The Ramsey Show - App - Should You Buy a House Right Now? (Hour 2)

Episode Date: March 3, 2022

Dave Reads Mean Tweets is back! And George Reads YouTube Comments. They also discuss: Where to put college savings, What type of house you should buy, Working vs. going to school, Negotiating with your auto insurance company, Navigating military moves. 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. George Campbell, Ramsey Personality, is my co-host today. Open phones at 888-825-5225 as we talk about your boundaries, your relationships, your mental health, your career, your job, your money, and it's all on the line right here on The Ramsey Show. 888-825-5225. Mary's in Orlando. Hi, Mary. How are you? Hey, Dave. I'm doing well, how are you? Better than I deserve. What's up?

Good. So my husband and I are in baby step 4, 5, and 6, and my child is going to college in the fall, God willing. Cool. We have enough in savings to cover the cost of her tuition. She's been offered some scholarships and things like that, but we have also made it very clear that she's going to have some skin in the game, and we've given her an amount that she has to pay each year. It's minimal compared to the tuition, but it is significant for her. How much? $5,000 a year. Okay. Now the question is, something that my husband and I are debating

are what to do with that $5,000 if we keep it for ourselves because we're splitting the rest of it, or do we put it in a different savings account to give to her at the end of her college career? Depending if she does well and everything, finishes school and takes advantage of the opportunities that we've given her you're divorced no no no why are you splitting it i'm sorry you said we're splitting the rest of it no because we're footing the rest of it footing it i misunderstood you i'm sorry okay okay uh you could do either one i mean it depends on what you want I'm sorry. Okay. Okay. You could do either one.

I mean, it depends on what you want to do. It's your money. There's not a wrong answer. It'd be cool if you could save up the money and give it back to her after she graduates. That'd give her a head start. But if you need it to accomplish some goal you're hitting, there's nothing wrong with that. You've laid out the guidelines. Have you coached her and shown her some ways she can make $5,000?

Yes. She's on her way. She's doing pretty well right now with her savings. It sounded like you were saying that she's a little worried about making that much money. It's significant for her because she's saving decently, but once school starts, she can't keep working the way that she's been working could she work like 10 hours a week she mainly works on holidays and summers okay well she can make 5 000 in the summer i mean she's gonna bust it you know nannying dog

sitting waiting tables i don't know i mean you make five grand in the summer so get out get after it yeah but i mean I want to coach her. I don't want to just go, oh, I hope good luck with that. You know, she maybe never done this before. She doesn't know how to earn money. So give her some entrepreneurial ideas. And, you know, when I was 12, I asked my dad for money. He handed me a lawnmower.

You know, it's like, go knock on the neighbor's door. It's where money comes from. And so you can do stuff like that. You can walk with her. And I would recommend recommend that and here's going to be my guess this sounds like the first time you guys have done this i'm going to guess and say you put this money aside and you'll give it back to her but you're not obligated to do that morally ethically financially or anything it's just if you want to and uh and if you're able to but if you're on, five, and six, you're working a plan, I think you'll be able to. Yeah, I mean, if you're saying, hey, I can go to school debt-free and my skin in the game is five grand a year, that's an incredible, incredible deal for her.

And obviously, you don't need the money. And so maybe you go, hey, this money could help us pay down the house faster, which is going to set us up in an incredible way to be a baby step seven. But either way, if you hand it to her when she graduates as a gift and go, hey, this is some money. You can go upgrade your car. Maybe it's a down payment on a house one day. I think that's really cool. Yeah. Noble.

I have a feeling you're going to hit your financial goals and be able to do that. But it's not necessary. It's not mandatory. You're not a bad person if you don't. Yeah. You didn't do something wrong if you didn't do that. It's not even a moral obligation to pay for your child's education you're not a bad parent if you don't pay for it at all it's not you know it's not there's no law

there's no standard you're a bad parent if you don't have the conversation at all or don't talk to your kid honestly about where things are at that's where i go this needs to stop yeah you know just turning them loose in the wild and they don't know how they don't know what wolves look like called student loan people um yeah that that's dangerous i agree with that but i'm just saying that the like i've talked to a single mom and she's barely making ends meet just feeding the kids is a big deal and she's feeling all guilty because she's not gonna be able to pay for college i'm like you're not a bad mom. You fed them. They had a roof over their head.

You did a good job. I mean, you're a warrior lady. And Christina Ellis, our Ramsey personality here, she has an amazing story of her mom, single mom, going, hey, I can't pay a dime for college. Figure it out. And I want to help you, but you've got to figure this out. And she coached her and went with her to the library, and she got a half a million dollars in scholarships. It's amazing.

Yeah. You know, that's exactly right. Taylor's with us in Sacramento. Hey, Taylor, what's up? Hi, yeah. So I'm on Baby Step 3B and Baby Step 4 right now. I'm currently renting and planning on buying my first home, like within two or three years when kind of the market slows down here in California.

But I know you guys don't recommend to purchase a manufactured home, but is there any significant difference, especially for a first-time homebuyer, to buy a brand-new home that nobody's ever lived in to an older home or any other home type? Is there any kind of financial difference or something that I should consider when buying a house for the first time? Now, you're talking about a traditionally built new home versus a used home. Yes. Manufacturing homes not in this discussion. No, I know you don't recommend buying manufactured, but any other home type, even condos.

Typically, what you'll find is that the new home prices will be at the top of the market in a normal real estate market. We are not in a normal anything right now. Okay. But in a normal world, and like I got my real estate license in 1978. So since 1978 until 24 months ago, and I don't, I don't have any idea what's out there. You know, there's no way to know today what you will run into in this weird thing we're in right now, but in a normal world world new construction will be a higher per square foot price than a used housing in the same neighborhood across the street you

know that kind of a thing now you know location will change pricing on real estate always uh so you know you can't five miles away may be a big difference you may cross two lines there that people go you're on those other tracks now, you know, or whatever. So that's a different thing. But not counting location, if you're in the same general vicinity, very close vicinity, in a normal real estate market, you're going to find new housing to be at what we call retail, full retail price, and it'll be the leading edge more expensive. It doesn't mean it's not a good buy.

It doesn't mean it won't go up in value. It doesn't mean it's not a good idea because sometimes you're in a growth area of the Metroplex versus a bad area or an area that's kind of slowing down or something, that kind of stuff. So you've got a lot of factors going in, but if there are two houses on each side of the street, then yeah. Yeah, and Taylor, I got a new construction home, and it is almost 2X'd because we live

in one of the most expensive counties, the great school system, great neighborhood, and so it really does depend largely on the location. It wasn't 2X of a used house. No, it was brand new. As you say, it's gone up 2X. It's gone up 2X in a little over two years. So you're just fine, but I mean, at that time, you could have say, it's gone up 2X. It's gone up 2X in a little over two years. So you're just fine. But, I mean, at that time, you could have bought a used house slightly cheaper.

Yeah. But the same square footage. But you got a nice place, got it paid off, and it's gone up double. Yeah. I'll take it. This is The Ramsey Show. Folks, listen up. I know some of y'all are putting off getting life insurance because rates went up, restrictions were added due to COVID,

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Always use the magic word, the promo code Ramsey, to get the best deal. Today's question comes from Kyle in New York. He said, my wife and I make around $165,000 a year combined. I've been on my job for about four years and I've never gotten a raise or a promotion. The company has not given anyone a raise or promotion since I've been there that I'm aware of. It's a tech consulting company, but we work with very outdated technology. I've tried for over a year now to get a new job, but my skill set is not aligned with all the newer technologies required by the industry. If I don't get out now, I'll be stuck in this position forever. But I need about four to six months of studying and upskilling. At this moment, having a full-time job is making this impossible. I have about $40,000 in emergency funds, and I live in a very high cost of living area. Should I quit my job and focus on updating

my skills and my resume? I don't think there's just an either or option here that he's backed himself into. I personally would not quit. You may have a different opinion here, Dave, but I feel like both are possible, even if it's a part-time job in the tech consulting world. Okay, dude. You need to let your boss know that you're working 40 hours, not 80. And then you need to throw a brick through your TV. You have time to do the upskilling.

I mean, if you're working a 40-hour week, you can get your other skills. You can start doing code school at night. You can do code schools on the weekends. You can write a check and get your certs. But you don't ride this horse until it dies. It's dying. This horse, he's stumbling along. He's about to die.

You're in a tech field that is dying. If they're not upgrading, changing not moving you don't have the option of working there for the rest of your life because this company's going to fail because they're they're they're servicing only a technology that is going away apparently that's what it sounds like and so you don't have a choice you have to do this but you're you you've added a little drama to this uh so turn off your television give up vacations no whining go back to school at night on weekends get down to 40 hours and do that you can do this you can do this i'm calling bs on the i have to quit to go to school yeah i don't believe it i mean i we got tech guys around here they're always

upscaling and they're always doing all kinds of stuff sometimes they do it on the clock here sometimes they've done it while they worked at other places to get ready to come to work here because we use cutting bleeding edge stuff here but um oh man yeah i mean it may be some long evenings and long weekends if i don't get out, I'll be stuck in this position forever. No, you won't, because they're going to fail. You're not going to be stuck. You're going to be on the street. Having a full-time job makes this impossible.

Now, your language is just how problematic. Dramatic. Yeah, it's a lot of drama here. Impossible. Stuck forever. Now, none of these things are true. So you're going to be okay. But are true so you're gonna be okay but dude you are gonna have to sacrifice like all your free time so going out to eat with your little friends and stuff no you're not gonna do that for a while because you are you're getting re-skilled

and up-skilled and moving that's the people we meet on this debt-free stage they find time to get those side jobs and to find those side hustles and and it's worth it. And to get the class and get the certs, you know, whatever it is you've got to do. But it's there. You can do this. Albuquerque, New Mexico. Miles, what's up? Hey, Dave. It's a pleasure to share the fairways with you guys today.

You too. How can we help? About three weeks ago, my car got stolen out here. And I had comprehensive coverage on it. So they're offering about $1,000 less than it's worth. And then their evaluation was only $20 for aftermarket parts. The car had like roof rack, tinted windows, like nice rims and wheels, Bluetooth stereo, upgraded speakers. So I was wondering if you have any tips or guidance for trying to increase that settlement. You're going to have to provide actual facts, like receipts and appraisals.

Okay? So let's just start with the price of the car. The car is worth this. And you can look that up on kellybluebook.com and you can provide them cars from trader.com that are just like yours that sold for this and then here are the receipts or here's a price online price list to buy the rims that i had the roof rack that i had the stereo that i had but they're not going to go i don't think you're being fair that doesn't work you have to give them actual facts so what you're doing here is you're building a court case

you're building a case that says you are trying to sell trying to give me less than the policy calls for which is replacing this vehicle this vehicle because of the roof rack the rims and the current market value based on this piece of data this piece of data this piece of data this piece of data is worth x number of dollars and you need to give me that or more and they will okay that makes sense do you have photos of all the work that was done um i i uh bought it off facebook off the guy so i have a picture of the ad but i don't know specifically like what uh you know the model of the stereo was any of that oh so you don't have the receipts personally because you didn't do the work. Right.

Okay. That's fine. Just, yeah. But go ahead and start, you know, say this is the stereo that was in it, and here's what it sells for over at XYZ Stereo Company, okay? Here's the rims. This tire company sells the rims for this. And, you know, and here's the roof rack, and here's what it what it costs to buy that those are all upgrades and this is the base car here's four cars like it

and here's kelly blue book's numbers and they all say that you're a thousand bucks low who's the company uh progressives okay they'll pay you they're not bad you just but you do have to work in facts as if you're making the case. Like, pretend like you're going into a court of law, and you have to prove what the car is worth, not just you had a feeling. Yeah, that makes sense. I do the research based off the pictures, what I think the rims are, and stuff like that.

Yeah, so just do a little bit of backup work and then start flooding them with emails here's the thing too if you send them like like six emails or seven emails with all kinds of different information and then you send them one summary email that gives them a total uh the guy starts to realize you're not going away you're not going to be easy to work with as a matter of fact this guy might even get this miles guy he might get a lawyer and the the claims adjuster wants this off his desk and he's going oh this has put an effort into it uh so he's just gonna he's just gonna go boom be the squeaky wheel i've done this in two different situations where i had cars totaled or i had them uh uh stolen and uh in

both cases i went back to them showed them and it was one back and forth it was not a big negotiation in every case i got everything i was supposed to get uh the only time i didn't get the proper amount was i was dealing with state farm and they're notorious for not paying their claims so um horrible company but the uh but everybody else i mean farm bureau i remember i had a great transaction with them a guy guy hit me, and we showed them exactly what it was, and they went, oh, yeah, that's right. Okay. And, you know, they bumped it up, wrote a check instantly. They were just, you know, most of the time these guys see paying an auto claim as almost PR.

They spend all this money on progressive on advertising. They don't want you out there running them down. Yeah. And they really, honestly, we work with progressive on different things around here all the time and they they do a good job i contact the seller too and see if he can provide receipts yeah let's get his contact info it wouldn't hurt but if you just show them that you're making an effort on this that that kind of says to them uh i got to deal with this guy and they go i didn't worth it and he just marks it up and sends you a a check. And that's the way it'll come down.

This is the Ramsey Show. We'll be right back. Welcome back to the Ramsey Show. George Campbell, Ramsey personality, is my co-host. So a few years ago, when Twitter was actually not just a cesspool, Jimmy Kimmel would go on and read Jimmy Reads Mean Tweets, and we stole it from him and started doing tweets that are mean about us because they're fabulous. They're so fun. And a lot of them are like the high school students going through the curriculum

and stuff, and a lot of them are just – Being forced against their will to watch us. And a lot of them are just – people can just – they have digital courage of them are just you know people can just they you know they have digital courage these are things you would never say stuff like this to somebody's face because you get your face punched in but um but you know people people say anything on the internet and it's so cute so we wanted to bring it back um dave reads mean tweets and george looks at the comments so george you're you're you get trashed on YouTube. Yeah.

Yeah. Not as much on Twitter, but YouTube, they're big fans of leaving me some, some love. Okay. So you, you, you're going to read some of the things said about me, I guess. Yes. All right, man. I've been waiting a long time for this, Dave. Don't take it personal.

Okay. All right. I could take it out on you, but. Oh, you will soon. Cause you get to read my comments. Oh, there we go. Herman said, impulse buying an Xbox feels great when you ain't got a Dave Ramsey in your ear. Good stuff from Herman there.

Yeah. Herman's emotional... His emotional, what, 13 years old? He's got to be. Yeah. Okay. Money Mitch said, who named Dave Ramsey king of finance for every Christian church? Is king of finance like Burger King?

I like that. Is that like the Burger King? We should get you a little crown. Give me a little burger. Give me a little king of finance crown. I need a little crown. Oh, here's one. Username Boycott Delta.

That's interesting after our Delta rant earlier. He said, I've listened to a lot of Dave Ramsey. I'm convinced he quite literally doesn't know how credit cards work. He's become a victim of his own propaganda. That's deep. That is deep. But it's all on the premise that I don't understand how a credit card works, which is, that's kind of humorous.

Yeah, the two sentences don't make sense together. But that's Twitter for you. All right, Carly said, If my mama doesn't stop pushing dave ramsay on me i swear with a little crying face she's very upset yeah she's 19 i don't blame her if her mom back off i would quit using me as a weapon just why don't you push like common sense on her instead of dave ramsay that's better i think that i think she's probably right we're just getting warmed up here haymaker said dave rsey is a charlatan, hypocrite, and basic piece of beep.

You can guess what word that was. You know, think about it. That comes up. Charlatan shows up a lot after my name. It's a very fancy. That's a $10 word. I know. And here's the thing.

I was thinking about this. I read one of these the other day, and it popped into my head. How many times are you at a party, and you use the word charlatan? Zero for me. I mean, how many times do you have, in a sentence with normal human beings, you use the word charlatan? Well, if they're talking about you, maybe at parties. I don't know. That could be.

It could be. It could be. It's an anti-Dave party. But, I mean, it's just not something. It comes up only on the Internet. That's my point. Oh, yeah. It only comes up when you're not a real person having a real conversation. You you would use the word hypocrite or piece of bleep you would do that i personally

wouldn't you wouldn't but people would yeah but they don't say charlatan so-and-so's a charlatan they don't bring their well if if you're a keyboard warrior you want to look smart why oh yeah and the thing is it had to it had to spell check yeah because you couldn't spell it no okay they probably started with an s and got it wrong yeah all right brian moody said dave And the thing is, it had to spell check. Yeah. Because you couldn't spell it. No. Okay. They probably started with an S and got it wrong. Yeah. All right. Brian Moody said, Dave Ramsey is good for people to clean up a financial mess and get their house in order.

He started out nice. But wealthy people don't baby step. Hmm. Okay. So the 45 millionaires we've talked to on the air this year, we started tracking millionaires we talked to on the air. So since January 1 on this show, we've talked to 45 millionaires we've talked to on the air this year we start tracking millionaires we talked to on the air so since january 1 on this show we've talked to 45 millionaires i guess they would beg to differ he has a different definition of millionaires maybe or wealthy yeah wealthy people there we go kyle henkel said i think dave ramsey financial advice is cringy. Cringy. There's a lot of misspellings there, but.

You know what? It really is. It's fun. But you know what? It is cringy. It's so cringy, Dave. Dead free. No, it is.

It's cringy because it says, ooh, you have to sacrifice to win. That is cringy. That's so cringe. No, it is. I mean, that's kind of like, ugh. I kind of agree with him. Get with the times, Dave. People don't want to hear that.

All right, Addy said, proud owner of a new Tacoma. If Dave Ramsey found out, he'd probably 360 no-scope me. I had to look this one up, Dave. This is a Call of Duty reference in which a player spins around with the rifle and shoots with no scope, killing their target. Let me help you with this. He didn't really, because it's not a real rifle it's on a video game call of duty is a they're assuming that you are playing call of duty and well yeah so so i'm gonna i'm gonna fake kill him on a fake game is that that's how the metaverse works that's what happens if you buy a tacoma i fake kill you on a fake game you just

described the metaverse if you finally got it i finally got fake kill you on a fake game. You just described the metaverse, Dave. You finally got it. I finally got it. Okay. Jen said, in my head, I mixed up Dave Ramsey and Gordon Ramsey and really thought all this time that Gordon Ramsey was giving financial advice in addition to being a chef. Have you seen the clip of Gordon Ramsey? Somebody said, who's Dave Ramsey? He's like, bleep, bleep, bleep, bleep, bleep.

Dave Ramsey, bleep, bleep, bleep, bleep. Yes. It's hilarious. It's so funny. They're at the grocery store and Gordon Ramsey's helping them shop. And the guy accidentally says Dave Ramsey instead of Dave Ramsey, bleep, bleep, bleep, bleep. Yes. It's hilarious. They're at the grocery store, and Gordon Ramsey's helping them shop. And the guy accidentally says Dave Ramsey instead of Gordon Ramsey. And he goes, I'm not bleeping, Dave Ramsey. It was a great clip.

That's so funny. He's a great. All right, last one for you. Also, Cool Kid with a K and a K said, Dave Ramsey is a cokehead, and then parentheses, this is libel spelled wrong. Actually, he spelled it wrong. It's libel. That's how he spelled it, but it's libel.

Wow. Well, clear the air, Dave. Are you a Coke head, and is that Libel? I hadn't had a Coke in a long time. I quit drinking Coke. He did. I got a big head. I got a big head.

Does that count? I got a big basketball head. That counts. Does that count? I feel like if you were a Coke head, we'd have a very different shell on our hands. Well, yeah, because the caffeine in Coca-Cola will light you up. That's so true. All right, Dave, my turn.

I get a few here. So boomer. I don't have as many. All right. David says, George gives worthless advice, the absolute worst of all Ramsey personalities. Yikes. George. What's scary is I'm just giving the advice you would have given.

So what does that say about you? Oh, my goodness. Yes, it's they all kind of say the same thing, but with different tones. That's hurtful. Yeah. All right. Fair. Janelle, and she says this like once a week.

This is normal for Janelle. Janelle does. Janelle's like, she's like head of your anti-fan club. Hey, I'll take it. Any PR is good PR, they say. George has the charisma of a wet sock. Sorry, man. At least she apologized right after.

Yeah. That's nice of her. It's passive aggressive, but yeah. But is a wet sock, does that have more charisma? No disrespect. No disrespect. Right after they disrespect you, that's always like throwing that on the end. Because it negates it, yeah.

Wouldn't a dry sock have less charisma? I feel like if something's dry, it has even less. I don't know. Janelle. I don't know how sock have less charisma i feel like if something's dry it has even less i don't know janelle i don't know how you measure sock charisma no i don't know what the measure on soccer all right all right who is the nerd in glasses giving advice well we both have glasses on is he new or something oh boy no i've actually lost weight i look about you look great dave and i don't think you're a nerd i think you you're just intellectual. Does Deloney wear glasses? He doesn't wear glasses. No, just me and you holding down the fort.

Just you and me. Yeah, because Rachel had glasses before she got the eye thing done. Oh, yeah. It looked like Coke bottle bottoms. I mean, she looked like the kid. That's a guy in office space. You remember that he had the stapler? Oh, yeah.

That's what her glasses looked like. We both have terrible eyesight, me and Rachel. Here's the thing. People say, is he new or something? And i've been here nine years guys get a clue you knew whatever george came off as a little rat bag at first but he's grown on me thank you he's consistent and he's logical oh that's a comment i thought you were just telling me james said this james smith not james our producer james not Not James in the booth. Not James in the booth. Not James in the booth. James Smith said this, which is probably, I'm sure, his real name.

So it started off dark. What is a rat bag? I don't know. It just sounds good. A bag of rats? It's a bag of rats, I guess. Came off as a little rat. I guess a little condescending, know-it-all, little, you know, punchable face type guy.

Well, yeah, but I mean, he could have just said little rat. I don't know what a bag of rats is. I don't know. But at least he then went, he's grown on me. He's consistent. He's logical. So I'll take that. He's a logical, consistent little rat bag.

Trying to end it on a positive note for you. Thank you, James. This is just James actually letting us know how he feels about us, and he just changes the names out. James wrote all these. That's cruel, man. Kelly wrote some of them. I know she did. Here's my worry, Dave. People are now going to write in specifically

trying to get on the show. Hoping to get their mean tweet on the show. So we're never doing this again because we're thin-skinned and our feelings are hurt and I'm going to have to go home and cry because three of you don't like me on the Internet.

This is The Ramsey Show. We'll see you next time. George Campbell Ramsey personality is my co-host today today open phones at 888-825-5225 I don't know why anyone would want our advice after that last segment but we're going to give it to you anyway Lauren is with us in Oklahoma City hi Lauren welcome to the Ramsey show hi there how's it going better than I deserve what's? Just a quick question on what your ideas, opinions, input is on following a passion job versus financial security, stability, essentially chasing the money. I'm 42 years old, have a double income with my wife. We have two kids, very little debt, about $50,000 total debt, including vehicle and medical debts. I just started a couple months ago going back to school to become a teacher.

Why? This will introduce new debt. Why? Essentially to follow a passion. I started school, I graduated high school in 1998. Your passion essentially to follow a passion i started school uh i graduated high school and your passion is to be a teacher in the classroom or to teach yep or to teach to be a teacher in a classroom because i'm a teacher okay but i didn't take a pay cut right right essentially this hopefully would give me better stability and job,

not necessarily higher income, though it would be a bump based on where I teach and whatnot, but yeah. What do you make now? Roughly $35,000. And what would you make in the classroom? About $45,000 to $60,000. So you're going to make more? Again, depending on where I teach, yeah.

You're going to make more than you make now? Right. I thought you were saying you would have to go down in income to work your passion. No, no, no. It would be a bump in income. Oh, okay. Why would you not do it? Yeah.

It would introduce more debt. Oh, well, just go get your teaching certificate without going into debt. Pay cash for it. A little tough. No, it's not. It's called work. Lorne, the way you phrased up your debt initially, you said, oh, we just have a little bit of debt, just 50 grand. So it tells me you're broke. How is it a little debt if you can't afford to cash flow school because of it? Right. We essentially live paycheck to paycheck.

We have medical debt. What's your wife make? About $33,000. Okay. So you have a $68,000 household income, which is the average household income in America. How much is your car payment? $398 a month. Sell your car. And we have about $22,000 left on the loan.

Yeah, sell your car. Okay. You're not going to do that. I can tell by the way you answered that see here's the thing you've got it in your head that you get to do all of these things at once keep a car you can't afford go get a degree you can't afford what meanwhile making the excuse of we live paycheck to paycheck and that's an excuse it's not a fact right sell your stinking car get three extra jobs go to the community college and get your teaching certificate,

and pay cash for your teaching certificate, and live your dream with no additional debt. By the way, when you sell your car, cut your debt in half. Right. That would. Something for you to think about, dude. I don't know if you're going to do it or not, because I think you got this all figured out in your head that you want to go be normal the way you're describing is normal but i'll help you with this normal sucks you're getting ready to keep a twenty two thousand dollar car you can't afford and go get a degree and put another twenty five or thirty thousand dollars on top of this

and get a ten thousand dollar bump and you're going to then you're going to whine the teachers don't make enough what i'm hearing is we're already 50 grand in debt what's another 20 30 40 to get this well it's just this mindset that this is normal and it's it's the only way to do it well it's not the only way to do it i'll guarantee you you can work overtime you can work extra jobs and you can go to the cheapest possible local university community college whatever it is you got to do to finish up your work to get your teaching certificate and i want you to go be a teacher i just don't want you to be dumb about it because i it's just going to cost you it's going to cost you a decade of your life doing this wrong and it really has to do with this stupid car and it has to do with you not being willing to

sacrifice and dial this down instead you're just kind of going the easy way and the easy way is always not the easy way it's always the hard way and the easy way is always not the easy way it's always the hard way and the truth is even with this bump in income you're going to be broke again you're not going to fix the problem there you go because you've gone up in debt enough that it sucks up every bit of that new income and so all the joy from this is going to be gone audrey's with us in albuquerque new mexico hey aud, Audrey, how are you? Hey, I'm doing well. Good afternoon. Good afternoon. How can we help? All right. Yeah. So my husband is 16 years military and five years ago, we decided to live minimally so we can stop living paycheck to paycheck and be able to

save up enough to cash flow everything. Wow. After it was a big goal. After returning from an overseas tour last year, we did what we never dreamed we can do. We paid cash for a second vehicle, and we paid cash for our home. Whoa, way to go. Well, thank you for your service, both of you, and I'm so proud of you. Well done. Thank you for your support. We seriously never thought we'd ever be in a place like this. So my question is, we move every two to three years in the military,

and is it okay if we can continue to purchase cash for a home? I mean, obviously, if they send us to California, that probably won't happen, but we want to continue to pay cash for a home at every assignment, or should we rent and just focusing on investing, which we've only started doing last year? Probably some of both, depending on where you're stationed. Okay. Okay. So let me kind of lay this out for you. Yes, if you can pay cash and you want to buy, that's fine. We generally recommend to our brothers and sisters in the military that they not purchase. And here's why.

Usually during a two-year or three-year stay, the house does not go up enough in value to cover the cost of selling it. And you end up losing money from the purchase to the resale. Great. And if you're doing that with cash, that's going to hurt. Ouchie. Okay? Okay.

Now, there's a couple things you can do to get ready to determine this when you once you know where you're going to be stationed next time once you know where the move is all right you a you're going to put yours on the market and sell it for sure no question about that don't leave it okay so you got that money in your hand and then you start shopping in the other area here's the two numbers that will tell you um if you if you buy or not okay now the military markets you've been in 16 years so you already know this but let me just review with you okay some of these uh bases are in areas where the entire economy is the military it's a small town yes and so the real estate economy is driven by people like you,

coming and going, coming and going, coming and going. Consequently, sometimes the houses don't escalate as much because there's always a supply, always an inventory of them for sale. Yes. And so a lot of times in a small town, generally military economy, you're not going to do as well. But anyway, here's the numbers you look for ask the real estate agent to to run a study off the mls statistics for you

that tells you two things within a five mile radius of the house you're looking at buying what is the average appreciation for the past five years per year how much is it going up per year okay if you're going to be there three years and it goes up two percent a year average you're going to lose money when you resell because real estate commissions are six and closing costs you're going to you know it's going to be a 10 out of pocket to resell and so if you don't make more than 10 increase in value during the time you're there then you're going to lose money. You follow me? Yes.

So, you know, how much is the average appreciation, and am I going to be here long enough to where I make money on this rather than lose money? That's thing one. The second statistic is DOM, average days on the market. What is it? Houses within a five-mile radius, how quickly do they sell when they go on the market what is it houses within a five mile radius how quickly do they sell when they go on the market in some of these slow markets like i was talking to about a while ago now right now it's weird out there you can sell anything in a lot of places but if the market out there is um yeah there we go if the market out there it is slow and it says 270 days on the

market is the average time to sell a house, that's nine months. You don't buy there because that means you're going to get stuck in the thing. But if the average days on the market is 27 days, that's a hot market. Oh, by the way, where you find a low days on the market, quick sale, you're usually going to see higher appreciation rates. It's a hot market by definition. So that tells you if you can and should buy in there. That's the plan. This is The Ramsey Show.

Hey, folks, Ken Coleman here. Did you know The Ramsey Show is one of the most popular podcasts in the world? Get your daily dose of advice on life and money. Check out all of our shows from the Ramsey Network wherever you listen to podcasts.