The Ramsey Show – Should We Wait for Interest Rates To Come Back Down To Buy a House?

Intro

In this episode of “The Ramsey Show,” host Dave Ramsey is joined by co-host Ken Coleman to help listeners with their career and job-related questions. They also provide valuable advice on various financial topics, including student debt, property ownership, car payments, and more.

Main Takeaways

Student Debt and Career

• Macy and her husband are considering waiting for an employer to pay off their student debt instead of paying it off themselves.
• Ramsey advises Macy to be cautious of offers that come with serious commitments and golden handcuffs.
• Waiting for an employer to pay off student debt can be risky, and it’s better to pay it off yourself if possible.
• Look for graduate scholarships, they’re more rare than undergrad but they exist.
• Start with the advisor department of the school he’s attending for grad school.
• If no luck, dig around in the nursing and psychiatric nursing world for potential employers or industry players that might have scholarship programs.
• Be cautious of long-term commitments for short-term problems when considering employer-sponsored student loan repayment.
• If an employer is willing to pay off student loans as a signing bonus, it could be worth it if the commitment is reasonable.

Property Ownership and Taxes

• Quit claiming a property to a 7-year-old without consent is inappropriate and can have potential legal repercussions.
• If a property is put in a child’s name, they may be held liable for any lawsuits or taxes associated with it.
• It is important to pay property taxes as the state can come after the owner if they go unpaid.
• It may be helpful to have a real estate lawyer when dealing with property ownership.
• A trust may be a good option for property ownership.
• Selling the property and using the profits to pay off debt may be a solution, but the title may not be clean.
• Hillbilly estate planning is a common occurrence where people make up their own rules without consulting professionals.

Financial Advice and Investments

• Extended warranties are a complete scam, covering only 12% of the cost and the rest being marketing fees and commissions.
• The finance manager makes more money on selling debt contracts and extended warranties than on the sale of the vehicle itself.
• It’s important to get back into routines during the school year and prioritize responsibilities.
• Prioritize sleep for your physical and mental health.
• Teaching high school business and finance is a passion because there is so much knowledge to give back.
• Gainfully employ yourself instead of relying on retirement reserves.
• Teaching basic financial literacy can be a way to give back.

Debt and Wealth Building

• Getting out of debt is a key step towards building wealth.
• The first baby step is to save a thousand dollars.
• The second baby step is to become debt-free everything but your house.
• Following the steps and budgeting can lead to a million-dollar net worth within five to six years.
• The power of focusing on paying off debt supersedes investing temporarily.
• Sacrifices such as cutting down on expenses can help pay off debt faster.
• Tightening the budget can lead to being debt-free within two years.
• Sacrifices and focus are what get you out and keep you out of debt.

Job and Career Advice

• Skills and experience from a specific job are transferable to a similar industry.
• Don’t limit yourself, you have a lot to offer and connections to utilize.
• Communication is key in explaining your situation and flexibility to potential employers.
• Taking care of loved ones is more important than money and career.
• Financial discipline and a strong value system can provide options and choices during difficult times.

Summary

Student Debt and Career

Macy and her husband are considering waiting for an employer to pay off their student debt, but Ramsey advises against it. He highlights the risks involved in such offers and recommends paying off the debt themselves if possible. Ramsey suggests looking for graduate scholarships and exploring potential employers or industry players that might have scholarship programs. He emphasizes the importance of being cautious of long-term commitments for short-term problems and considering the reasonableness of any employer-sponsored student loan repayment offers.

Property Ownership and Taxes

Ramsey provides valuable insights on property ownership and taxes. He cautions against quit claiming a property to a child without consent and explains the potential legal repercussions. Ramsey advises seeking legal guidance, such as a real estate lawyer, when dealing with property ownership. He also discusses the importance of paying property taxes and the potential consequences of unpaid taxes. Ramsey suggests considering a trust for property ownership and warns about the risks associated with selling a property with unclear title.

Financial Advice and Investments

Ramsey exposes the truth about extended warranties, highlighting that they often cover only a small percentage of the cost, with the rest being marketing fees and commissions. He emphasizes the importance of getting back into routines and prioritizing responsibilities, including sleep, for physical and mental health. Ramsey encourages listeners to gainfully employ themselves and consider teaching basic financial literacy as a way to give back. He also advises against relying solely on retirement reserves and emphasizes the value of teaching high school business and finance.

Debt and Wealth Building

Ramsey emphasizes the significance of getting out of debt as a crucial step towards building wealth. He outlines the baby steps of his financial plan, which include saving a thousand dollars as the first step, becoming debt-free except for the house as the second step, and creating an emergency fund of three to six months of expenses as the third step. Ramsey highlights the power of focusing on paying off debt and making sacrifices, such as cutting down on expenses, to accelerate the debt repayment process. He encourages listeners to tighten their budgets and stay focused to achieve debt freedom within a relatively short period.

Job and Career Advice

Ramsey and co-host Ken Coleman provide valuable job and career advice. They emphasize the transferability of skills and experience from one job to another, encouraging listeners not to limit themselves and to utilize their connections. Ramsey and Coleman stress the importance of communication in explaining one’s situation and flexibility to potential employers. They also highlight the significance of taking care of loved ones and prioritizing personal values over money and career. Ramsey and Coleman emphasize the role of financial discipline and a strong value system in providing options and choices during challenging times.

Conclusion

In this episode of “The Ramsey Show,” Dave Ramsey and Ken Coleman address various financial topics, including student debt, property ownership, debt repayment, and career advice. They provide valuable insights and advice to help listeners navigate their financial journeys and make informed decisions. Whether it’s paying off student loans, managing property ownership, or building wealth through debt freedom, Ramsey and Coleman offer practical strategies and encouragement to achieve financial success. Tune in to “The Ramsey Show” for more expert guidance on wealth building, career growth, and creating amazing relationships.