Did You Buy Too Much House? - Dave Ramsey Rant

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[@MrPokemon248]

Bought a $170,000 house. Put $50,000 down. Then wife and I worked 2 jobs for 3 years to pay it off. It was a lot of work and worth every bit of it.

[@chelyrodriguez2005]

You give me hope. Trying to buy a 100,000 fixer upper and my husband and I have two jobs each. Can't wait untill I'm in your position. Best wishes to you both!

[@samjordan8800]

@Chely Rodriguez I suggest you try probate real estate. But don't chase the estate administrators, get to know the probate attorneys!

[@ainurabeisheeva3415]

We are planning to do the same. 3.5 years to pay off our mortgage on 150k home. Down payment 10%.

[@johndone8045]

Daves equation doesnt work in ny and ca

[@davidharrow9025]

Damn...where can I find these prices. The condo I'm trying to buy is 667K and it's not even in the downtown core..it's in the suburbs.

[@bigspoon7984]

I don't make enough to live on the lake. So I bought a house 5 minutes from the lake. Saved about 600,000 dollars. Now I travel. But I can always bike to the lake in good weather.

[@gherbihicham8506]

That's what I call smart, I don't know why people are so hung up on getting property adjacent to a lake or a beach when they can buy it 15 minutes away for way way cheaper and can go to the beach any time they want

[@davyhoogy]

@@gherbihicham8506 for a view and location obviously. THATS why its expensive

[@michaelwarren3626]

We paid extra for a nice mountain view, not 600k though. It was worth it.

[@La_sagne]

exactly.. and when the weather is nice enough that you would enjoy being at the lake, itll be nice enough to bike there too

[@gherbihicham8506]

​@@davyhoogy Got it, doesn't seem like enough reason to pay almost double (if not more sometimes) tbh, but that's just my opinion.

[@digitalbrand5510]

Paid off homes, cars, no debt. Thanks Dave-been doing your program since I lived in Nashville for 25 years.

[@slothymango]

What do you do for work?

[@olliehopnoodle4628]

Best thing my wife and I ever did was keep the small starter home we purchased after getting married. It's paid off. The taxes are not bad. Insurance is not bad. Utilities are not bad. We almost bought a larger more expensive home but 'did the math' and realized it was a bad idea. So we bank more money every month because we don't have a house payment or all of the costs of owning a bigger house.

[@sharonflonnory3078]

Yes! This is me and my husband situation, bought smaller, now its paid off

[@stormblade1199]

Yes. Yes. We did the same. The same house we moved into in our early 20s is the same house we live in now. It's paid off as of 12 years ago! That payment has been going straight into investments ever since. We could retire tomorrow if we wanted, but we both enjoy our jobs.

[@barbieblue3336]

I one million per cent agree Bigger houses need more cleaning. Get more junk inside

[@jessa9877]

Yes, my parents bought a bigger house... when they should have kept the older paid for one.

[@queenjohnson5097]

@@stormblade1199 congrats! Do you guys have kids?

[@joseperez2003]

I just finished paying my house this month it feels good!

[@paulashottesbrooke4400]

I bet it does. Well done. Any tips?

[@bookmagicroe9553]

We own our house too, but the taxes are going up each year.

[@commwell8738]

Good job

[@tunamaker1368]

Did you do a 15 or 30 year?

[@joseperez2003]

@@tunamaker1368 I did 15 years but finished in 8 years

[@Evelyn-pl3we]

There's nothing wrong with having a big house or nice cars (I know Dave didn't say this). The issue is that people want to impress people at the expense of going into tremendous amounts of debt.

[@ryanmcintyre5203]

Rachel Celia he does say that in his book "the legacy journey" you've got it exactly right.

[@stefanfreestylez]

The issue is timing with the nice car/house. Buy whatever you want but you better be extremely comfortable paying these things monthly.

[@RK831]

Rich people seek wealth. Poor people seek validation.

[@lifeisabadjoke5750]

@@RK831 let me write that one down ✍️

[@kbanghart]

@@RK831 does that include the rich people of hollywood?

[@davidgroff4723]

The 25% rule is the real deal. When I used to be able to cover my monthly house payment with my weekly paycheck, the rest of my expenses weren't a problem.

[@love.1995]

Could you explain this rule please?

[@Mike-jv8bv]

25% is impossible in California. Especially if you are making over 120k a year.

[@Industrious420]

@@love.1995 25% of your income should cover your mortgage.

[@derekrunion3609]

The 25% rule only applies to the mortgage, correct? It doesn’t take into consideration taxes, insurance, pmi, etc.? Thank you

[@UliSwag]

@@derekrunion3609 25% rule is to cover everything. Mortgage, pmi, property taxes, hoa fees

[@omaxman1]

Math doesn't care about your location

[@LegacyFarmandHomestead]

Facts dont care about your feelings

[@leilanidru7506]

omaxman yes it does. Math definitely cares about ur location because it influences the math by A LOT. math cares of u live in the Bay Area, Manhattan, or in the middle of Utah somewhere. Facts don’t care about ur feelings because ur feelings don’t influence the facts at all. Math cares about where ur location is because it changes and varies wildly based on said location.

[@leilanidru7506]

ObjectiveBob I hate dramatic statements like these. You see them in every clickbait thumbnail and title nowadays.

[@omaxman1]

@@leilanidru7506 what I meant was that math rules don't change based on your location. 10-3=7 is true no matter where you are. Same applies to buying a house, if you can't afford it, you can't afford it no matter what your market is

[@leilanidru7506]

omaxman I understood what u meant. Buuut I still think my point applies.. slightly anyways. Modifying ur example: $10,000-$3,000= $7,000. but that same $7,000 isn’t gonna mean the same in LA as it would in Kansas. That money isn’t gonna get u the same thing in both places. That’s the part people care about. Obviously we know 5+5=10 doesn’t change no matter who you are or where you go. But that was never the point to begin with. the “complexity” (it’s not really complex at all) of conversion rates, cost of living per city/state, income rates per city/state, shouldn’t be oversimplified for the sake of a catchy slogan about non-sentient math.

[@PTucker0864]

My previous home was at 22% of my single income. I just bought another house with a double income at 20%, though the new house is valued at almost 3 times of the previous. I learned this years ago listening to Dave......can't say I followed every step, but I lived along the way a little bit.....made some dumb choices, but it's all under control now. Too bad I didn't start 20 years ago.....I'd be retiring at 55 this year. I have no more wants to satisfy.....just to live a peaceful life. No more debt is the key.

[@13Grneyez]

Perry E. Tucker I wish I knew about Dave Ramsey minimalism 20yrs ago

[@fit4ya1975]

Perry E Tucker: Those mistakes put you where you are today, Debt free and retired! Very few learn from them. Congrats and enjoy retirement brother.

[@latortuga123]

@@13Grneyez never too late

[@Wearenotbrokejuststupid]

How do you calculate to get what you can afford? Is it your income multiplied by .2?

[@VMelndz]

@@Wearenotbrokejuststupid by 25.00

[@ivangutowski]

Literally today during the Carnoavirus I was out cleaning my windows. Whilst doing it, I was thinking, good god I would not want a larger house with any more windows unless I can afford to pay someone to clean them.

[@hawkkent]

😄

[@Tyler-sq4lt]

Dave Ramsey said, “Cray Cray” lol

[@dantheman4life]

I said the same thing! He is the man.

[@vgls88]

2nd time I hear him say it! Lol

[@artemkalinchuk]

@@cruisinusa5110 How is socialism working out for Venezuela?

[@ibradeybunch]

Artem Kalinchuk I heard their citizens are all millionaires!

[@perreira831]

I love his common sense to money & learn his ways with personal handling of money. But when he gets into politics my first thought is. OK BOOMER

[@marycarricaburu3683]

My granddaughter moved from Seattle to Colorado Springs because she said she would never be able to afford a house in Seattle. She is looking at another town in Colorado and has changed her career to be more employable where she plans on ending up. I love that young woman and I am proud of the good head on her shoulders.

[@jujubee90275]

Take it from me. Dave is right all day! I'm dealing with being house poor and I'm tired of it!!!

[@jmedi5589]

I second that

[@MartinLabuschin]

did you improve your situation yet?

[@paulpetersen7041]

Hope you are doing well!

[@georgewashington938]

I bought a 1,500 sq ft home for a family of 4, and we only use 2/3rd of the house. My next house is probably going to 1,200 sq ft or smaller. I have been debt free for 4 years.

[@e.samoor8323]

I am glad I found you early in my adult life Dave! You are a father/guardian to so many. Listening to you has saved me and my family from great financial mistakes. God bless you greatly sir.

[@micheleracer5574]

You are VERY lucky to have access to all these videos at your age! I’m 45 and just found Dave. I wish I would have found him 20 years ago.

[@jimmygarcia5962]

U just need a bigger down payment people to get to a quarter of your income. Run the numbers on a mortgage calculator to see how much you need to save. I live close to DC and I need to save a 40% down payment to be at the right numbers. No house poor for me... Dave is right don’t be dumb

[@fazdoll]

40% down is $120K cash for even the minimum acceptable house in DC. And when you're paying rising rent, you might be 50+ years old before you save up that $120K. And by that time, house prices will rise and that 40% is now $150K. Good luck playing catch-up. You might be better off just saving frugally in a cheap apt and buying a small house outright when you retire.

[@DarknessFalls29]

Jimmy Garcia Same here. I'm right outside of D.C. Too and I will have to put down a good chunk. Smh

[@matthewwilliams9200]

The great thing about saving is just because you saved it you think extra before you spend you may get that 40% and say i want to pay 80% for a different house

[@tomd1434]

Exactly.

[@theonlyconstantischange123]

@@Mark-xj8bu lol

[@Zoot_of_Anthrax]

I bought my house in Jan 05 and realtor and brokers wanted us to buy 250-300k home on joint income of 50k before taxes. I flatly refused and bought home for 130k, got divorced and quadrupled my income. So glad I made that decision and didn’t get talked into a 300k home. I certainly would have lost it during 08 bubble and divorce.

[@Zoot_of_Anthrax]

Clorox Bleach - classy

[@erelpc]

Sorry it didn't work out :(

[@Zoot_of_Anthrax]

@@erelpc I'm not. he's a loser.

[@mtnmann72]

Quadrupled your income after divorce? I am curious how.

[@UliSwag]

@@mtnmann72 alimony

[@warriorsofsuccess9324]

My wife and I are both 28 we have 30k left on our 1200 sq ft house because we bought it run down. Put a bunch of work into it, so grateful for that decision. My wife helps me with almost every project and we are not struggling by any means. Very lucky to be in the position we’re in but it took WORK. I feel like when you work hard, it pays off! Don’t mean to brag but we just want to show everyone it’s possible to get in a good position! Good luck people! Thanks Dave for what you do!

[@kb4083]

I was about to purchase a home, then I discovered Dave Ramsey... well, looks like this plan will be on hold for a while. The mortgage down payment I had saved is now going to be used to clear all of my undergrad loans! Thank you Dave for educating us!

[@araineacutebrownnurse7315]

“ I got my real estate license in 1978.....I’m old “ 😂😂😂😂😂😂I love Dave

[@wiiiz3]

Don't forget Toronto, Vancouver and San Francisco as the most expensive real estate cities!

[@Dis_is_fine]

This! My husband got a job offer to move to Toronto where we would get paid more but that the rent would take 30% of our take home and we would never be able to save enough to buy an apartment because by the time we would have saved enough the price would have tripled. I love Toronto, it's one of my favorite cities in the world, but gees, we would need to make at least $200,000 to make it in there

[@foolishcreations2259]

I live just outside of Toronto and if you live just 45 minutes east in Oshawa it’s much more affordable. About 400k for a small bungalow.

[@wiiiz3]

Summer B.H. I'm in toronto & make $44,500 but I have to suffer by living with roommates to save because I can't stand paying so much money on rent. I'm just here to save money then I'll leave this city. and what do you like Toronto so much?

[@wiiiz3]

FoolishGaming yes, that's where a lot of GTA folks are buying houses nowadays.

[@tonyj8947]

Try NYC for expensive..Toronto is expensive too but not like NY especially if we convert USA to CA dollar. Million dollar US home is $650K in CA dollars..Try NY property taxes especially on the outskirts of NYC where the norm is 20K yr in taxes.

[@anab333]

many people I know back in the bubble years bought homes with no money and no jobs, they were wondering why my husband and I did not buy, we just simply say we cannot afford. fast forward, lots of those people lost their homes or are still struggling. we bought a home many years later when we could afford and with a manageable mortgage

[@tractioncontroloff9796]

I love Dave’s no nonsense approach to excuses. He’s a good role model for father’s. I appreciate all of his content!

[@ALXSSA]

People always forget how logical math is lol

[@TERESAFILIPINAINAMERICA]

I am from the philippines and live in pennsylvania now. Love your videos very inspiring and give a lot of knowledge especially about handling money. You are so brilliant.

[@jimmytwotime6875]

I make 110k a year... bought a house in my hometown for 62k. All thanks to Dave's advice! My mortgage company approved me for 240.

[@s55558]

tito hall a house for 62k that’s incredible where abouts is this ? Also congratulations on a great buy 👍

[@calebniederhofer6529]

A house , or manufactured home ?

[@GarminPro]

Bought my house at 27, paid it off at 31. Bought a fixer up and didn’t do the fixing until I was debt free. Used the depreciated cost of the home because of it not being updated to spring board my payoff time. Now 1 year later I’ve made it a dream home and it’s paid off.

[@keshabbhattarai4884]

Biting off more than you chew and you choke it that will destroy your life. Love this.

[@leonbattistaalberti6691]

HOAs are not constitutional! Each neighborhood should have an annual vote if residents want them. No outside entity from government should be entitled to your money and have the right to charge you for things that are not illegal.

[@megantaur3683]

I just moved in Michigan. I love the weather here because I am warm blooded. And I feel like I belong. I was so excited to buy a beautiful house. After watching this, I don’t have house fever anymore. Phew! Almost got me in trouble!

[@drakemiller4676]

You don’t need 5,000+ square feet you “want” it

[@vicepresidentmikepence889]

You don't need to buy a house you "want" it

[@LittleHatori]

^Said no real estate agent ever.

[@thomasreedy4751]

Well in some places a home less than 1000 square foot can be pretty pricey.

[@blackworldtraveler3711]

Thomas Reedy No gun to my head so doesn't matter.

[@MagicBrianTricks]

You don't need to live you "want" to

[@rebeccachambers419]

I love Dave’s rants. Sometimes I need to hear them.

[@creditplug]

idk...i went from a studio to 2600 sqft on 4 levels....ill take the bigger house all day. I like having different rooms and floors to go to instead of sitting in a box. I can think better. plus i like doing cart wheels in the living room. lol

[@run4cmt]

I bought a two family house. I lived on the first floor and rented out the top floor. Other than my down payment and some renovation cost, the tenants have paid the mortgage. That has given me money to travel. So far I have been to 30 plus countries and 48 states.

[@nathanielaranda8407]

I learned from my parents mistake with realistate in 2010. I was 10 at the time and I was very afraid of buying a house, but I realized that if you do it right and do it wisely it can be wonderful 😃

[@OhWell0]

So you are 23, and you've purchased a house?

[@MsTinaDiane]

Been following the Dave Ramsey Money Makeover PLAN for over 12 years. IT WORKS!

[@StormMonroe]

What if you don’t want to buy a traditional home? I’d rather just get a tiny home.

[@KTSpeedruns]

Math is math. It doesn’t change for your type of home.

[@StormMonroe]

Reiden Lightman Thank you

[@user-dq2ym1nn9k]

Can highly recommend Lloyd Kahn books - specifically "small homes - the right size".

[@victoriah9421]

Also jobs don't care if you can't afford to live there. In the UK, anywhere with decent jobs has ridiculous real estate prices.

[@MikeyFFA500]

So happy that my mortgage is 23.7% of my take-home pay.

[@jason_v12345]

Is that 30-year or 15-year, because if it's not 15-year, you're still not meeting Dave's standards.

[@my_humble_opinion4019]

Me, too!,

[@xxpowwowbluexx]

How do you calculate it if you have a 30-year mortgage?

[@xxpowwowbluexx]

Mine is 25.19% of my take-home pay on a 30-year mortgage.

[@iwillsurvive1335]

*annual take-home pay...

[@jhford1234]

I used to live in Orange County California but was priced out due to the crazy cost of real estate. Just closed on my home and Overland Park Kansas. Beautiful neighborhood, nice, safe, and well within my budget.

[@kc_ink_addict9079]

small world! I live in Kansas City on the Missouri side!!

[@luisperera1127]

jhford1234 do you miss California? I’m afraid to move out of California. I’m from riverside.

[@fitnesschallenge1000]

jhford1234 what about the beach???

[@-._.-KRiS-._.-]

Thank you for not moving to Idaho.

[@ballathug8404]

Lol Dave's numbers worked maybe 20 years ago. Today, a condo here is $300k and a house $600k minimum. Good luck with a 15 year mortgage and 1/4 of your take home pay

[@jordycorvers7465]

then you can;t afford, and should not, live there.. .move and look for a cheaper area.

[@ballathug8404]

@@jordycorvers7465 maybe Mars

[@tejindersingh4154]

The green color bar on his head looked like the health bar on a video game character... then I realized that it was a book on the shelf behind him.

[@bettysmith4527]

Dave you are stuck in 1978! House prices have risen significantly, and most people ,,myself included, would never be able to afford a home over 15 years. I did a 30 year mortgage at 3.5%, and I am ok with it, as I can afford my home. It's unreasonable to think someone should just up and leave their family so they can go afford rent or home ownership in another state, then they spend money traveling to see them anyway! I am not house poor, I make 96K a year. It's not a one size fits all!

[@kiwiradioNZ]

Never say never as that's your own state of mentality

[@dc76384]

115,000$ for my home. Pay less for my home than some pay for their car.

[@JonnyBeoulve]

But you live in the ghetto.

[@windowlicker6996]

Yeah must be a ghetto because townhouses are going for 450 plus where I live.

[@Badjuju22]

Yup I bought my g wagon for 100k smh . But it’s made me more then your house has made you

[@allthingsfestiva7624]

Highly doubt that it is ghetto territory. Its called midwest living. Not everyone lives in overpriced cities. $115k would be a decent amount of house here in Illinois where I live. Ghetto price is like $30-40k around me.

[@-MOYST-]

Ghetto in western Washington is 275k

[@knudsenj100]

I've never been to Williamson County, TN but after his comments, I had to take a look at Zillow. It's amazing the most expensive county in the state of Tennessee is priced less than most "average" areas in coastal states!

[@lreichstein]

You’re not missing much.

[@mannyjeanpierre4062]

that kermit the frog imitation voice lol. This video is golden

[@hannahmcintosh5343]

I thought he sounded more like Bert&Ernie from sesame street lol. But yeah it was great XD

[@MissHunterELA]

It sounds like Marvin the Martian voice to me, y'all. Whatchall think?

[@Josh-ii1eq]

................the dude just asked if the HOA was included in that 25% or not. I dont see the point of bashing on him for trying to be responsible.

[@kidcivic2002]

He didn't even answer the question and went on a rant. I was curious too because I want to purchase a condo and the HOA pays for water and maintenance which could be considered a utility.

[@shoeyxc]

Lol, I know. He said the only thing I can afford is a condo, do I include HOA fees in the 25%? Such a ridiculous rant.

[@mikkimoney7110]

If you have children please be careful. We purchased a home that was well within the 20% zone so we wouldn’t be any where close to “house poor” and ended up in a neighborhood that had TERRIBLE schools. I regret it so much and would wayyyyy rather be paying more for my mortgage and live in a nicer neighborhood than living in the horrible school district that I do now. Do your research!!!

[@ghiaferrari7585]

Mikki Money Why is the school terrible? Are there bullies? Are there drug/alcohol/vape problems? Maybe you can homeschool ?

[@kclarke9510]

Send them to private school with the other 80% of your income

[@rs-dp6pr]

Hummm, not checking before you buy when you have kids? That's a big oversight

[@nznsi]

Every year I take my family on vacation, sometimes twice a year. Every time, like clockwork, all but 1 of my homeowner friends and family members say how badly they wish they could afford a vacation. They all have new homes, new cars, new phones, etc. but are stuck in the same town like they live in prison.

[@lukedahusla]

NZNSI Inc just because u leave for a week doesn’t mean you’re not stuck there also...smh

[@nznsi]

@@lukedahusla luke dahusla first off, vacations are longer than a week. Second, we catch cheap flights and take weekend trips all the time. We are constantly going places and doing things because we are not tied down to expensive junk at home. We put more $ in the bank & do what we want because we are not wasting our money on new, financed junk. Borrowing money for anything puts you in a financial prison. When people are making excellent money but cant even afford to take a small trip once a year, that's awful.

[@lukedahusla]

NZNSI Inc But you still live in the same town! Congratulations

[@nznsi]

@@lukedahusla but we leave and visit other places... get out and see the world. My friends and family don't even know what other cities are like. My wife is a nurse and did travel nursing for a few years. We took the kids all over the country staying in a different location 6 months at a time. That was so much fun and good for the kids to see how great and diverse the U.S. is. We moved back home to help my grandparents for a while. Now because of the coronavirus, travel nursing agencies are offering $5,000 / week for nurses to come to New York. We are about to hit the road again. To each their own. We live by the rule that we are not tied down to a location or overwhelming financial obligations like loans or credit cards. Other people consider that the "American dream" but complain how their paycheck is gone on payday.

[@lukedahusla]

NZNSI Inc sounds like all u got was a case of self righteousness

[@tylerclark-realtor]

I lost it when he started using the “callers complaining voice” 😂😂 he does that voice to well.

[@1981yama]

Dave, God Bless you for taking the time to take in help us idiots. We all know the answers before we call or email you but it feels good to hear you reinsure our fears. lol Just save everything you can!!!!!!

[@KeemieKEZ]

RE:2008 housing bubble burst Yes, people are irresponsible. However.... Those people should have never been provided mortgages in the first place. Funny most of the banks never got any accreditation taken for their actions. They got bailed out. All so investors could make out. Housing prices kept going up because greedy investors wanted to trade the MBS’s. They took advantage of poor and uneducated people looking to make it in America. There was never real accountability for the lenders. Shame on them.

[@mrfred1000]

And what about the current student loan debt situation and Credit card Usury? Payday loans too? All of these take of advantage of people who can't afford things and are not knowledgeable. Someone walks into a Payday loan place, by definition they afford it, that's why they are coming in. Someone needs to buy something but uses a credit card, by definition they can't afford It as they don't have the money RIGHT NOW during the purchase. People use to say, oh I want a new fridge, let me save up $100 a month for 5 months then buy this $500 fridge. Now they go oh let me borrow money from a bank via credit card and pay back overtime for it and there is interest associated with it. The entire credit score, credit, College loan prices etc is bogus. Most College students cannot afford to go to school, but they are still allowed to get into debt. Can they make it? Sure with proper know how, but the very system telling them to go to school does not teach them HOW to work and pay for school while attending.

[@2013_Shox]

kerryav the reason the banks can get away with being so greedy is because the government has set the precident that they are too important too fail. This incentiveses reckless activity because if you are frugal as a bank your competition will blow you out of the water. The banks aren't the problem, the government is.

[@DanJNigro]

Hahahah "Cray, Cray!!". This is why he is loved by both older folk and millennials alike. Too funny.

[@pearlvictoriagosiame7157]

Thanx Dave. Sometimes we just need to hear it as it is. If you can't afford it, you just can't afford it.

[@expendable4h002]

Your household income in San Diego County has to be $150K in order to have a house payment 25% of your income with a purchase price of $510K with 5% down. The challenge for millennial compared to baby boomers when buying a houses is the property tax base is about a 400% increase.

[@koser19721]

Bought my house in 2009 for $80,000 😁

[@Josh_Roberts]

No way 😭 whats it worth now??

[@koser19721]

@@Josh_Roberts $240,000 😁

[@ChristianSedaPlays]

Boss move. I'm waiting on a downturn and I'm in there

[@yodaflyz]

I got on a $65,000 mortgage right after the Government Shut down we had earlier this year. As the banks couldn't move houses during the shut down there response was to lower interest rates & I locked in a 4.25 rate. I'm told that I lucked out as they say thats really low. My mortgage payments where set at $441 a mouth until right after I moved & got in the house. I got an offer & signed up for a biweekly payment program that allows me to pay $249 on my mortgage every 2 weeks (right after my paydays). I decided to go with the Biweekly program as it's supposed to help me pay the house off faster & I'm all for getting out of debt faster. My old apartment I moved out of was $800 a mouth but as I was splitting that cost with a roomate, I was actually paying $400 a mouth out of my own pocket. As far as I'm concerned, my rent could of gone up that extra $41 a month this fall had I stayed in my old place as nothing in that town was getting cheaper ($400 rent vs a $441 mortgage). It seemed like a good idea as unlike with renting I'll eventually own this place.

[@steveeab2364]

My neighbor bought his house new in the 40s for 5,000. Houses in our area now go for 220,000 -250,000. He's been without a mortgage for decades.

[@jaysmith6013]

My family got together and had an intervention for my youngest brother in law regarding this exact same topic. He was to be a first time homeowner, married with 3 young kids, single income household making $90,000/year. He got approved for a mortgage and started looking at brand new construction townhouses starting at $300,000 because technically he could afford the monthly payment. Because we love him and didn’t want to see him struggle by making a huge mistake... we explained to him that owning a house is so much more than just being able to afford then house payment. The payment is just the beginning. Take into consideration taxes, bills, food, car payment, insurance, retirement, etc. You would never want to be in a situation if you want to take your kids to Chuck E Cheese for their birthday, but if you go you’d be in danger of not making your payments on time. He saw the light and ended buying a $150,000 townhouse and now is living comfortably within his means. After experiencing a year on his own, he says he can’t believe how narrow minded his thinking was and if he went ahead with the new house, he would probably been foreclosed on by now.

[@jessa9877]

Lol, we have no house under 400k where I'm at

[@kbanghart]

@@jessa9877 california?

[@mle011]

I agree. For some reason, people are so afraid to move across the country to somewhere more affordable. “But my family lives here” or “my friends are here”...so? Maybe your family can afford to live there, but you can’t. And you can make friends anywhere. Get up and move to an area of the country that is within your budget.

[@drlax15m]

you really can’t replace generational community ties, and life long networking so easily, and the layoffs happen faster through no fault of the worker, moving is a huge risk, better have the full emergency fund in place for that…

[@adventuresiwork3563]

This doesn’t apply today in 2022. 25 percent of your take home pay with a 15 year mortgage would mean you will not buy a house unless you’re making a net income of 110k and you will only be getting a 200k dollar home which will be a tiny house shed on a .25 acre.

[@ToOpen6seven]

Nothing wrong with a 30 year with a fixed rate. Just pay off the house in 10 to 15 years and that way your monthly payment is still affordable. That is exactly what I am doing right now.

[@joycekanyangii7679]

I love Dave's rants

[@donnyj9487]

They are the best!

[@montanawhite5699]

I live in Hawaii in the big island. A decent 3 bedroom 1 bath house from the 1950s is about 500k. And that’s move in ready but mostly all original house. Hard to live here.

[@lj2070]

I want small bedrooms, and big garden

[@user-dq2ym1nn9k]

smart.

[@wesjimez2941]

If I followed Dave Ramsey's advice I would have never bought my house. He is right you should try to get a 15 year mortgage, but a 30 year gives you more flexibility. I can probably pay it off in 18 or 19 year's.

[@kbanghart]

Exactly

[@ToOpen6seven]

Right!! You can pay it off in 10 or 15 with two jobs. But still have a 30 year mortgage with the lower monthly payment.

[@SuperBridgy16]

Alaska is freaking expensive. We are going to save a huge down payment so our mortgage will be within the 25% rule. Otherwise we would have to buy an old fixer upper.

[@ShakespeareCafe]

My name is Matt Foley. I’m 35 years old, thrice divorced. I am a motivational speaker, and I live in a van down by the river! Yes, I bought too much house, an extended van, and it’s a bear to parallel park. I should have purchased a minivan

[@maddog12186]

I bought 1300 sqft broken lake house im working on rebuilding it. Never thought it would be this much work. Almost to the point of putting drywall back on the ceiling and walls

[@0113mountainman]

Dave, I love your hard hitting “wake up call” delivery. You got a new subscriber. Greetings from the UK!

[@ヨママ]

Small correction on the Tokyo thing. I live in Tokyo and it's a lot cheaper that most people think.

[@ambergirlever]

My man said "cray cray" had me choking on my drink. What a legend lol

[@christefdesir1372]

ambergirlever I literally died 🤣💀🤣

[@robnation7]

In general, I think DR has a bit of wisdom to share the average person in America. But for several reasons, beginning with spending my entire professional career in high rent ‘coastal elite’ districts, my financial profile flies in the face of almost all of his principles. And it has provided significant accelerated wealth...much of this has been BECAUSE I lived in expensive cities, have always paid much higher than 25% of take home to my mortgage, etc. by living highly leveraged since a young working age, I’ve built about 1M in real estate equity in about 10 years. Wouldn’t have happened if I lived by the 25% rule. Just a reaction to the parochial thinking...and the unnecessary distaste of expensive places, which generally are desirable to live in for good reason.

[@yashthakar9441]

I have friends having 80% of take home pay as house payments..its really stupid of them to pay through their nose for stupid real estate

[@edwardrhoads7283]

Any bad hicups they loose that house...

[@lefthanded5473]

I bet 60% of that is because of high property taxes. Tell them to move out of New England!!

[@bjornarmar2462]

“I live in XYZ!” “Well, maybe you don’t anymore.”

[@Yo-oq9gg]

Me: Dave, I got Coronavirus. Dave: What's your household income? Sell your car.

[@dlzk12]

Ha ha 😂

[@rpupshaw]

“Your kids are gonna be skinny” 🥴😂

[@fairarthur]

😂😜😂

[@rebeccayoung9434]

Skinny is good!

[@ChaceBonanno]

5:25 Dave's kermit voice

[@minkasfitnessjourney6136]

This is the exact question I’ve been waiting to be answered! I question this exact thing living in a suburb of Seattle where the average home price is $727,000

[@sruelas209]

Minka’s Fitness Journey buying is still cheaper than renting :)

[@xplics]

Oh word!

[@mentalhealingwithelaine]

Then move

[@xplics]

@@mentalhealingwithelaine that is a idea right there!

[@mkite715]

Driver Pill In the long term it’s cheaper. In the short term it’s not.

[@donnyj9487]

All of my friends who are normalizing buying a million dollar home in california when their household income doesn't add up need to watch this!

[@jasondonohue7355]

I agree 100%. I make enough to live on Long Island with a wife and 4 kids in a 3 story 4,000 square foot house. My property taxes are almost $20k a year and then there's the Bills. I wouldn't buy it if I couldn't afford it. My neighbor has a small house he build by hand back in the early 1920s and spent almost $1000 on everything. Today it's worth $250k. You NEED to be smart with money. Don't get a house or car that once you buy it, you're broke and cant buy a pizza Friday night. Buy in cash!!!! People say it's impossible. Its not

[@flaco050iiix7]

If u don’t mind what’s your job? To have a good life

[@jasondonohue7355]

@@flaco050iiix7 it's not the greatest life. I run Terminal B at LaGuardia Airport here in New York. Its overtime pay that benefits me most. I put in about 80 hours/week. Sometime 90. It kills me to do it but it's very rewarding. My overtime has slowed since last year through the hiring of assistants, but it's still about 70 hours. If I worked the regular 6-2 40 hrs/week I'd make about $200k/year. I love what I do, maintaining a/c, heat, and every bit of maintenance is run by us. No one notices what we do, but we make a great living out of it. You need many licenses (steam licence, welding, etc) but once you put in the hard work, the rest is up to you. God has blessed me tremendously

[@YIPPIEIMWINNING]

Hey Jason your totally right...I too live in long island with 4 kids...my taxes are about 14k...but it's worth it for the schools. I work for transit authority and like you do some overtime to help pay the bills. Stay blessed my friend

[@Football__Junkie]

I live in Williamson County where Dave lives. That 4,000 sq ft house here would be about $4,000/yr in property taxes. Also, we have the highest rated schools in TN. Our taxes are less than Davidson County, which is Nashville, but schools are always ranked higher.

[@rmfinance1781]

That's why I plain on living out of my car for a long time. Best part is...Los Angeles is the prefect place to do it. I save a lot of money by doing so (plus money I save with military deployments here in there with the USAR). That way whenever I retire and draw my military pension I move someplace cheap, like Texas or Vegas, and buy a house cash.

[@TehFlush]

Just don't bring Californian politics with you

[@rmfinance1781]

@@TehFlush California politics are already infuriating Texas. The state has had an increase in blue the past four electrons. That being said I'm more of a libertarian than anything. But I cater to neither party. Both are severely flawed.

[@jessicajackson1200]

I bought my house 7 years ago. I payed 125000 for my house and my income was about 75k per year at the time. Now its about 90k per year. But my property taxes have more than doubled and my homeowners insurance has tripled since i bought it!!! My monthly payment has increased about 250 dollars per month just in escrow!!

[@onebridge7231]

Well my rationalization buying my 2020 Jeep Gladiator Rubicon was because of the snow here in Minneapolis, but to be honest it was more for the top and door removal and weekends rock crawling, snowboarding, and biking.

[@shauns06rubi]

Jeeps are best! And I'm jealous of your Gladiator.

[@endurojoe1308]

You gotta live your life too lol

[@carolynngockel3670]

When we bought our three bedroom, everyone said it was too small and we'd have to move. So glad we ignored them.

[@richardbennett8906]

Dave Ramsey "You live in an area where stupid people ran up the tax base and then wondered why everyone left" Me: *Sitting in Illinois listening to this. Starts yelling in agreement towards my phone screen* "Yes, yes I do. That is exactly what happened!!"

[@richardbennett8906]

Moments like these it makes me think people are talking about me. Almost like my pastor at church and friend at small group.

[@cristelahopkins447]

Ditto! I'm one of the people that left Illinois seven years ago, the same year they raised income tax. I was self-employed, but I wasn't going to be content to remain self-employed where the state government was overstepping its boundries to make small businesses bale them out of their wreckless spending habits.

[@edwardrhoads7283]

Yeah agreed Illinois is cray cray. At some point their real estate market is going to implode because: 1) people are moving out of the state (less people = cheaper houses) 2) the taxes are INSANE 3) no investor will touch the state because the land lording laws are even more insane. It takes about 6 months to kick out a deadbeat in Illinois. No way I would rent out a house in that state...

[@normaalvarado4929]

U folks in Illinois got sweet deals in cars though ..I watch ur marketplace from here in Iowa its ridiculous

[@KeemieKEZ]

Yes, people are irresponsible. However.... Those people should have never been provided mortgages in the first place. Funny most of the banks never got any accreditation taken for their actions. They got bailed out. All so investors could make out. They took advantage of poor and uneducated people looking to make it in America. There was never real accountability for the lenders. Shame on them.

[@RockyTopSplash]

2008 I was approved for $225,000 house. We made total $20hr.. lol!! No thanks.. we rented for couple year at $380 a month.. saved for down payment on $100,000 house

[@crow-vz5lx]

I worked for JTS Communities during the 2008 housing crash as an Assistant Superintendent. (Residential construction) It was pretty.... Crazy. They build Very expensive huge houses with the cheapest material. Drove hummers around to show potential buyers the houses Spent tons of $$ on lunches, meeting, Front row tickets to every sporting event. Cells phones, bonuses. Etc. Then, boom . A team of executives, went around to each site, and let almost everyone go. After a few weeks. The fancy hummers were replaced with eco cars, no more construction. Many were at varying stages of construction. And I lost much of what I thought I had. That was good in a way that it taught me how to manage my money better and how I make it and save it etc

[@thebeybro5567]

I’m one of those broke people who bought a house in 2008 and I’m so glad I did LOL!!

[@drunclecookie216]

hm, my house is 17% of my take home pay.... that doesn't even count my wife's take home pay

[@edwardrhoads7283]

That is a GREAT spot to be in!

[@drunclecookie216]

@@edwardrhoads7283 yep, it pays to live in a very rural area. granted the pay isn't as great as in big cities, but the cost of living is peanuts comparably

[@cynquettadean7114]

Bought our house based on my income. Didn’t even consider my husband’s lol. It’s perfect

[@sparkster4000]

“You can’t live in Lagoon Beach and make 45K a year” I make almost exactly that and I live in Redondo beach, California, which is one of the best areas in LA. I pay 865/mo for rent, got that agreement in 2024. It’s called looking for roommates and for deals. I have my own bedroom, share a bathroom, but I’m in an EXTREMELY nice area for only 100 more a month than I paid in North Carolina. When you’re in a city there’s ALWAYS a deal if you look for it! Be the person who isn’t lazy and searches for the right place!

[@deanslegos1990]

The more I listen, the more it makes sense

[@simonjohnson1381]

You sound like it was the poor people’s fault for the crash 10 years ago. It takes 2 to tango. The brokers were pushing arms instead of fixed, I had to ask for a fixed, because they came to closing with an arm, I said no way, they had a fixed for me just in case I didn’t go with the arm.

[@JohnDoe-gc1kt]

And they are selling arms again

[@simonjohnson1381]

J Wil I don’t think you understand...he was trying to get me to go with the arm it I recognized the payment would change after a few years and after rejecting several bad deals at the closing table he finally pulled out the best deal, which was the best fixed rate at the time...so who’s stupid now?

[@ManeAttractionsinBowieMd]

Kids are going to be skinny. When your house is strangling you🤣🤣🤣

[@DanielGarcia-zz9eg]

It does, l took cold showers for 2 years till I brought the right house

[@brandonollar7876]

We bought a house for $115,000, super nice cute home on 5 acres, completely private. NOT GHETTO, NOT GROSS...updated and modern, super clean. Our payment is 12% of our take home pay and we can literally do whatever we want. We live in rural Oklahoma

[@coconutsfor2963]

Its happening AGAIN DAVE - people are buying to much house and will lose it all , when the crash appears. The problem is its not just houses , its all types of credit. Im ready to take advantage - of these people your talking about. SHORT SALES and FORECLOUSERS bring it on !

[@therealMelB]

Watching Las Vegas as we speak! Its right back to where it was in 08, and the average salary is THE EXACT SAME?? But this time its foreign investors that will lose most.

[@sruelas209]

Lol,

[@Lastochkad]

Joseph Morales the same happens in Naples,FL I need a house but don’t want to buy for 200.000-250.000 when few years ago is was for 60.000-80.000 I’m waiting and it will start happening this year. Next year is election and it will be getting worse.

[@sennsir]

2:11 Cray Cray, from the man himself! 😂👏

[@johnSmith-uz8nl]

All my HOUSE POOR friends from 2008 - 2012 are so happy today that they bought as much as a house as possible.

[@peachezprogramming]

math works everywhere EXACTLY the same

[@thebestwillow]

Math works everywhere. Maybe that's why I like it. Consistency.

[@vivianblack2951]

I bought an OK apt. in an area where I was looked down upon just for living there. 15 years later I have sold that apartment and retired debt free in a 1200 sq ft rancher on a small lot in a small town. Those mockers are still in their rental units, dealing with rent increases, but each to their own. Listen to Dave, buy what you can reasonable afford.

[@user-np6tf8zx1u]

The problem is people get stuck in the high cost of living areas because their job is there. They struggle find a job anywhere else especially if you're in a specific industry that requires you to be in a major city where the costs are high. It's so expensive that you can barely save enough to move or to support yourself for the inevitable months of unemployment that will follow after leaving the expensive city. Agree that we should all make a plan to leave these places but it's not as simple/easy as Dave makes it seem here

[@donnyj9487]

Agree! It is a double edge sword, but also most people don't want to sacrifice. We don't want to move away from family or live outside the city or live temporarily in a undesirable location, or work outside of our "dream industry". As a recruiter with 10+ years of experience, people eliminate themselves from opportunities before even applying when all it make take is a brief sacrifice to level up and then get to your ideal place in life! Even though tomorrow isn't promised you can still be strategic and play the long term game.

[@user-np6tf8zx1u]

@@donnyj9487 well you have to consider there's a lot of reasons someone is unable to leave their "dream industry", I.e. the industry they've already built a career in. They can't take the pay cut. Why? Because of kids, student loans, the rising cost of living, etc. I think you have to consider there are systemic issues at play here beyond consumer choice behavior. Even people who are willing to sacrifice themselves to an extreme arent easily able to "just move out of the high cost of living area". Even though it's the advice I'd give to anyone who asked, I also accept that it's not always that simple.