The Ramsey Show - App - My 36-Year-Old Son Is Living at Home (Hour 3)

Episode Date: May 19, 2021

Debt, Education, Relationships Sign Up for a FREE trial of Ramsey+ TODAY: https://bit.ly/3rZTUAx Tools to get you started:  Debt Calculator: https://bit.ly/2Q64HME Insurance Coverage Checkup: https://bit.ly/3sXwUn5 Complete Guide to Budgeting: https://bit.ly/3utmVXi Check out more Ramsey Network podcasts: https://bit.ly/3fHhbVE

Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studio. This is the Ramsey Show, where America hangs out to have a conversation about your life and your money. My name is Anthony O'Neill, host of the popular YouTube and podcast show, The Table with Anthony O'Neill. And today, no one's co-hosting with me it's all me america it's all anthony o'neill and so y'all know how i roll um as long as you get through kelly i can have a good time with you i love talking about money i love talking about life i love talking about relationships and I'm not a relationship coach. Let me say this correctly. I'm I'm talking about healthy relationships that help us hit our goals.

Should we in this relationship? Should we enter into this relationship? This could be a business relationship. This could be a romantic relationship. This could be a financial relationship. You name it. But I talk about it all. So give us a call. Triple eight. Eight to five. Five to two five. Again, that's triple eight. Eight to five. Five to two five. And Jessica's with us in Portland. Good afternoon, Jessica. How can I help? Hi, Anthony. Thank you so much for taking my call. Thank you for calling in. You just made my day. How can we help? Well, I have a quick question. So my husband and I just finally paid off all of our debt. So we're looking to buy our home now, but we're kind of having a disagreement on that.

The average price of a house out here where I live is around $500,000. And I'm looking to put down $100,000, so the 20%. But my husband wants to put down about $20,000 so we could purchase the house sooner. So I wanted to see what your take is on that. Okay. So tell me this. Why does he want to purchase it sooner, Jessica? I think just because everyone else is buying a house right now, and we've been renting for about six years now, so I think he's just ready to finally have a house of our own. Okay. I understand that.

And what's the big disagreeance? It's like, hey, we can't, I want to put down $100,000. He wants to put down $20,000 so that way you all can get into the home. When will you have the $20,000 to put down? So we're expecting we can save the $20,000 by next year. Okay. And I think that's one of the main differences is that it's going to take us probably about three years to save the $100,000, but that would bring our payments to about the 25% take-home pay. Yeah. So with the 5%, I'm not sure what our monthly mortgage would be with that. Yeah.

What's y'all's annual income? So I'm a stay-at-home mom, but my husband's take-home pay after taxes and everything is about $60,000 to $65,000. Okay. So let's just give you $65,000, all right? And so that means you all are bringing in about $5,400 a month after taxes. You're probably saying about, let's say, $4,500 times that, about a 25%. We're looking at about $1,125 for your mortgage payment. And a $500,000 house with 20% down, which is going to be right around 5%, your mortgage payment will be higher than $1,125.

So even with the 20%, I'm still thinking your mortgage payment is going to be a little bit higher than a eleven twenty five. And so I think what you all really need to step back in and do together is because I don't want to I don't want to I don't want to choose a side. I don't I don't want to sit here and say that you're right. He's wrong. And I don't want to say that he's right and you're wrong. Here's what I do want to say. There's three things that we look at when it comes to purchasing a home. Number one is if you can put down 100 that's the ideal candidate second follow is 20 because that helps you avoid the pmi if you can avoid the pmi then yes your payments will go down dramatically especially on a half a million dollar home third which is our worst case scenario but if hey if it's going to take you um if it was to take you all an extra three to four years to buy a home, then yeah,

we wouldn't have a problem with you putting down 10%, which is going to be about $50,000. But I would never recommend you doing anything less than 10%. So for me, I'm saying bare minimum 10 to 20% is where you all need to land at when it comes to putting down in a home. Number two, I would definitely look at, okay, how much of a home can we afford with keeping our mortgage payment 25% below our net pay? What we honestly see every single month, especially with him being the only provider financially in the home.

OK. And so and so that's what I would recommend. I want you all to really sit down one day, maybe, you know, tell the kids, take the kids somewhere. And y'all go out on a husband and wife date. Y'all go out on a date night and y'all sit there and just dream together. I bet. What what do we want to do? Where are we going in life? And then once you really identify that, then let's talk about, OK, cool. What kind of house do we want? Is this house going to help us get to our end goal? Do we want to build wealth?

Do we want to pass on legacy to our kids? Do we want to be 100 percent debt free one day? Do we want to start a business? Do you want to change careers one day? Like literally have a dream meeting, outline everything. And then once you all have that dream meeting and you two are on the same page, it's easier to make better decisions because now all of the decisions have to go towards that vision. And so when I hear disagreements within couples, sometimes it's because you guys don't have a real clear vision that both of you all can see. So when it comes to putting down bare minimum 10 or 20 percent, I think you all may need to find something a little bit cheaper than a half a million dollars. But I think that's just a conversation that you two got to have down the road.

Make sense? Okay. Yeah, that makes perfect sense. Thank you. Oh, thank you so much. Now, you know, I want to live right there for this next minute before we go to break because as I'm learning, you know, several of my i've what i've seen work within successful relationships even when it comes to dave and sharon um a lot of arguments are avoided when the husband and wife

wife and husband and even the family understand the ultimate vision and that's something that i'm working on as a single person that i'm working okay what's my vision then when i get married when i find my wife hey baby what's your vision for your life? And then let's combine these two together. Let's dream together. Let's write down our ultimate goals. And when we have a clear vision, that's a clear direction that we're going. And so when something comes up, this easy answer, does this get us closer to our vision? Does this get us closer to our vision? Does this get us closer to our dreams? Or does it delay it?

Does it take us off the path? If it takes us off the path, it's easy. No, we can't do this. But if it does get us closer, then it's an easy yes. And then from that yes, we identify, okay, how do we need to do this? What's the best way about going this way? So I'm not a relationship coach, and I don't want to be a relationship coach. Identify, okay, how do we need to do this? What's the best way about going this way? So, I'm not a relationship coach.

And I don't want to be a relationship coach. I'm just saying, clear vision creates clear answers when you have a disagreement. Hey, I guess I maybe should be the relationship personality. I'm just playing. This is The Ramsey Show. It continues to amaze me how identity thieves keep finding ways to use our own identities against us. Not only do they commit crimes related to financial fraud, medical ID theft, and insurance benefit fraud, but now we have to deal with home title fraud.

Thieves are using your own personal info to take ownership of your home so they can take out loans, and you end up with a pile of debt and foreclosure notices. Over 4,000 data breaches happened in 2018, exposing 3.6 billion records. So thieves have plenty of identities to use, and there's a one in five chance it will be yours. That's why Zander Insurance is the only program I use and recommend. Their plan covers all types of identity theft and it takes over

all the work if you become a victim visit zander.com or call 800-356-4282 welcome back to the rant show my name is anthony o'neill and earlier uh throughout today's show i've been uh talking to people who want to relocate and according to the united states census bureau nearly one in ten people relocated last year and that was in 2020 that means this year there's a good chance you or someone you know is planning a big move now let's be real i know how it feels uh to be one of those people uh juggling the unknowns and when we are relocating but you cannot lose focus of one of the most important personal and financial factors in your move, and that is your housing.

I recommend hiring a quality real estate agent, like one of our endorsed local providers or EOPs, to help you find the right home in your city. EOPs are top performing experts in their local market and have years of experience helping folks just like you and I make successful moves. I was one of those individuals last year who sold my house in Columbia, Tennessee, moved to downtown Nashville, Tennessee. I made an extra $30,000 and he saved me $80,000 in my my move let me say this again my elp

made an extra thirty thousand dollars on selling my home extra extra and saved me a lot of money on the new home that i purchased downtown so it's easy to get instantly connected with an endorsed local provider agent i want you to go to ramseysolutions.com forward slash agent to talk with a Ramsey-trusted agent about how they can help you with your relocation. Again, that's ramseysolutions.com agent. MJ is with us in Phoenix. Good afternoon, MJ. How can I help?

Hey, this is a pleasure. Thank you for taking my call. Thank you for calling in. Yeah, I have a really stupid question. This is a mom question. I have a son that is 36 years old, and we have two boys, and they both have worked two jobs all their lives, a full-time and a part-time job. But anyhow, our son, April of 2020, the 36-year-old, sold his place, and you

know what happened afterwards. And so, and he sold his place, paid all his debt off, which is awesome. We said, that's great. And I dog and hoe fix, so I'm rarely home. So we said, just can't put it at our place because, you know, it's not like it's going to's very often there. But anyhow, now a year plus later, poor guy, the housing market here, instead of taking a dump after the election, he's not making enough money for as far as the houses are going up. And the poor guy, I just, if you have any advice for a kid working really hard, well, young man, sorry, he's 36, working really hard. Two things.

How do you keep going when you have to choose between church and sleep? You know, it's one of those things, two full-time jobs. And then also, you know, for more than a year or two, but he's already done over a year. But also, where do you put your money so that it'll grow fast? At this point, everybody's putting $40,000 to $50,000 at least over asking price if you can find a house out here. So, do you have any advice? Yeah, so let's backtrack so I can make sure I have all the right information.

You have a 36-year-old son. Sounds like he was making some good decisions. Sold a house, paid off all of his debt. You allowed him to come back home for a season so he can do these kind of things. But unfortunately, due to the housing market right now, it's been a little difficult for him to get back out and to purchase another home, correct? Exactly, yeah. And basically, the home prices are outpacing the money he's making and has and so at this point the poor guy you know about once a month i end up at home and and he's ready to throw the towel in but not really then he's fine the next day after he's got some sleep yeah

you know but you can you can do anything for a season. My husband and I both work two jobs. So you can do anything for a season. And our debt is almost paid off. So he knows and we all know that it's possible. But any advice for hanging in there during this time? Here's my question now, MJ. You know, you got a good son. Okay. Oh, yeah. here's my question.

Why does he, how come he still can't move out and get an apartment? Well, why, why do we have to wait to go purchase a home? Because at 36 years old, working two jobs, no debt.

MJ, there's no reason he should be home he can go rent an apartment he can go rent a house and he can be saving until he is in a position to purchase a home exactly exactly yes and the pandemic unfortunately for him when he sold his house the pandemic was just starting and so anyhow we told we told him, yeah, six months a year, that's fine. And we honestly, because we don't use our house very much, you know, is totally fine that he's there. That's not a problem. No, no, no, no, no. He totally can be on his own.

Yeah, yeah. This is not about it puts you and your husband in a bind. This is about your son is my age okay with no financial responsibilities that's scary okay now i can see if he was home trying to pay off i still couldn't see that at 36 so i'm gonna be honest with you i think anybody in their 30s unless it's a medical issue um or major life issue, no one in their 30s, especially a man, should be at home. OK, so I'm going to respectfully push back on you and say, mother, you need to go ahead and just let your son know. Hey, son, go get an apartment, because what we want to do is we want to help you get ready for your wife.

Your wife doesn't want to meet you when you at home living off of us and you work in two jobs. There's no reason here. So let's get back out there. You've paid off all your debt. Now go live your life. Become the best man that you possibly can be and take on some ownership for your life. And I get it, MJ. It doesn't put you and your husband in a bad place. I totally get it. You are a great great mama you remind me of my mama my mama will let me come back home today and my mama will let me live there until i'm 50 now my daddy he ain't allowing he my pops ain't gonna allow okay uh but encouragement for your son is just to get back out there, going ahead and work those two jobs.

Keep that momentum going, going ahead and save, save, save as much as he can until he is in a position to purchase a home. I get it. The market right now is crazy. It's not just in your area in Arizona. That's here in Asheville.

I can live. I just moved into my house and i can sell my house for fifty thousand dollars more than what i bought it for already and i just moved into it a few months ago so the housing market is for the seller it's not for the buyer and so i if i'm him at his age right now um i'm renting um and and i may i may stop working two or three jobs you know i may just work once so i can get back into my local church so i can have a little bit more of my freedom i don't have any responsibilities uh at this present time i don't have a family i don't have any kids i don't have

any debt i just i just need to live and and if he lives below his means he'll be all right uh but when it comes to parking the money um especially when it comes to purchasing a home don't worry about putting your money somewhere to where it can grow fast just go ahead and put it into a money market account or you can park it online on a online savings account maybe get like a percent uh because pre-covid online savings account was right around two three percent money market accounts right around uh 1.5 uh but now anything is is a good return on the savings it's like 0.5 to maybe like 0.9 maybe one percent so i'll just put it into a money market account a savings account keep stacking in there as much as i possibly can and then once he is in

a position to where he can go out there and purchase something because i think we're going to be seeing this for about at least another 12 to 18 months and so if he wants to wait 12 to 18 months to stack up some more money and then when the housing prices maybe um even out and they're not going way above the value of the home then he can get back into it uh but mj you have a great heart and listen to me america i believe a lot of you mothers out there have a great heart and listen to me America I believe a lot of you mothers out there have a great heart like my mama but I do believe men at 36 years old need to be out on their own and

taking responsibility for their own life and we can't do that if we're at home and mom and dad is paying all of our bills so that's just my two cents you know if Dave was here, he would agree. As you got, this is Anthony O'Neill right here on the Ramsey.

So triple eight, eight, two, five, five, two, two, five. We got two more segments coming up right after this. Welcome back to The Randall Show. My name is Anthony O'Neill, and Blinds.com's 100 satisfaction guarantee means even if you mismeasure or pick the wrong color they'll remake your blinds for 100 free you get free samples free shipping and with the new promos they run each and every single month you'll save even more use promo code ramsey to get the best deal. Rules and restrictions do apply. So today questions comes from Kylie in California. She says, I am transferring debt free from community college to a university this fall.

I am 22 years old and financially independent with no help from my parents. The college system does not acknowledge a student to be financially independent until the age of 24 which limits how much funding they can provide for me i will have to take out a nine thousand dollar loan to cover this year's tuition after scholarships what given a low starting salary of my chosen career i am at loss for justifying the debt should i go back to community college and wait until i'm 24 to transfer well i see two things here that i want to address kylie is the very first thing is you said that you have to take out a nine thousand dollar loan okay that's number one that i want to call out a $9,000 loan. Okay. That's number one that I want to call out.

Number two is I want to know what kind of career you're talking about, because what's a low paying starting salary for that particular career. Okay. And I don't care how much money you make. It doesn't justify debt. Okay. You can say, i'm gonna make a hundred thousand dollars out of school it doesn't justify debt let me give you a prime example if you listen to our future podcast um i interviewed and met with a a doctor who's a dentist um has almost a million dollars in student loans but he makes three hundred thousand dollars a year

there's still we still have a math problem there that million dollars in student loans still not worth it i don't care how much money you make it is never worth it so kylie how do we do this here you got two options number one is you can work if you only have to come up with nine thousand dollars this means that you only need to make about 750 a month that's not a lot of money okay so you can do that working part-time that's number one or number two yes you can transfer or not transfer go back to community college continue to education there until you can transfer over and be independent. Or, or let me add a third one in there.

Or if I was you before I do any of that, I'm going to go down and I'm going to identify someone in a financial aid office and I'm going to ask them for an hour of their time. And I'm just going to give them the complete honest truth about my current situation. I'm going to let them know that, hey, my parents right now are not in a financial place to where they can help me. I get it that they may make some money over there, but they're living paycheck to paycheck. They cannot provide for me. So this college experience,

the responsibility of this is on me. And I don't have that. I'm working part time. I don't have the resources. Can I do anything? Can I run a social media for the school? Can I, you know, help out around the school? Can I do something to offset this nine thousand dollars? More than likely, when they really hear your heart, when they see the passion in your eyes, they will figure out something and they may not be able to take care of the full $9,000. You never know. But I have studied, I have seen, and I have interviewed people who have honestly identified someone in the financial

aid office, had the honest conversation with them, and took five thousand dollars off of their their um their tuition uh they covered their tuition i'll talk about this in my book debt free degree um and how the power of negotiating and so the very first thing i'm going to do is i'm going to go up and talk to someone in my financial aid office and i'm telling them hey if if if if if i don't do this then this is this is where i'm going to have to go because I cannot take out student loans because I do not want to set myself up for failure. But I am willing to work. I am willing to do whatever I have to do to get this nine thousand dollars either completely knocked out or at least cut down half. Can you please help me? Then number two, I'm picking up a part time job. You know, I'm going to pick up a part time job. I'm going to deliver for Uber.

I'm going to drive Uber. I'm going to drive for Lyft. I'm going to do something to generate this this part time income. And if you just drive for Uber on the weekends, Friday, Saturdays and Sundays, you can make a thousand dollars a month. That goes there. There's information right there. So we got to gotta we gotta get out of this whole i can't do it um i gotta take out student loans listen to me america listen to me kylie you listen to me too we have to take debt off of the table debt can no longer be an option it is not even it's not even we can't even see it we can't even smell it and if we can't see it. We can't even smell it. And if we can't see it, if we can't smell it, we can't taste the nastiness of it. So when we take it off the table, we'll look at all those options. So that's what I would recommend. Heather is with us in Cleveland. Good afternoon, Heather.

How can I help you? Hi, greetings from Ohio. My name is Heather and my question is, is it necessary to have a credit score? And the reason why I'm wondering this is because my own parents have a credit card where they get bonus money, and they only spend what they have month by month, so essentially they're never getting into debt. So I'm wondering, should I consider having a credit card or should I just stick with having a credit, a debit card only? I'm so sorry for the silence. I just find it so funny when people call into the Ramsey show and ask us,

should we have a credit card? You already know what I'm going to say heather you know i mean i'm taking a dave ramsey course right now on high school oh you are you're taking it right now yes sir how old are you heather i'm 18 i just turned 18 about 20 days ago 20 days well happy belated birthday i'm gonna take it nice on you now because you a teenager i thought you was a grown woman i was about to let you have it right here on the ramsey show but i'm gonna take it nice on you because i love teenagers so listen um i don't want to disrespect your parents because you're still living in their house and and i want to honor your parents because um you know

they're your parents and they've raised an amazing young lady the fact that you're calling into the show to ask me this question lets me know your parents are doing something absolutely amazing. And so I want to respectfully say this. I disagree with your parents and I disagree with your parents from the standpoint of having a credit credit card just so I can get some free miles, just so I can get some reward points, just so I can get some cash back. No. And here's why, Heather. Nearly 80% of the people are living paycheck to paycheck. About 90% of the people who have a credit card carry a balance over. The credit card system works for them. It doesn't work for us. And so for me, I've done it. I remember being your age at 18 years old.

I remember having a credit card and saying, I'm going to use it for emergencies and never carry a balance and go from there. And you know what? I carry the balance. You know, I carry the balance because I had an emergency come up because of a beautiful woman. And I want to take her to Red Lobster. OK. And so for me, what I'm going to advise you to do is don't worry about a credit score. I want you to worry about cash. I want you to worry about building wealth. Use your debit card. The debit card can do the exact same thing as credit card.

The only thing a debit card cannot do is put you in debt. OK. Bottom line. Okay. Bottom line. Okay. Bottom line. And so I'm not telling you to go back and tell your parents they're wrong because I want you to respect your parents. Yeah. I really want you to respect your parents. But when you as you're learning this system, as you are about to graduate and go off into college, I want you to avoid debt.

I want you to avoid credit cards. I want you to avoid debt. I want you to avoid credit cards. I want you to avoid student loans. I want you to avoid listening to your peers. And you know what? As you get older, you may have to respectfully tell your parents, hey, I disagree, Mom and Dad. I'm going to rock over here. I'm going to do no debt.

I'm going to rock with no credit cards. I don't care about airline miles. You know why? Because I got money and I can buy my own airplane ticket. I don't need no cash back because I got cash. I never sat down with a multi-millionaire and he said, yeah, I'm rich because

I got airline miles. What the heck? I see why Dave goes off sometimes. I need to do this show by myself more often, James. I see why he be ranting. I love this do this show by myself more often, James. I see why he be ranting. I love this. I love the Randy show. We got one more segment coming right back. This is Anthony O'Neal. today's scripture and quote comes from james chapter one verses two through three and it

reads consider it pure joy my brothers and sisters whenever you face trials of many kinds because you know that the testing of your faith produces perseverance. Winston Churchill once said that sometimes doing your best is not good enough. Sometimes you must do what is required. Nathan is with us in Huntsville, Alabama. Good afternoon, Nathan. How can we help you? Yes.

How are you doing, Anthony? Man, I'm doing better, man. Now since I'm talking to you nathan thanks for calling in bro how can i help yes well i'm i have a pretty darn uh you know unique situation here so i am trying to go ahead and save around thirty thousand dollars in cash to go ahead and pay for my third and fourth year or once I transfer. And I have a job who pays for my tuition for up to $5,250 a year and make about $10.25 an hour.

But in about June, that is expected to go up to $15 an hour. Okay. And I was just thinking about, hmm, I don't want to write up any more debt, even though I don't have any debt right now, but I just don't want to graduate debt with debt right now. So I was just thinking, what's the best way to go ahead and save right now? Yeah, so let's rewind a little bit. Where are you at right now? Are you in JUCO? Are you in junior college? Are you in high school? I'm in community college right now.

Okay, cool. You're in your first or second year? I'm in my second semester. So first year. First year, second semester, and you're trying to save up $30,000 to prepare to transfer to a four-year university to finish your BA, correct? Yes, sir. Okay, cool. And your job is also offering you tuition reimbursement of $5,200 a year, which is about $10,400, correct? Yes, it's $5,250 a year.

Okay, cool. So right now, what it sounds like, is it a reimbursement or will they give you that money up front? They just reimbursed me. Okay, cool. And so here's the thing. Right now, man, you got to work. You got to work. And here's something I want you to write this down. I'm going to give you some tools to help you because you need to get some scholarships, okay, to get to save about $30,000 within the next year and a half, making $15 an hour. I'm going to be honest, that's going to be a little bit difficult, almost impossible. Are you living at home right now?

Yes, with my parents. Okay, cool. So if you saved every dime, you're looking at about $22,000. You're still a little short. Now, are you driving? Do you have access to a car? Yes. Okay, cool. Great. All right, so write this down.

Here's the very first thing I really want you to check out, Nathan. I want you to go to MyScotty.com. And if you have me on a speakerphone, take me off speakerphone real quick. You still there? Okay. Okay, cool. There you go. Okay, cool.

Yeah. So you can go to MySkali.com. Okay. They are a great scholarship search tool. And what I want you to do is I want you to be honest. They're going to ask you some personal questions. They're going to ask you any illness you may have, any illness your family may have. What's your race? What's your age? Do you have any troubles in this area?

And what they're simply doing is they're asking you all these uncomfortable questions to qualify you for all the relationships that you qualify. I mean, not relationships, scholarships that you qualify i mean not relationships scholarships that you qualify for and so every monday they're going to send you an email of brand new scholarships and scholarships you have not applied for so between now and when you transfer to um to your four-year university you need to spend one hour every single day n Nathan, looking at these grants and scholarships. Then if I was you, I'm going to be driving for Uber every weekend. On top of what I'm doing right now for a career, I'm driving for Uber. I'm driving for Lyft. I'm delivering groceries. I'm delivering food. I'm getting us some extra money and you're putting it all towards the savings account.

So what I'm telling you to do, Nathan, is you need to spend one hour every single day looking up grants and scholarship. Go to my scholarly dot com. And then there's another book I want you to go to Amazon again. And if you go to Anthony O'Neill dot com, you can get this information over there as well. America, this is called the ultimate scholarship book and get this year. So this is going to be 2020 to 2021 because we're still in this this particular year now when we start in august it'll be 2021 and 2022 you get those two materials website myscholarly.com the book the ultimate scholarship book uh you go through those things apply for every scholarship that you can i I'm going to suggest, Nathan, that you apply for everything that's $1,000 and less first.

Then you can go back after the big ones. But right now, your main focus is keep the grades up to qualify for grants and scholarships. Number two is going ahead and get you an extra job. Make sense? Yes, sir. And what about if I go ahead and just push this over three years since the time that I transferred is about maybe two or three years down the road? I mean, it's up to you. But I think if you work the steps I just gave you, you can transfer and still graduate within four years. It's going to be a little difficult because you got to work hard.

But I mean, I don't really want you to be comfortable. I want you to be a little uncomfortable. I want you to go ahead and and push yourself so great question uh you got this and i appreciate you for calling in man praying for you uh let's go ahead and go out to where we at in cincinnati and talk to karen good afternoon karen how can i help hi i am calling because i am in the process of selling my house. We actually have a contract already that is waiting for closing. Okay. And my plan is after that to go back to renting for a few years.

Okay. And I'm just trying to decide is that really the best way to go? And, you know, because I may very well be relocating to a different area. So it would be a pretty big move. Cool. Great. So let's walk through your financials. How much money do you make a year, Karen?

About $39,000. Okay. You make $39,000 a year. Okay. Are you making any profit off of the selling of your home? Yes. How much? About $50,000. Okay. much? About $50,000.

Okay, you're making $50,000. Do you have any debt? I do have a car loan, which I am definitely going to be paying off as soon as I get the profits from the sale of this house. Okay. And I have student loans. What's your total amount of the debt, real quick?

Between the car and the student loans yeah give me a ballpark probably about a hundred thousand okay so you got a hundred thousand dollars all right cool um so yeah i think renting for you is the best bet all right so you're going to get that fifty thousand dollars and you're going to put all of that towards your loans you're not you're only going to keep a thousand of that all right you're going to pay off the student loans you're going to pay off your car your car's going to go first that. You're going to pay off your student loans. You're going to pay off your car. Your car is going to go first.

You're going to put the rest of that towards your student loans. And then from there, what I want you to do is I want you to call into the King Coleman show next week because $39,000 in Ohio, we need to get you a little bit more money. I want to see you right around $50,000, $55,000 in Ohio. And so our career expert, King Coleman, can walk you through the process on how to get your income up. So that way we can get the rest of your debt paid off quicker. And then we can get you back into a home. But Karen, there's nothing wrong with renting. Listen, I just became a homeowner four, yeah, three, three, three and a half years ago. And I've been making my kind of money for like the last six seven years but i wanted to do it correctly and i wanted to do it the right way so uh karen i i'm telling you right now and listen to me as well america there's nothing wrong with

renting we got to stop saying oh you're you're paying someone else's mortgage you are let's just be real you are but there's nothing wrong with that because being a homeowner you want to do it the right way and you want to do it the comfortable way you don't want to be house broke okay you want to get into the home and have peace and enjoy your home and not be stressed out over your home wow well today has been absolutely amazing. America, y'all have, man. This has been amazing. I just love this. I'm going to tell Dave, hey, Dave, you know, you can take some more time off. I think America loves me.

I think James and Kelly loves me. And, Dave, you know, hey, you're getting older. Let this young man take over for a little bit for you. Don't tell him I told him that, y'all. Please don't tell him I said that. Don't tweet him. Don't DM. Don't do none of that. Well, I want to thank our producer, James Child, and associate producer, Kelly Daniel. And America, remember, the caliber of our financial future will be determined by the financial decisions we made today.

And let's be real. You made the right one today by listening to your boy, O'Neill right here on The Ramsey Show. We'll be back. Have a friend or family member that needs a daily dose of Ramsey advice in their life? Let them know about the Ramsey Call of the Day podcast. It's a quick hit of advice about life and money in under 10 minutes. Check out the Ramsey Call of the Day podcast wherever you listen to podcasts.