
My father and I were standing beside his brand-new car, admiring the sleek black paint and shiny chrome details. I was already thinking about when I could take it out for a spin.
Suddenly, a homeless man shuffled over. His ragged appearance seemed out of place next to us as he stopped a few feet away.
“Excuse me, sir. I don’t mean to bother you, but… if you have any work, I’d be glad to earn a few dollars. I can wash the car or… clean your shoes.”
I looked at him, repulsed by his appearance.
“No, thanks,” I snapped. “I don’t want you touching my stuff with those dirty hands.”
The man didn’t respond. He didn’t argue or make a scene. He just gave a small nod and walked away, disappearing into the city crowd like he was used to hearing that kind of response.
I felt a strange satisfaction as if I’d defended my world. My father had been quiet the entire time. Later that evening, though, he called me into his study, his face unusually serious.
“Declan,” he started, “I’ve watched you live your life without any understanding of what’s really important.”
I frowned, not knowing where this was going.
He continued, “That man today… you treated him like he was less than human. That attitude is going to destroy you. You think money makes you better, but it’s the one thing that can ruin you.”
I tried to interrupt, but he raised his hand.
“From now on, you’re not getting another dollar from me until you learn to be a decent person. No money, no inheritance, nothing.”
“What do you mean, nothing?”
“I mean, you’re going to earn everything on your own. I’m giving you these clothes from the second-hand store, and that’s it. You need to learn the value of money, Declan.”
That wasn’t just talk. I found my accounts frozen. No more luxury, no more easy life. I was left with nothing and no way out.
The first days on the street were nothing short of humiliating. One minute, I was surrounded by luxury, and the next, I was searching for a spot to escape the cold.
The reality of it all hit me harder with each passing day. I always thought it could never happen to me. Yet there I was, shivering under a bridge, wishing for even a fraction of what I once had.
My mind kept drifting back to Layla. I had promised her a night out somewhere elegant and expensive, a place worthy of her beauty.
But now, what will she think if she sees me like this?
I wore ragged clothes, had unwashed hair, and had no money in my pockets. The thought of showing up in this state was unbearable. On the second day under the bridge, I heard a voice.
“Hey, are you alright?”
A young woman was standing in front of me.
“You look like you could use some help,” she said, offering me a hand.
I hesitated for a second, ashamed of what I had become. But I had no choice.
“I’m a volunteer at a shelter nearby,” she said. “It’s not fancy, but it’s warm, and we can get you cleaned up and something to eat.”
She led me down a few streets until we reached a modest house. The furniture was worn, but it didn’t matter. After spending nights under the open sky, it felt like a palace.
Mia motioned me to sit.
“Here, let me get you something to drink,” she said as she handed me a cup of hot tea. “This place isn’t much, but we try to make it comfortable for everyone who comes through.”
I looked around. “Why are you helping me?”
“It’s my job to help. But more than that, I know life can turn upside down in the blink of an eye. I’ve seen people from all walks of life come through here. You’re not alone in this.”
Her words hit me harder than I expected. I nodded, grateful for the first bit of kindness I had felt in days.
Later, Mia brought me clean clothes and showed me how to clean up.
“I know things seem bad now,” she said as I combed my hair in the mirror, “but you can get through this.”
Her kindness gave me hope.
The next day, Mia helped me prepare for a job interview at a local restaurant.
“It’s not glamorous, but it’s a start.”
I knew she was right. I had to start somewhere. The interview was short, and I began my duties immediately.
I started doing the dirtiest work: taking out the trash, mopping floors, washing dishes. It was tough, but I kept reminding myself that I had to earn enough to stay at a motel and buy decent clothes for the date.
Each day was hard, but with Mia’s support, I started to believe I could face whatever came next.
A week of hard work passed, and it felt like the longest week of my life. Every day at the restaurant was a struggle. My hands, once soft and unblemished, were now calloused from mopping floors and scrubbing grease off dirty dishes.
It seemed like everything was working against me. Plates always slipped from my grasp, buckets of water splashed over my shoes. Each time something went wrong, the manager was quick to pounce.
“Declan, can’t you do anything right?” he barked one afternoon as I fumbled with a tray of dirty dishes. “This isn’t a playground. You mess up again, and you’re out!”
I could feel the stares of the other employees burning into my back, but I just nodded, biting my tongue. My pride had already taken enough hits.
Outside, as I walked home from work, I heard kids running down the street, laughing loudly.
“Look at him!” one of them shouted, pointing at me. “He can’t even walk straight!”
They giggled as I stumbled, my feet dragging from exhaustion.
When I’d finally make it back to the shelter, I’d go straight to the shower. Every night, I collapsed onto the bed, too tired to even think, only to wake up and do it all over again the next day.
By the end of the week, payday came, and I eagerly opened the small envelope, hoping it would be enough to keep me going. But inside were only a few crumpled bills.
“That’s it?” I muttered, stunned.
The restaurant owner looked at me coldly.
“You’re homeless. And you’re an awful worker. Be glad I gave you anything at all.”
At that moment, I saw myself in the homeless man I had once insulted. I finally understood what it felt like to be treated as if you didn’t matter.
Despite everything I had been through, I decided to go on that long-promised date with Layla. I hoped she would see me for more than the wealth and status I used to flaunt.
I arrived at the café, my palms sweating. Layla walked in, her high heels clicking sharply against the floor. She was just as stunning as ever. Her eyes scanned me from head to toe.
“Declan,” she sighed, “I thought you’d at least show up in a decent suit. What happened to the car? I expected dinner at that fancy place downtown, not… this.”
She gestured around at the modest café, her voice dripping with frustration.
“I’m sorry, Layla. Things have changed for me. I don’t have the money I used to, but I thought maybe we could still…”
She cut me off, shaking her head.
“I’m not here to help you rebuild yourself, Declan. If you can’t offer me the life I deserve, then what’s the point?”
Her words were like a slap in the face, but they were also the truth I needed to hear. Layla wasn’t the woman I thought she was. She was just a reflection of my old shallow life built on appearances and material things.
After she left, I sat there for a few minutes, processing it all. In my old world, I would have been crushed, but now, I no longer needed to chase after someone who only valued me for money.
With the little money I had earned, I bought a box of pastries from a local bakery. As I walked through the park, I spotted the homeless man I had insulted weeks ago. I handed him the box.
“I’m sorry,” I said. “For how I treated you before. You didn’t deserve that.”
“We all have bad days,” he said simply, accepting the pastries.
His words lifted a bit of a weight off my shoulders. Then, with the last bit of cash I had, I bought a big bouquet of roses and headed to the shelter.
Mia was there, as always, helping others with a warm smile on her face. I handed her the flowers.
“Thank you, Mia. For everything. I don’t know where I’d be without your help. I was wondering… would you like to go for coffee with me sometime?”
Mia’s eyes lit up. “I’d love that, Declan.”
At that moment, I realized something I hadn’t understood before. Life isn’t about money or status, or how you look to others. It’s about the people who lift you up, who see you for who you really are, and help you become better.
My father appeared later that evening and admitted he had been watching me all along.
“I’m proud of you, son,” he said quietly. “Let’s go home.”
And for the first time, I felt like I had earned it.
Tell us what you think about this story, and share it with your friends. It might inspire them and brighten their day.
How to Own Your Dream Home
For most people, their first home isn’t their dream home. It starts off nice enough. But as time goes by and your family grows, starter homes tend to get a little . . . cramped.
But don’t hate on your current home too much. Because while it gave you a safe and dry place to lay your head at night, it was also setting you up to own your dream home someday.
We’ll show you how it all works and walk you through the steps that’ll get you in your dream home—one you can actually afford!
How to Get Your Dream Home in 5 Steps
Here are the steps:
- Follow the Financial Basics
- Find Out How Much Equity You Have
- Set Your New Home-Buying Budget
- Find the Right Dream Home for You
- Be Picky and Patient
Now let’s cover each step in more detail.
Step 1: Follow the Financial Basics
First thing’s first—you have to get out of debt, get on a budget, and build up an emergency fund of 3–6 months of expenses. Sounds pretty basic, right? If you haven’t completed these steps, then you’re not ready to upgrade to your dream home . . . yet.
Now, when you’ve got house fever, it can be hard to focus on paying off debt or saving an emergency fund before you upgrade your home—especially when you’re feeling the pressure of rising home prices and interest rates.
But whether it’s your second or third house, you should only buy a home when you’ve covered the financial basics we mentioned above. Then you’ll be ready to start the journey toward owning your dream house.
And that journey starts with your home equity. What’s equity? Well, we’re glad you asked . . . that brings us to the next step.
Step 2: Find Out How Much Equity You Have
Home equity is a pretty simple concept: It’s your current home’s value minus whatever you still owe on your mortgage.
See, in most cases, your home’s value increases over time. Similar to other long-term investments (like retirement accounts), homes gradually increase in value. There have been periods of ups and downs in the market to be sure, but the value of real estate has consistently gone up. According to the St. Louis Federal Reserve, the average sale price of a home has increased over 2,300% from 1965 to 2023! And in the last ten years (2013 to 2023), there’s been a 68% increase.1 As your home increases in value, so does your equity. In real estate terms, this is called appreciation.
Other factors that increase your home’s equity include:
- Added value: Home improvement projects like adding square footage, updating fixtures and appliances, or even just slapping on a new coat of paint can add value to your home.
- Mortgage paydown: Paying down your mortgage not only gets you out of debt faster, it also builds your equity. The less you owe on your home, the more equity you have.
The amount of equity you have gives you a pretty good idea of how much money you’ll end up with after selling your house. You can use that money to make a hefty down payment and cover the other costs that come with buying a home.
Find expert agents to help you buy your home.
So, how do you determine your home’s value? Well, you can get a ballpark estimate on real estate websites like Zillow, ask a trusted real estate agent to perform a competitive market analysis (which they’ll do anyway if they’re helping you sell your house), or get a professional appraisal.
Finding out your home’s equity will involve a little math, but it’s third-grade-level stuff, so don’t sweat it.
Here’s what we mean. Let’s say your home’s current value is $355,000. When you sell that house, you’ll have to pay for between 1–3% of the sale price in closing costs, another 6% in fees for the real estate agent who helped you sell it, and whatever’s left to pay off on your mortgage.

That means you can estimate clearing over $223,000 from selling your house. That’s a killer down payment on your dream home! And if your home is paid off, that’s even more money to put down and use to pay for things like repairs and moving expenses.
Step 3: Set Your Dream Home Budget
Once you know how much you’ll clear from the sale of your home, you can start making a budget for your dream home.
The key to owning your dream home (instead of it owning you) is to keep your mortgage payment to no more than 25% of your take-home pay on a 15-year fixed-rate mortgage, along with paying a down payment of at least 20% to avoid private mortgage insurance (PMI). Never get a 30-year mortgage even if the bank offers it (and they will). You’d pay a fortune in interest—money that should go toward building your wealth, not the bank’s.
So, let’s say your take-home pay is $4,800 a month. That means your monthly mortgage payment shouldn’t be any bigger than $1,200. By the way, that 25% figure should also include other home fees collected every month with the mortgage payment like homeowners association (HOA) fees, insurance premiums and property taxes.
Plug your numbers into our mortgage calculator to see how much house you can afford.
And don’t forget to budget for all those other costs that come with the home-buying process in addition to your closing fees—things like moving expenses and any upgrades or repairs you might need to make. You don’t want these hidden costs to catch you off guard or drain your emergency fund.
Step 4: Find the Right Dream Home for You
This is where things get real. After all your hard work building up your equity (and doing a lot of math—don’t forget that), you’re finally ready to start the house hunt. Woo-hoo!
But don’t lose focus. Stay zoned in by making a list of features that make a home fit your budget, lifestyle and dreams—and stick to it throughout your house hunt. Here are a few ideas to get you started.
- Don’t compromise on location and layout. If you plan to be in this home for the long haul, an out-of-the-way neighborhood or a wacky floor plan is a deal breaker. Look for a community and layout that’ll suit your lifestyle now and for years to come.
- Think about how much space your family needs. While your budget has the final say about how much home you buy, you’ll want your dream home to fit your family’s needs through different life seasons.
- Consider the school districts. If you have or want kids, the quality of the nearby school districts is probably already on your mind. But even if you don’t have kids or you’re retired, keep in mind that having good schools nearby could increase your home’s value.
- Look for a house that’ll grow in value. Are home values rising in the area? Is the number of businesses going up? These factors can help you figure out whether your dream home will turn into a good investment.
- Count the costs. Want that fancy master bathroom with the multiple showerheads and the Jacuzzi tub? Be clear on what’s a must-have and what’s nice to have. And don’t forget, upgraded features like that will make your dream home more expensive.
Step 5: Be Picky and Patient
We know you’re anxious to get into those new digs, but be patient. Wait for the right house at the right time. Don’t spend your money on a less-than-ideal home just because you’re tired of looking.
The key is finding a good real estate agent who understands your budget and refuses to settle for “good enough.” They’re as committed to your dream as you are and will have your back throughout the entire process, no matter what it takes.
In addition to teaming up with a great real estate agent, you can take a couple of extra steps to make sure you’re ready to strike as soon as the right home comes up:
- Get preapproved for a 15-year fixed-rate mortgage. Having preapproved financing is a green flag for sellers—especially in multiple offer situations. And because this puts most of your information in the lender’s system, you’ll be on the fast track to closing once your offer is accepted.
- Offer earnest money with your bid. Earnest money is a deposit to show you’re truly interested in a home. Usually it’s 1–2% of the home’s purchase price and it’s applied to your down payment or closing costs. Even if the deal falls through, you can almost always get most of it back.
Find a Real Estate Expert in Your Local Market
Now, you might be thinking you have some work to do before you’re ready to find your dream home. Or you may be realizing your years of hard work are about to pay off! Regardless, if you follow these steps, you’ll find the house you’ve always wanted and avoid a purchase you’ll regret.
Once you’re ready, connect with one of our RamseyTrusted real estate agents. These are high-performing agents who do business the Ramsey way and share your values so you can rest easy knowing the search for your dream home is in the right hands.
Find the only real estate agents in your area we trust, and start the hunt for your dream home!
Leave a Reply