The Ramsey Show - App - Let’s Talk About the Housing Market (Hour 3)

Episode Date: October 24, 2022

Dave Ramsey & George Kamel discuss: The current state of the housing market, Feeling like you can't get ahead on paying down debt, Counting stock options toward retirement, Dealing with messy family money drama, Budgeting on a bi-weekly paycheck, Buying a house with a roommate. Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio, it's the 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. We help people build wealth, do work that they love, and create actual amazing relationships. George Campbell Ramsey Personality is my co-host today. The number is open phones at 888-825-5225. So George, a couple of months ago we did a huge, millions and

millions of people watched, a live stream for free called the Real Estate Reality Check. We addressed several things in that hour, and we don't have time to address them all right now, but a lot of people were predicting 2008 again that real estate prices were going to absolutely tank. We said they are not going to tank because there is a pool of buyers that is much larger than the pool of sellers still. And the supply-demand curve will maintain the prices, meaning when you have a whole bunch of people trying to buy a few things, it holds prices up.

It's that simple. When there's a scarcity, prices go up or at least are maintained at a minimum. And we said, of course, the exception to that is the areas where people are leaving en masse. And we showed a map of the number of people that have left New York and left California and have left some of the high-crime cities and crazy politics of all kinds, defund the police or whatever else, cities. And so we said so far, though, even those areas, California, New York, Seattle, Portland, have not seen decreases in real estate values. That was about two months ago, three months ago.

Reports are coming out right now. We just got one dropped on the desk. Western U.S. continues to lead in home price declines. So now California is seeing the mass exodus of California starting to affect pricing there in some of the areas. San Francisco has taken some real hits. 3.4% decrease. Of the top 100 cities, the city that has taken the largest drop in price declines so far is Seattle.

High crime situation with the anarchists taking down the entire downtown area, and it made it impossible to function economically in that beautiful downtown area of Seattle. It's a gorgeous city, or it was. And the lack of law and order always screws screws up economics uh when you can't operate because people steal all your stuff or burn it it's very difficult to run a business it's kind of basic you know common sense stuff and so these areas are getting hammered uh their home appreciation values dropping like crazy meantime louisville birmingham southern cities in texas southeast are going up in value during the time some of

you predicted that dave ramsey this isn't going to age well it's going to be 2008 again the entire thing's going to crash and i kept telling you no here's the numbers it's not going to crash and so we're here to tell you the numbers are coming out. And we told you so. Yeah, this is real data. And we used data last time, too. And we're just using the newest data that's showing that it's a different time. And it's not all down. Some areas are going up. Some areas are going down. And there are winners and losers, another article states article states and yes those that got houses when the interest rates were super low are cheering for themselves but those that want to get into a house it's not too late for you either because the competition is slowed down well here's

what happens now we have we have this huge increase in 20 record house price increase in 21 you know 18 percent up right 29 percent up in 20 and then we said you know 22 is going to be seven or eight percent up which appears to be holding nationally now locally we've had some areas that are down five percent or down 10 percent we've got other areas that are up five percent but it seems to be that we're going to be in the five to seven percent by year end that prediction was made by other people but the data that we're going to be in the 5% to 7% by year end. That prediction was made by other people, but the data that we had seemed to support it, and we went with that, and it looks like that's going to be about true. In 2023, we said it's going to return to normal price increases in homes of 2% to 5%,

and the data is still indicating that that's what's going to happen. All of this to say that you're watching the news, and you know the inflation is still indicating that that's what's going to happen all of this to say that you're watching the news and you know the inflation is horrible the worst inflationary economy in 40 years right now and you're going to the polls in a week or you're going to the polls right i'm going today to early vote make sure i you know do what i can to correct this um you're fired that's the message and so um you know you can't you can't run something you get to you don't get to run it anymore that includes the country okay but the um anyway the uh uh all of that aside the the the thing that's happening with real estate is interest rates have gone way up they're on

bumping up close to seven percent now on a 30-year fixed uh up from the threes and you know seven percent in the scope of a life as long as mine is very low i remember lots of years selling real estate 11 12 10 9 lots of years i was on the radio it was 10 when i started this show it was 10 and so then it came down to six and we thought we were in nirvana but then when it goes to three and it goes up to seven see seven's not good as compared to three but it's really good compared to 12 so it's an emotional thing so here's what i'm telling you the other article we got was from bloomberg talks about the people that have bought homes, their values are continuing to go up, especially if you bought,

like in Austin, Texas, you know, Nashville, Tennessee, you bought in these areas, Dallas, Texas, you're buying in Phoenix, Arizona, you know, have they gone down a little bit in some of those areas in the last four or five months? Yeah, a little bit. Well, asking prices, too. And the price asking, yeah, because some of it really gone crazy up and so it's settling it's settling but it's not diving it's not crashing and what's happening is these people that bought are going to become inordinately more wealthy over the next three years than people who rented because rents are also going through the roof. And so rents are sucking the disposable income out of the renter's budget, because guess what happens to rents? Every year they go up just about.

Almost every single year rents go up. When you buy a house at 6% or 7%, it doesn't go up. You're locking in one of your largest expenses and the value of the property is going up because it's not crashing unless you're in one of those areas we mentioned right it's not crashing overall we don't have a 2008 situation and you're going to become wealth inequality based on home ownership is going to be more and more of a thing and so what all that is to say is if you haven't bought a house and you're thinking about buying a house and you're sitting on the sidelines waiting on interest rates to come down they're not going to come down in any minute and

waiting on house prices to come down they're not going to come down they're going to go up you need to go buy a freaking house right now it's a great time to buy a house because there's not a lot of people around the block trying to buy that house right this second you're not going to steal it and if you're getting ready to sell a house you need to have the expectation it's going to take you 90 days to sell a house right now like it has most of the time in the history of real estate most of the time in the history of real estate that that's how it's gone. And so you need to have a 90-day expectation on selling and negotiating on your price. That's normal. And if you're thinking about buying, you ought to go buy right now.

And like we said, a real estate reality check, you can always refi later when the rates come back down. Yeah. And if they come back down to three, and they might, I sure hope they do, that'd be wonderful, then refinance and get rid of that higher mortgage, but you locked in the price of the house. One of the most common pieces of advice I give folks trying to get out of debt is to sell the car. And I get it. That's easier said than done. Selling a car takes a lot of time and hassle unless you use CarWiser. CarWiser is a free service that gets you the best offers instantly from dealers around the country.

And it couldn't be simpler. Just enter your vehicle's information and boom! You've got offers to choose from. So go to CarWiser.com slash Ramsey. That's carwiser.com slash Ramsey. George Camel and I co-hosting today, he's a Ramsey personality. We are wearing our matching Gazelle hoodies because today is the launch day for the new Ramsey Gazelle debit card. No fees. You got to love this thing.

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Tannis is with us in Canada. Hi, Tannis. How are you? I'm good. How are you? Better than I deserve. What's up? Okay.

So I am kind of on baby step number one. I thought I was, well, I thought I was on two, but it turns out I'm back on one. So I had some money put away and my savings were okay. And so I made a lump sum payment on my student loans, which was great. But now like after a couple of things happened, now I'm kind of back at square one, but I just feel like every paycheck, I'm reaching more into my emergency fund because it's like, I'm always behind in each paycheck. I'm catching up from something I missed the previous two weeks. And I just like, I just can't, uh, I can't get ahead. What's causing you to be in the hole right now? Which expenses is it? My student loan payments are like killer. So what's your income?

Um, it kinda, it kinda varies. So I'm on salary for the first time in my life too, which is very different for me. Um, but, uh, yeah, so like salary is $3,000 a month and then I might make another, um, like a thousand dollars with just like the extra work that I've been doing. Um, but that varies again. So it just depends on kind of what's available. And what's your minimum payments on all of your debts? My minimum payments for my student loans is $650 a month. And then I have a $200 car insurance payment. My rent is $800. And then I'm trying to think, I have like 10 insurance, that's only like 50 bucks a month, but like the small things are really adding up too. Well, the student loans alone are not draining you. How old are you? I'm 25. I just turned 25. Okay. All right. And good. All right. Well, here's the thing.

It sounds like, A, you just started this process, and, B, it sounds like when you write down your budget that it's more like a wish or a suggestion. Well, yeah. Like, yeah. So what I did is I took, I went through all my statements from the last, like, three or four months, and I went through everything that I can't change right now. Like my student loan payments, my gas, like that kind of stuff. And I wrote that all down as mandatory payments and then everything else I broke up into, are they needs or are they wants? And so like,

even when I do that on paper, it's like, I have like $200 to $300 in between each paycheck, and then something comes up, if that makes sense, because I know it takes time. Yeah, you're doing the budget wrong, okay? Okay. Because you shouldn't have any money left on your budget. You should have it all, every dollar should have a name before the month begins. So I want you to pan back and say, I got $3,000. And if you don't have $3,000, you need to get $3,000. In other words, if that thousand dollar gig doesn't kick in,

then you got to work an extra job and make sure you at least have $3,000. All right. Now, then I want you to write down your mandatories. You got the 800, you got the 200, you got the different mandatories, like you said, that are in there there i want you to give all of those dollars a name on that budget and decide which paycheck each one's coming out of before the month begins i want you to completely plan out how you're going to pay your bills and that includes if you have money that is a want that's left over then you're going to plug it in as a want if you have money that's a over, then you're going to plug it in as a want. If you have money that's a need, a mandatory, you're going to plug it in as that. But if you have $3,000 come in and you have planned to spend $3,000 exactly,

and you spend it exactly as you had planned, you're not going to have a crisis. Agreed? Yeah. you're not going to have a crisis agreed yeah but what's happening is is that um some friend calls and goes let's go out for drinks right yeah that's exactly i just see leftover money and think it's spendable income yeah because it's left over and instead if said, I have this much allocated for social, for happy hour, you know, I got 50 bucks allocated for happy hour, and you did that last week, then the friend calls, you've got to say no.

But you don't have anything that gives you a no button. All you've got is yes buttons. And your yes buttons are blowing up the whole thing. But I feel like I'm saying no to everything. You're not. You're not. You're just whining. You're not.

You're just whining. You're just whining. That's probably fair, yeah. You're not saying no to enough. That's why you're in crisis. Are you working extra on top of your full-time job? Yeah, like I work like 10 to 12-hour days depending on the day.

Okay. But for the same salary? I'm saying, do you have extra jobs? Side hustles. Yeah, so my salary, so I teach group fitness classes on top of my salary job. And so I get as many classes as I can.

What's that pay? Up to $55 an hour. Oh, that's good. It just depends on how many people show up. And it takes time for people to come to your classes more, and I have been getting more. You get $55 an hour? Yeah, if the class is full right now, I'm averaging $45. Okay.

That's pretty good. It just depends on how many classes are available. Because you're not making that at your day job. No, that's like, I don't know if I should quit my day no no no you need the money right now we don't need to quit anything we need to do more but you know it sounds to me like i you know what i would do is try to do 40 hours worth of fitness work right you'll be tired but you'll be fit yeah and you won't have been going out drinking you will have been getting fit and making 45 an hour and you would have cleaned up this mess right what's your total debt uh uh sixty thousand dollars in student loans purely i don't have any credit cards and i don't

have a car payment or anything so here's the thing okay we're going to ship you a copy of the book the total money makeover and show you exactly how to do this. What I have figured out is the madder I get about my situation, the more extreme I get about fixing my situation. And you're just beginning to get angry. But I just want to turn your anger up a little bit. That's kind of why I was poking at you a little bit. I want to get you mad. Even if you're mad at me, that's okay. Because I'll just want to turn your anger up a little bit. That's kind of why I was poking at you a little bit. I want to get you mad.

Even if you're mad at me, that's okay. Cause I'll just be your coach. I'll be your friend that loves you enough to take the blows. Okay. So, uh, I want you to go win girl.

And you've, you're smart. We're talking to you for a few minutes. You're not dumb. You haven't any problem, but your, your issue is focus. And this extreme focus that comes from an extreme sacrifice that comes from a

healthy level of anger is really what the recipe is. It is a bit like fitness stuff. You know, you tell people to do stuff. There's ones that kind of care and kind of don't care, but the ones that have to lose weight or the doctor says are going to die, they figure out a way to lose the weight. The ones that go, you know, my pants are just tight. You know, they don't lose weight. That's not enough. Vanity is not enough to get you to do it.

You need a bigger why. You got to get fired up about whatever it is, whatever behavior you're doing that changes everything. And you're getting there, but you're just starting this journey. I've got real hope for you. I think a month from now, you're going to be a beast. Oh, yeah. I remember when I was getting out of debt, Dave, when I started here and I was doing Uber, I had the Nielsen People Meter to make another 20 bucks a month. I was eating lean cuisines, waiting for them to go five for 10 on sale. Oh, that's gross. But it was worth it. And I will never eat a lean cuisine again, Dave. Amen. Amen. You got to have something you never eat again because you had to eat it when you were broke.

Broke people food. Find that food. Yeah. Ramen noodles. Tuna fish for me. I hate tuna fish. Yeah. Hang on.

We'll send you a copy of that book, kiddo. You call us anytime we can help. George Campbell Ramsey personality is my co-host today as we answer your questions about your life and your money hey if you like this show uh there's three things you can do to help us one is you can subscribe to the podcast or the youtube channel two is you could leave a review on both of those and don't leave a review on both of those. And don't leave a review unless it's five-star, please. We don't need your one-stars. Thank you.

We need five-stars. And you can tell people to listen, whether they're listening on radio or podcast or YouTube. Share the love. In case of a podcast or something like that, maybe YouTube, you just forward that. Share it with a friend. Literally, the link.

I was listening to my friend Mike Rowe's podcast this week, and it was about jobs and about people working, and I forwarded it to Ken Coleman. I said, you need to listen to this. It's a good podcast. And so you can do the same thing for The Ramsey Show, guys. Thank you very much. Emily's with us. Emily is in Portland, Maine. Beautiful town. Hi, Emily. How are you? Hi, Dave. How are you? Better than we deserve. How can we help? Hi. So me and my fiance, we're currently working on paying off the house and saving for retirement. I currently put 6% into my 401k and 8% into the employee stock program. My fiance just started a new job with a much better 401k match than my

job, but he makes less a year than I do. So does my stock program contribution count towards the 15% retirement savings? And should we save more than 15% of his salary, if not all of it, in his 401k, if we can live off of just my income. When are you getting married? Next year. Okay. You should not combine your finances until you're married. Very dangerous. You can talk about them as if they're combined, and you can plan to combine them when you're

married. But when, for instance, you pay all the bills and he puts all his money in retirement, that's combined finances. And if something happens prior to marriage, you know, you've left him at a disadvantage. It's not fair. Okay. So you guys should run this like roommates because that's what you are until you're married. Okay. And it could also actually be detrimental to your relationship until you're married now

once you're married you combine everything it's just one big lump we'll go from there now back to your original question on the retirement savings we don't tell people to invest in single stocks for their retirement savings that's an additional investment after you're at baby step seven if you want to play for some other things. But I would just use mutual funds only. It's all I have done with my 401ks. And so our rule of thumb is the best thing you can do is get the match for you, him independently. Best thing he can do is get the match. The next best thing you can do is get a Roth or turn your 401k into a Roth. And the next best thing you can do is a traditional. And so in your case, I'm just going to beef up your 401k and make it a Roth.

Your 401k, they make it a Roth. Do they have Roth option? I don't believe so. I just do a max of 6% and they put in 3%. Yeah, but I got to tell you tell you 78 of them offer roth options so i bet they do you need to check on it okay but if they get if they don't do a roth option take the match and then do an independent roth and then go back and do regular 401k i would not do your company stock as my retirement plan it's too speculative it's too risky okay and i you know here's the other thing about that plan in general all company stock plans discount the stock price by 15 percent right yep and so people

think oh i'm getting a deal on this stock but if you look at your 12 month high and 12 month low 52 week high 52 week low on your stock, you're going to see a variance oftentimes, most times, of more than 15%. So you may not be getting a discount when the smoke clears because of the volatility of it. So, no, I don't play single stocks, and no, I don't do employee stock options until you've just got some extra money laying around and you want to play with it. So to recap here, you're going to go for the match, then open a Roth IRA, max that out, and then if you're still not a 15%, go back to the 401k and finish out the 15,

and then pause all of the employee stock purchase program. And keep your finances separate until you're actually come home from the honeymoon, and then you combine everything at that point. That's what we would tell you to do, and that's what we've seen the best results from the millions of people that we've coached over all of these decades now if the company is gifting you stocks and you're not having to pay for it well hey cash it out and uh we'll take free stuff better we always take free stuff yeah most always uh stephanie's in oklahoma hi stephanie how are you hi dave i'm well how are you and george better than we deserve what's up in your world same here because

you have taught me to build up that thousand dollar emergency fund i'm getting emotional sorry thank you thank you for your guidance over these years but today I'm calling over something that is, I know a lot of people deal with. I have, um, pet fitted pet stats for my parents before when they went on vacation and it was agreed upon a certain amount of money due, um, to the days that they were gone. You know, it was very organized and I explained why I was charging them and that it's never been a question. This year, my mom and dad went again on vacation. I told them, yeah, of course I'm going to keep the dog. You know, you can pay me when you get back. For some reason, my mom has had a slip of memory and this is not about the money. It was agreed upon in a conversation about three weeks ago what I was going to charge her.

And I actually called and said, is dad awake or has he already gone to bed? She said, no, your dad's in bed. I said, well, that's unfortunate because I wanted him to be present in this conversation. So I need to discuss with you what I'm charging you and why. So I explained to her the rate. When they were gone, their dog unexpectedly had to go to the vet. I missed out on a half shift of work. The vet is a friend of mine who waived the fee. So I saved them that much money, but I lost down on a little bit.

So I explained to my mom the rate. It was not any more than it was a year ago. And she agreed upon it. Fast forward last night, we're all having dinner as a family. And my mom offers me a wallet. She says, I have this old wallet. Do you want it? It's in really good condition. I said, yeah, I'd love to have that.

And to tease her, I said, you can go ahead and put that check in there as well for the dog sitting for, you know, this amount of money. She said, no, I'm not paying you that much. Anyway, I went outside, dad's grilling the burgers. I said, dad, this isn't going to be okay. We already had this agreement. I wish you were present for the conversation. And I said, dad, it's not about the money. It's about the principle of the matter. And everything kind of blew up. My mom wrote me a check. I left because things were upset with my sister being there, giving her feedback and all this. My question to you is, was I wrong in telling my mom, no, you need to pay me what we agreed upon. It's a financial, it's a business.

What did I say? I said it's a business dealing, okay? You need to keep your word, mom. And then she wrote me her check and she was upset. What was she upset about? She said, literally, I'm not going to pay you more than what we agreed about. You can't change your mind. I said, Mom, I didn't change my mind.

What are you talking about? We discussed this amount. Like, we've had a conversation about it on the phone a few weeks ago, and you agreed to it. So why are you angry? So later, after I went home, I went out, walked the walked the dog had some time prayed about it asked God to tell me you know what is going on here what am I missing I don't understand and I called my dad later and I said dad I'm really at a loss right now is mom having like memory problems is that what's going on or what? And he said that maybe, I don't know.

But he did tell me that I didn't deal with it well when I talked to her about it in front of my sister. I didn't mean to stir the pot, but I just, I'm really... Stephanie, how much money was this? It was $350. I see two options. Number one, we never pet sit for them again. And number two, we just go, okay, stupid tax.

I'm never doing that. Not worth ruining the family relationship. Yeah. Just call her and tell her you're going to tear up the check. It's not worth it. And then next time they call to set the pet, tell them you're not going to be able to. And because our relationship is more than this horrible little tiny business transaction. So I'm just not going to enter into this arena again

because it's not a place that I like to play, and I'm not very good at it, so I don't want to do it anymore. Our scripture of the day second chronicles 15 7 but as for you be strong and do not give up for your work will be rewarded thomas edison said our greatest weakness lies in giving up the most certain way to succeed is always to try just one more time. Open phones at 888-825-5225. George Campbell, Ramsey personality, is my co-host today. Devin is with us in Cheyenne, Wyoming. Hi, Devin. Welcome to the Ramsey Show.

Hey, Dave. How are you? Better than I deserve. What's up in your world? Oh, I just had a question for you. You know, we've been listening for a couple years, right? Started listening right after my son was born because I thought it was time to kind of get my money right. We've been doing our budget, and I kind of realized I think I've been doing my budget wrong,

and I wanted your opinion on it. Okay. What are you doing? So, well, I was budgeting as if we were getting paid twice a month, such as like 1st and 15th and 15th and 30th. But we don't. We get paid every two weeks, which makes that paycheck fall kind of obscurely throughout the month. So I noticed it when we're going to get paid on the 28th of this month. And I noticed I don't need a full paycheck to get through the 28th to the 31st of October. Yeah. You have two magic months a year where you get three checks. Exactly. And I didn't even notice that. So we've been eating into our emergency fund

and I didn't notice it until we started kind of going, wow, we have all this money at the beginning of the month. And then towards the end of the month, it's like, wait a minute, how are we overspending? And then I looked at the calendar. I noticed we don't get paid every two or twice a month. We get paid every two weeks, which makes that fall kind of weird. And I want to know how to set up that budget, especially in using every dollar. So are you already using every dollar? I am. We've been using it pretty consistently for the last couple of years. In fact, now after I noticed it, it seems I have it set up all the way through April. And so have you checked out the new paycheck planning tool in there? Because I think this could really help you because it'll map out

exactly when your money's going to run out that the paycheck planning tool is actually how i noticed that i was budgeting wrong that's good at least that's perfect that means it did what it was supposed to do good okay yeah so the concept behind all of that and precluding the paycheck planning tool is this each and every month is unique. And you should start that month and look at that month's bills and that month's income. Because you don't have Thanksgiving in May, but you do in November and there's a turkey involved most of the time. So that month's bills are different. You don't have Christmas except in december hypothetically and so hopefully you

should only have that that expense there and you know in my case i heat with gas and so in the winter my gas bill my natural gas bill is higher in the summer i virtually don't have one because all we have is a little bit of hot water and there's only two of us in a shih tzu so um we don't burn a lot of hot water that not nearly like we burn to heat the house, right? So my natural gas bill is less in July than it is in December. So my July budget should be different. Now, a lot of things don't change. Obviously, you've got a house payment, car payment, that kind of stuff.

They're going to stay exactly the same. Your grocery budget is going to be close. It may have a little bit of birthday difference or something like that in it. But you need to plan every month before the month begins, and that includes the income and the outgo. And so if you look up and say you've got three checks in those two magic months, then you're going to plan all three of those checks. Okay.

So my question would be like, do you just roll the money over? So for the end of this month, like I said, we get paid on the 28th. We just roll that into November then? It depends on how you want to lay out that November month. Do you want to lay out the November month using the 28th of october if you want to call that the first of november in your planning that's fine and then okay so that's going to cover my you know my rent that's due on the first that kind of stuff because you're not going to get a check for two more weeks exactly so the stuff that's due on the first is going to be a pinch and so that's

what planning that month out ahead of time causes you to look at that. And what you've been running, you're right. The thing you've been doing wrong is you're trying to do each month as if it was a template and it was all exactly the same. And so what I'm trying to do is get you to do a level of customization to each month. And then the paycheck planning tool allows you to customize where those paychecks hit and so oh i can't i gotta pay cable i gotta figure that out and i gotta pay my light bill i gotta figure that out and you gotta put groceries in all the different in each each of the each of the paycheck periods and a lot of these bills you can go in and select a different date and so if you're realizing too much is coming out of one specific date or a few

days you can go into you know the website call them and change that date for it to come out different date and so if you're realizing too much is coming out of one specific date or a few days you can go into you know the website call them and change that date for it to come out the do that utility due dates and the other thing you could do with some utilities is you can do budget billing where they level it out for the year and then once a year they even it up meaning they if it was a little high they'll give you a little bit of a refund or credit towards your next one or if it's a little low you're going to have a little higher bill for one month but you can do that some budget billing that helps as well but the big thing you've realized is is that you were uh you know you you were not operating you're operating on a template rather than a custom month and the paycheck planning

tool on every dollar uh the every dollar app which is the world's best budgeting app, and it really is. It's very robust. But this new tool is really, really helpful. It's one of the most requested things we've ever had. As soon as we put it up, everybody went bananas on it. And some of you have set EveryDollar down. You need to pick it back up because you can use that paycheck planning tool. It's going to make it a whole lot easier.

And now seamless integration with the new Gazelle debit card. Oh, good point. There you go. How cool is that? Matthew in Dallas, how are you? Doing well, sir. How are you? Better than I deserve.

What's up? Yes, sir. I was curious. I'm in a predicament, and I was wondering, should I purchase a house when it is above 25% of my income at a 15-year before roommate? No. Okay. Because roommates don't always pay. They don't always show up.

There's gaps between roommates and you're going to get yourself in a crack. It's you buying the house, not the roommate. Yes, sir. But if you can commit to creating enough income with part-time side hustles

to cover it and make it 25%, and then the roommates icing on the cake, now we've got a win-win. Yes, sir. But I wouldn't run it on roommates, because how many times have you had a roommate? Three times. Okay.

And all three were reliable? Yes, sir. Well, you got good and lucky. Where do you find those, man? That's amazing. Yeah, it's like renters. I mean, I've had a lot of renters over the years, and these people say, oh, well, I went to a real estate seminar, and they said the renter will pay off your investment real estate. And I said, no, they won't, because they don't always pay.

They file bankruptcy. It's suspiciously close to house hacking. It's like a COVID quarantine. Because they don't always pay. This plan sounds... They file bankruptcy. It's suspiciously close to house hacking. Take a COVID quarantine and decide not to pay. Oh, man, what a pain in the butt. Yeah. I thought they were just going to pay the mortgage. We're really good. We very seldom have a bad tenant because we've been doing it a long time.

We only get good tenants. You know how to vet them now. Yeah, exactly. But still, same thing with roommates would be true you know he's done a good job i'm teasing with him but he's obviously done a good job selecting quality people to be his roommate but i wouldn't put the piece of my finances on that line would you no and there's two options here either increase the income or increase the down payment. And that means a little bit of patience. I'm okay with that. Because when you do get into that house,

you can breathe and you're not reliant on the roommate. Yeah. If you really have to have that money from them, it kind of changes the way you look at them when they walk in the room. It changes the relationship. You're going out again and you haven't paid the rent yet?

You're going to the beach. Wait. Where are you going? Where's rent yet? You're going to the beach. Wait. Wait. Where are you going? Where's my money? Where's my money? Where are you going? Wait a minute.

Let's talk here for a second. Oh, yeah. Money transactions do that, and so you've got to be careful. It's almost like the mom or the girl with her mom while they go with the dogs. Changes relationships. It's a thing. It's a thing. It's a thing. It's a thing.

And so if you need the money, it changes the whole deal dramatically, and it changes the tone by which you address these things. Well, Dave, this might be the last day our wardrobe intersects with our gazelle hoodies. You suggesting I will never dress as good as you again? I was going to suggest the opposite. I'll never be as classy as Dave Ramsey. I know about you. It's all right. classy as Dave Ramsey. I know about you. It's all right. Well, fun day celebrating the launch of the Gazelle debit card.

Congratulations to you and the whole team that's been working on it. Yeah, it's a lot of fun. Awesome. Very cool. That puts us out of the Ramsey Show and the books. 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.

Do you love a good day, Brandt? Want to see the latest Ramsey Show videos going viral? Check out your favorite moments from The Ramsey Show on YouTube. Go watch and subscribe to The Ramsey Show channel on YouTube.