Why Shouldn't I Buy A House Right Now?!?

[Music] Cody is with us in Savannah Georgia hi Cody how are you hey I'm doing well Dave are you better than I deserve what's up it's got a question about buying a house versus raining first up let's say whenever we started this program about halfway through our buying house buying experience and we have about $37,000 and move that we really didn't even know it was that until we started in the program and doing a budget we I guess the question is is should we stop our house buying now or should we finish ring or Steiner and it stopped your house buying what does that mean you you are you like we're going to convert we were we were under contract where are we we were under contract and we I cancelled the dance on the deal okay and you're under contract now No okay I'm not no you cannot buy a house okay you know thirty seven thousand dollars in debt you're broke yes sir and when brought about houses it makes them broker oh yeah I know I guess my other question was I guess I with interest rates I guess interest rates are going up substantial incoming that has since in since the beginning of the process and now it's going to break a bit Cody I guess there's nothing to worry about later on I got my real estate license in 1978 in September in October rates went from nine and three-quarters to ten for the first time ever yeah people bought houses rates are for when they go to five people will buy houses when they go to six people will buy houses it's not gonna keep you from buying a house yeah no I guess it's just you always hear about the hire industry oh you're gonna hear your pants can jump up so much yeah you know you hear about that from people who don't know how her on a calculator and who are broke yeah usually a real estate agent trying to sell you a house - yeah it's kind of exactly what I'm talking about yeah how old are you 25 okay here's the thing this show is about creating a situation with your money where your money doesn't own you you own your money where you move towards wealth and the shortest path possible that's what this shows about financial peace - words that don't go together like airline service okay that's what this shows about it's not about you keeping up with the Joneses the Joneses are broke if you even know who they are these people that post crap on Instagram and they post crap on Facebook they only put the good parts of their life on there it's there highlight reel dude it's not real you can't compare yourself to them the vast majority of people are broke 70% of Americans live paycheck to paycheck 7 out of 10 people you walk past going down the sidewalk are broke you can model your life after them and you will be one of them yeah or you can model your life after the weird people because wealth is unusual it's not normal and so you have to engage in unusual behaviors and habits to create unusual results agreed all right it's not normal to win the Super Bowl the people that win the Super Bowl are admired because they did something other people couldn't do or wouldn't do they paid a price okay yes there so when you are 65 or 70 years old and you're a multi-millionaire because of this conversation you will be yelling 'yay way to go 25 year-old Cody yeah if you go do smart stuff so here's what I'm going to tell you that I want you to get a house I just don't want your house to get you don't panic don't panic you're 25 and I'm sorry go ahead you're gonna get a house you're gonna get a house and there's no there's no mathematical justification for you buying a house no interest rate justification for you buying a house while you have thirty seven thousand dollars in debt you clean up your data and you get out of debt if you move into a house with this much debt and no money Murphy is gonna move in your spare bedroom the guy if it says if it can go wrong it will he'll bring his three cousins broke desperate and stupid and they'll set up housekeeping will you dude your house your life will look like a country song this house will be a curse instead of a blessing I want it to be a blessing so here's the option you move in now like all your friends are doing and all these idiots that are broke that are pressuring you to buy a house right now when you're when you're broke 25 year old young married guy and you're gonna make a mess it's gonna take you a decade to clean this mess up if you do this or you can be weird you can roll up your sleeves and you can become debt-free very very quickly and I'll show you how and you can save up a good emergency fund of three to six months of expenses and I'll show you how and then you can save up a good down payment it's gonna delay your home buying by a couple of years but when you move in the house with $20,000 cash in the bank and no payments the house is a blessing not a curse when you move in the house right now the way you set up right now it's gonna be it's gonna be more stress how long you been married we've been together we've been married about a year and a half and we have a she's going on eight months old now that's wonderful number one number one calls a divorce in North America today money fights and stress oh yeah that's where our mean that's the only thing that mean wife really ever argue about yeah and uh no I mean I have a guy have a great job what's your household income well my base buy it my base pay is around seventy seven thousand dollars which our old income Cody anywhere but well I made a hundred and ten last year but I'm on the track now for like 130 and it's all because of overtime I work 70 hours a week your money making machine do and yeah does your wife work outside the home no that's the thing is I want to hurt it's where she does her work that's fine she doesn't you she doesn't you make 130 sohow class house can you pay off 37,000 making 130 my calculations say a year yeah my plan was to try and get it done within a year by didn't I I guess I get stuck in and do I buy a house now you know he's you know that's the thing you have to do so I've been talking to you for five minutes trying to get you on staff I want you unstuck okay because you make really good money you have the opportunity to clean this debt up and build your emergency fund to three to six months of expenses and then save your down payment and buy the house on a 15 year fixed where the height where the payments no more than 1/4 of your take-home pay you're gonna get that house paid off in about seven or eight years but the time you're 35 you're gonna have a paid for home and a couple hundred thousand dollars in your 401k by the time you're 40 you're gonna be a millionaire or sooner the way you're going if you do what I teach you to do but if you go but a normal and you strap yourself to a house you can't afford and you keep that debt around like it's a bad gum pet you're gonna be normal and you're gonna be a rat no for you and all your money's gonna come in and all your money's gonna go out and you have no frickin idea where it goes and you're gonna be a broke 40 year old that's worked two decades of his life looking at your kids can't figure out how you're gonna pay for vacation and Christmas and that's normal out there man you know it's normal you know what I'm telling you is right and all these broke people have opinions about money that's like I made a mistake of budgeting I mean on every timing I didn't have an issue yeah yeah I knew in the mistake of budgeting on parson my overtime because which means you have to never mean it that means you have to work overtime the rest of your life yeah I don't have to do that yeah so what we're gonna do is we're gonna work like no one else right now so later we can work like no one else which is not why I would if I got what I want to so have you and your wife been through Financial Peace University yet yeah we are finishing it right now the actual steps right now we're doing the program right now I'm sorry did you go to the class did you go to the Windows No we're doing it on our own you're doing it online yes sir you're signed up for Financial Peace University online correct yeah okay good Wow I would join a group in your area if I were you and go to some of the lessons with a group and get some other people around you that are walking the same path you're walking because you need some people around you they aren't normal right now you got broke people on your ear you gotta get them out of your ear you become who you hang around with man be careful hey it's good to talk to you Cody if I converted you I just made you a millionaire if I didn't you'll be normal it'll be up to you my son this is the Dave Ramsey show [Music]

Channel: The Ramsey Show - Highlights

Views: 401,989

Keywords: Why Shouldn't I Buy A House Right Now?!?, i want to buy a house, real estate, house prices, dave ramsey, how to buy a house, housing bubble, housing crisis, home ownership, buy a house, buying a house, dont buy a house, i want to buy a house but i have no money and bad credit, i want to buy a house with bad credit and no money down, i want to buy a house but i'm broke, dave ramsey show, the dave ramsey show, dave ramsey live, ramsey solutions, dave ramsey channel

Id: ms2tA8nXBlo

Length: 9min 26sec (566 seconds)

Published: Sun Jul 08 2018