Carly had her whole life ahead of her, but the prom seemed like the most important thing. Despite struggling financially, her mother and grandmother had saved some money for the dress of her dreams. However, one bus trip forced her to choose between her own happiness and helping others.
Carly, a sixteen-year-old girl, lived with her mother, Dina, and grandmother, Holly, in a small, cozy apartment.
Life had never been particularly easy for the family. Money was always tight, and they often had to make sacrifices to get by.
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But despite their financial struggles, the three of them shared a deep bond that made the tough times a little more bearable.
They had love, and to Carly, that love meant everything.
Today, however, was different. Carly could feel the air buzzing with excitement.
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Prom was just around the corner, and though she hadn’t said much about it, she had secretly been dreaming of wearing a beautiful dress to feel like she belonged.
Everyone at school had been talking about their extravagant outfits and fancy plans, and Carly had tried to hide her disappointment, knowing that her family couldn’t afford anything like that.
But this morning, something special happened. Dina and Holly called Carly into the kitchen, where they were both smiling warmly.
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The smell of freshly brewed coffee filled the room, and the sunlight streamed through the window, giving the moment a cozy glow. Dina motioned for Carly to sit down, her eyes sparkling.
“We know how important your prom is to you,” Dina began softly, her voice filled with affection.
“We’ve been saving up, and though it’s not much, we want you to have something special.”
Carly blinked in surprise as her grandmother slid an envelope across the table toward her. Curious, she opened it and saw several bills tucked neatly inside.
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Her breath caught in her throat. It wasn’t a fortune, but it was more than enough to buy a beautiful dress.
Tears of gratitude filled her eyes as she looked up at the two women who had done everything they could to make her feel special.
“Thank you, Mom. Thank you, Grandma,” Carly whispered, her voice thick with emotion. “I can’t believe you did this for me.”
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Holly reached out and gently squeezed Carly’s hand.
“You deserve it, sweetheart,” she said with a loving smile.
“Now go find the dress that makes you feel like the princess you are.”
Filled with joy and excitement, Carly quickly got ready and headed out to catch the bus to the local dress shop.
She clutched the money tightly in her hand, feeling like the luckiest girl in the world.
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She had no idea what was about to unfold, but for now, she was happy and hopeful, imagining the perfect dress that would make her prom night unforgettable.
As the bus rattled along the familiar bumpy roads, Carly sat near the front, clutching the envelope of money her mother and grandmother had given her.
Her heart buzzed with excitement at the thought of choosing something beautiful, something that would make her feel like a princess for just one night. She smiled to herself, imagining the shimmering gowns waiting for her at the dress shop.
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But then, a movement from the back of the bus caught her eye. A man, dressed in shabby clothes and looking quite nervous, sat hunched over in his seat.
He kept glancing around, as if worried someone might notice him.
Carly frowned slightly, finding his behavior strange, but quickly returned to her daydreams about the perfect dress. Maybe something with lace, or maybe satin?
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Suddenly, the bus screeched to a halt, jolting Carly out of her thoughts. Two workers from the bus station stepped on board, walking down the aisle, checking everyone’s tickets.
Carly calmly reached into her pocket, pulling out her ticket when it was her turn. The worker gave it a quick glance and moved on. All seemed normal—until they reached the man at the back.
The man froze, his hands trembling as the worker asked for his ticket. “I… I don’t have it,” he stammered, his voice shaky.
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“I left my wallet at home.”
The workers exchanged annoyed glances.
“No ticket means a fine,” one of them said sternly.
“You’ll have to pay up, or we’ll have to call the authorities.”
Panic washed over the man’s face. “Please, I’m begging you,” he said, his voice trembling even more.
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“I’m trying to get to my daughter. She’s sick, and I have to take her to the hospital. I… I forgot my wallet in my rush. Please, I just need to get to her.”
The bus workers didn’t seem convinced. One of them shook his head.
“We’ve heard every excuse in the book. If you can’t pay the fine, you’ll have to explain yourself to the police.”
Carly, who had been watching the scene unfold, felt a sudden tug at her heart. The man’s desperation was palpable, and she could see the fear in his eyes.
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Something about his story struck a chord with her—she couldn’t imagine what it would be like to be so helpless in a situation like that, especially with a sick child waiting for him.
Carly hesitated for a moment before standing up. Her legs felt wobbly as she made her way to the back of the bus.
“Is it true?” she asked softly, turning to the man. “Is your daughter really sick?”
The man looked up at her, his eyes wide and filled with tears. “Yes, she is,” he whispered.
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“I just need to get to her. Please, I wouldn’t lie about this.”
Carly’s mind raced as she glanced down at the envelope of money still clutched tightly in her hand.
But she couldn’t shake the feeling that there were more important things than a pretty dress.
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Without thinking too much, she took a deep breath and handed the money to the bus workers.
“I’ll pay his fine,” she said quietly, feeling a strange mixture of sadness and resolve.
“His daughter’s health is more important than anything else.”
The man, whose name she later learned was Rick, stared at her in disbelief.
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“I… I can’t believe you did that,” he said, his voice filled with gratitude.
“You’ve saved me. Thank you!”
Carly smiled weakly. “It’s okay. I hope she gets better soon.”
Rick asked her about her school and when her prom would be.
After exchanging a few more words of thanks, he hurried off the bus, racing to get to his daughter. Carly watched him go, her heart heavy.
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She had given up the money for her dream dress, but deep down, she hoped she had made the right decision.
As the bus pulled away, Carly sat back in her seat, unsure of what the rest of the day would bring but feeling a small flicker of hope that she had helped someone in need.
Carly walked home, her heart heavy with a mix of emotions. The excitement she had felt earlier was now replaced with sadness and uncertainty.
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Still, as she reached her front door, she couldn’t help but feel a bit of dread.
When she stepped inside, her mother, Dina, and grandmother, Holly, were both waiting for her, their faces eager to see the dress they had sacrificed so much to buy for her.
Dina’s smile quickly faded when she saw Carly standing empty-handed.
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“Carly, what happened?” Dina asked, concern creeping into her voice. “Where’s the dress?”
Carly hesitated, then explained everything—how the man on the bus had needed money to help his sick daughter and how she had used the money for the dress to pay his fine instead.
As she spoke, Dina’s face turned red with frustration.
“You gave away all the money to a stranger?” Dina exclaimed, her voice rising. “How could you be so naive, Carly? That man could have been lying to you! What if he tricked you?”
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Carly’s chest tightened. She hadn’t considered that she might have been fooled. Tears welled up in her eyes as she realized the weight of her decision.
Holly, sensing her granddaughter’s distress, stepped forward and wrapped her in a comforting hug.
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“It’s okay, sweetie,” Holly said softly. “You did what you thought was right. Helping someone in need is never wrong. Remember, good things will come back to you.”
But Dina, still upset, added, “That was all the money we had for your prom! What are you going to do now?”
Carly wiped her tears, unsure of how to answer. Though her heart was conflicted, she knew she had acted with kindness, even if it came at a cost.
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The night of the prom arrived, and Carly stood outside the school, feeling a knot of nervousness in her stomach. She had chosen to wear an old, plain dress—one she had worn many times before.
The faded fabric didn’t sparkle or shine like the gowns of the other girls, and as she approached the entrance, she couldn’t help but feel out of place.
She glanced around and saw groups of girls, all dressed in beautiful, expensive gowns.
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Their laughter floated in the air as they twirled in their dresses, showing off the designer outfits they had picked out.
Carly’s heart sank as she overheard some whispers and giggles directed at her. She tugged at the hem of her dress, feeling even smaller and more embarrassed.
Too shy to walk inside with the others, Carly sat down near the entrance, her hands folded in her lap. She felt the weight of the night pressing down on her, and for a moment, she regretted coming at all.
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Then, she felt a gentle tap on her shoulder.
Startled, Carly looked up and saw Rick, the man from the bus, standing there with a bright smile. Beside him stood a little girl holding his hand.
“Carly, this is my daughter, Haley,” Rick said warmly. “She’s healthy now.”
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Haley beamed at Carly and handed her a gift-wrapped package. Carly hesitated, her hands trembling slightly as she took it.
Rick encouraged her with a nod, and she carefully unwrapped it to find a stunning prom dress inside. Her breath caught in her throat, and tears filled her eyes.
“I don’t know what to say,” Carly whispered, overwhelmed.
Rick smiled. “You’ve already said enough by helping me when no one else would. Now, it’s time for you to enjoy your night.”
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Carly’s heart swelled with gratitude. She quickly changed into the dress and, with a new sense of confidence, walked into her prom, feeling like the princess she had always dreamed of being.
The night felt magical, and Carly smiled, knowing that sometimes, kindness truly does come back when you least expect it.
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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!
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