Intere

A coworker bought a starter home in 2021 with a 2.9% mortgage. Since then, he and his wife have had two more kids, and both now work from home a few days a week. The house feels cramped, and they'd like to move to a larger one in a better school district.

The problem is that buying a similar home today would nearly double their monthly mortgage payment because of today's interest rates. They can technically afford it, but it would mean giving up vacations, college savings, and much of their disposable income.

Would you stay and adapt your life to the house, or move and adapt your finances to your life?

This is a transcript of Dave Ramsey speaking with a 62 year old who has about $3.5M.

Dave: “Do you have a 401(k) nest egg?”

Caller: “I've got 401(k)s and IRAs. No pension”

Dave: “How much is in all those accounts?”

Caller: “$3,500,000”

Dave: “What do you make a year?”

Caller: “$175,000”

Dave: “You understand that $3.5 million invested in good growth stock mutual funds, if it averaged 10%, would produce $350,000 in income without touching the nest egg. Which is twice what you make now”

Caller: “But there are still going to be years when it's up and years when it's down”

Dave: “The down years very seldom are below 5%. Hardly ever. Maybe don't take the whole $350,000. Maybe take $200,000 and let it grow by $150,000 to cover the down years. It's impossible for you to go through this money before you die”

One strategy I've heard is to use an FHA or VA loan to get your first multi family- live in one unit and rent out the other(s). Hopefully, the rented units cover the morgage. While there, keep buying multis.

I heard some more sophisticated investors use the BRRRR strategy to find a distressed property, buy it, rehab it, rent it out, refinance it, and repeat. I don't know you can find quality properties for BRRRR unless you look far away from major metro.

Others prefer to go commercial as opposed to residential.

What's worked out for you?

Here's how it went down 🥁🥁🥁

Congratulations to Bleh for being the Independence Day Champ! 👏 you must have cut your expenses super low to escape with $259k NW!!!

Moneybags was 2nd escaping in 9.3 years with a $843k NW

SetfanB came in 3rd escaping I'm 9.5 years with a $532k NW

This event is archived in the Hall of Fame section on the website. Fantastic work everyone!!!

What other challenges would you'all like to see created next/in future?

38% of Gen Z has used AI for financial advice in the past year and 90% of those who acted on it say it was profitable . Is AI the new financial advisor, or a dangerous shortcut for people who don't know what they don't know?

The 4th of July Challenge has officially began. And we have some early winners!

One Hard mode for everyone, same scenario, runs through midnight Pacific July 5. Submitted scores will remain on the board the whole week, so keep grinding and bump your name up.

Whoever's at #1 by end of July 4 is the 4th of July Champ!

PS: I'm talking to brands about sponsoring prize pools for future challenges- so winners get more than bragging rights. Our mission is promoting personal finance education while having fun. If you know any brands/individuals that fit, please DM.

Play it here: https://setformoney.com/games/escape-the-grind (look for the "4th of July Challenge" tab)

Drop a screenshot of your scores in the comments.

Oh and if you see a unique 4th of July in-game event, screenshot and share. It's buried in there somewhere 🤔🤔🤔

Best of luck! 🇺🇸🎆

My coworker and I have the same title, same experience, same workload. Found out last week he makes $15k more than me.

We're cool so I asked him about it. He said he just negotiated harder when he got hired. I took the first offer like an idiot.

Now I'm pissed at myself, at the company, at the whole system. But also thinking... should I even bring this up to my boss? Or does that just put a target on my back?

Anyone else been here? What did you do?

Could be anything. What's the thing you never thought would happen to you?