You’re Not Going To Like This

[Music] brought to you by the every dooll app start budgeting for free today Ashley's with us in Philadelphia hi Ashley welcome to the Ramsey Show hi Dave how are you better than I deserve what's up so my boyfriend is receiving a pretty large settlement um in the next coming months and we're kind of debating uh we're looking to buy our first home um and obviously once the home comes uh once the right home comes we'll we'll do that but he's stuck on paying the house out in full um and I'm wondering it's better to do a big down payment and get a mortgage on the house why do you want a mortgage I don't I don't know I feel like putting a huge lump of that settlement into a house why do why do you want to mortgage I I'm not I'm not sure well you just told me you wanted a mortgage what do you think he should do with it I I just want him to use it as wisely as possible um sounds like he wants to avoid debt how much how much is he getting yeah um right around half a million okay and how much is the house price you're thinking about buying um we were thinking like mid threes okay right um is the settlement taxed no it's not okay all right um well let me uh send him a warning through you and you're not going to like this okay okay there is no we you're not married exactly there's a he coming I'm coming into it yeah exactly there's a he it's his money and so if he buys a house it goes into his name not our name m unless you're married are y'all getting married um eventually we've been together for six years so apparently apparently not okay so um I mean six years and you pain painter get off the ladder I mean so you've already figured out what you're doing but the um yeah I if I'm him what's his what is his income um right around uh 55 I think okay so let's pretend for a second let's just reverse engineer this so that you'll it'll help you with your heart on understanding where our voice advice is coming from let's pretend that he made $55,000 had $200,000 in the bank and a paid for $300,000 house and you walked up to that guy and you met that guy he had a paid for $300,000 house $200,000 in the bank he makes $55,000 a year would you then tell him to go get a mortgage because that's wise no same thing though isn't it mhm I just did it backward yeah it's the same exact thing so the only thing that that could fall under the heading of wisdom is if you if it made sense and I don't think it does and Georgia doesn't think it does to borrow on your home to do investing and effectively if you're going to invest some let's say he put 100,000 down and instead of paying the other 200 on the house put it in mutual funds okay which is kind of what's probably rattling around in the back of your head somewhere um I if if that makes sense then borrowing on the paid for house to do the same thing would also make sense but by reverse engineering it it makes you realize oh there's risk involved here what was the can I know you can't get into lawsuit details was he injured for the settlement he was yeah okay all right is he okay he's yeah he's great now he can still work no permanent damage to his income no no it was it was a a miracle heill good good I'm glad for him and you too yeah so I would tell him to pay cash for his house and and set aside an emergency fund and invest the balance long term and by the way if you don't have any payments in the world and you make $55,000 you could pay what's the equivalent of a house payment into your Investments every month and that alone will make you a millionaire in just a few years okay does that make sense too it does it does yeah yeah so that's what I would do but um uh yeah those of you that are uh shacking up and playing house or whatever you want to call that stuff um be sure that you keep your legal stuff completely separate and you have to be careful even with your pronouns in this case not like woke pronouns but like pronouns like the you have to get your we buying house we're buying a house we aren't doing anything he is we're getting a settlement no he is if you're married there's a we when you're married you become French we we right that's how that works but until you're married there's not a Wei uh legally I'm talking about um a and honestly actually that also leaves you in a uh a predicament as well that I don't want you in I would rather you have the safe in this relationship and the things that you've been pouring into the the economics you've been pouring into this for six years I'd rather you have the safety of marriage marriage represents safety for you young lady so I I I would just as a you know a guy who's seen all the stuff go bad because that's all we do we work with a lot of people who where things went bad I I want I want you to have a better life than than this is setting up cuz you know one day he just decided you're not there legally he didn't have to do anything except tell you to move he didn't even have to evict you you don't even have tenants rights you just move out you're a squatter you know no equity nothing and that's just um you know you don't want to play that out for 90 years you don't want to play that out I've been married 43 years you don't want to play that out 43 years and see how that looks it doesn't this doesn't age well it's like cheap wine it doesn't age well so you know that that's just me loving you right now telling you that for you create your free every dooll budget today the simplest way to budget for your life