I Don’t Feel Like the American Dream Is Still Possible
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- เผยแพร่เมื่อ 9 ก.ค. 2024
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Fantastic video! I have incurred so much losses trading on my own.... I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong??
Same here, my portfolio has been going down the drain while I try trading,I just don't know what I do wrong..
Investing with an expert is the best strategy for beginners and busy investors, as most failures and losses in investment usually happen when you invest without proper guidance. I'm speaking from experience.
I think l'm blessed if not I wouldn't have met someone who is as spectacular as expert mrs Ella..
Highly recommended
Wow, I'm surprised to see Ella mentioned here as well. I didn't know she had been kind to so many people
I'm also a huge beneficiary of her..
I thought myself and my family were
the only ones enjoying Ella
trade benefits
Based on the Ramsey rules to buy the average home in America would require an income of $190k. Average home is $420k. With 20% down and a 15 year fixed at 6.8% the mortgage will be $2,961 a month, meaning you’ll need to earn $12,000 a month after taxes. Does that seem like a totally reasonable thing considering the average household income is around $70k?
For my grandparents the average home was 2x the average income. For my parents it’s was 3x. Today it’s 7x. Yes it’s possible but to say it’s the same today as it was for previous generations is so economically illiterate it’s astounding.
Does that mean you give up? Of course not. But this constant refusal to acknowledge reality doesn’t help anyone.
Thank you for this^. I'm sure Dave has heard and knows all of this, but he just continues to beat the same drum, with no willingness to accept that things are very different now compared to just a few years ago. If you owned a home before the pandemic, you are pretty much in a different economic class because of it
It's the inflation of all products that is the problem. We paid $89,900 for, our house, but right now we are told that our house is worth $156,000. We couldn't afford to finance our house, at today's rates. Thank God, we were able to pay off, our house, a couple of years ago.
Plenty of homes in the $200K range. $50K a year is enough. Mortgage rates are still at historic lows. Got it buddy.
@miketheyunggod2534 it sounds like you don’t understand what averages are
Real estate is very much influenced by location. Taking an overall average isnt really a great way to look at it. I took a job in philly vs boston when I graduated specifically because cost of living is much lower. Current median home price here is around 260k.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement
Consider investing in stocks especially during a recession . While recessions can be tough, they can also offer good chances to buy low and sell high in the markets if you're cautious. Just remember, this is not financial advice, but it's a good time to think about buying stocks since having cash on hand isn't always the best option.
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Dave failed to mention that despite those high interest rates, house prices were less than half what they are today as a multiple of median salary at each respective time.
Even more reason to be grateful that those high interest rates don't exist today!
And houses themselves were less than half the size they are today, speaking of medians. Smaller houses in one area are much cheaper than larger houses in the same area. If people would quit buying so much crap they don’t need, then there wouldn’t be a reason to buy a much bigger house in order to store more crap they don’t need
In short, if you really want to get ahead, quit buying crap you don’t need. Do I have to say it a fourth time?
Half??? Try like 20% the price. My house right now would sell for about $250K. In 1980 it would have sold for 50k
that's why i say even if you grow up on the street, work and become rich, as you became rich you loose a lil sense of reality on how hard life can be for poor people. but dave still GOAT
That might be so that house prices were much lower but he’s right in reframing the problem. Somethings were easier back then somethings were also much harder back then too.
Anecdotal but My cousin 9 years younger than me bought a house before I and most of my cousins at 25
From similar homes, we grew up together what did he do different?
He even bought property before his older brothers.
If this call came from a 30 year old instead of an 18 year old, they would not have focused so much on his age. The fact is Americans quality of life is deteriorating and many Millennials and Gen Z are facing major challenges in the housing market, starting a family, and just trying to survive and keep up with inflation.
@@DWEthiopia yep mid 30s n still same
Millennials shouldn’t have waited until the last 4 years to start their lives. Prices were great up until Covid.
American just discovered inflation and now its the culprit to all the problems. You had ONE year of high inflation in this country (~8%), because of those fat COVID checks the government sent to people, but that inflation is no more. Current inflation rates are declining in getting very close to the pre-pandemic ones.
@miqueiaspaulo1 🤣😂 sure they are 😆 compare now to the great depression the actual numbers and conversation to today's money . . . Actuality look then say what u just said 🤭🤯🤦♀️
@@miqueiaspaulo1 That is a misnomer. Their were plenty of businesses that also profiteered from the pandemic, but no one is blaming them for the even bigger checks via "loans" they received during the pandemic and didn't pay back, despite not fulfilling the guidelines to receiving the "loans."
Part of the inflation was due to supply chain and logistical failures during the pandemic and while we were making war with countries who supplied some of these products (ie, neon needed to make semiconductor chips is supplied by Ukraine as a byproduct of Russian steel which is used in 90% of all semiconductor chips). Due to all the shutdowns, companies could not receive certain products or they came at a slower pace, which played a part on the supply side of production, and causing a rise in prices.
But this is not it! Also, our proxy wars with other countries, and provoking certain OPEC countries, who have decided to "regulate" how much oil and gas is produced and sold to us at a greater cost, helped to increase oil and gas prices which increases the costs logistically to move and exports goods at a greater cost. And of course, energy is needed to make the products, and you can say also this has also contributed to inflation.
The Great Resignation also contributed to the rise in prices when workers decided they had enough and they could walk away and get a job elsewhere paying more affordable wages elsewhere, and leaving behind jobs that paid very little and could not sustain them--or grew tired of the mental and physical trauma of the workplace and leaving a big hole in the low-wage job market. [Some people blamed "the checks" in this area, but those couple of thousand dollar checks would not have sustained them very long--maybe a month and a half (tops, if living extremely frugally), but not long enough.]
And finally, the elephant in the room that very few have addressed--corporate greed. These larger corporations have been exuding with pride in the stockholder meetings how profits have never been so high, and their plans to make as much profit as they can during this crisis. Of course, there have been several recordings of multiple meeting from different companies made and shared of these stockholder meetings. And do these profits "trickle down"? No. Not to the employees and not to improve the product or it's standards. The profits are used instead to line the pockets of shareholders and corporate leaders and to artificially inflate their own stock prices--it's how they avoid any tax burden and it makes it look like their company is doing better than it's actually worth. It also gives the perception that the economy looks better than it is--as a lot of people look to the stock market rather than how well average families are holding it down during this crisis.
You can achieve the American dream. You cannot ignore that it's getting harder and harder.
Unfortunately, theres lots of people in the comments here denying that.
@@jer1776can care less about who disagrees with it. Inflation is up, groceries are up, housing is up. It is objectively getting harder to achieve.
Harder for lazy people😂
At what point is it considered dead though?
If 1 single person in the country can afford a home, the American Dream is technically not dead.
Right now at this moment something like 5% of prospective buyers can comfortably afford a home.
Is that still practical?
@@JudeDude409
Just harder for you to achieve.
Inflating the money supply by a trillion dollars every 100 days leaves us all poor
This will not end well.
That's exactly what it is. Massive government spending, debt, and inflation. Add in that a side of greedy boomers and housing speculation you get a recipe for borderline turkey shacks being sold as half million dollar luxury homes.
uh, they did that for the last year every year since 2020...
Thanks Biden.
Inflation is a hidden tax on the poor, AKA, anyone who does not leverage assets. That's why Mr. Dave's plan is ideal for most people. Buying a house with a 15 year mortgage and investing in broad market funds. It's a balance between financial abilities and max value.
Ramsey’s refusal to acknowledge that housing prices have doubled in the last 5 years and left a lot of young Americans hurting feels like gaslighting at this point. “No it’s always been that way” okay Dave.
My aunt and uncle bought a home back in 2001 in Orange County for a bit over $240k. Today it is worth $1.2 million. That’s an increase of about 5X. Their salaries? They’ve only increased by about 2x. Had they tried to purchase the same home today, they’ve would’ve gotten laughed at
10x 240k is not 1.2 million.
@@mustangthings I got trigger happy🤣 but still 5X the home price vs 2X salary increase is still a significant difference
When no one ever talks about, is that there are a whole areas, neighborhoods, suburbs, that are developed now that we’re not available before. So yes, it would be difficult to buy the exact same house in the exact same location, but there are other places to live that she didn’t have the opportunity to live in, which she was your age
Exactly but Bald Ramsey doesn’t like facts
@@user-qp2qe5gf9boh the coffee and avocado toast propaganda. Housing is still way way way more expensive relative to wages now. Seriously, how damn difficult is that to understand?
By the time that 18 year old is 30 years old, that same $600,000 house could very easily be $1.2 million dollars, that's the problem, and Dave isn't addressing that issue.
I got a cousin that is exactly what happened to him he was going to buy a house for 240 that was the price during 2019 he got the money now but that same house is worth 450
But that's no problem for the owner of the house, in fact it's great for them. So who is right?
@@kbanghartcontrary to what social media may promote, single family housing should not be an investment venture. It should be affordable for everyone (scaled to different income levels). You shouldn’t be buying a house with the expectation that you will make a fortune on said house in the short term….
First, easily? Second, what exactly do you want him to say?
@kbanghart
The problem is that when people can't procure housing, they delay or even forgo having a family, and then you have declining birth rates, and when you have declining birth rates, there's not enough young people to continue society into the future.
In 1980, interest rates were high and home prices were very low
In 2020, interest rates were very low and home prices were high
From 2022, interest rates are high and home prices are very high
Now it doesn't look like either is coming down soon enough.
All of this has made people who bought houses before 2022 extremely smug and arrogant.
And it has made people who haven't bought a home yet, go into despair.
I still don't think that the American dream is dead but it takes much much longer for a person today to own a home than those who bought in 1980.
Some compassion and understanding and dropping the arrogance will go a long way!
Interest rates are not high. They are medium.
@@amireallythatgrumpy6508 your skipping the actual math and only gawking at the numbers and going "goly g this here number is bigger than that one"
@@BerserkEscaflowne In other words doing the only thing that is relevant.
@@amireallythatgrumpy6508 you have to complete the math formula also
@@amireallythatgrumpy6508 you have to complete the formula all the way out the term of the loan then you can see the only thing that is relevant
He’s only 18? Man just live. Don’t injure your body. Stay healthy. Have a good spiritual routine. Get out of debt. Stay out of trouble. Be kind. Blessings will pursue you but don’t let opportunities pass you by without thinking hard about it.
No he's doing alright thinking about his financial future. If you live without a plan and then 10 years down the road you'll find yourself nowhere in life
@@blackspiderman1887this has been the sad fact for my childhood friends. I have a house, on track to get married and have a dual income house with fairly decent careers. All with no debt besides the house which is 18% of our income and we are on track to pay it off early. My friends I’ve known since childhood have zero plans for the future and make more money in their household than ours and they have 2 new cars, cheap 1 bedroom apartment and less than 1,000 in savings but they take vacations every 2-4 months. It’s sad that they could be much better off but are paycheck to paycheck and have firmly refused help with doing a budget or having me teach them finances. At the end of the day people with the want will prepare and people without will have to hit rock bottom to want the drive to succeed.
@@blackspiderman1887kind of is ,kind of it’s not, but no doubt we have a mental health crisis going on right now and thinking that at 18 with anxiety is the result of too much social media and “HEADLINES”.
@@blackspiderman1887 nobody said don’t have a plan. But even Dave mentions the Bible regularly. Jesus said it, Paul said it, and others too, read phillipians chapter 4 starting at verse 6. Don’t be anxious over money,wealth, or material possessions. That’s the point that I was making is that he shouldn’t be anxious about his livelihood unless there’s a major problem that needs to be addressed. Seems like he was just anxious when he didn’t need to be.
@@michaelcatalanottohandyman your advice isnt practical though. You said "have a good spiritual routine, get out of debt, be kind, and stay out of trouble and blessing will come your way. Well I got news for you. The world don't work like that. I have a friend who does all that and he's broke and lives with his mother over 40 years old. So if you're gonna tell someone 'dont worry" you need to follow up with more practical ways to take care of themselves other than "be kind and the Lord will bless you". The Lord bless those who get up and make things happen. He don't just let things fall in your lap because you're a kind person
We are in America. We are spoiled even when things are tough
Been to the Philippines...it's ridiculous how easy we have it here.
People I know there live in a Hut and still feed orphans
@@tristan2332
Been to Philippines and 64 other countries including Peace Corps in Haiti.
First world issues in the U.S..
This is objectively true.
But this is literally what the title to the video is about. The “American Dream” isn’t to live in a hut or a small apartment your whole life.
Stop watching the news people, it's not there to make you happy.
It's not the news that's scary to me, it's property buying websites.
@UltimateIrishRebel or even the store, car, house, kids . . . it's everywhere, not just the news
He’s not wrong. Housing is more unaffordable than any time in US history. Homes appreciated +50% since 2020 and now you have to finance it with a 7% mortgage. You need a family income of over $100k to buy the median home price in the US. I bought a $410k house last year and I spend almost 40% of my take home pay on a $165k salary to afford the mortgage, taxes and insurance.
Ramsey is so out of touch. Every thing was on easy mode for Boomers.
The truth is a lot of people are struggling out there. We are suffering and don’t know where our next meal is coming from. Student loan relief and a proper UBI would go a long way in helping us out. We could pay our bills and put food on the table. Why don’t George and Dave want that for us?
@@costco_pizza Reality precludes a proper UBI.
To say normal people were never able to buy a house on Long Island is just plain wrong. I grew up there. My parents were "normal" and bought their first house in Levittown in the late 70s on a single income (pretty median level job--nothing fancy or high salary). They fixed it up a lot, sold it, and moved out and up to the next house further out on the island, but still affordable and in a nice town. Things have rapidly declined due to a lot of factors, but nowadays, a single income family of 4 could never do that without being completely underwater with debt. So, it HAS changed quite a bit in the last 30-40 years.
Were your parents 18 when they bought this home? I’m guessing not. And again, you’re looking at one point in time and extrapolating it was always that way.
What went wrong on LI is foreign investment, and illegal flooding/blockbusting. Not to mention out of control taxation and overpaid public employees.
@steveguillory7568 mine were 25 in 1990 when they paid $200k for their home while making $75k. Inflation adjusted their income was worth about $150k today. That $200k home is now worth $1MM. No one making $150k has any business buying a $1MM home. You need to earn twice as much to buy the same home as your parents.
Did you even listen to what they said? Apples and oranges is what you’re comparing. You’re trying to make a point out of nothing that Boy is 18. They’re talking about him as an 18-year-old. Being able to afford a home and no 18-year-old being able to afford a home at $600,000 unless they won the lottery.
@@nailatiylluf ok let me try this a different way. How much was that home in ‘05 before the gfc? How much did it fall by 2012? How much more affordable was the home in 2019 vs today? Yes, things are hard right now. Doesn’t mean they’ll never improve.
Social media as well with young people pretending to be so rich is really messing up with people’s expectations.
It’s not dead, but it’s only getting harder. This kid has the benefit of being smart at 18 and not piling on the debt. He should do well
It's actually easier because nowadays there are jobs everywhere and the convenience of everything is amazing. Back in the day, our ancestors had limited choices.
@@vickieclark5931 true that. if you cant walk for example. the american dream would be dead for you back then. now you can do soo much while being paralyzed.
What are these responses, I feel like they’re boomers trying to gaslight younger generations.
I think Dave's mostly right but the part he's missing is even when interest rates were 17%. The overall cost of the home was still lower relative to the average income. He's a math guy so he should know better. But 17% on a $30,000 home is wildly different than 17% on a $400,000 home.
Right around that time ppl said they paid 15-25k for tthere homes ? Comparing that to this economy is just crazy talk Dave has the worse advice I’ve ever heard his advice is for rich ppl no one is making a 15 year loan quarter take home pay mortgage lol ppl can’t even afford a 30 year mortgage anymore let alone double that lol
@@xsgtxbigboy1655 Very small 1000sqft plain jane homes were 40,000 in 1980, Atlanta surburbs. They went up from there but then again in 2011 when the market was flooded I was finding Medium size HUD homes for 40k in the suburbs of Atlanta. I bought my rental home that year for 25k cash! It is a 973sqft 3b/1b with carport in the City of Hampton. Things change and SEARCH for bargans.
@@xsgtxbigboy1655 However they also only made like 5k a year.
Don’t buy a $400k home. Buy cheaper,rent ,or live with parents.
Simple and up to you.
In the 90s I got pre approved for a 150k mortgage and pushed hard for me to buy a $150k home. I bought a $70k condo.
17%? that is not the interest rate right now. It's more like 7 or 8% for house loans.
It’s in the numbers. Here in Canada (at least where I live in Ontario), the average home price is over $900,000. I just bought a starter townhouse for $475k but could only put down 15% and the amortization is 25 years. The whole “15 year fixed mortgage where the cost isn’t more than a quarter of your monthly take-home” Dave talks about isn’t mathematically possible. It just isn’t. Not unless you put down 60% or are in the top 0.5% of income earners.
I make $81k, wife makes $30k, we have a $370k house and have a great American dream household. We didn't go to college, we just got technical certifications and worked hard and pinched pennies.
When did you purchase the house?
I love hearing this 💗
Do you already own the house, or you still are paying a mortgage for it.
@@nadyadobreva9904 they likely bought it in 2020 with record low interest rates before the market blew up. Like most others probably couldn’t afford it today
@@JeffTheTrader Do you own a home?
Japan has 100 year mortgages to make the dreams possible 😂
Those were more common there in the 80’s and 90’s
Who he hell wants a 100 year mortgage?
@@navigator72
Hawaii has 99 year lease last I checked.
@@navigator72 someone who wants to qualify for a house.
Don't be stupid and make minimum payments, pay that bish off in 10-30 years.
@@navigator72 It's funny because I think "mortgage" literally is latin for "dead pledge".
When my grandpa grew up he was able to save the money he made from a few years in the military and bought a 40 acre lot of land with a farmhouse with no mortgage or loan at all, in 2024 not only are you not able to save due to rent and living expenses eating nearly all expendable income of an average wage, you need to go into 30 years of debt where you end up paying twice as much on a house that you will never really own anyway because lets face the fact that even when its paid off you get the privilege of continuing to pay ever rising rent to the government in the form of property taxes. Not only is the dream dead but the nation itself will go the way of the Soviet Union. There's a reason that the vast majority of American financial and economic experts have second passports.
“Hold my beer” 😂 17% interest rates
Average house price was 69k in 1982.
@@brandonwoodard1515 Right but minimum wage was also $2.75 in 1982 also...so...
The inflation of housing to so high that working for an hourly wage of 20 to 35 dollars an hour is not enough to puchase a house and live the American dream.
I already paid off my first house, and I am kicking around buying my 2nd. And do I make $35/hr or above? Hell, NO!
I don't know where you're getting this idea that it can't be done.
I think where you live plays a huge role in achieving that. Props to you, though. @paulstandaert5709
@@paulstandaert5709any average person knows he is correct. Funny how wealthy and boomers just cant get that through their thick skulls.
“Work 5 extra jobs !” Is what the Ramsey show would say
@@Mo-wq1oq yeah man gotta move somewhere that you can afford that has no jobs and is run down
My son is 30, single, elevator mechanic and just bought his first home in Austin, Texas.
He waited until it was the right time for him.
With a mortgage or paid it fully?
@@nadyadobreva9904 I would guess a mortgage. Also he probably has a spouse helping him (I did too at that age 10 years ago). Some people house hack and rent out rooms or buy a duplex and rent out the other half of the building. Home ownership isn't like what you see on TV. People sometimes have to make it work.
My ex and I bought around age 30 also. The right time to buy a house is when you can afford it. That situation varies by individual.
@@GigaChad_169 its says single
@@jmanrock11 Good point. Even better for him!
Dave is still living in the past. Wages have not kept un with inflation.
In the 80's, you can get a house in NYC for for 50k. Now it's like 20x more.
Pay did not increase that much.
C’mon. The median price of a home nationwide in the 80s was $75k so I find it highly unlikely that you could get one in NYC for $50! Enough with the hyperbole.
@@steveguillory7568 I said NYC. Even 75k is still cheap.
You could only get a house in NYC for 50K in the 1880s.
@@amireallythatgrumpy6508 Go and look it up.
Ill happily take 17% interest rates if I can buy a home for $50k or $100k again
I just responded to a comment where the person was 23 and wished he had been born in 1950. I reminded him that he would currently be in Vietnam. Every generation has challenges, and this one is dealing with inflation.
He’d have roughly a 1 in 18 chance to go to war in Vietnam. If he was college educated he’d be even less likely
Lmao, he's basically saying i wish i got everything dirt cheap like the boomers but unfortunately was born in 2000s.
I can sympathize with the sentiment, Vietnam was miserable but at least there was a clear start/end and most people did not need to go.
The current situation would be a lot more tenable if everyone knew prices would definitely become widely affordable in 3-5yrs.
@@somelolplayer6199 probably more like 10-15 years, but prices will ease as the boomers start leaving this earth.
@@Joenzinator I’m optimistic there’s some downturns in the near(er) future.
My best guess right now is interest rates drop and housing prices go down with it.
Right now there are no sellers and even fewer buyers, the market is extremely illiquid at the moment.
Once interest rates drop to 4%-5% it should spark a bunch of selling from people who have wanted to move within the past 2 yrs but held off to avoid trading a 3% interest rate for a 7% interest rate.
The difference from now and 2.5yrs ago when we had 3% interest rates is that now we’ve had 2.5yrs to accumulate prospective sellers so there’s a backlog.
It is true that the lower interest rates will draw in backlogged buyers from the past 2.5yrs as well who have held off because of the high interest rates and that will have the opposite effect (holding prices higher).
Despite the added buyers, my assumption is a big part of why this market is so expensive is due to the lack of inventory and liquidity in the market.
Even if buyers and sellers did re-enter in equal proportions, I think the higher volume of home sales would drive down prices.
Dave will make sure you hear the "h" in "whining" 😂
🤣🤣🤣
He just love to put everyone down.
That and his tried and true “veehickle”
Hwining I think is how he spells it... ?
Cool Hwip
At 18 the last thing on my mind was buying a house.
That's when I starting saving for my deposit
📠
That's it Dave. Blame smartphones. Yell at the kids on their skateboards while you're at it. Shake that fist at the sky. 1980 14% interest rates were high... but avg home cost wasn't 4x the average income. I'm 42 yrs old and this isn't a snapshot. It's a downward spiral.
Yeah 17% interest rate on homes that cost 60k and now it’s 7% on homes that are over 400k
Yep, and if you dont currently have $80k saved for a down payment next year youll need $100k.
All the more reason to be grateful interest rates are 17% today.
Exactly, the barrier to entry was much lower
I make 52k, my wife makes 40k; we were able to purchase a duplex that needed some work for 155k. Living and loving the American dream!
The problem Dave is missing is a lot of cities that were very affordable 30 years ago (Austin TX) are now so far outside of affordability for most people, and it's getting worse and never reversing.
I suppose if you're like Dave and already own real estate you're enjoying the risk free 10-15 percent annual gains and don't see anything wrong.
Okay, there's a place at 13013 Buenos Aires Pkwy, Del Valle, TX for $315,000. 3 bedroom, 2.5 bath. 2 car garage.
I dunno. I paid $150,000 for my much smaller home in 2003 and it is now upgraded to similar specifications and is probably worth about $300,000 now. House price doubled, but so did wages from back then.
Mathematically, it doesn't seem too far out of range then vs now.
Another one at 15218 Parrish Ln, Austin, TX 78725 $260,000. It looks nice by my standards.
It doesn't look hella out of affordability to me.
Yup, San Francisco Bay Area
That’s how it works.
Everyone will not be able to afford a home especially if you don’t like living in affordable states,cities,and towns thinking thinking it’s the middle of nowhere.
The average Income needed to buy a house from 2019 to 2024 has risen by almost 50% to $114K. Average home price in 2019 was $261K. Now it’s over $435K.
Dave is out of touch. I make over $100k a year and I can't even buy a house. The prices and rates are out of control.
"I bought a house with my wife in 1980 when I was 25, you can do it too!"
Stop looking at global averages. They distort the picture. Look at average starter home prices, average salaries of 20 to 30 year olds and average spending of those same people for standard spending - transport, eating out, technology, food to cook at home, clothing, holidays, etc
Adjust comparisons for inflation, they’re still bad but a bit more tenable.
Comparing in absolute terms is pointless with inflation changes, same reason I get worked up about people directly comparing 1960 home prices to 2024 home prices… yeah it might be 10x higher but you also earn 5x as much so calling it a 10x increase is a bit dishonest.
Don’t get me wrong though, even on an inflation adjusted basis home prices are extremely unaffordable for the vast majority right now.
@@somelolplayer6199 true but when you factor in the increase in wages being eaten up by inflation it really doesn’t matter. The housing issues began over two decades ago with the lack of supply and everything else just got baked in. Most people I know under 40 are renting and some are even living at home with parents. It’s sad.
Basically if you didnt buy a house in 2020 or before, you're screwed.
Yep!😔
No..
@@buklao I'm so lucky I closed on my house in Feb of 2020... I didn't think the covid thing would be a big deal
It's coming back. RELAX! History matters.
@@garyzimmerman6316people refuse to see past their nose
The American Dream is very hard to achieve. I no longer have the "old American Dream." Instead of a house, I now dream of always having a roof over my head, food in my belly, and access to healthcare.
I also don’t like how Dave is telling people to be patient. I’ve saved up $110,000 over the last 29 years of my life to be able to buy a house down payment, and it’s a killer to afford anything in Canada. How much longer should we rent? I’ve been actively trying to find something to buy and Dave is just being ignorant at this point.
Nononono. No headlines. Look up real people. Look at the immigrants who are kicking butt, because they’re grittier and more driven than us comfy natives. And people who grow up rough, grind it out, make some good decisions, and succeed.
I remember buying my 1st home in '91 2300 sq ft for $39,900 @ 8% and thinking I was overpaying. Bought my 2nd house 1300sq ft in a higher cost area in '99 for $89,900. @6.5% Still in that house. it is now worth $300,000. all paid off and not going anywhere.
Under Dave's plan a 600k house requires $120000 and around $275000 gross annual income. Seems super doable for the average dude right? It'll be way worse in 12 years, Dave just can't admit it because he won't have a show anymore
Ok, so if Dave's wrong, what advise would you give to someone now who wants to face the challenges of life and plan a good future?
the "american dream" is now on a foreign land, working remote making american money, paying 200K for a mini mansion 😂 Equador, albania, Mexico, Colombia, phillipines, thailand etc. its a shame but the reality is thats whats its become if you make 100K or less(67k is avg us salary) you are priced out of anything in the US unless you go to the boonies whith no people/entertainment and at that point why do that to yourself when you can go to mexico or colombia and live like a king with all the standards & perks of city life
@@commonenglishmistakes4360 ^
The macro trend is things getting worse, but short-med term prices are likely to go down as the market becomes more liquid (right now it is very frozen / low volume).
It’s def possible things are better in 12 yrs vs now, but in half a century things will prob be worse (prob sooner).
@@commonenglishmistakes4360 Probably that unless you are a top 1% individual earner or a top 10% household then housing is probably unaffordable to you right now but there are things you can do now to prepare for a future where the market is more affordable.
At the moment rents near me are around half the cost of a comparable mortgage, so rent and budget to the best of your ability and the more you can save the better your position will be when the market is in a state where home buying becomes practically possible again.
It’s true that renting is like throwing your money into the void, but right now it sure is a whole lot cheaper to rent vs a mortgage.
There’s also the benefit of landlord appt upkeep, if an appliance breaks that’s a landlord responsibility, if a pipe breaks and you get a water leak that’s a landlord responsibility, etc…. with home ownership there will be repair costs on top of the mortgage that would be paid by an landlord for an appt.
I think the American Dream is absolutely possible, but it will take longer, Unless you have a BIG push from your parents, expect it to be baby steps over a decade or two post high school graduation.
The American dream includes having near adult children two decades post high school, not buying your first home.
@@neverneeded.2697what? No
Exactly. So long as it’s your goal, god willing, eventually you’ll have it.
@@neverneeded.2697 not what I said. If you’re taking baby steps you don’t stay under your parents roof. You start with small apartments, then townhomes, then at some point a house etc. (for example). You’re still making advancements forward, it’s just not all at once
The "hard work" part of the American dream formula often gets ignored. I came to this country (legally) as a teenager with just a suitcase of old clothes, 6 months of living expenses and a "you go figure it out yourself" from my parents. I studied like hell in college, taking on average 21 credits per semester to lower my tuition while working almost full time, and my English was so poor I could barely understand what the professors said, but I endured through all that and graduated with a near 4.0 GPA. It was HARD; I often could only get 3-4 hours of sleep. Now I work as a principal scientist at a global pharmaceutical company while owning my own side business. Yes, the American dream is be harder to attain than before because of domestic and global competitions, but that just means you need to work harder and be willing to sacrifice more.
It's sad how difficult things have become in this recessive economy. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to protect my $450K-worth stock portfolio from decline, but haven't figured which way to go.
Very difficult indeed, but when the going gets tough, the tough gets going. You have to learn and handle finances properly. you should hire a CFP to help you diversify your assets to include ETFs/index funds/mutual funds and stocks of companies with consistent cash flows. Don't go for penny stocks.
Opting for a brokerage Adviser is currently the optimal approach for navigating the market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 300% since 2022
I could really use the expertise of this advsors.
KATHLEEN CHERYL CONSTANTZ is a hot topic even among the finance elite in California. She's just a search away(on the net)
It's still possible. The new question is "What are you willing to sacrifice to get it?" - Your health? Your family? Your children?
There has always been an element of sacrifice when buying homes or obtaining some sort of life goal. My ex and I sacrificed "having fun" in our 20's to afford to buy a house in our 30's. Right now I'm sacrificing travel, brunch with friends, and other stuff regular people do (who are up tot their eyeballs in credit card debt) to ensure I'm saving enough for retirement. You can't have your cake and eat it too unless you're already independently wealthy. People who have to work for a living can extend or pretend on credit until they go bust, or they can sacrifice and prioritize financial goals.
No! That's an old, traditional -- yes, Boomer! -- question. Asked that question myself after coming home from Vietnam. But if you plan and manage your life, you can avoid "sacrifices." Where's my tiny violin, so that I can play a woeful tune for you?
Sacrifice going out to eat, expensive vacations, new cell phones, streaming services, Starbucks. No need to sacrifice your health and your children.
Everything in life is a sacrifice. You got to figure out what you’re willing to sacrifice. Most things in life are achievable…you got to know if it’s worth the stress of getting it. People acting like they can’t buy a house or sacrifice 18 months to save up and live below their means is the hardest thing to do in life apparently.
🤣🤣🤣
“I am unwilling to wait for anything.”
Even for his cohost to finish his sentence.
The problem is people in their 30s now can’t afford a home when people in their 30s back then already had a home and children
NO 18 year old is going to buy a home in ANY market. No financial institution will write the paper without a co-signer.
And that's nothing new.
That's not true, I know multiple people who have bought homes at 18 and 19 years old, they're still in their early 20s.
@@bagofsteel9152 absolutely no way have they bought a home on. their. own. at 18 or 19 without an inheritance to buy it outright or a co-signer or, possibly, mommy & daddys help. They have zero credit history. Even FHA, HUD, VA will not do it.
@@bagofsteel9152 Absolutely no way an 18, 19 or even a20yo is going to get financed. Not without an inheritance or loan from a relative that they could pay cash outright or a cosigner. They have ZERO credit history. HUD, FHA, VA will not even touch them, let alone a conventional loan. If your friends have told you different they're lying or you heard wrong.
@@bagofsteel9152 with a CO SIGNER, gosh learn to read
Let’s be real. A dollar today is not nearly what it was 20 years ago or even 5 years ago. When I was his age I rented an apartment for 750 per month in 2003. That same apartment is going for 2800 as of last month and that is an hour and a half outside of Manhattan. This kid is going to learn quickly that Long Island isn’t a long term answer for someone in finance at his age plus jobs in finance are turning to automation (I work in finance and alot of people are either being laid off or leaving the field due to low pay). At some point it’s not about living below your means but having a means to live below.
1960 is NOT the "last of the baby boomers". That is generally considered to be 1964. Although a lot of people say 1954 to 1965 should be called "Generation Jones" or "The Lost Generation". But that still doesn't make 1960 the end of the Baby Boom. Where does he get these things that he says?
Yeah, I caught that too. My parents are baby boomers- it’s till 1964. I liked that he said it is harder than ever but possible.
Oh, oh. Remember when Dave said he would leave when he started to not make sense? My neighbor is the baby of Baby Boomers and he just turned 60 this year. That’s right 1946 to 1964 is the Baby Boomer generation. Myself, I’m a 1958 model and, hopefully, retire in 2 years. I know Dave is 3 years younger than me, which would make him born in 1961…..maybe 1960???? 🤔
culturally people born before the 70s basically act like boomers, i know people born 65 to 69, and they are basically boomers in their culture and disposition.
Probably off tic “tac”
@@americaneconomist86 🤣
15% in 1982 when the average house cost 69k, median household income was 24.5k = 2.8 years of income to buy a house.
7.8% in 2024 average house is 421k, median household income is 64k = 6.5 years of income to buy a house.
I dont know why older generation is so upset at the younger people complaining about this.
Basically this kid has to move out of town away from his family until he can afford to move back in 20 years. Got it!
I live in a HCOL area. 15 yrs later out of school I still don't own but my net worth is over 650k. You can still generate wealth while still renting...
Boomer Dave
Dave is wildly unrealistic and disconnected from reality. It's never been harder to have a good life and Retire comfortably. The average mortgage now is 3k a month. Everything costs a million dollars. The only way to live a good life and retire comfortably is to make at least 200k+. What percentage of people under 40 make 200k? 1 2%? It was not like this before. I bought my first house in 2014 and it was a 2000 square foot townhouse. I had a 1400 payment. Growing up, you could have a nice house and Retire comfortably making 80 90k a year. Now a comfortable existence is only for the super elite. We can tell people to improve themselves and get a better job but it's not realistic to expect everyone to make 200k. Incomes haven't grown nearly at pace of inflation. Not even close
100s of millions will do that to anyone
its called living within your means....... earn it.... you can do it, you can get it....
you think Yatch owners on Long Island just used college loans and then demanded getting things without putting effort in...... Don't answer that i will..... EFFORT
33 trillion of debt. The American dream was sold
Not to mention that not everyone can "just improve themselves" to the point of getting a 200k a year job... those jobs are relatively scarce and extremely competitive... for every person that gets that job 7 others didn't and will continue to not get it... that's something Americans rarely reflect on from what I have seen.
The reality is that people are living beyond thier means and thats what keeps them broke
All the boomers are completely out of touch with how hard life is now. They grew up in the best of times. Life is much harder and way more expensive.
And what will your grandchildren say about you when you're 75?
They will hear your horrorifying 1st world problem stories about how your IPhone 14 couldn't do this or that and then say your life was easier than theirs! PUHLEEZE!
My wife and I are 45. Our combined household income is 180k. A 600k house which in south Florida is on the lower end of the price ranges with today’s interest rate on a 15year fixed would give us a 6k mortgage payment which is over 50% of our take home. Even a 30year puts us at 40% Thats what this kid is talking about. Until prices or interest rates drop I don’t have much hope for owning a home.
It’s still possible, but it’s so hard. Debt free. Working on my mortgage.
I agree. A lot of people don't want to crimp the lifestyle they feel they deserve in order to sacrifice to get ahead. Its possible, but it requires a re-imagining of what your typical lifestyle will be. You may not be able to buy new cars going forward. You may not get a master degree and the associated student loan debt...hell you may not even get a college degree and just pick up a trade instead.
The old ways were unsustainable to begin with, now people are going to have to find a new more sustainable way forward in life or do without.
How? I make 100k a year! I can't afford a house and will rent and never retire now. It just is not possible unless I do an APR or do 2% down with 60% of my income going towards the shack in the hood for $2600 a month not including insurance, utilities, or anything else. The 15 year mortgage is not possible for me
Life has always been hard. What is new. Work hard and try to achieve more or dont. This is America. You have a choice.
Age?
@@timgibney5590 the fact that there are people who earn a lot less and have their own home shows that it's possible. If you really want to crunch figures, cut spending and save up for the future it's definitely possible but it takes effort.
They always forget my generation. It’s either boomers or millenials. Even Dave, the uh, generation after mine. GEN X people!! They NEVER mention Gen X when they compare anything.
The American dream isn’t dead but the ways that used achieve that dream don’t work anymore. Gone are the days where you save 10% and can retire and raise a family on an average salary. Gone are the days where college degrees mean you will be financially comfortable. People need to adapt to the new paradigm. You must be 3x more financially savvy than you parents were to achieve the same thing. It is still doable but the sacrifices you will likely need to make are far greater than you thought. Weak discipline is now a financial death sentence, and it wasn’t for your parents.
Try living on $1400.00 a month, being Widowed, and totally disabled. Im 62.5 yrs old. He's scared of HIS future!? I can only eat one small meal a day, and when things get tough...I dont eat. I know Im not alone in this.
The last Boomers were born in 1964, Dave is wrong again.
Actually those born between 1961 and 1964 do not belong to ANY generation.
The dream is there like others said you have to work really hard to get the higher pay (seek ways to constantly increase your value either as an employee or employer). The bar has been raised like The Hunger Games. In today’s time it’s chess not checkers. You have to be smarter with your money and finance planning. For me i stopped buying new cars 11yrs ago. I still have my 10yr old car that many folks still say it looks brand new. I use that money and have been throwing it in index funds and invested consistently through out the years without car payments and that paid off. Was able to increase my net worth substantially and purchase my first property a few years ago.
The knowledge to get there is now in the palms of your hands (aka smart phone). You just have to live below your means and roll your sleeves and get to work. Not going to be easy, but you will get there if you keep your eyes on the finish line.
I appealed my property taxes twice and got two reductions. My new insurance premium wasn't as bad as I expected. That's this year, I suspect next year will be a disaster!
Mindset is a huge part, but let’s face it dave, if you had to pay $500k for your houses when you were getting started, you’d be poor like all of us.
I was raised in a poor household. I wish at a young age, I had gone to one of my successful friends parents and asked for mentorship. I love my parents and they raised me in a house full of love. But I don't believe that poor parents can teach you how to be wealthy, because they don't know how to be, themselves.
I was told to find something I like doing for a career. I think that's terrible advice. I would have told myself, find something that pays amazingly and do that. It doesn't matter if you hate it, you'll be rich and able to retire early. That still sounds better than doing a job I love and never being able to retire.
Sometimes you can have both, but I think whether you like the job or not should be secondary to the standard of living it provides.
Retire early and do what?
@@miqueiaspaulo1 Then you can do what you're passionate about, when you already have the lifestyle to support it.
The average person making the median income can’t afford a median priced home. Prices for goods and services have multiplied. This is the problem.
I’m not sure if The Ramsey Show’s blatant avoidance and ignorance of our economic realities is helpful. I understand their core message of self discipline, but it also makes people feel crazy when they ignore the fact that middle class income increasingly doesn’t cut it for median home prices
Reading a lot of excuses in the comments.
If you've made a lot of bad decisions, you'll have a bunch of bad results.
You don’t even know what ur talking about I made more at 17 an hour a few years ago and now I make 35 and can still not afford bills? Was 550 for an apartment when I made 17 now it’s 1500? Ppl Like you are the problem you blame the ppl instead of this trash economy we live in
@Mr.Boring_Man read the room it dosent take poor decisions anymore most people are one bad day from homeless in this economy
Yeah my bad decision was not buying a house in middle school.
All depends on your definition of American dream
Dave is simply saying, GET OUT OF DEBT! INVEST! SAVE FOR A RAINY DAY! AND LEARN HOW INCREASE YOUR (!!!!YOUR!!!!) INCOME. Get off the couch and do something with your life. This is a YOU (!!!YOU!!!) moment.
You know you're dealing with an out of touch boomer when the sentence starts with "When I was your age...."
You know you're speaking to someone who is out of touch if they speak with an American accent.
My gosh, most of the comments seem to miss Dave’s point. He said things are hard. RIGHT NOW. Today’s reality does not mean it’s the forever reality.
He also says the house prices are not going to come back down, so….
@@tylerhair9067 we said the same thing in’05. And then they did. Maybe prices won’t drop. Maybe only price growth will slow. And interest rates drop. Then they’ll be more affordable
EXACTLY! This too shall pass. Cynicism and despair don't get you anywhere, but hard work and patience can make you end up in at least a fairly good situation anytime!
We shouldn’t have to have a second job to be able to afford bills they always say just get another job we shouldn’t have to live at work lol
My parents (gen x) bought their acreage for $30,000 cash in 2005. They sold it for over $200,000 more than that 10 years later. Even if they needed a 15% interest rate mortgage they would have made soooo much off that investment. It isn't like that for todays young families.
35 trillion national debt, explain to me how young people get around this fact and acquire the American dream, we have as a nation gone past the point of no return
Dave is right. At 18 buying a home felt like being asked to climb Mount Everest in flip flops.
At 29 my ex and I bought our first home (TOGETHER, as a team effort). I'm currently in my second home at 39. When I was 18 the housing market was ridiculously expensive also. Later on that decade the market turned during the Great Financial Crisis and that allowed some people (who managed to stay employed and had savings) to get into the a home. I was unemployed looking for a job and wasn't concerned about buying the dip. The labor market was brutal. Eventually I found another job and saved money for a down payment. We ended up having to move out of state to buy a home.
If you think you're going to be buying a home in Miami, New York, Los Angeles, San Francisco at 18 , you're' delusional. Most likely you're going to have to get your priorities in order and make sacrifices to get to where you want to be. If you want a home, that may mean moving away from friends and family to afford one in a city that has he jobs and the housing market that will get you into a home. You may ended up having to drive a beater car for a while because you can't afford to take on a new car payment and pay a mortgage. You may end up not going out to eat or vacationing in order to afford a house because those are luxuries and you're building your emergency fund.
These are decisions people make to get ahead. All the doom spenders charging up credit cards this Summer because they think everything is horrible in the world are creating a self-fulfilling prophecy with their finances. Yes, things will be horrible...for you... because you're broke and you decided to double down on broke instead of build yourself up. No you won't be able to take advantage of an opportunity when it inevitably arrives to buy into the housing market. Or into investments that could grow and allow you to afford that down payment. Instead many people will complain about how unfair the economy is when they didn't do anything to help themselves in the first place.
Your advice is so true. Too bad it falls on deaf ears. Whiners here feel it is their birthright to be able to afford a house in LA, SF, SD, Orange Cty, NYC, Miami-- anywhere within 50 miles of the coast. USA is a gargantuan country.
An inconvenient truth is that plenty of affordable houses do exist in USA, contrary to what these whiners have you believe. Ohio and parts of Texas are just two examples. But you nailed it-- home ownership requires sacrifice, like relocating or upgrading one's job skills. Just ask any immigrants, esp. from China or India.
What's 17% on a box of strawberries?
Rule Number 1 - Live in your OWN REALITY.
"Whether you think you can or can't, you're right."- Stewie Griffin.
Wow I’m usually on their side but sheesh they are so out of touch. They must not have “normal” people around them. His concern is valid
People feel it don't insult the peoples intelligence u feel and see it every where
But he's right about interest. I had 9 percent in the 80s
@georgewagner7787 that maby true but besides the interest rate it is now 7× more for a house and two married people can't get approved for a house unless your making 100000 to 200000 and the wages aren't there to keep up like they have in the past. A house should be achievable and unless ur making a crap ton it's not for at least 50 to 80 % of the population that is sad.
@georgewagner7787 it's pretty crazy 2 people that work over full time can't afford anything in this climate in the USA
The psychology of money is a REALLY good book to read in this area
I make 92k and my wife makes 80k. Our take home each month is 9k after 15% investing and the high tax rate. If we put 20% on a 1.1m 3 bed house (yes that is the median unless you want to live in a bad area) it will be 7,800 a month for mortgage plus insurance and property taxes. I guess the only option is to move away from family to afford a house.
Back in 2003, I bought my own home at age 21. The boomers all thought I WAS ABSOLUTELY NUTS for even thinking that was a good idea. Well, I am nuts, but its not because of the home purchase. But I did it and made it happen and I am still there today and it is paid up in FULL.
Oh, and the interest rates back then? They were "high" like they are today... in the 6.xx% area. So, blah on that.
EDIT: Some of you act as though I haven't paid attention to my finances for the last 24 years as an adult and am completely oblivious to the costs of stuff these days.
To counter that idea, I am actually looking to buy my 2nd home now. That essentially means I am starting over with a fresh mortgage and "high" interest rates and I will be paying utilities and property taxes on more than one home. I am well aware of the costs.
Unlike many of you, I can break down how much money I earn, what I spend it on, how many hours I work, etc. None of you complainers will ever disclose a written budget and show me where the money is going, and in what municipality you are so stubbornly set on living within that you are willing to pay EVERYTHING you make to the rich man.
I dumpster dived for stuff back then and I still do it to this day. I drove cars that you would be too embarrassed to be seen in back then, and to this day, my newest car is a 2009 model. The next one is a 2003.
My phone bill is $25/mo WITH unlimited everything which is a lower dollar figure than it has EVER been in my adult life. Back in 1998, internet was $25/mo for dialup with a LIMIT OF 25 HOURS PER MONTH. That's less than an hour per day. The phone itself I bought used off of Ebay. A computer with an old 14" CRT monitor was over a thousand dollars. My job after school was paying $6.00/hr. A GPS device to get you somewhere? WTF is that? We actually had to think for ourselves back then. Netflix was a mail order service. You couldn't stream video unless you had access to some REALLY kick ass T1 or T3 internet service. Maybe ISDN. DSL was just coming out and streaming with that was... possible at a low resolution.
Yeah, I should have been buying houses with my full time income as *checks notes* a high school junior in 2003...
The cost of overall living compared to income was much different then. It's not comparable.
Not even comparable. You were living on easy mode compared to the younger people today
But the cost of a house in 2024 is 3-4 times the cost in 2003. The income levels haven’t caught up
@@gingersnap9105 dont bother man. These people are delusional or willfully blind.
Thailand is pretty cheap
Philippines, costa rica, Poland, Portugal
@@georgewagner7787Thailand and phillipines u can’t own land there unlesss ur married and by then what’s the point
I don't have anywhere near $100k a year and I live in a luxury apartment complex with all kinds of amenities. 18 year olds thinking they should be able to buy a house I'm the most expensive places ever
You must have a good job or live in an area where the cost of living is cheap.
Although they’ve got a point about most “normal” people not being able to afford a house on Long Island now, my grandfather did. He was a Korean navy veteran, and worked for the State of New York until he received his GI bill, state pension, and social security and had a house with four boys and a fiancé in the past. The American Dream was attainable in Long Island area for a long time. He was an immigrant from England in 1950, after dealing with Nazi Germany for years of his life in London. Things were and are still tight there, but not impossible for many.
An important detail that he is leaving out is that now houses in the ghetto cost 500k in major metro politan areas. That is not exactly the same as the 17 percent interest rates of 1970 where the price of the house was still reasonable adjusted for inflation.
I don’t need to live in major metro or ghetto areas.
@@blackworldtraveler3711 that is good. Many of us do.
@blackworldtraveler3711 that is where most of the decent-paying jobs are. That's part of the issue. But I think a lot of people need to be more flexible about location to help deal with this.
@blackworldtraveler3711 this is a stupid comment. We are not talking about just you.
@@melinated2497
This is a very large country.
Seems people have found a way regardless.
One of the things young people need to consider when seeking a trade or career field.
Every Boomer ever...."But 17% mortgages!!!!!"
And we should be grateful that they are not 17% today!
@@amireallythatgrumpy6508 Obviously. Mortgages might have once been 17% in the past, but that doesn't eliminate the struggles people are going through today. Bringing it up is a distraction. We can talk about the struggles of young people today, without being like "while in my day!" While okay, but we're trying to make things better. We should be progressing, not comparing woes.
@@Ashley-ku7is But it does mean the struggles would be twice as bad if they WERE that high.
"In 1982 when I graduated from college interest rates were SEVENTEEN PERCENT!!" - Exclaimed Dave - ignoring the fact that the average home was priced at 2x the average income.
We're approaching high rates AND unaffordable prices. 7 to 10 percent AND 3 to 5x average income is objectively and HISTORICALLY unaffordable. You can believe the glass is half full all you want; but I'm looking at a broken glass and a cola stain on the ground with ants crawling all over it.
I don't have a horse in this race, I'm fine. My 1000sqft 2bd 1ba house cost me $320k last year with a 6.4% rate, but I work from home. The average income around my "not in the median" area is $55k. That's nearly a 6x home to income ratio. Across the board, by every metric, on every level - the numbers don't add up for real Americans. Telling people they do, or "look the other way", or "try your best" - is a massive disservice.
Tell this kid to get out and vote in local and national elections. Don't vote for the person who will help you. Vote for the person trying to help the most people. Then go grind your ass off in finance in NY. You literally can't afford to fail kid. Work like your life depends on it, because it does. It's gonna be a long time before things get better. The good news is - if you can make it in Finance in NY - you can make it anywhere.
When Dave talks about 17% APR mortgages on homes that cost 2-3x the average income for boomers vs. a 6-7% APR mortgage today at 7x the average income… and he’s trying to make you feel bad for him and his whole generation having to buy at 17% you know he’s truly lost all grasp of reality.
DO THE MATH
Do the math and be grateful that interest rates are not 17% today, dude.
Greetings from Bulgaria fellow Ramsey family! Be wise with your money and your time. The time is now to start growing up and build a better life for our families! Gob bless! 🙏
The American Dream really never existed, it was exactly that a dream 😴 but hey it’s what you make of it. It is getting harder and harder and $100k seems like chump change but just focus on what’s in front of you. It’s not all doom and gloom. Trust the process and it’ll work out.
It only exists for people willing to go after it.
i don't know what the american dream is, but you live in a country where you are free to do what you want (or so they have you think that) and you have unlimited opportunity. problem is...... you have to put effort in. not for one day, one hour, one week, one month, one year.... you have to work and earn it and it will come..... you are 18...... STOP with the loan go into the coast guard, merchant marines, etc.... find an employer that gives tuition assistance.....
don't get a degree.... GET a career..... GET a skill..... do something NO ONE else wants to do. you will have endless worries after that......
Hope this young man see this comment. Im 28 living in Los angeles also in finance. A lesson i learned only two years ago is the way to make strides and grow is to get out there. For 4-5 years after college, i would go out with friends and play video games after work. I now spend 4-5 nights a week networking and going to real estate, business development, and other groups and meet-ups. Its an extention of work but its been the difference between me living basicly paycheck to paycheck, and i have since been able to save more in a year and a half than i did in my first 5 years. If i meet 10 people and get 1 client, then that's an incredible night of networking. It's a tough hustle, but the more you do it, the more efficient and successful you become at it. I have friends who are in engineering and medicine and I'm just catching up to them financially,and because of my industry I can continue to grow and outpace them or I get comfortable and regress. It's not easy man but it is possible to thrive in these high costs areas of the country
I am retired but I was working 13 years before I had any extra to save. My first mortgage was 9%. Yes the American dream is still there but you have to stay focused and work hard.
How much was your house compared with your salary? Let me guess, it was 2-3x your annual salary, unlike how the median home price is 6-7x the median home price today.
@@awill3454 actually somewhere in the middle. The house was $125,000 and yearly salary was $23,400 which is like 5 times. Not quite 6 but definitely not 3.
My first house was $142,000(after my 15k down payment) at 6.7% back in 2003. I was 31 at the time. Just checked the SS logs and I made just over 31k that year. That's means the house was just over 5x my income before the down. Sure, it took me about 3 years to save up for that down payment and I worked a second job after I bought it to get some extra padding in the emergency fund, but I did manage to do it myself. My current home was 4x my current salary in 2020 after the down payment, so it's a little easier to manage, but I also didn't overbuy and get something I couldn't afford, either. Thinking you're going to be positioned to get a house at 18 is not realistic unless your parents are going to get you there or you found a great job and saved like a demon while you were in high school. Not a common thing. It takes time to get established, plan well, and get your timing down. If that someone's dream, it's possible, you just have to work for it.
“It’s called the American dream because you have to be asleep to believe it”
Weird how so many immigrants come here with nothing but the shirt on their back and are able to succeed easily while native born Americans think the dream is "dead". SMH.
@@kleindropper Those migrants have the luxury of having their food, housing, childcare, medical expenses, travel all subsidized by huge amounts of tax money that is simply stolen from you and me. Give me back the 30% of my income that gets stolen from me and I'll change my opinion on the American Dream. so your take is not only wrong, its ignorant of the facts at hand.
@@kleindropperbecause our government gives them everything for free
@@kleindropper because the quality of life compared to a dirt hut is still better... it's just not as good as it used to be for the Americans here...
Reminder a super rich phony hippie said that. Carlin literally bought a private jet to shelter taxes.
It is easy to not feel cynical when you bought all the real estate at the bottom.
I bought my first home less than 2 years ago. One year from now I'll owe within 10% of my currently salary assuming no extra payments. The average prices are increasing more than the average salary, yes. More people need to accept they can't afford average. 🤷♂️
Dave is very out of touch sometime