How to Take Control of Your Money! | Ep. 1 | The Best of The Ramsey Show

[Music] hey guys i'm george campbell co-host of the ramsay show and i'm here to introduce a limited series that we've created called the best of the ramsay show we've put together episodes featuring some of the top clips from the show you're going to hear how to take control of your money some of the most shocking calls calls about relationship problems real estate investing dave ramsey rants our takes on current events and more and in this first episode we walk through the seven baby steps to winning with money unpack why credit cards are not your friend explain the debt snowball method do some myth busting around building wealth and dive into why you need an emergency fund so sit back relax grab some popcorn maybe some rice and beans and enjoy so george 30 years ago when i started teaching this stuff i was first teaching people how to get out of debt live on a budget be generous live on less than you make so you have a plan you avoid debt you save money for emergencies and later for investing and all of those principles work but people kept saying which one do i do first and so i started laying out well you should do this first and that first you should have an emergency fund before you start your 401k and uh then i figured out it's easier to have an emergency fund if you don't have any payments and so you need to get out of debt first because of course i learned my lesson the hard way going bankrupt and getting out of debt and learning how important it was to be debt-free as a process as a part of building wealth so all of that started to formulate after a few years of teaching in various settings and what became financial peace university it used to be called life after debt and it started becoming what we now call the baby steps the interesting thing is that now the baby steps have gone into the total money makeover book which has sold almost 10 million copies and they have become the proven plan the shortest distance between where you are now and wealth where you are if you live like no one else later you can live and give like no one else what is the shortest distance and we need a path to run on because the way you eat an elephant it's overwhelming do i do my 401k with the match or my kid's college or do i have an emergency fund or do i pay on this 18 credit card debt or or or or or and nothing gets done you get paralysis of the analysis you get frozen absolutely and this step these baby steps have worked for me they've worked for millions and it's really simple if you do it they work and it all starts with baby step one having this foundation saving one thousand dollars for a starter emergency fund this is just a small buffer between you and life before we start tackling the debt exactly and if you have a thousand dollars already great just set that aside that's your baby step one any money you have that's not retirement anything you can sell that is not retirement you're going to liquidate it if it's not retirement you've got some stock over here that grandpa left you you got a gold bar under your bed i don't know what it is but you got any money that's above a thousand dollars maybe you've got ten thousand savings account that's nine thousand dollars you've got that you don't need past baby step one we're gonna put it all on baby step two and baby step two is the famous one that's the debt snowball where you list your debts smallest to largest you pay minimum payments on everything but the little one and you attack the little one with a vengeance side note baby step one should not take you more than 30 days maximum you need to work extra sell some stuff have a garage sale put the kids on craigslist whatever you got to do here let's get it done and you know we're going to get busted into this get a thousand bucks quick baby step two you should be debt-free but your house now you may have to sell a stupid boat uh you may have to take an extra job but most people that have followed the total money makeover baby steps in financial peace university are debt-free inside of two years yeah and that's with doing it with some gazelle intensity like you talk about in financial peace university and once you pay off all that debt now you've freed up all those payments right you have that income about what it'd be like to have no payments but a house payment wow we're breathing easy and then we can move on to baby step three where we save three to six months of expenses in a fully funded emergency fund this is the final buffer where we say we're never going back into debt because we are the bank now yep grandma's rainy day fund why it's gonna rain dave you need to be positive i'm positive it's gonna rain you need to be ready when crap happens there's a pandemic coming around every corner there's something coming and if you have twenty thousand dollars cash in the bank three to six months of expenses whatever it is and you have no payments you are the third pig in the three little pigs the one that's in the brick house when the big bad wolf comes you're ready for life you're ready to go now you're ready to build wealth but that you just now have gotten up to ground zero you've just now gotten up to even when you have that emergency fund and you're debt-free now you're ready to build wealth and baby step four you put 15 of your income aside into good growth stock mutual funds in retirement plans start where there's a match beyond the match always do roth and if you've exhausted roth and match and still are not to 15 then go on to a traditional 401k or ira but do roths before traditional and do match before roths it's mathematically in your favor to do that up to the 15 don't do 20 don't do 11 do 15 while you are doing baby steps four you're also gonna be doing five and six simultaneously absolutely so baby step five is where we're saving for our children's college fund and this is gonna look different for everyone there's no set number here because it really depends on your situation did you have the baby last week or is the baby 18 that makes a difference on how much you need for college right what you got to do for college just like is this an oh crap moment or hey we're going to be diligent and safe did we wait almost until too late now they have to go to college debt-free they cannot participate in this epic student loan system failure that is called america right now it is horrible out there do not let your kids go in debt you do not have to go to debt go to community college for free for two years go go to in-state school work six jobs get scholarships our student loan problem is a parenting problem mom and dad let kids sign up for crap they couldn't afford bad mama bad daddy they got to have the conversations that's where it starts and there's a reason you say baby step four invest for yourself before the kids because there's a hundred percent chance you're going to retire there's a 50 50 chance or less these days that your kid's going to go to college and graduate yeah yeah this is this less than 50 chance they're going to graduate so uh that that this is important so while you're doing 15 you do whatever you need to do for your kids college whatever you decide to do for your kids college beyond that if you can find any money you do that on baby step six and that's pay off your house start chunking on the house now when you're in one through three you are so intense your friends are freaking out your grandmother thinks you need counseling you are gazelle intense like a gazelle running from a cheetah when you're in four through seven you're not intense anymore you are now intentional you're just doing it on purpose but you're no longer on beans and rice your own beans and rice rice and beans scorched earth on one through three two you get those three things done now get that house paid off the average person following this stuff is paying off their home in about seven or eight years now that tells us that the whole program is taking about 10 years and the average baby steps millionaire the average everyday millionaire that we've studied we're finding them become a millionaire from the time they start with intensity followed by intentionality become a millionaire in about 10 and a half years yeah 11.2 years 10.6 years are the two numbers we keep running into so this is completely possible today's question comes from diane in arizona my husband and i are in baby step two and are working hard to pay off our debt the one issue we struggle with is not using credit cards we use them to pay our utilities groceries and other monthly bills but we never carry a balance by doing this we're able to travel for vacations for free using our points what's wrong with doing this if we're not going into more debt the age-old question dave the age-old question we've been exploring this topic on the fine print because it's one of the biggest objections we get uh here at ramsey are people going well dave i pay off my card every month i get some free stuff what's the harm right so we should clue in bank of america and chase what portion of their marketing is working the best and it is this crap the vacations the points this is the one this is the one that's got people believing in stupidity still after all this time yep and here's what happens and you can listen to the the true cost of credit card rewards this is the second fine print episode that we released and we dug into this with an ex-capital one insider okay what did they say uh she said they run 10 000 experiments a year on people to figure out what's going to get them to spend more to use the points and one of the biggest ways they do it is through the points because you know how the points work they don't say it's 500 they say you're going to get 128 000 points that you can use to redeem flights that cost 74 000 and the points change every day and there's blackout dates and there's restrictions and on top of that uh the whole two percent cash back that one is one of my favorites because you know what two percent of a thousand dollars is twenty dollar 20 bucks to spend a thousand and uh that's not a great deal so let me let me get this straight if you spend ten thousand dollars you get 200 bucks ding ding ding that'll make you rich yeah spend ten thousand get two hundred that's a formula for wealth building right there we did an analogy did you people go to grade school listen diane here's the thing we did this analogy in the in the podcast about chuck e cheese cause this is what it reminded me of dave you go to chuck e cheese oh my god gives you a ten dollar bill and you get these cool claw on toy story yes so you get your coins and you're so excited to spend those coins that you spent ten dollars on and you go and you get all the tickets and you get 400 tickets and you go to the table at the end of the day and you go wow i can get any prize and they go nope you get sticky hands and a pack of gum and you go wow i spent ten dollars for sticky hands and a pack of gum that cost a quarter yeah and i got screwed yeah i think so uh here's the thing i don't have big buildings dave uh the credit card companies do they're sponsoring every stadium in america and they're doing it with billions of dollars that they're making off of the backs of these people who are overspending you yes yeah so here's the thing um to start with you're not going on vacation for free that is an absolute asinine stupid statement it is not true you might have got your airline ticket for free but everything else on the vacation was not free so you're spending money and you're going on vacation when you should have been working because you're in debt you're not supposed to be going on vacation when you're in debt we follow everything you say no you don't you don't go on vacation when you're in debt and you don't go out to eat when you're in debt you you work and you work and you work and you clean your dadgum debt up and that is that that's the ramsey plan now you can say you can you could go do your plan if you want but don't say you're doing my plan when you're going on vacation because it's just not true and here's the thing the arrogance that is required the intellectual arrogance that is required for you to think that you are taking on billion dollar companies who have algorithms that know what bottled water you drink and you are somehow beating them and you're you're you're fleecing them you're getting an airline ticket and it doesn't cost you anything you really are pretty arrogant to think that you're actually winning at this game i mean honestly do you understand that when when citibank when you call them your zip code is pulled off your nsx code and the person answering the call if it's a friendly call is a person of the same accent as you if you call from the south you'll get a syrupy southern bell accent and if you call from the wicked northeast you'll get a wicked northeastern accent you're gonna these people screw with you on levels you have no idea and you think you're beating them yeah absolutely incredible so here's the thing we did study we did a study of millionaires we studied 10 000 of them 10 167 not a single one told us we became millionaires with our free vacation points because we ran all our utilities our groceries and everything else through a credit card and then we went on vacation for free and it didn't cost us anything and that's how we built our wealth not one said that isn't that odd diane so here's the thing people that ask this question are people that think they're beating the system let me tell you how you beat the system you don't play don't play in the system you know what it's like it's like being a mouse in the maze and you get to the cheese and you think i won i got the cheese and you zoom out and you go no i'm just a part of a giant social experiment that exists to take my money that's what it is so you can play that game and that's fine you can get your vacations but i'm not in the in the business of trying to gain points i'm trying to gain wealth i want to complete the baby steps i want to pay off my house i want to give outrageously and that doesn't happen by paying off my card every month and reaping the benefits of two percent cash back you know the chuck e cheese thing's funny as crap oh it's great the team did a great job with the edits we got the coin sound you got to go let's come out of there skee ball or whatever they're just coming out there like crazy you've got this long line of tickets and your little kid they think they're getting the big prize and you get you never get the big price nothing it's you got you spent 10 to 20 bucks to get a prize that cost less than 50 cents and the same thing's happening when you go to book these flights and you go well we can go to boise yeah i don't think uh martinique was on the list was it no you're not going the bahamas first class i'm sorry so belize and bermuda are not on the list no no so san diego's nonetheless nashville's not on the list no it's blackout blackout dates blackout mean they don't go oh no they just won't take you that's what it means i i think you can do a lot better by using a debit card and using cash and saving up for your own dang vacations yeah you know where i go on vacation anywhere you want there you go that's how that works and you know when i use those credit cards that always works so that's how it happens i haven't had a credit card and my gosh it's george it's coming up on 30 years wow we should have a party we should we can't use points to pay for the party though in police and police i'm in how about cabo let's go to cabo i'm in we're heading there man i'm telling you ryan is with us brian's in pittsburgh how are you brian dave i'm good thanks for taking a minute to talk with me my pleasure sir how can we help so i want to tell you about six weeks ago i ran into a friend of mine that retired and he was telling me how great it was and asked me how much longer do you have i said 12 years and he started telling me get ready debt free that's the only way to go i hear him don't pay a lot of attention to it my son tells me a week after that hey i'm listening to this ramsay show never heard of it before i said what is he new howard stern i don't know never heard that yes he is howard's got much better hair than i've got yeah uh so he tells me this a couple more times i'm on a trip for work i got a lot of windshield time i turn it on i listen to six podcasts back to back to back and i'm going to tell you i'm hooked i get it i'm i am bought in wow so i heard you say hey you got to know everything that's going out everything is coming in and what's your debt so i did that i spent about 30 hours on that last week and let me tell you it's uh scary it's emotional it was tough yeah and so i've got some debt and my question for you is i have about 12 000 and change that we have invested in the stock market single stocks and is it smarter to leave that there as a savings i know there's a risk there and or is it better to pull every penny out of that and put it towards the debt that we have and that would that might would take care of uh i don't know 20 25 of it but my goal i mean i want to be debt-free i got 12 more years to retire and i want to be debt-free when we get there and i wanted to do it i met my wife bought in on it now okay so you got about fifty thousand dollars worth of debt and twelve thousand dollars in stock 66 247 to be exact all right good deal what's your household income uh about 180 190 annually okay all right so you've been listening and you know some of the lingo now and some of the process and the baby steps and all of that right and so baby step two is where you are paying off all debt except the house using the debt snowball listing your debts smallest to largest paying minimum payments on everything but the little one attacked the little one we stop all investing temporarily and we use all money that we can get our hands on that is not in a retirement account to throw it baby step two and that's a standard baby step two answer which would lead us to cashing out your stock and paying off a fourth of your debt okay not saving your when you talk about emergency funds let me leave that there i mean we got no cash saving how much cash do you have uh i don't know 11 12 grand something like that okay we always baby step one is one thousand dollars saved anything above that goes on baby step two until baby step two is done and so i'm gonna use that money as well down to one thousand dollars which is going to scare the p wadding out of you by the way that scares the hell out of that i know i know and that's it should but you're not gonna live there for very long because now we've paid off uh 23 000 of your 66 000 uh if i did my math right just now and you have enough income to clear the rest of it very very quickly and as soon as it's cleared then the first order of business is baby step three and that's build your emergency fund back up to a full three to six months of expenses which it's not now it's kind of it's kind of anemic right now it's weak right the two together would make a decent emergency fund if you didn't have any debt but that's what we teach and here's the reason uh it's not to induce fear but the fear will also help be one of your motivators that oh crap moment you just had that thing where your stomach just kind of jumped up in your throat just at the mere suggestion of doing this and we hadn't even done it but just the idea you go you know we all do that we all have a physical reaction to that um that is going to drive you to stick with the plan now to suggest that you keep a 1 000 emergency fund for five years or something would be ludicrous and i don't suggest that but we're talking about just a mere months here again what was your household income uh 180 190. okay so how fast do you pay off fifty thousand dollars six months forty or no i'm sorry uh forty thousand dollars like what i mean less than six months right well my goal was two years i wanted to do it before i'm 50. so that's that sucks that's way too much sucks you make 180 000 a year i need 40 000 of 180. this is six months how much does this is five thousand i want five thousand dollars a month on this dad i want you to smack the crap out of it all right and then you're so you're done by christmas dude chris by christmas you're starting to rebuild this emergency fund from one thousand dollars up and then as soon as you've got that three to six months of expenses then you restart your 401k oh by the way you put money in the 401k right now i took your advice and i backed it down to the uh minimum that the company matches okay that wasn't my advice my advice was stop it i'll stop it all together well i misunderstood i thought you you were saying get you know don't let free money go to the company matches no no no now when you're in the hole man you're just getting started on all this you're trying so what i'm what i'm doing is i'm not making fun of you and i'm not picking at you but i'm giving you the the the detail that you haven't gotten in the last couple weeks of exposure yet and so what i need to do is i'm going to send you the the game plan with all the nuanced detail the baby steps on steroids it's the best-selling book called the total money makeover and we'll give it to you as a gift hold on kelly's going to pick up i'm going to mail you one and you read that thing and your wife read that thing and you'll see what i'm talking about 180 minus 40 you can make it on okay 90 minus 40. 90 in the next six months minus 40 and you're done by christmas you can make it on and i just put 11 and 12 on the debt so i know i put 23 out of there so it's 43 left and so yeah you're there you're going to be there and that's that's what i would do if i woke up in your shoes the uh the great news is you've you've found a new thing here and you're fired up about it but it's about to get real that's right so imagine you imagine this this is this is the feeling you had brian when you put you spent 30 hours and you put that debt down and you got emotional that's you on the plains of africa and you're a a gazelle and you just stuck your head up and you just saw that lying in the grass and now you gotta take off running man and that's what the next six seven months is gonna be it's gonna be a all-out gut-wrenching sprint because they're all intensity that's right because they're coming for you man they're coming you gotta ride i wanna mention this i don't want this to fly by david i know this makes me sound sappy it takes a special level of courage for a grown man making this kind of money which means he's got some kind of he's got some some ego some strength his son came in and said dad i think you should look at this and most dads in this situation go shut up and he listened he just listened the approach on the call was humble it was a humble call and i want everybody out there if your son comes says hey can we just talk dad take that talk take that that breakfast take that conversation man um that took a lot of courage for a son to do and i'm proud of him but i'm proud of that dad for listening man that's cool yeah it doesn't happen very often cool brunch got up he's got a thing going on he does man i like it he's comfortable on his own skin yeah strong but making good decisions so yeah you're gonna you're gonna go do this brian and and then you're gonna call us back do your debt free scream we're gonna hear a great story from you it's gonna be awesome what i love about brian is i guarantee he's a leader and as a leader he approached this with the appropriate skepticism and then he did the math and then as a good leader he went oh crap you know what i mean that's a good leader man not that everything's perfect not that i gotta come up with some stupid excuse but i can see the data and i can go whoops we need to change course quick right yeah i don't think i did that one right i love it man i love it that's this is there's a formula here for everybody listening yeah that that you know involves life change you know bible says be not conformed to this world yeah this world's broke yep i mean normal is looking good and no money yep normal is you're driving a car with a big butt payment on it normal is you got a student loan that's been around so long you think it's a pet normal is you know you've discovered master card yes and discovered bondage in american distress this is normal normal sucks dave ramsey doesn't know what he's doing i mean everybody uses debt that's wealthy no you must live in your mother's basement and write that financial blog because the actual data of wealthy people is is that by and large they don't use debt to get there by and large they do get their homes paid off the vast majority of america's millionaires 93 of them did not inherit their money according to an airtight piece of research that the ramsey research team did and out of those 93 of america's millionaires we studied over 10 000 of them the largest study ever done the vast majority of them paid off their homes early and had money in their 401ks and in their roth iras and mutual funds and that's how they get their first one to five million now if you want a billion instead of for the first five million if you want to jump try to straight jump straight to a billion well you might borrow money out your eyeballs that's possible but i'm not here trying to create billionaires i'm here trying to create millionaires because i want families to be able to retire with dignity be able to change their family tree and be able to live well i don't need you to go broke six times in the process getting there we're not trying to write a success manual on going broke over and over again by taking all this risk i went broke once and i did all of i did that apparently for all of you so you don't have to because you can learn from my stupidity you don't have to follow it so this i this this idea that sophisticated people all borrow money is absolute statistical hogwash it's simply not true they do not now do sometimes billionaires yes sometimes they do does somebody worth 30 million dollars maybe but you got 30 cents 30 cents and you're losing some of your sense all the time and so don't talk to me about how sophisticated people borrow money you're freaking broke they do not now that's what i used to think because that's what my broke finance professor taught me if your finance professor is broke that's like having a shop teacher with missing fingers you should think about where you're getting your advice so uh be careful when someone says oh well such and such like ramsay is not sophisticated the stuff we teach is unbelievably profound and sophisticated it just doesn't line up with your get rich quick little immature self and you don't like it some of you oh well you don't have to follow it this is america you have the right to be wrong you're allowed to go do whatever you want to do so she's brilliant she's done a great job they've handled their money beautifully and they're well on their way to substantial wealth and we meet everyday millionaires baby steps millionaires who follow these baby steps by the tens of thousands every day i meet more and is it because i didn't make up any of this i didn't invent any of this it used to be called common sense it's just now marketable because it's so freaking rare it's like having a superpower i've made millions and millions of dollars selling common sense because there's not any out there and so it turns out it's like a rare commodity it's like finding a big old diamond out in the middle of your backyard look at that oh my god that's a genius live on less than you make who would have thought of that you know but that's really that's where we live instead we've got oh i'm gonna bitcoin my way in and i'm going to play the lottery and i'm going to borrow and do nothing down real estate and buy 73 houses with no money and think that ain't gonna bite me in the butt later of course it's gonna bite you in the butt later it's gonna take you to your knees it did me and it will you please don't do that stuff you're gonna bring pain to your family and then you have to do it all over again it's much easier just to do it slower and do it right it's also faster to do it slower and do it right it's easier to do a job right the first time and wealth building is no different so walk these baby steps and in 10 to 12 years you'll probably be a millionaire most of you but to the extent you don't then you have to wander off and find your own way because you're going to reinvent common sense that's just silliness and that is not an indicator that the stuff that the ramsey personalities and dave ramsey teach is simplistic or out of touch or he's such a boomer oh my god you're such a child you're just such a baby child listen little baby child here's the deal the boomers got this stuff figured out that's how i lived this long got this thinking much money jennifer is in houston hi jennifer welcome to the ramsey show hi uh thank you so much for having me my pleasure quick question uh we are on baby step uh four six and seven um we completed baby step three then my husband and i have a difference of what that looks like so would we save three to six months worth closer to three or six and does that if we like say if i lose my job today right i'm not gonna go get my nails and hair done so like down to the bare minimum or what actual six month spending looks like uh probably between these two at your stage uh and you can pick the three or the sixth month that's not the issue but then is it absolute bare bones or does it mean no uh uh known there no no hair no nails all that kind of stuff so um uh uh what's your household income um about 160 yeah and um how old are your two cars uh how old uh i just bought a car for cash of 2014 lexus and he has a uh 14 exhibition okay you got two good cars yeah you're not you're not dying on cars so here's the thing that i discovered and the reason i'm asking these things when you're broke and you're just getting started you remember those years back in the day everything's a freaking emergency because you're broke right and you're driving junk cars and you know you haven't done all the maintenance on the house so even more stuff's breaking and so it's like you're in the fact that you're broke is inviting more strain on the emergency fund later on when you've got more money and the air conditioner is getting serviced regularly on the house and as soon as there's one little thing on the roof you fix it immediately it doesn't leak and create a bigger mess and it's and you're driving decent cars so they're not breaking down and you don't wait until there's a flat tire you happen to notice when they're going getting a little bear and you go change them out early where when you're broke you have to drive them until they blow you know and so what happens is you get more margin in all these areas of your life so the weird thing is is the more money you get the less need of an emergency fund you have because there's fewer emergencies is that logical yeah absolutely and we have a two 15 year old and a four-year-old and then the only other factor would be that um i'm wondering if we should pile it up a little more i hate my job i've been looking at ken coleman's stuff um and my performance has not been where it should be just because i'm i'm just making myself get up and go to work every day um should we add a little more to it yeah that's not an emergency okay that's a transition if you want to set some money to the side for job transition you can do that feel free okay feel free set your 10 or 15 20 grand over there for job transition but let's not confuse that with the emergency fund the emergency fund's for emergencies this is not an emergency this is a problem we need to fix right christmas is not an emergency it's always in december it's predictable it's predictable that two years from today you're not gonna be working at that place god i hope not and jennifer listen can i can i you didn't even ask this can i push on you for a second please do please don't sacrifice your dignity and your respectability in your work ethic and say things like my job performance is slipping just because i don't feel like going anymore if you're still employed they're still taking their money show up and give a thousand percent and then when you're looking for jobs give a thousand percent on your job transition but you will it will keep you from walking six inches lower right with your head health you will walk with your head held high your chin held up you will clean out your desk when you get that new job with a smile on your face yeah don't you're not a person that mails it in no that's not who you are yeah so but yeah go ahead and make the transition and set some money aside for that and if you want to um what's happening is is that transition is scaring you and that's what's making you want to put the emergency fund on up and so put 25 000 over there right quick in the next few months to make this transition that's not that's a transition fund it's not an emergency fund and then you then you won't be worried about your emergency fund anymore because your emergency fund probably just fine i love that idea dave so that's you would a transition a new baby coming you need to get a new car none of those are emergencies those are just we need to have a sinking fund that we create and save up for that yeah you know what the problem is and it's not her situation but it's just all of us in america we were just taught to have a savings account that's it that's exactly right one and you know what a savings account is it's a put and take account you put money in there you take it out put money in there take it out and buy bass boat put money in there fix air conditioner put money in there put stitches in the kid's head put money in there it's a put and take put and take put and take and so it's all this stuff is combined in this one general account that that you always watch it and it just never seems to do what it's supposed to do because no one knows what it's really supposed to do it's never enough or look at all that money i got right yeah and when you separate out your savings and you say every savings dollar has to have a job a mission an assignment okay this is you this one's job is transition this one's job is christmas this one's job is car replacement and this one's job is emergencies and don't confuse them i love that buying a bass boat is not an emergency there is no situation ever on planet earth in which you can describe a bass boat purchase as an emergency it's not on the list i i can emotionally get there but intellectually we're all laughing right now right and so you know that that's i was forced to buy a new car no you aren't they didn't have a gun you chose to buy a new car and so th these are the things but that's the reason is it and it helped me a ton uh because my nature's not a i'm not naturally a saver it helped me a ton to say these things have a goal because i am goal oriented and once i have something with a goal then ding ding ding ding i can do it i love i'm writing that down every savings dollar has a job too different than your light bill or your food or what every every dollar you are saving has a job as well what we figured out a few years ago is there's 73 000 things coming at you that wants your money and then when you get some money because you went to work or because you get a lump sum or because you sold your rental property or whatever it is you get some money you go i don't know which of these 73 000 do i do how do i do this and people become overwhelmed and they do nothing and then they end up doing something stupid with the money instead of actually being intentional and having a plan so 20 some odd years ago almost 30 years ago coaching families we determined that you needed a very specific clear path and we developed that over many years in actual practice it was not theoretical meaning tens of thousands of families that we walked with to develop these highly tuned baby steps and baby step one comes before baby step two it's not an accident that two is after one and that three is after two and that five is after four and that six is after five and that four is before five these are not accidents this is a highly developed highly uh processed series of concepts that are have proven to tens of millions of families in america now to be the shortest distance between where you are in wealth now you can go make up your own freaking plan but your plan got you where you are and so you need to decide you know you don't need to call rachel and anthony and christie and deloney and me and coleman and ask us if baby step three should be after baby step two it is that's why we called it three and you don't need to change it it you know it's a pretty and it doesn't really change there's it is the shortest method to get there shut up and do it okay tell me this do you feel like you've heard more of this happening in the last five years the last hour the last few years versus over the last 20 because i feel like more than ever today the culture it's a it's it's a little bit infested with yeah but this is my snowflake i'm a snowflake i'm unique you're unique but the law of gravity applies to all snowflakes i know but i'm just saying it did do you see it culturally like do you think that that like do you do you see this resistance or have you always always it's always been it's a natural because it's your unique i mean people say yes because what happens is the very confusion of the 73 000 things you can do with money yeah you have to bring it back to the table continually yeah until you actually believe that there is logic and data and decades and tens of millions of lives that have done it the right way and gotten the positive result until you submit yourself to the plan you know it's like hiring a personal trainer and he says well you probably need to eat less yeah but i'm not going to do that i just want to do the workout you know well no you got to eat less fat boy you know that's what i'm i'm looking in the mirror i got a keg he's got a six-pack why am i arguing with the six-pack boy about nutrition when i'm fat why am i arguing with him he told me what to do he i hired him i paid him to tell me what to do and then i've got a better plan and then i look at my belly and go well how's that a better plan you know this is what ought to go through people's head yeah it's true it's true or the trainer says do more lunges i'm like i don't want to do this i don't like leg days i don't like leg day i don't think i want to do that yeah i think i'm just going to pick out i'm going to do my version of your plan that works because my version has got me where i am it's the dumbest thing ever well it's not the dumbest thing ever it's because i know why because it feels good in the moment to do what you feel like is safe to do and stepping outside of what you feel like is safe and doing a plan that makes you uncomfortable because you're having to change that's why you know oh yeah it's comfort zone crap yeah it is exactly what it is but you have to decide you know you have to decide did your comfort zone get you to where you are yes do you like where you are no then get out of your dadgum comfort zone you look great though i've lost 37 pounds because i looked in the mirror and i went fat boy you got to do something that's shape talk i did i did look at myself joined alone it caused me to it caused me to lose weight though i mean you just you know your self-awareness is part of the process right oh my gosh this is the ramsey show hey if you enjoyed this click here to watch the next episode with some of the most shocking calls from the show

Channel: The Ramsey Show Highlights

Views: 891,772

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, How to Take Control of Your Money! | Ep. 1 | The Best of The Ramsey Show

Id: w_RKtck8XCA

Length: 41min 10sec (2470 seconds)

Published: Mon Aug 15 2022