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- [00:03]
A
Brought to you by the EveryDollar app. Start budgeting for free today. When you do a smart thing a stupid way, it's stupid. It's no longer smart. That was deep, wasn't it? Well, I mean here's a smart thing. Getting a car that's reliable to get you back and forth to work going and leasing a car that costs more than you make in a year is doing a smart thing. Buying a car a stupid way. And so you made it stupid. I've done that. All of you have done that. If you've made mistakes with money, you know what that makes you? Over 12. Everyone has. Everyone's done something dumb with money. And I think one of my pet peeves, I guess because my parents were in the real estate business growing up and I got in the real estate business immediately. Three weeks after I turned 18, I got my real estate license, sold a house two weeks later to a guy who buys a house from an 18 year old. I managed to pull it off anyway, so I love real estate and I love the idea of home ownership. And all of our data around becoming a millionaire says that home ownership and getting a paid for home is a key element to your first one to $5 million of net worth. So if you want to become a millionaire, there's really two basic things you have to do. The Data tells us one is steadily in your retirement like 401ks and Roths in good growth stock mutual fund over a 10 to a 15 year period of time. And the other ones, get a nice home that you can afford and get it paid off. If you do those two things, the data says you are more than likely going to be a millionaire as soon as that happens. And it's about a 10 year curve to a 15 year curve, something like that. But then we took that or we took the idea of hey, getting extra skills, getting an education, a four year degree, it's a good thing. But we turned it into a stupid thing because we did a smart thing a stupid way. And people go $250,000 in debt to get a degree in left handed puppetry. And so you turned education into something stupid, which is oxymoronic as it can be. So buying a home is the same thing. Broke people shouldn't buy homes. Well, that's mean. No, that's love. Because you know what happens if you're broke and you buy a house?
- [02:36]
B
Hey, it's George. That's right. I've been here the whole time, just creeping. Kind of like the creepy spammers and scammers out there using and selling your personal data. Not cool guys. Not cool. And that's why you need to check out Delete Me. Deleteme will find and remove your info from all these data broker sites to reduce the risk of spam and scam in your life. Delete Me has already remove my info from over 250 websites that don't have any business having it. And as a Ramsey fan, you'll get 20% off all of their plans which comes out to less than nine bucks a month. So after this clip, go sign up and take control of your privacy@joindeleteme.com Ramsey or click the link in the description to get the deal. All right, back to the call.
- [03:12]
A
Because you know what happens if you're broke and you buy a house? You get broker. That's why they call them brokers. When you're, when you're broke and you buy a house, a house will bury you. And so I live in my mother in law's basement and I want out. So home ownership is on the horizon. No it's not. You're broke so you've got to work and you know, start getting yourself out of debt, build some savings and get yourself up on solid ground before you buy a house. Otherwise the house is going to snap your neck. It's going to crack the whip on you. So buying a home is not a blessing when you're broke. If you are living in your mother in law's basement and you want to be free, I don't blame you. Go rent a one bedroom apartment. This is what normal human beings do. They don't go buy a half million dollar house with a co signer. Let me tell you, if you have to borrow money to do this stuff, you shouldn't be doing it. If you're going to borrow money to buy a house, a 15 year fixed with no co signer is the maximum we're going to do. But co signing is straight up dumb. If you have to get a co signer, it's because you're broke. It's because you're not credit worthy. The bank who loves to lend money more than my dog loves to eat, which is a lot. The bank loves to loan money more than anything else. They want to loan money and if they won't loan you money, it's because you don't need to be borrowing money. Hello. So proverbs, and it's even in the Bible, Proverbs 17:18 says one lacking in sense cosines for another. If you look it up in the cev, the contemporary English version, it says if you co sign for someone else, you're stupid. That's what the Bible says. Wow. So don't be buying a house because always buying a house is a good idea. Always going to college is a good idea. No, it's not. Going to college is very smart if you know exactly what you want to do and you're studying to do that thing. And it is a thing that doesn't have. You end up being a barista, a failed college student that got a degree in something that's absolutely nuanced and worthless and you've got a freaking master's degree in it, which makes you double stupid. Same thing. Buying a house. Let's go buy a house. In a way that the home becomes a blessing. So you're out of debt, you have your emergency fund in place, you take out a 15 year fixed rate loan where the payment is, is no more than a fourth of your take home pay. And if you, and you don't need a cosigner, that's it. That's it, you know, and then you're ready to start talking about buying a house. Until then, the house is not a blessing. It's going to snap your neck like a twig man. And there's all these smart things that are out there and it's like there's this, it's an entitlement thing and it's like, well, you know, it's just not fair that people can't buy a house. And you shouldn't make fun of broke people. Well, good God, I've been broke people a couple times in my life and I've decided I don't like it. So I'm not going to do it anymore. I'm going to do what it takes to not be broke people more. Work like a maniac, save like a maniac, and not spend like I'm in Congress and have a plan, you know, and execute, execute, execute. And you know, it's the same thing with a career. It's always smart to be a doctor. No, it's not. Yeah, if you hate being a doctor, yeah, that's a dumb idea. My dad always wanted me to be a doctor. That's a dumb reason to be a doctor. I don't want to be your patient. No, thank you. And so we do these smart things in dumb ways and they destroy our lives because people put them in the bucket as no matter what, no matter what the cost. It's worth it to own real estate. It's Worth it to go to college. No, it's not. No, it's not.
- [07:21]
C
You think about that last call. That young couple, of course they're miserable living with a set of parents or in one case a set of in laws. And so what happens is we go from, we don't want this part of our life. So then we go, what do we really want? And we skip the whole what do we actually need? And what they needed to do was look for a one bedroom apartment over some old lady's garage that they could get for an absolute, I mean, next to nothing for the transitionary period. That's all a young couple needs. I know when I was born, my mom and dad were living in a one bedroom apartment above a drugstore and that's all they had. And I was, okay, you know, I'm messed up for completely different reasons, but not that one.
- [08:03]
A
Yeah.
- [08:03]
C
You know, and I just think that there needs to be this exercise on what do we need? What we need is four walls and a roof and it's okay to rent. And that's the crux of what you're talking about. Everybody wants the house and so we suspend logic because of desire.
- [08:21]
A
Well, I mean it is. Everybody makes fun of the baby boomers and oh, you, you bought your house for a basket of strawberries or whatever.
- [08:29]
C
Yeah, George loves saying that. He dropped that one on me the other day.
- [08:32]
A
That's great. But the truth is what we've done is we've adjusted the house. The typical home in America today is 2 to 3,000 square fence. So when my parents moved to Nashville in 1963, they bought a 1,000 square foot one and a half bath, which means there was a half bathroom in the master. The doors were hollow core. I don't even know if you know what that is.
- [09:06]
C
I don't. What is it?
- [09:07]
A
It's these doors that are almost like paper mache, like in a movie. When they bust through the door, it's so thin, it's a couple of tiny pieces of wood with some other stu of what they were. And so, you know, there was zero privacy in this house. You could hear is a tiny little house to start with. And I spent the first 16 years of my life in a 1,000 square foot home. One and a half baths, three bedrooms and the bedrooms, I mean you can put half most of the house in this studio right here. But if you ask somebody to move into that today. Oh well, no, you can't even find that today. Nobody even makes it. I mean, it's just a half notch above a tiny house. Yeah, you know, and I'm not suggesting tiny houses. Don't get confused. Oh, my gosh. Folks, let's just calm down a little bit here and live within our means. It's a new concept. I've made it popular again. Create your free every dollar budget today. The simplest way to budget for your life.