Dylan from Massachussettes calls Dave, he is 25 and makes $85,000 a year, and his monthly expenses are roughly $425 a month. What could be wrong, right? Well, he is currently living with his grandma while sitting on $22,0000 savings. However, Dylan wants to buy his own home but is not sure where to start. He helps his grandmother with monthly expenses like groceries and what not but what is his next step? Fortunately, Dave states with his current lifestyle he should be able to build up savings rather quickly. Finally, Dave states that if he has any hidden debt, pay it off, then move up to baby step 3, which is to get 3-6 months’ worth of savings.
First, Dave wants Dylan not to pay more than 15% of his take-home pay when buying the home. This is on a 15-year loan and would help prevent depleting his 3-6 month savings from Step 3. Secondly, Dave wants Dylan to figure out, though, if that is what he wants. Dylan states he already had a house and that the only reason he sold it was because people started developing too close to him. Currently, staying with his grandma is nice and stress-free, but he misses owning his own home.
Dave Ramsey’s 7 Baby Steps for Financial Success
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