[Music] Scott's question is up next. He says, My wife and I are listing our home this week. Using the proceeds from our existing home, should we put just the 20% down on the next one and keep some cash on hand, or put down up to about 40%? Hash messy middle. These are the choices that he's thinking about as they're going to their next home purchase. Um, what do you guys have to say? I want to let you kind of give the meat on this, but I was just going to set that the groundwork is Scott. This is where, unfortunately, as financial advisers, we have to tell you it depends. It depends. Um, but I, but to give you some triage steps, I mean, it is definitely one of those things where if you don't know where you are on this process, because the depends could be the 20%, the depends could be take all 40%, because you don't want to be paying that high interest rate, especially when you're this far ahead in your savings.

but you kind of need to come back to where you are at in this journey to kind of figure this all out. Yeah, the first thing I would encourage you to do, we have a home buying checklist. You should go to money.com resources and go through our home buying checklist to answer these questions about your new home, like what's my time horizon, what's the family situation, how big is my emergency fund. And then you got to do exactly what Brian just said in terms of triaging where am I today. Am I you, you said #messy middle. I know that in the messy middle, money might be kind of tight and things might feel pretty constricted, and maybe savings rate hasn't been what it would have been or could have been if you were not in the messy middle. So, you might need some of those proceeds to be working for you, to be building for the future. If you haven't done the know your number course and you don't know what your finish line you're working towards is, it's difficult to know are you at the

right starting point today, or will some of the proceeds from your current house put you on that right starting point? 'Cause then you have to measure that with all right when I go to buy this house. If I only put down 20%, am I still going to be inside of 25% of my gross pay for that monthly payment? Or do I have to at least put 30% down just so I get the housing payment inside of that 25%? So, you have to kind of triage for yourself where you are and which one of those decisions makes the most sense. You can't run afoul of the rules. You have to do, you know, you have to make sure that you're going to be in the house for 5 to 7. You have to make sure total housing costs don't exceed 25%. And then once you get there, then it becomes, okay, where can these dollars be best used for me personally? And if I'm in the messy middle and I'm in my 30s, am I going to be better served

putting an extra 20% down to go save 6.02% in mortgage interest. That is a viable and realistic thing you could do. Or would I be better served putting that money to work? Have I gone out to moneyguy.com resource? Have I played with the wealth multiplier? Do I know what those dollars can turn into by the time I get to retirement? And which one of those is more valuable for where I am in my journey right now? And Scott, the answer for you may be different than the answer for your neighbor. That's what's beautiful about personal finance, is that it's personal. And in this one right here, once you've made sure you've checked all the boxes and you've met all the metrics, then you have to decide, okay, what makes the most sense in my unique and specific situation. Don't skip the homework. Actually do the work. Figure out how you maximize this moment 'cause this is a great opportunity. I just don't go off just the gut. Actually do the homework. Do the things that Bo

gave you all the kind of he laid out the road map so you can maximize this moment. Now, there was a little Easter egg in there that I want us to address because I think some people missed this. He said, Should we put down 40% or put down 20% and keep some cash on hand? Right? So, here's what you cannot do, and I'm going to say cannot do. You can't go buy a house and burn all of your cash. We see far too many people do this 'cause you go get in the house and you use every bit of your savings, and you, well, then you got to put blinds on the house, or you got to go buy a lawnmower. Oh, wow, you didn't realize property taxes were about to get re, or whatever the thing is. Whenever you go to buy real estate, especially if it's your primary residence, you have to have an emergency fund in place, and you cannot spend that emergency fund down, or you will be swimming naked, and when you're swimming

naked, and the tide goes out. That's when you get exposed. So, you don't want to put yourself in that situation. You have to make sure that you keep cash on hand for an emergency.

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