DAVE RAMSEY

Dave Ramsey says: Wait until the time is right for you to buy a house

Dec 20, 2022, 1:00 PM
(Pixabay Photo)...
(Pixabay Photo)
(Pixabay Photo)

Dear Dave,

Is it even worth it to buy a house these days? I’ve always been told buying a house is the adult thing to do and that it’s a great investment, but I can’t find anything decent and livable in my area for less than $350,000.

My wife and I are debt-free, and we’re expecting our first baby in January. I was hoping to get your advice.

– Craig

Dear Craig,

I can understand how things might feel a little hopeless in your current situation. You’re probably feeling the weight of the responsibility a new life brings to the picture. Things are getting real really fast, aren’t they? Believe me, I get it.

The truth is you may not be ready to buy a house today. And that’s OK. Having a new baby on the horizon doesn’t mean you have to run out and buy a home. That little boy or girl isn’t going to know the difference between a house and an apartment for a long time. Right now, giving your child a safe, loving environment is the most important thing.

Now, looking down the road, is owning a house worth it? Yes. But it’s not worth doing it at the wrong time or in a stupid way. You first need to make sure the income is there.

Then, you need an emergency fund of three to six months of expenses in place along with a strong down payment. So, what if you don’t buy a home for another two or three years? Home buying should always be done with patience and wisdom.

There are two or three things that make buying a home a great long-term investment versus renting your whole life:

• Rents go up every year. If you lock in a good, fixed-rate mortgage, that payment will stay the same.
• The value of your home will increase. When you rent, you don’t own your residence, and you won’t benefit from the value of it going up.
• Our study of 10,000 millionaires showed that most say two things were integral parts of their ability to build wealth: Good retirement investments and a paid-off home.

A house is a great wealth-building tool, and it can also stabilize the biggest line item in your budget — housing.

God bless you guys, Craig!
— Dave

Dave Ramsey

(Pexels Photo)...
Dave Ramsey

Dave Ramsey says: Pay off $3,000 co-signed loan in arrears if you can

If you have the money, and you can pay off an old debt without putting yourselves in a bind financially, do it. That’s the right thing to do.
3 days ago
(Pexels Photo)...
Kristina Ellis

What you can do this year to work toward being student debt-free

Let’s review what happened with student loans in 2022, look ahead at what’s coming, and talk about what to do to work toward being debt-free.
5 days ago
(Pixabay Photo)...
Dave Ramsey

Dave Ramsey says: Parent should learn to take better care of personal finances

Bailing out a person who is irresponsible with money won't help them. But if you do, make the payment contingent on financial counseling.
10 days ago
(Pexels Photo)...
Rachel Cruze

Tips for 1st-time budgeters to take control of your money in 2023

Getting your finances in order can feel big and overwhelming, but we’re going to break it down in a way that’s simple and manageable.
11 days ago
(Pixabay Photo)...
Dave Ramsey

Dave Ramsey says: Talk to probate attorney about ins and outs of windfall from handwritten will

A handwritten will doesn’t necessarily invalidate it, but it does increase the possibility of encountering some bumps down the road.
17 days ago
(Pexels Photo)...
George Kamel

New year is perfect time to check in investments’ growth

New Year’s is the perfect time to check in on the growth of your investments. Let’s talk about what the stock market saw in 2022, what you can expect in 2023, and what it all means for you and your money.
19 days ago

Sponsored Articles

(Pexels Photo)...

Sports gambling can be fun for adults, but it’s a dangerous game for children

While adults may find that sports gambling is a way to enhance the experience with more than just fandom on the line, it can be a dangerous proposition if children get involved in the activity.
(Desert Institute for Spine Care photo)...
DESERT INSTITUTE FOR SPINE CARE

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
Dave Ramsey says: Wait until the time is right for you to buy a house