When deciding between buying a house or investing in a company, financial stability plays a crucial role. That is precisely the Dilemma Casey from Lexington, Kentucky, presented on one Recent episode from “The Ramsey Show” with hosts George Kamel And Ken Coleman.
Casey and her husband work through baby step 3, in that in Dave RamseyThe framework means that they build a fully funded emergency fund of three to six months in costs. Once they have completed this step, they debate between buying a house or put money in the restaurant company of Casey’s husband.
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Although the company is already located, Casey explains that her husband currently has partners and eventually wants to open his own restaurant. However, their financial situation is calling for worries. Their family income varies considerably, with Casey’s spouse earning around $ 35,000 to $ 40,000 annually before taxes. Moreover, Casey stays at home at Homschool their children, which means that their financial situation is exclusively dependent on her husband’s income.
Kamel and Coleman have advised against Invest in a new company At this stage. The restaurant industry is known for its high risk, and they emphasized the importance of financial stability before they assumed even more.
“There is a huge risk when starting a restaurant,” Kamel warned. Coleman strengthened the idea of patience and advised Casey’s husband to concentrate on his current company, to learn from his experiences and financial stability before taking a big step. He quoted an old saying: “If you follow two rabbits, you lose them both.”
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When it comes to home ownershipIn the first instance, the hosts agreed that buying a house should be the next goal after completing baby step 3. They mentioned this “Baby Step 3B” in the Ramsey – aggressive saving for a down payment before they Continue investing in pension.
After learning about the income of the couple, however, their concern about income stability led to an important point: homeowner may also not be a sensible decision at this stage. Coleman pointed out that the income of Casey’s spouse is not high enough to pay a mortgage comfortably, warning that an unexpected decline in the company could make them financially vulnerable. “I wouldn’t be in a hurry to get into a house,” he emphasized.