Couple Making $200K Wants To Invest 60% of Their Income—Dave Ramsey Says That's Great, But 'Build Up A Fat Juicy Down Payment' For A House Instead
Most people call into "The Ramsey Show" wondering how to climb out of debt. But one recent caller? He and his wife are trying to do the opposite. They're in their 20s, fresh out of college, no debt, $200,000 combined income, six months of emergency savings—and their big question was whether investing 60% of their take-home pay was a little too much.
Turns out, it might be.
Not because they're saving too aggressively—Dave Ramsey loves intensity—but because they're skipping a key step almost every millionaire he's studied has taken.
"Very, very few people that we have studied... that became wealthy used that plan," Ramsey said. "Instead, what they have done is they bought and then paid off a home."
Don't Miss:
Hasbro, MGM, and Skechers trust this AI marketing firm —
Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing —
The couple, who just got married and are currently renting, laid out their plan: live on her $60,000 salary and invest his $85,000 take-home in 401(k)s, HSAs, and other vehicles. Their goal? For her to eventually become a stay-at-home mom.
But Ramsey had one question that changed the tone: "What about your house?"
They didn't have one. And to him, that's a red flag—because he's seen what happens when people rent for life. "You can 100% count on rent going up your entire life as long as you rent," he said. "Your largest item is out of your control."
In his book "Baby Steps Millionaires," Ramsey details a study of 10,000 net-worth millionaires. Most of them followed a path that involved a modest home, a long-term mortgage, and slow, steady investing. That's not to say saving 60% is bad—it's just rare, and in Ramsey's view, less efficient.
"I would save a maximum of 15% of my household income into retirement... stop the HSA, build up a fat juicy down payment, and buy a house in Texas," Ramsey said.
Trending: Maximize saving for your retirement and cut down on taxes: .
And he's not just talking theoretically. The data backs him up. According to the Federal Reserve, the median net worth of homeowners is around $400,000, while the median for renters is just $10,400. That's not a typo—renters, on average, have less than 3% of the wealth homeowners do.
Ramsey even got a little nostalgic about the power of real estate: "Think about the neighborhood that you might buy in... what you could have bought that house for 15 years ago. That's what it's going to be 15 years from now."
And while the husband might be fine roughing it for now, Ramsey warned him not to bank on his wife feeling the same. "When she becomes a stay-at-home mama, I promise you this—she's gonna want a house."
Ramsey's final take? This couple's drive is rare, and they're already ahead of the game. "You're not going to be a broke guy because you're actually paying attention," he told the caller. But even the most disciplined saver needs a solid foundation—and in his world, that foundation has a deed and a mortgage.
Read Next:
Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets –
Invest where it hurts — and help millions heal:.
Image: Shutterstock
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga?
APPLE (AAPL): Free Stock Analysis Report
TESLA (TSLA): Free Stock Analysis Report
This article Couple Making $200K Wants To Invest 60% of Their Income—Dave Ramsey Says That's Great, But 'Build Up A Fat Juicy Down Payment' For A House Instead originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
7 hours ago
- Yahoo
Philadelphia woman in ‘tricky situation' after her mom asked for $3,000 — from the grandkids' savings account
Andrea, a wife and mother from Philadelphia, recently found herself in a high-stakes financial and emotional crossroads, caught between family loyalty, cultural expectations and a commitment to financial stability. 'I am in a really tricky situation,' Andrea shared during a recent call to The Ramsey Show. 'My brother and my mom are asking me to [lend] my brother $3,000.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) The purpose of the request was to cover her brother's business expenses. But Andrea and her husband have been saving that money to try to pay down debt. Here's what Ramsey had to say to Andrea. Ramsey Show Co-host Jade Warshaw posed an alternative suggestion. 'Why doesn't she lend him the $3,000?' she asked the caller, referring to Andrea's mother. 'Because she doesn't have the money,' Andrea replied. Dave Ramsey's response? 'Neither do you. You're broke and in debt.' But the plot thickened when Andrea revealed her mother's solution: tapping into Andrea's children's savings. 'I talk to my mom sometimes, telling her we save money for the kids, right? So her idea was to take the money from the kid's savings account to give my brother the $3,000,' she said. 'She has a lot of ideas about what you should do with your money,' Warshaw noted, 'Do you feel like you have to listen to what she's asking you to do?' Andrea hesitated, noting her brother once helped her early in her marriage, but that support came in the form of small items for her kids. 'That was not $3,000. That was a hundred dollars,' Ramsey said. 'Because I got to tell you in my world, when grandma asked for the kids' money for the brother, that means grandma needs to be smacked.' Originally from Ecuador, Andrea noted that extended family support is a common expectation in her community. Ramsey responded, 'In your culture, it is more normal to share with extended family … but this is your household. And your household is separate.' Cultural norms can shape financial habits, but limits are limits. Even with that understanding, Andrea expressed hesitation. 'My brother is more … resentful. If you tell him something that he doesn't like … then he's not going to talk to me,' she told the hosts. She feared that saying no would lead to tension or silence. 'There's no consequence here other than adults choosing how they're going to behave next. If your brother gives you the cold shoulder, that's not something you can control,' Warshaw said. 'All you can control is your response.' Andrea admitted that her mom would likely try to persuade her. Ramsey's response was simply, 'No is a complete sentence.' He suggested that Andrea tell her mother, 'Mom, I love you. I love him. That's not in question. But this money is set aside for my children. And the answer is going to be no, no matter how long we talk.' Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Financial experts emphasize the importance of setting clear boundaries in similar scenarios. According to a survey by Ipsos for BMO, 34% of partnered Americans report that money is a source of conflict in their relationships. Money issues with extended family can add to that stress. Here are some tips to navigate tricky situations like these: Start with an open conversation. Schedule time to sit down and talk about your concerns without placing blame. For instance, Andrea could say, "I understand your situation, but I need to prioritize my children's future savings." Establish firm boundaries. Don't be afraid to set your limits and let your family know that they need to respect them. Offer different types of support. Look for other ways to help, such as recommending resources or financial counseling services that may be useful. Finally, if the conversation doesn't seem to be progressing, consider involving a neutral third party, such as a financial advisor, to help facilitate. It can be tough, but by approaching the situation with firm boundaries, it's possible to maintain family relationships while also protecting your financial well-being. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
8 hours ago
- Yahoo
Philadelphia woman in ‘tricky situation' after her mom asked for $3,000 — from the grandkids' savings account
Andrea, a wife and mother from Philadelphia, recently found herself in a high-stakes financial and emotional crossroads, caught between family loyalty, cultural expectations and a commitment to financial stability. 'I am in a really tricky situation,' Andrea shared during a recent call to The Ramsey Show. 'My brother and my mom are asking me to [lend] my brother $3,000.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) The purpose of the request was to cover her brother's business expenses. But Andrea and her husband have been saving that money to try to pay down debt. Here's what Ramsey had to say to Andrea. Ramsey Show Co-host Jade Warshaw posed an alternative suggestion. 'Why doesn't she lend him the $3,000?' she asked the caller, referring to Andrea's mother. 'Because she doesn't have the money,' Andrea replied. Dave Ramsey's response? 'Neither do you. You're broke and in debt.' But the plot thickened when Andrea revealed her mother's solution: tapping into Andrea's children's savings. 'I talk to my mom sometimes, telling her we save money for the kids, right? So her idea was to take the money from the kid's savings account to give my brother the $3,000,' she said. 'She has a lot of ideas about what you should do with your money,' Warshaw noted, 'Do you feel like you have to listen to what she's asking you to do?' Andrea hesitated, noting her brother once helped her early in her marriage, but that support came in the form of small items for her kids. 'That was not $3,000. That was a hundred dollars,' Ramsey said. 'Because I got to tell you in my world, when grandma asked for the kids' money for the brother, that means grandma needs to be smacked.' Originally from Ecuador, Andrea noted that extended family support is a common expectation in her community. Ramsey responded, 'In your culture, it is more normal to share with extended family … but this is your household. And your household is separate.' Cultural norms can shape financial habits, but limits are limits. Even with that understanding, Andrea expressed hesitation. 'My brother is more … resentful. If you tell him something that he doesn't like … then he's not going to talk to me,' she told the hosts. She feared that saying no would lead to tension or silence. 'There's no consequence here other than adults choosing how they're going to behave next. If your brother gives you the cold shoulder, that's not something you can control,' Warshaw said. 'All you can control is your response.' Andrea admitted that her mom would likely try to persuade her. Ramsey's response was simply, 'No is a complete sentence.' He suggested that Andrea tell her mother, 'Mom, I love you. I love him. That's not in question. But this money is set aside for my children. And the answer is going to be no, no matter how long we talk.' Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Financial experts emphasize the importance of setting clear boundaries in similar scenarios. According to a survey by Ipsos for BMO, 34% of partnered Americans report that money is a source of conflict in their relationships. Money issues with extended family can add to that stress. Here are some tips to navigate tricky situations like these: Start with an open conversation. Schedule time to sit down and talk about your concerns without placing blame. For instance, Andrea could say, "I understand your situation, but I need to prioritize my children's future savings." Establish firm boundaries. Don't be afraid to set your limits and let your family know that they need to respect them. Offer different types of support. Look for other ways to help, such as recommending resources or financial counseling services that may be useful. Finally, if the conversation doesn't seem to be progressing, consider involving a neutral third party, such as a financial advisor, to help facilitate. It can be tough, but by approaching the situation with firm boundaries, it's possible to maintain family relationships while also protecting your financial well-being. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10 hours ago
- Yahoo
Virginia woman asks Dave Ramsey for help with daughter, 18, who's never had ‘a single boundary' around money
Heather, who lives in Fairfax, Virginia, called into The Ramsey Show and asked co-hosts Dave Ramsey and Dr. John Delony if there's any hope to get an 18-year-old to budget when she's always had easy access to and been surrounded by wealth. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) She said her daughter was homeschooled and taught good values about money, but then went to a high school where 'people will drive a different car to school every day just to show off their wealth.' Heather says she has little control over her daughter's spending habits since her husband insists on paying for everything, including college. Heather's in-laws will also give her daughter money whenever she asks. 'You don't have a daughter problem — you have a husband problem,' said Ramsey. He also said that no one with common sense would want to marry "princess girl" who has "never known a single boundary." Heather's daughter is acting like a typical 18-year-old, said Delony, and he 'wouldn't begrudge her a second' because the way she's acting is 'developmentally appropriate.' That's where parenting is supposed to come in. Heather, who says she grew up poor, has been asking her husband to limit the amount of money they give their daughter — or, at least put it into an account they have access to so they can see how she's spending it and discuss it with her. But he says it's their daughter's decision on how she spends that money and she needs to learn from her own mistakes. Only it's their money, not their daughter's money. Delony says a never-ending checking account for an 18-year-old is a 'recipe for a disaster.' He said, "Prep yourself. Be prepared to wake up at 2 a.m. with a phone call from a Dean of Students of some college, cause it's coming." Since 'your husband doesn't care what you think,' he says Heather should start carving out some mom-and-daughter time each week. He suggests a regular breakfast date outside of the home until she graduates and leaves for college. He thinks Heather should open up with her daughter about what life was like for her when she was 18 years old. These weekly chats are 'planting seeds' so when Heather's daughter is having trouble she'll remember that she can trust her mom. Ramsey says the answer lies in being proactive. Heather needs to insert herself into her daughter's life and into her marriage in a proactive way — rather than standing on the sidelines watching a car wreck about to happen. 'If I'm you, I'm in a marriage counselor's office real soon because your husband is a twerp and what he's doing to you is unconscionable,' said Ramsey. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Only 28 states require high school students to take a personal finance course to graduate. That means parents may be a child's only source of financial education, learning the basics of earning, borrowing, lending and investing. A Quicken survey of 2,000 adults in the U.S. found a 'clear correlation' between early education in money and financial success as adults. Those who learned about money in their formative years were three times as likely (45% vs 14%) to have an annual income of $75K or higher than those who didn't. The survey suggests that teaching your kids healthy financial habits isn't a 'one-time conversation.' Rather, 'parents who talk with their kids once a week about the issue are significantly more likely to have kids who say they are smart about money.' Ramsey Solutions recommends that instead of giving kids an allowance, give them a commission for work done instead. 'When they do their chores, they'll earn a commission,' says the website. 'And when they don't, they'll realize they've made what they earned — nothing.' If they're old enough for a job, they'll also quickly learn that lesson. If your teen wants to make a larger purchase, like a laptop or used car, consider loaning them money and 'charging nominal interest so they get used to the concept,' says Daniel Hunt at Morgan Stanley Wealth Management. 'This can be as simple as lowering their ongoing allowance by a small amount until any advance has been repaid, with the amount of the decrease not counted against the amount owed,' he said in a blog post. 'Such an approach mimics a 'minimum payment' option on revolving debt.' Most importantly, they should 'understand that their debt is their responsibility and that there are serious consequences if they don't keep it under control,' he said. Teaching teens about money management also means modeling the behavior you want them to learn — after all, kids learn by example. 'If you buy everything you want for yourself with no limits on spending, then your kids will see that as normal behavior and do the same,' according to John Boitnott at But if you show your kids how and why you save money, 'then your kids may be more inclined to be financially responsible in the future.' This can be a challenge if both parents aren't on the same page, like in Heather's case. When it comes to teaching kids about money management and financial responsibility, parents should be in alignment on how they model financial boundaries — including the consequences of spending more than they earn. As Ramsey tells Heather, her husband won't 'participate with you in parenting,' so that may require marital counseling along with maintaining an open dialogue with her daughter. And, at least according to Ramsey, there may be no hope for their daughter until their 'marriage crisis' is addressed. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
