I Only Make $40,000 A Year and Bought Too Much House!
VloĆŸit
- Äas pĆidĂĄn 10. 08. 2022
- đ” Create Your Free Budget! Sign up for EveryDollar âź ter.li/6h2c45
đ±Download the Ramsey Network App âź ter.li/ajeshj
đ Visit The Ramsey Store âź ter.li/7vyom2
đ Have a question for the show? Call 888-825-5225 weekdays from 2-5 pm ET or send us a message ter.li/n88ly5
Explore More Shows from Ramsey Network:
đïž The Ramsey Show âź ter.li/ng9950
đž Smart Money Happy Hour âź ter.li/9gcp3d
đ§ The Dr. John Delony Show âź ter.li/2u3mc0
đ° George Kamel âź ter.li/1elws8
đĄ The Rachel Cruze Show âź ter.li/n2u6jc
đŒ The Ken Coleman Show - Highlights âź ter.li/1rbjr2
đ EntreLeadership âź ter.li/ktxv2k
Ramsey Solutions Privacy Policy
www.ramseysolutions.com/compa...
Selling the house with a $1100 mortgage payment is just dumb. Once he gets a side job and the wife starts to work, that will easily bring another 2k a month. Stay put and allow the home to appreciate.
Yeah he got a good deal tbh
right. rent nowadays 2000
She needs that part time
Homeownership expenses are more than just the mortgage
It's a 30 yr at current interest rates. This doesn't include future rate increases. This doesn't include all the other costs associated with owning a house.
This is $hit advice. Don't sell a house with $1100 mortgage to rent a place for $1000. Buckle down make more money and make this house work.
well said
Money wise for sure it isnât the best advice but by now anybody watching Ramsey should know it often isnât a math answer. But also part of it is knowing John who openly discusses his approach focuses a lot less on the math and much more on peace which he defines as not being bogged doen in stress by obligations. So it makes sense heâd take this route because he sees more peace by paying about the same but shifting the higher costs risks of ownership to s landlord and having a true fixed cost where with more money coming in you can save a bunch short term and then go back into a home with savings in check and a higher income to handle the swings. But Iâd stay in the house too and gamble on saving money that way. But the advice is in line with John and what his outlook is.
Just bought myself. Same situation, but this is my forever home so I'm gonna make it work and pay it off fast
He going to sale to rent for $1500 def makes no sense đ need to put the big boy pants n get a part time job his self
More mortgage shilling. Mortgages are garbage and no one should purchase a home without a 12 month emergency fund in the bank unless you purchase your home in cash (preferred). 3% and razor thin reserves is a suckers game and you are better off renting with a massive cash buffer.
1100$ ?? Thats a deal. Can't even rent a 1 bedroom apartment for that price
yeah, real good deal. Man can't put food on the table ("$1000 over budget this month")
It is a good deal if he was making more or it was just him and the wife. Or heck if it was just him!
@@RCGuitar982 that won't change even if he sells. He has an income problem and will struggle finding a rental that can accommodate his family, in a safe location and less than what he pays now.
The best part is 50% of his money will go to the bank for interest
@@xfhnhhgjbvcfg the bank getting paid
Finally a call that's actually relatable. We mostly see people call in to Ramsey talking about their struggles with an income of six figures plus, but the majority of Americans are actually living on the poverty line like this man here! This story is both refreshing to see and anxiety inducing. This is real!
The way John Delony spoke so compassionately to this man is so inspiring. THIS is how a coach is supposed to speak to someone who is desperate. He started by saying leave all the shame and guilt behind right now, that is so beautiful!
Thought the exact same thing! Well said!
There are a wide range of people who called in. This seems like one of those Pat comments that people just say. Itâs like saying âI couldnât appreciate those movies growing up, because nobody in them looked like me.â Cringe
Completely agree! The average American makes something along the lines of 45k a year. I love hearing from average folks like this guy. John approached it correctly. Set aside the shame and make a plan!
I mean most callers who call in! Only be having a COMBINED income of like 100-110k while the average household income is almost 90k! So itâs not far off
Yeah well, unfortunately, a lot of Americans arenât financially responsible, by statistics, thus dramatically magnifying their problems. Americans (and yea, Iâm proudly one of them) have eyes bigger than their pockets
Definitely disagree with the guys on this one - donât sell the house. Iâm getting more money by working on the weekends and the wife getting a part-time job after full-time job ends Monday through Friday. A 3 bedroom house for 195k wonât happen again. Dig your heels in and get to work
Not knowing where they live it's hard to say that's a good price or not, speciallyon a 30year mortgage. Yes he could increase his income but the risk is there, that something going south on the house will bury them in debt.
I agree with you!
I agree. Dig your hills in. Wife could maybe tutor or watch another kiddo on the side. He or she can work on the weekends or nights part time.
@@Ingcivilcarlos Oklahoma thatâs where they live.
Seriously agree & the wife "having to get a job" --- so she's going to go to work to pay for daycare? How stupid.
DO NOT SELL THE HOUSE. He has little to no equity. Assuming he has to sell at $195K, the same amount he bought for, he's paying 5-6% Real Estate Agent fees and closing costs. He may be in the hole or just break even. And then there are moving costs. Financially, it doesn't make sense to sell. He has to get another job and wife should work full or part time from home to erase daycare costs. Good luck to the family!
Totally agree.
Live frugally
Idk. If the roof or HVAC goes out this dude can't pay for it. He is already spending more he makes buy 1k. He can't afford the house right now. Pipes burst and dude is sunk.
Yeah. Not good advice on this call.
Three young kids and a single low paying career? This is the type of situation where the household needs to relocate near a support system (usually his or her parents) and get some help with the kiddos (temporarily) while they both go out and make some money. The daycare costs alone will act as an anchor, minimizing any chance of them improving their situation.
If the mortgage vs renting is the same, no way Iâm selling the house. The house can build equality over time, the rental stays an expenditure.
Not at 50% of your income: wife needs full time job for now. But daycare is pricey đ€·ââïž.Do Ramsey steps for now! You can do this! I did on same salary! Itâs hard work but you already took first steps! God Bless you & family
Makes sense but it would relieve the stress of not worrying everyday about house maintenance. I wasnt in the exact same boat as him but can relate somewhat as I was single at the time making 3k net with 1700 mortgage. Was stressful but glad I got it done. I wish the family the best!
Bro what happens when he needs a new roof you think this guy's got 20K đ
Plus if you donât pay your rent the landlord will evict you anyway.
It's more about the precarious position they're in. If one thing in the house breaks, they're up a creek. Renting would solve that problem (addressed in the video).
$40K a year is less than $20/hr. This isn't a house problem, it's an income problem. Wife needs to work...somehow.
I make $20 an hour and I'm pretty sure I make under 50k/year working full time
@@shakinbottles Math doesn't add up. You either work overtime or don't pay any taxes
@@chammysean I work 36 hrs one week and 48 the next week and I mean I just over exadurated its probably closer to 40k I just haven't worked here a year either way its definitely less than 50k
@@shakinbottles $40k works out to $19.23/hour (based on a 40-hour workweek). $20/hour works out to $41,600/year.
Its more. If we talking about after taxes its like $23 an hour. Which is good money half the country makes 30k or less
To rent an apartment is going to cost more than his mortgage. He will need at least a 2 bedroom apartment.
Not in Oklahoma where he bought the house.
@@codegeek-il5fm right
Not in Oklahoma.
"To rent an apartment is going to cost more than his mortgage." And having a mortgage could cost even more should the furnace go out or the roof starts leaking.
Not in my city okc
At least he is trying his hardest to make a life for himself and his family. He can do it.
He is not, he has one job.
@@Duckywucky92people like you make me laugh
kids these days are too soft, back in my day we snorted coke and worked 160 hours a week. God I miss the 80s.@@Duckywucky92
Their household income is 40k and you tell him to sell the house.. if they increase in income they can keep the house.. rent can go up..
so many angles. i agree with John, sell and not have to worry about repairs. Its only temporary
He recommended selling because while owning they are responsible for repairs, if something breaks down in the house they have no money to fix it and will only get in a deeper hole of debt.
@@Ingcivilcarlos Have lived in my restored 1960 home for 12 years,
no repairs
A new house can come with 10 year wall to wall warranty.
House maintanance (even if it's brand new) has a cost. You need to mow your lawn, clean, repair things, replace things, take care things damaged due to weather, repair things kids broke or put safety measures for them. Being an owner is a ton of work and money. In a tought season yes, is better to rent the smallest place you can survive. When you are in a better economic situation you can afford the burden of ownership.
Home ownership is about so much more than the fixed cost mortgage. It's about all those little variable costs his budget can't afgird including surprise appliances breaking. He is not ready for home ownership
Too much house? Iâm pretty sure your realestate agent wouldnât agree. This is all about his low income. You can budget until your blue in the face but 2200 net a month wonât cut it.
2200 net a month wouldn't be good good for my wife and I and our rent is only 755 a month. 1500 for all other bills is hard living.
@@MochaZilla When I was younger I made 1800-2000 a month, paid a 900 a month rent, and financially supported a woman and an infant child. It's doable, just not easy
@@MochaZilla he makes 2800 net a month if he makes 40k .
I'm wondering how he qualified for the mortgage?
@@GlorifiedGremlin what year? Because its 2022 and there's massive inflation worse than any time in US history.
They need to stay in the house and increase their income. There is no telling how much houses will cost when theyâre ready to buy again. They could just stay where they are and be gaining equity in the home.
Right. Not to mention the bank/reality fees to buy/sell.
Based on the numbers and the math, you are correct. That's why George said stay put. But John, hearing the pain and stress in his voice, saw that the burden is unhealthy for this man and his family. And by putting down this rock and transferring the risk back to a landlord, he can now breathe and think clearly. So now he can do what he needs to do (education, new job etc.) in order to put them all in a better spot.
I am also an insurance agent with no college degree. I can tell you with certainty that this man has the potential to make much more money. Polish your resume; send it out to as many big agencies as you can. Don't worry about your location.. you will be making 50% more money with a year or two, and you can work from home.
Trust me, there is a massive shortage of good insurance professionals out there, and agencies are paying more than ever. $40k / year is an insult to you. Good luck.
I was going to say the same thing. I work for an insurtech but in the past have worked for some big carriers. He has the chance to work remotely for a lot of carriers or bigger agencies to make more money if he puts himself out there.
@@Lynell540 Exactly. I know someone making $50k / year with absolutely no experience or insurance license. 50k should be the bare minimum that any insurance professional works for in 2022.
I'd wondered the same thing. That sounds really low for a professional job.
Correct; if he gets with the right company and becomes an expert, hones his skills, sells the right products, works his tail off, he can gross 100k. I started when I was 57 and worked like heck and was able to do it.
He needs a financial mentor to help him increase his income.
These two guys shouldn't be giving anyone financial advice. $1100 a month is not over doing it in Oklahoma. To tell this guy to sell and go to renting, they are clueless and totally out of sync with the common person.
Absolutely clueless
Ya I think you would be worst off in the end
I would tell the old lady to work the tables at hotters part time
I like the Ramsey philosophy. But I hate how they think itâs so easy to just go make more money.
Right! Especially when he is making 40k, so about $20 an hour. Not many places will hire you off the street for more than that without a degree or experience.
@@shanep2760 I kno where I live! There a lot if places he can work that would pay hime 40k with no experience and if heâs working 50 hours or less! He can def get another job and make more money
@@shanep2760 Stop by your local gas station and see how much they are hiring people at per hour. Not far off that $20/hr
@@bill.l I know it's not too hard to find a job that pays close to $20. My point was that he already makes about that and they are telling him to just go out and double his income. So he would have to find a job that pays $40 or work 80+ hours a week. đ€·
@@shanep2760 ...no...that would be another $20/hr job for another 40 hours...for starters...
KEEP THE HOUSE. Like Dave says deliver pizzas at night or weekends. Wife can get a job with childcare services and include her kiddos or work from home gigs. Tons of work from home jobs part time. YOU CAN DO IT!!!
Yes, rent = mortgage so keep the house.
Absolutely. Telling him to sell the home was horrible advice.
your acting like the wife wants to work. She can make more money and have a less stressful life by divorcing this man and living off his alimony/child support payments
@@jwake4803 Why?
Are you or have you been in his same position?
Why would you sell the house if you're going to pay the exact same to rent? At least he would be building equity if he stayed in the house.
their reasoning is that when the big emergency fixes to the home come up, it will be on the landlord and not them
Sell things as the kids get older. Snowball your bills. Cook at home every night. Bunker down at home! You can do it brother!
Agree. Some people do not know how to live frugally. Tons of us out here doing it and having a nice life.
Stop having kids.
@@bethannsmith4969 do you mind sharing some tips? Struggling with the food budget for example. Cutting some subscriptions has helped a little however
@@kaylean39 Only eat twice a day. For one meal eat the same thing daily i e. Oatmeal with a few frozen blueberries. Drink water most of the time. Find a simple, basic outfit that works then buy duplicates and wear it. Learn to cook all meals at home using simple ingredients. Share expenses / rent if that fits in with your plans. Learn to fill your time with free or inexpensive entertainment. Learn to spot lifestyle creep and advertising that promotes it. Learn to cut your own hair. Buy quality items but only when needed not when wanted. Barter for high dollar services. I'm sure you are getting the picture.
Don't allow society to push both parents into the workforce. Children benefit greatly by having one parent at home until they enter school and even more so in the afternoons when they reach the tween / teen years.
Solid family life can still be accomplished on a modest income.
1100 isnât big. Average rent nationwide is 2000
not bad for a mortgage, but what is avg. rent in the middle of the country excluding the coasts
This man will make it. He has to double his income. But he can do it.
Yeah $80k with no college is super easy!
@@Treerootz1 There's 168 hours in a week, standard work week is 40 hours......if there is a will there is a way...
@@Treerootz1 itâs not hard
@@reese85 Depends where you live but yeah he can do it.
Over 50 percent of take home pay is not unnormal today do these guys realize this? Itâs impossible to even rent a place that isnât greater than 50 % take home pay.
Especially in canada ! 50% become the norm which should break at one point ! How is it sustainable at 50% ???
Theyâre getting lost in the numbers and forgetting the game. This man needs to hold on to the house and concentrate on making more. Rent could go up 20% in two years, like weâve seen.
Exactly. They gave horrible advice.
You're not looking at the risk. If dude doesn't make money and falls behind on mortgage he's gonna be thinking about bankruptcy
@@CG-uk1vz The only one who gives good advice is Ramsey.
Keep the house, the wife HAS to work though. If they could double their income to 80k combined things would be better. Maybe they have family in the area that could help with the kids for cheap.
I agree with you!
He has no other debt and rent will cost the same anywhere else!
GET A BIGGER SHOVEL! đȘ
But they have an one month old baby. Have you noticed the cost of daycare latey!?! It's like having a second mortgage.
Yep wife can get an at home remote job thereâs so many out there definitely doable !
Yep she needs to get a job and please donât have any more kids anytime soon.
@@nicolecharles3180 she gets a night job,
The loan officer who approved this deserves to be firedđ±
And the realtor who led them astray.
$1100 is a great mortgage payment!!! This was terrible advise. They need to buckle down and make it work until the wife is working. Once sheâs got an income, the housing to income ratio will adjust.
I'll never understand why people have multiple kids when they can barely put food on the table. It's not fair to them. đđ
SAD.. BUT TRUE
Agreed with you
@@krystal5887 lol everyone can afford a tv
@@ivanvargas2425 not if you don't the money for it.
It's not always about choice. Sometimes you're just blessed with a child even though you weren't trying. I hate this argument of "why do people have multiple kids if...?" because of that reason. I know people who have actively tried not to have kids, but they were still blessed with kids. God chose for that kid to be born.
I disagree with selling the house. I totally agree with both working. And he getting another job.
Houses require a lot of work. Mantience and taxes. He shouldn't have gotten a house he couldn't afford.
@@trecero5558 bank couldn't have given money out to them
How and why did the mortgage company/bank approve a loan based on their income, thatâs part of the problem.
They do this all the time currently. I have a ton of people reaching out to me on taking out additional loans to pay the additional taxes etc. The bank are still giving out bad loans like candy
That's exactly what I was going to comment on here!
Fha/usda
My heart goes out to this man, and he's hurting. I hope he finds a higher paying job.
Yeah, income needs to come up. Even another 10k annually would provide huge relief here. That's a part time job for the wife. I'd keep the house. Use it as a motivator to change your life for the better.
Send me a direct message right away
Horrible advice from Deloney. Thereâs no way heâs renting a decent 2BR apt. For less than $1100/month. This is about income. In todays climate, this guy could easily make $60k/year in retail management. His wife could pick up at least $1500/month doing door dash part time. Donât over complicate this.
He is in Oklahoma If he can buy a 3 Bedroom house for 195K, he can surely rent a 2 Bedroom for under $1100/Month
@@codegeek-il5fm not a clean, decent one, thatâs in a safe area to raise a child
@@codegeek-il5fm they should keep the house because even if they did find a rental for under 1100, I can guarantee the next yr it will go and the next yr etc.
They would of wished they kept the house with a set payment.
I donât like the argument of home repairs being costly. Most things can be DIY for cheap, get on CZcams lol save that money, get scrappy with it
We have to stop using words like home ownership and bought. When you buy something its 100%. When you own something you own it 100%. Stop saying you own something when you don't have the title and deed.
Even when you pay off the mortgage your don't truly own it cause you have to pay taxes every year or they will take it. đ€Š
@@shanep2760 I mean u pay taxes on everything so it is what it is. Taxes only is better than taxes and and mortgage.
You are correct !
Rent will always go up. Your mortgage won't.
Yeah.. I'm not sure why they told him to sell the house..
True but you donât have to come up with the money if something breaks.
@@dinospumoni8860 Thing do not break as often as Dave makes it out to be.
@@dinospumoni8860 yes, you do, that's why they raise the rent. Taxes, insurance, wear and tear.
@@dinospumoni8860 ya but you can continue to live in a house with a leaky roof or a broken AC and alot of stuff you can learn to fix yourself. When you rent and they raise the rent more than you can afford you are out on the street homeless
I bet daycare for an infant is $250-$300 a week. His wife needs to do daycare in her house for a child under 18 months old and that covers the mortgage. Later, she can add another child and double her income.
I think this would be the quickest solution, but he has to earn more, too.
$40K with a wife and three kids? This gentleman is living below the poverty line. Even in Oklahoma. He needs to get that income up to at least $60K, and I do think itâs possible. Heâs going to have to spend a lot of time looking at whatâs out there.
Not that I condone this but he can get like 1200$ a month in food stamps easy but his wife needs to start putting in some hours
If that's the case then he can get a bunch of financial help which would really ease his issues
But as I long as I move from California I can afford a house elsewhere! đ
Where do they keep all these 40k and up jobs you're talking about? I live in Central Valley California and the only people I know who make more than that are mechanics and police officers. Most people who work regular jobs don't make money like that. Unless they work 12-16 hour days.
@@Stanzi18 Well the way I did it was I got into a steel fab shop with no experience through a temp agency, learned the job, got hired on full time, spent a year there being way underpaid, then with my year of experience I had jobs available to me that started at 20 an hour (about 40k per year). More experience would've brought that number up. Welding is a good way to make good money fast if you're good at it. There's ways, people just ignore them because they're hard lol
I'd like to see a follow up on this. I have to believe Dave wouldn't agree with George and John. If he sells the house, he is throwing away all the money he paid for closing costs and losing basically all the equity in his house - so that he can go from an $1100 mortgage to an $800 apartment rent. There is NO WAY $300 justifies that.
He could get a weekend job and simply make an extra $300 if that's the make or break. At the end of the day, he has an income problem, not a mortgage problem.
Yeah but it would be all for nothing once something breaks and he doesn't have the cash to cover it. Then it's lik a dominoes affect...everything goes! He is not really in a position to own right now because ownership is more than just the fixed cost mortgage. It's all those little variable costs that you must have wiggle room in your budget for and that only happens with a larger income than he has. They need to sell and stop having kids.
I hate when Dave isnât here because these guys donât think how Dave does
They literally just said pre approved talking points
@@BrezzyBoi33 exactly. Dave tailors his advice to your exact experience
@@joeyf6103 no I mean they only say exactly what Dave letâs them say. All of the calls are the same with Dave or without
As dave would say, this is an income problem. I don't think there are cheaper houses now. If he made 60-70k they would be fine. Also, the wife should work part time..or both.
This is one of the reasons why our society has to stop pushing home ownership on people, and instead first advocate for people to have high income first before getting into home ownership. Its not for everyone until you obtain proper skills and a high income.
Send me a direct message right away
Same with making children.
Agree - get in good financial shape first & decide if home ownership is a good fit for you
If rent is the same cost as the mortgage, why not stay, get a second job, and make extra payments/build the emergency fund.
becouse mortage there going to be a lot for repairs.
he need to get a second job.
The caller never said if that 1100 includes real estate taxes and insurance you also have upkeep with the house
exactly! Get a part time job, literally any where , even as a waiter, fast food- anything!
@@debbieframpton3857 I would imagine when they called in to see if they can afford their "mortgage" that they would include the total cost/payment they make each month.
He's unprepared for what problems will arise with the house. Financially unprepared. Sell the house. Too much stress.
Why sell the house??? No, no, no. Get a second p/t job, dad! I've been there as a single mom. I kept the house, worked more hours and I was able to make it. This is temporary. Don't sell! You won't have to worry about a landlord selling his rental and having to find a place.
If he sells, he has to pay real estate commission
My heart goes out to this young man. I really hope that through drive and perseverance more doors open up to him and his family.
This guy had the cart before the horse. Career before starting a family or buying a home.
Don't need a career, just a well-paying job.
I'm retired
@@aolvaar8792 Same thing.
@@untouchable360x
Noun:
an occupation undertaken for a significant period of a person's life and with opportunities for progress.
If you change jobs to another field of knowledge every few years>> not a career.
actually in these uncertain economic times getting in debt or having a family would be a major financial risk
To be fair, their situation would be a lot worse in CaliforniaâŠ.
They need more income badly. The house isn't that expensive, just their deposit was so low.
John wants him to sell the house and rent?
Did he here him say that rent is the same cost as the mortgage payment?
Yes horrible advice. Heâs so young and able to grow financially. Invest in more opportunities to up the salary. In a few years kids will be in school and she can work more. They have a bright future
That's the Ramsey answer for any problem: "sell it!"
I needed to hear this. Isaac and I are pretty close on cost of house, income, mortgage, kids, whole nine yards. My wife lost her job and we are falling far behind due to a few emergencies. I'm going to favorite this video and listen to it every day.
Mom can work nights or weekends. Especially weekends when daddy is home. Thatâs put to 2/7 more income. Depending on min wage in the area, it could be a nice amount. Enough for food maybe.
It wonât help to sell the house, rental wonât help at all and equity will help in the long run. Assuming property tax isnât too much.
Agree. Donât sell! They can make it. If they rent and the landlord increases the rent next year, theyâre in the exact same position
Yeah I see no point in selling a 195k home. He may increase his income significantly in 10 years. He would look back and see that it's a steal.
That's what me and my girlfriend did. I worked 5AM to 3PM, got home, took the baby, then cared for her till 1AM when mom finally got back home to care for her and I could sleep. Not exactly a sustainable model, but you gotta do what you gotta do to care for your family
Wife should do babysitting. Full time daycare is about $500 a week. Charge $200 - $250 and there's your extra $1000 a month. Or clean houses, although most people want that service during daytime hours.
Minimum wage is low in OKC but they are having labor shortages like everywhere. She could get an evening job when he is home. Depending on skills she may have to get a server job or hotel clerk. Anything really.
They have a major income problem. He needs to update his income dramatically or that wife needs to get out and get a job like part time on weekends, night shift, something. I honestly donât understand how the brokest people want to be stay at home anything đ I wouldnât sell the house with high rents. This advice is HORRIBLE, donât do it guy. Do they not see what landlords are doing with raising rents unless OKC has laws in place for rent caps that will be a huge gamble that could cost them more! The bright side is they donât have a lot of debt.
People honestly make it seem like itâs more economical for both parents to work. The cost of childcare sometimes outweighs the income of a wage worker. I paid $420/week for two children have to be in childcare. That was more than my rent and car note combined.
@@ValarieIsBeauty this is true, you have a good example and youâre right in some instances it would be cheaper for a parent to stay home as opposed to paying for childcare. This caller on the other hand, they canât even afford to do that unfortunately.
That mortgage isnât the problem, itâs having kids ! A single guy can easily pay that rent/mortgage.
Really? He can get rid of the mortgage (although I wouldnât advise it) but not his children! Children are not the problem-irresponsible parents are. Stop blaming innocent children! Whatâs up with everyone being anti-children in this day and ageâŠ
Sure you can't blame the children for coming into existence. But having the responsibility of looking after them definitely limits the couples potential for working and making money
@@gcalderon15 I never said âkids are the problemâ I said âhaving kidsâ. Having kids you canât afford yes is irresponsible parents !
@@BAD_GRIM "having kids" is not the problem. But yes, having kids when you can't afford them is.
@@gcalderon15 touché
KEEP THE HOUSE! Get the income up! Don't know what interest rate is on the mortgage, but it's likely worth keeping.
Don't sell the house. Wife getting a job and him increasing his income makes more sense. I live in the UK and the days of one person being the bread winner if you want to own a house have been long dead here for years, imagine the US heading the same way. Good luck to them đȘđ».
How do people get approved for houses. It's like they dont' factor in debt.
Is called predatory landing set up to fail !
@@sb9697 I thought after 2008 they tighten up the restrictions.
@@Rashaadthegr8 You thought wrong. Banks are crooks they would love to steal your down payment and your equity in a foreclosure.
@@generalvanman8270 Yep.
Always a mistake to buy too much house. Whatâs the point? To impress others? No one really cares that much. You gotta pay the bill
How did they qualify for a house with only $40k household income? Is this 2008 all over?
Rent cost the the same or more than owning . And then the rent goes up .
Roof leaks, ac goes out, rooms flood or window breaks. Trades people charge over $100 per hour for repairs. Homeownership is not cheap
@@joyaustin6581 you can keep living in a house with a leaky roof or no AC. You have money troubles and you renting you are homeless
Daycare and after school care is going to eat up her salary quick. She is better off getting a weekend or night part-time job so someone is always home with the kids. I agree that they shouldnât move either. That mortgage payment isnât terrible. She needs a part-time job while he looks for something with a higher pay.
$1100? That's a freakin breeze. I would definitely not sell this house, (if they like it.)
The problem isn't the house or the mortgage, it is the income. Even if he rents, he's paying $1100 /mo if not more.
$1,100 x 12 = $13,200 THATS an easy Part time job
John said exactly what I was thinking. I never forget Dave telling people to âbuy a house 3-5% down nowâ people are panic buying and the payment is too much
Good luck man!!! Praying for you and your family.
He did good finding a house for 195 that can fit three kids even down here in Louisiana my brother canât find one in a safe neighborhood with good schools for less than 250 and he only has one kid. Pre-lockdown you could do that for 150-200
250 is a give away. I had to spend 600k in ft myers for what a i need. years ago that would have been 350
I agree
Should have never been given a loan, feel for this man.
I have been in the same position..
Fha and usda loans....so easy to qualify for its shocking
God bless this guy. Praying for your family. Stay strong đȘđŸ
Daycare in your home. Offer Babysitting service. You got this!
Huge mistake to sell. Focus on income not on selling a house to rent for more. They are in the situation - work out of it.
The wife doesn't work of course. $40k is too little to live anywhere.
I made $43K/yr in 2011 and bought a $50K home.
I'm sure glad, I didn't listen, Now $500K.
Also, "anywhere" is a totality word.
Rural New Mexico, $40K is enough
Women are supposed to be at home barefoot and pregnant like God intended
Hard truth is that he shouldn't have been popping out kids making $40k a year, I don't think $40k is enough to support even one kid.
Keep the house just work extra
Itâs baffling that he can get approved for that much house at only 40k a year in income. Crazy.
This! What underwriter approved this đ
I was able to get approved for a 225k home when I made 42k (I didn't buy despite being single with no kids at the time). I am not surprised at anything with loans now a days. They approve student loans to kids shouldn't be in college so this is not much different.
The guys really flounder without Dave đ€Ł
Hey tell this man and his wife about the remote jobs out there these days. I just got a job offer for a fully remote job with PNC Bank starting at 48k per year.
Wow! Thatâs awesome. Is there a degree required? I have a BA degree.
@@chelsea6339 Some jobs do but actually many do not. My job does not require a degree Although it kind of helped me get in the door
@@chelsea6339 no degree require but it helps
I LOVE HOW HE TOLD HIM TO LET GO OF THE SHAMEâ€ïžâ€ïž
Just get a 2nd job for the time being. When the youngest is a little bit older ,mum could get a part time job on weekends or evenings. Everything will be ok. He's doing a lot better than he thinks he is.
Words of Dave Ramsey they had house fever and it was no good
The wife needs a job, but daycare costs more than the mortgage
You got to have dual incomes as an average working class family who wants to own a home. Housing is a luxury item now and this guy can't make it in Oklahoma!? We have problems.
âHousing is a luxury itemâ so true these days.
With two small children not school age? The wifeâs income will all go to childcare. And then who is cooking? Another expense. She is more useful at home. The manâs income is the problem here.
At least this situation forces them to focus on a career field that will provide a higher income when looking at additional schooling, unlike many college kids with no idea of the real world.
How on earth did he get that mortgage, lenders should be more careful to who they get into debt !
RIGHT..THIS CAN CAUSE STRESS.AND THAT MAKES PEOPLE DO CRAZY THINGS.
It's 2008 all over again.
Do not sell the house. Wife needs to find a job to contribute. Saving $300 a month extra by renting will not make a huge difference in rebuilding emergency fund and saving again for a big down payment. It would be much easier for wife to find a side job that makes at least $300 a month.
I would probably keep it and pray nothing goes bad in the next year while you make more money.
Hopium is not a good plan. Better to take action and make it happen.
DONT SELL THE HOUSE. Boost income, see how that goes, then re evaluate if needed. Selling a home is expensive and renting is nearly the same monthly.
Rent out part of the house, like a room or the basement.
Get the grandparents to look after the kids, and mom goes to work.
I would of said, do not let your wife get another job. One month old requires all the attention. He needs to go get another job and keep that tight budget.
I am really confused. 2186 x 12 = ~26k. Where is the rest of the 14k? I don't think 14k is being withheld in taxes.
It probably is.
Hmmm maybe they also need food, gas, utilities, clothing? Just a thought.
People also do other things like 401K deductions, other benefit deductions, etc. Also, may be they are withholding too much tax and will get a refund when they file taxes.Lot of factors go into your final take home pay calculations.
Sounds about right. Taxes, health insurance cut for a 5 person family. Fica, ssi, all the other BS.
@@whatsup848 you never include that in terms of take home pay. Learn how to calculate DTI.
My goal is to live in a tiny home on 5-10 acres by 2025. Eventually want to buy a Garage/shop outright once Iâm maxing out my salary. Living on rice and beans đ.
This guy has a real story, typical of lots of people 50% of an income is a lot to pay but they should keep the house and what's the alternative pay rent and own nothing forever? They can do this. God bless him and his family.
Rent keeps going up. His mortgage payment is fixed. Donât sell!
I wouldnât
Sell the house đĄ he needs more income wife needs to find a full time job
Doesn't even have to double his income. Just a 50% increase from $40K to $60K will do it. Get a raise, change jobs, and work weekends. And/or have the wife work nights or weekends. Something has to change if you want to keep this house.
The biggest lesson Iâve learned from watching Dave Ramsey is to call into the show before I make the house purchase.
$2,200 a month is 26k a year. How did he round up to 40k? How did he even get into this house with his income?
They have three kids. Their no way I'm going to a two bedroom apartment with three kids. The marriage wouldn't survive it.
Send me a direct message right away đđ
For financial advice and investment plans
Ummmmm she needs to work and stop thinking about it.
Stop popping out kids
Rooting for you Isaac. You got this!
I remember when I made $40k. I thought I made it lol this was back in 2015. Even so, I consider that my first big break đ
Same here but back in 2011, I thought I was rich! $40K now is almost an insult!
I made $20k in my first teaching job in 1984 and I never made so much money in my life!