If your private student loans are in default you're not out of options go to yrefi.com slash Ramsey Do you guys think college students nowadays have a better chance of being just as or more successful than our parents in today's world I asked this because as a college student myself, it's about to graduate with no student debt I have a $50,000 save and I have a job lined up fortunately for the state I live in and away from family I'm nervous to move out and I know a lot of people my age in the situation for the same way But I know a lot of people are nervous and don't know they can move out financially But do you think people in today's world? It have the same chance that our parents did and also people in my situation. What can you give to them? That don't know if they can move out financially.
Well, you do have the same chance. I don't think you know You get into a crazy game if you start going well, what are the chances back in the 60s and you know that probably seems like ancient history to you But no, I think college students have the same exact chances of being successful I think they have some things that are going in their favor I think that older generations you might be able to say well Maybe they had a couple of advantages because of this But the one that sticks out to me George is the student loan issue that just was not a handicap to people that are older Yeah, but in your case Jeremy, you you're the asterisk. You don't have any debt So I think the second question is the one that we can tackle And that is how do you overcome this barrier to entry this thought process that oh I can't live on my own I can't move away George. You want to tackle that one first?
I've got thoughts. Oh, yeah So what was your what's your job situation right now? Well, I'm from Dallas, but I have a job offer a separate state away from family I would get a stipend to take the position and move out. I'd also get a free vehicle and Entry salary is sixty five thousand before sixty five thousand with a car.
What's the stipend? Ten thousand I mean bro, I don't and what is your actual fear here because there's not a math problem Are you wondering can I afford rent? I would prefer not to rent but more of a mortgage. Why would you jump into a mortgage right out of college in a city?
You have never lived in what's the rush? I guess it's just because my dad he has always told me not to rent and I guess that there it is So dad said renting us a waste of money, son You should become a homeowner Yeah, and that's the in the back of your mind dad is not gonna be proud of me if I rent Yeah, and he's gonna be telling me how much I need to get into a house every time I talk to him Yeah, is he covering your down payment? No, my girlfriend's mom if she would be willing to go with me, but if that's not Okay, Jeremy this entire call you have sounded like somebody who's way ahead of the game and on top of it And then you just through the ultimate curveball. You're considering buying a house with your girlfriend's mom Yeah, does that sound in any way risky to you?
It's true. I'm just trying to be serious. Did you think that sounds smart? No, have you told your mom and dad that you're considering this I have what they say They just are a lot and they like the family and if she's willing to Do that they were fine.
Okay, I'm gonna bring George in because George loves to tell horror stories George Let's fast forward for the desk at my jaw for real quick. I gotta tell you Jeremy. This is absolutely Ridiculous that your parents haven't freaked out over this your parents are good people. Are you trolling us Jeremy?
Are you trolling us? Oh, is this a fake call? No, I'm not all right George. Where's this go?
Let's let's say the girlfriend take us down the all the things You're gonna call us in a year and here's gonna be the call I sunk all of my money into buying a house with my girlfriend's mom and we just broke up Yeah, what do I do she wants to keep the house? Mm-hmm, or I want to keep the house Do you see where this is going? It's gonna get messy real quick you and her you're not even the girlfriend which we would tell you is stupid This is the girlfriend's mom, which is next level stupid already planning to live with your future mother-in-law It's just a bad plan relationally. So here Jeremy.
Here's what I would do. It's not funny I got to tell you I don't think anything about this is funny If I waved a magic wand you would move out take this job offer rent Maybe even get a roommate or two to help you stomach the finances and just learn to live on your own for a little while rent For a year or two keep stacking up that down payment with this new salary You have and then a year or two from now you have a hundred thousand dollars saved And that's actually a decent down payment, you know on the cost of a home these days And so once you get into that do 15-year fixed rate mortgage with payments no more than a quarter of your take-home pay That's gonna allow you to pay off that home really early And then you're gonna be financially free at a very young age But if you shortcut it that scares me because you're gonna fall flat on your face and you are off to a great start Here's what I don't understand. I thought you said you were moving away from where you live Yeah, I would be so where does the girlfriend's mom come into the equation? They would be Tennessee.
That's where you would be moving. Yes. Oh, you're moving to be in the same place as your girlfriend Yeah, yeah, and the job offer is there So I kind of thought of it in this way is more of like a way around things so that I wouldn't have to there's not no no That you think this is a way around something to whatever not pay rent be smarter with your money This is a way into a massive massive pond of scum and disgustingness and danger and all kinds of stuff You don't even know if this girl's the one for you, do you? That's really great.
Well, then what are you thinking you don't even know if we want to marry her? I'll tell you what if you're me on your my younger brother I'd reach to the phone and cuff you right upside the head because this is crazy talk You are too smart for this you got a great job no debt a stipend a free car Just go date this girl and let's see if she is the one right and then let's kind of check these boxes off I mean, this is craziness to me. You know like it's and by the way, I'm being fun James the producer looks like he's gonna swallow frog I wouldn't violently hit you. I'm just saying like I'm trying to go snap out of this Like this is somebody needs to kind of grab you and shake you and go this could be a horrible horrible mistake All right, here's the TLDR just slow down such a good job And now all of a sudden you want to go 90 miles an hour and you're gonna get in a wreck if you live your life this way So just rent for a year or two or three who you're how old?
22 let's play this out boy at 25 you own a home. You know the average age of a homeowner in today's world No, it's like 38 years old. So you're already so far out of the curve You're already so more successful so much more successful than most Americans who are retired who are broke So if you just keep this up Leave your life debt for a rent on your own get a house when it makes sense and don't do it with anyone else unless you're married to them That's the key man. Good luck.
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