The Ramsey Show - App - My In-Laws Want To Buy Us a House

Episode Date: April 29, 2022

Ken Coleman & George Kamel discuss: Fear about buying a house, How to pay for a master's degree, How to handle money from a settlement, Avoiding student loans, Getting on the right path in college. 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

🎵 Live from the headquarters of Ramsey Solutions, this is The Ramsey Show. It's where we talk about your life, your money, your work, and your relationships. I'm Ken Coleman, joined by George Camel this hour. 888-825-5225 is the phone number. It's toll free, 888-825-5225. You ready to roll? So ready. A full hour.

It's Friday. We're feeling good. Come on, man. Calls are on the board. Game on. Let's go. Rachel joins us in Bloomington, Indiana. Rachel, how can we help?

Hey, I'm so glad to get you guys' advice on this. Great. So my husband and I have been saving for our home for like 15 years for a house in the country. And we found something. It has a barn and, you know, opportunity for animals and things like that for our kids, which is what we want. The problem is, is we are facing a lot of fears and concerns about it, and we don't know if these are legitimate fears because it's not a good financial decision, or if this is just us stepping out of our comfort zone because we really haven't had to do that this far in our marriage. So we need help deciphering whether these are legitimate fears. Okay, great. Do you mind outlining very specifically what the top fears are?

I think the top fear is that it will be a financial burden instead of a blessing for us. Okay, what else? We're worried that we'll regret it after we do it. Anything else? We won't have enough money to do things other than live in our home, like go on vacations. Which leads me to believe, George, these may be fears that protect, not fears that hold back. We'll see. Break it down. That's good. Here's what's going on, Rachel.

I'm setting you up because these are financial in sharing these. And so here's what we know about fear. So fear can protect us, right? If we edge up to the edge of a cliff, right, and we start to feel a pang of fear, fear's protecting us. Like, slow down because you could fall over to your impending death, right? But sometimes fear can hold us back, right? It's kind of the old, the idea of the elephant that's terrified of the mouse, you know.

And so we need to figure that out. George, what do you think there with those fears? Well, my question is, you've been saving for 15 years. How much money do you have saved? Okay, so we're going to put $200,000 out of savings down on the home. Okay. have um we're going to put 200 000 out of savings down on the home okay and then we are expect we have our house paid off and we're hoping to get 200 conservatively we will get 200 000 for our home so we can put 400 000 down on on down on how much um it's 485 total so you'd have an $85,000 mortgage. It's a mouse. You're an elephant. I know. What's your income?

But listen. Okay, so listen. I stay at home. My husband works, and he makes a net of $95,000 a year. Okay. And so the big fear, like we understand we can't afford the house, but the big concern and the big fear is that the taxes and insurance are going to be pretty high, like a lot higher than what we're used to.

Do you know that for a fact? Do you know the exact number? We have a real good idea. Okay. Are you talking property taxes? Yes, property taxes. In Bloomington? Yep.

Wow. I'm a little shocked. We'reomington? Yep. Wow. I'm a little shocked by... We're blessed here in Tennessee, Ken. I'll tell you that much. Property taxes are pretty stiff here. Rachel, when it comes to mortgages, let me just tell you our parameters, and I think this will give you peace because it did for me when we were paying off our house. We tell people to get a 15-year fixed-rate mortgage, the only one I'd ever tell you to get,

where the payment is no more than a quarter of your take-home pay. That includes your principal, interest, taxes, insurance, all in less than 25% of take-home pay. And you're putting way more than 10% or 20% down, so I'm not worried about that part. So now let's look at the real numbers. You have an $85,000 mortgage. We have these high property taxes. Have you crunched the numbers to see how much of that of your take-home pay it's going to eat up? I think it's just under 25%. Okay. So after our house is completely paid off with taxes and insurance, it's still going to be $1,100 just for taxes and insurance. Okay. That's okay. I'm not as worried about that.

So here's what I'm seeing though. If you look at those numbers, I want you to look at the facts to give you some peace here and go, okay, this is not 70% of our take-home pay being eaten up by mortgage and taxes. We have 75% of our take-home pay to still go accomplish all of our other goals, take care of our family, go on vacations. We can still have a life. That's why we tell people to stick with these conservative parameters, because I want you to still have a life. And that's what you're worried about. Are we going to be able to do all of these other things if we get into this house? And you told me it's been your dream for 15 years. Yes. And so to me, there's some other fears there other than financially. You're not broke.

You're not going to be broke. No. You're going to pay this thing off within what, maybe two years? Yeah, I think it's this. And that's the thing. We couldn't decipher whether it was like we just haven't had to step out of our box. You haven't. Is it just the fear of stepping out of the box? A hundred percent.

Rachel, let me tell you what I heard earlier. George walked you through and you told him, he said, well, it's less than 25%. And he said, that's what we recommend. It's very conservative. And your immediate response was, yeah, but it's going to be $1,100 in taxes. And that's a new number for you.

And it seems exorbitantly high because based on your previous context, it is. So I remember the first time my wife and I bought a house, it was $195,000. And I thought that I had mortgaged my future away. And I was making good money. But I mean, I never owned a house. So $195,000 is like, you know what I mean? And we were living Dave's principles.

My wife worked for Dave at the time. I did not. So I think it's context. And George has just walked you through and that you're okay and can I just also say something I hope encourages you what got you here is going to get you there wherever there is you're going to pay this house off you guys are going to be baby steps millionaires true or false I'd like to say true no you will be you will be you're doing it the right way you're going to pay off that 85 you guys have any debt rachel no no dad no okay yeah

and so when you don't have any payments you have freedom and so with that freedom comes peace and so i want you to take a look most people that call into the show ken they have been wanting a house for 14 seconds they have no money to put down and they do it anyways. Right. They've saved $200,000 over, what did you say, 14 years? 15 years. It's time to pull the trigger on this. I mean, I don't even know how you've been

focused for 15 years. I would have given up on the brand. Yes, listen, Rachel, that's what we're doing. We're bragging on you and your husband. Incredible discipline to have amassed what you have amassed. You guys are going to be great. Go get that place. And it's going to be paid for in a few years,

and then you'll have property taxes, but you'll still be unbelievably wealthy if you just have property taxes and insurance to pay for it. And as a homewarming gift, George is going to send you a baby llama. Is that part of the plan? I would send a baby camel before a llama can, you know. I'm team camel.

To be on theme. Yeah. I don't know who's doing PR for llamas, but they've done a great job. It's time for camels to step up. Well, I've got a 13-year-old girl, and any parent of a 13-year-old girl gets that. I don't know where these animals came from with their popularity, but it is. What a diatribe. We just went, whew, left turn there.

Well, ADHD is a real thing, George. And the next medication point is later this hour. Hey, don't move. More of the Ramsey Show coming right up. People all over the country are discovering a faith-based and budget-friendly way of meeting health care costs through Christian Health Care Ministries. Christian Health Care Ministries, or CHM, is a non-profit organization that helps members carry one another's burdens with health care expenses, and they have successfully shared each other's medical bills for nearly 40 years.

See if CHM is right for you by visiting chministries.org. CHM is a proud sponsor of Dave Ramsey Live Events. Welcome back, America. You are listening to The Ramsey Show. Thrilled to have you with us. Helping you win with your money, winning your work, winning your relationships. I'm Ken Coleman, joined by George Camel. The phone number is free to call in for some breakthrough. 888-825-5225, 888-825-5225.

Let's go to Minneapolis where Savvy joins us on the line. Savvy, how can we help? Hi, guys. Thank you so much for taking my call. Of course. What's happening today? All right. Let me give you some background information.

Okay. So in two weeks, I'm graduating with my undergrad degree. Nice. Yes, and I'm also part of an accelerated master's program through this school that I'm about a quarter away through my master's in counseling. Awesome. So then in June, I'm getting married, and we combined will have around $100,000 in student loan debt. But I also got a job on Monday, and my fiance is currently working. He makes about $53,000 a year, and I'll be making around $50,000 a year. So total, we'll have around $103,000 per year as our salary. And we're completely down to start the baby steps, but we want to cash flow my master's so that we don't have any more student loan debt.

And we are just wondering if it would be wise to treat the master's fund as a baby step before we start the baby step, save up all the cash in around six or seven months to just fully fund that and then start our baby step. Okay. How much would be the – what's left in the master's fund to be able to pay that? It would be around – so we would have about $20,000 total. My grandparents gift every grandchild during college graduation $9,000 to use for whatever.

So we're going to put that towards the masters as well. So we'd have around 11 or 12. So you'd have to come up with 11 to cash flow your way through. Yeah. I'm not suggesting you do this. I'm just asking. If you were to press pause on the master's degree, because you're already employed,

I'm assuming are you employed in the area that you want to be in with this master's in counseling, or is it completely separate? So my master's is online, and my job, I begin after I'm married and it is where my fiance is living in Colorado right now. Right. But is it in the, is it in the field of counseling, your job? No, it's in HR. Okay. So it's totally unrelated. And you do it all online. So pausing is not something you're interested in doing because it's going to take you a while. I can see that to pay off the $103,000, even with that great income. Well, George, I mean, I absolutely believe she can cash flow it.

Your thoughts on this? Yeah, I mean, we want to avoid debt. No more debt. At all costs. And so if that means cash flowing while we pay minimum payments on the rest of our debt, that's okay. You're investing in savvy right now, and we'll get to that debt when you graduate and you've got that new job. We're going to start attacking this debt with a vengeance. So I'm okay with that.

I love the idea of you cash flowing this 11. The question is how fast can we do it, and can we accelerate that even faster? Yes. Are you going to be able to save 11 in time before the master's program starts? So in the fall, I'll be enrolling in my next classes, and we're going to use the $9,000. Each semester is around $5,000, so we're going to use $5,000 of the $9,000 to pay for that, continue saving for the next semester. We should be able to get that much money by then. And then something I forgot to mention is with my job that I just got is they will reimburse you five grand a year for

educational reimbursement. Wow. I can also, I could really get the majority of the remainder paid for by my job, but they only pay like in January and I'd be enrolling in August or whatever. So we'd have to pay forward before that. So the nine grand would cover what? How much, which months? The nine grand would cover the fall semester and then a little over half of the next semester after that. And then I would get reimbursed by my work that semester too. Well, that brings your cost down to what, $6,000? Yep, something like that. So now the question is, how quickly can I save up $6,000 making $50,000 a year?

Yes. Plus side hustles, I mean selling stuff, everything. Because what George is leading you to here is that the quicker we can fund the Masters, the quicker we start on the baby steps. Exactly. So if you've got that money set aside for the Masters, you know what's going to be paid for. Now we can start attacking the debt while we're still in the Masters program. Yes.

And how quickly is this Masters going to happen? So we'll have around three grand take home each month after paying all of our bills. So it should be around two months if we were really grinding with like the baby step mindset towards saving up for the master's money. Okay. Yes. But I think the question George is asking is how long before you finish the master's program? The accelerator program. Yeah. When is this going to be over? I, I'm sorry. So I have around two and a half years left. Okay.

All right. And what do you want to do with that master's? So I will be in LPC after I pass my exam after that master's. So I just want to be a mental health counselor in really any setting I'm down to try. Awesome. Yeah. So I'm looking forward to that, too. Yeah. Well, thank you so much for the call.

Yeah, absolutely, Sadie. You're on your way. It sounds like this thing is you've got the plan. Let's just stay on the course, avoid debt, and we'll get this debt knocked out. Yeah, I love the intensity advice. Let's get on those baby steps fast. And she does very little to fund. They can do this.

Oh, yeah. Multiple jobs. I mean, this is get-after-it stuff. Let's go to Barry in Sacramento, this. Oh, yeah. Multiple jobs. I mean, this is get-after-it stuff. Let's go to Barry in Sacramento, California. Barry, how can we help? Hey, guys. Thank you for having me on.

Sure. I've got a life-changing opportunity coming up. I've got settlement money that I never expected coming in, and I have no idea what to do with it. I've seen a lot of money go with a lot of zeros behind it and turn quickly into zeros in front of that. So I am new. I just want to know what you guys might have an opinion on what I should do with this money. What kind of settlement was this? This is a big settlement. I lost everything that I've ever owned, and this is kind of to pay me back for that. So not health-related?

No. Okay. How much is the money? How much money are you getting? Close to $200,000, $210,000 after taxes and everything. Okay. What are you doing for work right now? Right now I'm putting myself through a two-year program at a community college. I'm a single dad, and I'm working part-time, minimum wage. Okay. Do you have any debt? Just $8,000 on my car.

Okay. And no credit card debt. How much money do you have to your name in savings? Checkings? About three months worth of living. Okay. Like three grand, four grand. Well, when is the settlement coming through?

When does this hit your bank account? Well, it comes in steps, and I'll be getting my first soon at around 90, and then over the next few years, broken into two more payments. Okay. Well, the fact that you called in makes me think that you want to make sure you use this money wisely. And if you're not careful, this money could disappear with a blink, and you alluded to that earlier. Yes. So if I'm you, when this check clears, that first one, I'm paying off the debt, and I'm staying out of debt.

We're never touching debt again. And you can leave that money in there in savings. I might bump that up to six months for you being a single dad. And we got to get you away from this minimum wage job. I think you can do better in this market right now, even while you're going to community college. And Ken's got a lot of resources on his website to help you in that arena. But we have got to make sure that we use this money wisely beyond that. If you don't have a home right now, that might be a down payment fund. If you could pay cash for something that's even better, but you're in Sacramento, so that's a pipe dream. But maybe eventually this becomes a down payment for a house. And we invest some of this and we start

to really make a plan for what life looks like as a single dad taking care of our kids and leaving legacy. Yeah, Barry, you don't need to live off of any of this. Do exactly what George said, the baby steps. Hang on, we're going to give you a couple of resources. One, total money makeover. Two, I'm going to give you the get clear career assessment. I want you to take a 20 minute assessment, really give you some direction into what could be some great work for you, good money, and a whole lot of meaning as well. So hang on, we'll give you both of those resources because I want you making really good money now that you've got a good head start with this settlement. Thank you so much for the call.

This is The Ramsey Show continues. Thrilled to have you, America. I'm Ken Coleman, joined by George Campbell. You need to find out for yourself why Blythe.com is the number one online retailer of custom window coverings. You get free samples, free shipping, and with the new promos they run every month, you'll save even more. If you use the promo code Ramsey, you get the best deal. Today's question comes from Brianna in Ohio. Brianna says, my husband and I are debt-free except for our $500,000 mortgage.

My husband earns $120,000 a year, and I am a stay-at-home mom. My question is, do I go back to school for nursing in hopes to make a better living and to help contribute? Doing so would create school debt of $50,000. We would pay it off in two years, then we would be able to contribute to retirement and pay off our mortgage. Or do I just go back to the workforce at entry level, making decent money, but never really being able to further my career since I do not have an education? There's a lot here. Very complex question. Well, but we've got some logic that's kind of running into itself. Yeah.

So the question, Brianna, is do I go back to work because I want to help make more money, okay, for contributing is the word you used. But getting $50,000 in debt, paying for two years on that $50,000 in debt to help contribute is backwards. So let's go to option two because it's option two, but you've got a false narrative in option two. Option two is, or do I just go back to the workforce at entry level, making decent money, but never really being able to further my career? So the idea of you going in back to work does not have to be entry level per se. You don't know that. But if you were to go in entry level, the very definition of entry level is I'm just on the bottom rung, which means there's opportunity to climb. And you can do that. Take project

management work, right? We've got to, you know, if you're organized and you love details, and I have no idea if she is or not, but you begin to go, I could be an office manager. You know, I could do some basic accounting if I'm good with numbers. You know, there's a lot of jobs you can get in and make really good hourly money, and it's not minimum wage, and there's an opportunity for you to grow. Because here's what's going to happen. As you get into that, you can save money, Brianna, towards the nursing degree if nursing is something you want to do. So go get the day job. If nursing is the dream job, let's go get a day job. Let's contribute to paying off the mortgage or whatever. And as you're doing so, you save some towards

nursing and eventually you fund the nursing degree. But it's not going into debt. That's not going to help contribute anything other than stress and frustration. Yeah. A few things I'll add to that. I'm seeing a $500,000 mortgage and $120,000 a year. My guess is this mortgage is eating up a large percentage of their income. I think they may have too much house. Yeah, I agree. And so you might need to look into, do we need to get a different housing situation in order to cash flow my education, if that's the path you decide to go? The other piece I want to hit on here, Ken, is to help contribute. As if she's not contributing at home by being a stay-at-home mom. There's immense value there. And so I don't want you to, I think what's happening here, she's feeling like, well, I'm not contributing to this family, so I need to go out there and do work. That's not the case. And so if he's making 120 grand, we can figure out a way to make this

money work for us, but it's going to entail getting out of debt, staying out of debt, and maybe looking at if we have bit off more than we can chew with this mortgage. But either way, we're not going into debt for education and really decide if nursing is really the path or if there's something else. But to decide, well, it's either entry level or nursing. Those are the only two options out there. It's a false narrative. It's not true.

Appreciate the question. Let's go back to the phones. Valdosta, Georgia is where Gregory joins us. Gregory, how can we help? Hey, so I'm 19 and I'm just like starting my life out because I've been in community college for, like, a year now. And I'm going to make a big move, and I'm trying to decide on how would y'all start off in my position. What's the big move? Well, I'm moving to another town because right now I'm living with my own family.

And I'm going to move in with my other family so i get on my feet and in a better town in a better environment okay uh why is it a better town better environment describe that um i've seen i've seen since like it's a bigger town but i think the cost of living is a little higher right but um also is like money what it's good money flow more more professional options um right now i'm studying for automotive technician and i'm on a one-year diploma right now looking to get certified okay so i was wondering should i like i'm just kind of debating because i'm like because right now i'm in the academic portion of college and i didn't want to stress myself out so i didn't get a job

so i've been um okay so you're in so you're one year in a community college, and so is what you're doing in the community college, is that getting you that mechanical certification or however you would phrase that? Yeah, it's getting my certification in that. The only reason I'm getting certified is because I can go out there and just work on cars on the street and stuff. Yeah, that's my question. So let's just press pause on the community college for a second. You know your way around an engine, I'm guessing, yes? Yes, sir.

What would keep you from getting a job with a local mechanic in this new town you're moving to? I just wanted to be certified so I'll have like a bigger gain. I understand that, but that's not the question I asked. What would keep you from getting hired even if it's entry-level mechanic in this new town?

Anything? Not really. Meaning you got the chops. You could go in an interview. If you had an interview, you feel like you got the chops, the ability to go in and do basic mechanic work regardless of the certification that's what i'm asking do you believe that's true yes sir yeah interesting well how soon are you

making the move to the town the new town well the next semester because I can transfer colleges because they have the same campus in the other town. So that starts May the 16th, so it's pretty soon. Okay. And I'm just now finishing up on my bed. No, no, you're good. So in May, you're going to move, and how much left of the community college work to get the certification to be able to get paid more as a mechanic? How much of that is left? Right now with the academic, I only have an essay. Then May the 16th, I start the afternoon

classes for my mechanics. So what I was going to do is going to pick up a job yeah and just go in the afternoon to those classes so I'm trying to figure out what would you do I'm sorry what would you do in my position like trying to save money

because I've been working ever since I was 16 I've worked at a peanut mill and I used to make like, bring home maybe $800 a week seasonally. And I used to just help my parents with bills because I just felt like, at that time, I had to. So what's your question, Gregory? It sounds like we make this move, we get a part-time job,

we start the new semester at the new community college, we cash flow the whole thing, and life's great. What's holding you back? Yeah, I'd get a job. I don't think this is that intense, that community college. Go get some part-time work and then get done with the certification as soon as possible and get hired as a mechanic. You enjoy the work, you're good at the work, let's go. Yes, sir. Now, George, tell him how to save money once he's making full-time money. Well, do you have any debt, Gregory, currently? No, I don't have any debt. I'm perfectly clean. Clean slate. Okay.

I don't... Do you have any money in savings? No, sir. Okay. So you have no money to your name except whatever's in your checking account. I don't even have a checking account. You don't have a bank. He's living with family and going to school. But how old are you?

You're 19. You don't have a bank account. We need to fix that today. I'm going down to a local credit union, your local bank, and open an account today. I mean, where's your paycheck going? You cashing it at Walmart? We've got to figure that piece out. So I'm getting banked because that's going to help you get on your feet,

get a savings account, and start to make some wise financial moves, stay out of debt, and you'll be okay. You're a sharp dude. You'll make some good money being a mechanic in the trades. We love that. If we ain't working, we can't save. It's a part-time job, first paycheck, that bank account set up, and hang on the line.

Let's give you total money makeover. It's going to help you see how to stay debt-free, how to save, how to build wealth. Hang on the line. This is The Randy Show. We'll be right back. Welcome back, America. You are joining the conversation here on The Ramsey Show. I'm Ken Coleman, joined by my colleague, George Camel. So, George, we're talking about life, we're talking about money, we're talking about work, relationships, and saw a headline, CNBC article. College graduates are overestimating the salaries

they'll start at by as much as $50,000. All right. So I'll give you some backstory on this. As hiring demands have continued to increase coming out of the pandemic, very hot job market, right? More jobs available than there are people who are unemployed. So it's just driven up salaries. And this is part of the inflation game, right? What people need to understand about inflation is one of the inflationary measures that we tend to not think about is when targets paying a starting hourly rate of $17 an hour, well, they're going to pass that on to the consumer in the form of the cost of your LUPA or LUFA or whatever those things are called.

Thank you for remembering, Ken. Absolutely. And so what we're seeing now is obviously average starting salaries, even for college graduates, is sneaking up. The class of 2022, George, is projected to make, to be, starting salary is projected to be more than $50,000. However, this is where the reality check needs to come in. That same group of students, 2022 grads, are expecting to earn twice that amount.

In their first job. In their first job. So we've got a real disconnect there. Undergraduate students across all majors and institutions overestimated their starting salaries by 88%. This is a study from the Real Estate Witch, which needs a branding class. Wow. That's an unfortunate name. Oh, my goodness.

And 10 years into their careers, these students anticipate making more than $200,000, well over the average mid-career salary of $132,000. Wow. So, George, where do you think that's coming from? You're tied into the youngsters. I think youngsters, they have a pretty high risk tolerance, and so they're looking at college going, well, yeah, if I go to college, you automatically get a high-paying job at the end of it. As soon as you walk the stage, they just come clamoring to give you a job of six figures,

and that's not the case. And I'll tell you that. I say that because I sat down with a bunch of high schoolers as we were filming our personal foundations and finance curriculum, personal finance curriculum. And as I interviewed these students, I went, so what do you want to do? What kind of job? Where do you want to go to school? How much is it going to cost? How much do you think you're going to make? Some of them thought it was an interrogation. They ran away in tears after we were done. No one has asked them these questions, Ken, including their parents. They're not having these conversations. The teachers aren't.

Well, that's where these crazy numbers are coming from. And so it's all in their mind of just going, well, $100,000 is what mom and dad makes, so that's what I'm going to make when I graduate college. And there was such a disconnect. They went, well, this is how much I'm going to get paid as a physical therapist. Whatever the job was, it was always inflated. Now, they may get there over time, but year one, you're not going to be making six figures in most jobs. No, listen.

This information right here, folks, is why it's vitally important for high schools, public, private, and colleges to teach financial literacy you know i mean i mean it's it's so important i'll tell you what it leads to they have no idea it leads to the student loan crisis we're seeing because students go well ken i'm happy to take on a hundred thousand dollars because i'll be able to pay it off easily that's always the case and what happens they have 150 000 in student loans and they're making $42,000 a year, and then they feel like they were lied to, and they demand student loan forgiveness because this is a scam. Oh, yeah.

When they really just didn't do their due diligence, they didn't do their research, they didn't have the right conversations, and it's heartbreaking. I don't want this for any student. It really is because here's where the perfect storm collides. They've created this mythical salary and this mythical financial journey that they're going to be on, and then that doesn't happen, and then they've grown up getting a trophy just for showing up, right? Youth sports.

And it's just like, so then all of a sudden the reality hits them, and it's no joke. It's not funny. It's disheartening and disillusioning when they come out and they feel like i went and did all this time i got all this debt i could barely afford the debt payment and i was supposed to have this life you talk about rocking somebody's world while their brains are still developing well an 18 year old has no idea what it's like to pay bills to pay insurance no um and so they walk into their adult life going, hold on, I have to make a car payment and my student loan payment

and my credit card payment, and they can't breathe. So you've got to have a reality check here. Come on, wake up, folks. Wake up. All right, Ashley is joining us now in Chicago, Illinois. Ashley, how can we help?

Oh, my word. Hi, guys. Thanks for taking my call. You bet. Ashley, it's all about you. What's happening? That's awesome. George, you're my favorite, by the way.

Yes. Wow. Take that, Ken. Hold on a second. James, can I take this segment off? Ashley, give me a second. I have to take the dagger out of Ken's heart that you just put in there. It's okay, George. I'm going to take a smoke break.

Go ahead. Ashley, how can we help today? All right. So in short, my mother-in-law is trying to buy my husband and I a $500,000 house. Whoa. And yeah. And he's an only child, works in the family business, is planning to take over. And we've also been living rent-free in one of their properties the last three years since we've got married. So we've never really had to worry about, you know, the normal bills, all of that.

And so I came from a different background. I'm kind of feeling like we're being taken care of, which is a good and a bad thing. But I also don't feel like we're adults. He thinks we should be taking, kind of taking advantage of this and looking at it as, you know, the Lord is blessing us with so much. And she wants to buy us this house because we had our first daughter four months ago. Congratulations. Yeah, that's awesome. Thank you.

Is she paying cash for this house on your behalf? Is she just gifting you a paid for $500,000 house? Yes, exactly. All cash. Whoa. So I kind of feel like we're cheating our way through the baby steps. But I also feel like if we said no to this, I think I'm looking for permission.

I'm not really sure. Well, George is your favorite. So, George, give her permission. Wow, you've lost Ken. He's done with you, Ashley. No, this is fascinating. No, this is a wild scenario. I mean, in this case, I don't want you to feel like you're cheating.

Now, I don't want her coddling you guys forever and giving you an allowance. You're grown adults. And so I think what you're wanting is that sense of independence and agency and going, hey, I pay my own bills. I'm a grown woman. I'm a mom. Which, by the way, you will. Exactly.

Which you will. And so I'm looking at this as they've left a legacy. They want to bless you with this. And so now if she said, hey, I'm going to take out a mortgage they want to bless you with this and so now if she said hey i'm going to take out a mortgage in your name and you pay the bills i'm going now i do want to know if there's any is there any agenda here is she saying hey i'm hands off i don't get to tell you how to live your life financially i just want to bless you with this is there any strings attached not that i know of um in past, they've definitely been the more, you know, want to know what's going on in our life.

Our house was next door to them before, and they want to kind of be in our business, but it's gotten a lot better the past year. This house is about 20 minutes farther from them from where we are now, so we do like that idea. That's healthy. But the fact that my husband is an only child has taken longer to... Have they spoiled him? Oh, yes. It sounds like he's had it pretty good. Now we're starting to get... He knows it. Well, is she still folding his laundry? I mean, what level of coddling is happening here?

Oh, very... So he's very independent at home. Okay, good, good. He cooks for me. I love it. I just wanted to make sure because sometimes you kind of have those helicopter parents that can't let go of their little boy, and it's a grown man now, and he's a dad, and we have to separate. So if I'm you, I'm taking this deal. I mean, this is the deal of a century, and it's going to catapult you into baby step seven. And the best thing you can do is take advantage of this by staying debt

free, building unbelievable wealth, leaving a legacy for your kids, and maybe doing the same for them one day. I don't know what that looks like for you guys, but I'm taking this deal. And I think you may have to grapple with the emotions of this being handed to you and feeling like, wow, what such privilege, but this is what legacy looks like. And so I'm going to take that as a blessing and make sure there's no strings attached and say, hey, mom, you know, in-laws, love you guys, but there's no say over what, you know, you tell us to do with our money and our life, but we so appreciate you guys. This is the biggest blessing of our life. Any advice on how to explain this to my family who's in a completely opposite situation?

Are they going to be upset when they find out we're moving? I don't think they're going to be upset. I think they're going to wonder how are we doing this? Well, you know, you're not taking a poll. And so you tell them as news. You're not asking for an opinion here. And you move on with your life. You say, Mom, Dad, I love you guys. We've been blessed with this, and I wanted to let you guys know. And that's it. Yeah, really great. Congrats on the little one. Congrats on this unbelievable gift.

It is a blessing. I agree with your husband. Take it. Hey, George, good stuff. Good hours. Thanks for hanging out. I want to thank James and the entire team behind the glass. And most importantly, I want to thank you, America.

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