Millionaires Share Their Financial Successes And Fears | Ep. 6 | The Best of The Ramsey Show

[Music] hey george campbell here co-host of the ramsay show and i'm back with another episode of the best of the ramsay show every day we talk to those who are millionaires or who want to know how they can be one someday so in this episode we cover toxic money myths investing for the future and how to talk to your kids about wealth nathan is in richmond virginia hi nathan how can we help hi how are you doing better than i deserve what's going on okay so here's what i got going on um i'm 25 years old i'm getting money from my father who recently passed away it's going to be over 200 thousand dollars i'm not the best in money management i've heard the saying it takes money to make money should i invest this money into a business should i save this money what should i do if i want to become a millionaire by the time i'm in my 30s [Music] how long does your dad pass away nathan um he passed away a couple months ago i'm sorry y'all close um we were pretty close he had dimension alzheimer's so i didn't see him um too often because he was in a assisted living facility sure and i lived across the country so he was in arizona with my sisters and then i lived over here in virginia so you're getting 200 000 cash it's not over that it is just over that yeah i'm not sure the exact number i mean it's just it's not it's not a piece of property or something else it's just it's a investments or cash that's going to come to you liquid that you're going to do whatever you want to do with it yes like my brother's going to hand me a check gotcha okay and uh what do you make a year now so a year i used to make around i'd say 35 000 a year okay all right so here's what i would tell you um you're calling very very wisely to start to uh gather some wisdom about something you don't know anything about you have never driven a car before and someone just gave you car keys right cool and you you go well i hear these things go fast right and so uh you know that and yet if you remember the first time you got behind the wheel of a car uh it was both freeing because you could now go places and control your own destiny and it was uh terrifying and if you don't have both of those feelings with this process you're not wise right okay so uh i'll start with it takes money to make money uh is not a true statement that's a statement that broke people say as an excuse to not become broke people can you make money using money sure but actually the vast majority of people who build wealth do not build it because someone handed them two hundred thousand dollars they built it because of their habits and their character okay so that's you so here's what we're going to do we're going to just what number one i tell you to do is just slow way down uh i would want you to move along the spectrum from exciting to boring over towards boring your job is to manage this money your job as if it's someone else's money and you're managing it for them your job first is not to lose it your job second is to maximize it but most people when they get handed the keys to the car step on the gas and meaning they're they think their job is to maximize it and they end up losing it so people yeah people that end up in your situation get money lose it very often because they make the mistake of they think it has to be exciting it has to be sexy it has to be wild has to be crazy because if i don't maximize it i'm doing something wrong it takes money to make money we all know that and so i'm gonna invest it over here and i'm gonna do this and i'm gonna do that and i'm gonna do this wrong slow down number one rule nathan don't put money in something you don't understand don't put money in something someone else tells you is a good idea and they sound like they're really smart people around the money business and i've been around at 40 years there are a lot of enthusiastic ignoramuses they mean well but they're dumber than a rock and they're excited about and they're excited about their stupidity and they will put you in stuff they'll put you in stuff man and all your broke friends also got an opinion already don't they yeah and here's another piece too i started a meat company but the thing about it when i started this meat company it's not my passion because i was so money hungry to where i let money kind of consume my mind of oh i need to make my i need to make money i need to be this by the time i'm on this agenda i chase things that weren't my passion and then i realized as i got into it i'm like shoot i don't want to do this anymore okay so let me let's take a couple things number one we can work on your career and that would be a good use of a little of this money if it got you into your passion i'll hand off to ken in a minute and let him work on that okay but then thing two uh here's a rule if you were to invest this money and not touch it in good growth stock mutual funds and if it made 10 rate of return on average in seven years it would double you would have 400 and you would be what 29 years old right no how do you say you're 25 25 yeah yeah okay so you'll be 32 years old and fi in seven more years it would double again and be eight hundred thousand and in seven more years it would double again and it'd be a million six and that is a boring never touch it investment program you're probably not gonna do exactly that but i want a little of that in the formula here my brother okay where you go have a life and you pretend you don't have this money and you let it grow and double and grow and double and grow and double and so here my my last piece of instruction before ken helps you on the career side is uh i want you to go to daveramsey.org to ramseysolutions.com and click on smart vester sit down with the smart vester pro and they will teach you about mutual funds and then you can decide how much of this needs to go into your career changes and how much of it needs to go into mutual funds and that just sit there and just double so ken yeah real quick question here is the meat company that you started is that what's getting you the 35 000 a year yes all right and so you don't want to do that what do you want to do i know you got some ideas or one clear idea what is it that you really want to do so i really want to do fitness um because even in the times when i was at my lowest i always stuck to it and it seems like it was like introduced to me you know at a young age so is that uh is that a fitness coach trainer is that what we're talking about so i want to compete in shows and i want to launch um i want to be able to get a following through the instagram and be able to launch a business online and help people um reach their fitness goals yeah online because everything is online now sure um and also you know even in person but doing it online it gives you that freedom to do the travel all right so let me make sure i heard this right you want to be a fitness competitor and then eventually develop some type of online and in-person training business that's a two-parter am i right yes okay so here's the deal i'm gonna caution you on this being a fitness competitor is a whole different ball game we only can make money when we win so if that's the first goal you're going to need a day job so you got to sit down and go now what's the best strategy here's what i would challenge you to think through um i would you're clear on what you want to do that's stage one of my seven stages stage twos get qualified so you need to answer the question what is it that i need to do to get qualified to train people online now online there's no technical qualification you just gotta have good content that people say all right i'm going to watch this guy and i'm going to train the way he trains but if you want to do it one-on-one there's some qualification that you need how much is that going to cost you how long is that going to take we're going to have to have a day job still in all of this process so if you've got the meat cup personal trainer it could be a personal trainers where i would go into so get qualified to do that get in the proximity that's it start doing that and then compete and any money we make competing and the online business it's going to grow over time i would get in the field work for a gym um and have somebody else pay you to do the training so that you can move from meat company into this job and not interrupt the income because dave we don't want him to touch this i want you i 200 you to take twenty four thousand of the two hundred thousand and set it aside for a year's worth of two thousand dollars a month yeah i want you to pay yourself out of a little savings account two thousand dollars each month for one year during that year i want you to develop a real group of one-on-one personal training clients that pay you well and you use that money to eat with so ken this is an interesting and distressing part of our world today we did at ramsey a couple of years ago the largest by far airtight research the largest study of millionaires in north america in the united states of america ever done all the details where they come from what do they think about did they inherit their money what are their careers what's their marital status what's their race creed color whatever everything we could figure out and trying to find a and trying to figure out okay what does it take to become a millionaire in america today a millionaire is a million dollar net worth for those of you don't know it's not a billionaire a billion is a thousand million it's a lot more if you have three thousand dollars you're closer to being a millionaire than a millionaire is to being a billionaire as an example so it's not it's not private jets and seven cars okay that's not a millionaire a million dollar net worth is not that much it but it is more than most people have there's about uh 17 million millionaires in america and that's what you own minus what you owe equals your net worth your assets minus your liabilities is your net worth so if you have no debt and you have a million dollars in your 401k you're a millionaire okay that's simple that kind of a thing all right so we post on instagram yesterday and this is what is societally distressing that from this study not a feeling that we have we didn't ask your broke brother-in-law his opinion we ask real millionaires ten freaking thousand of them who they are where they come from and one of the many conclusions we drew from this was the top 10 career fields that we found according to frequency within the study so who what career field did we find most often second most often and so on the most often we found was engineer the second was an accountant or cpa the third was teacher the fourth was management the fifth was attorney so not even making the top five is medical doctor by the way there were six number six but they were not even in the top five and we post that on there and instagram and facebook proves once again that humanity is full of morons i mean if you read comments after articles or comments after posts like this you understand why some species eat they're young people are dumber than a rock out there oh yeah a lot of mouthpieces some of you listening are dumber than a rock i mean i never heard this is ridiculous so here's the thing okay we've done detailed scientific research that proved that the sun is hot and we post it yeah on instagram the sun is hot some of you morons will disagree with that yeah just because you think you have a right to and you should really stop before you post something because it makes you look stupid okay was that unclear well probably i i felt like you could have had a little bit more enthusiasm for what you were saying i felt like it felt like it lost a little fervor no i think you're absolutely right yeah this is data and you know what's funny is like people they want to argue like we're duping people yeah like what we're just saying yeah right dave ramsey teachers aren't really making that kind of money not where i live i'm a teacher teachers can't be millionaires no way teachers can be millionaires no teachers should be on there where are the nurses where are the nurses well you nurses get your butt in gear and i guess you'll make the dadgum list oh my gosh well what they're missing what these brilliant mouth breathers have forgotten in this post is that it has nothing to do with the salary has everything to do with the way they live now engineers certainly can make way more money than a teacher but it is they have lived on less than they make they have saved they have invested they've walked the clear path the baby steps their baby steps millionaires and that's what they're missing here they think oh i know what a teacher salary is you guys are just making this stuff up as if you're into cleveland i'll tell you what all five students share in common all five professions are systems people that's right they all work systems yeah teachers work a teaching plan they have a lesson plan yeah they work a system and they they they if they somebody gives them a lesson plan they don't go make up their own yep they they follow the lesson plan and engineers they don't make up their own thing the bridge would fall that's correct they have to follow the system they have to follow the processes attorneys have to follow a process called the law you know you don't get to make it up you have to actually adhere to a process all of these people adhere to processes for a living and they take that same part of their personality and they apply it to their money and voila they become a millionaire so what is the data on teacher income well right now the median income in the united states is 60 thousand dollars so now before some of you folks start firing shots at me on that i said median you know what a medium is anybody know if you've been in a good teacher's class you would have known it's your law of averages you just run your averages so there's no average is different than median yeah i know but i'm just saying if you if you look at the across the board of what the median salary is for a teacher it's 60. now that means in some districts in the united states like for instance i got a friend who's teaching high school in new york upstate new york he's making over six figures so this is across the board you look at the median and now we go okay this is what we're looking at in the united states but again it is about how they live on less than they make it's not this study wasn't pointing to how much they make it was how much they keep and by the way there is one other correlation between all of these millionaires they love their work yeah hi 80 percentile range eighty percent they lose so let me help you with this if you invest from age 30 to age 65 in a decent growth stock mutual fund 15 of 60 000 you'll have 4.8 million dollars yeah there it is now you can also fire off a bunch of comments about that but that was math you don't really get to negotiate with math yeah that's how math works it just is or it isn't that's right you don't get to make up your own version that's not enough and so if that's so if one if you only are one-fifth as good as we teach right i mean five million bucks 4.8 million right okay you would still have one million dollars right and from age 30 to age 65 but dave that's all too clear cut and simple for the keyboard warriors there's got to be more complexity they got to tear it apart it's got to be a game and that's unfortunate that's the sad part the sad part is is that we have a portion of our culture now who rather than fix their life and address the person in the mirror's deficits instead wants a narrative that declares them a victim there it is that can't possibly be true dave because if that's true i could do it if you're if your study was accurate what do you know about my study you just you just if your mouth was shut you wouldn't be making noise oh my god but dave they're mouth breathers so the mouth can't be shut seriously people you really should abstain from the comments section reading them or commenting on them oh my gosh there's a reason that you and i both get so visibly frustrated with people that have a victim narrative and insist on spreading their victim narrative we know from having worked with thousands and even millions of people that most anyone that follows a proven process can go get a great job can get out of debt and build wealth can have a good marriage we know that people that are that choose to control their behavior in spite of the negative influences from the outside in spite of bad things having happened to them and we all have challenges but in spite of the challenges we know that people can create for themselves carve out for themselves a good life if they bother when someone posts a negative narrative that says oh teachers can't do it then someone believes that or you're in an echo chamber with a bunch of people that says teachers can't do it then god help us teachers believe they can't do it and we know that that's not true and you've then limited someone's belief in someone's future and you've brought harm to them and we love people and we love people that so much we want them to win and anything that keeps them from winning including you debbie downers out there we're you're going to be at the tip of our sharp tongue yeah yeah i agree with that and let me just say this as much as we will take shots at people that that are constantly negative and cynical i i do even you could do it if you quit doing that i feel sadness over that because because you've bought in some form or fashion a false narrative you have had some bad stuff happen to you maybe somebody did something maybe you made a mistake and you did something dumb that doesn't disqualify you from being a victor i've never read a biography in my life and i've read a lot of them uh where the the story the person in the story that we're reading about always did everything right had no hardship had no self-inflicted wounds had no disadvantages so i absolutely agree with you we get fired up on this because we're in the business of hope we're in the business of giving people hope that they can be who they're supposed to be they can do what they want to do um and yeah it really makes me angry when people just go nah that's all a pipe dream and uh yeah it irritates us and we live in a world today where people really are influenced shockingly by the comment in the comment section by the negative yeah and yeah that's why negative it fires us up the negative the negative good here's my deal if you really believe that then why do you feel like you got to share that with everybody else i mean you you have the right to believe and say and i will always fight for liberty to say and be negative and your that's what you want to be great but don't bring it around the rest of us yeah old country's saying if you ain't got something nice to say don't you say nothing at all i mean life is too short pastor friend of mine used to say if it's not helpful hopeful or promotes healing you don't need to say it that's good yeah it's not helpful hopeful or promotes healing yeah you don't need to say it yeah and um i couldn't i could take it to that advice occasionally too i just called a whole bunch of people stupid so but i think that might have been healing though i think it was it was it was a little therapeutic for both yeah me and you were healed by it lauren's with us in richmond virginia hi lauren welcome to the ramsey show hi dave thank you so much for taking my call god bless you i love what you do thank you love what you do how can we help um we are a happy happily married couple 25 years um just about to be empty nesters um and we feel like we have missed the financial boat uh so to speak we um we started out uh ready to invest around uh 2001 when the tech crash happened and um so we didn't invest in the stock market and things like that because we're concerned we just saved up enough money and we're getting ready to invest when the 2008 real estate crash happened and again we pulled back and did not invest so we just stayed put and we just kept saving and now all we hear is cash is trash and the american dollar is in trouble and we don't we feel like we have missed the boat and we're concerned now that maybe we missed a way to help us retire how much do you have in savings two million dollars okay i'm i'm i'm absolutely amazed and so all of this money is just money you put in there because you've never really made any money on your money no we've hardly made any we have self laddered cds and and done some bonds but basically your rates of return have sucked and you still put to got to two million dollars and and you're still afraid to invest yes okay but you have two million dollars so how did you miss the boat how big a boat were you wanting to get on i was going to say that's a great one okay but we're just we don't know now that our kids stuff hasn't been paid for college and things like that we just never took any time to do anything or plan for us as much as just keep our head down and work hard and now we picked our head up but did you miss you missed out on a bunch of returns that you could have had four or six million instead of two million but you still have two million dollars so i don't think we can really cry river here okay but when you say four or six million that makes me really sad but i there's no way to fix the power now all you can do is think about the future okay so okay uh let me pair it back to you what you said to me every time you got up the courage to invest you found a negative story somewhere that caused you to not do it fear yes yes and now your new fear is the american dollar is going to pot that's your latest one yes that's your latest one yes and have you noticed that your other two fears didn't come true yes i don't like roller coasters maybe that's the problem yeah but the roller coaster even even with the roller coaster it you wouldn't have lost all your money you would not have been broken homeless uh that the 2008 real estate crash actually had almost i mean in the stock market crash it came back and you know it went all the way down to 6 300 and it's at 30 000 a day and so you know you missed out on all of that yeah it's a ride but you know you're going to either uh not have you know if you had ridden the roller coaster you you know you might have had eight million dollars yeah and so even if the roller coaster screws up it's got to really screw up to be to en to end up with nothing you follow yes and so i don't think that i i personally am not of the belief that america is coming to an end she's got her problems we have a whole truckload of idiots on in both sides of the aisle in uh dc and thank god it is not up to them it's up to people like you and me out here that get actually get things done as to how this nation runs and whether this nation works and whether we learn to treat each other with some respect out here uh and so you know this all this craziness on the news cycle is just out of it's just nutty everywhere so but all of that said i don't think that well i'm 60 i'm older than you and i have 100 of my retirement in mutual funds uh and a whole bunch of our wealth more than that in uh in real estate that i paid cash for because i think in both cases they are going to go up in value dramatically more than cds will go up now are they going to go straight up no they go up and they go down and they go up and they go down and can you stand the ride so let me give you an exercise or two okay because here's the thing okay there's two kinds of fear there's fear that keeps you from touching a hot stove or playing in traffic because those things will get you hurt that's good fear it protects you the other fear is false evidence appearing real and that's the fear you've been operating on and i know that because for instance if you will pull up just go visit with one of our smartvestor pros and ask them to show you some examples don't buy anything just go over there and start to learn ask them to show you examples of during these very volatile times what did mutual fund a mutual fund b and mutual fund c do and follow what they did and say okay had i invested in that through what i feel like were very turbulent times i don't like roller coasters quote here's the roller coaster ride i would have signed up for i think you perceive it to be the world's tallest coaster and you're going to go oh that's kind of like the kitty park when you actually look at the actual history and the actual math listen i don't like starting over i went broke i don't want to start over so i'm not investing in stuff that's high risk either i you know i don't i don't like extreme volatility i don't like high risk i don't personally invest in any of those kinds of things so i don't have money in bitcoin i don't play the roulette wheel in vegas i don't run up a bunch of debt trying to make money i i do very low risk stuff and so i think you need to learn about the historical data on some actual real mutual funds and you will be amazed at how much less the risk was then your emotions are perceiving it and i think that'll help set you free because here's the deal you're gonna be fine you got two million dollars you're gonna be fine congratulations you're amazing that was an amazing task that you've accomplished but if you keep in mind this if it's invested at ten percent rate of return instead of one it's going to double every seven years so when you're 64 you're gonna have go two to four to eight oh and when you're 71 it's 16. if it's at one percent it's not even going to go up a million dollars between now and 74. 71. so you're either going to have 2 million or 16 million between now and early 70s michelle is with us in cleveland ohio hi michelle how are you hi dave i'm good thanks for taking my call sure what's up um twofold i have um i got an esop distribution from a company that i worked for and it's about 1.4 million sitting in a schwab account it's an ira and i'm with everything that's going on i'm afraid about having all my eggs in one basket and my husband and i are both retired i'm 61 he's 67 but we still have a mortgage and a home equity line of credit um we don't have any credit cards we're debt-free in the credit cards and up until last week we had two paid off cars but an engine seized in one of our cars so we had to go buy a car this week um my question is whether to give them what's going on in the world and you know the great reset i was just watching i have glenn beck's book and i was just watching your program that aired today um i'm just a little afraid obviously of having all my eggs in one basket and given what's going on in the world if we should just take i think there's about 160 000 that we could take out in cash and just pay everything off you should do that anyway but not because of the fear of what's going on in the world it's a smart financial move you sure you're you've got a million dollars you should not be carrying around a home mortgage with a couple hundred grand you ought to be paying it off okay well that was that was my thought process too but not because not because of the great reset just because it's smart to pay off your mortgage okay okay then and same thing never borrow money on car again you're a millionaire come on girl i know i was planning on paying it off next year how about just never borrowing on a car again you're not a broke person you're a millionaire now with the rest of the money with the rest of money what i would do is sit down with a smart vester pro click ramsey solutions and click smart buster pro and find somebody in the investment business that can help you do a rollover and get that diversified across several types of mutual funds and give you a little more safety yeah i'm with you i would not have it all in one account but i'm not sure what you've got with schwab there necessarily you may not really be in one account but i'd be in several different mutual funds with that much money and i'd be debt-free you could borrow money on cars you're a millionaire janelle is in cleveland hi janelle welcome to the ramsey show hi dave hi george can you hear me okay absolutely what's up um my husband and i are 65. our kids are 32 and 30 and i don't know when to tell them how much money we have now now well the only reason i'm hesitating is because it's 1.5 million yeah so are they are they are they misbehaving oh no no why do you why do you think this knowledge will bring harm um probably the way i grew up i didn't know anything about my parents finances until i was gosh probably my dad died 55 maybe i mean my parents just never talked about it i never asked them right yeah lots of parents don't talk about money or sex and then when their children grow up they're surprised to find out they had both well they're both married and my daughter is having a baby in about three days so i think she knows about that one down one to go i wasn't talking about her sex i was talking about yours but yeah i know oh my gosh yeah i i think you sit down now you know when i had this conversation with ours they were just coming out of college i didn't want them i wanted them to have the maturity to be able to handle the discussion the emotional and the spiritual maturity and uh we're a family of faith and so the conversation started with this as for me and my house we serve the lord and so the information i'm getting ready to explain to you is not uh is not you hitting the lottery because you are not inheriting the money you're inheriting the responsibility to manage the money for god and that's how we started the discussion and that's still how we have the discussion to this day they've yet to inherit any money but but they know they know what our wealth is in detail and they know exactly what's going to happen to every penny of it uh we have a big meeting once a year with our leadership team at our office and with our kids and we go over the real every piece of real estate we go over uh you know any of the wealth that is there and exactly how the we'll remind everybody how the wheels and the trusts all work because it's kind of complicated and um you know we just have a review of this and this is a transaction so long ago they got past the emotions of feeling like they hit the lottery well i guess i'm wondering why why why do i what's the purpose in it because you can teach them to have the proper spiritual and financial stance on this while you're alive otherwise you don't know what the reaction is going to be and if you get a negative reaction you may want to adjust some of your inheritance hmm okay because we i just yeah we don't leave peop money to people in our family if they're misbehaving because we don't want to finance misbehavior with god's money oh no no i wouldn't do that i know but how about their how about their son-in-laws or our son-in-law same thing listen if it's going to affect the if the information that this money is there is going to affect them how much more do you think the money is going to actually affect them when it comes out of left field and there's no time to emotionally process it oh by the way we're also processing the death of a loved one at the same time so the so you think the son-in-law should be included in absolutely they are at my house because they may they're they're they're family they're not necessarily going to actually personally get the money but their spouse is and so you dadgum right and you get to speak to all of them about what this means to you and and how we you think they ought to view this and that we're not going to allow you to feel like you can put co push the car up into neutral because this is coming you know we can have all kinds of good discussions it's all kinds of teachable moments amy is with us in dallas hi amy how are you i'm doing great mr ramsey and uh rachel i have to say i love that you're on because i too like to spend a portion of my entertainment budget at the crap stables even though it doesn't improve this is not the way to start out the call amy is dying i mean you just you started out in the hole okay and now you gotta dig out amy could have said conspiracy theories craps or love is blind and i would have been like this is my girlfriend i am on baby step seven i am a i'm 33 years old um i think i have a pretty good net worth of around two million i don't i so i hope i'm hoping i'm getting better on your graces in spite of spider your problem with the craps okay yeah um so i i'm an engineer my husband's an engineer we're very process oriented people we're just kind of struggling like we we just read the legacy journey and like you know like what our next like goal should be we really don't want to be landlords no offense i'm not offended but um so and now right now we're just you know we have pretty substantial raises this year so we're going to make 30 000 more than we made last year and it's just it's just like it feels like there's just more money coming in and we're like you know i guess we're just saving more yeah well you're doing great you've done such an amazing job congratulations when you are the everyday millionaire of uh our babysitter's millionaire of both sure yeah two engineers i mean everything you're like the classic except the fact that you're 33 yeah way to go amazing yeah so your biggest problem is it's just um you're overwhelmed with prosperity in a sense right yes and and obviously we're we're christians and and we give and i i even put in my budget random giving above the you know 10 like until it's just and now i just feel like it was just like our last goal was paying off our house right and then there was like making sure our kids college fund is set and we don't have to touch it forever and it's like now what okay yeah i mean it's i mean at this point i mean you really we always say the three things you can do with money you can give it you can save and invest it and you can spend it and so you need to be doing all three of those so i love that you upped your giving uh because that's a big part of this right that you live like no one else so later you live and give like no one else right so uh having that flow out is gonna be it's gonna be amazing i mean like you're gonna run into things and god's gonna put things in your path that you didn't even realize was there and it's gonna come up and you're gonna be able to write a check or you're gonna be able to help someone in a significant way which is just so fun and so you're gonna get to experience that on a new level uh and then yeah i think continuing to invest so if real estate's not something that you're like oh you feel you know great about or you guys want to do um obviously just even opening up a mutual fund talking to a smart investor pro and continuing to to put money in just investing uh is something that you could look at but if you guys i don't know if you have an interest of like i don't know you want to i never know what you think about this stuff but i don't know i don't know yeah okay that's the spin category so i want you to up your lifestyle for sure yes and you all enjoy something that's our problem okay let me tell you let me tell you what's happening because it happened it's happened to me years ago um and i watch it happen when i'm working with people hit these uh the baby steps millionaire's goals and they get where you are okay what happens is there's two things one is you had this hard concrete goal and it was the end of the race and you broke through the tape and you're like okay i need to i need a goal because this feels like i'm just kind of floating out here that's thing one that happens this sense of disconnect because you were so connected to and driven towards a goal now there's nothing and it's just floating and that's very disconcerting the second thing that happens is and this is more pronounced than than that one that one you do get over fairly quickly just by getting another goal but the second thing that happens is when you didn't when you haven't been around this many zeros you emotionally it takes a little while to get used to it i mean i'll give you an example around here i mean the ramsey organization is several hundred million dollars a year in revenue and so we spend more on copier paper than i used to spend than i used to make in a year you know we spend more on coffee than some people make in a year you know i mean it's just nuts just because of the scale right and it's hard to get used to even today and i've been doing it for 30 years you know so but today i look down at our profit loss statement and i see the bill for coffee and i'm like jeez you know and it's an emotional experience i'm a kid from antioch tennessee we spent that on coffee you know and it's just kind of weird it's it's an emotional thing so it takes a little while for your emotions to catch up with your math for you to get used to buying something that cost 30 000 bucks and you don't even feel it like most people buying a candy bar okay because that's the position you're moving into you're going to be able to go and buy an item or a thingy of some kind a trip whatever for your just to enjoy just to consume that is a large amount of money compared to the way you grew up compared to what you've always been up to this date but it's a small amount of money relative mathematically to where you are and so you still have this like oh my gosh you know and so i was with a guy i'll give you an extreme example of that okay i was with a guy not long ago who made 15 million dollars last year he's he's killing it okay and actually would know his name if i said it so i'm not going to say it but the uh but he drove up to my house in a car that cost 300 grand and we were having this exact discussion because the car is freaking killer believable car you know and we're standing there looking at this and he goes man i grew up in dot dot dot and he goes i can't even i can't get my head around the fact that i just bought this car and i just drove it up here in your house he goes i feel like kind of dirty like i did something wrong well let's do the percentages 300 grand as a percentage of 15 million okay it's like buying a thirty thousand dollar car if you made a million and a half a three thousand dollar car if you made 150 000 it's the same ratios right so did you do something wrong no i didn't you know he's not out of line it's a small but people say stuff like no one needs a car like that well for him it's like buying a biscuit you know it doesn't show up it doesn't move the needle and so that's where it is with you your emotions are having that same kind of a thing when you invest a large sum give a large sum i mean the first time i gave ten thousand dollars to something my mind was blown i was like whoa you know and and because it was the most i had ever done and it was not an emotional amount i was used to and so that's what you're experiencing so expect to feel disconnected until you have a good goal and expect for it to be emotionally disconcerting for a little while as you lay out and say we're going to spend x on enjoyment we're going to spend y on investing and we're going to spend z on giving and you're going to increase all of those and they're going to be uncomfortable yes so amy i would say like my husband and i once we we all we always kind of have a goal we have a goal within a 12 24 month period that we can hit uh whether it's a new car or we want to do you know a certain trip or i don't know put it in a pool like i don't know what it is a house was a big one for us so in 2019 is when we moved in but that was a goal we had for years to do that so find the thing you and your husband i'm assuming i'm i'm going to assume you're married i think you said that but they shouldn't have to engineer that's right that's right um that you guys are excited about like have that goal that you're yes putting money in a mutual fund all that but that goal it's there's still something energizing that you have to be able to shoot for so find something that you and your husband agree like that's fine whether maybe it's building your dream home like i don't care what it is but there's something out there that you look at and you guys are continuing to work and be intentional and then on the lifestyle side i would i would force yourself force yourself to spend a certain amount of money every month just to get used to it because you can and you should be able to enjoy it too that would be very nice and on the generosity above the tide the generosity above the tithes should go up all of these are going to be a little uncomfortable because it's your first time to play with numbers this size it's emotionally like looking at the coffee line and going what hey if you like this episode click here for the next one all about toxic family situations around money

Channel: The Ramsey Show Highlights

Views: 297,166

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, Millionaires Share Their Financial Successes And Fears | Ep. 6 | The Best of The Ramsey Show

Id: AXHPhKa7GYQ

Length: 43min 53sec (2633 seconds)

Published: Mon Sep 12 2022