George Kamel

Luckily, you got $20,000 sitting there in savings.

So that'll cover the amount you're underwater, leaving with a few grand to get you a beater car for now, to get you from A to B.

right?

Okay.

Now what's your payment and insurance?

We can easily say it's $1,000 plus for this payment plus insurance and all that.

So that's what you would free up.

To then start saving up an emergency fund, followed by a down payment.

Because if you really want this house, and grandma's willing to wait, then I would act like this is urgent.

And I would get rid of this stupid car that's going down in value when you're telling me that you want to be a homeowner.

So you're talking like

That's right.

And just because the offer is generous doesn't mean that this is a good deal that you can afford.

Stick it out with the beater while then saving up, paying yourself that car payment of $500 to $1,000 a month.

Well, now you've got $12,000 more at the end of 12 months to then upgrade and car.

So you sell the beater, take that profit, and apply it along with your $12,000.

Now you've got a $16,000 car.

And the key is you don't want...

Anything with wheels and motors to add up to more than half your income.

Your sustainable income.