Are You 20-30 Years Old? Dave Ramsey Has a Message for You

there is something that has risen up um in the um 20s the 20 year olds 20 to 30 year olds even 20 to 35 year olds right now that we're seeing almost on a moment moment-by-moment basis in all of our interactions uh with you guys out there through broadcasting and through all the other ways we interact with you uh the positive is there's this tremendous that this generation whatever we're calling these 20-somethings um has this tremendous entrepreneurial zeal in drive and this this this sense to be independent it's not greed driven it's uh initiative it's very positive it really is it's a wonderful character attribute you've got that that's how you got these rental properties and that drive is causing these 20-somethings to do two things and oftentimes poorly because they're doing them too quickly i did this in my 20s but i'm a boomer which now is a put down but used to be just a demographic but um but uh now i've got old man house shoes you know so there you go but the uh uh the the this wonderful zeal this wonderful entrepreneurial zeal is causing these 20-somethings to buy real estate because i got to buy real estate i'm going to get rich in real estate i'm going to get rich in real estate now when i was in my 20s is when infomercials started oh that was the beginning of infomercial oh yes i'm going to get rich in real estate i'm going to get rich in real estate and i grew up in the real estate business and so i went straight into i'm going to get rich in real estate and i did i became a millionaire by the time i was 26 and uh the other it's driving this bitcoin craze it's driving this game stop crazy yes yes uh the same zeal is driving people to do these things and to get out there and i'm gonna turn over i'm gonna do something i'm gonna get something i'm gonna and it's not greed it's the spirit on it i mean that my discernment says it's not greed it is initiative it's it's a positive ambition but what caused what happened with me was i bought real estate that i couldn't afford i leveraged it i used totally borrowed money and i ended up with 4 million worth of real estate that i owed 3 million on so i had a million dollar net worth but it wasn't cash flowing and i was flipping it and it was barely cash flowing like his is barely cash flowing this is why i know this math because i lived it right because i did the same thing only i did it with more zeros on the end it wasn't 400 000 is 4 million and it took me down because the bank got sold and called our notes and uh then and i didn't have any cash i was not in it i had all these assets but there was no cash and when you do that with real estate is when you're gonna go broke not when you're gonna make a fortune in real estate and so real estate that does not have margin is not a blessing it's a liability and investing in things that don't have margin or that are a high risk gamble play is a misuse of your entrepreneurial ambitious zeal and so i love the zeal what i want to do is channel it with some wisdom and a process some wisdom yes and that is slow down a little bit yeah and pay cash and don't invest everything you have in super high risk crap um i mean and i i know there's stories of people making money in bitcoin i know there's stories of people making money with gamestop we talked to one here on the other day i'm not saying it can't happen but i know stories of people made money at the roulette wheel too that's right i know people that made money on wheel of fortune but that doesn't mean our jeopardy got personal friends that that won and they won 50 000 bucks or something but they didn't change their career to be game show operators right and they didn't put everything they had that didn't push all their chips to the center of the table on one hand of cards and that's what we're doing when we go into highly leveraged real estate into businesses with no margin or high risk investment plays and we act like it's a freaking game right because we put all the chips in the center table now if you've got a small percent of your chips and you're going to lose those and it doesn't kill you that's different i don't even recommend that but i'm not going to make fun of you for that right i am going to call you out on the other because this this you know it leads to uh bad critical thinking that okay real estate's a good investment so all real estate no matter how broke i am is a good investment that's right that's bad thinking skills it is and that's what happened with in the 90s with day trading uh it's what we're seeing now with bitcoin and gamestop uh but i'm gonna tell you something dave i'm getting these callers calling in these millennials on my show the chris hogan show that are saving and investing and following the plan and the trail is the foundations course they took in high school that they were either financial peace babies where their parents went through it taught them or they went through foundations and so they've got this learning foundation literally where they're thinking and following the process yeah it's encouraging i had people you know when i'm doing real estate deals i had people that thought i was a genius when i was buying all that real estate um except the old people and the old people that had money kept looking at me going son you're too leveraged you've got no cash this is going to catch up with you you're going to get a spanking you're going to get it and i kept going oh you're just old you don't understand this is a proper use of capital markets and i used all the cash ketchup you know i've got i've got great internal rates of return i have no cash right no liquidity i couldn't buy a freaking loaf of bread you know but i got four million dollars for the real estate and so this idea that you can throw around all your arrogant little terms and all they show is your immaturity they don't show that i'm a dinosaur they show that you're a child that's all it shows and so the thing is use this ambition this movement which is so positive in this generation in a slower more methodical cash basis way with high margins and then you're going to learn love real estate i got a bunch of real estate and i want you to have some too i just don't want to have you there it is

Channel: The Ramsey Show - Highlights

Views: 753,821

Rating: 4.9022965 out of 5

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball

Id: wHIEljBgdyA

Length: 6min 19sec (379 seconds)

Published: Mon Feb 15 2021