'There's No Chance You'll Be At The Same Job With The Same Income In 15 Years' – Dave Ramsey Weighs In On Caller's Concern Of Buying A Home

During a recent episode of The Ramsey Show, Dave Ramsey and co-host Jade Warshaw fielded a question from a caller named Rachel, a 35-year-old single woman working in children's ministry in Cleveland, Ohio. Rachel asked whether she could realistically become a homeowner and start saving for a meaningful retirement on her $42,000 salary. 

Don't Miss:

• Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
• Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here’s how you can earn passive income with just $100.

Rachel shared that she has about $7,000 in debt, which she expects to eliminate by June or July. She has also already paid off $12,000 in debt this year, demonstrating her commitment to improving her financial situation. She lives in a small town near Cleveland, where home prices range between $80,000 and $120,000 – potentially within reach on her income.

"I think that it’s possible," Warshaw stated. "I think that right now you make $42,000, but I can’t imagine that your salary will never go up."

Warshaw acknowledged Rachel's financial diligence and outlined important next steps to prepare for homeownership. These included finishing debt repayment, building an emergency fund with three to six months of expenses and calculating how much house she could afford using a mortgage calculator.

See Also: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.

However, Warshaw emphasized that achieving these goals could take time and depend on Rachel's salary and income growth. She suggested Rachel consider supplementing her ministry work with side hustles to accelerate her progress.

Ramsey highlighted an important reality: "The probability that 15 years from today, you’re 50 years old and you’re doing this exact same thing making this exact same income is zero. There’s no chance."

While Rachel may continue in ministry, Ramsey pointed out that most people's incomes increase over time as they gain experience and pursue new opportunities. He explained that people typically progress throughout their lives, including changes to income and career growth. 

Ramsey encouraged Rachel to stay out of debt, save consistently and invest in a Roth IRA to build wealth over time.

Trending: The average American couple has saved this much money for retirement — How do you compare?

Warshaw and Ramsey both noted that staying in ministry may require accepting a more modest lifestyle. While Rachel's $42,000 salary is below the national average household income of $78,000, Ramsey assured her that financial stability can be achieved with intentional planning.

Warshaw reminded Rachel that driving a used car, for example or choosing affordable housing isn't a limitation but a reflection of the values and priorities tied to her career choice.

Ultimately, both Ramsey and Warshaw affirmed that homeownership could be a realistic goal for Rachel. By sticking to a plan, staying out of debt and making smart financial decisions, Rachel could afford a modest home in her price range.

Warshaw reinforced the importance of aligning financial decisions with personal values, while Ramsey emphasized contentment as a key to financial peace: "Godliness with contentment is great gain."

Rachel's story reminds us that with dedication and financial discipline, achieving big goals – like owning a home – is possible, even on a modest income. 

Read Next:

• Studies show 50% of consumers think Financial Advisors cost much more than they do — to debunk this, this company provides matching for free and a complimentary first call with the matched advisor.
• This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100 for properties like the Byer House from Stranger Things.