House Payment Is Over 50% Of My Take Home Pay!

next is Kathy in San Francisco hi Kathy how are you hi Dave I'm doing well and thanks for taking my call sure what's up well about 26 months ago I put the brakes on and started to look at my life in the debt that I was in and I realized that I had to get moving to get rid of it and so I read the Total Money Makeover I picked up another job tutoring I'm a schoolteacher I've taught for about 20 years and I really got focused and I wanted to be a good role model for my children and I paid off forty-eight thousand four hundred eighty three dollars and 73 cents which was a brand-new car credit cards and monies for the kids for school Wow so I got that done but now my question is I live out here in California and I have a house payment that's about that's two thousand two dollars per month and I take home regularly about forty three hundred a month how did you pay off forty eight thousand dollars in debt extra money above that at that time i tutored just around the clock I just worked numerous hours okay to do that well you're gonna be tutoring if you keep this house right no and I just you know what Dave I'm sixty and I don't want to keep doing that maybe not around the clock but there's just I mean I understand California real estate San Francisco real estate in particular is unbelievably expensive right and that there's a reality of that and people often ask me the question if they're in Manhattan or LA or San Fran you know well Dave I mean do I get a pass no I mean California is not exempt from math even though it feels like it out there with the dadgum house prices but still at the end the day after you pay your house payments you're poorer every month every month you're happy more yeah and how poor is no fun it's not fun and I so my plan my goal for myself is hopefully to work five more years and so I wonder do I sell it and rent for five years do I sell it and try to buy something smaller where are you going to live after retirement right you know what I'll probably end up out here even though I don't really want to be in California I'm a little confused now why would you say if you don't want to be there my kids are here oh okay okay and grandkids more importantly they would probably yeah yeah if they believe well but you can't retire in this with this house payment right no I could not retire with this house payment so I got to go either way the house has to go right yeah with this income either the incomes got to go up or the out guy who's got to go down and that's what that's a fixed math equation that we're just all stuck with and so right yeah so I guess I'm moving down in house that I'm gonna live in in retirement okay I know you think look and maybe purchase a smaller house if I okay now something less expensive and that you can afford and that doesn't make you house poor and with the idea that we're gonna be able to afford it in retirement and be eventually get it paid off even in retirement right we got to move in that general direction but yes if you want to stay in the area let's go ahead and do that now and create a better living environment for you now and then you know more opportunity to save now because you make that move now and it might just be a little condo or something that fits your lifestyle this is the Dave Ramsey show

Channel: The Ramsey Show - Highlights

Views: 73,113

Rating: 4.9000001 out of 5

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Id: t4sXP0Y7C1Y

Length: 3min 53sec (233 seconds)

Published: Wed May 09 2018