I Feel Like Renting is Wasting Money
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- Опубліковано 18 лис 2020
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Work with a trusted real estate agent when you are ready to buy: bit.ly/3CWZGsS
😂😆 Lol
"I'd rather move from an apartment to a house than a house to an apartment," -- Best aunt quote ever
“I wasn’t wasting any money renting, because I wasn’t ready to purchase a home.”
That’s it.
$100K home, USDA, less than 0% down (negative equity loan, 0.35% for the life of loan)
@@aolvaar8792 there is no $100,000 house here California
@@jenti422 Yes, MOVE
USDA Rural Home Loan
Less than 35K population
Less than $119K Family income
I did my Landlord gave me $10K to break the 30 year lease (15 years left on rent control)
In 2010 houses on my street sold for ~$40K, $10K down, $180/mo
@@aolvaar8792 I'm confuse! We are going to move where?
@@aolvaar8792 That was long time ago. Maybe now it's more expensive.
Dave really teaches lessons on humility more than anything else. Don’t spend or buy homes to impress your friends or society, those who really like you don’t care.
My bumper sticker says, my other car is a 401k.
@@justinacase2623 that’s awesome lol
exactly. only leeches would care about how much you make and you can attract them by being so shallow to show off things you didn't initially want to buy but did just to show off. I've had friends of all socioeconomic standings growing up when I was little - wealthier than me or less wealthier than me. And I never looked at their socioeconomic standing as a big thing.
@@laur-unstagenameactuallyca1587 they are called gold diggers! How many super models date homeless guys? How about zero. You just woke up now into a red pill world.
It was the American dream to own a home. It make since in the 1950.
The government passing ton of laws to make own a home more affordable.
The problem is that most people are not financially responsible. That why we have Dave .
$2000 in Arlington is not "too nice", it's just an average one / two-bedroom apartment...
A lot of housing in America is overpriced for what things are worth. In Seoul, Korea a couple can still find affordable and decent living place for 400-600 a month, making roughly the same as American counterparts in terms of their occupation. That city is also far better in terms of public transportation. American cities need to get it together.
facts. all of nova
That’s what I’m saying. 2,000 is damn near an the price of an efficiency
$2,000 sounds cheap tbh... if you want to live withing 1 hour of commute. Unless if you dont work in the City
people aren't patient, that's why we are all broke , we want it "now"
130K household income at 23. If they get their act together and stop trying to live the luxurious lifestyle they should be fine.
I thought they were making $130,000 each.
After taxes too. Seems crazy high. Probably some bs useless government job.
@@MrJay197409
They both make total of $130k after taxes renting a high end condo/apartment. They could knock off $500-$800 a month with smaller place.
@@mxerb5912 she mentioned he was a consultant
Mr. Carroll Ware Wait, are they both making 130K or 130K combinedv
buying a house while in debt is like brushing your teeth while eating
haha I love a good analogy...
I love this!
Except when a house is cheaper then renting in many cases.
@@user-wq5ws1qs7x until the roof leaks, or a hot water tank goes, etc.
@@user-wq5ws1qs7x a mortgage will always be cheaper than rent however once you consider the roof leaking, the water heater, HVAC or any little thing going wrong the scale tips so fast it’s crazy.
Don't make an emotional decision based on temporary situations!
Exactly !
Christmas Eve I will be debt free after paying off 135k in student loans in 23 months! Best day of my life!!
God bless you, sir!
How much did you pay off per month?
@liveyourbestlife 1 Thank you! I'll be a tad upset if they forgive all loans in the next few months. Refund! lol
You go boy, I mean Sir.
nice
The Jones’s in DC are nuts!!! Truer words never spoken. Funny and spot on.
You can literally buy a condo 3 times cheaper in Maryland than in DC and about 15 percent cheaper than Virginia. Montgomery County or Prince George County are excellent.
*Democrats
There is nothing wrong with renting just like there is nothing wrong with buying. The difference is choosing which works for you.
Rented for 5 years at my place and was hit with a surprise non-renewal notice by an evil, spiteful landlord who wanted retribution for past complaints and to hike up the rent again.
At least with paying a mortgage, you have more stability and security.
Renters are at the mercy of landlords and their whims.
I've spent $80,000 on rent. And in one month I will be homeless.
It is a COLOSSAL waste of money.
I have half a mind to return to OTR trucking or saving up for an RV.
It’s a waste of money. I agree 💯. Working or being in a job you’re constantly being pressured by your boss and coworkers. I can just live in a mini van for 1 years and save up to 100,000 a month. W point. The guy responded to has no idea how hard it’s to earn money.
@@TheIdentifiedPatient Have fun wasting money with 7% interest rates, record high home prices, etc. Also have fun replacing that HVAC in the summer and roof in the winter.
@@TheIdentifiedPatient going back otr and getting a RV shit brother I call that smart living. I know plenty who did that, it's really a smart move.
@@matthewphillips5483 not all properties are single-family homes. If you own a condo or otherwise a unit in a multi unit structure, you’re insulated from surprise fees. They’re rare due to the property management, and when you do get hit with big expenses, they’re spread out across the owners (a special assessment), and if the board is well run, it’s usually no more than a few thousand USD. Do not rent. I own two condos and I’ve lived with my parents until I was 26 (I’m 28). Renting is a waste of money.
I know of someone who bought a house, invested time and money renovating it, and diligently paid the mortgage for 26 years. Sadly, illness struck, leading to the loss of their home. The devastating blow sent the homeowner into a deep depression, and within a year, they passed away. It's a heartbreaking reality that often goes unspoken; we're accustomed to hearing about "forever homes," but life's twists can sometimes shatter those dreams.
The US is the only country in the developed world that has people going bankrupt because of medical bills.
"Spending everything you make just to look like you're not broke." That's a classic. I'm going to plagiarize it.
🗣🗣🗣🗣💯
And your not really a cpa🤣
That part👏🏽👏🏽👏🏽!
‘Don’t go broke trying to look rich’
We used to say "Buying things you don't want or need, to impress people you don't know."
I’m 37 and no planning on buying a home anytime soon! That 20% down payment (70K) really hurts, I’d rather keep getting dividends and capital gains on that 🙌 besides, I have the freedom to go anywhere I want, if something brakes just call the landlord, etc...
they're killing it, especially for 23
@9INE PLANETS I assume from your saying 'was', this is no longer the case. Best not to compare your situation with theirs. ;)
That’s the first time I heard him say something other than “better than I deserve”
Dave must think this is 1980. 2000 a month is a steal in arlington
$2k is really not bad for Arlington at all. Renting in metro DC is quite a bit cheaper than buying considering any decent house in Fairfax or Arlington county is $750k minimum and taking into account closing costs, repairs, insurance, HOA, condo fees (if necessary), property tax, and opportunity costs of taking money out of the market for a large down payment. You end up paying $3500 a month for a house with maybe a few hundred going to equity.
Yep! As a DC resident, they’re making out like bandits paying 2k in Arlington.
“Well, who’s gonna pay for them, Elizabeth Warren?” 😂😂😂😂😂
No AOC. She wears 20k clothes so she can pay for it.
Googled Elizabeth Warren and found she is a senator from Oklahoma, Is that whom they're referring to actually ?
@@virtuosowins OK and MASS
I am 35, single, and making 75k/year with zero debt and I STILL am not ready to own a home mostly because I hate the state/city I live in and plan on moving within 5 years. I also hate mowing/shoveling snow with a passion.
Same, mostly because I don't know where I want to stay yet.
Hope you got someone. Being lonely at 35yrs is very bad
Same. 35, single, 80k/year, zero debt. Renting because there's a high chance I'll move in the next 5 years.
@@andytownsend19projecting?
@@davayun meaning?
If you go to a restaurant, and eat a nice meal, did you 'waste' your money, even if the food is now gone? No because you got something you needed and enjoyed. If you rent you're not 'wasting' money because you get a roof over your head and a place to live.
A lot depends on if you have outstanding bills and how much you spent.
If you have bills past due date and you have to put the meal on the credit card, yes, you wasted money.
I don’t see your logic. Priorities are first, don’t waste your money on luxury such a nice restaurant better learn how to cook buddy
@@pedrogomezrodriguez4121 keep trying, you’ll get it.
I see your point but not the best analogy. Maybe "go to a doctor for a physical" instead of "go to a restaurant for a nice dinner" would have been better.
It’s not a waste per se, but you aren’t building equity. 100% of money paid in rent, you will never see again or be able to use in the future.
The Dave Ramsey show, the only place where "You got a nice place!" is almost an insult. ❤️🤣
😂😂 I was just thinking that! Same thing when he says “you got a NICCEE car”
$2k in rent for the DMV is on par for an okay place to live.
@@mattm7115 $2K a month is a low number to me.
@@fredferrell I don't pay that for my 2 family house,and take $900 a month income from the property!...You folks live in the wrong place.
@@tompain2751 In reality, what matters is the % of the income you spend on rent, not the amount. Some places have higher costs of living alongside higher earnings for the same job. For example, in my field stipends in New York for a Physics Phd programs are higher than Floridas, but cost of living in some of New York's school is so high you end up with less money each month. But it depends in the area and the school, you do not know until you do the math comparing potential earnings to expenses.
i see people who have a house but nothing else because their broke and living check to check. Having a house isnt the ultimate goal.
That is true. However, it can be a great investment depending where you live. In some areas it is cheaper to own a home than it is to rent. Sadly tho, there are a lot of people that cannot qualify for a house loan.
I bought my house when I was 25. It was tough living paycheck to paycheck. Rent would have been $300 cheaper. But 20 yrs later my home was paid off. The same place I’d looked at renting is now $2500 a month, it was $700 when I bought. My house is worth 4x what I bought it for.. I just pay $2200 a yr in property taxes. It allowed me to semi-retire at 49, and I put the money I would have paid in mortgage payments to income generating investments. What worked for the area I live in, won’t work for all areas. Real estate is based on location. I bought close to a beach in California. In a new housing community. Now that it’s all built out, the demand to live there is HIGH. But supply there may be 3 houses for sale in a 5 square mile area. There’s no more open land so no where to build.
The thing about buying a house is initially it sucks because the mortgage payment is the same if not more than renting. HOWEVER, as time goes on (generally speaking) rent goes up, and mortgage payments stay the same. That means theoretically if you rent a place for 10 years, you may start out paying $800, but at the end of those 10 years you are likely paying $1200+. Someone who bought a house nearby may start out paying $1000/m, but 10 years later they would still be paying $1000/m.
*You can also sell the house*.
*You can also live rent-free when the house gets paid off.*
Not to mention more rooms = more things "needed" to by to fill those rooms!
Furniture can really add up!
@@annietribble3062 Yes here in Dallas, or anywhere in Texas. It’s so much cheaper to buy than rent. The mortgage of 2000 sq ft is cheaper than some 1 bedrooms here
"Because they're not gonna be forgiven and you'll be saddled with them the rest of your life and they are the major impediment between you and building wealth. That's the bottom line."
2 years later it seems prophetic. Don't trust empty promises and get a head start on your debt.
Her: "I feel like"...
Dave: NUMBERS. Your feelings don't determine reality.
He says just before launchiing into an emotion-fueled rant.
You are correct
@Matt he didn't say to live without emotion. He stated it wasn't reality.
It’s his way of not having empathy.
YOLO = Thank God It’s Friday, Oh God It’s Monday 😅👀
Please tell me she made up that name.
Who names their kid after the drink mommy had when you got conceived.
TSLA calls, YOLO
Homeownership will definitely take all your money. Over the years I've replaced the furnace, hot water heater, roof, exterior door, windows, multiple appliances, electrical and plumbing work (including water main to my house), as well as tons of other projects. Eventually though, your house payment will be lower than renting. The value of my house hasn't changed much over twenty years but rent prices have continued to rise. Once its paid for you can then work for a lot less or retire. Your property taxes continue to rise they will still be much lower than renting.
2000 for rent in Arlington split between 2 people is not bad at all.
Yeah totally agreed, Dave says Arlington is expensive but don't think he really understands...$2000 a month for 2 gets you an ok townhouse in the area lol...he had great advice though...pay those loans and buy the house when you're ready
They’re married so it’s only one not 2. If you’re single and have a roommate it’s not bad at all.
@@FloppedPizzaParty townhouse ? Lol more like a 1BR apartment in one of the older buildings in the city .
@@tomsa2796 to be fair 2 separate incomes but agreed, roommates help a lot!!
@@bangladeshirealtor if it's modest, a townhouse is definitely doable for 2k, though I agree with your sentiment... Arlington is just incredibly expensive. MD will always be superior imo for working in DC area with the best living conditions that doesn't kill the bank
When you buy a house EVERYTHING suddenly breaks all the time or needs repair/replacement. Which costs $$$
Yes, but if you have a warranty it’s not $$$$
@@hopalongjohnny9797 are you 5 years old? nothing ever breaks under warranty
Here's how the insurance company makes a profit. Makes it more expensive
Warranty = Avg cost of maintinence + OUR EMPLOYEES SALARY + OTHER COSTS + PROFITS FOR SHAREHOLDERS
@@DXmYb Bought a home, FHA required Home warranty.
Moved in (REO), made a list of non working items.
Water heater, oven, garbage disposal, dishwasher, over range microwave
Cost of Move-in warranty, $452
I manage a hardware store. You wouldn't believe how many times I hear, " I don't need to fix it correctly, just good enough to sell." It's always with roofing, concrete work, and plumbing 😂
Rent, pay off your debt, then start investing like crazy. Ignore the hype of owning a home. Learn how to invest well and you will outperform investing in a home.
Love this advice💯💯🥂
@Go Live Leverage is for gamblers because leveraged bets only work for shorter time frames. You have greater odds to lose with leverage.
@Go Live Why comment on my comment and ask me this just to say I don't have a clue?
Quality post this.
I hear people talk about investing all the time. But invest in what ? I cant get a hold on anything. I would be happy to have a grab on 3-7% return
I’m 29 and I make 6 figures and I still don’t think it make sense for me to purchase a home yet and I have 0 debt
I’m trying to be like you
Thanks for the perspective you guys offer!
My rent is cheaper than property tax of the average house. And size is just enough for me.
Will you clarify your comment? Maybe one month of your rent is equal to one year of your landlord’s property taxes.
@@greenmean230 you are probably right but for anyone buying house after 2018 my rent is cheaper than their property tax. BTW my landlord got the house in 1970s. This is the stupidity of American capitalism which is capitalize the gain and socialize the loss.
I can see that. Property tax is $10000+ in $1M+ homes here in Bay Area. So if your rent is less than $1K, it's cheaper.
@@kiraasuka9943go live in a more communist country than America then. You can move now since you rent!
There are so many more expenses to owning a home then people think. I wish everyone was more open about all the extras you have to pay for. People might be a little more content renting until they’re financially stable
Agreed.
Yeah taxes, insurance, and mortgage interest really add up. I know people that only rent because of this and instead invest more.
I don’t agree. If you don’t over extend yourself and actually save for when these problems happen. You can’t sell all those years of renting when you want to move on. I went from a two room in a triplex to a 1300 sqft home for half the price of rent. So for half of what I was paying I get an investment that will contribute to our future. I have friends that bought at a home at 18 years old. Ya it was hard for them but the homes where later used to move farther forward.
People aren’t more open about the true costs because that would highlight that their decision to own was in fact just as expensive as renting. Therefore they would be wrong, and people don’t like being wrong.
usually the older the home then more expenses.
UA-cam recommended this video to me... watched it... now I'm hooked on the show!
Tremendous leadership!
I was able to first buy in my late 20's but it didn't feel right so I waited till my late 30's and I am glad I did. I felt 100% at peace when I walked into my home and knew it was time. If it doesn't feel right that is your intuition telling not to so listen to it.
I never owned a home and am in my late 30s. I'm almost ready for the home chapter in my life but I'm able to do so debt free and you are right. It is a different feeling feeling ready vs not feeling ready.
It's not really wasting money because there is an upkeep cost to owning a home.
Yup, property tax. It's more like "licenced permission to claim something". And if you dont pay the tax, the government has the authority to take the home you "own", whereas if you dont pay the rent the landlord will have you evicted. I know what taxes are for and all, but why tax somebody to own something? It's like it's just a subscription. Sad truth is you own nothing when you live under capitalism. Renting makes sence as it's not your house technically because it's on your landlord's property. So your paying to Barrow the place you live. Simple and understanding enough.
Where do you, think the up keep money comes from ????
Thank you for sharing this.
Wow, I got this video today when I opened UA-cam, after finding out the bank didn’t approved my mortgage, just what I needed to hear.
Thanks
The chemistry between Dave and his colleagues is beautiful.
He is a great youtuber and podcaster , Anthony O’Neal
A true servant leader!
“Chemistry” ... I would fake chemistry too with someone paying me millions
I just saw your comment on another post.
"I'd leave her where she is"
Kemist
Back in the 80's I rented an apartment in Arlington Texas. Now in 2021 they call Jerry's World. It cost me $290.00 a month no bills paid. Now it is sec 8.
I really needed to hear this today. Thanks guys!
I live in this area and Arlington is one of the more expensive neighborhoods. They can get a decent one bedroom apartment in a different area, still close to DC for $1200-1500
I understand the renting concept. But i bought a dump when i was 19. Mortgage was $400-$600 less then renting in the area, and that included insurance and taxes. Knowing that i set aside that same 400 every month to take care of expenses/repairs. Now 10 years later. My house is paid off debt free and renovations have been done. All with just the money i set aside a month from the difference between mortgage and rent.
Great stuff Ian...thats why I am unashamedly pro- buying, even if it means eating beans and rice in the short term.
Smart, smart, smart! Way to go!
How did you qualify for a mortgage at 19 tho
@@callmeosho7792 idk man. My friend was able to purchase a home at 19 (Rochester, NY 1999.). He put down ~ $2K; I don’t know any other details though.
@@mazibukomail the trick is calculating the TRUE cost of buying vs. owning before making your decision. The cheaper option varies by region.
I'm 30 and I rent and I love it. I don't have to worry about spending money on repairs or maintenance. I pay $550 a month for a 2 bed/1 bath in Oklahoma.
Wow 😳 I’m moving to Oklahoma. I pay $1600 for a 2 bed/1 bath in Connecticut.
$550 for 2 bedrooms? What? Do you live in the boonies? I paid that in college sharing a 3 bedroom apartment.
$550? Wow. I thought thought I was doing well at $745 for my 2/1. What is your annual income if you don’t mind me asking?
@@adfmo2195 I make about $32k before taxes
@@TMartins379 I live in a residential area!
We rented for 3 years before buying a home. People criticized us but 🤷🏻♀️ people will always have something to say. So glad we waited until we were actually ready.
Yeah and now where are they
No matter what you choose, somebody will criticize. Do it the smart way for you.
My partner and I try to rent as cheap as possible making $143k combined
@@kennnnnnnnnnnnnnnnnnn1242 the quality of the kingdom is in the character of those who reside, not the cost of rent. good job, guys
Sometimes it’s cheaper to rent than to pay interest on a 30 year mortgage if you can’t put down a large down payment. On a 30 year term at 4% interest you’d be paying 165,000 in interest on $35000 loan. Yikes
Excellent advice. I hope she follows it.
Consider also, that you could go a different route than buying a full big house. What about a bungalo or a smaller, cheaper place to live that you could still manage to have a partner and child live in comfortably. Look into cheaper housing options that you can own. What about living in a caravan somewhere (if possible based on location etc), rather than renting? It could be way cheaper than renting a flat.
I love when anthony said “I wasn’t wasting money renting because I wasn’t ready”. Best comment
This helped me so much thanks Dave!
Great video. Can't wait to see the progress
Property tax is a reminder that you don't really "own" your home
Or if it's in a hoa community
Yep
And...home owners' insurance.
@@mattmorris2141 if your house is paid for you wouldn’t get home owners insurance?
It's killing us in California
I used to live in Arlington about 17 years ago. Back then we were paying $1400 a month for an average 2 bedroom 1 bath apartment in the "hood"/ South Arlington. "Hood" in qoutes because even back then Arlington was too expensive to have a proper hood. More like lower working class with immigrants. $2000 a month rent today in Arlington is not crazy. Arlington is basically DC and you're going to pay to live in that area.
I doubt they are paying 2000 for a studio or 1 bedroom. They are barley married don’t have kids so don’t need extra room!
$2000 a month sounds pretty cheap in Arlington
@@bigpap90 2500/ month for a 2br apartment is pretty standard in that area.
7:09 Very astute observation, Mr. Ramsey.
Man, you guys are the best 🔥💯
Renting always gets a bad wrap, but when you factor in house maintenance, taxes, closing costs, insurance, time downpayment isn't in the market, etc, it's not always the golden goose it's seen to be (especially when you're young and might move around). Home ownership certainly can be profitable, but it's important to find the right time!
DING DING DING!!!
Just FYI, it's bad rap. Not trying to nitpick, just trying to be helpful. And yes, agreed, renting makes sense in many situations.
And if you get a mortgage, you’re going into debt. 4% over 30 years on a 300k home = 215k in interest. You’re giving the bank $215k for the privilege of living in a house. You don’t own it, the bank does until you pay it off. I’m dumbfounded by the amount of people who don’t understand this. They only see a lower monthly payment and that’s it. 🤦♂️
@@JohnnyD5 Haha I googled the difference and Merriam-Webster stated "Bad wrap is considered wrong and is best saved for referring to wraps and tortillas". You learn something new everyday!
@@YaYousef5 do you know in 30 years , your home would worth a lot more than 300k ? I bet it will be doubled. Also, while renting, you putting away at least 15k a year. 30 year = 450k into dumpster . Furthermore, the rent price is not consistence, 15k a year will go up by ~3-5k every 10 years.
If you don’t have enough money to buy a house outright you pay interest on the mortgage. That interest is effectively rent. It allows you to live in a house you don’t own until you have paid off the mortgage. Of course it’s a little more complicated than that because you take on the liabilities of the property including maintenance, insurance and either profit or loss in the value from the moment you “buy” it. So the much quoted idea that rent is dead money is a myth. If you rent you are paying the owner of property for the use of the property. If you buy you are paying interest to the lender for the use of the money. Interest = rent.
Love you guys!
Great advice!!!
I'm glad I didn't follow this advice. At 23, we bought our first home in December of 2018 for $250k (new build, so maintenance was minimal). Our rent at our apartment was $1200 a month, and our mortgage was $1600. We just sold our house for $390k, and used the proceeds of our sale to pay off all our debt, PLUS we put a huge down payment on our next house. We will have the new house paid off in about 10 years. Oh and our old apartment complex is renting the same apartment we were in for $1750 a month now......
Idiotic
Very happy you got a great break in life. Unfortunately I half agree with you and with Dave. If you are in the position that your home will be an excessive amount over your rent. You should keep your head down and save a little longer. If you have the funds to actually buy a home and think you should spend that on student loans first, you're wrong. Spend that on buying a place that will give you a roof over your head. Worse case scenario in life you end up with just that one home, BUT it's your home.
This is really bad logic. It's like saying extended warranties are a good deal because you were one of the few people who broke down. Bad decisions do not become good decisions just because sometimes things work out.
Dave's advice left out what he usually says which is don't buy a house until you've paid off debt (school and credit cards and cars) and have your 3-6 month emergency fund in the bank. THEN you can buy house within your budget. So Tim, I assume you were in good financial position with good income to buy that house at 23?
@@LordScrambles couldn’t have said it any better
Dave: “2,000$ you live in a nice place!”
Me in SF: what??!!
Yeah in Arlington VA that's not into "nice place" zone.
@@PaulSullivan828 Exactly what I was thinking. So confused right now.
It's like that literally everywhere with rent now, not even just "nicer" areas. I've looked at apartments in several different cities, and a 1/1 is always $1200 minimum, nicer apartments are up to 15
@@brendanpeck9780 We own a rental in a small college town, and charge $875 for a 2 bed/2 bath updated home. It's all about location. Most places are not like CA or VA.
Haha right?! Yeah in LA a 1 bedroom on the low end is $2500
❤️ Love it, Ramsey Solutions!
Sound advice!
This duo is like fire and ice. It’s pretty dope.
Bought house and a couple weeks after, the water heater broke. Spent 2k to replace. Welcome to home :)
I’m a plumber, I can do it for cheaper!
Ya thats what scares me when i own a home..just so many expenses compared to renting.
Old water heater and undisclosed water damage to flooring under the fridge the seller generously left for us. 2000 to fix both. Also home inspector also did the pest control for the house a month before we closed. What a coincidence
Should have hired a home inspector. You could have negotiated the price you paid for the house
Love you guys 💪🏿💪🏿
Great advice AND they will learn how well they work together. While eating beans and rice take on your health ...workout for your entertainment enjoy nature together etc.
Dave, this is NOT the 70s... today 2000 is NOTHING in Arlington VA. You advising them to get out of their place and go where??
found plenty of appartments between 600 and 900 sqft for under $1500. if youre in your early 20s you dont need to live like you made it already.
@@La_sagne where were those apartments? In Seattle (the only place my family can make a decent living) the cheapest rent is $1500 not including utilities or electric.
2000 for rent is insane to me, regardless where you live
For real. That’s what I was thinking, $2,000 doesn’t even get you a one bedroom in Seattle.
@R W apartments com.. type it in and youll see
Buy a home, rent it out and live off rice and beans. You will be making money from the rent while also making money from your regular 9 to 5 job. That double whammy of income plus owing an asset (the house) is the secret to building wealth.
Really good video here!
I'm 48 and I never listened to Dave Ramsey before this weekend. I love this guy! Finally someone who gets me!
I would always disagree with this. I would whether buy as soon as I can instead of staying in a home paying someone else a month.
If you're living in Arlington. $2000 isn't much Dave. You have to move away not down.
Yeah, I live in DC and it doesn’t sound like Dave has been here in a decade or two. Many people would sell their right arm to pay 2k in Arlington.
I was confused as well. I think Dave had some sort of mental blunder here. They are spending less than 20% of their take home pay on rent. That is immensely low. Rent is not their problem.
Dave gives me inspiration to get my butt out of debt
I needed to hear this today.
I’m here with you
😊
My daughter foolishly purchased a very expensive condo, because her manipulative boyfriend demands the best of everything - especially if she's the one that pays for it. I found the exact same condo, within the same area, for less than half the price. Since buying the condo, they suddenly married. She no longer speaks with me.
I don't think I want to leave any inheritance to her, because he just wasted hundreds of thousands of dollars. I worked all my life saving the majority of that money while supporting her. She worked really hard to get a doctorate degree and it's all gone to waste.
This entire situation has left me very broken-hearted. As hard as you work to save money, you have to work even harder not to let master con artists take it away from you.
so true
I wish you and your famy the best Diane. Sorry to hear about your situation.
n-mom alert
Long-term, it is a waste of money. In the short term it can definitely make more sense to rent than buy
Omg he is from Arlington ? That’s why I love him!
You are correct, Dave....AGAIN!
Renting is better than negative equity. Also, being able to invest funds into assets that are gaining value quicker than property is a benefit of renting.
Almost nothing in existence grows equity faster than a home in the 100+ years we've tracked it, for most families a home is the ONLY way they improve their quality of life in a shorter amount of time than decades
@@jtowensbyiii6018 Literally lots of investments grow faster than a home. Just buy an SP500 index and you'll make about 8% every year (on average). Most homes don't make even half of that.
My parents' generation. Bought homes. Low prices, low or no taxes. No income taxes some places. One car often. no student loans. No extra spoiled kids. World now is COMPLETELY different
Yup
VA loan: Used the VA at my first unit during the recession, did me pretty well. 🤷♂️
i bought my first place and sure enough, the water heater would not work. I also found out my HVAC was what the industry called a "leaker", it leaked free-on, and had it replaced too. Everything is fine now and I have paid off all my debts and am working on my baby step 3 (half way there).
I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me, retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income-generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving
@@user-vk8vu4li2x Having an investment adviser is the best way to go about the market right now, especially for near-retirees, I've been in touch with a coach for a while now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
@@MaryPatricia-wr3wj Who’s the person guiding you
@@user-vk8vu4li2x credits to KRISTIN GAIL CUNNINGHAM, one of the best portfolio managers out there. she's well known, you should look her up
@@MaryPatricia-wr3wj Thank you, I just checked her out and I have sent her an email. I hope she gets back to me soon.
I feel like I'm wasting money. I only make 72k before taxes and I pay 2k a month. I live in LA, so rent here is outrageous.
You may want to consider moving out of California. I heard the homelessness, income tax rate, traffic, etc has gotten bad.
@@ttr8141 Yeah, it's terrible. It's a bit harder for me to leave California since I'm a "baby lawyer" and am only barred in California, but I am seriously considering taking the bar somewhere else.
Come to Free America! Conductors are taking trains out nightly. Leave the Democommunist Occupied Zone. The sponge is in the microwave. The Lexus is double-parked.
@@ttr8141 como to Stockton California
I LOVE THIS GUY
"Papa Dave" I'm loving your videos.
Hard to save for a home when apartments are just as much as a house.
Thats what i think. I personally think if you can save up enough for your 20% down to cover PMI, and you are still able to afford the payment without issues, then you are building equity instead of renting and throwing the money away. However i do think renting to get an emergency fund saved up and your 20% down is a good idea.
Or more.
True..if this is the case ..then renting is better option..when things break down..its fixed by property management like pipe bursting or sewage problems ..its fixed by landlord..if we buy its out of our pockets
@@blissessentials524 Try not to break things. Then owning is better
@@blissessentials524 that's if you have a decent landlord that gets around to fixing things. I've seen too many that neglect their rental properties, renters having to beg their landlords to get things fixed.
Renting gets such a bad wrap
Ever heard of property taxes, insurance, maintenance, etc? Those add up to more than rent
these two have great chemistry!
yeah especially in terms of $$$
I recently moved out of the DMV area. I had many coworkers who wouldn’t be able to go to lunch because they were trying to save money, but they “owned” a 600k-1 mil home that was a 1 hour commute each way to work that they were driving to in their new Audi A4/BMW 3 series. 🤦♂️ Most of them didn’t know what an ira is, or the ones that did said they were going to start putting money into it after they pay off their 100k in student loans.
Lol.....typical American people. Schools don’t teach the importance of finance. I love hearing people at my work say, “I’ll pass on the chipotle order because I’m saving money” but they have a brand new Mercedes lease in the parking deck. Hahaha 🤣
Interesting anecdote, articulated well, but sad to hear.
What is a DMV area? This story is too funny? Is it really true?
@@AltaicPride01 DMV: DC Maryland Virginia
Dave keeps stealing Anthony's thunder. LOL
“ How Long You Been Married?”
1:28
Too much thunder came in hot
@Anna annanymous it's nice to have different perspectives... and they have likeable personalities.
dave is daddy anthony is baby for now. soon anthony will grow and take dave's thunder back : )
Dave is so right DC Jones are on a different level. They need to move from Arlington because that area is just insanely expensive. They can move to Maryland 30 to 45 mins away and pay way less in rent.
Needed this video
Just remember when you buy a house you got other bills that come along w that. More responsibilities and more cash to be spent on fixing upkeep repairs and appliances furniture
Alot of bills........
the thing is if your water heater goes out or the roof leaks, you still have a roof over your head. If rent skyrockets to an unaffordable level you can't pay you are evicted and homeless. Rather live in a house with a broken water heater and leaky roof than a homeless shelter.
Keep renting baby 🔥🔥
Agreed
7:11 Dave awakened my fight or flight response 😂