The Ramsey Show - App - Solid Advice on Getting a Degree without Student Loans (Hour 1)

Episode Date: April 18, 2019

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and a paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thank you for joining us, America.

We're glad you're here. Open phones at 888-825-5225. 888-825-5225. You know, we teach you that if you will pay a price to win, you will win. The way we always say it around here is if you'll live like no one else, later you can live and give like no one else. Sometimes it's a misnomer that I'm more associated with getting people out of debt than why I get them out of debt. I want you to get out of debt so that, and you fill in the blank, because you're going to become wealthy, so that you become wealthy,

so that you change your family tree, so that you become wealthy, so that you change your family tree, so that you get yourself in a position that your generosity is outrageous, so that you don't spend your whole life like a rat in a wheel, run, run, run, run, run, run, run, get nowhere, have a heart attack, and die. That's ridiculous. Work and pay the man your whole life. That's silly. And that's why we do what we do here

yeah a lot of the questions and a lot of the barriers the biggest blocker to people being generous is they don't have any money the biggest blocker to people building wealth is they don't have any money the biggest blocker to uh changing your family tree or having some sense of peace around the money issue is that they don't have any money. And so then I, of course, get accused of being greedy and money-oriented and all that. No, all of this is so that. It's all so that. If you will live like no one else, later you can live and give like no one else.

So we're going to do something. I'm announcing it today that's very unusual. In Kansas City, there's a pastor friend of mine there that has gathered 100 churches at one time to do a citywide financial peace university, the entire city of Kansas City, at one time in the fall. They're going to do every church, not every church, but they've already gathered up 100 of them. I went up and spoke to the 100 pastors the other day, and they're setting up now to do

a fall launch called Margin is what they've named their launch, and they're going to do a citywide Financial Peace University launch across all the churches. I think it's very cool. It wasn't even my idea. It was Randy's idea. Randy Frazier is a friend of mine. He's a pastor of a big church there. And absolutely incredible.

And he's an incredible leader. He's at Westside Family Church and just doing a great job. So we're going to do something a little bit, kind of a pre-launch thing. I'm going to do a so that. We're going to go to Westside in Kansas City city um in just a few weeks may the 19th on a sunday evening and i'm going to come and teach outrageous generosity and chris hogan's going to come with me we're going to do q a beforehand and then i'm because that's your so that listen when i say live like no one else

i don't mean you get to drive a fancy car although i think you probably should but that's not what i mean that's not living it's good it's fun i got a couple nice cars get you some but you know but that's not if if that's the sum of your life, you just built bigger barns. That's just dumb. If you eat enough lobster, it tastes like soap. When I say live like no one else and give like no one else, what I really mean is give like no one else. Put yourself in a position that when you come across a legitimate need where money actually helps, where you're not giving a drunk a drink,

you're not enabling, but where there's a legitimate need and money actually helps, you have some money, and you can lay it on the table baby when you start living your life with an open hand and outrageous generosity because you got your freaking act together it changes everything y'all so i'm gonna teach on that coming up may 19th in kansas city here's the deal there's only like 900 tickets available. That's all. And so we're going to let that home church have a bunch of them. And so there's only 900 available for you guys. And they're only $10.

So shut up. And we're going to give the entire $10 to this movement, this margin movement, the citywide movement, so that if a single mom or somebody that's too broke to come to Financial Peace, this money will go to help them give scholarships and get people in the class, because we think the whole city ought to have access to it. And so this money will go to that, and we're just doing it just because I just think it's fun. I'm going to be outrageously generous teaching outrageous generosity.

How's that? I'm going to live it right in front of you. So our is really really excited about this it is one night only it's really one time only may 19th west side family church kansas city tickets are ten dollars at davramsey.com on our live events page or you can go to we're not making a thing on this a hundred percent of this is donated i'm losing money on this. I'm paying all the costs. And so it's a fun thing we want to do. Because I just am really on fire that if we could get enough of you people out of debt and giving like I know you want to give,

you and I, we the people, could give so much money to legitimate things we could make the government irrelevant. And people would quit looking to Washington, D.C. to solve their problems. See, that's how generosity could reshape an entire culture. But you've got to get yourself in a position to do that. And that's the get out of debt part and get on a budget part and build wealth part, right? But we're going to talk about outrageous generosity, what it looks like, how to do it, what's the proper steps, every little detail of it. Kansas City, come. We'd love to have you be part of this.

It's one of my favorite topics to teach on, and I just don't get to teach it enough. It's always a part of everything we're doing, but this is one where it is what we're doing. So fun stuff, you guys. DaveRamsey.com or 888-22-PIECE, 888-227-3223, and talk to the Ramsey concierge. Starting off this hour is going to be Sean in Pittsburgh. Hey, Sean, welcome to the Dave Ramsey Show. Hi, thank you for having me. How are you?

Better than I deserve. What's up? So I'm an 18 year old, uh, independent who is trying to finance college, uh, after, uh, taking into account federal loans and grants and all that, I still owe about 10, uh, to be exact 9,500 out of pocket. Uh, I have a little bit of money saved up, but I don't know, uh, you know, really how to go about that since I'm again, an independent and do not qualify for private loans. Okay.

Um, you're $10,000 short. Correct. And you've already borrowed money. Uh, that was through, uh, you know, what the university offered through, uh, the federal federal loans throughout FAFSA. Yeah. Yeah. And so what university?

This is Pennsylvania State University. Study aerospace engineering. Penn State. Okay. And so they didn't offer much because their tuition is not that big. Sean, what's the tuition? The tuition is actually one of the highest in the country, I believe. Oh.

I think we just found the problem. Yeah, $18,000 for in-state. Okay. Why don't we look for a different school? Yeah. Yeah? I'll tell you what. Hold on.

I want to help you with this. You're on your own. I won't leave you hanging going into a commercial break here. But these commercial breaks are set. I don't have a choice. So hang on. When I come back from the break, we'll talk about this one more. This is the Dave budget each month.

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We're so confident you'll love Pure Talk USA that we invite you to try our service risk-free. Visit puretalkusa.com or call 844-862-3677. Enter promo code SAVEDAVE and receive 50% off your first month. That's puretalkusa.com. We'll be right back. even after help he got from here and there, even after some loans for an aerospace degree. Is that a fair summary of what you've told me so far, sir? Yes, sir. Okay, cool. So explain to me, I'm curious what you mean by independent.

How are you on your own at 18? What's the circumstance? So recently in 2012, well, not so recently, my father passed, and then within the past two years, my mother passed. Oh, my goodness. Fortunately enough, I was able to get welcomed in the home of a teammate I played with, and they obtained legal guardianship of me, but they are not in a position to where they can help fund my college.

Gotcha. I understand. Okay. Wow. All right. And so you're 18, and you graduate from high school this year or last year? This year. This coming May? Yes, sir. Okay. And you were expecting to head into college in the fall? Actually, the summer. I was enrolled in summer sessions. Oh, I see. Okay. All right.

And have you actually obtained the loans or just signed the documents? So the only loans that have been guaranteed have been the federal loans provided, called university loans through FAFSA. So due to my situation, not many in my life are in a position where they can co-sign for me. So really I have a fair amount saved up due to my situation through Social Security and whatnot. So my real question is... Let's stop. I'm going to go back. Just walk with me here a minute. I'm going to walk with you. All right.

So FAFSA is not a loan. FAFSA is an application that sets you up for grants and other things and sees if you're available for Pell Grants. Are you not available for a Pell Grant? No, I have the summary written up, about $6,000 for a Pell Grant, about $3,000 for a PA state, and so on. Okay, and then the actual loans that you have to pay back are how much at this stage?

For a subsidized loan, they guarantee $3,500. For an unsubsidized loan, they guarantee $6,000, so approximately $9,500. You have not actually received that money, but you've signed the paperwork? Correct. Okay. All right. Trying to see what stage we're in. But you're signing up for a tuition that's $18,000 a year,

and as you said, one of the more expensive tuitions out there. Okay. So aerospace is what your goal is, correct? Correct. And why? I'm not saying it shouldn't be. I'm just curious. It's just what I've had a passion throughout my young years.

And going through high school, I've taken a lot of classes that have really refined my knowledge in that, and that's what I want to do. What do you want to do in aerospace? Tell me what you're talking about as a career. More on the manufacturing side of it. I've been enrolled in, utilizing CNC technology. And so I think, you know, going into manufacturing in regards to aerospace would really be, you know, a good position for me. Yeah.

All right. Okay. The way I answer questions, Sean, on this show, when I went to college, I was in a similar situation. My parents were alive, but it was up to me to get through school. And so I worked and scratched and clawed ridiculous stuff to get through school. And so I know how it feels to be right where you are and what you're doing and what you're studying and so forth. So the way I answer questions is if I was 18 and the 58-year-old version, which I am, of me could look back, what would he tell me or what would I tell you if I woke up in your shoes but I know what I know today?

Okay? Okay. Now, number one, I think you ought to study aerospace. I agree with that. And I think you've got a passion for it. You probably have a knack for it. You're obviously intelligent. You're articulate.

You're on a big-time radio show. You're carrying the conversation. You're not freaked out and in the corner sucking your thumb. You've got some poise. You've got a lot of positive attributes that are going to carry you through, especially with all the things you've been through with the loss of your parents. I'm so sorry for that. You're a young stud. I'm proud of you. Having said that, I want you to go about it in a

way that when you're 30, you're not so far in debt you can't breathe. And you haven't said, no matter what the price, no matter how dumb the way I do it is, I'm going to do this at Penn State this way. And I think that's a mistake. So what I would do if I woke up in your shoes is I would go full stop and I'd pull the plug on Penn State. You can't afford it. It's at your doorstep. You're not ready. You don't have the money.

And there's not any way we can get you the money with work, which is your only other source, by the time you need it. Correct. Now, I'm not saying pull the plug on it permanently, but I'm going to do at least one year at a community college taking basic classes that all transfer, that are the equivalent of my freshman year at Penn State. Because you ain't taking no aerospace in your freshman year, dude.

It's all, you know, butt-boring classes freshman year. So it's core stuff, and probably your sophomore year. But if you went somewhere that wasn't $18,000 for the coming 12, and it didn't impede your progress towards your goal because it all transfers, but it didn't cost you $18,000. It cost you $2,000. Oh, now we've got a different world we're living in. And during that 12 months, you work your butt off, mowing grass, Ubering, delivering pizzas. You work all the time, and you pile up the money to enter Penn State either in your sophomore year or your junior year, depending on how the money piles up

and depending on how well those community classes, community college classes match up with your, you know, I want them to fully transfer. I don't want any wasted motion, any inefficiency with the classes you take. I don't want to take six classes that don't turn over. They all need to apply to where you want to go but i think by the time you get to either your sophomore or junior year you can start piling up enough cash with zero loans to work your way through this thing with a pell grant and and work your butt off and i you know that's six thousand

of the eighteen thousand you need twelve thousand dollars that's $6,000 of the $18,000. You need $12,000. That's $1,000 a month. Plus, you need a place to live. Where are you going to live? Freshman year, I plan to live in a dormitory. Okay. All right. So the generosity of the family, you need to move on. You're not able to stay with that family another year.

I believe so. I do have family and relatives close by that have offered their services. Good. Okay. Camp in their garage, dude. And mow their grass for rent. Okay? And let's save that dorm money, because that dorm money gets you aerospace degree from Penn State.

A dorm don't buy you nothing. It's like living in a jail cell. It's concrete walls and a bad bed. There ain't nothing sexy about it. So, one thing that I do not feel like I said was, I do have a fair amount of money saved up throughout my situation. How much? Roughly $40,000. Okay.

Well, I mean, you use that to supplement, but I wouldn't use these loans. I would drop the loans. Okay. be a feasible plan to supplement that 9,500 with the savings and work throughout college and possibly apply for loans later? No, I'm not going to apply for loans. I'm not putting you in debt. I want you to figure out a way to cash flow this by not living in the dorm, by thinking about it differently.

If you want to use the $40,000 and go ahead and start, I'm with you. Let's do that. Zero loans. But here's If you want to use the $40,000 and go ahead and start, I'm with you. Let's do that. Zero loans. But here's what you want to do. You want to do a projection out through the end of the four years and say, this is how much money I need above $40,000 and above Pell. And that much money you have to be able to earn. And I think you can do it.

I think you can do it. But don't go into debt and do this with a plan. Don't let this stuff happen to you. You happen to it. You call me back if I can help you. I'm impressed with you. I'll help you any way I can. In the lobby of Ramsey Solutions, one of our own team members doing a debt-free scream.

John and Callie from Nashville are joining us. Callie is on our team, has been for about a year as a project manager over in Entrez Leadership. Or an ELP, I'm sorry. So welcome, guys. Thank you. Thank you. Good to have you. So how much have you paid off?

$54,550 in 15 and a half months. Love it. Very cool. All right. Well, since team members are standing around, I'm not going to ask your household income. Thank you. That'd be just a little weird. But what kind of debt was the $55,000?

So about $20,000 of it was a car loan loan and the rest of it was student loan debt okay how long have you two been married just over a year and a half yes okay so you came to work here right after you got married then yeah when we moved here we had been married like almost six months so it was an adventure yeah okay so basically you got married as far as the debt snowball goes though and started attacking the debt immediately. Yes, exactly. So tell me that part of the story. How did you know to do that? Because you weren't here then.

What lit the fuse on this? So when I was in college, John and I were dating at the time. And I just remember being really freaked out that I was about to graduate with a lot of debt. And I just had really no idea how to deal with that. And came across the podcast and just started listening to it. And I remember one day, like, John came in my dorm, and you're like, what are you doing? She was listening to your show, and, you know, it was a podcast,

so I was, like, just listening but not intentionally listening. And so I remember right after that she pulled up her student loans online and put, like, $800 towards her student loans online and put like $800 towards her student loans and I was like that's odd but it didn't make sense at the time yeah so I just really like I knew that that was something that I was worried about and so I started kind of paying them off on my own a little bit and then about after we graduated college we got engaged and I kind of made a stupid mistake and ended up getting a car loan. So I went back into debt even more. So we had a ton of debt then together. But we just both

started listening really intentionally. Like I was listening every single day on my commute to work and it like just really started becoming my hope to keep going. And, um, so we started FPU as an engaged couple and then graduated FPU as a married couple. So we just took it right during that time period there. And, um, yeah, so we literally went on our honeymoon, came back, went to a smart money event in Des Moines where Chris Ogan was there and George was there. And inside of the pamphlet there, it said like, we're hiring. And I like turned to John. I'm like, how cool would it be to work for Dave Ramsey? At that point, we had been married two weeks and we're like, okay, we're not moving across the country. Like that's insane. Um, but God just kept putting it on my heart and kept putting it in my heart and

the position was still open. So I applied in January and we moved here in march of 2018 and here we are we just really cranked it and then when we got here i'll let you tell that story a little bit of all your extra jobs and yeah so uh what do you what do you do for your day job john i'm an internal sales specialist for a principal financial group specifically in employee benefits oh very cool okay and so what were the side hustles? What did you do? So I went to Vanderbilt, just randomly dropped off an application, and the guy that took my application was from Iowa. So he's like, oh, come here.

You know, we would love to have another Iowan here. So I was working there on the weekends. Golf course. Yeah, the golf course. Yep. So I was working there about 15 to 20 hours a weekend. And then during the week, week, we had our budget, so we were following that. And we would literally just drive around and try and figure out the lay of the land for fun.

So we saw all these people golfing and having fun, so we were like, screw this. I was like, I have too much time on my hands to not do anything about it. The gazelle intensity really kicked in for me that drive to actually do more um so then i got a side gig delivering pizzas as you say and um actually turned out to be really really um one of the best um side hustles there is you know it's super easy i got paid well and um so what'd you make delivering pizzas how much and how many nights a week were you doing it i was working wednesday through friday nights four to nine and then four to ten on friday and then i'd pick up tuesdays every time i could so it was like five days a week yep it'd be 20 25 hours um during the week as well um i got paid eight dollars flat plus um any tips that i made as well

so yeah but i mean what would you make in a week on five days total? Which is tips and money. I calculated I was making about $16 or $17 an hour with tips and base wage. Okay. Very good. And that was with gas taken out as well because we didn't get full reimbursement. So you're making $1,500 a month? Yeah.

Yeah. Very good. Good for you guys. Wow, you were on fire. Yeah. It was a season for sure. Yeah. Yeah. Very good. Good for you guys. Wow, you were on fire. Yeah. It was a season for sure. Man, I'm telling you. It was tough, but it was definitely worth it.

If I told myself I'm going to work 75, 80 hours a week, I would have said no way. But once I got into it and started doing it, it's like, okay. Well, you see the progress. The traction keeps you moving. Yeah. You're plowing right through this. Yeah. And it sounds like most of it's Callie's student loan and car.

No. Hey. Oh, it's his student loan. Yeah. Okay. My car. Her car, your student loan. Yes.

Oh, okay. Yeah. All right. Because she'd already been beating on her student loan back in the dorm room. Yes. Okay. All right. All right.

Well, very good, you guys. Congratulations. Thank you. Now, you've been through Financial Peace University. You've worked here for a year. You've paid off $55,000 in 15 and a half months, cars and student loans. What do you tell people the secret to getting out of debt is? Yeah, so from, I mean, both of us now, but it was like absolutely the budget

because without that, you can't see how long it's going to take you. Like, we knew exactly how much extra money we could throw at that debt. And so I had like a graph on our refrigerator and I just loved coloring it in. It was like my favorite thing ever. So for me, it was just that focused intensity over time. Like I knew that if we stayed eyes on the goal, like eventually we would get there. In the moment, it felt like forever. Like, oh, you have to work again?

Okay. Just hang out here by myself. Yeah, for me, it's not really secret. I was listening to your podcast just the other day, and you asked somebody else that. And to me, you tell us up front, and the Bible tells us up front and really exposes us to how to do it. It's just following that budget. And for me, it was your line that you say, adults devise a plan and stick to it. And, you know, anytime that I wanted to go out to eat or I wanted to buy something, I was like, it's not part of the plan. And so that really, in my head, motivated me to stay on track. How's it feel now that you're free?

Amazing. It feels really hopeful. Like that, that okay we're still young and we're gonna have plenty of time to save up an emergency fund and then a house and then hopefully be every everyday millionaires it's and i bet any pizza delivery guy that comes to your house gets a good tip for the rest of your life we just had a just last night spot that i delivered pizza for jets pizza we they delivered to our house last night. Touchdown. Way to celebrate. I love it. And a nice tip.

Yeah. It was. Well, you can't not do that after doing it. I know. It was perfect. Well done, you guys. Very, very proud of you. Thank you.

Excellent job. Who were your biggest cheerleaders? I would say John's parents, for sure. They're here today with us. Yay. And my mom. And we had a couple friends who kept checking in with us, just seeing how we were doing. Of course, the entire team here, they were always understanding when I couldn't go out for lunch or happy hour or something.

They're more than just cheerleaders. They're accountability partners. Oh, yes, absolutely. Right. And I remember someone saying, like, we thought that we would be paying off this debt in April. And we paid it off in January. And I remember someone saying that to me when I first started. Like, oh, you'll totally beat your goal.

And I'm like, are you sure? Because it's kind of a hard goal. But you just, once you're in that grind, it goes a lot faster than you think. Yeah. It's rip the band-aid off. Whatever it takes. Let's get this done. Yeah.

You see that progress. And then it's not worth it to not suffer or sacrifice even just like you said that shovel so how old are you to 25 26 yep yeah okay and so i've been married a year you you have no idea what doing this together in your first year of marriage what that has sealed in your brains and in your spirit and in your relationship. You can do anything now because you've already killed one big monster. Right. And so now you know how to kill monsters together. Yeah.

And so when the next one comes towards you, you'll see it and you'll be able to do it because of this experience. I'm so proud of y'all. Thanks, Dave. Well done. Congratulations. All right. It's Callie and John from Nashville.

Fifty five thousand paid off in 15 and a half months. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! We're debt-free! And the team drops balloons from the balcony. I love it.

Very, very well done. This is The Dave Ramsey Show. So a 25-year-old gives up his evenings delivering pizza five nights a week in order to pay off $55,000 in debt. I think he's a millennial, isn't he? Yeah. You know why he did it? Because Dave Ramsey's a big old meanie. Because Dave Ramsey's a jerk. Because Dave Ramsey doesn't understand.

Nope. It didn't have anything to do with me. You know why he did it? Because he grew up. I told him indirectly over the air here, which I tell you over the air here all the time, adults devise a plan and follow it. Children do what feels good. Now, there are children that are 58 years old, and there are grown-ups that are 25 years old. Adults devise a plan and follow it. They live

with a sense of intentionality. They do things on purpose instead of by impulse. They have the ability to delay pleasure for a greater good, and that's called being a grown-up. And saying things like that over the airwaves today makes me a big old meanie. Dave Ramsey's nasty, and I don't believe in Dave Ramsey's advice. Oh, geez. Oh, by the way, at the commercial break, I was out, and I met two everyday millionaires during the break. Both of them said they became millionaires listening

to what we teach. So my investment advice must be horrible. I mean, the stuff I teach, the mistakes I make. I mean, thank God there's all of you financial bloggers out there that have 800 people reading your blog that are there to help people get through the mistakes

that Dave Ramsey makes. Thank God you're there to save the world. Unbelievable. Unbelievable. So, yeah, I mean, that's how it works, guys. So the interesting thing about what we teach and the way we teach it with a little sass, admittedly, a lot of sarcasm, is that some personality styles and political persuasions can't stomach it. And so instead of saying something as simple as I disagree,

then I have to personally be vilified by them and that's part of the routine that happens around here regularly and uh it's more than a little bit disgusting but not because i'm a human being too it hurts my feelings like it would hurt your feelings but uh we're going to keep doing what we do which is show that 25 year old how to be a millionaire and if he follows the stuff we're teaching he'll be able to be a millionaire and he'll be able to be outrageously generous and 100 of time you can count on someone not understanding that and 100 of time i definitely be okay with that robert is with us in augusta hi robert how are you good how are you doing better than i deserve how can i help um so we're currently on baby step two

we started in january down from twenty six thousand dollars down to $10,500. But we just found out we're expecting a baby. Woo-hoo! Yeah, thank you. Sometime around December, and I didn't know, I've heard you say sometimes that we should pause the baby steps and kind of pile up cash just waiting for... Yep, definitely. Okay.

Definitely. Now, my alternative question, or my kind of spin on it, is I'm in the active duty military, so I get free health care. Okay. Definitely. Now, my alternative question, or my kind of spin on it, is I'm in the active duty military, so I get free health care. Good. So every dime that could possibly happen, except for prescription drugs, is 100% covered. So I don't know, do I need to stockpile cash, or should I just continue? I can finish paying off the truck by uh probably august september area well here's the thing if you have a pile of cash equal to what you would have reduced debt during the time in your account and the day mommy and baby come home from the hospital and everybody's okay and your uh plan of needing zero money comes true which i think it

will um you'll write a check that day and be debt-free. Okay. Because you've got enough money in the bank. If you could have paid it off by Christmas, then you would have enough money in the bank by Christmas to pay it off, right? Absolutely, yes. Okay. So the only difference is a little bit of interest that you would have paid on that loan between now and Christmas.

But by this time next year, you're going to be in the exact same financial condition as if you had followed straight through. I think you're probably OK. But a first baby is scary, exciting, wonderful. And there's all this weird unknown thing like they don't come with a manual. You know, they don't give you a little book on how to do this or anything. Military might. But I mean, nobody else does and so um you know i mean it's just and and having a big old hairy pile of cash just makes you relax okay um and then i

had a follow-up question so currently i'm driving an hour each way to work and we'd like to move but we currently own our home um would it be acceptable to do like a 3B and kind of save up for a down payment on a larger house closer to work? Is your house not going to have equity in it? I'm sorry, what? If you sold your home, would you get money out of it, or is there no equity? About $20,000 probably after seller fees and whatnot. Okay.

If you want to take that $20,000 and move to a similar payment closer, that has a zero-sum effect on the game. But if you want to put more money down, no, not until you get to that point. So two options. One is do a zero-sum game where it's a completely lateral move, or move and rent until you finish your baby steps. Could we do a 3B is my question. No, you have debt.

And your wife's pregnant. You don't move while your wife's pregnant. That's against federal law. After that, sir. I'm talking 2020. Okay, after that, you're in 3B. Okay, so I didn't, my clarification. You'll be debt free by Christmas, right?

Yes, sir. Baby comes, you write a check, you're debt free. You finish your emergency fund, you start saving for money to have in addition to the $20,000 equity from your home to make a purchase. Yes, I would do that. But you're going to commute until then. You're going to commute until then.

Absolutely. Okay. Or you're going to move like right now You're going to commute until then. Absolutely. Okay. Or you're going to move, like, right now while we're in trimester one. Because you don't, you know, don't move in the third trimester. That's just old man to young man advice right there. That's just dumb. You're going to get yourself in a marital pinch you'll never get out of. I remember that time back when you made me move.

And I was so pregnant with little George. Yeah, you'll hear that the I was so pregnant with little George. Yeah, you'll hear that the rest of your dadgum life. Don't do that. Don't do that. Miles, thank you for your service, by the way. Miles is with us in Chicago. Hey, Miles, how are you?

I'm doing well, Dave. How are you doing? Better than I deserve. What's up? I just had a question. So I'm not really sure what I should be doing next financially financially Should I be saving up for a down payment on a house And if so how much should I be saving up And if not should I straight up try to outright buy one

And you said you're debt free Practically I owe about $1,600 to my parents But there's no rush on the payment But of course I'm going to try to get that done sooner than later. That's the first thing. The second thing is build your emergency fund of three to six months of expenses, your rainy day fund, and above that start saving for your down payment. Okay.

How old are you? I'm 19 years old. Wow. Okay. And the first job, how much do you make? I make about $34,000 a year. Okay. And the first job, how much do you make? I make about $34,000 a year. Okay. Well, you're going to save up

you need to save up as much as you can possibly save up for a down payment. There is no rush, so you could take some time. I probably would suggest you take a few years and just save because you're young enough. There's no harm in buying a house. There's no rule that says you can't buy one when you're 19,

but there's no rule that says you have to. You don't want to be a renter your whole life. That's not a plan. But if you're a renter for two or three, four years, while your career grows and your income goes up and you save more and more and more and more, the more you put down, obviously, that's great. And, you know, if you've listened to me for 10 seconds,

you know I love the 100% down plan. And I meet people who are able to do that. I mean, let's say you saved up by the time you were 24 and you had, oh, I don't know. Let's say you saved $100,000 or 60, let's say $60,000. I don't know how your income would go up, but say you saved $60,000. Let's say you got married and your income was up to 50 $50,000, and she was making $50,000, and you guys banked $50,000 for two more years. You could pay cash for a house at like 26 years old.

You could get yourself in that position. So nothing wrong with that as a game plan. I love it, as a matter of fact. So, hey, thanks for being a listener. This is the Dave Ramsey Show. Hey guys, this is Blake Thompson, Senior Executive Producer of the Dave Ramsey Show. Did you know over 15 million people listen to The Dave Ramsey Show every week? And a lot of those people listen to one of over 600 radio stations across the country.

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