More Wise To Rent Or Have A Mortgage? - Twitter Question

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[@TheRamseyShow]

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[@giocondakisses]

Dave, I love your show, I'm learning so much, thanks I wish knew about it lime 10-15 years ago, a anyway, can you please make a video about tiny home ownership? ! Pleeeease

[@accsportsfan]

The Dave Ramsey X Bvx.

[@marleneabsolu8474]

What are good bank options that provide better opportunities for their customers?

[@leilanikuuipo6004]

Marlene, online banking like ALLY Bank pays a lot in compounding interest. We do checking and have a emergency fund at home and another at our local credit union. I once got 89 cents a month in interest at the Credit Union and our accounts are in 10k, 20k 5k or whatever we have all majorly invested in real estate, in the bank where ALLY pay's $8.95 for 10k a month and we also collect aluminum cans for savings. Hope my ramble didn't bore you and I hope you can look into ALLY.

[@Slash-is3yu]

The Dave Ramsey Show Dave can you bank with smaller banks instead chase or Wellsfargo if you have a lot of money? Will it still secure your money?

[@NoName-gv6nm]

Renting has its benefits. No upkeep, no gigantic down payment that could otherwise be used to invest, if your situation changes moving can be easier, Free utilities usually. It's not a waste as people say.

[@fedvvvv]

Exactly.

[@davidezra9331]

No Name no yard work on the weekends , no excessive trips to Lowe’s and you can relocate easier when needed

[@le_th_]

I've never had free utilities in 30+ years of renting in 4 different states and 9 different (very) large cities in the US.

[@KnockoutInvesting]

It's a waste, you never build wealth

[@bennettmusiclabs9382]

Personaly I feel the biggest issue with the renting idea is, 1 day you WILL wake up too old and unable to work, and Social Security is neither going to pay for the high rents seens in most places nor is it going to kick in, in a timely fashion. and if you have a house that is paid for in full. then you CAN live cheaply and in a manner your acustomed to on a small S.S. check. or if your lucky enough to have a retirment fund. ( but far too many don't have that) but if you start having health issues then you will run out of money quickly and rent ( and mortgages) is just something you won't be able to deal with once that starts.

[@crimsonshadow7459]

Whenever someone asks me how im doing i say better than Dave deserves

[@socketyellow3]

They walk away from you and call the police, for kidnapping a Dave

[@momar4843]

😆

[@arifali6762]

Lol

[@milehyandriver]

@@socketyellow3 😂

[@Keturah-Abigail1]

😂😂😂

[@smileyeagle1021]

This is great advice if you live in an area where cheap rent is a thing or if your family situation allows you to live in a shoe box until you can afford to pay cash for a home, but for most people, it simply isn't feasible to save up enough to be able to pay in cash. That isn't to say that you shouldn't find ways to scrimp and save and do as much of a down payment as possible, and pay it off as soon as possible, and not buy more of a house than you need/can afford, but the idea of waiting to buy until you can afford to pay cash could very well leave you buying a cemetery plot and nothing more.

[@omotanwa2986]

And renting is expensive

[@deeeew100]

And the money you save looses value.

[@ShayKMBR]

Amen

[@TheSlymaster1]

Owning a house is way more expensive than renting in most cases

[@valeria-militiamessalina5672]

@@TheSlymaster1 if it is rented and the generated income covers at least the upkeep and property taxes or it cost one less to live in it then it would to rent then it is very ok but there are a lot of ifs and caveats like renters not being guaranteed, it really boils down to one's circumstances and the situation with the house itself.

[@dianecelento4974]

The only time I have borrowed money is to buy my first house. Then after 10 years, I took money out of that mortgage and bought a rental house. Then 12 years later I took money out of the rental house to buy a small house for a rental. Today I own 3 houses and don't have to work if I choose not to. I don't know how anybody can buy a house without getting a loan.

[@raheemshumate9622]

But not everyone still is born with a house waiting on them from God, you still silly

[@raheemshumate9622]

And stupid and selfish, imagine all these people who would want a piece of you.

[@jayc4715]

It's possible.. depending where you're at and how much money youre making...I bought 3 homes all cash in 5 years..I saved over half my income trucking

[@HM-ke1qm]

You should work. You owe a lot of money.

[@erniech7561]

I don’t know what is more unrealistic 1 - Making 100k a year and buying a 100k house 2 - Paying $250 a month for Rent 3 - Saving 50k a year for 2 years back to back . Where is this guy living ????? Please try to make a video with a more real situation . With realistic numbers . Thanks

[@gggallon]

My friend, your whole list is unrealistic. No one I've ever met paid-off loans quick, could save that much money, and actually have some sort of life. It's hard to earn $100,000 per year....harder to find a decent home for $100,000, and even tougher to save $60,000 a year. No one on Earth can walk an inch in the next guy;s shoes. I made peace with my debts I have now, and the ones I finished because I was making myself happy while getting the things I wanted. No one has that kind of control and discipline to save....at least, no one I ever met.

[@sychophantt]

I know those are totally unrealistic

[@DavidMunoz-pb9iu]

Ernie CH and everyone else in this comment thread, it may seem unrealistic to some others lifestyles, but with discipline (living on beans and rice) for a short amount of time this is totally possible. May I ask what you seem to be realistic?

[@dereklord8837]

Renting is throwing away money

[@airpodsmurf6175]

lol no, you kinda need a place to crash in order to live and save money until you can afford a house.

[@tuncalisecz1]

I think the comparison is not fair. How can a young, starting couple save up enough money to pay cash for a home in 2-3 years? He says math backs it up, but I don't see that. I like Dave, but sometimes it's hard to follow his advice. I would have to live on the streets and eat garbage for 2-3 years to save up enough to buy a house with cash.

[@PaolaTorres-cn3mx]

so do just that

[@tuncalisecz1]

+Paola Torres I'll pass, thanks for the advice.

[@mac1bc]

+Serdar Tuncalı agreed.

[@kzimmerman2211]

I could maybe see it working in a low-cost housing market where both individuals are making at least $30-$40K each. If they can live off one income and save the majority of the other income, a starter house could be purchased. But, yes, it would be difficult to pay the entirety in cash in many places, at least to buy a home that I would actually want to live in. :) I think saving for 2-3 years for a nice size down payment (i.e. to avoid PMI) is a more reasonable goal in many cases. Then, once you have the home, you can work on paying it off early as your income increases, but the mortgage amount stays the same.

[@SevenRiderAirForce]

Paola Torres - No, that's a stupid idea. That shouldn't even pass the sniff test. Dave Ramsey has a lot of good advice, but because he seems wedded to the no-debt dogma, he has hidden himself from the truth. This is what happens every single time you put something aside from truth first, whether it's religious or otherwise. You end up believing absurd things like living off the streets and eating trash is a good idea when you can easily avoid it.

[@fastchingon]

Rent inexpensively? Is there such a thing? Who has a grandma with a shack in the back yard that we can rent for $250!

[@nickcooke2955]

It exists, it's just usually hotel-esque with a bunch of shady looking motherfuckers about, teens, or tweakers.

[@clarifyingquestions]

Increase your income Carlos Borjas

[@JackieGrenda]

You can live with your parents for a couple of years.

[@le_th_]

@@JackieGrenda Not if your parents are dead...or alcoholics...or abusive...or divorced and married to other people...or in a nursing home, or they straight up don't want you there. There are dozens of scenarios where "living with your parents for a couple of years" is not an option, or it's an unhealthy option.

[@feces305]

Live at a 24 hour gym keep your clothes in your astro van. Do it for 5 years.

[@zvkvhs3818]

This weekend I was planing on financing a 30,000 vehicle and through your videos you made wiser and I'm better off fixing or even restoring my car which is payed for and it would probably cost me less than 3,000 to do so. When I mentioned to my wife what the new plan was she was just ecstatic to hear me say that and was like I told you so! I should listen to her more often.

[@unknown80974]

As men, it's our ego's that want us to get a new car. A coworker is paying $750 for a Toyots Tacoma. $750 is absolutely ridiculous.

[@dlakerguy]

Don't forget that while the 1st couple saves for 10 years trying to buy a home in cash, the houses keep going up in price. While the 2nd couple buys the house while it is $100k and then 10 years later it is likely worth more. Sometimes a lot more. This of course depends on what market you live in.

[@rashmux]

+Dale Couture 100K for two people saving is not going to take 10 years to begin with if they are serious about it. They might have to save a little more to catch up with the house prices, but not that massively most likely! But what should a single person do? Then this stands so true! You have to be already very rich to be able to do this!

[@thelastword4616]

I agree, Bought my home for 30,000 under the appraisal value because it needed a lot of work. So I actually built over $30,000 in equity in only 4 years by doing the needed repairs and upgrades.

[@LDT7Y]

Only if they stick that money in a 0.05% bank account or under the mattress. If they invest it then their savings will also go up in value. I get 6.5 to 8% every year with little to no effort (and none of the upkeep costs that a home requires). Even in the recession when house prices flattened (fell in some areas) I kept earning interest. My parents bought their home for about £50k in the 80s. It's now worth about £500k. Although they've put a lot of additional money into adding extensions, new furniture, decorating, repairs, etc so that isn't pure profit. They also live in an area of the UK that has gone up massively in value due to gentrification. My uncle invested roughly the same amount of cash and is now a millionaire (and bought a small house outright a few years back so has property too). So I'd argue it depends entirely on what you do with your money. If you can't invest in property then invest in something else.

[@violettippet5246]

The person who acquired a mortgage is paying interest rates, repairs, more insurance, property taxes, renovations, landscaping whereas the value of their home is keeping up with the rate of inflation. The person who is saving, could rent at a lower price than the mortgage, and invest the difference, at a slightly higher rate than inflation and the renters would be better off financially in the end. Rent is rarely ever as much as a mortgage payment. When taking house prices into account people often don't take the hidden costs of home ownership into account. It's like buying a car vs taking the bus. You could say the price of gas, is comparable to a monthly pass, but you aren't taking repairs, maintenance, parking, car loan interest rates, insurance, registration, tolls, and possible traffic tickets into account. Sure you might have something to sell, at the end after buying a car, but that doesn't mean it was cheaper than taking public transportation.

[@DiscoFang]

Dale Couture Spot on. The general historical averages, including falls, are 4% increase PA. A doubling every 10 years is often used by professionals in city areas which equates to 7% average.

[@tectons8371]

My plan is to rent until I have enough money to build a bussines that's going to generate me income, getting a mortgage is going to put you into debt and delay any business plan, successful people take risks and build business

[@johnnyinternet6310]

Not many people can save enough cash to buy a house in 3-5 years.

[@dirtymikentheboys5817]

move

[@dirtymikentheboys5817]

MOVE!! I did rent in alaska is 1800 I moved. the south 550 2 BEDROOMS! SAVE MONEY BUY HOUSE. AND I DON'T WANT TO HEAR THERE IS NO JOBS. FROM ENGINEERS TO FIELD WORK. MISSISSIPPI HAS IT! SACRIFICE NOW. SORRY. FOR CAPS.

[@drunclecookie216]

I laugh when people get on here and comment "move"... some of us actually like where we live, or there may be other factors that prevent people from moving like having family that depend on us or having trouble finding a job to relocate to... just because you say there are jobs doesn't guarantee you getting hired

[@lilylanoue]

21skye I think most people in North America make enough income to cash flow only 1 -2 bedroom condo. Not that many new families in their 30s can cash flow a house that's in the 300k.

[@dirtymikentheboys5817]

Ryan Cook Well, you cant afford the area right? Save up somewhere else and move back.?

[@TheJBMasterpiece]

You never "own" the house as long as there is property tax. You're renting from a landlord or you're renting from the government :(

[@bballbrc]

THANK YOU!!!!!!!!!!!!!

[@thelastword4616]

Property tax = $4,000 a year depending on the value of your home. Renting = same payment the rest of your life, possibly ever increasing. Stay out of liberal areas and your taxes won't be that high.

[@LTJuni0r]

+Eric w Many areas have taxes $15,000 or higher. Especially in the NY/NJ area.

[@thelastword4616]

+LTJuni0r like I said. Stay out of liberal areas and your taxes won't be that high. Lol.

[@blackworldtraveler3711]

You got to be smarter about things and think ahead. One of the many reasons I don't live in NYC Where I live we have a senior freeze for personal property tax at about 65 years. My PPT is $1600/year which is less than three days pay so it's affordable. I live in an upper middle class area.. There is a cap on how much it can go up each year as well. And I can get a 300% return if I sell my home at this point.

[@Bovias]

I took the plunge this weekend. I am officially debt free after paying off everything! I have only ever rented but decided to set aside all the money I was paying towards debt (monthly) to a savings account and bought a double wide manufactured home for $15,000. It was paid in full. I bought 2 acres of land for $2,000 and officially own a home and plan to build a house on the property in the future. It gives my children and I somewhere safe to live until our home goals come to reality.

[@Birkinbag09]

Usually I agree with Dave but I think it's completely unrealistic to save up cash to buy house outright. In UK rent is same price as mortgage especially in areas close to career opportunities. Just don't borrow more for a house than you can afford and have an emergency fund

[@brandondaniels9471]

+Birkinbag09 It's realistic. It's just that most people aren't patient enough and diligent enough to do it. I'm willing to do it, though.

[@Birkinbag09]

+Brandon Daniels hope it goes well for you

[@brandondaniels9471]

Birkinbag09 Thanks! I feel like it will. I'm still single, and I'm not desperate to own a home. So, I'd rather take a no pressure, low stress route to home ownership.

[@Alumnikiid]

+Birkinbag09 your right, but that being said u shouldnt be buying a house if you cant afford to pay rent and bills while having money go into your savings account monthly but like ppl said if u save $1000/month it will take about 15-20 yrs to buy a descent house cash, which people are not patient enough to do

[@Birkinbag09]

+Alumnikiid yeah of course the best piece of advice I heard about buying property is do it when you are emotionally and financially ready; therefore got any frivolous spending/ lavish vacations and saved emergency fund and stable job

[@jrvlvr9741]

Where are these 250/month apartments? I looked on craigslist and the cheapest I found was 100/week. How do I find the rich old lady with a garage apartment to rent? Serious question because they aren't listed here. Seriously.....they aren't listed here. Do you just go to a rich neighborhood and start knocking on doors?

[@MrRba122]

Craigslist.

[@keslyphilip4139]

j rvlvr thank you for saying that

[@matthewgarcia2119]

here in Rio Hondo tx you can get a 980sq ft apartment for 650/month and my father has a client that he rents a tiny house for 300/month

[@matthewgarcia2119]

inkey2 there is jobs in the surrounding cities which sits in a fork. so 8 min in any direction will take you to actual cities where the jobs are at. but in Rio Hondo there is not much. were about 3000 people :). that being said the question was where do I find a place for 250/month. that's why I shared.

[@matthewgarcia2119]

inkey2 oh it's a very quiet town yes. my wife was from Harlingen and she now wants to build a house here. crime is also very low. I wish we had more to do but 8 minuets and you can find a lot to do.

[@JulieHerrick]

Where is this elusive $100,000 starter house? Where I live, the cheapest condos sell in the mid $250,000 range. The cheapest single-family residence you'll find is at least $400,000

[@bballbrc]

BOOM!! BINGO!!

[@will88TFs4Life]

I think he is out of touch, or thinking of hick towns in shittown usa

[@DavidMunoz-pb9iu]

Julie Herrick Texas, you just gotta look. My town has a mix of neighborhoods ranging from million dollar homes to 400k-500k, my neighborhood which has 300k-200k, and a nice double wide neighborhood which I believe are no more than 150k. It may take longer than 3 years, but as soon as you pay off that house, you’re free and are properly earning from your income. I assume this 100k starter home is in a less desirable town, but taste is always different.

[@coddenpearia1603]

Will Morizio meanwhile us hicks in shitsville, are pocketing enough cash to do and own whatever we want.

[@danielstraight4503]

Go tiny

[@MisterMikeTexas]

$100K might get you an outhouse in today's market, if you're lucky. And there is no such thing as cheap rent anymore.

[@matthewphillips5483]

Cheap is a relative term to the area and your income.

[@juic3thetitan]

It's actually Chase that has the freedom card. And that's because they want you to chase your freedom after they own you.

[@ChalsieDivine]

I live in Vancouver, and the cost of an apartment in the suburbs is $200,000+. If we saved up to buy a house over 5 years that would be $40,000 a year, that is my entire income (after taxes), so I think this depends on where you live.

[@gtrjoe68]

Sometimes it's about the location of the home. That old saying, Location, Location, Location.

[@le_th_]

NO. Not as far as this guy is concerned because the bible doesn't talk about location being salient. /end sarcasm This guy does this because the bible tells him to do so.

[@shanedraper240692]

the problem in the UK is house prices go up faster than most people can save so you have to get on the ladder asap

[@tessc2194]

Love that Dave refers to biblical wisdom and prioritises it. Who wouldn’t want financial advice from God himself?

[@dlakerguy]

I have never seen rent cost less than a mortgage of the same exact house anywhere I have ever lived. Dave is assuming that the couple renting to save money for a house is renting extremely cheaply, like in a relative's garage or something. Most people don't have this option. For most people the question is simple: Do you pay MORE in rent for x house and TRY to save $ to buy a house cash. (Very unrealistic.) Or do you SAVE $ every month by getting that mortgage, take on the debt, but have more $ each month and then pay the debt off faster. The first couple may take decades saving $ to buy a house in cash. Meanwhile, the 2nd couple spent less $ overall and had the house paid off before the 1st couple ever got their house.

[@jonathang6534]

Dale Couture You can't tell me that a mortgage payment plus homeowners insurance plus property taxes plus maintenance is less than rent and renters insurance for similar properties.

[@no_peace]

It often is where I live. They're making a profit.

[@anneraso5621]

Rent in high end markets like New York is a lot less than your monthly payments with maintenance and taxes, especially using the standard 20 per center down payment.

[@NoRegertsHere]

Rent is much cheaper than buying in most places in Australia. It swings around the other way when the property is 2-3x the average wage in price or lower

[@lilylanoue]

We should all buy land and live in tents

[@Sophie-ge7ti]

susan xD that will not end well for people in Minnesota with kids. babies frozen dead.

[@WhiteKitta]

but its way too hot to live in tents in California.....urgh I hate it here.....I want to move out so badly....

[@davidgomez5116]

How about one person owns the land and rents to people using teepees or tents like one huge campground that gets income for upkeep...

[@prittyugly86]

Hey everyone seriously down hmu

[@jdicari9534]

my friend bought a 5k piece of land and a 3k camper.. lives happily ever

[@Jordan-nj2ve]

I paid cash for my 2015 CR-V Touring and not only does it feel good to have a new car, but it feels amazing to have zero car payments!

[@Billuhhanks]

wish i had that much $$$ laying around

[@plunkettjbrandon]

get out of debt, save money, and don't get back into debt, and you can...

[@BoogerDeluxe22]

cool blog post bro!

[@dedalliance1]

A car is a lot cheaper than a house.

[@Blue-kz3vf]

Now try doing the same thing with house lol, then let us know how long it takes you.

[@KurtGodel432]

The word 'mortgage' translates from the French "death pledge" for a reason!

[@beautifulsweethrt3347]

+Juan Primos lol

[@CoolBeanSquadron]

+Juan Primos it actually translates to death bet and we use the word Hypotec to describe a loan for a house.

[@CatholicTraditional]

"Death Engagment"

[@nocoolname32]

for me and my rental properties it translates to "second income" :D

[@workingshlub8861]

me too..i could pay off my investment property in 10 years if i put all my cash flow towards principle on the mortage.

[@gigi8528]

I never understood how people could think that getting a mortgage loan from a bank makes them homeowners. If you owe the bank then that home isn't yours until you are done paying it completely. I leave stuff like this to the rich folk because I'm not getting a mortgage LOAN on a home unless I'm worth 200k or more.

[@kaohsiung99]

Yeah, if the bank says you "own" the home, that's just to release them of any repairs & taxes!

[@inkey2]

depending where you live getting a mortgage can be hundreds less a month than renting. That was the case for me

[@MsJubjubbird]

You have the rights over the land and the building though. The bank can't come in and paint the walls. Once you have more equity than debt then you're good.

[@davidezra9331]

Gee Cee you said the honest truth, the illusion of owning , even if pay off my property I don’t truly own but at least I pay less monthly without a mortgage

[@davidezra9331]

M C Taylor yes since the bank owns the home they should upkeep the repairs until the house is mine !

[@colinsznaider-thepolishcom7061]

30 year mortgages are a bad deal. Depending on the interest rate you pay, by the end of 30 years you've paid the bank back nearly twice what the house was worth.

[@TheRamseyShow]

Thanks for watching everyone! Now go visit the Rachel Cruze KZbin Channel for life and money tips. kzbin.info

[@kebandrews7076]

The Dave Ramsey Show I've heard DR say this now four times "If you had $100k and bought a $100k house". Why on earth would anybody spend all of their money/house savings and pay the house off completely? That's incredibly risky behavior as what if the market tanks or they build a Walmart next door and the house becomes worth less than what you paid for it?

[@kebandrews7076]

The Dave Ramsey Show You're better off putting down what you can afford and find something that you've done plenty of research on that is either 1) a sweet deal or 2) will most certainly increase in real value over the long haul.

[@blackworldtraveler3711]

Keb Andrews It's all about location and knowing the area.

[@plunkettjbrandon]

There are several ways to rent cheaply, One way is to find somebody who has a room to rent. Which may be difficult depending on where you live, but not impossible. Or, find a couple of friends that you can go in on rent with. I know where I live, finding a 2-3 bed house for rent between 650 and 750 a month is absolutely possible, they get snatched up quick, but you can find them. The reality is, if you're expecting to find a house to rent for cheap, by yourself in an area that is really nice you're going to fail. His saying holds true, "Live like no one else, so later, you can live and give, like no one else." It means you have to be willing to bite the bullet and live somewhere that may not be "ideal" so that later you can potentially live in a home that is 100% paid for. It's not a difficult concept. The difficulty comes in having the self control/discipline to actually follow through, and save.

[@intractablemaskvpmGy]

First of all the landlord pays for taxes and maintenance and repairs like replacing air-conditioning, plumbing etc. And as a renter you can always leave at the end of the lease scot-free. At a minimum with "ownership" normally one also has to figure in mortgage interest, property and school taxes, appliances, maintenance, repairs, lawncare and insurance. If you calculate that out it's quite a lot more than than the headache-free standard rent on a 1-2 bedroom apt. And yes the property as an investment can "appreciate" in value but it can also go down. A person may want to sell their house but that can be difficult and even great properties can stay on the market for many months leaving the owner stuck. Also, people usually only care about their "monthly" mortgage payment amount but don't figure in how much they are actually paying in interest over time: depending on interest rates a 30 year mortgage can potentially cost you three times what you thought you paid for the property. Most locales won't appreciate that amount so in reality it isn't an investment but a net loss. And if the appraised value goes up so do the taxes! Even if one owns the property outright and sighs "whew-what a relief" they're still shelling out a significant amount of cash just to live there. Financially for many it's a terrible decision but many folk have this erroneous idealized vision of what home ownership is like.

[@hechristie]

Or this is what I’m doing: I bought a home and live in it, I rented out the spare bedrooms for about the same price as the mortgage. I don’t pay rent OR the mortgage because my roommates do.

[@alonreid]

Renting is fine, until you've been renting for 15 years & the homeowner or landlord tells you to vacate the property. Now you're homeless.

[@programking655]

Then you rent a new place

[@kiomyarce265]

I respect your view on many points, but due to inflation it’s almost impossible to rent a house or anything under 1k if you do find something cheap it’s in ghetto where your home will get broken into and it will bring more problems than living in a better neighborhood with less break ins and better school systems

[@hitchjack]

“I personally never borrow money” yeh... because you’re worth $55M

[@chubychan269]

faceapalm! read his book

[@elisoriano7511]

Smh uninformed

[@markjackson3894]

Dave's math doesn't work, though, at least in my case. I bought a place 8 years ago with a mortgage, and its value has roughly tripled in 8 years, and meanwhile my interest rate is 2.1%. NO FREAKING WAY I would be able to own the place today if I'd waited until I had the cash; I would've fallen further behind the goal of ownership every year. (By the way, I live in Hong Kong).

[@SevenRiderAirForce]

I've noticed that Dave is adept at math jargon. Math itself, not so much.

[@thetruthnothingbutthetruth8338]

you should have your own talk show

[@PaperweightBoxing]

Your house tripled. That's great for you but you can't expect everyone to wager the same. Your house is still less than three times what another home will be in 8 years if you bought it today with everything that you've put into the home you have.

[@LittleHatori]

Hong Kong?! 🤩🤩 很好!!

[@opteliv8077]

I bought my home 3 years ago, the value has almost doubled and I have spent almost zero money maintaining it. Doing the math. If I sold it today, dividing my net gain by the time I've been here. I've been getting paid almost 3k a month to live here..... sure beats rent.

[@TankAssTanner]

Who can rent an apartment AND pay cash for a home after 3-5 years of saving? Especially younger people. This analysis isn't based on reality for 99% of people.

[@nicksmith1363]

Smart people! I wasted over $100k on cars between the age of 18 and 25, with out a degree and working a regular job. I moved out when I was 19 and went back to school at 25 with no loans. If I wouldn't have been an idiot like most people that age I could have easily purchased a house in 3-5 years. I recommend all kids get a job and a bicycle or used Toyota Camry before graduating High school. Forget a 4yr degree or fancy car until you can afford them.

[@TankAssTanner]

For most people it isn't because they are buying a fancy car and blowing money. Most people, especially kids starting out, just dont have the income to both pay for apartment rent and save enough to pay cash for a house in 3-5 years. Unless you are living rent free with parents, it just isnt realistic for most people. Maybe you can squeeze together a down payment, but yea. You would need a pretty high income to accomplish what is being talked about here.

[@saxywale2]

Thats because smart people are in the minority the same way millonaires/billonaires are in the minoritym

[@jjay75]

It's really pretty easy to have a moderate income of $30-40k, save half in cash per year, and buy $100k house after 5 years.

[@TankAssTanner]

@@jjay75 Lol ok. One, good luck living on only 10-20k total a year like you say (and this is not even accounting for taxes) and two, good luck finding a house that isnt in total disrepair and/or in a crime ridden area for 100k. This isn't 1975 anymore.

[@Svargasc3]

I think he gave those numbers as an example. If you’re super commited, you can do this. I have a friend that did this. Lived on 1 income, sold everything like couches chairs cars, saved everything and invested and now they’re rich. It was worth it and it only took 2 year of living like that and rich at 5 year mark

[@sonichedgehog2861]

If you make 100k then you are above the average income. Come on man.

[@iheartlreoy8134]

raymond ayvaziyan so save up for 5-10 years then, you’ll still be better off in the long run not having a mortgage

[@Louie9000]

@@raymondaz8145 that's why you need to live in a van or a car put a small electric cooker and a fridge in there then you can save loads of money and in a year would have enough to put a deposit on a house for yourself. (You could even get solar panels for cheap aswell) if you chose a car it would be harder but it would still be do able you would just have to use an extremely small fridge and just use a portable hob to cook everything on (you can get them for around $15-20)

[@workingshlub8861]

remember property taxes and insurance also go up.. the bank gives you the principal and interest payment dont forget taxes and insurance ..water and sewer etc. gotta have a cushion if you own a home.

[@lamisharochelle]

I agree. When owning a home you need to have enough for the mortgage payment, property taxes, and home insurances. Also, these are debts. I am not against owning a house or mortgage but a person needs to live in his/her means.

[@ineedhoez]

And the rent goes up every year as well. You are already paying about a $200 difference in renting versus owning. Also remember, that these people who are buying the houses and saving, are still going to buy the house. It's not a conversation about renting your whole life versus owning house.

[@royaldee400]

I live in New York city how Am I suppose to pay cash for house that's $360,000 to 400,000 ? And that's a cheap house. It would take me 20 years to save that much. This idea of buying a home cash doesn't work in every city.

[@drunclecookie216]

that's why I could never live in or near a city... the cost of living kills you... I live in a rural area and paid $60k for a 1300 sq ft 3 bedroom 2 bathroom with attached 3 car garage with separate 2 car garage converted into an efficiency apartment... and in 2012 I got it appraised for $86k... most houses around here are $100k or less

[@MAG-hv9qj]

Royal D Find a way to increase income. invest in yourself.

[@Billuhhanks]

where do u live????

[@pamperedgurl]

This is the reality of many homes in the upper North East. I think he is talking about homes in the deep south and west.

[@will88TFs4Life]

there are houses in NYC for 360,000?!

[@StephanieBogart]

Here in Dallas, renting and buying is the same price monthly and in most cases, it's more expensive to rent :-/

[@NeoMoses]

It depends where you living I saw in Fort Worth allot of good prices for single bed room apartments

[@StephanieBogart]

+Moses D we are over an hour away from Ft Worth. A friend is looking for a one bedroom apartment and everywhere she looks it's more expensive than my mortgage payment :-/

[@NeoMoses]

+Stephanie Bogart that's true if your not single and married you should be fine if it's two income

[@Birkinbag09]

It's the same in UK overall it's cheaper to buy property because if the mortgage is on fixed rate you will pay the same. Renting increases every year as greedy landlords put up prices. So although it's expensive to buy with down payment and legal fees it's overall better. Sometimes I think Dave in unrealistic with his viewpoint not everyone lives in a cheap area.

[@MilanBroz]

+Birkinbag09 Not true, I lived in Bornemouth and even though it is a tourist area, you can still find a cheap rent and save money. On top of mortgage, you also need to calculate other expenses.

[@ValentinG23]

in some cases the in the 4-5 years you wait and save, the house that you waited for got 30 % more expensive!!

[@KoarngeSound]

great advice! all i have to do now is find a job where i make $100k and find an old lady to rent me her garage for $250 a month

[@scevans8756]

Save to buy a house outright in 3 years??? Yea, right. I don't agree with this one.

[@maxrice6990]

I just bought a house and paid off my car after a year making $30k. The key was moving from Los Angeles to Indiana. It's remarkable how cheap it is here. Granted, I also don't have kids and I don't really spend money on anything besides the necessities.

[@nisuperman]

@@maxrice6990 Basically don't have kids or get married. Is that a solution?

[@luisleduc7222]

nisuperman Duhhhhh!

[@Ryan-ep8yu]

@@nisuperman stay middle class. You don't have to gain wealth. He's explaining how to become remarkable. Which does require either luck or sacrifice.

[@antvids05]

​@UCfD8sUq9GXzZCEdHIgGW9aQ I regretted leaving Los Angeles to Texas to do exactly what you did. I don't have kids and I'm not married, but with all the random fatal tragedies this year in the US I missed my family dearly every day and moved back to Ca. It's tough to try and be patient out here but in my mind EVENTUALLY I'll have a paid off roof and wealth by giving up 10 more years of life to add onto the savings. And at the same time eventually I won't have my family. Many people don't see this when they first set sail just like it hit me. I felt like trading 10 years of life was worth grinding the home state out for. Just wish Dave Ramsey would provide high cost of living practical tools.

[@gillslit]

I love listening to Dave because he has such conviction. Most of these convictions make a ton of sense, but this ‘no debt’ conviction does not resonate with. I’m much more in the ‘rich dad, poor dad’ camp on this. Debt, if used wisely, is one of the key wealth building tools, especially for those without an initial abundance of capital.

[@CarbedVeganVixen]

Rich people use debt to get richer all the time. Having debt and using it in a smart way is not dumb at all. If you're using debt just to buy liabilities and not assets, then yes, that is dumb. Where I live, mortgage interests rate are very low, so you're actually not paying the bank much over the life of the mortgage, and if the property increase in value (have to buy in a good market) then it's a good investment. You can also leverage the increase in value of the property to get very low interest loans. Say the property value goes up $10,000 in a year, you can get that $10,000 from the bank at the low interest rate of your mortgage and leverage that money to make more money for you (assuming you do this and not just blow It on consumer goods of course). Again, it really depends on what market you're in and what the bank is offering but rich people use debt to get richer all the time.

[@MoonLiteNite]

I saw the housing bubble coming in 2007. Making 8$/hr + tips (so maybe around 10$/hr) I really wanted to buy a house while i could... Had around 20k saved up, started saving when i was 14 or so, and put that money down. Now just around the age of 30, i am almost done paying off the 180k loan... Having 2-4 roommates greatly has spend up paying this thing off, i love it!

[@LDT7Y]

Timing is everything. Well done for being born at the right time and taking advantage of that opportunity. First was luck but second was good economic awareness. Nice one! : D

[@blackworldtraveler3711]

Christopher Banacka I saw it too after seeing the tech bubble. People were getting stupid. Spent almost 2 years looking for a cheap second home and found a great deal. Also bought a lot of cheap stocks and ETFs that nearly tripled in 8 years.

[@elliotb92]

Christopher Banacka isn't it awkward being 30 and still having roommates?

[@erikaerika7788]

Elliot Brooke nop,,its smart

[@forgedabouted]

Elliot Brooke He had to humble himself big deal it worked out didn't it ?

[@TKr9491]

Thing is who can save that much money to purchase a home? I'm singl living in So Cal, how can I save 50k as a down payment? it's unreasonable.

[@blackworldtraveler3711]

kirvyk Move.

[@TKr9491]

BlackWorldTraveler if your offering to pay for relocation and a job transfer I'll be glad to.

[@TKr9491]

Your bitterness and implications are not desired. But with an attitude like that you'll get nowhere.

[@joesillamanrs7189]

no one wants to move to the boonies lol

[@Taj-Mahal]

+Joe Sillaman RS exactly..there's a reason that it costs nothing to live in Tulsa 😂😂

[@dahbajanman7044]

Renting would have been the correct thing to do maybe 4 years ago, but not now. Where I live, a two bedroom is averaging $1400, but I received a mortgage quote with a monthly payment of $1000. My mortgage payment will not increase, but rent keeps increasing.

[@christianmetalpwns]

I'm not an expert in being a house owner but don't you have to pay for home insurance, property taxes, and other bills along with a mortgage?

[@blackworldtraveler3711]

+christianmetalpwns Yup.

[@inkey2]

That's true Christian......but here are the advantages (1) as long as you pay the mortgage/taxes you can never be kicked out, (2)On a fixed rate mortgage your monthly payments can "never" be raised (3) Once it's paid off you are on easy street (4) "appreciation of the property". Generally, but not always, their can be decent gains in the value of the property.

[@Blue-kz3vf]

To that 1k/month add about $200-$500 in property taxes, mortgage insurance(s) HOA fees (if applicable) before you take your decision.

[@Evankaspar]

This is one of the few areas where Dave is 100% out of touch with reality. Interest rates have been at an all time low for the last number of years. Maybe this advice made sense in the 80's when interest rates were ~17% but not when you can get a 15 year loan at 4 or 5%.

[@bryantvanfossen8099]

I understand what you’re saying, but please keep in mind that God’s word is never out of touch with reality. He says it for a reason.

[@SayelorYT]

@@bryantvanfossen8099 I’m confused as to why you brought up God when discussing Ramseys advice? Are you saying Dave is like God, all knowing? “He says it for a reason”, okay what’s the reason?

[@ArtbyMagic]

You Dave Ramsey are a voice of reason and only sound advice in the dense forest of the poor financial advice. There is a lot of us you influenced over the years. Thank you!

[@Shanmammy]

My mortgage stays the same. My friend rents and her rent goes up LITERALLY every single year.

[@thedude8526]

True, but you also have to pay hidden fees like maintenance costs which can be a major cost if something like your HVAC breaks. Then you also have to spend your time maintaining the property every week which also equals a loss of freedom/money. Theres pros and cons to both.

[@oddtaff5415]

When you buy a property on a mortgage you are entering into two linked transactions. The first is that you acquire ownership of an asset which may go up in value during the time period of the mortgage but requires maintenance and insurance during that period. It’s also illiquid you may not be able to sell it quickly and in the short term you may even lose money. The second linked part is the liability to pay the mortgage with interest. I’ve always considered the interest to be roughly equivalent to rent. You are borrowing the money to enable you to live in the house today rather than having to wait until you have saved sufficient money to buy the house outright. With these two linked transactions taken into account the decision is a question of how you predict the future. If the cost of the monthly mortgage payment plus the ongoing cost of owning, maintenance and insurance is less than that of the rent it’s probably wish to buy. However this wouldn’t be sensible if you were going to have to relocate within a short period. Even if the overall cost of buying is higher, if you can afford the cost and you intend to stay in the house long term it may pay you to buy. The additional cost is effectively a saving plan since as you pay off the capital your net worth increases by that amount. It’s about timing. Renting can be useful if you need to move often and it has the advantage that you are not liable to the long term commitment of a mortgage however you are also not building up capital unless you save cash.

[@Dremin2009]

It all depends on if you can find a place to rent cheaply enough. I rented for a couple years then bought a house with a 20% down payment and it will be payed off in under 5 years (total time), which is pretty good, but if I could go back I would have rented a bit longer for sure. I just don't like the feeling of owing money at all, and the slight possibility of losing my house if things went really downhill in my life. Just having a mortgage added a feeling of uneasiness that I had not considered when making my choice.

[@bballbrc]

BOOM! BINGO!

[@1sttimemom76]

Why would you feel uneasy paying a mortgage and not rent. You could still lose everything and end up on the street.

[@everythingburger330]

What if it goes down hill when you're renting? Maybe loose your job get evicted? Pretty much same thing lol.

[@Moriningland]

If the average house is 200k, that would mean you'd have to save over 3k per month for five years. Imposssble. I'm a nurse and I only take over about 3400 a month IF we have enough patients for me to even get all my hours. This is assuming that you have close to zero other expenses. Their MAY be a situation where you could get rent below 500 (250 is just insane) but that's a very big stretch. I like Dave but creating scenarios based out of unrealistic hypotheticals doesn't work.

[@gurutruecrimeguru1405]

The average price of a house in Auckland New Zealand is 1 million New Zealand which is around $690,000 US.

[@randomness5074]

So say you could save 1500$ a month from your $3400. That's 90K Saved in 5 years, without earning any interest, investing it etc. So if you bought a 200K house, and put 90K down your Mortgage payment would only be about $500 for a 30 year, for a 15 year it would be almost $800 figuring at 3.5%. What are you paying for rent right now? I would guess more than $800 of which you'll never see again. So imagine how fast you could pay the other 110K off? So it's impossible ?

[@zeon606]

@@randomness5074 Cant forget property tax, homeowners insurance, and renovation upkeep. But, at the end of the day, you own the property. That being said I'm on your side.

[@saxywale2]

@@gurutruecrimeguru1405 i hope your earnings are also on the high side in New Zealand

[@christofl6523]

Dave is giving terrible advice.

[@timelapse3828]

Save money..wait for the market crush and buy yourself a house. Meanwhile you can try working extra hours, living with roommates, and saving money in every possible ways.

[@erichaynes7502]

thank you for saying this..yes, buy a house when the market is hurting..usually it takes awhile for the housing prices to drop(1-3 years once the recession begins) but just pay attention to the overall economy and unemployment rate..if it's trending downward just wait until you're confident it's pretty near the bottom and that people are selling houses cheaper. Like right now I think it's near the top of the market, you might want to save for the next 2 years(at least) before buying a house. I also suggest staying away from 30 year mortgages and if you can't pay cash then either wait or at the worst get a 15 year mortgage..if you do the math you'll see you'll save TENS or maybe HUNDREDS OF THOUSANDS of dollars this way. Finally, make saving a habit for the rest of your life.

[@jfresh2054]

Wish I could work ot. I work for the government and we can't work OT. We have to flex days

[@bballbrc]

most people cant afford to wait. Most people cant save up enough for a good house in a good area within a 10 year span

[@forgedabouted]

Anyone can save money. I lived in a van for a year showering at gym twice a day. I am able to purchase now. I'm holding off so I can get something nice rather than rushing to get out of a van. Nobody knew what I was doing. Good luck people.

[@youtubeyamiyibi5023]

forgedabouted you are wise

[@missdesireindependance5194]

Congrats! Hope you can buy your home.

[@martinwanswettjacob5979]

Awesome Financial and spiritual advice...God bless you

[@iamjulia_od]

Amen! God is the final authority 🙏🏼

[@unashamedforevermore6177]

Amen and Amen!!!

[@indman101]

Rent is also debt and in my area it's much cheaper to own then to rent and rent has continued to go up because the county has raised property taxes which has been passed down to the renter.

[@G5Hohn]

As an owner, you are paying those taxes, too.

[@indman101]

GodGunsGuitarsGadgetsGovernment big $400 Dollars a years much cheaper then rent around my area any day..plus I have solar so my electric cost is cheap as well.

[@sarrahconley3923]

+John Doe yes I think mortgage was better for me than an apartment. My friends and siblings could afford my house payment more they could even a cheap apartment.

[@indman101]

Sarrah Conley Conley was my Mother's maiden name....off topic but..

[@sarrahconley3923]

+John Doe lol it's my married namr

[@rodhigh7]

I bought a house 20 years ago for $100,000 cash and now it is valued at $250,000. Property taxes are $1000 a year and I have been retired for 20 years...

[@Jimmy-ph8xn]

If you rent a box, then yes. If you rent the equivalent size sq ft/quality house then it’s better to buy as long as you’re aggressive about paying it down. You’ll pay more in rent than you will in interest saving up for the interest free method. You can always sell a house to get out of debt and 9/10 times end up pocketing a profit vs renting.

[@220volt74]

"I personally would never borrow money". - says the guy who is worth 55 million dollars.

[@donbarracuda546]

Simply ridiculous. He fails to recognize that he is far from being average.

[@danielmunch4413]

Maybe he’s worth 55 million dollars because he doesn’t borrow money

[@donbarracuda546]

@@danielmunch4413 Haha he did not get that rich simply by not borrowing money - just as you don't become an F1 champion by simply not crashing your car. Besides, there are just too many possible situations people can be in for such a generalisation to be considered valid. And sometimes it takes borrowing money to make more money! In summary, Dave's statement is not relatable or even reasonable and neither is yours.

[@danielmunch4413]

@220volt74 I did not mean to insinuate that the only reason he got Rich was not borrowing money. My point is that his financial principles including not borrowing money are most likely what got him to be so rich. Your original statement makes it sound like this is a philosophy only a rich person could have and that he’s out of touch, I disagree, I think anyone can have this philosophy and be successful,also I want to acknowledge that I understand that are many different financial strategies that work for many different kinds of people and if you want to borrow money go ahead but Dave’s plan is the only way to acquire wealth with zero risk.

[@Foreverfreeusa]

Zero risk?? And if the market goes belly up, so to does you wealth. Zero risk only exists in fantasy land.

[@SK-xc7pc]

I'd like to hear real numbers. Cheapest rent in our area is $1600/month. And, the average starter house is $250,000.

[@DiscoFang]

Here's the math that REALLY answers the question: Bottom line: Saving will cost you $110,000, Mortgage will cost you $106,220 The factors: $100K house; $100 income; ability to save $50Kpa; Rent $250pm Whether you (R) Rent and save or (B) Buy a house with a mortgage, there are several fundamental differences to consider: 1 - Option R has the rent cost on top of the saving goal of the house price. 2 yr total of $6,000 = $3,000pa 2 - Option B has the loan interest on top of the house price at approx 4%pa, Total over 2 year mortgage = $4,220 = $2,110pa 3 - Option B also has insurance, house maintenance and city taxes. Lets assume $1000, $1000, $2000 = $4,000pa 4 - With option B the rent you would have been spending in R can be added to your ability to pay $3,000pa which actually pays a chunk of the annual expenses so we'll deduct that $3,000pa from B's total. 5 - With R & B we can resonably assume a historical average of 4% capitial/equity gain in house price per year. Lets make it 2% for safety = $2000pa Right. So at the end of 2 years we have: R rents, saves for 2 years, buys the house at 2 year later price of $104,000. Add the rent they've paid $6,000 for total of $110,000. B buys the house for $100,000 pays 2 years interest and ownership expenses, also pays down with the 'rent' they had spare and owns the house having paid $100,000 + $4,220 + $8,000 - $6000 = $106,220 Hmmm so, Dave, the figures actually illustrate the opposite of what you say. Even having the benefit of what some people are seeing as an unrealistic $250pm rent from some magical old lady benefactor the figures STILL don't stack up for renting. To work it out with different rental figures just add them/deduct them respectively from the outcomes above. The gap grows wider with every $. If you pay a more realistic $400pm (extra $150pm = $1800pa) the figures are R:$113,600 vs B:$102,620. Option 'Buy' is $11,000 better off! Daves' justification for his answer is simply wierd. He skirts the math because the real math using real figures actually shows the opposite of what he says. Unfortunately this conflicts with his view, which he claims is the Bible's and therefore God's view. What? Excuse me? What is going on in your head? There's the figures above, you decide which option is more godly... Comments?

[@will88TFs4Life]

the math makes sense, but the example doesnt. It assumes you make 100 grand and are able to rent for 250$. Who can actually do that?

[@rosen380]

Watch the video -- Cassette Walkman took it straight from Dave's mouth.

[@levedia]

And that is if you can buy a house at 100k if you save. Just to save 100k in 5 years is tough for avg incomers. Where is he going to buy an 100k house to some 100 people max village ? with far away from potential jobs ? You know what it is back then when interest was high you were better off saving cause you were making 6-7-8 % if not more of interest from the bank. And thats what Dave did but those days are gone.

[@Bissy291]

Honestly , you can rent and buy at the same time . Since you can't move from NY cos of work. You can buy somewhere else that is far cheaper and rent the house out. That's the only logic to solve the argument in the comments section.

[@del_84]

Median price in sydney australia where is i live is a million bucks and house values double every 10 years roughly. Dont think renting cheap out the back of some old ladies place to save up enough money to buy a house in cash is possible for me.

[@luisal269]

I'm in Sydney too and it's most definately cheaper to rent then buy right now. Besides, auction clearance rates and prices have started falling past couple months due to tighter investor loan regulations, due to the massive prevalence of interest only loans in Australia... I really wonder what Dave would say about interest only loans... not good I imagine lol

[@Birkinbag09]

Same in London totally unrealistic

[@masonmickle6317]

+del down side living in aus im in wa i just cant see how any of us can buy a house in cash

[@SweetTea742]

+del It's the same situation in Trinidad and Tobago, insane housing prices. A basic "starter's house" which is a 2 bedroom flat, is over a million dollars!

[@jennym007]

Yes, I'm in Australia, I know what you mean. It would be nearly impossible to save the cash, and even if you did, housing prices just keep rising so you would have to save until you die.

[@josephsworldoftaekwondo5059]

I am a single mom who purchased a car in 2012 following the birth of my son. I traded in my luxury Infiniti SUV for a used 2011 Ford Explorer. I paid cash on-site. I still have the Ford Explorer. It's the first and only car my son has known since birth. He still thinks it's a cool ride after 8-years. It looks as good today as when the day I bought it. Words cannot describe the JOY and FREEDOM it's been to live 7 years installment free. Even better, is the lesson my son learned in how to best use money and care for your investments for maximum gain. I happened upon Dave Ramsey in 2019 in a You Tube video. I've been hooked ever since. The bible says "test me in all things". Ramsey's advice is biblically sound and practical. Put his advice to the test. If you're here reading, it's for a reason, what can it hurt to try something different. Keep doing the same thing and you'll keep getting the same results.

[@kyratompsett4409]

I had a rent payment of 275 a month, trying to save up for the deposit on an apartment. However, I was living in a two bedroom planted mobile home with nine other people. No way I could have lived there long enough to save up for a downpayment on a house or condo. I would have lost my mind first

[@paulastrachan4053]

We've owned two homes, both modest, previously owned homes about twenty years old when we bought. We only rented for the first six years of marriage, then bought our first home with low down payment on FHA guaranteed 30 year mortgage. After the term was about half up, we wanted to move to a semi rural area and put all the profit into a 15 year conventional mortgage on the place we are in now. We own it free and clear. Our parents always advised us to own a place before retirement and I'm so glad we listened. We are comfortable in retirement because we have no rent or mortgage. I set aside one twelfth of the property tax and home owners' insurance each month so it is ready to pay when the bills are due. The amount is very little compared to current rents. People on here seem to be mostly discussing new homes. It is much more reasonable to buy an older home.

[@jordancookie7864]

Let this be a lesson to you parents. Pay your mortgage and save your house for your children or grandchildren so they can get an inheritance. Imagine giving your children or grandchildren a home when you pass away. They will only have to pay the taxes and utilities and never have to pay a house payment. You are setting them up for success and no one can complain about paying cash for a home.

[@rashmux]

+Jordan Cookie Put that nasty inheritance tax on it and they are broke again! haha.

[@eclpzlvr97]

+Rasma Bluzmane A good percentage of states do not have an inheritance tax nor an estate tax. And even if the state does have such a tax, there are tons of exemptions and value thresholds that most won't exceed. So, most people would be just fine. taxfoundation.org/blog/does-your-state-have-estate-or-inheritance-tax

[@lucasgeurden1621]

I wholeheartedly believe that "giving" anything to a person devalues the object. Make people earn it, even family; they will appreciate it 10 fold.

[@rosen380]

How many kids and grand kids do your parents have [or will they have at the time they likely pass]? Probably enough that they wouldn't want to all share it unless it is a tenement :) And by the time they pass, their kids will hopefully be in their 40s/50s/60s and have likewise arranged for their own housing already. Some of the grandkids will still be in grade school or off at college, but even if they're older, they might not be interested in living in that area or even living together. More realistically, if you have a paid off house it is just an asset to be sold when you die. If that is what happens, then great, your heirs get a nice check. If you didn't pay off your house, because you decided investing made more sense, then same deal, the heirs get a nice check.

[@DavidWilliams-rk1nq]

How about owning a business ?you need to borrow money. I don’t know of any business person that doesn’t borrow from the bank. The key is to ensure that the business is solid

[@leezyjeff99]

borrowing money from the bank is stupid... theres is so much uncertainty in a business... why would you put the stress of a loan from the bank on your shoulders as a young entrepreneur. Your business can succeed or not the bank doesnt care they just want their money back

[@lukemaeser8866]

Why would you assume the rent is low?

[@MikeRosehart]

Paying cash for real estate property is a terrible return and a bad recommendation.

[@AngieKoh197]

The bible says the borrower becomes a slave to the lender.

[@Myproitsolution2007]

+Angie Koh The bible also commanded the genocide of thousands of people, the bible also shows where god exterminated people because he wasn't happy with his creation. I don't believe everything I read. Math is math, I don't need the bible to tell me a $300k home on a $150k income is a good idea. It all depends on what people want out of life.

[@Moriningland]

It also says to stone people who work on Saturday.

[@krukov100]

also says don`t eat shrimp and that women should be silent

[@HonzoRich]

Angie Koh Didn't listen to these hubristic people who spend time hating a God they don't believe in...srsly 😔?...who don't actually read the Bible, take Scripture out of context to attack God's followers, and use their mockery in place of morality. Pity them, pray for them, and follow God. God's Word has all the answers for life and Godliness. Be blessed 😀.

[@SevenRiderAirForce]

I used to be Christian. Then I read a bit more of the book that had been selectively edited out on Sundays. If freeing slaves, eating shrimp, and laying off the genocide is "mockery" instead of "morality," you can write on my tombstone. Nobody attacked God's followers, people simply cited the Bible.

[@Skypost4ever]

This clip just answered many questions. I've known about Dave Ramsey for a long time and most of my family, friends, and co-workers have done some sort of "class" of his, but I've never really watched or listened to him before now. I've always had the mentality of not buying anything unless I have the money to pay for it. I bought my car in full and I'm glad I never had to have a car payment (other than the initial purchase) Started looking at houses but after hearing what Dave said about buying a house it's not within reach yet, so now I'm looking to rent a cheap apartment. Hopefully close to work so I can save some money on gas.

[@Many-Hats]

Ok so if I want to buy $250 thousand dollar house you want me to save to pay for whole thing in mean time rent the whole time?That will take 15 year saving aggressively

[@PaperweightBoxing]

No one asked you to buy a 250k house. As an example, assuming you and your husband rake in $100,000 a year (why else would you need a house so expensive), you can very well live off 50k for five years and and save up 250k. No it's not easy, it's not fun and waiting to have children helps. Or you're just looking for a house out of your means.

[@NeverSayNeverCreations]

You think 200K is extravagant to buy a house? Pssh, in my area, you are lucky to get land for that.

[@PaperweightBoxing]

It can be in this beautiful state of Texas. Bottom line: You don't have a right to live anywhere you want. You need to do what it takes to survive - even if that means living to your means or moving to an area you can afford.

[@kelseyh3996]

Right? You could be paying down that house instead of giving Your landlord nonstop money. Makes me think dave has a financial stake in keeping renters renting.

[@PaperweightBoxing]

@@kelseyh3996 Housing is an expense like any other. You spend "nonstop money" on food don't you? Now imagine buying food every month, saving extra "meals" for 5-6 years, until eventually you have enough to feed your family for the rest of your life (i.e. a forever home) - never having to step foot into a grocery store ever again.

[@steaktastebetterpill]

I was renting at 1k / month, making 45k / year for two years and some change. Not a good situation. Somehow saved up for a downpayment and just got my own apartment with a 212k mortgage. Hope to be rid of it in 13 years. I know for a fact the apartment will go up in value over time.

[@Iloveak123]

I would rather pay for my own mortgage than someone else's mortgage, at least when I sell my home I can get something back. Can you get your rent money back when you move out? I don't think so.

[@christofl6523]

You also don't have to drop tens of thousands of dollars just to get the keys for a rental. Renting is paying for a good or service it is not wasted money just like paying for food is not wasted money.

[@rhysherbert8569]

This advice did not age well for Dave.

[@cobus8870]

I'm sorry this guy is talking about people that pay tons and can save for a house in 5 years he is not looking at the average guy that lives month to month...

[@Ken-iu2zp]

Cobus true

[@DavidMunoz-pb9iu]

Cobus beans and rice sir

[@lindavel43]

@@DavidMunoz-pb9iu Yep. That's how I grew up. Thrift store clothing, but we could afford Disneyland every 2-3 years. I'm going back to beans and rice, to save for a house.

[@joels9172]

Buying a home with cash is the most expensive way to buy it. If you have 100k to buy a home why not pay 4% tax deductible interest and invest it where you make more than that

[@israelsantiago5069]

it's easy to save when u making more than 6 figures

[@arthurmontano9548]

False, if you make over 30k you can definitely save. But people making that money want new iPhones, drive a car that isn’t older than 5 years. Etc etc

[@ejfisc]

Arthur Montano depends on where you live. $30k is definitely not nearly enough for a lot of cities

[@be4unvme]

lol 30k is min wage

[@omaramage8990]

We make more than that we don’t have s new car or Fancy phones or fancy anything BUT we do have medical bills... that can do more damage than any car or phone. Speak with compassion. You don’t know what others are going through.

[@tmston2]

yoy can probably sav more if u are making 6 figs or more, but u still can snowball your saving on $30k. when i was 19 i typically always had between $400 to $800 in my checking account and that was with a car and car insurance payment. I love seeing my money in my account more than i liked new stuff now my oldest son is 19 makes triple what i was making at his age and he is always broke. he loves spending in everything thing that he sees on tv, xbox, ps4, jewelry, iphone11, jordans, 54” 1080p flat surrounds tv (i still have a 48” plasma, works just fine) I keep trying to tell him he is wasting all his future and rainy day

[@RobbiePfunder]

neither. Live in a van and work full time. you'll be AMAZED how much money you save and how free you feel. Showers? gym membership. stay in shape, too. Wifi? Clean water? Starbucks, any coffee shop, whole foods, mcdonalds. This is how I'm getting out of debt right now. Never felt more in control.

[@carlystreny5030]

My question is where are you living for "free" while you save? Because in Illinois rent costs more than mortgage is most cases.

[@martinwanswettjacob5979]

Thanks for being a living testimony of your faith in Christ in this Financial world..its blessing to be proud of.

[@Skilliard]

With interest rates as low as 3% for mortgages at the time this was published, I'm not sure how Ramsey could oppose a mortgage. 10-12% return on a home > 3% interest you pay. The math favors buying. He says he has the math to back it up but all he mentions is theology

[@Black70Fastback]

because he keeps pounding the drum of the one size fits all solution of "debt bad!" kind a 101 course that never gets any deeper.

[@thedude8526]

Not necessarily. You have to take inflation rates every year which average about 3%. Most people break even by the time they sell their home. That's assuming you kept up on basic maintenance of the home. If you do a major remodel and do it in a smart way then you can make a profit. .

[@scottedwards1209]

Dave, NOBODY rents an old lady's garage apartment for $250. It's not 1980 anymore. That old lady's garage apt will cost closer to $600.

[@joejingojack]

This guy probably still lives in the 70's. However he is right on couple of things.

[@Foreverfreeusa]

He seems to "forget" that rent is usury just as a mortgage is. Except the usury of a mortgage as an end date, where rent, well, that's eternal.

[@christinajarriel3423]

I live on long island , N.Y. ..your throwing away money renting it's cheaper and more cost effective to buy. They are now asking two months security, brokers fee, and first months rent. For the 2 bedrooms we need it's like 2000 a month...so i should pay like 10 grand for an apartment pay 2000 a month for a two bedroom when I can a get a mortgage for a small house with 3 bedrooms, 1 bath that cost under 200,000 and pay like 1600 a month. Where I live it's cheaper and better to mortgage a house not rent

[@BrianLera]

My rent is $350 here in Missouri. God has definitely blessed my wife and I.

[@Cyber_Nomad01]

The only place Debt has a place, its in buying real estate. I like to leverage the equity from one deal, to fund the next deal. The way I structure my deals, there is virtually no risk of overgeneralizing.

[@fierykatie5552]

What if the rent you're paying is way more than a mortgage payment would be?

[@Mark01gt]

When you rent you don't have to pay for repairs. People who own a home need to put money to the side to pay for a new roof, a new air conditioner, new carpets, etc. Every so often the house needs to be repaired. People who rent do not have to worry about that.

[@canadianjatti]

@@Mark01gt it often still outweighs renting. I bought a new house. No repairs for a long while. My condo fees and insurance cover a lot. The fees plus mortgage is lower than renting the same type of house and square footage here.

[@mikieemiike3979]

@@canadianjatti Plus, renters may not get to renew their lease agreement.

[@clytchan]

Dave, you are the reason why I have “Financial Peace.” I watched your DVDs, and it changed my life. It planted a seed in my mind, and today I have more money than I’ve ever had in my life. I started with a mutual fund, then I studied the Stock Market and made sound investments. 90% of the stress in my life is gone, now I know how it feels to live and not just exist. Thank you!

[@davidchrist428]

Did you pay for the CD's? Did you budget the CD"s into your budget? If not it put you in debt and you could have watched all his videos for free on youtube. Bad move on your part.....

[@gabrieltait2685]

This is America, you cant rent cheap. Dave Ramsey is out of touch

[@blackworldtraveler3711]

Gabriel Tait That's because you like many think too much above their means.

[@ImprovementisGrowth]

Yes he is.

[@hellogoodbye9345]

Agree. Rent within a 40+ mile of my current residence is over $1k plus a month, the good, the bad or the decent areas.. its all over $1k.

[@ijakinov]

@hellogoodbye yeah well then move and find work elsewhere. Nobody says you have to stay in that area. Nobody says you even have to stay in that city.

[@brittney5563]

I am the Juan and Only What!? Dude, i live i. Atlanta. I cannot find a decent 1 bedroom anywhere to rent less that $800 a month! PeriodT.

[@fishmut]

Gosh Dave I’m watching a lot of your videos from Australia and absolutely taking all the advice I can get from you , keep up the good work mate you are saving so many peoples bacon literally.

[@taenotswift98]

I wish he would do a video on monthly payments for things like netflix, spotify, etc. I wonder what he thinks about that?

[@blaket81]

This advice would be great if rent was, in fact, dirt cheap. My rent is $950 a month for a one bedroom, and that is actually considered pretty good where I live (Chicago). I am currently shopping for a house and am NOT going to wait until I can pay cash for it because I would simply never own a home. If my rent was only $250 then yes I would start saving, but I live in the real world.