Are You Sick and Tired of Being Sick and Tired?

[Music] this is the ramsay show [Applause] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host christy wright ramsey personality number one best-selling author is my co-host today as we take your questions about your life and your money the ramsay show is a different kind of talk radio this is all about you it's service oriented talk radio we're here to serve you we take care of you we answer your questions sometimes we bonk you on the head for your own good because we love you but uh it's all about you the phone number is triple eight eight two five five two two five christy's new book take back your time the guilt-free guide to life balance will be out in just a couple of weeks it is still on pre-sale which is good news for you folks on pre-sale you can get about a hundred dollars worth of extras added in we bribe you to buy the book early because it helps us with the best seller lists and it helps us with the pre-sale numbers the whole bit so you jump in and it'll help christy out you will love this book if you're interested in the subject of balance and the illusion of balance and so forth christie will break all of that down for you in this wonderful new book so be sure and check it out let's start off this hour with rochelle in fayetteville arkansas hi rochelle welcome to the ramsey show hello thank you for taking my call sure what's up i have quit a job after 30 years and i have a 401k plan in it and i do not know what to do with that money i have to take it out and i'm not in retiring age or anything like that and i need to know what to do with it okay good how much you got in there eighty-five thousand oh this is pretty important then yeah okay okay so there's a a couple of rules that i want everyone to learn about investing number one you do not put money in things you do not understand just because i understand them or christy understands them that doesn't make it okay you've got to under stand it and um so once you do and it's not that difficult uh it's not you're not not like you have to go get a degree in brain surgery or something okay you'll be all right but um keep it simple uh and and so the second rule is is that in order to understand it the type of financial person you need in your life needs to have the heart of a teacher yeah and one of the things that i think is important rochelle is as you have someone walk through this with you they will break it down they will have the heart of a teacher so they'll explain things step by step you can ask lots of questions and they'll show you what to do next i'm not an expert on investing i have an investment professional that i sit down with so when i left my job before i started working here at ramsey solutions 12 years ago i sat down with an investment professional to talk about retirement where it needs to go and that type of thing and that's what they're there for and we have endorsed local providers that help you do that that show you exactly what to do next yeah our smart vester pros you just click on smart vester at ramsey solutions and you'll find someone in your area with the heart of a teacher now here's what they're going to tell you to do and let's walk through it a little bit okay number one what i want you to do it's called an i it's called a rollover you're going to do a direct transfer rollover into an ira there'll be no taxes if you do it the correct way okay now the incorrect way would be tell your hr department to send you the check they have to withhold 20 so they're going to keep about 20 000 of the 85 back for taxes because they think you're withdrawing it and you're not withdrawing it and the government makes them hold 20 back so you're gonna get a check for like 65 000 but you have to put 85 000 into an ira to avoid taxes and penalties so now you're up a creek because you're 20 grand short so you do not want them to cut the check to you does that make sense yes okay so the direct transfer rollover works like this you sit down you contact one of those smart investor pros you sit down with them you select the mutual funds that you want to put the money into and we always suggest four types growth growth and income aggressive growth and international you'll learn about those and you'll hear those again when you sit down with a smartvestor pro they don't work for us but they do stuff the way we teach and one of those things they're gonna do it with a teacher with you at the heart of a teacher now when you sit down with them you're gonna pick out say four mutual funds and you're gonna fill out the paperwork that says direct transfer on it and that is paperwork's to be sent to your hr department they're going to then send the money directly into those mutual funds there is nothing withheld on the money so the whole 85 000 will go over there where you tell it to go and there'll be zero taxes on it now you've got an investment pro in your corner to teach you and talk to you and answer questions at any time you are in control of the money where it's invested you can change it later if you want to everything is uh you know ready to go and it's completely in your control and again it's fairly simple but you just have to fill out the right paperwork and you gotta have somebody help you lay it all out does that all make sense in general yes sir it does okay so where were you working what kind of job did you have tyson's okay all right why are you going after 30 years yeah it did not work out where i was transferred to at another plant because i moved and it just it just not did not work out in that plant for me all right wow that's a long time to be one with one company and now what are you to do now i don't know what i'm looking for i'm not sure okay how old are you 58. okay great well you got lots of time to start fresh we call these uh encore careers you ever go to a um a music show and uh when they finish they leave but then they come back out take a bow and go again that's what you're gonna do you're gonna come back out take a bow and go again okay yeah so if you want some information on career and that kind of thing check out our website ken coleman dot com it's all free and ken is our resident expert on well they've taken the bow going again that's right trying to find something new getting clear on what this next stage and season is for you dave i have a question even as you're talking about this rollover when someone is leaving an old job or has left an old job how urgent from a timeline perspective is it that they rolled this over because i know people that just leave some of these retirement accounts with that old job and we've even had calls here on the show they're like i had this job you know 20 years ago i don't even know where it is and i can't find it how urgent is it that someone do that well there's no regulation preventing you from doing it any time but from your advice so i would just go ahead and you know it's part of the transition that you go through i mean you're filling out all kinds of paperwork when you leave a job right you know and just make that be you got to go get your new insurance you got to go figure out what you're doing next you got all this and so i would just go ahead and make it part of that and because you might forget about it right or not be able to find it after a while like we've had those calls for yeah we've people forget what was going on i don't even remember how much was in there i just left and right 20 years later i'm trying to figure it out now see that's another reason you take it with you right you've got more options in the open market to pick from you've got more control and you've got someone that's got your back an investment pro in your corner when you do a direct transfer rollover so we always tell you always take it from your old job not to your new job but to an individual rollover every time you leave this is the ramsey shop [Music] what makes our show unique is that we genuinely care about our listeners we're intentional about choosing the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at unbelievable prices and they make it simple to shop blinds shades and interior shutters with easy online ordering free shipping and a guaranteed perfect fit go to blinds.com and take advantage of this week's special savings [Music] [Applause] [Music] so the year 2021 is the year of christy wright books every time i look up there's another thing that we have coming out christy wright so we had a devotional a little bit earlier that became a number one bestseller we've got a book coming out in just a couple of weeks in september take back your time the guilt-free guide to life balance a major book project and then uh every year for the last uh six or seven years i guess we have done a goal planner and the 2022 christy wright gold planner goes on sale today yes and this is this is important for people to know because and i'm sure you remember this last year dave you got calls about it like i did but we sold out early it always does and so if you want your copy get it now even though 2022 is a little bit away go ahead and get your copy and then you'll have it before we sell out and uh and one of the things you have talked about this is dave but um about this with the planner but it's not just a calendar it has content tools templates that are going to help you stick with your goals and i think that makes it more valuable full life it's a beast it's a big old thing i mean it's it's there's a lot i mean just the shipping cost those things it's a it's a chunky monkey man there's a lot but i mean yeah you've got scripture in here you've got stuff to do every day things i'm doing this week it is so well laid out so well done and our sales double almost every year yeah um because the people everybody buys it they bought it last year plus all the new people and so the it is a uh it's a very successful product yeah but uh just you know here's the thing okay we don't run out of books when we print books we're not going to run out of books okay we're always going to have a book available for you calendars however have a shelf life yeah uh in other words this is not going to be much good by this time next year and the likelihood of us being able to sell it this time next year is about zero and so from a business perspective our goal is to have exactly the number that you people want and we won't have to throw any in the dumpster and everybody gets one now you know what the likelihood of all that working out zero okay so in lieu of that i'm not throwing them in the dumpster that means i'm not over ordering and i own this freaking place so if you want one they always run out we plan for them to run out we planned for the planner to run out so just to let you guys in on inside baseball here this is how it works all right our goal is to run out at the right time yeah we don't want to go too soon but just soon enough that some of you that put it off you get punished a little bit last year last year though i do think we set a record in terms of we sold out earlier than we ever had we sold out we actually snuck a speed reorder we did and still sold out of that even early people were i mean people would message me even in march can i get a planner like no no it's smart oh it's gone but now's your now's your time we're telling you early get your copy while we've got them and uh it's a great tool now you kept with the same theme with the painting yeah it's really pretty but it's also it's amazing how we talk about this dave but personal development you're looking at all the different spokes in the wheel of life you're looking at all the different aspects of your life so every month we're focusing on a different aspect of your life to help you grow in that area so it's it's goals it's personal development it's it's managing your calendar it's all those things so if you want to make 2022 different by focusing on things that matter most to you uh the new 2022 gold planner on sale right now you need to hurry get your copy they sell it every year we talked about that at length uh so prepare go to ramseysolutions.com they're not up on amazon yet we'll get them up there in a couple days but just order it from ramseysolutions.com from the web from our store and we'll get them out to you and they're in stock right oh yeah okay so we'll go ahead and get it course doesn't do you don't need it right you don't have to have it for 2022. it doesn't have december in it does it no like 21. no okay so done it's no good till january 1. that's right but uh but get it early because it'll be gone yeah that way you don't have to think about it again you know to kick yourself later for forgetting to order it so ramsay solutions.com get them while the gettin's good uh yet another christy wright product out this year um i've been busy dave well we can't you know if you're awake you're writing so that's a fact that's just the way it works we know about you you're going to be writing i'm going to be talking and you're going to be writing this is the way it works open phones here at triple eight eight two five two karen is in tampa florida hi karen how are you hi gabe thank you so much for taking my call sure what's up um so dave um i am a recent widow um i have two uh adulting college-aged children one who is 21 the other one is 23 recently graduated and is starting the process to be financially independent um yes um so in the process of gathering everything together after my husband's death one of the things i did was i did start to um consolidate all our 401ks and investments um i froze all of his credit and credit card accounts um and i followed one of your videos um that said don't do much the very first two months um so i'm kind of at that point where i need to start taking some action so it's been two months and the first um not quite not quite it's been about about six to seven weeks now i'm so sorry what happened i thank you um well he is he was a stage four colon cancer patient he um unfortunately uh was diagnosed um very very late and uh fought a good fight um but unfortunately lost yeah so y'all were married what 25 years um no um that was very sweet of you we had a 23 year old i was guessing you know yeah yeah um we actually were married a little over 32 years okay so um yeah yeah so how are you doing a new um hanging in there some days work has been hot uh work yeah some days about others um work has been great um couldn't have done it without my work family and my church family um but my my my question is um we are um one of our goals that my husband i spoke about was helping our kids um into those adulting behaviors um and as i started to look at everything um i'm very very well set off in our retirement funding um and um i am going to pay off um our mortgage um my husband was um very very good at life insurance so i do have um some funds available to me and the first thing i want to do in the spirit of dave ramsey is to pay off my mortgage um which was also his intent as well so i'm very committed to that okay um but i have noticed um that i have with my children being the age that they're in um we did not do a very good job with thinking about titling of cars and insurance and now that i have this sum of money i really want to protect it it's something that my husband did and i know that he would want it to be something that not only serves me but also serves my family and my faith so so i'm calling to get an idea of how do i do that do i title the cards in my kid's name the kids cars should be in their name and they should pay their own insurance or you give them the money to pay the insurance okay that was that wasn't my question yeah and cause if he wrecks and it's in your name they might come after you gotcha simple as simple as that and so it might cost a little bit more on insurance for it to be in their name but when mine turned 18 i moved them into their name immediately as a as a risk management thing had nothing to do with i don't like a kid it did cost me a little bit more in in insurance so yes we did do that and then and then just again with the investments with the large sums just take your time take your time if it takes you a year to wade into those investments um and get everything set up that's fine you're a very task-oriented person um one of the ways you feel better is if you get stuff done i can hear it the way she's talking right yep exactly and that that's not a bad thing um but uh you know be very careful go very gentle and slow give yourself room give yourself room and you're gonna be fine and you call us anytime we can help [Music] [Applause] [Applause] christy wright ramsey personality is my co-host today open phones a triple eight eight two five five two two five one thing we are sure about personal finance is that it is eighty percent behavior it's only twenty percent head knowledge so anything in your life that affects your behavior positively or negatively is actually more important than the technical financial teaching the technical finance understanding the details of an investment important controlling the person in your mirror absolutely vital and so when you have things happen to you um you need to give yourself a little bit of a somehow we feel like we have to be like financial superman financial superwoman even when we're really going through a hard time yeah like our last caller who just lost her husband yeah you know you don't have to be superwoman well i think it's that i think also sometimes like you said it might even be um it can be a coping strategy where we're like i just want to do stuff i want to control what i can control but to your point there's not a timeline you have to do all this on and so one of the most powerful things you can do and this is with money decisions but any decision is just consider the season that you're in and i don't think we do that enough dave whether it's with your your health your family your work your business even your money when you consider the season that you're in then you can set goals and make plans that are a reflection of what's going on in that season so the season of mourning after losing your husband might not be the time to knock at all your all your checklists on your uh you know going through all the paperwork stuff it might be something you do more gradually over six to nine months than in those first um few months and so i think there's just there's something really powerful of stopping checking in with yourself considering the season that you're in before you put all the pressure on yourself because sometimes we put pressure on ourselves and it's not the right time the right season for that pressure of that goal well and i think the reason we do is we we've lost this we've got this disconnect as if finance sits over here in its own little column of our life this one little silo of our life and everything else is over on the other side and it's like but and so no matter what's going over in our the big swath of our life somehow we're supposed to be okay with the money part yeah or we're supposed to uh you know uh not do uh you know not be susceptible to stress spending or or grief spending or not be of course you are right and people do some of the dumbest things when their personal life is messed up yeah with money yeah or when their personal life is going like really really good yeah and they feel invincible like i got the midas touch everything i touch turns to gold and no you don't yeah yeah no you don't i mean you know you get you get this high because everything seems to be working and then you go do something that's super high risky yeah but in your mind because everything's been going good it's nice it doesn't feel super high risky yeah so of course it's super high risky well and i think the the bottom line too is in any of these extremes whether you're an extreme of of grief or healing or even just you know you've got a lot going on you're busy maybe you're just super tired it's hard to think clearly in those times it's hard to think clearly when you're mourning it's hard to think clearly when you're exhausted and just trying to keep your head above water and so i think that when you can get into a space where you can think clearly then you're going to make better decisions but if you're just reacting you're just flying by the seat of your pants or trying to just control things to control them you're not necessarily going to make the best decisions you need to think clearly and get out of that in order to make better decisions so deloney talked about this and john dr john delaney when we were going through kobe this time last year and people were in freak out mode that when you're when your brain is in freakout mode whether it's anger fear pain grief whatever you're just overwhelmed with emotion it shuts down your critical thinking skills yeah because you go into fight or flight yes and uh he talked about that and and you know we kind of all know that from a common sense but hearing it from a phd yes made it sound smarter but um i'm not sure he is but anyway he sure has a lot of sure has a lot of letters after his name but um it makes sense though but yeah so hint all of us have periods of time in our life short and long that there is extreme emotion do not make big financial decisions during a moment of extreme emotion yeah the logic part of your brain is literally not working a hundred percent of your decisions suck during that time because you are not i mean you know i'll give you an example when people get scared they get super scared they get desperate right after you get desperate is when you fall for get rich quick and you get conned because you're like i'm 58 i just woke up and realized i've got no money i gotta retire and they also they go into orbit right yeah and what they do they go some of the dumb but get rich quick investing stuff and they get ripped off and so they destroy what little opportunity they had to actually catch up yeah which you can do at 58 you're not gonna die you're gonna make it a little baby but you know that when you when i get desperate right after i get desperate i get really stupid well yes desperate decisions are always bad ones we talk about this even through entre leadership with hiring when you're desperate you're going to make a bad hire because you're just desperate you're not thinking clearly it's it's true with anything though we ken coleman and i have talked about this when we've hosted the show on fridays together we have people calling in and they took a job that was the wrong job because they were desperate and i was like man that was a bad decision what do you do then so desperate that's that's such a good point desperate decisions are are always bad decisions i had a friend that married a woman that he shouldn't america because he was desperate that's that's that's next level that's next level that costs you a lot of money though i'm just saying and headaches and stress and it goes bad and the same thing could be true some lady that hired or married a bad dude i mean she goes both ways it's expensive mistake yeah serious so all kidding aside with all the stuff happening with covid with grief around any kind of a situation you get fired well what happens you go through the stages of grief yeah you get mad you're in denial you blame other people it's probably your fault but you don't come to that immediately might not be your fault i don't know i got fired one time and the guy i never knew why i got you still don't know why no and he died so i'll never find out and he cussed me out when he fired me so i really i mean you know i should be nice about it but he's dead and so but yeah so i one of the things i've vowed around here over all these years is if we're gonna let someone leave they're gonna at least know why and they're gonna if if at all possible had a lot of warnings yes yeah a lot of heads up about it but if you get fired you get caught off guard that lady in our earlier segment been with tyson 30 years yeah didn't work out yeah oh you heard oh yeah you can hear the pain yes there's a story there at the new plant there's a story there yeah and if all that stuff is in your stomach and coming up into the back of your throat not a good time to buy a house yeah yeah yeah not a good time to you know suddenly say i'm going to open a business and go 400 000 in debt yeah to medicate the fact that i'm really hurting pissed off and wondering about my own worth in the world yeah personal finance so the more stable steady consistent predictable the person yeah the higher probability they build wealth you know i'm curious your thoughts on this when you said that you made this reference to starting a business uh king coleman and i when we were hosting the show a couple weeks ago we got the blinds.com question it was this woman who had had a salon for 22 years closed it due to kovid and then was not sure what to do now and in her you know when they submit these questions we don't can ask follow-up but open reopening slum wasn't an option and it led me to wonder i wonder how many businesses closed in covid because of you know whatever the expenses and all that but then didn't reopen not because the business wasn't viable again but because they were so hurt they're broken they felt so like they failed like they were because i'm investments and i had this cool sign and i had to take it off the wall it did something it was it was not just closing a business i turned the key that's right in that door the last time and walked away from that building it was like the death of a dream and uh it was a very real thing did i need to be making major life decisions of any kind money included during that time no right so you know you just gotta at any point of high emotion positive or negative take a chill pill wait a beat or three before you make major financial decisions this is the ramsey show [Music] [Music] [Music] christie wright ramsey personality is my co-host today open phones at triple eight eight two five five two two five john is with us in tampa florida hey john how are you i'm doing well dave thanks for taking my call sure what's up so through a few live events um i was able to pay my house off sooner than what i expected which left me with a i guess a surplus in my emergency fund with that being said should i adjust my emergency fund and invest oh would i say adjust it should i adjust it down because now obviously i don't need as much because i don't have any bills everything's paid for and invest the remainder of that well yeah you're it should be three to six months of expenses and what you're saying is you're with a house paid off you got hardly any expenses right i have i literally have zero expenses no i mean you have food and lights and water and insurance and electrical and all that yeah yeah just the basics um and then on the flip side i also i drive a 20 year old car and so i've also considered maybe purchasing a new car one day obviously not in this market but in the near future yeah get you get you a better car which also by the way will lower your need for an emergency fund yes because the transmission going out in that hooptie is more likely than in a decent car right correct yes john have you run the numbers yet of what um you know your old emergency fund was based on what the new one is based on with these new you know lower expenses so you know about what the surplus is um just no haven't sat down in random numbers but i figured currently i have about 55 000 an emergency fund my wife and i do 130. so we were figuring probably 25 000 would be yeah substantial okay yeah it'd be fine and then you outta your mark some of the rest of that for the car and then invest the rest of it or maybe have a have some fun with the rest of it whatever you've done great you're baby step seven man you're rocking it yeah are you a baby step millionaire yet uh yes i am way to go way to go that's all congratulations well done how old are you i am 51 my wife my wife is 52 i'm 51. good for you congratulations that's amazing yeah thank you so here's the thing the uh as we have built wealth sharon and i have noticed we have less emergencies because we own nicer things you know it's like the cars i used to drive were an emergency looking for a freaking place to happen okay you they were an emergency they were and i was driving my emergency you know and then once you get decent vehicles and you've got a little margin you literally have fewer emergencies and so i don't even i mean the the chances of us actually not cash flowing 90 something percent of our emergencies just out of checking is pretty low uh these days and so uh you know it because again it when you're broke every your life looks like a country song everything is an emergency you know and so it does change over time and the it's kind of like oxymoronic you know they always say well you know the banker will loan you money only when you don't need it you know and it's like well you have only you you know by the time you don't need an emergency fund right you know yeah it's like it does it seems like that you should not need the emergency fund in the early days it'd be helpful right you know but no you got to have it when you're starting baby steps one through but when you're at seven and you're hitting millionaire status you're making 130. yeah yeah 25 is going to be plenty because you got other money and john get that car i hear your voice you're a saver i love that about you that's what's gotten you to this point enjoy some of that money it is sitting there and your car's old yeah he doesn't want to buy it because they're crazy right now it's all i know but i know but that emergency that's waiting to happen it's going to come out of that or it's going to come out of your emergency fund whichever way you want to look at it make sure you get it for christmas anyway by the way by the time i like that go ahead and start planning your christmas gift google amber's in minneapolis hey amber what's up hi dave hi christy hope your day is going well sure now can we help i am currently on baby step number two and at the beginning of the year i started a youtube channel which has now opened an opportunity to make some additional income to go towards my baby steps my question is on my youtube channel i try on and review clothing which requires me to purchase quite a few pieces from each brand i generally return most of the samples like once i'm done filming um but i'm currently funding this on a credit card that i only used for that and i only pay the minimum balance like the minimum due each month until i get the refund at any given time there could be up to 4 000 on this card in rotation is this an okay way to fund this and like chalk it up as a business expense or should i be approaching it in a different way um yes yes you should be approaching in a different way having a credit card for business or personal is a bad plan because of the risk involved because it's a bad plan to cash flow your business but credit card aside for a second i'll let dave explain that even more but you should not be paying for these clothes these ideally these brands should be giving you free clothes to review for the exposure that you keep for the exposure you should not be paying to give them business this doesn't make sense so your whole business model needs to be fixed from the inside out aside from how you're you're funding any expenses that you have which should not be on a credit card but i want you to go to these brands and get them to give you free clothes giving them exposure how much are you making on youtube so the actual youtube portion of it like i just hit the monetization and it's like very small 18 yeah like after a month of doing videos this other platform reached out to me and they pay me thirty dollars for each 30 second to two minute clip that talks about each project what's your viewership my viewership i am just over a thousand so still pretty new but i've made in like the past oh six or seven months with this other platform i've made over twelve thousand dollars okay so the risk that you're taking from a business perspective screwing around with four thousand dollars in order to make eighteen dollars or thirty dollars or up to twelve thousand over many many months uh is inordinate uh i'm not sure you got enough eyeballs yet on the thing to get them to give you the free clothes the way christie's trying to talk about but basically what you're doing is you're putting yourself in a position of being an influencer and uh the way influencers get paid is they monetize the eyeballs they come to watch them do whatever it is they do and so um that's what you know and obviously youtube will pay you and other platforms will pay you as well if you can get the eyeballs but a thousand is not not a bunch you're getting there though that's i'm glad you're working this uh so uh what's your household income overall so my normal nine to five i make about 86 000. okay i i want you to set aside two grand for this business maybe even out of the business income or three grand and just prime the pump one time by that i mean open a separate checking account that is just for this clothing exchange process because if you get stuck if one of these companies let's say you bought a thousand bucks from somebody and they just said oh we're not taking that back you wore it um and so your little return refund program doesn't work anymore you now ate that and guess what if it's on your credit card you now have credit card debt and so this is the risk that happens because there's one thing we're sure of in business there's three things we're sure of in business um it's going to cost twice as much as you think it's going to it's going to take twice as long as you think it's going to and you're not the exception those are the three rules of business and it happens to me around here all the time i have some great idea i think this is going to work and we put it out there and six years later into the gold planner christy's goal planner which we launched today is a mega successful product the first year i'm sure it's a great idea you know well a lot of dadgum work for not much money you know and so now it has turned out to be a thing but it took twice as long as we thought and we're not the exception especially initially and uh no matter how enthused or enthusiastic or um angry i am or christy is it doesn't matter you know we still got to she's still got some things have to cook up they're like good gumbo yeah you know and so you you and in the meantime you're carrying credit card debt and i'm not going to ever advise that you called the dave i mean you called the ramsey show you called dave ramsey christie wright asked about a credit card you knew you you knew that wasn't gonna work i mean that was that that is predictable we're consistent this is the ramsey show [Music] hey it's kelly associate producer for the ramsay show this episode is over but if you heard about an event product or service and didn't have a chance to write it down don't worry we list everything you've heard about during this episode in the podcast show notes section or head to thermzyshow.com thanks for listening [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice christy wright ramsey personality is my co-host today number one best-selling author and host of business boutique a huge conference that we have coming up here in the fall october 14th through the 16th as a matter of fact dr john deloney jasmine starr nona jones uh bianca oltof monique shohan ah maneet's coming a celebrity on the uh chef on the food channel food network and uh also a local uh entrepreneur owns a bunch of restaurants in our area and just world-class lady overall that's cool yeah and that's a big addition and uh i'll be there speaking and it's going to be all about business boutique all about uh equipping women to make money doing what they love and this conference has sold out every single year it is october the 14th through the 16th there are some tickets available for here in nashville and nashville is a great place to visit it is it's a great uh it's a great city to to make a road trip out of it if you've got some friends you all have side businesses or small businesses you're working on gather some friends or even connect online on the business boutique facebook group and sync up and share hotels and all that good stuff and uh it's a jam-packed three days but it's also one of those that you come home so fired up and so filled up and you know exactly what to do you don't have to feel stuck you know what steps to take to grow your business where to get it to where you want to be yeah from where you are that's where you need to be that's right and that could be from the dream stage or all the way from you've got a pretty sophisticated operation and you're just wanting to put some more tools in your belt and so um typically it's two thousand to three thousand ladies in this audience yep and um uh it is um again we've just found that our hometown of nashville is very popular very popular visit uh place to come and hang out and uh but of course you know you need to book time around this to do all that because you're gonna be in here busy yeah we're gonna we're gonna we're gonna be you know you're gonna go up to a water fountain to get a drink we're gonna turn off it's been cool too dave because i've noticed even recently in conversations as we've been talking about business boutique uh this event every year we started in 2015 every year this is the catalyst for so many women that changes the trajectory of their business truly i was just talking to someone the other day that has a massive worldwide business okay in 20 countries they're absolutely rocking it multi-million dollar business started 2016 business boutique wow and you hear these stories and you go oh my gosh that's the moment in time where something changed and they went home and did what they needed to do and this becomes the catalyst so it's a great opportunity for people to get not only the information and steps which we give you but get fired up to believe in yourself and go home and do it yeah once you've been stretched you never return to the same shape yeah and this is a brain stretching conference your brain will never return to the same shape yeah so business boutique uh christy me dr john dolony host of other characters that are absolutely incredible communicators business teachers will be with you and october 14 through the 16th you get your tickets before they're gone again this thing is a sellout every year you text boutique to 33 789 check it out at ramseysolutions.com but text boutique to 33789 the business boutique conference coming up this fall caleb is with us caleb is in los angeles hi caleb welcome to the ramsay shop hey christy and dave how you all doing great great what's going on well um uh my question is about where i should put my cash now so i've heard about your plan for years and i finally just did it my wife and three kids we moved into my parents barn on some acreage so we could finally you know pay off the debt um we did we were in a loft you know every dime that came in went to the debt just gazelle intense and then we had the whole ladder you know with the marker and then you mark it off painted off and the very next morning we found out we were pregnant with twins congratulations oh i'm so glad you're ready it's no for real though like you're right i mean if i wouldn't have done that plan you know the stress of student loans you know i went to film school you know it's gone now so here's here's my issue um i own my own business um i'm in film production uh so you know irregular income do you i know the next baby step is pile you know three to six months living expenses etc but i have heard other people in the film industry call you before and i remember you said something something about you know get a much bigger buffer what what do you suggest for me right now my twins are due end of november and we already have three kids under five so i'm looking for some advice well while you are you're in baby step three anyway which 100 of your spare dollars are going to build your emergency fund right uh and so you know three to six months of expenses now you can go and build up you know six months of expenses and you can just keep building it past that until the twins come if you want and then you'll just have some extra money beyond that aside from the twins aside from the small kids just the irregular volatile income with a small business um or in an industry like the film industry where it's um feast and famine i mean you're either making bucks or you got nothing and so that we were in the real estate business when we came up with this idea because we had the same thing we could have no money one month and 20 000 bucks the next month and so um right and so what we did uh it's a dumb name but i couldn't think of anything else you think of a mountain and a valley and the mountain is that big month that wonderful month the valley is that horrible month the value of death right where you have no money and so we called it a hill and valley account so if we were in a valley month we didn't have to hit the emergency fund we had a separate savings account to fill in for a horrible month of income in a volatile income situation and because that's not an emergency that's actually a predictable event right yeah and do you have a percentage dave that you recommend for that no i think what you look at is the volatility and the volatility creates two things one is actual arithmetic and it also creates all this emotion yeah you don't use the emotion to set the amount because when you dig down into it usually you know you you feel like you have a ten thousand dollar problem and you might have a two thousand dollar problem yeah and you go look like my worst month here's my worst possible month and here's what we need to exist well you gotta cover the difference right for two months right and you know it might be a thousand bucks off you know yeah it might be two thousand dollars in your hill and valley account i wish i had a sophisticated i'm horrible naming stuff but that's all we called it because that's the only thing we could think to call it because we wanted to separate it from the emergency fund because the emergency fund is for unexpected events this is expected we know this is going to come and so i think you build up your emergency fund first and then you build your little hill and valley account just going forward regardless of twins and babies do you have a question about that dave um for businesses that are super seasonal like that do you recommend they have a business version of the hill and valley or would you just use their retained earnings for retained earnings should you do that that's the purpose of retained earnings it's just to cover some seasonality and you can adjust your retained earnings based on you know your seasonality like for years around here i we our summers were slow because live events are slow publishing's down in the summer radio listenership is down in the summer typically and so our summer's slowed down now we've got a whole bunch of other product lines now that don't slow down so we don't notice it as much but we used to put some money aside to get ready for summer yeah you know financial peace university sales were down and you know july is way different than all october right you know that kind of thing so we just had to kind of get ready for that [Music] stop paying your overpriced wireless provider and switch to puretalk they use the same network as the larger providers for much less for just 30 dollars a month get unlimited talk text and six gigs of data with no contract the average family saves over seventy dollars a month by switching to pure top just go to puretalk.com and enter the promo code ramsey to save 50 off your first month pure talk simply smarter wireless [Music] [Music] [Music] chrissy wright ramsey personality is my co-host today she and i will be doing an event thursday september the 16th the take back your time event uh appropriately named with the launch of the book take back your time the guilt-free guide to life balance which comes out the week before and uh it's on pre-sale right now and if you want to attend this live stream for take back your time all about balance all about getting control of your life passes start at only 20 with your event pass you get over sixty dollars in free bonus gifts including a copy of take back your time you can join us in nashville for the event and a special book signing with christy or via the live stream either one just got to tell us in advance which one you're doing because we will sell out here in nashville of course you can feel balanced even in your busy life and we want to teach you how the take back your time live event and live stream thursday september the 16th text time to 33 789 time to three three seven eight nine so when someone finishes watching that what is it you want them to feel relieved activated and relieved but here's the thing we feel so much pressure and guilt around our time that's why i love the tagline of the book the guilt-free guide to life balance this is not a productivity book it's not an event to show you how to do more faster multitask squeeze more in be more efficient i want you to feel free to do what's right for you right now i want you to feel free to spend your one life on what matters to you we're going to show you how to do that in very tactical practical ways by the way our question of the day comes from blinds.com find out for yourself why blinds.com is the number one online retailer of custom window coverings free samples free shipping new promos all the time it's a great american company use the promo code ramsey to get the best deal today's question comes from diane in ohio i'm 61 and my husband is 58 we are doing well financially and have no debt i'm currently a health coach for a health management company i'm tired of playing the corporate game and tired of being micromanaged i would really like to have my own practice coaching clients on healthy lifestyles teaching cooking classes and controlling my own schedule i have no idea how to do this without leaving my current job and making no money at all for a while what would my first steps be to start my own coaching business well i'm going to start with the assumption that there's not a conflict of interest non-compete that type of thing because she wants to do what she's currently doing for this company there's a little bit of of gray area there to me in terms of what she's able to do but i would say for diane uh i want you to do this the same way i would teach anyone to start a new thing that if you have a full-time thing but you want to start something on the side you start it on the side and you start by putting it putting uh the information out there maybe it's a facebook post you email family and friends hey i'm going to start doing this you think about your pricing do a little research a little digging of what would your packages look like what would your services include how are you going to structure uh your services and your pricing and so on and and you start to baby step into it and the reason we want to do that is because as you take those first baby steps you're going to learn about what questions you need to ask what answers and policies and procedures you need to come up with you're going to learn what your customs so so [Applause] new deal fleshed out yeah get some proof text we call it actually functioning in the marketplace and then you'll have a lot more confidence about your move and you don't have enough so many false starts that you give up yeah because you don't have to give up yeah and so uh the good news is you'll develop a tolerance for the old place uh once you once you have a plan to leave yes that's a good point it'll increase your frustration with the old place because you're going yeah just a matter of time i'm out of here so i can put up with you right now yeah brian is with us brian is in panama city hey brian how are you i'm doing good thank you guys so much for taking my call sure what's up um okay so i was i recently um got married this past march congratulations and thank you and um we were together we we've been together for the past three years developing you know just [Applause] portal to hell you want to talk about disgruntled just get dave talking about technology talking about how much money i spend on technology and then i can't even talk on the phone yeah so um yeah that just get me started but yeah so that's just life and um so anyway the i think it's good to go back to um our our lady we were talking about diane blind yeah the um it's always if there's any way you can when you're starting something start it on the side and we always the analogy i've always used the metaphor i've always used is to bring the boat as close to the dock as you can before as you step into it that way you can step into it not leap towards it right and hope you make it when people always ask the question that way they say how do i make the leap full time i i work with women every day building side businesses and that's the way they ask this question how do i make the leap to full time and and dave you and i say this all the time we don't want you to make leaps we want you to take steps when you do that you will not fall as far it will not hurt as much we want steps not leaps so word is it brian's on the phone again hey brian what's up are you there hey okay so you got married in march and what's going on okay so um my okay so my wife uh her parents they're they're they're very very nice people they've done a lot for her growing up um they're they're financially well-off and you know since we became married i feel like it's our responsibility to um you know kind of take uh i guess a handle on some of the things like her retirement um health insurance life insurance those kinds of things yeah um yeah right so her dad still has all that in his possession yeah her dad still has it in her his possession and they're kind of every time we discuss like finances and money and things like that they get all weird and yeah well let me get weird for you okay your your wife needs to tell her dad to put the stuff into her name now how old are y'all brian right i i agree i'm you don't you can't say it okay all right so that's where yeah i guess where i'm coming in here um because you know i i would want to approach anything whether you know i want it to be my place and i think when it has to do with my wife you know we we um since we've been come married we uh combined our life got on the same page where we just became debt free yeah but it's not your daddy it's her daddy and it's not your policies it's her policies right now it's her retirement yeah and she needs to move it needs to be moved into her name now and she needs to call her dad and go dad i understand a few months after march but now it's august so i'm going to come over to the house and you're going to sign all the crap into my name now and you can be a little nicer than that but that's the message these nice people they definitely will have a lot of money and meanwhile are control freaks dude and so you know your wife is nice it's called leaving and cleaving but you can't do it they're not gonna listen to you [Music] [Music] [Laughter] [Music] chrissy wright ramsey personality my co-host today the 2022 gold planner on sale this week at ramseysolutions.com [Music] very very popular gold planning life planning item by christy this is the sixth or seventh year we've done these things and they always sell out and uh so be sure and check out online at ramseysolutions.com christy i'm gonna play papa day for a minute i want to go back to our last caller okay got a commercial bearing down on us yep all right i'm 61 i have three grown married children all have kids not 61 yet i'll be 61 in a couple weeks but close enough um when your children get married you do not have the moral ethical right to hold on to their stuff period when they reach adulthood you do not have the moral ethical right to hold on to their stuff and so example in our house would be uh denise comes home from college and she sets up her own household within three months moves into an apartment with some roommates eventually starts dating a guy gets married um but when they're engaged uh i look down and realize there's a file here with mutual funds with her name on it there's the health insurance is still running through us which is stupid this is like a grown woman right and she needs to pay her own light bill she needs to check the date on her milk carton by herself uh and her mama don't need to do it yeah and her dad doesn't need to hold her hand because he looks at her husband as a little boy yeah sorry folk you don't have that option and when you do continue your helicopter parenting into their twenties you damage the relationship with them potentially for the rest of your lives and you stunt their emotional growth because they're still freaking little baby children because you didn't give them any grown-up stuff to do yeah god that pisses me off set them free the bible says to leave and cleave so you leave your mama and take your stuff with you you know what i heard in that call too though i wish so bad she had called because i heard in his voice he didn't want to talk to him he wasn't supposed to anyway but even if he was he was he was bowed up he was ready to talk to him yeah but it was like this nervousness like you could hear so like well i don't know he started out with they were nice people and i started laughing because i knew he was lying we both well we both did because we're like but we're waiting for the bus where's the butt because he's a great canceler in a sentence everything that comes before the word but means that those people are butts so then but i wish we could have talked to her because i got the sense that she was not the type that wanted to talk to them she's been used to daddy taking care of her no and here's the thing so then speak up girl speak to that person speak to the the timid the child the adult child that's scared to talk to their parents give them some some help here is your job as a 20 what was she saying he was 24 so yeah i think so yeah she's 23 25 probably give or take i mean be a grown-up come on put your big girl pants on and uh because the sooner you do that the the the most one of the most rich times of our lives in our personal family is the current time where i have adult to adult relationships with my children including my sons-in-law my daughter-in-law and i thoroughly enjoy them as adults but i that means that i have to i you know rachel and i have uh i don't cross boundaries with her just like i don't with you and you're you know you're we're not ken right we've been friends a long time we've been on our team a long time we've got a good relationship but i i there's things i can't tell you to do it's not my right and vice versa by the way you know and so you know and the same thing's true with rachel true uh and so you know i i wouldn't we could talk about stuff we can argue about things we can discuss politics we can talk about life or religion or doctrine or whatever else but that's just on a friend of friend level so to speak yeah and it's the most rich time it's some of our ramsay dinners because we're all loud and gregarious and fun people are hilarious now but it's like a group it's like a friend group having dinner right not you know dad is holding court and you're all are going to now listen to me right they quit doing that a while back i'll just tell you what do you think what do you think is going on in the dad in that scenario that wants to hold on to it does he still see him as a kid he likes the power control i'm talking because because he's he's he's being a twerp he's trying to hold on to the past and you know you walked her down the aisle you placed her hand in his hand dude you just gave her away that's what they call that all right what if she's not married well she's 25 though well the same thing except there's not a hand there's nothing right leaving in cleveland clarified yeah marital relationship but they're still adults and so what you're doing is you're tr you're treating your 25 year old like she's 13 and guess what she's gonna function like she's 13 and then the rest of us in society have to put up with this entitled little twit don't you think yeah you have people that are uh five years younger than you that you run into that are not functioning at that age yeah emotionally well and it's a very it's an unhealthy dynamic on both sides because you have the uh let's use the daughter in the scenario it could be a son either way but the adult child that will not stand up to mom or dad or speak up to mom or dad or say i'm a grown-up these are my xyz funds policies whatever and then you have the dad or the mom whoever that is dominant controlling they like having the power they like being the big you know big deal in the family and so they it's it becomes this dynamic that's unhealthy and on both sides they both have a responsibility in it is what i'm saying it is emotionally hard admittedly to when your kids reach the point that you're no longer allowed to tell them what to do yeah i used to could just tell you to do stuff and you freaking had to do it you know and now i can't do that now i have to convince you or persuade you like i would one of my buddies i've got to talk you into this is good for you here's why i think this and depending on how strong i feel about it you know but i may not even bring it up at all but this is just reasonable relationship boundaries and and so but but it some parents can they have a real problem with this boundary of uh and saying out loud okay this is like a grown butt human here i can no longer tell them what to do yeah or i shouldn't be telling them what to do it shouldn't be effective someone should stop you from doing it whether it's the person you're doing it to your yourself your pastor ought to look at you and go hello you know something somebody had to give you a little wake-up call you know ring the bell for you and go uh you have now moved into a new phase you no longer can boss them around and uh because the interfering mother-in-law when the kid's 32 and she still rolls her eyes with the way the chicken pot pies made oh my god that's a classic stereotype yeah and it's like you don't get to roll your eyes anymore yeah you like have to be polite and stuff right you know oh my god you wouldn't do that at your friend's house right or if you would you wouldn't have any friends yeah and yet you still think you can get away with it with those that you love the most and the closest to you yeah and so and it does go into the financial because the more when you don't put the weight of the decision-making on the grown child they do not develop the strength to make the decisions you have to let them feel the weight of that rent on their back and i imagine the weight of the grocery shopping and you go oh my god look what bread just did yeah i imagine it has an effect on the marriage too for those that are married then it's it's it's stripping them of some of the dignity of figuring it out as a couple of communicating as a couple because mom and dad are still controlling everything still having a say still carrying the weight it's like no like like as a as you have a fight you run to your mom yeah oh my god yeah yeah i told rachel denise in particular said when you have a fight and if you want to call over here and talk to us about it you better bring them because otherwise i'm gonna point you right back at him and go hey i already told him you're now his problem you did say that i did exactly say that you know i said that too this is the ramsey show [Music] [Music] foreign [Music] christy wright ramsey personality is my co-host today tyler is in colorado springs hi tyler welcome to the ramsay show hey how's it going today dave better than i deserve what's up uh i'm kind of in a funny transitional state in my life i'm getting ready to transition out of the military and i'm looking at living options once i get out i'm gonna go to college on the gi bill and i've been really struggling with whether or not i should rent or try to buy a home but in doing some research it doesn't seem like there's any way that i can get pre-approved for a home loan and i understand that you hate va loans can you can you clarify as to kind of why you you hate va loans so much and also what your best advice is to me hate might be a strong term but um but number one the va loans are more expensive with fees and interest rate than any of the big three fha va or conventional number two va loans the reason most people gravitate towards a va loan is you can get a as you know you can get a house with nothing down yeah and that's that which means you're too dead broke to buy a house okay when you buy a house with no money a house is not a blessing okay and so because here because you know the air conditioner is going to go out next week okay so i want you to have a house i just don't want to have you so that that's the reason i don't i don't it causes people to buy a home and when they're in a position of weakness rather than strength so what i would tell you to do is uh rent the least expensive thing that you can and let's work on your career and work on your goals and build up some money okay so then in that case that leaves me with one of two options i can either live with my parents for 350 a month which yes that's awesome but how long have you been in the military i've been in the military for nearly five years when i get out and that one down home that'd be really painful yeah and and my parents i love them to death great people but it's it's it's difficult to live with them and so my next option would be um would be renting a apartment for about 850 bucks a month yeah i try to get you a roommate situation where you can get that cut down but you don't need to be back at home it's just okay it's emotionally going to be destructive for everyone involved okay and with that though i guess i have some extra money in the bank that i could use to float myself on the months that i don't get paid by the va for the months that i don't go to school or summer break or whatever um but can you not work i can work it's going to be very part time i do plan on getting a part-time job i actually have a job lined up already as soon as i get out so what are you going to study and how long is it going to take you i'm going for a construction management degree and it's going to take me four years i'll get my bachelor's and i should graduate by like 2026 somewhere in there all right well i graduated in four years with a business degree from the university of tennessee and i worked 40 to 60 hours a week every week okay so very very part time is not necessary you don't have to work that much because you're not starving to death you've got the stipend and everything but you also have to sit on your butt and all that extra money can go towards saving up for when you want to buy a house when you're ready to dollar so the more you work the more money you have the quicker you get to that goal and and if i were you i would take it a step further and i would get a job in construction anything you can do around where you want to be meeting those people that are doing what you want to do what you're in school for that's just going to fast track your whole plan yeah get it get get your foot in the door and start learning some hands-on while you're learning in the classroom and that's going to be you're going to come out you know with three major advantages towards your success your military career your hands on the job training and your academic background you put those three things together man you got some really good taste in soup there i i think you got a bright future when you do all that and the construction guys will appreciate you actually knowing what the flip's going on from something other than a textbook all right cheyenne is with us in bowling green hi cheyenne how are you i'm doing great how are you better than i deserve what's up uh yes um just wanted to say i love you both and um me and my husband have actually been with the ramsey plus since october of 2020 well my husband has currently been working at his shop for six years he currently works for a penny factory here in town and they are part of the union and his union contract will be up may of 2022 now we have about 71 out well we had 71 000 in debt and we currently have about 27 000 left and we have about eight months from now he could potentially go on a strike if the contract does not what you said uh yeah oh oh okay i thought it was is it is it is cheyenne don't you let them make you confused about your months okay no you're right okay okay you got eight months all right so you could be debt-free and still have a pile of money by then i i well that's what i was asking um i was a little nervous because my husband's slow season is actually coming up this fall typically every single year he's been working there the slow season starts in september and in between september and potentially february it's very slow and the amount of hours and the amount of money that we're used to him getting most of the year is possibly going to dwindle down and i'm a little bit scared to either go ahead and pay off the rest of the debts that we have or just pile up cash for a potential strike because i don't think that he would possibly get paid for the union strike it used to be about two hundred dollars a week that he would just pay what's your current household income um eighty thousand okay yeah you can be debt-free and have the money by the time you need to you only have twice you only have 27 000 left yes yeah and current currently slow season means these hours go down to how many um instead of him getting um about 70 hours a week it'll probably bump down to 40 50 hours a week maybe wow so he works 70 hours a week a lot of the year yes and uh most of that is volunteer um they've had a lot of people quit uh you obviously know what the pandemic a lot of people don't want to keep their jobs that is definitely his case when the whole pandemic started they were actually the busiest they've ever been in their entire life and so a lot of people have been quitting lately and so that is keeping his overtime available that's cool so they've been slowly hiring people and i'm just nervous because i'm i'm the person in the family how many times has his union gone on strike since he worked there um since he worked there it has not gone on strike which is how long uh he's been working there for six years and the last time the longest they went i think was a month or a month and a half yeah you're worrying about something you don't need to worry about okay okay you have a month and a half you have a month and a half problem and you're to be debt-free you're nervous about what-ifs and we don't plan based on what-if scenarios cheyenne you've got a plan to get debt-free you're going to get debt free you're going to have some cash if this even happens which it likely will not yeah i want you to pile up a big old pile of cash and be debt-free and then you will actually be the most ready for a strike you've ever been since he's worked there and still probably and you're going to do all of that by may but um the likelihood of them going on strikes probably pretty low um they're just rattling their sabers and you know carrying on because to posture for the negotiations and so forth because what's happening is most factory situations are behind and the last thing they want to do is get further behind uh supply chain has been so screwed up by covid and the whole you know production means of production manufacturing everything's been so screwed up the last thing that unless the union is being completely outlandish the employer is going to sign up so they're not they're in a position of weakness it's a bad year for their contract to come up for that employer um because they need to produce produce so i just i i think you're gonna be okay and i don't think you need to uh worry quite at the level you're worrying being intentional and thoughtful about it yes i would do that and i think it's wise to you know look at the tea leaves see what's coming but i think you're overstating it yeah yeah you're going to pile up that cash shine and that's going to give you a peace of mind that you don't have right now when you have that you can see that you'll you'll even know even more that you're going to be okay christy wright good show thanks for having me it's fun ramsay personality my co-host today james childs is our producer laura johnson filling in for kelly daniel who we can't seem to get to work these days she's going to kill you for that one [Music] she's on strike this is the ramsay show [Music] have a friend or family member that needs a daily dose of ramsey advice in their life let them know about the ramsey call of the day podcast it's a quick hit of advice about life and money in under 10 minutes check out the ramsey call of the day podcast wherever you listen to podcasts [Music] this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story [Music] live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage is a big indicator you might be a baby steps millionaire this is an everyday baby steps millionaire theme hour we're talking to real millionaires this hour only if you have a million dollar net worth or greater i want to talk to you i want to learn how you did that did you win the lottery did you inherit the money um or did you work save and invest and live on less than you make how did you do it because other people want to do what you did if they can do what you have done a lot of the reason people don't strive to be financially successful is they believe that the system is rigged against them and if you believe that it's rigged against you then you never work towards winning if you thought the game was rigged why would you play the game i you know i don't want to get you don't get in a card game where you know the outcome is already there because there's a shark at the table right you don't want to do that and that that's logical but what's not logical is the that you've believed lies from people who have political agendas and or are just living in a victim mentality state and don't believe that they can win and our goal around here is to give you hope and people that steal your hope or ideas that steal your hope falsely um then you know i it's my job our job at ramsay to go to battle with those things and so when people say here's here's what people say stupid butt stuff absolutely false statistically proven to be false almost all of america's millionaires inherited their wealth absolutely a lie we did the largest study of millionaires ever done in north america airtight research technique no question i defy you to find anything we did that was statistically incorrect or against basic research doctrine there's processes you use to do airtight stuff so you don't fall into your own self and and prove what you think is going to prove so here's what we found we did we studied 10 167 millionaires in-depth surveys with them everything we could learn about them so that we could show you whether you can do this or not 79 of them inherited zero that's eight out of ten another five percent inherited money but it was less than a hundred thousand dollars mathematically impossible for them to become millionaires because they inherited money i got five thousand dollars when my granny died from the sale of her farm that did not make me wealthy okay so another five percent so that puts us at 84 percent another 5 inherited substantial money from a family member after they were already millionaires so they already got a million five net worth granny dies leaves them 250 000 but they did not become millionaires because of inherited money period and so this great socialistic lie by the entitled socialist community is is it's it's stealing people's hope so we started doing this show why ever so often we do a millionaire theme hour we're going to take calls from those of you that are millionaires oh by the way that was another five percent so five and five and 79 is 89. nine out of ten millionaires in america today did not become millionaires because of inherited money so the great question is what did they do that's what we want to answer this hour and then you can decide if you can do that too my contention is you can do it and i can show you how so an everyday baby steps millionaire theme hour regular people just like you just like me becoming millionaires we want to talk to them if you have a net worth of a million dollars or greater you call me i want to hear how you did it tim is our first one he's in des moines iowa tim what is your net worth uh net worth is about 2.4 million excellent give me a little breakdown on that between what types of and where is that money located and what categories oh let's see real estate um cash and small mutual funds and real estate real estate is how much uh we're pushing 1.6 okay a lot of real estate good okay how much in mutual funds um i'd say about um most of the rest of that there's a little bit of cash in there too okay so that so like is that retirement accounts then yes so about 800k in retirement accounts yes gotcha okay how old are you uh we're 43. how much of this did you inherit uh well i like to consider the fact that we invested it from the bst program it's a i call it the sweat and tears program so none uh what was your best year working lifetime income household income in your worst your lifetime uh i'd say best year was 2 40. um worst year was 16 000. okay what do you do for a living i'm a building consultant uh insurance consultant claims consultant okay what's your degree in i do not have a degree no no don't have a four-year degree okay what was your gpa in high school uh high school uh enough to get a diploma okay you graduated like i did thank you lordy yes exactly all right so uh you're a real estate guy how much of this wealth do you feel like you have uh because you borrowed money to become wealthy um i'd say zero okay so how did you do the real estate if you weren't borrowing money to do it uh because we cash flowed um and we just flipped houses we took your profits and rolled them back in yes sir and so the you never really had a whole bunch of mortgage debt you didn't do like the uh uh nothing down real estate club no no no absolutely not just trying to make sure people here what really is going on and so you're 43 years old what's your advice to the 23 year old version of you that's out there listening can he still do it and what should he do um yeah he can do it he should have done it 20 years ago because it is possible we we became debt free 2018 we did the debt free scream there at the show with the family it doesn't matter how many kids you have we have 11 kids wow and yeah and tears pregnant with the 12th are expecting in december um and if you want to accomplish it you can and if you hear all of the different advices out there financial advice out there there's a lot of different advice there's a lot of different good advice out there but once you actually follow the baby steps and you actually apply it and you get your brain straight around get your head wrapped around what this actually means and what you can accomplish then i believe anyone can accomplish this anyone's going to be debt-free not to put words in your mouth but i want to make sure i understand you you consider yourself a baby steps millionaire you did it doing the baby steps absolutely okay cool hey man thanks for calling in and congratulations on number 12. whoa wow you got to be a millionaire just to feed them just to buy the bus wow good for you man wonderful large families are awesome this is the ramsey shop [Music] [Music] life is full of firsts [Music] as the first and longest serving christian health cost sharing ministry chm has shared medical expenses for its members since 1981. we believe you should have the freedom to focus on your health while being supported by a community of believers giving you the opportunity to create many more firsts [Music] [Music] if you're struggling with money it's easy to tell yourself that you'll deal with it later i'll start fresh next year but then later rolls around you're still out of control you have to decide i'm sick and tired of being sick and tired i've had it this is the last month i'm gonna do this when you decide that we're ready to help this month we're knocking 30 off a 12-month membership to our most impactful life-changing class and money products and tools it's all included in a ramsey plus membership when you do ramsey plus you get access to financial peace university which millions of people have gone through this class learning how to not only get out of debt but to become baby steps millionaires like we're talking about this hour you get the premium version of our budgeting tool every dollar and you deserve a life uh free of monthly payments and constant money stress start your free trial of ramsey plus today by texting trial to 33 789 text trial for a free trial to ramsey plus to 33789 it is a millionaire theme hour we are talking to people with a one million dollar net worth or greater a net worth is calculated what you own minus what you owe your assets minus your liabilities it's not a feeling it's not an income well a million dollars isn't enough it's not a point all people of a million dollars are evil this is not a moral construct it's an arithmetic formula that's the deal do you simply have what you own minus what you owe equals 1 million or greater if so you're a millionaire and i want to talk to you maybe it's worth 10 million i don't care but i want to talk to you because you actually have done it and people out there need to hear what real people sound like not people on talking heads on stupid butt news channels they need to talk to real human beings and you're who it is so if you have a million dollar net worth or greater call me right now the phone number is triple eight eight two five five two two five greg is in des moines iowa hi greg welcome to the ramsay show thanks for taking my call dave sure what's up i was uh letting you know i was i'm a millionaire good for you how much so what is your net worth one million one million dollars perfect and uh give me a little breakdown on that between the different classes what's how much is in retirement mutual funds how much is in real estate so on roughly 450 in retirement 450 in real estate including a few rental houses and about 100 cash okay good for you how old are you 38. how much of this one million dollars did you inherit at 38 years old you know we got a few bucks when my mom died but that blew it i think it was a couple thousand dollars is all oh and it wasn't it had nothing to do with with any of this okay so you're not a millionaire because of an inheritance that's the point okay so uh very cool what do you do for a living i teach you're a teacher what do you teach i am uh healthcare you teach healthcare yeah in what what in what setting community college city okay good for you all right so what your best year of household income and your worst year of household income combined probably 200 best and worse is probably 30 000 coming out of college okay what's your wife do for a living she also teaches healthcare oh very interesting all right cool you know the number three uh uh profession that we found was teacher as we in our millionaire study doctors didn't make the top five [Applause] so [Applause] so so from you that is envy are you with me yeah i'm here okay so they got the phones going so i i was filling till we could get back to you so okay yeah i'm guessing your degree is in healthcare it is okay and what was your gpa uh 375 i think from my master's degree oh wow good for you okay cool so what's your advice to someone who wants to have a million dollars by the time they're 38 congratulations hero well thank you uh two things come to mind is one is of course invest early and the other is more important is simply be intentional with your time your resources your finances are you back with me again coming in and out okay sorry about that greg i apologize apparently we've not spent enough on our technology here um we got a deal on it though i'll just tell you um here we go so what's your what's your advice to the younger version of you you did this very early start early and be intentional you know do things on purpose that's pretty much it okay yeah and just and do you feel like you guys didn't have any life that you just stayed at home and clipped coupons and never came out except on triple coupon thursday or whatever no ten years ago we went to spain we spent three weeks in barcelona and had a great time we we had done everything we wanted to do okay you've just been very careful very intentional uh it's not like you're like super frugal dumpster diving or something for your food or something you just made money and you made good money i mean your best years 200 000 between the two of you and uh and you turn around and use that to build wealth okay back to our construct because i'm jumping around all over the place here but here's the thing i have met tens of thousands of millionaires in my life because of what i do several years ago once i became a millionaire i thought well i need to meet some billionaire billionaires because i don't have a billion and so i need to talk to people about how to do that and i've now met i think 40 or 50 billionaires in my life um i will tell you that out of those billionaires and there's some strange cookies that are billionaires okay that's a different that's a different that's a thousand million okay so this is a millionaire times a thousand is a billionaire and so it's a different world than than you know somebody with 10 million net worth they're not even close to billion it's a different world different mindset different everything but even among those uber rich which are definitely probably not one percenters are probably one half of one percenters out of all of those that i met i think 50 or 60 of them i lost count somewhere around there how many i've met and had conversation with not just drove by and said hi and i just got a picture with but i actually had a five or ten minute or more conversation with developed a plan whatever that kind of a thing out of those people two of them are absolute tools horrible people that i really you have to take a shower after you meet them but two out of any 60 people you meet whether they have money or not qualify for that so it's not really any different so this idea that the only way to become wealthy is to be a crook or rip people off is ludicrous because by and large the way people build wealth is they bring value to the marketplace they're serving someone they don't they don't just wait tables they have a restaurant oh wait they don't have one restaurant they have 10. 10 restaurants doing a good job taking care of people feeding them collecting money for feeding them and they build a little miniature restaurant empire you know and so that's what's going on so the idea that they inherit their wealth that that's where money comes from nope the idea that you have to be crooked to be wealthy nope this is all small time thinking by small time people that are jealous and envious they're victims you're not a victim this is the ramsey show [Music] [Music] it's an everyday baby steps millionaire theme hour i'm dave ramsey your host we're talking to real millionaires this hour people have a net worth of a million dollars or greater your net worth is what you own minus what you owe and that determines whether or not you're a millionaire you may not have a goal to be a millionaire but you are listening to a money show and the reason for getting out of debt is not just to feel better the reason for getting out of debt is to be able to increase your generosity increase your net worth increase the stability in your life um retire with your golden years take care of your kids college all these kinds of things it's not money that matters it's what money does that matters the money is useless i mean enough lobster tastes like soap i mean there's only so much you can do with money but what it what you use it for is why people choose to acquire money now how do you get to a million dollars the fastest way i know is following the baby steps um and it is the most sure probability let's talk to some real millionaires amy is in dallas hi amy how are you i'm great mr ramsay how are you better than i deserve what is your net worth uh 1.8 million okay cool break that down for me by category a little bit um i'd say um 750k is about you know 401ks roth iras um 700 k's and other stocks and mutual funds um house and then um cash as well okay that's uh so you got about 250 in cash uh so stocks is about 700k and then house is about 400k and then plus other cash and then plus the 750 from the 401ks in roth ira gotcha how old are you i'm 32 and my husband is 31. wow you did this really fast congratulations how much of this 1.8 million did you none inherit my side i think my husband got like 15 000 before we got married but obviously that's not indicative of why we have what we have right for sure okay what's your best year of working household income and your worst year of working household income so we got married about three years out of college so our best together was about 120k or sorry worse together is about 120k our best was probably last year at about 320k but that's we got a couple big bonuses that's not the average okay cool what do you all do for a living uh surprise surprise we're both engineers okay well you fit the model oh my gosh and obviously you have engineering degrees what were your gpas we do uh mine was 3.3 my husband's was 3.1 that's not indicative that i'm smarter than him though i don't know i'm going with that i'm going with that narrative i'm just saying all right so this is an impressive number in a very short period of time by 32 and 31 years old 1.8 million as engineers making as engineers making a high of 320 household income so on that high year you had an unbelievably fabulous income but you guys have killed it what was your secret um i mean if i could be honest i would say it's four things one i'm gonna give my parents a shout out it's listened to them they've been around the block um so my dad you know he sat me down as soon as i got out of college and said hey don't get enticed by the shiny object you're going to be making a lot more than you may previously set a budget and live by it and i did and then number two treat it as not your money but it's a gift from god that you're just stewards of you know so it's never yours it's his and he's trusting you to be a good steward for it and then three same page as yourself you know my husband i have never had a disagreement about money ever and uh you know before we got married we went to this you know pre-marital counseling with our pastor and he joked that we were 99 compatible on financial principles which like okay great because that's the number one cause of divorce so we're good there and then um it's the fourth one is live below your means we've never lived on any more than 60 percent of our income and we've never changed our lifestyle so and by the way 60 of your income is pretty dead gum sweet yeah fair enough fair enough yeah i mean you it's not like it's not like you you're you're living you know in somebody's basement or something i mean you guys are killing me this is so well done i'm so proud of y'all this is excellent absolute heroes okay so you just gave us the formula live on less than you make uh be on the same page with your spouse keep the nobility factor going knowing that you're a steward you're just you're not an owner you're a manager for god and just use some common sense and you know don't be a bass because bass get caught by shiny objects yeah i mean we've never changed our lifestyle i mean i think i i remember you guys asking what's your most expensive pair of jeans i think you've asked that before yeah man i think mine's like 30 bucks and it's not even the amount of money i spent on jeans but i think it's the amount of money we spend on clothes per year i think our budget for the year is 150 on clothes per year you're not clothing motivated what are you motivated by what is what is your thing what is your what is your guilty pleasure you do spend money on if i could i don't i don't i don't even know i guess it's kind of weird i don't know how to answer that because i think my guilty pleasure is giving to others like i love it so like like if a family member calls me and says hey amy i need your help with this in a heartbeat yeah you know so and i love doing that and i think my husband teases me all the time because i won't get expensive things for myself which he loves because then he starts you know hey anniversary i'll get her this christmas and success yeah i won't get it for myself but uh yeah i think that's that's i'll give you one thing we splurged on a vehicle okay but it was the best thing ever when we could uh pay cash yeah yeah yeah so what what is what is the what's what was the splurge vehicle what was it it was a yukon xl recently okay recently and you've got a 1.8 million dollar net worth yeah yeah you're not broke with six student loans and four car payments and a mastercard hanging around your neck and then you go get a new yukon and go i deserve it you didn't do that you got a first you went and got a 1.8 million net worth by the time you're 32. you guys are amazing i'm honored to talk to you very cool carol how are you what's your net worth i'm good dave great speaking to you my net worth is 2.2 million good for you give me a little breakdown on that by category uh 245 000 in real estate 100 000 in cash and the rest is 401k and ira wow big 401k okay killing it how old are you i am 61. okay cool and how much of the 2.2 did you inherit zero zero a lot of hard work okay are you married or single i am single divorced okay and uh how long ago how long ago were you divorced four years ago and i was told i'd be bankrupt in a year but instead of being bankrupt my portfolio has grown so yes you don't look bankrupt to me no i'm not yeah and that money that that um 2.2 does not even include my daughter's 529 plan which is about 100 000. wow way to go so what is uh been your average income over the years um when i first started out contributing to my 401k it was about 45 000 and now i'm up to about 130. what do you do i am a risk analyst a risk analyst okay that makes sense all right and what's your degree in i have an associate's degree in business administration wow and what was your uh gpa during that time well obviously it was a while ago but i was about 3.9 okay i went as an adult so a little more focused than as a teenager so gotcha okay what's your advice to the younger version of you that's listening to be able to have 2.2 million at 61 four years after a divorce i would say slow and steady absolutely take advantage of every program your employer has to offer if they have a six percent match in the 401k you put your six percent in and look at all your means i know i hear that a lot on your show and absolutely we live below our name so well done carol proud of you excellent job oh by the way we usually don't talk to people that are savants either the average gpa is around three mine was 2.97 and i'm still pissed off about that three one hundredths of a point [Music] [Music] [Music] [Music] john 1 5 is our scripture of the day the light shines in the darkness and the darkness has not overcome it abraham lincoln said character is like a tree and a reputation like its shadow the shadow is what we think of it the tree is the real thing it's a millionaire theme hour as we talk to real millionaires people who really have a million dollars or more not your broke brother-in-law with an opinion not your little socialist left-wing college professor but people who really have a million dollars how did they really get it john is in virginia beach john what's your net worth hi mr ramsey it's an honor to speak to you it's a 2.15 million 2.15 good job give me a little breakdown on that by category uh iras from various rollovers are at 1 million hundred and twenty nine thousand and uh both the wife and i have two roths at 155 000 and then we have a joint like electronic fund in there at uh 57 000. and then we have a home that's got about 134 000 left on it but valued at 620 000. so half a million there you counted yeah we counted that as 486 and then with our current jobs we got about 102 132 000 in uh company 401ks wow okay cool how old are you and an emergency fund i'm going to be 57 in november and the wife turned 62 this year okay great how much of the 2.15 did you inherit oh nothing okay and um they always sound surprised like nothing of course okay so what's your uh best uh your best working year uh household income and your worst working year household income all right well in the 80s were married in 86 so combined together i would say we were maybe at 50 000 a year and peak earnings were early 2000s say 2005 2006 before she semi retired and we were probably at 170 000. okay cool what do you do for a living i'm a satcom engineer okay okay oh cool work with the military gotcha and what about your wife what did she do she is semi-retired but she worked her way up from a part-time cashier job to being a district manager for a major major fast food company okay all right very cool yeah what's your degree in we're dinosaurs dave my wife had one semester and that's it with a college diploma and i had a renata college diploma high school diploma i had a high school diploma and uh i did a bunch of different you know techie courses because i grew up with the technology not like the kids you know i had to grow into it so um i may have enough matriculated credits for an associates but i have they told me to graduate at age 40 that i would need uh i don't know math english and philosophy and basically at that time i was already making good money and i said screw it it's against your philosophy yeah yeah i love it so what's your advice to the uh what's your advice to the 24 year old version of you that's listening out there do you think they can still do it today and if they can what should they do oh absolutely definitely start in your 20s we got started late you know we were on america uh credit card merry-go-round for years until we finally got tired of it but yeah start early invest early and you know live below your means and pay for everything in cash save up and pay for cash except for you know obviously the house is a big ticket item but i mean it can be done yeah so you didn't take any huge risks you just got out of debt lived on a budget and invested oh absolutely yes we have we've had an investor for the last decade now that helps us a fiduciary investment firm gotcha very cool well hey man way to go john we appreciate you sharing with us congratulations you did it so the 10 167 millionaires that we studied here's what we found i've already told you 89 of them did not become millionaires because of inheritance 79 that's 8 out of 10. by the way when you're doing statistics and you have something that's 79 that is a significant freaking number that that establishes like a principle it's not just like oh 52.4 percent and we're not sure we've got all the votes we need to actually make him president you know i mean it's not that this is not this is not hairline stuff here 79 is like everyone okay when you hear a number like that in a piece of research it's it's statistically devastating 79 of a million of millionaires did not attend prestigious private schools turns out where you go to school don't matter help you with that except for the grammar when you're doing talk radio but which it turns out you can have bad grammar and still succeed 62 percent graduated from public state schools 8 attended community college nine percent are high school graduates like our last caller 68 of millionaires that's statistically significant use a financial advisor to help them on their journey 73 of millionaires never had a penny of credit card debt 7 out of 10 never had student loans by the way half the population has had a student loan but 7 10 millionaires didn't top three jobs already told you engineer accountant and teacher 96 enjoyed what they did for a career i hate my job is not something millionaires say very often i hate the place i work is not something millionaires say very often if they feel that way they leave that's kind of like integrity and stuff one-third of millionaires never had a six-figure household income not even one year 33 percent became millionaires without ever making a hundred thousand dollar household income that one kind of blows my mind i mean you it does help to earn more money no kidding you know wow the average millionaire lives in a 2600 square foot house that they have lived in for 17 years the average millionaire paid off their home in 11 years the average millionaire in the ramsey tribe that we did some separate research on pays off their home in a little under 10 years 94 say they live on less than they make 93 use coupons most of them hit millionaire status right around age 49. 97 of millionaires believe they control their own destiny 62 percent of the public believes that belief matters that's why we do this show 70 percent say they set some other income aside for generosity every single month so turns out there's a formula to building wealth that is highly predictable invest in your 401k steadily like baby step 4 15 of your income going into retirement after you've gotten out of debt and have an emergency fund in place and then work to pay your house off if you pay your house off in 10 years or less you're putting 15 of your income away into retirement and you make an average household income and you start that process at 40 years old you will retire with more than a million dollars probably more than 5 million depending on your household income it just works these baby steps that we teach it is the shortest path it is just simply works but everybody's got to mess with it everybody's got a gripe everybody's got a whine everybody's got an opinion and so we do these shows to go guys these are real people that do this why we call them baby steps millionaires because they really freaking did this does anybody do it perfect do most of us have regrets no one does it perfect and all of us have regrets we all could go back and go well if i'd started then think about how much if i hadn't done that stupid butt thing how much i would have we all have that but the point is this formula is a predictable outcome it is arithmetic it's not happenstance it's not by people like you you are people like this once you decide to be that puts this hour of the ramsey show in the books we'll be back with you before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the prince of peace jason senior producer for the ramsay show did you know over 18 million people listen to the ramsay show every week and a lot of those people listen on one of our 600 plus radio stations across the country to find a station near you head to thermsyshow.com [Music] you

Channel: The Ramsey Show - Full Episodes

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Length: 121min 15sec (7275 seconds)

Published: Wed Aug 25 2021