 ha ha ha hello before I get started yes I'm actually wearing a t-shirt today you know why because it's 50 freaking degrees in Minnesota today I I don't know why it's February and it is so warm outside it feels so nice so I have taken advantage of the t-shirt weather on the inside of my parents place well hello everybody and welcome back to my channel today we're talking about fpu and this is going to be two lessons in one um week number seven let me refer to my notebook is retirement and college planning and then week number eight is all about buying and selling a home I am the only person in the class that is not selling a home but buying a home very soon um actually this weekend I was out looking at homes and that vlog I believe is already up by the time that this is published so feel free to check back on my channel if you want to watch that sometimes home buying journeys are kind of fun for other people to watch so the coordinator actually gave me uh lesson eight like the dvd to take home and I just watched it so I had to kind of figure that out within my day and I've got probably about 20 minutes left of daylight so we are on a time crunch before I get into the class lessons and what I am learning let me tell you a little bit about myself if you haven't watched my videos before hello my name is Emily hi there I am 36 I am single um I am currently living in my parents summer home after I was laid off from my job after nine years um up in Fargo North Dakota I moved back to the Minneapolis St. Paul area where my parents had a summer home also I'm closer to the city where I originally grew up in and now I am living here rent free they are allowing me to do this because they know that I am currently saving for a home so that's kind of where I am on the Dave Ramsey baby steps I am on baby step 3b which means that I have already funded my thousand dollar emergency fund which is step one baby step number two is paying off all your debts smallest to largest and not your mortgage obviously um and then baby step three is three six months of emergency funds and then 3b is saving a 20 down payment for a home which I have and so now I am starting to look so um I figured I wanted to take this class because I just really wanted to learn more and I'm a huge Dave Ramsey fan I will put the link below to find more information about this FPU class if you guys are interested in joining it um there's other locations all over the place not just um in the Twin Cities my takeaways from week number seven let's do this in like two parts let's do like week number seven and then we'll go into like the actual house stuff week number eight so week number seven is retirement and college planning so since I don't have any children the college planning is kind of like null and void for me um there are some things that I would like to do possibly for my nephew someday but he is two years old so and I don't know what his parents have already kind of planned for him so I don't want to step on anybody's toes but as he becomes a teenager and like you know 11 12 13 I will probably be bringing up some things to his parents so we could have some conversations about what you know he might want to do and also then hopefully I will be in a very good financial position hopefully fingers crossed my house will be paid off by that time and I'll be able to um do some things that I really want to do so I'm not really going to talk about that too much because like I said it just doesn't really pertain to me but the um investing really does because obviously we're all going to get older and we all need retirement so um the next step is really 15% of your income going into some sort of retirement account my current employer does not offer any kind of like 401k or Roth option so I'm going to be doing this all on my own I think I've said this before but I'm not sure where and you know I know I've said it on the videos somewhere but I'm not really sure which video I've said it on but um I will not be contributing anything towards my retirement until I get my house just because I want to save up as much cash as possible towards the house because every dollar I put into that is better suited there right now because I'm only doing a temporary non-retirement if that makes sense so what I'm planning on doing is as soon as I get my house the next month I will be starting to do the 15% of my income away in retirement accounts so Dave Ramsey was talking a lot about Roth IRAs and I think that's a great idea um the Roth IRAs are currently when they did the video it's only 5000 a year now it's at 5500 a year per person and um that is something that I really really want to do so that is a major goal of mine for 2017 is to make sure I fully fund that at 5500 dollars 5500 dollars is not the 15% of my annual income so I would have kind of more leftover however I'm gonna do this midway throughout the year so maybe 2017 will only be the 5500 into a Roth I'm not sure just depends on when I find a home or if I'm building like when the build goes through and all of that um but like I said I'm really just focusing on saving up all of that extra cash for the down payment right now but it was interesting to hear all of the different you know statistical scenarios of people putting away money and just the mathematical chart if you will so I'm very passionate about saving I'm also very passionate about retirement and it's like literally killing me um to not be contributing anything into retirement and had to kind of like push pause after my job loss but I still already have other monies in retirement accounts that are still earning an interest for me um from previous employment however it's I'm not contributing anything to it so it's just kind of like ooh it bothers me so much but I know I have an end goal in mind with the house and then once that's going to go through then I can start a baby step four five and six as for how you should be investing um Dave really goes upon like a that's almost like a pie chart it's like 25 percent in four different types of funds and I'll list those right now um and then the first one is growth and income the second one is growth third one is international and then the last one is aggressive growth so you want to be essentially contributing 25 percent to all of these in good growth stock mutual funds and that is what I'm going to be looking at for the future when I do that so that is really it for week number seven let's go into week number eight since I just literally watched the DVD um and I like just kind of wrote a couple of notes on there we definitely want to get not we um like like Dave and I are like friends now obviously um so when Dave was talking about 15-year mortgages so you definitely want to try to get a 15-year mortgage um I'm going to be doing something a little bit differently I'm going off the plan just slightly but that's just my own personal thing I think everyone can do what they want to do I will be doing a 30-year mortgage and the reason being is because it is just me it makes me feel so much more comfortable to have a little bit of that buffer but I will be paying off the mortgage early so um I think this is like the only thing that I'm doing that's not like part of the plan like the Dave Ramsey plan so like don't shoot the messenger that's just what I'm doing because it's only me and I'm only a one income person um if I were to lose my job or something were to happen I get disabled something horrible happens I want to make sure that my house payment isn't going to like completely sabotage me so again like I said I'm going to be paying extra every month anyway I'm planning on getting a renter so that's going to help with that and I will you know continue on my financial journey of being debt-free but that just makes me feel better and I can always pay down my mortgage early if that's part of the budget which it totally will be but if I get in a bind I just don't want to be so cornered that I just feel like my back's up against a wall and I don't know what to do I could always refinance someday in a 15-year fixed but um you know that's just my own personal choice and I've done the numbers and I've done the math but if you pay it off early that's okay too and that's really my plan also I need to look into mortgages that have no prepayment penalty that is the biggest deal when I'm looking at places um to get mortgages from because I just want to make sure that you know say my mortgage let's just use round numbers if my mortgage is a thousand dollars and I want to pay 1500 every month I don't want it to be a struggle every single month when I kind of pay 1500 I can obviously send in a check for a thousand that can go towards like my payment and then 500 towards the principal not prepaid interest so um I know that there are some mortgage lenders out there that do give you a penalty for prepayment and I just want to make sure that my mortgage is not going to be like that and that is a huge huge thing for me um when I'm working with a mortgage company so I haven't selected one yet but I will be selecting one hopefully very soon also in the lesson 8 which is all about the buying and selling I'm going to focus on the buying stuff because really the selling stuff has nothing to do with me right now but the average person using the Dave Ramsey plan takes seven years to pay off their home completely regardless of what stage that they're at so that's on average so I would love to do mine in less than 10 that would be a huge goal and I think mathematically I could make that work especially if I had a renter so I think that is going to be a huge for me plus any raises I get any additional income that I get throughout the year would definitely be pushed towards that mortgage or building up emergency funds or and when I say emergency fund not my regular emergency fund but like I'm going to do like a house fund too for like repairs and things like that because that's going to come up and I think that's a wise thing to do so kind of beef up that emergency fund just a little bit just because I know it's a house and things are going to happen so why not and then also an interesting to statistic I can't talk today from the home lesson was that 31 percent of homes in the United States have no mortgage debt which is actually kind of like a really nice number for some reason I thought it would be a lot lower like 20 percent or something like that so it's definitely doable not having mortgage debt on your home and I think it's a really really wise choice to try not to have mortgage debt and I think once I get this house I am definitely going to be very gazelle intense with watching every dollar and watching every penny coming in and out and making sure that I'm making the right decision for me and just to let you guys know like the renter is totally totally a temporary solution to this problem once my house is paid for I don't think I'm going to have a renter anymore unless I find a renter that I get along with really well and it's working really well for the both of us and essentially it's cash flowing at that point I think that's the only reason I would do that because the reason that I want them there is so they have a great place to stay first of all and then second of all they can help me pay down my mortgage even faster so even if it was just me alone I would still be paying off a little bit more of my mortgage every single month anyways so I don't know I obviously I would have to depend but I feel like everything is temporary for right now but that's kind of just like where my headspace is at so that was my recap for lesson seven and lesson eight next week is going to be the last lesson so I will be recapping the entire thing as well as talking to you guys about whatever lesson it is I don't look forward in my little book here because I want it to be a surprise but I really really enjoyed it so far and I want to say that the last three lessons the insurance the investments and college and then obviously now the home buying stuff has been really really great probably because I'm at those stages so it's just nice to learn more as well as I can so I'm really looking forward to next week and recapping this entire series for you guys down below I will be putting all of the links to Dave Ramsey if you're interested on how to join a class in your area and things like that if you have any questions feel free to post them below I will get back to as many of you as I possibly can make sure to give the video a thumbs up if you like these financial videos and also make sure to subscribe I'm here every Monday Wednesday and Friday with new content and I upload at 9 a.m central standard time so if you subscribe you just don't miss out on anything and you will see it in your feed as I produce new videos for you guys so anyway I'm gonna let you guys go for now thank you so much for watching I really really appreciate it and I will see you all in my next video bye guys