Do You Have What It Takes To Get Out of Debt? (Hour 1)
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What are the 7 Baby Steps to get out of debt?
Live from the headquarters of Ramsey Solutions, broadcasting from the pods, moving and storage studios. It's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Jade Warshaw, Ramsey Personality, is my co-host today. We're going to be talking to you about your life and your money. It is a free call. The phone number is 888-825-5225. That's 888-825-5225. Caesar starts this hour in Chicago. Hi, Caesar. How are you?
I'm doing great.
You know what? That's Cesar. Is it Cesar or Caesar? Caesar. It is Caesar. I'm like Julius Caesar. Got it. Okay. I did not mess it up. Good.
How can I help? Thank you so much. Yeah, I'm 26 years old, tuned in from Chicago. I have approximately $100,000 in my savings. I have approximately $50,000 in mutual funds that are parked in a Roth IRA, Roth 401k. And I feel like I have a lot of options. There's a lot of pressure to buy. I'm thinking about buying the building. And it's putting a lot of pressure on me, but it's a lot of options.
How does house hacking work and is it a good idea?
I really don't know what to do at the moment. And I would like your advice about my situation.
Do you have any debt?
Zero debt.
Zero debt. Way to go.
Are you married? I am not married. Why hasn't some woman snapped you up?
I know, that's right.
No, there's a woman. Trust me. Yeah. Man, you're killing it. Very good. You're killing it. Way to go. I'm proud of you.
So is your personal residence paid off as well? Or are you a buyer yet?
I am renting at the moment in Chicago, and this is my situation for renting. It's a two-bedroom. It's $1,000 a month, and I'm splitting it with a roommate, $500 each.
Wow.
Stole that.
So you're not in a hurry to get out of that. No, that's a deal.
I know. I assume they're not shooting down the street, are they?
No, no, they're not, actually.
What is the gift tax limit for 2022 and how does it work?
They're not shooting down the street.
So, what exactly is your question? Like, what are you hoping to get from this call?
Okay, there's a general question and a specific question. I'm feeling a lot of pressure to buy my own building, a multifamily unit home, and to move into that.
Who is pressuring you?
You know, that's a great question. It is. In Chicago, it's like the thing to do, you know? Like,
Well, among 27-year-olds, it's a thing to do, but that doesn't mean that's smart. I mean, dude, you have really good instincts. You have really good skills. You are so far ahead of normal. Normal sucks, is broke, has no money. I mean, you got some money piled up. You've done a great job. Way to go. If you want to buy a condo to live in, that's fine, but don't buy it because the society that's stupid thinks you should. Right. Okay. You got by it because you looked at it and you said, I like these numbers. I mean, you're the guy living in a $500 rental situation in Chicago. You're that guy. Score. You're the smart guy.
I know, right?
You're the smart guy. Be listening to him. He's got more going on.
How can I effectively use my retirement funds?
So if you want to go buy you a condo, that's great. You've got $100,000 to put down, or you need to set back an emergency fund of three to six months of expenses and set back anything else you need to purchase if you're thinking about buying a car, you're thinking about buying whatever, so that you don't go into debt for the future items. But after that, the rest of that money is your down payment on a condo or whatever if you want to buy something. But – But when you say buy a building, you know what I'm hearing? You've been reading real estate investment crap on Tic Tac. That's what it sounds like.
No, it's that my grandfather owns a multifamily home. A lot of people in my circle, you know, a lot of... A lot of them, the older generation, owns a multifamily home. So I was thinking, why don't I house pack, get a renter on the top floor, live on the first floor, and rent out the basement?
That's not a bad idea, but you should do it because as you looked at it, you thought, A, that's how I want to live, because the great news is your tenants are attached to you. The bad news is your tenants are attached to you. They're going to be knocking on the door at 2 a.m.
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Chapters
8 chapters
1
What are the 7 Baby Steps to get out of debt?
0:28–1:42
2
How does house hacking work and is it a good idea?
1:42–2:40
3
What is the gift tax limit for 2022 and how does it work?
2:40–3:55
4
How can I effectively use my retirement funds?
3:55–6:07
5
What motivates individuals to stay on track with debt repayment?
6:07–8:30
6
What strategies can help maintain motivation during debt repayment?
8:30–10:11
7
How do personal experiences shape financial decisions?
10:11–11:16
8
What advice is given for managing and investing money wisely?
11:16–38:06