The Ramsey Show - App - Should I Get a Reverse Mortgage?

Episode Date: May 5, 2022

Dave Ramsey & George Kamel discuss: How to use the proceeds from a family property, Whether or not a reverse mortgage is a good idea, Picking up extra work to pay for 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, 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. I'm Dave Ramsey, your host. You jump in, we'll talk about your life, your money. George Camel, Ramsey personality, is my co-host. As we talk about your money, your relationships, your career, your job, your mental health, anything about your life you want to talk about, we're here to work with you. The phone number is 888-825-5225. Matthew is in Baton Rouge. Hey, Matthew, how are you? Doing well, Mr. Dave. Thank you.

We're blessed and highly favored. Thank you, Mr. George. Also taking my call today. Sure. How can we help? Well, just really quickly, just a short background. FPU graduate three years ago, 18 months debt-free, been 18 months debt-free. So 23 years here.

We shield $89,000 in debt. I believe in three times your emergency fund. I like to be very careful. I have my six months in place of expenses. I'm investing my 15% self-employed, and we are forced to sell a house that was given to us three years ago because the family member passed away. And in short, now we're going to get hit with capital gains. So we're doing a 1031 exchange, and I feel that I'm where I should be to go ahead and start investing, correct me if I'm wrong with that,

but I have no other choice unless I want to give my silent partner a lot of my money. And I don't feel like giving Uncle Sam that money. So pulling out the 1031, my question to you is, I want something safe. I've evaluated my risk factor, my returns, and my maintenance. And I want low risk, good return, and low maintenance, of course, but I'm looking to start generating the revenue for my retirement that's what i'm looking at y'all all right so the house you inherited it and uh what was it worth at the time you inherited it what it's worth no at the time you inherited it what was it worth uh well we just three years ago, I wouldn't know because... Well, I mean, give me a guess.

For example purposes, give me a guess. I'm going to tell you $250, Dave. Okay, so that's our example, all right? So anything you make above $250, you're going to have capital gains on. So what will the house sell for? We have it under contract at 285 okay you don't have any taxes 15 on 35 000 it's not even 35 000 after expenses when you're selling expenses are also deductible

so i mean you're talking about three thousand dollars taxes. You don't need to do a 1031. Okay, so the house was an act of donation, not a true inheritance due to a will or death. Oh, I thought you said it was an inheritance. Okay, that's different. Sorry if I did, but no, sir, I was trying to get you. No, that's okay. That changes the math, though. That changes the math because now your basis is what they paid for it,

which is probably little to nothing. Exactly, $21,000. Yeah, okay. So now you've got a big capital gain. I'm back with you on a 1031. Okay. Sorry, sir. That's okay.

I'm just making sure I'm touching my basis here. Yes, sir. So why have you had it rented during the three years? No, sir. They were living in it with use of it. So that was where the family members were staying. But before they died and all that, they took care of all their property, their last, what they want to do, you know, where they want it all given to. So they gave it all away, and we said, well, y'all just stay there.

Y'all will just stay there, and we'll take care of you no problem but now they're gone so can you are you sure have you checked with a tax person that you can claim this as a rental property because it has to be a rental property to do a 1031 to another rental property it doesn't sound like you collected any rent that's that would be correct i did that talk with the accountant she's just telling me that we have to you know do the 1031 we don't want to put capital gain on it but she's aware you didn't collected rent on it sir she's aware you collected no rent on it yes i want you to get another tax opinion yeah i'm not sure but i mean i i you know it's a like-kind exchange an sb income property for income property and there's been no income on this property. So I'm a little worried for you in the event of an audit.

But let's pretend, let's go forward that the 1031 works and that my concerns have been allayed. You'd get some good advice because I'm not sure. And you're going to say you have $285,000 you need to reinvest into another piece of real estate that produces income. Yes. And so you're asking what to buy? In short, just a couple ideas that you would say are safe, conservative, and as a beginner. This is my first one, okay? I have no clue.

We love the Tennessee. We thought about cabins. We thought about commercial property here and ran out to tenants. But the economy and the prices and the real estate has got us so whacked out, I just don't know what. But I'm forced to do it within six months, I believe, is my max. I've got to close. Right.

So you've got to find a $285,000 property that you like that fits your guidelines of low maintenance, low risk. And, no, it's not a cabin in Tennessee. It's an income-producing property near you. And that's probably another house is probably what it is. But you're probably not buying an old house in a junky neighborhood. You're buying something that's a little newer and is not going to require as the level of maintenance and uh will serve you going forward uh you've already got it under contract to sell it why was it you sold it again well it would sit out there vacant it's it's uh you couldn't rent it away no sir in the area of the state we live in it would be tore up full of drugs and lord knows

what else i got you the word before that town goes even worse yes sir i got you okay i understand it's not it's not something you wanted to keep is what it amounts to okay so yeah you got it what i'm looking for is i'm probably looking for a nice condominium that that's a you know that's five years old or something and it doesn't have a lot of maintenance issues that I can drop 300 grand into, or 250 grand into, and just keep it real simple. Don't overcomplicate this, but you do need to check with someone other than your accountant in addition to your accountant and get another piece of tax advice and make sure that this 1031 will fly. Yeah, I would jump on to RamseySolutions.com, connect with a another piece of tax advice and make sure that this 1031 will fly.

Yeah, I would jump on to RamseySolutions.com, connect with a good ELP tax pro and a real estate agent to help you start running comps and going, hey, where am I going to find some good stable rent in a good neighborhood for this price range? And if you can do that with cash, I think you're going to be in good shape. Yeah. So for those of you wondering what the flip we've been talking about for the last five minutes, a 1031 tax deferred exchange is what you do instead of trading properties. In the old days, you used to have to trade properties if you wanted to move your gain from one property into another. Let's say he had a house to sell and he wanted to not pay capital gains on that $285,000 in his case.

Then he would have to go find another piece of property, and the person that's buying his property would buy the other piece of property to trade with him, and he could roll it over. They simplified the laws 25 years ago, probably, and started calling it a 1031 tax-deferred exchange, where you sell the property into a special 1031, that's the number in the IRS regulations, 1031, into a 1031 escrow account, and then you have six months to buy another property, and it allows you to roll your equity into the other property as if you had done a trade. Without any tax implications. Without any tax implications today. When you do sell that other property, now you got the old basis in that rolled over, so you're going to get your butt taxed off then.

This is The Ramsey Show. Let me tell you a story about two families that are very much alike in a lot of ways. Both families have two working parents and a couple of young kids. Each has debt and has struggled to make ends meet. But they're starting to make headway with their budgets and smarter decisions with money. They have dreams and plans, and the only real difference is that one family has the right amount of term life insurance,

and the other doesn't. Big difference. If one of the parents die, and that does happen, their well-being would be destroyed. Paying for the mortgage, utilities, food, and other bills would be impossible, let alone saving for education or retirement. That's why every day I talk relentlessly about getting term life insurance. Just go to zanderinsurance.com or call 800-356-4282 and see how inexpensive it really is. Be the family that takes those deliberate steps to be different and responsible. It really does make you the hero of your story, and it puts you on course for better things ahead. George Campbell Ramsey personality is my co-host today on On the phone in Dallas, Texas is Logan and Aaron.

I'm sorry, Aaron is with us. And I'm here to do a debt-free scream according to my screen. How much have you guys paid off? We paid off $119,424. Way to go. How long did this take? Right at 24 months. Good for you.

And your range of income during that time? We started about $58,000, went up to $135,000, and now we're about $95,000. Cool. Good for you. Very good. So what do you guys do for a living? I'm a full-time firefighter. I'm a trauma ICU nurse.

Oh, wow. Very good. What kind of debt was your 119 000 well unfortunately we were very normal so it was we we had uh we had both of us had student loan debts that we that we kept putting off so we had a bunch of interest with that we had two vehicles. We had medical debt, a family loan, a lawnmower. Uh-oh. How much do you owe on your lawnmower? I owed $3,500 on the lawnmower.

That's not as bad as I've heard, so I'm glad. That's still, I mean, that's as much as I borrowed from my first car, but yeah, no big deal. Oh, my gosh, you guys. How long have you'all been married? We've been married 10 years this past December. So what happened two years ago that put you on this Ramsey journey? Well, again, unfortunately, so when we got married, so like I said, 10 years ago, my father-in-law came to us whenever I asked him to marry Aaron.

He said, you've got to do two things for me. He said, you need to love the Lord God with all your heart, body, and soul, and you've got to go through financial peace. I like this man. Yes, sir. And the unfortunate part is he forgot to say that we had to do what the lessons taught. That was assumed. So we kind of forgot that part.

No box checking checking we actually have to implement yeah okay you were davish oh not even yeah you just went you just anything to get the girl i got i know what you're doing all right yes sir that's right so we ended up um in october of 19 uh i was going back and forth to uh uh to dallas we live a little east of Dallas and had a pretty good commute. So I started listening to the show again. And it was that point of I was stressed out. We had two car payments. Aaron wasn't working at that time. I was absolutely stressed out. And it was just one of those I'm sick and tired of being sick and tired, I've had enough. And I came back and talked to Erin that evening. I was like, hey, we've been doing this wrong this whole time.

Let's finally do it. And she was like, you know, God was putting on my heart to let's do this again too. And it was game on after that. Wow. So what did you guys do? Did you go back through FPU, read a book? What kind of got you back on track and motivated? So I have a copy of Financial Peace, and I read that again. And then we did go through or get Ramsey Plus again,

went through the lessons. Our church was putting on the class at the time, so we also got plugged in with that. i jumped on the facebook group uh which was really awesome just because we're able to get encouragement get feedback see other people's you know questions and stuff and that that was really motivational for us in getting through that two-year grind so the ramsey baby steps facebook group yes sir Okay. They're awesome in there. So what's this income jump? You went up to 135 back down to 95. What was going on there? I went back full time as a nurse and just not that like COVID was a blessing by any means, but they were in dire need of nurses. And so they were paying well, and we made the decision to put me back full time for

to help us get out of. Wow. Yeah, that was one of them. And then we did a decision to put me back full time for to help us get out of wow yeah that was one of them and then we did a few other things we sold we sold just about everything the kids are basically all we kept that's all you need at the end of the day yeah oh that's that's right and uh my i actually got several raises um at work and then Erin went to PRN, which is just a very limited part-time because she wanted to go back, be back at home. Her mom was battling ALS at the time, and she wanted to go back and be with her. So we were willing to take that pay cut going back down. Yeah, once you got free yeah

for sure yeah very cool that's good well the good news about nursing is you can jump in and you can jump out and then jump back in i mean you can do whatever you need to do and that's beauty of of her situation and you guys just decided game on and knocked it out what do you tell people the key to getting out of debt is um my my key and our key for it was i have two was get mad at it you have to get mad at it um you you can't give up the fight you can't get lazy you can't look at what anybody else is doing you have to look at your spouse or if you're single look at yourself in the mirror and say we're going to do this and then the second one which is even bigger is uh prayer both of those are really good ways to get mad yeah that's right that's some of my best prayer time yes yeah that's uh my my my thing was that it was just finding that why because we had the

head knowledge back from 10 years ago and it that really wasn't enough for us until we got our why and that sick and tired and just mad at ourselves for what we've, you know, the situation we put ourselves in. In a sense, what you tolerated. Yes, sir. Correct. And you said, to Aaron's point, you have to reach the emotion and say, I'm not going to tolerate this anymore. I'm not going to tolerate this anymore. I'm not going to tolerate this situation.

I'm going to tolerate this behavior. I'm going to tolerate these products in my life. I'm going to tolerate life done this way. We're going to do it a different way. And when you reach that sick and tired of being sick and tired, that's a very good point. When people finally say, I've had it, that's when they change their lives. That's good. You guys are powerful.

You're very cool. That's incredible. How guys are powerful. You're very cool. That's incredible. How old are you two? I'm about, I'm 32. And I'm 31. And you're free. How's it feel? Oh, irreplaceable feeling.

Yeah. That was, I was able to take, actually go on a men's retreat the weekend after we got debt free. And it was amazing amazing it was the first time i hadn't been stressed out taking a trip my entire life and we've been called to be givers and god called us early in our marriage and we just always like how are we going to get there and now we see we see like okay we're going to be able to give like we've always wanted. Wow. There you go. That's big. I love that. I love it.

Very well done, you two. Very well done. We're proud of you. Great, great job. Who were your biggest cheerleaders outside the two of you? Well, her dad and mom were very, very helpful. Thankful that you're going to do it since he made you go through the class. That's right.

He's been, I mean, he's just so proud that we did it, and my folks helped us out as well. And then I've spent so many times calling our FPU leader, Dan and Cynthia Kuhl. They just blew it out of the park, and they gave their story of how they worked the baby steps and just the way they presented it. It just blew my mind, and that was a big moment for me to to really kind of commit to this all right well way to go guys we've got a copy of baby steps millionaires for you that's the next chapter in

your outrageously generous story that's where you're going to be you're going to put yourself in a position you can give away numbers that you only used to dream of owning and pretty good stuff. How Ordinary People Built Extraordinary Wealth, How You Can Too, our latest number one bestseller around here at Ramsey, and send you a copy of Total Money Makeover for you to give and disturb somebody's life with that and give it away and mess with somebody a little bit. Proud of you guys. Very, very well done logan and aaron in dallas texas

119 000 paid off in 24 months making 58 she goes back to work up to 135 she decides no more after i'm debt-free back down to 95 count it down let's hear a debt-free scream all right we brought lydia and gabby our kiddos with us and they're gonna to do it with us. Alright, y'all ready? Alright, three, two, one. We're Dead Fans! This is how it's done, ladies and gentlemen.

This is how it's done. They even sound adorable. That's sweet. Man. They are adorable. We saw the YouTube pics for those of us that get to cheat that way. Cute kiddos. Oh, that's fun. Young family changed their whole family tree, changed their future.

They took control. They're not waiting on someone out of Washington to fix their life. This is The Ramsey Personality, is my co-host today in the lobby of Ramsey Solutions on the debt-free stage. Glenn and Wendy are with us. Hey, guys. How are you? Hey.

Doing great. Welcome. Where do you guys live? We live in Morris, Alabama. Which is near? A little north of Birmingham. Birmingham. Yes, sir.

All right. Cool. How much debt have you guys paid off? We paid off $100,000. All right. How long did this take you? 22 months. Good for you.

And your range of income during that time? $130,000 to $138,000. $130,000 to $138,000. $130,000 to $138,000. What do you guys do for a living? I'm a wastewater treatment plant operator. And I'm an occupational therapist for the local school system. Excellent. Very cool.

What kind of debt was the $100,000? $3,500 was a 401k loan that I'd taken out, and then the rest of it was the remainder of our mortgage. You paid off your house? Yep. Looking at weird people at weird people yeah i love it what's this house worth well my wife was gonna be so mad if you didn't call us weird today you're weird yeah you are officially weird yeah don't be mad yeah what's the house worth uh cornazilla pushing 300. Wow. Okay, excellent. Good job, you guys. Good job. How long have y'all been married? 26 years.

Oh, cool. How old are you? I'm 47. And I'm 48. All right, good. And a paid-for house? Yes, sir. Wow.

That's record-breaking, man. That's very, very cool. Very exciting. Very cool. Congratulations. So what put you on this journey 22 months ago tell us about your story um i had i listened i started listening to you back in the 90s i guess i've known about dave ramsey forever and loved the show and we were ish our whole life i guess

our whole married life anyway uh but 22 months ago i changed jobs and um we had to do something about that 401k loan that i'd taken down. And we knocked it out very quickly. And we kept thinking, well, if we could do this, we could just take that mortgage out very quickly. And our goal was to do it by the time Wendy turned 50. But we were able to knock it out even a little quicker. Wow. And in 2018, I have two of my coworkers, Jennifer Nick and Ashley Dees, who are my debt-free cheerleaders. We walk after school every Wednesday, our walk-in Wednesdays.

And one of the things we talk about is our financial goals, our financial dreams. And so I'm the first of the three to get to come do this. And they're on their way. All right. Look forward to all of them. I love it. All debt-free houses and everything. Excellent job, guys.

Very, very, very well done. This is awesome. You get some people around you, and you feel a little bit of that progress. You get a taste, and you go, okay, we paid off three. Let's pay off 97. Let's go. Yeah. Was that scary when you were just looking at that number going, how are we going to do this?

Yes, it was. So we started our debt-free journey January of 2020, right before the pandemic hit. And from January to May, we were making some progress, but it wasn't until we started doing the every dollar budget that we really started to see that progress come to fruition. And at the end of every month month no matter how many dollars or cents were left at the end of each category we added all that up and threw it at the mortgage we called it our fun math at the end of each month yeah i love it well done guys great job man that's a three hundred thousand dollar paid for house so how much do you guys have in your investments in your retirement uh we're a little

over 200 okay in that area all right up to a half a million yes sir net worth excellent you're gonna be millionaires before you know it yeah that's what we're looking for good for good job you guys very cool all right so every dollar is part of the key what other keys do you tell people it is to having your house paid off i just think the fact that we were we were just on the same page the whole time um was was tremendous uh and getting it knocked out we we hardly ever there was no argument it's like we knew what we needed to do and we got the job done was there fights at all or just with money i'm just curious there weren't uh and that's one thing that i wanted to be sure and say is how God united us so completely during this journey. Last night we were talking about that very question, and neither one of us could think of a single time that I wanted to do something that wasn't in the budget or he wanted to do something that wasn't in the budget.

And I just feel like God honors financial responsibility, and he has been with us through love the whole journey 22 months of focus and boom you're done yeah and you're not even 50 years old right just like that wow so how's it feel to not have a payment in the world it's wonderful i was telling wendy that this is the most carefree i've been since i was a kid it's it's amazing to just the feeling you have just with the peace and the freedom of being debt-free. Wow. Was it momentous with the last payment? How'd you guys do it?

So it was October 29th, this past October, and we went to a little restaurant out in Bessemer, the Bright Star Restaurant, had our picture made in front of it, and it was just such a happy a happy day and the other thing to mention too is our son is a college student at uab and we were um cash flowing cash flowing

his college his college at the same time wow we had some car repairs we've got all old cars now so that's our next thing is to yeah we're gonna step into our real dave car next time get you a good car yeah i like it i like it that's fun well congratulations you guys absolutely amazing very very very well done okay doesn't sound like this was super hard once the two of you decided you just went after it it really wasn't and one of our biggest things that we struggle with is eating out yeah that was yeah, that was hard. Out to eat. And so what we did in our budget is we allowed ourselves one out to eat a week on grocery night. And it was usually fast food.

Yeah, and that would fill us up before we went and bought groceries, so it kept the grocery bill down. Don't go in there hungry. Yeah, exactly. Well, you're in Baby Steps 4, 5, 6 at that point. That's perfectly allowed. Now, if you're in Baby Step 2, I at that point that's perfectly allowed now if you're in baby step two i'll fuss at you for going out but you guys are just working at working that baby step six to get rid of that mortgage and you knocked it out way to go thank you very proud of you guys you're heroes man oh yeah man you did it you're just weird excellent job all right

glenn and wendy we got a copy of Baby Steps Millionaires for you, How Ordinary People Built Extraordinary Wealth, How You Can Too, number one bestseller, and that's the next chapter in your story. Also, a copy of Total Money Makeover. You can give it away to somebody, stir up a ruckus, get them started on this, tell them what you did, and it's not bragging because you did it. And I'm proud of you. Very, very well done.

Ramsey's proud of you. George is proud of you. very well done ramsey's proud of you george is proud of you well done you guys glenn and wendy birmingham alabama 100 000 paid off in 22 months making 130 to 138 house and everything count it down let's hear a debt-free scream three two one we're debt free! Yeah! Woo! Man, oh man, oh man. It's just a matter of intentionality.

Once you decide, I'm going to be intentional. I'm going to make every one of these dollars behave. I'm not going to live like this. I want to be free. Once once you decide then you'll start adjusting things in your life to get there and you know what was their big sacrifice they only ate out once a week oh i thought i don't know how they're gonna make it i mean that was incredible but they didn't i mean they just walk up my point is is they didn't have to really strain they had to be intentional yeah there wasn't like some kind of hold your breath and be underwater for two hours grinding you know there wasn't anything like

this was just i'm gonna do it on purpose and once you start doing it on purpose the level of traction is incredible oh yeah looking back 22 months is like a snap yeah and you're done but when you're looking forward you go man two years i don't know if i can do it when you look back you go man that was a blip in our life and now we're free forever that's a different mindset 24 months ago we had this thing called covet i mean it was everywhere we were all shut down 24 months ago right now the whole place was shut down right feels like yesterday and a decade ago at the same time. Yeah.

I'm going with the decade part is the one I'm sticking with. Oh, my gosh. You know, but I mean, you know, it's how fast it goes. Yeah. That feels like 20 seconds ago in a way, right? And in another way, it feels like a decade ago. So there you go. And if you sacrifice for 22 months, you won't have a mortgage payment for the next 22 years.

It's amazing how that works. Isn't that neat? If you're willing to do what it takes. If you live like no one else, later you get to live and give like no one else. No discipline seems pleasant at the time, but it yields a harvest of righteousness. George Campbell, Ramsey Personality, is my co-host. I'm Dave Ramsey, your host. This is the Ramsey Show. Thank you. George Campbell, Ramsey personality, is my co-host today.

Open phones at 888-825-5225. Sophia is in Salt Lake City, Utah. Hi, Sophia. Welcome to the Ramsey Show. Thank you. What's up? My question for you today is my husband and I are just about ready to complete baby step number two, and we decided to relocate once we complete baby step three. My question today is do we purchase a home where we plan on relocating and keeping the home we are in

so we would have two mortgages and try to sell this one? Or do we go and relocate and rent while we sell this home? Or do we just sell this home and then purchase another one? We're wanting to save up 20% before we buy a new home for a down payment. Okay, good. I like option three where you just sell it and relocate. What's holding you back from doing that? Just that we weren't quite sure. We won't have the 20% right away.

You don't have enough equity in your current home we do um we're we're just kind of there's not a whole lot of homes on the market where we're relocating so we figured that if we just rented that it would help us save the 20 for down and then we could find the home that we really want. So sell the house. Wait a minute. The current home that you own does not have any equity? Oh, it does.

It has about $150,000 equity. Okay. And how expensive a home would you buy when you relocate? Right now, the homes are going for about $400,000 over there. Okay. That would be 25% then, so you'd be just fine, right? So put your home on the market and sell it, and then go over there and buy a house with that money.

Perfect. That's option C, right? There's nothing wrong with renting at the new spot for a while and figuring out what the lay of the land is and where you want to live and all that stuff so what i'm gonna do is i'm gonna get in touch with a ram go to ramsey solutions.com get in touch with a ramsey elp get your house on the market and uh is there a job change and everything involved yes so i can actually actually change my job right now. He would need to stay for six to eight months. But I guess we're just kind of waiting until we have baby step three. It would make us feel more secure.

Yeah, that's fine. No problem with that. Before we leave. But, I mean, the point is in terms of the real estate transaction, once you have the jobs lined up and the other logistics other than the real estate, and you're ready to go, okay, ready, set, go, whatever that means to you, okay, put that house on the market. It will sell very quickly in its current environment. Agreed? Agreed.

Then you just take that contract in your hand. It's going to close in 30 days probably. And you go to the other place and you start looking for houses and you buy one to close around the same time that yours is going to close. If you can't find one in the new place because there's nothing available or you can't find a decent deal or anything like that, well, then just rent. But renting is your worst-case scenario. But selling the current property and, you know, within the period of time that it's set up to close, buy another one and close on it simultaneously or within days. You have to close on your first one, the one you're selling first,

because you got the money to buy the second one, right? Correct. I mean, if you close on yours on a Tuesday and the one you're buying on a Wednesday, and you load up the truck and you head to Beverly. Okay. Would you ever suggest that we move before baby step three is completed? That'd be okay. It's not the end of the world.

Okay. Because you're going to have $100,000 in your pocket. Correct. When you move. So you're not going to be broke um okay you know so it's okay if you don't have it completed or if you only had three months or something if it makes you feel better to have that but my point is if you cannot then set up a simultaneous transaction like i'm discussing meaning you can't find something that you can close on or move into

uh or you you know you you move into a rental for two months while you get this all figured out but you don't necessarily have to rent for two years in the new location you know if you just the trick is just to get the logistics lined up of the two deals and so you know that's what we're looking at so i did a similar thing this year my last year myself sophia we sold our we had this big old huge house up on a hill that we loved and we lived in for almost 15 years. And while the market was hot, we decided we're getting out of that. And so we bought a lot to build on that we'll build on someday. And we sold that big house and so we were homeless and um ran out and bought a house in the same neighborhood

as the lot to camp in for a while using the money from the sale of the first house that's called glamping dave yeah i've seen it's not it's not it's not camping it's glamping you're right there we go pretty luxurious accuracy pretty luxurious camping site but yeah but the uh point being that that we just had to work out the logistics right we had to figure out okay and i didn't need to close on the new house that we're glamping in until the first one closed and so we had to set up the closing to be after that i had the money to buy both but i didn't want the other one unless the big one sold closed not just sold i want the money in my hand that's right and then we're gonna go make the deal. And we closed them the same week.

Wow. And then had the moves arranged, the possession arranged, around where we had a little bit of time to make the move without falling in on ourselves. So it's just a matter of negotiating and finding something where the logistics line up and work, and then you're going to be just fine. So good question. Ross is with us in Bowling Green, Kentucky. Hey, Rossoss what's up

how's it going um i am trying to decide if i want to pick up an extra job to help pay for college sure summer why not um well i'm already working one job and plus i'll be doing a emt course so i get my basic emt so i can try and start do firefighting which i'm still trying to get my probationary books signed off on that so i just i don't want to college and emt yes why which one are you going to do i'm well i was going to college first and i was originally just going to get my bachelor's because i was going to go into law enforcement but my stepdad who's a state trooper talked me out out of that. So I looked into firefighting. So why are you still going to college?

Because at this point, I feel like I'm halfway through, and I feel like it would be a waste of money if I wouldn't finish it out and get something from it. Okay. So you can't cash flow college if you don't pick up this additional job? You're going to have to go into debt? I don't know because tuition is about $12,000, and I'm not going to be living on campus anymore. I've got past the two years that I had to live on campus.

And I feel like I could get enough money, but it's just now I'll have an apartment, and I guess I'm a little worried because I know I'm not gonna be able to work as much during what I have classes well the focus right now is getting through your courses getting through your EMT program and doing it all debt-free so whatever that takes I'm doing it yes okay priority number one EMT school priority number two finish college priority number three way the flip down the list, is an apartment. Are you in town with your parents? No. Okay.

Then get the cheapest freaking possible thing you can. Don't be working for an apartment. Be working to do the other two goals. You got roommates, Ross? Yeah, I'll have a roommate. How much more expensive is the apartment than on campus? The apartment's less money than on-campus living. Okay.

So you should be able to, with your current expenses, cover that, right? I should be able to, yeah. Okay. Well, when in doubt, I'm you're you're you're what 22 23 years old uh 20 20 years old yeah you're not gonna die from working so when in doubt i'm gonna work more make some money because a big old pile of money solves a whole lot of god's problems right here you know what i'm saying and you know getting up the edge and then going oh man i'm i'm 500 bucks off 500 dollars off in your world's a lot

off you don't be 500 off so i'm gonna have the extra money extra pile of money that big old pile of money gives you peace that you get to hit all your goals, which is finish school and EMT school all at the same time. Go download EveryDollar. Get your EveryDollar budget going. Start doing some math and look at reality. Yeah, you need to map out what your expenses are going to be on the EMT school, on your tuition, and on the apartment, and go, this is how much money I need plus some. And if that means you're working extra, have at it, brother. Most of us worked when we were in school. None of us died from it. This is The Ramsey Show. Do you love a good day, Brandt? Want to see the latest Ramsey Show videos going viral?

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