Financial Peace (🔴 Live): Baby Step 2 Explained

thousand dollars maybe step two is the debt snowball pay off all your debt except your home and baby step you to using the debt snowball see your largest wealth building tool is your income and when you give your income to other people called banks they have nicer furniture and bigger buildings than you have do you think Santa Claus built those buildings you did you gave all of your sweat to someone else for a couch for a car for a swimming pool you couldn't afford we know you couldn't afford it because you didn't pay for it and it's easy payments who ever had any easy payments this is not y'all you will never win with money as long as you struggle with that as long as you justify and rationalize and you're normalized the use of debt when you don't have any payments breathe that in no Vance I can't even fathom the sense of freedom the sense of release that's so much freakin money and when you start putting it into investments instead of into payments it turns into all a lot of money for you and for you to be generous and for you to change your family tree and for you to live life large and enjoy things but living without that our culture has so normalized it and rationalized it that you people will think you're weird if you don't borrow money because you will be normal is broke normal is living paycheck to paycheck work your whole life like a rat in the wheel and come to retirement gosh sure hope the government which is well known for its ability to handle money will take care of me that's dumber than a rock and we got a whole culture doing this it's past time for a renaissance in the art of personal finance it's time it's time to live without debt in a culture that is normalized this requires a whole new way of looking at things me tell you how you get a new way of looking at things you do what you're doing tonight you get new information you didn't have you ever read a book or read the Bible or you went to a course on marriage or you did whatever and you got a new way of looking at things and it changed everything in learning we call that a paradigm shift it was a big thing back in the 80s everybody listened to the paradigms but all that is is your paradigm is your way of looking at things and the way you're looking at them now got you where you are so we need to change that let's have a different way of looking at things and that's warning that's all it is let me show you a visual paradigm as an example you will learn in the next few moments watch all the female voices that we're about to go protest because you put punctuation on something that I didn't isn't that great well for those of you that don't know I hope you're this for the drive home the correct answer is the last one okay but isn't it interesting that you depending on how you punctuate that the meaning of the sentence completely changes 180s completely changes and yet some of you with no punctuation punctuated it one way or the other now you've seen both you've learned you will never again see that sentence and be tricked by that it's now stored in your hard drive and so you have learned there's a new way of looking at things so aha here we go through here ah that was kind of a female relaxing I don't have to kill him it's like make sense Khan was coming out there y'all ready to shoot me and I didn't do it you did it it's not fun so you get a different way of looking at things by punctuating it properly and you get the right answer at the last here's another one look at this one the rich rules over the poor and the borrower is slave to the lender will get out of school with student loan most of us got a free t-shirt and got some credit cards while we were on campus changed our financial life they got home and got our first big board job big girl job and Shannon was driving a 1902 Pinto you remember those cars that used to explode I got all embarrassed and what bought her a car that I wanted you near that did you how many you guys have ever bought your wife a car you wanted yeah I'm sure she liked it it's a hot rod but I'm sure she'll like it and then of course you've been married for 20 minutes and everybody's like get a house get a house get a house get a house you got to get a house if you don't get a house you're gonna be a renter and renters go to hell you can't be already can be a rancher uh my house my house and so broke people go buy houses and if enough broke people buy houses at one time and the government helps and causes mortgage companies to completely lose their mind you could like turn the whole economy upside down maybe I old enough to remember 2008 and so we have couples that come in our office that look like this every day they're like Dave can you get me out yeah it's gonna hurt we're gonna have to amputate the Tahoe you mean I gotta sell my car uh-huh you owe 52,000 on it and you make 26 your harsh new I am loving loving telling you this Shannon I figured out that this is the truth we had a paradigm shift we said we don't borrow money anymore you don't borrow money nope don't borrow money you know what you can do when you don't have any payments anything you want think about it just take a couple of car payments to start multiplying my car payment America today the average car payment is five hundred six dollars over 84 months according the national auto dealers association invest five hundred and six dollars from age 30 to age 65 in a decent growth stock mutual fund you'll have 5.6 million dollars in your 401k hope you like the car this is the power of debt it steals your economic muscle and deposits it in someone else's account after you worked your butt off it's got to stop and we quit giving our money away to other people the only money we give away now is charity and ministries and generosity and dadgum taxes and that's all we do and so I only got one thing to be mad about every year taxes I'm not mad to bank because the bank doesn't come to my office except to try to figure out how to get our millions of dollars of deposits and so I went from hillbilly to dealing with Beverly Hillbillies and mr. Drysdale all right Davey wants your business no I don't really want only white bankers if you're a banker I love you but I don't really like you I just do you and Dave everybody here everybody you have to have a have to have a credit card if you don't have a credit card really that's my wallet got green presidents faces four pieces of plastic a debit card on my business a debit card on my personal account my driver's license and my handgun carry for a minute oh there's still rednecks in South Carolina huh I was in California though today and I said that I about got arrested good to be back in America but oh my god oh we're just playing with you people in California watching on the stream we love you just stay over there okay but [Applause] well David everybody's got a car payment oh boy everybody calls me on the show with a car payment question they borrowed by a car what about my car Pam oh boy call me from Texas needs like baby you're gonna kill me I'm not gonna kill you you're in Texas I'm in Tennessee how am I gonna kill you what'd you do my truck paper how much is your truck payment seven hundred $69 are you kidding me this is a fine truck he goes no Dave it's a fine truck what's killing me I said I think how much is your house payment you said what we live in a double-wide it's 550 [Applause] dude if your truck payments bigger than your house payment you might be a redneck okay amazing what happens when you get out of debt Dave I need a FICO score why you're gonna go in debt so that you can get a score it allows you to go into debt so that you can get a score it allows you to go into debt so that you can get a score it allows you're going to debt your FICO score is nothing to do with your income or your net worth it is not a measure of financially winning it's a measure of how much you have played kissy-face with a bank mathematically the algorithm states that quit worshipping at the altar of the great FICO oh great FICO we bring you offerings of interest and you give us stuff we can't afford thank you oh great FICO please run my score up great FICO the people come up to me I have an 800 score and I'm going I'm so sorry it cost you 150 grand easy and interest there's no possible way to get one my FICO score zero I don't have one it's indeterminable which is awesome I just pay for stuff if I don't have the money I don't buy it Wow that's deep it works - the Bible says a foolish man devours all he has you spend everything you make your fool and that's a biblical fool I didn't say you're a fool God said you're a fool don't blame me don't spend everything you make and don't put yourself in debt you're a slave and you know the interesting thing is getting out of debt is not a math thing as much as I thought it was I'm a math nerd I've always been good at numbers I can just do numbers I'm just the numbers I do on the air when you hear the radio sometimes I put that in the calculator but 90% of the numbers I'm just stirring around my head I've been doing a long time I can do big number math real fast I can get pretty close on most of this stuff and I'm just kind of okay you did this and this and I'm looking at the ratio of this I can just see stuff in the numbers it's easy for me so I thought if we fix the math it would get people out of that so I just need to show them how to fix the math it's not laughter because I would have a single mom making $34,000 here that would pay off $100,000 in four years and I'd have somebody making $100,000 that calls me up they got thirty four thousand dollars in debt and then I'm stuck we mean I just talked to a single mom makes a third of what you make and she paid off more than you make and you're stuck Queeny you're stuck hope you don't have hope when you don't believe you can you can't do anything Henry Ford you should say if you think you can or you think you can't you're right the Bible says Hope deferred makes the heart sick but when desire comes it is the tree of life and so I start realizing it was about what was happening inside of people's heart in their hope factor the ratio of their hope to the problem how much they were fired up how much they were they've had an I've had it moment when you say I've had it my momma used to say the worm has turned we even know what that meant we just knew the beatings were about to begin right you know looked it up finally I found out Shakespeare said that mom knew Shakespeare but there you go things you don't know about your mom when you're a kid I'm mad but you got to have that moment that's it I've had it so I'm reading through proverbs because there's 31 of them if you read one a day you can go through them in a month and in 12 times a year and if you read proverbs over and over again you'll have a master's degree in finance even if you're not a person of faith it is the book of wisdom okay and there's wisdom in there whether you agree with the source or either read so I'm reading through there and I'm you know I always get something different about once a year I hit something oh wow and so I'm reading and I saw the formula because I'll think of math terms I said if you've signed surety my son which is Old English Bible talk forgotten yourself in the debt okay I'm reading King John New King James Version that's what I was reading right there if you sound surety my son do this now that's a formula here it problem answer to the problem other side of those words do this y'all have that if you got this problem God says do this and I'm like there it is this is how you get out of debt this is how those people are getting out of debt they're doing their debt free screams and I can't figure out how the ones that don't make as much as the ones that make are doing it this is what they're doing what are you doing it says give no sleep to your eyes no slumber to your eyelids okay I got that go to work I got that and deliver yourself like a gazelle from the hand of the hunter a bird from the hand of the Fowler now I know some of you are holy people and you're like reverent with God but me and God just talked and he's not scared of me and so I just I'm like I gotta do this God you said get out of that do this and then you give me an animal metaphor I don't get it power you don't run gazelle what are you talking about I don't yeah so scanning the Discovery Channel that night and I hit the Discovery Channel and there were the gazelles they were out there good selling around i sir I was just reading about you boys so I stopped my scanner I set the changer down what's happening now you know that the gazelles are not there by themselves if the Discovery Channel is there you know someone else is on the scene mr. cheetah is looking for lunch in all the right places now I don't know if you know this but gazelles have a little cheetah detector behind their ear and when they see him or hear him they go cheat because here's some actual facts the cheetah is the fastest mammal on dry land it can go from zero to sixty seven miles an hour and four leaps they have been clocked as high as running 82 miles an hour we had to slow this down so I'd have time to talk this is the fastest baddest predator on the planet and he's after lunch he's trying to go through the drive-through he picked out a college student come here kid come here kit kid you need to get you a cell phone you've got to build up your FICO score come here kid I'll give you a t-shirt for that credit card come here kid come here kid and the God says this is how you get out of debt you deliver yourself like a gazelle from the hem of the hunter you want to get out of debt you got a rug you got to put it in gear you got a bust [Applause] nananananana you know how long we had to look for a quick clip where they get away here's what's interesting the Discovery Channel went on to tell us that night then in times they've clocked these chases and that hundreds and hundreds even thousands of times and the animal experts tell us this is about true that the Gazelle is only captured by the cheetah one in nineteen times now here's what's interesting about that metaphor the cheetah is faster he's bigger he's really scary he's a he's a cat he's a dude and yet he only wins one of nineteen times I'm thinking how does the inferior gazelle get away one out of I mean nine eight seven to 18 out of 19 times I'm thinking about I went Oh motivation ghazal loses the chase he dies Cheeta loses the chase he chases another gazelle later no big deal get me a slower one next time right now this is what the word that says deliver yourself hey have you got me out of debt I ain't never get anybody out of debt I showed you how I made you believe it could deliver yourself the government's not coming they're stupid deliver yourself you're not gonna win the lotto deliver yourself don't wait on a race you'll spend it anyway deliver yourself like you're running for your life we call that gazelle intensity around our place and that single mom making 30 for the paid off 100 she had gazelle intensity she was invested in not being lunch anymore that guy making a hundred that can't seem to find a way to pay you off 34 he's scheduled a wandering about the tundra hungry he's next deliver yourself like your life depends on it that's what this says so how do you get out of debt well I'm number one you quit borrowing more money no that's deep you can't get out of a hole while you're digging out the bottom so don't tell me about I'm going on vacation and then I'm gonna work on this up you need to go home tonight get your credit cards out light a candle and have a plastic surgery celebration I have met with thousands of millionaires I've never met a millionaire that says you know David I made all my money with my airline miles that's the biggest bunch of hogwash and everybody's so stupid they like trying to be sophisticated and justify I make money on my credit cards please just open up bankamerica please just open up chase please just look at Wells Fargo open up the credit card section in their financial statements and tell me that again that's the dumbest but statement I ever heard in my life you're whipping these multi-billion dollar corporations who have more in depth behavior Studies on you do they know more about how you're gonna behave than you know they're tracking you through all your Google and all your all your moves Google Analytics are telling them exactly who you are what kind of freaking bottled water you buy and you're gonna outsmart them keep playing with snakes bozo you're gonna get bit that's how this works I got rid of mine Capital One what's in your wallet money Wells Fargo twenty four thousand employees fired for fraud they have twenty four thousand employees no they had a hundred something thousand employees and a fourth of them were crooks this is hard to Bank of America why anybody do business those people unbelievable Citibank in American distress she target that's what's on your butt listen guys come on really all these places take cash all these places let you play with your debit card I travel all over the world I rent cars let's stay in fine hotels I woke up a handle my debit card mister mg but we will take your money every time it's different yeah it's different quit borrowing money if you want to get out of debt second one is you need to save money maybe step ones a thousand dollars everybody say thousand dollars hey yourself first start with a thousand dollars that's baby step one and then we're gonna work our way into saving afterwards next one is sell some stuff sell so much stuff the kids think their next name the dog eBay put the cat on Craigslist children are trembling dad please don't little Johnny we like him you got abyss quit your love affair with stuff godliness with contentment is a great game starts relaxing the striving for the acquisition of trash for the next year's garage sale is unbelievable I mean no other culture in the world when we move has a box that says seldom used kitchen items only in a culture like ours where we're just obliterated with stuff I'm not against you getting some stuff but we're not I control y'all take a part-time job take some overtime my grandmother used to say there's a great place to go when you're broke to work you can make 1,500 bucks a month delivering pizzas four nights a week well I don't know I have a master's degree and you're broke I don't care if you deliver pizzas or not but get your button gear let's do something sit home and watch HBO reruns and think Bruce Willis is gonna change your life it's not gonna happen not gonna happen you got to do it you deliver your self and the last one is prayer really works now I don't know where you are on your faith journey or if you even realize your own one but I do know this whether you know it or not your heavenly father's absolutely crazy about you he thinks you're amazing and he's really rich the Bible says he owns the cattle on a Thousand Hills oh by the way he owns the hills your dad loves you and he's really rich and you're in that phone home me T check-in well I can't I don't know if I could pray or not huh he's probably mad at me you don't know about all the stuff I did he's not mad at you sometimes you make him laugh I mean you know think about how many y'all got enough kids that you got a stupid one don't raise your hand if you're sitting with Oh we think about your Heavenly Father he's got some stupid children he looked down at me when I was doing all that stuff he's an egg Gabriel come here watch that one oh that's gonna leave a mark it did it changed my life he's crazy about you and if you just start talking to him that's called prayer and you start having a real conversation with him his love letter says he's gonna throw a party put a gold ring on your finger and new suit of clothes on you and serve filet mignon at the party it's in there look it up it's called the prodigal son and it's real most of us have been that at one time or another in our lives so check in it works now we're gonna be on baby step one we're not investing anywhere we're squeezing every dollar out of our budget we're building up all the money we can get from working extra and everything else and we're gonna start attacking our debts using the debt snowball the debt snowballs where you list your debts smallest to largest you pay minimum payments on everything but the little one and you attack with a little one with that gazelle intensity you attack it as fast as you can as hard as you can regardless of the interest rate well David wouldn't it be mathematically correct to pay out the highest interest rate first yes it would but if we were doing math we wouldn't have credit card debt this is not a math problem this is a behavior problem and a paradigm problem and you solve those problems with paradigm and behavior solutions not math solutions consequently millions and millions and millions of people have gotten out of debt using this and all the other crap you read about on the internet added together Danny Matt up to a tenth of what we've been able to do using this simple idea because when you pay off a little debt you go wow then you pay off another one you're like yeah when you pay off another one right the more you pay off the more excited you get the more excited you get you start to believe your hope goes up as your hope goes up you sacrifice even deeper you cut deeper the more you cut the more you work the faster you get out and as soon as you pay off one of those debts take all the payments from that type pay the next one down and all the money is freed up from that you pay it on the next one down and everything else we can find then you paid on the next one then you paid on the next one the snowball rolls down the hole that's how it's done you guys your largest wealth building tool is your for years decades we at Ramsay have been teaching people how to handle money and how to win with it we've had millions of people use this and change their family tree over 6 million of them have been through Financial Peace University in the last 36 months we have backed up and looked at the way we're doing this and are really thinking it through it's a pretty incredible time in our organization we've got all these data points we've got all this experience we've got all this proof text in the market and we're starting to look at it and we've realized that simply teaching people and walking them through the 9 week class Financial Peace University wasn't enough or we have had incredible results with that but it didn't enough and so we've been really working hard to design a way for you to go further and faster than ever before doing the stuff we teach and we've got this so polished and so dialed in we're living out this plan goes into high gear and so we've rebuilt the financial piece membership membership has everything that you're going to need to my win with money in one place of course the financial piece membership includes the not only Class Financial Peace University everybody knows about that a lot how many of you've already been through the class awesome ok and it's incredible it has amazing results but when you go out the back of that class unless you turn around and be a coordinator you can run out of steam because you kind of kind of drift off out of the stuff right and so we're we've been observing this and so the financial piece membership includes access to the financial piece we also put in there every dollar Plus which is the connectivity to your bank in the every dollar app and that means you put your bank in there and every time use your debit card it shows up right there in your budget and so you can keep up with your budget faster easier quicker and you're more likely to do it and the more you do your budget the more you stay on track executing the details of this project which is called wealth building each of those we used to charge over a hundred dollars for we're including both of them in this now and the whole thing is a deal now it also includes bonus courses like the legacy journey which the follow-up class to Financial Peace University that a whole bunch of you have not been through yet it's in there smart money smart kids which is a class taught by my daughter number one best-selling author two times Rachael Cruz the first one was called smart money smart kids where she and I talked about how we taught our kids how to handle money for your parents how to break the chains off of your generation teach your kids how to handle money then we put in there the community and you get on here with the community our online community is a village and they are hardcore I mean it's like their demeanor and ion they will you get in there there do this stuff man their because they we want everybody to win everybody it's all positive peer pressure lifting you to where you want to go it changes everything we put our toolkit in there there's all kinds of goodies in there we'll talk about some more of those through the night but I mean there's all kinds of stuff we're adding all the time and you've got access to the Rams of coaches as well all of this is in one pile and you can't beat this this is this is gonna speed up the effect of Financial Peace University and extend it that's the key part the last parts important extend it past nine weeks that's very very important so we can stay with you and keep working with you and keep feeding things and for tonight we're gonna add in one book free and so you get financial peace membership and one book free this bundle is normally $129 the plus the book which is another 20 bucks so that's about $140 bundle usually $149 bundle and tonight of course it's $99 always a seminar special right that's how you do stuff right so we do that now here's what's interesting one of the other things you get when you get membership is you gets live streaming like we're streaming this all over the world right now and people paid something you at home paid to watch this stream and if you remember you don't pay you just go into your membership and you've watched anything streaming so like and and thank Ballantine's Day coming up Rachael Cruz and les parrot will be doing the money and marriage event in Nashville if you want to come to Nashville it's not yet sold out but if you'd only come to Nashville it will be streamed to financial peace members free when we do another event it'll be streamed free we do this event stream free so several times a year we're gonna give you other new stuff so as we're developing new material and talking about different things like Hogan does a millionaire which y'all like to I talked into a whole millionaire thing we would stream that and put there's a membership thing that's pretty stinking cool so it's neat out there guys so run out there and see guys in the yellow shirts at the financial peace booth and those of you at home you can jump online and find out everything you need to about it will tell you more about that in a minute but guys this is the best time ever because we've taken all of our experience now and put it into a way to help you go further and help you go faster for nine weeks we had it dialed in for decades we've had six million people do the nine week thing we have that dialed in but now we're darling in the rest of it and we can help you walk through it with the every dollar app and and the communities and the coaches and take you further and take you faster through this and so we want to help you it's why we exist we want you guys to win and so those of you that are already have gone through Financial Peace University you need to understand that is just one little part of this right and so you get the every dollar plus you get in there you get some of streaming and you get some of the millionaire data stuff when it's coming up they do stuff when it's coming out you get in here and you keep going with us and we're gonna get you back up get you running again your baby step for people your baby step five people that kind of stuff and take you on out so you need to look at this membership even if you've been through financial university because this is not Financial Peace University it's just part of the picture now everybody understand that say yes alright very good cool times I gotta tell you the results of stuff we've been able to film with people absolutely incredible y'all watch this most stories that have a happy ending don't feel like it along the way [Music] we borrowed for everything blonde a new couch go finance it on a new TV go finance it on a new car go find and sell my whole philosophy was credit cards I just worked another week swipe the car everything kind of started to crash we started to see our marriage drop away I personally owed 750 thousand dollars in debt I was totally hopeless you need to decide if you want to be wealthy or if you want to look wealthy when somebody told me about FB you I grabbed hold a bit like a life preserver it gave me hope that we could make our marriage work knowing where your money is going is a huge life changer nobody owns me anymore nobody did you opened up communication big-time all of a sudden we were back together a crusade we changed our family tree I am here to do my debt free screams how much of your bait all four hundred and fifty six thousand eighty nine thousand hundred and twenty thousand three hundred ninety-four thousand free it opened up a whole new world of giving the peace and financial piece actually comes from out the register prosity being able to give is the very best part of having wealth if you will live like no one else later you can live and give like no one else [Music] and it is amazing you

Channel: The Ramsey Show Highlights

Views: 304,720

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball, financial peace live, Financial Peace (🔴 Live) w/ Dave Ramsey, Financial Peace (🔴 Live): Baby Step 2 Explained

Id: Iqnb8u567Jo

Length: 34min 37sec (2077 seconds)

Published: Thu Nov 21 2019