trades just that are reporting there. But there could be other things that are actually out there.

So you want to get a copy of your tri-merge, a copy of all three, TransUnion, Experian, and Equifax, to be able to see all the things that are there. Now, as you start to see those creditors listed, what I would suggest that you do is you want to reach out to them and get what's called a verification of debt. You want to verify that they are actually the debt holder and the dollar amount, uh, and know exactly what it is you're dealing with. Once you find out, because it could have been sold off, uh, to another, uh, collector Reba or collections company. So you want to hunt it down, get that information, verify it. But when you get ready to pay it, I want you to pay with a cashier's check.

That way you can make a photocopy of the check as well as the letter that was verifying the debt. Then once you pay it off, you have a file because it'll take them about 30 days for that to update and to make sure that your credit is reporting accurately. So it'll take some time, but please make sure the debt gets verified before you start writing checks. Otherwise, what will happen is you don't know where the money is going and you don't have any record. All right. Thank you for that call. For you, the others that are out there, again, that's a tri-merge report. Equifax, TransUnion, and Experian to be able to see exactly where you are, what's going on, and again, verifying the debt just will authenticate that you actually owe it. And it also allows you to see if any extra

fees have been tagged onto it over the years. All right, back to the phones. We got Arturo on the line. How are you? Hi, Chris. I'm doing good. How about you? Oh, I'm doing very well, my friend. How can Ken and I help you? Well, thank you so much for taking my call. I work for a university, and I have a student loan that I have now. Yeah, sorry. So I can do the public service loan forgiveness program under the university. And I've got about eight years left on that. The loan's about $54,000.

And I'm putting into deferred compensation for work for about $200 a month. So I'm wondering if that would even be worth to stop doing that to pay off the student loan or just continue on the eight-year plan. Okay, gotcha. Listen to you, my friend. Oh, the student loan forgiveness. Listen to me. I have heard more nightmare stories of people that have bought into this and have been down that path for like three years, and then the plan gets changed or something gets tweaked and they get the rug proverbially ripped out from under them. I'm going to tell you this, my friend, I would stop that deferred comp. I would shift that money toward that debt and not even play the game with the eight years. I firmly believe you can pay off

this $54,000 long before eight years, right? And that way, and Ken can speak to this, in your career trajectory, you may have other options somewhere else where you can make better money. So there's no sense you locking in with this institution for eight years, hoping this program is going to work, because it's not. Okay, 1% of those things end up panning out. I would say pause it, get intentional about attacking the debt. Yeah, you know, this is a bit of a mirage, you know? You know, it's a mirage. You look out there in the desert, it looks like this beautiful 5'6 palm tree cluster and a waterfall that's coming out of a rock formation that is in the middle of the desert.

And it seems like, well, this makes tons of sense, actually. I'm going to take this unbelievable mirage opportunity that's been dropped in my lap, and the bottom line is going to turn into a nightmare. And we want you to take control of your future, not put your future in the hands of a government forgiveness program. That's what Chris is saying, and he's absolutely right. Move forward and pay this thing off well before the eight years of forgiveness would actually happen and i think you'll find that you're so much freer you know because in essence it seems like a really good

deal but you know what it does it change you that's exactly what it does to the eight year forgiveness yep and then you start tolerating you start tolerating stuff at that institution that you know you don't want uh you feel like you're stymied because you're it just free yourself yeah free yourself, free yourself up, get this thing attacked. Take on a second job if you have to, my friend, but don't fall for that. I truly, truly mean that. It is mind boggling how many times people have bought into that thinking these programs

are going to work. And I'm going to tell you, they'll find a nuance. I had a lady that was a school teacher. She was told that if she taught in the school district for 10 years, it would be forgiven. Lo and behold, she'd been there about seven, doing it, doing it, doing it. And one of the payments that she made was posted four days late by the company, not her. And they were kicked her out of the program. Okay. And so she had to scratch and fight and battle. They finally kind of made an exception, but it's that kind of red tape that you don't want to play with. So you free yourself up.

You be intentional and know what you're doing. All right, listen. This is the time of year where rates are down. Mortgage rates are down and everyone's thinking, Hogan, this is time to buy a house. First of all, listen to me. You don't want to buy a home just because rates are low. You want to buy a home when you're financially ready. The last thing you want to do is add a headache and heartache to what

you thought was a dream. So you want to be intentional. You don't want to make a dumb decision with zeros at the end. Most people will make choices based on feelings and opinions. When you buy a house, you don't want to do that. You want to make a business decision. So you want to get the facts. You want to know what you're dealing with and why. So find out what you can actually afford, research what's going on in home prices, but most importantly, you want to talk to a reputable realtor in your area. So never again buy a house without the facts. Our team has created a one-stop shop for everything homeowners need to buy. Just visit DaveRamsey.com slash homebuying. Let me say that again.

That's DaveRamsey.com slash homebuying, and you'll get an opportunity to get the answers you need to make some smart decisions. Buying a home is one of the largest monetary decisions you're going to make. You want to make sure you're making that decision with your eyes wide open and knowing exactly what it is you're dealing with to avoid some heartache and headache. Because, Ken, I don't know anyone that's ever bought a home, especially that first one, and you realize some mistakes you made. Boy, oh boy. Emotional.

Yeah, and then here's the deal about being able to afford it. You could buy everything, do it the right way, no mistakes made. But then you get in there and you discover there's a whole wall that needs to be ripped out because of water damage or whatever. House happens. That's my phrase. House happens. House happens. And so if you can afford it, then when house happens, you go, well, that's disappointing, but we're going to get through it.

So there's that little wrinkle that Chris is talking about. You've got to be able to afford the fixes. I like that. House happens. Stay tuned, people. This is the Dave Ramsey Show. Welcome back, America. You're listening to The Dave Ramsey Show. I'm Ramsey Personality, Ken Coleman, host of The Ken Coleman Show on the Ramsey Network.

And I'm joined this hour, helping me host this hour, Chris Hogan, Ramsey personality, number one best-selling author of two books, the latest, Everyday Millionaire, Retire Inspired before that, and he's also the host of the Chris Hogan Show, a part of the Ramsey Network as well. We're taking your calls this hour. We'll talk money. We'll talk investing. We'll talk life.

We'll talk career. We are here for you. 888-825-5225. The number, 888-825-5225. Our blinds.com question of the day is coming right up. Blinds.com's 100% satisfaction guarantee means even if you mismeasure, and I'm the guy that does that, or pick the wrong color, they will remake your blinds for free. You get free samples, free shipping, and with the new promos they run every month, you'll save even more.

Use the promo code RAMSY to get the best deal. Rules and restrictions apply. Chris, today's question comes from Nancy in Minnesota. She went to DaveRamsay.com to ask, We are on baby step four through six no debt except the house is it wise to put all of our energy into paying off the house then cash flow the kids college oh okay so mindset nancy is this we call it baby steps four five six this is these are the steps that you're doing all three at the

same time. Now, here's the reality. I love the idea of you paying off a home and having that bad boy paid for outright. However, I think it's smart from a timing aspect to be putting money aside for college. So look at your budget, come up with the dollar amount that you're going to save toward college right now, but still be intentional about attacking the house. That'll put you in a position that you could cash flow if you need be. But I want you to take advantage of compound growth of utilizing the ESA educational savings account or the 529. So still stay focused on it. Put some money aside, but still stay focused on attacking the house.

So you can do both. You can be intentional. I don't want you to pick either or. Good question. That is a really good question. All right. Let's get to the phones. You've got questions.

We've got answers. We've got Megan on the line. Megan, what's your question for Ken? Hi. I need some guidance on a possible change in my job. All right. changed in my job. I got offered a new job for about a $20,000 raise with going from, you know, government to private sector. So same career field, just different company. And it just happened really quickly. I applied and got the job in one day. Wow. But I haven't accepted it yet.

Yeah. Well, you know, you're calling because you've got a little bit of fear, is my guess, or if it's not full-blown fear, a little bit of worry. So let's examine what are you worried about? Because on the surface, I'm hearing same field, same job, essentially, $20,000 increase, and here's the best part. You're going from government to private sector. I'd almost take it just for that, but hey, I'm a limited government guy.

We will not get derailed by that statement. So what are you worried about? My biggest fear is it's not a guaranteed 40-hour work week in the wintertime. Okay, so hold on. So does that mean that then the pay moves with the amount of work? Is that what we're talking about? Yes. Is it a commissionable job, or explain how that's working to me.

It's outdoor work, so landscaping. Oh. Okay. um okay care maintenance stuff like that okay and during the summertime and then wintertime is you know you're based on snow but they say they contract with other companies that have an agreement to hire their employees during the wintertime so they do have that. Okay, so make sure I heard you. Let's see if we can get that phone as close to your mouth as possible. So you are being told that the work is obviously seasonal, but they've got a plan in place for all of their people with other companies, and this is a part of their normal mode of operation, correct?

Correct. So then they would have to be lying for you to be worried about this. Have you talked to anybody who actually works there? Before you accept this job, I would talk to some people that work there and go, hey, have you ever seen this not come through to where you're stuck and you don't have a job come winter? That's a good option. That's what you need to do. Do your homework on this because they're either telling you the truth or they're not. There's nothing, you know, and I get why you're a little bit worried.

But, I mean, this gets down to any other decision you would make where you would need to do your own investigation. This is limited investigation here. And just make sure that you go, okay, this makes sense. This is not some sort of too-good-to-be-true scenario here. It's really not. If, in fact, these other people verify, yep, they take care of us every winter. And I would think that they would. Because this is – I don't imagine you have mild winters in Sioux Falls, South Dakota.

You know what? That was one of the things I was thinking because I've been to South Dakota. Yeah. And it was wintertime, and I was like, goodness gracious, I need to get inside. Yeah. I mean, there's no grass being cut or flowers being planted in Sioux Falls winter. So I just think you do a little bit of research. Ask them maybe a couple of questions like who are the type of companies that you place your

people with uh who you know and let me learn a little bit more about them just do a little bit of investigation but but i would do this and here's what i here's your backup plan so let me give you a backup plan if in fact chris the worst case scenario would happen okay because this is how we overcome fear we play fear out we go what's the worst that can happen yeah all right so let's say that they their contract falls through and they come to you and go, hey, we can't help it, COVID, craziness, whatever. Whatever the excuse is, and they go, we can't place you. You've planned for that. The worst case scenario is if that happens.

So you're thinking now, or over the next two to three months, what are some places that I could go to quickly? And so I'm saving. I'm sacrificing a little bit until I get through my first winter. And I've got a couple of options lined up that if I had to hustle, I'm going to be okay. And so then you ask the question, if I do this, am I going to starve? The answer is no. If I do this, am I going to be homeless? The answer is no.

And so we play fear out. Fear is a liar. That's right. Let's deconstruct it. Focus on the truth, which we just did. I think this is a no-bra homeless. The answer is no. And so we play fear out. Fear is a liar. That's right. Let's deconstruct it. Focus on the truth, which we just did. I think this is a no-brainer. I'd do it. That's good.

After the investigation part. No, and Ken, tell me this, because I think a lot of people can get caught up in this. What does the investigation look like? As you're looking up a company, you mentioned calling. And again, that might be difficult to find you know people that work there so what are some things to do a couple ways uh so we're gonna go on facebook instagram and we're gonna go hey uh all my friends out there do you know anybody that works at xyz landscaping gotcha that's one option the other option is is that uh do you know anybody that

works at xyz landscaping that you'd be willing to connect me to? And, you know, I just need to talk with them. You know, what have you heard about them? So they know. People know people. Yeah, they do. And so you go, well, do they like this place? What do they do?

And so you can either ask for the connection or just say, what do you know? What have you heard from them at the cocktail party or at the football game or whatever it is? Right. And then I would also go online, and I would look and see you know what's out there and you'd be surprised you know these indeeds these glass doors you know look for it what are vendors saying about them uh what are customers saying about them what are former employees saying about them if there's a whole lot of warnings you won't look very far to find them okay and so that's when you go okay this is a reputable company they mean what they say right i don't have the concern that she has right because it sounds like to me they've

been through this a few times yeah they have and the weird thing was is that she straight up knew it was twenty thousand dollars more than what she's making however that they had the caveat of in the winter time and i'm going wait a minute this Sioux Falls. Wintertime is like 90% of the time. This is real. This is the situation. It's their normal mode of operation. They're not going, well, you know, the Farmer's Almanac said we might have a mild winter where we only have 50 feet of snow.

You know what I mean? This is not happening. Coleman, you just dated yourself. No one knows what an almanac is. Hold on a second. We got some people in the lobby that are listening, all right? We got some youngsters. We're going to take a street poll. I want to know, hands raised if you know what the Farmer's Almanac is. All right, hold on a second. We got some people in the lobby that are listening, all right? We got some youngsters. We're going to take a street poll.

I want to know, hands raised, if you know what the farmer's almanac is. Okay, we got, hold on. Hold on. One, two, three, four, five, six. That gone it. It's at least 60, 70% of the audience. Thank you very much.

And everybody in the booth knows. Coleman, you're terrible with math. It wasn't 70%. Well, you're the math guy. It was 76%. You're the math guy. Hogan was wrong. Stay tuned, people.

It's the Dave Ramsey Show. hello everyone you're listening to the dave ramsey show i'm chris hogan and hosting along with me this hour is the career guru ken coleman and we're having fun uh taking calls giving people guidance and helping them to be able to move forward in a recent episode of my show the chris hogan show i told people you gotta've got to push, pull, or drag yourself, but you've got to move forward. Progress doesn't wait for anybody. It's something you've got to go grab. So we're excited to have you here. If you've

got a question, call us. That number to call is 888-825-5225. Again, that's 888-825-5225. We'd love to hear from you. You can find Ken at Ken Coleman on all the social medias. He's on the Twitter bulls and the Facebooks and the Instagrams and Hogan. I am as well at Chris Hogan,

three 60. We'd love to have you follow us. Ken and I are always in a constant competition with Christie and Rachel. So people do us a favor, go follow us so we can beat them and and and just uh just do better than them yeah now see i'm afraid you've made this a male female thing and we're gonna lose resoundingly well this is not the right campaign but i do want to tell people that they need to be checking out the chris ogan show on youtube apple google wherever you

listen to podcasts he's also on SiriusXM joins Dave and I over there on the business channel on SiriusXM so check out Chris' show it's fantastic I was on with him recently and it's so fun he just coaches people up

it's so good it's such a great environment for you to figure out your financial future ChrisHogan360.com is his website where you can connect with him on social and anywhere his show is at. And trust me, it's everywhere. You won't have to look far or wide. So go check him out. I appreciate that, brother.

And listen, for all you all out there, we have a Ramsey Network where we're all there. That's right. And so you get a chance to listen to all of us. So, yes. All right, let's get to the phones. We've got Nathan on the line. Nathan is calling us from Indianapolis. Nathan, how can Ken and I help you?

I was trying to avoid house heartache, like you guys were talking about earlier. I like this, Nathan. What are you doing, buddy? I'm 24 years old. I make $80,000 a year. I own a $62,000 house. I own a $62,000 house. I bring home $4,000 monthly.

I save $2,000 a month. Savings, I got $14,000 in there, and my bills are roughly about $900. The house I'm looking at is $310, and monthly it would be about $1,700 a month. I was wondering if I should rent this house out, I'm in now, and move to the new house. Gotcha. Hey, Nathan, tell me this. How much square footage is the home you're in?

$746,000. Okay, and this new one is how big? $2,400 square feet. Is the first one paid off? okay so you own it 62 it's it's worth 62 and you have no debt on it yes okay great yeah wow and so what what what's causing the upgrade here what's going on uh nothing just wanting to. I mean, do you have kids? No kids, single. Okay.

Uh-oh. What can you get for the rent on that $62,000 house? Probably about $600,000. All right, so there's $600,000 in positive cash flow, and you said the payment on the new one would be $1,700,000, he said. Is that right? Yes, $1,700,000. Wow. Yeah, I mean, you totally could do this uh but i mean this is

going to be a whole lot of space for just you right are you are you i mean is the other one too small what are you doing no i'm thinking about growing you know okay uh well i mean you totally could do it hey what about this so do you like the idea of having a rental property, or are you okay selling it? I mean, I like the idea of having it. Okay. So you like the passive income coming in? Yep. I would tell you this, my friend.

Be very intentional about who you rent it to, okay? Right. And I would get a lease, a rental agreement, all these legal documents all set up. But you totally can do this. Hold on. So I want to dig. Can I dig a little bit, a rental agreement, all these legal documents all set up. But you totally can do this. Hold on. Can I dig a little bit, Hogan? Yes. You're the financial expert, but I've got questions.

So, Nathan, what are you going to put down on the house that's 314? How much are you planning to put down? $12,500 down, and then by the time closing comes in the first month due i'll have seven back up and savings 7 000 yeah so do the math what dave recommends a minimum 20 down payment well a minimum of 10 best case scenario 20 to avoid bmi oops there i am so you'd be at 19.5 he'd be good yeah i i okay so here's, so here's where I want to push back. I think you're fine. There's no question we've established he's fine to do it.

But I wonder if you don't, because here's what you are going to do. You are going to increase your expenses. Now, you've got the $600 in positive cash flow and what you think you're going to get in rent there. And hopefully that stays pretty consistent. But you have increased your expenses because right now your total expenses are $900. The mortgage on the new home is going to be $1,700. You're 24 years of age. I'll tell you what I think you ought to consider.

I don't think there's a right or wrong, but I think this one may be something to consider. Why not go ahead and rent the house you live in now? You're single. You don't need a bunch of space. And why don't you go get an apartment or something and cash flow that and save up more money to put down on a different house. I just don't know that you've got to rush into this current deal because he's right at the level of the 20%. Well, hold on a second, Nathan.

Did you tell me you're saving $2,000 a month, right? Yeah, $2,000 a month. And how much do you have in savings? $14,600. a month right yeah two grand a month and how much do you have in savings uh 14 600 okay i thought you said 24 600 um so no you're not at the 10 percent i was wondering but you're the money guy no no i thought you had 24 6 you're at 14 6 i definitely i think the mindset of you aiming for this home you're on the you're on the trajectory but you definitely want to save up and get a minimum of 10 percent no colman you're absolutely right isn't that funny that's how much i trust you and i don't trust my numbers no no but

he's not ready for that no no he needs to relax or tell you what why doesn't he go buy another sixty thousand dollar house in that area and pay it And that gives him, he'll end up having two homes. See, the more I think about this, that's actually an even better idea. This, I mean, again, and he's single, so he's got money, he's got some time. Go buy another house that's similar. Go do something before you get married. And yeah, go. Like, no, I'm just saying, go visit some places.

Get a motorcycle, get a boat if you want to. But do cash. Nathan, listen, I love your mindset and the way you're saving. But, yeah, you want to be at a minimum 10%. And the trajectory you're on and the area you're living in in Indianapolis, I know you can find some places that have deals. All right, listen, listen. Here's the deal. I'm getting fired up.

Why'd you get fired up? Because I'm thinking about this idea I got at the last minute. Uh-oh. Here's the deal. I'm getting fired up. Why'd you get fired up? Because I'm thinking about this idea I got at the last minute. Uh-oh. Here's the deal. Here we go. He's got a house at 760 square feet. I'll guarantee you there's streets and streets of those near him. Yes.

Go get another one that you may be able to steal it for $45,000 or $50,000. Fix it up, and you pay cash for it, and you got your rental thing, but then that's going to turn into maybe an $80,000 house. Keep doing a couple of those. He's saving up $2,000 a month. I don't think he needs to jump this quickly is my point. I want you to go find another one of your houses, and that be your second property.

You're still debt-free. No, you're right. And your cash flows. He's tripling the size of the home. Yeah. You know what? Go get you another $60,000 house. See, listen.

Sometimes I just need to let Coleman marinate on stuff, and he gets more riled up. Well, you know what? I get what he's trying to do, and we just gave him the best way to do it. Now you've got your second cash property. No, you're absolutely right. Which, by the way, turns into five, six, eight properties down the line. Then he's going to be able to cash buy a house that he's thinking about scraping to get into now. And the time

he meets Mrs. Nathan, he might have a chance to find the next house. And by the way, he started off the call, he was listening earlier in the hour when I said house happens. He's going to go buy that house. No, he's not. But he was going to. And house was going to happen. And then he's in real trouble. He'll get frustrated.

Hey, listen. Can you imagine triple the size of the house? You know what his AC bill and electric bill would have been? Hey, the heating bill in Indianapolis? Because it is not tropical there, baby. He's 24 and single. He's not even going to go into half of those rooms. Yeah, he's going to have them locked. Listen, don't buy that house.

Don't do it. Nathan, don't do it. We've just decided for you. It's smart for you to slow down, keep saving. Then you look and you go, hey, two-year decisions. That's what I remember you to make. You want to make a decision that you look back on in two years and you go, oh, I'm glad I did that. I'm glad I listened to Coleman and Hogan.

They guided me and steered me in the right direction. Took us a minute to get there. Then you can send us a thank you note. Hey, listen, I want to thank all of you all for calling in. I want to thank all the listeners for tuning in. I want to thank producer Zach. I want to thank associate producer Kelly Daniel for helping us make this show possible. And Ken, I want to thank you, brother.

That was a lot of fun. Hey, it's always good being with you. I also want to say a big thanks to Dave for letting us play in his sandbox. Yes, yes, the chair feels good. This is The Dave Ramsey Show. This is James Childs, producer of The Dave Ramsey Show. On your smart speaker, you can add our skill by saying, Alexa, open the Ramsey Network skill. From there, you can listen to all our shows.

Ask Dave money questions like, how do I invest my money? Or what is the debt snowball? Find out more at DaveRamsey.com.