The Fastest Way to Become a Millionaire (with Dave Ramsey)

[Music] hey you guys welcome to this episode of the rachel cruz show okay so we've been talking about the baby steps and we're we're towards the ends of them you guys so i thought i would bring the man who came up with them dave ramsey back on welcome back thank you so glad you're here okay so we have been talking about again the baby steps and how this is the proven plan to help you not just get in control of your money not just to get out of debt but ultimately to build wealth and your new book baby steps millionaires is out it came out yesterday yeah congratulations thank you so great and this really walks through the wealth building aspect of the baby steps which is where we're at right now in our series here on the show and so that is baby steps four through seven so baby step four is funding 15 of your income and to retirement baby step five is funding kids college baby step six paying off the house early and baby step seven building wealth and being extremely generous so i love that this is like the exclamation point at the very end because up until this point of the baby steps every step one two and three you're you're working to save money in your emergency funds you're getting out of debt all of it right so you're you're focused on that now these steps you kind of do all together except for baby step seven and so when you look at this plan overall what made you come up with it how did you kind of come about okay these are the baby steps because i feel like a lot of people in the financial space have changed their strategy over the course of their career and this is tried and true to the point that i even should we tell them i even tried to change baby step one years ago during one of my book writing processes and i was like can we change baby step one where they save more money and you were like no no no we're not changing the baby steps i did i asked to change sweaty steps but you have not you have not shifted from it so talk through like the process of creating those and why they still work even today the beautiful thing is is that these days we're meeting i mean with almost 10 million people having gone through financial peace university and uh eight and a half million total money makeover books sold i meet have met tens of thousands of millionaires because they followed this yeah like tens of thousands it's not like two or something i mean i just meet them everywhere i go baby and they are baby steps millionaires that's why we ended up doing this book because we want to make sure everybody understand because here's the way the whole thing started i didn't start as the get out of that guy um i started as the i want to be wealthy guy and i want to show other people how to be wealthy and then i figured out the fastest way to do that was get your money back instead of giving it to other people and so instead of paying everybody in payments like a guy was talking to the other day goes we just got rid of all our payments and our payments were fourteen hundred and eighty two dollars a month he goes if i just invest 482 dollars instead of giving it to toyota motor credit and mastercard and chase and whoever else than sally may then i'll be wet rich well that's that's how it all started so baby steps one through three were how uh to get to be an investor and you get to be an investor you become wealthy and but everybody wants to jump over and start with being an investor so that's that's why we laid it in this and you can't be an investor when you have any money so baby step one is thousand dollars in the bank two is get out of debt because that gives you all your money back your most powerful wealth building tool which is your income then you build an emergency fund to keep little things from coming along uh little emergencies from knocking you off your investment plan but the whole thing is to set up baby step four the investment plan and five is a subcategory kid's investment plan for the college yeah and they get the house paid off also which then accelerates it one more time because i don't have a house payment you just invest a house payment you're gonna be so rich and unbelievable right right you know so that's why and then so four five and six are intentional long-haul marathons one through three are gazelle intensity fast knock it out quick sprints and so you move from that and four five and six are simultaneous as you said so here's the thing average household income in america 60 000 bucks you invest 15 of that from age 30 to age 65 you're gonna have five to ten million dollars in your roth ira race and so if i'm 10x wrong you're still a freaking millionaire you know and so this causes you to be wealthy is what it amounts to but it's the it's the steadiness and a substantial amount of money being invested that you can't do when you're in debt yeah so i know most people watching are in baby step two yeah a lot of people most people in america are in baby step two yeah you get in got to get out of that stage right but the reason we keep bringing up baby step four is this why you're doing it it's why you're clipping coupons why you're not going out to eat why you're not going on vacation it's why your gazelle intense so that you can get to here yes and you get to hear so that you build wealth so that you change your family tree and you can be outrageously generous but here's the thing the math on this is slam dunk i mean it's not even a question of whether you're going to be there or not if you follow all the way through so that would be my question is that for a lot of people and and even just talking to them even here on the show sometimes you can just hear the like i just don't know if we'll ever get there god we just we're still in so much debt i don't the idea of being a millionaire i feel like today it can feel like it's just there's that's just not me right what would you say to that person yeah here's the thing if you start baby step two with great gazelle intensity and deep sacrifice and you're going crazy to get out of debt and your only reason to get out of debt is to get out of debt you're probably gonna run out gas that's a good goal but it's probably not a big enough noble enough goal to cause you to go through the sacrifice you're gonna go through in the 18 to 30 months that it takes you to knock every piece of debt out of your life it's hard and and for me i had to have a bigger carrot than simply being free i wanted the carrot of i want to be rich so that i can do some stuff for me and mine and so that i can be unbelievably generous and so i can be stable and i have controlled the controllables and it's not going to be rich because i want to be a jerk because it's not that it's not only about me in here i want the things that wealth will do and getting out of debt is just one of the ways i get there yes it's the best way to get there and so that will give you the power if you really start to believe if you're going i don't really care if i bail wealth or not you're probably not going to get out of debt cause it's too hard mm-hmm you have to you have to have something big to pull you through the hard you know and so you'll but the people who go i'm getting out of debt cause i'm gonna change my family tree i'm getting out of debt so that i never never i'm here again and so i can build this wealth and so i can do because if i had a million dollars here's what i could do and if i had 10 million dollars i could do 10 more of those things and you know it's exciting it gives you a lift and so that's the thing and that that's what people really need to get their hands around is it's not that money's important it's what money does yes it's important we talk about that a lot here where it's that money is a tool right it helps you create a life that you love it's to help other people and it is it's this tool in your life that helps but when it's the thing that is sucking every bit of energy out of you and it's controlling you and it's exhausting it's working the wrong way and so that idea of being debt-free no one telling you what to do you actually have the power to do stuff and then you actually have the money to go and invest like yeah i mean you anyone anyone can do this but it is again sitting on this couch right here just talking through it you're you know we're not right now doing the nitty-gritty of it and so people are like no but i have obstacles there are things that i see there are people you talk to every day on the radio and so what are those obstacles that you see that people they might face when it comes to building wealth how ordinary people built extraordinary wealth and how you can do is the subtitle and uh so i've met people from every race every sex every national origin every area of the country virtually every profession every income level every income level that have become millionaires a few years ago we did this huge massive survey of millionaires we found that 97 of the millionaires that's all of them okay three percent didn't understand the question i mean you know 97 of the millionaires said they control their own destiny and that believing that they could do it was everything and i and i believe americans can still do this that's what they said when we surveyed the general public 69 said they believed it could be done and so what's the difference well the millionaire's done it so they know it can be done number one but number two the point is belief is everything and that's the problem with the barking dogs out there in our culture there yep yep yep yep yep you can't do it anymore you can't do it anymore america's broken americans screwed up there's racism yes there is there's sexism yes there is there's regionalism yes there is there's division within the politics yes there is it's nasty out there people are not kind people are not good it's bad okay go do it anyway because people just like you in spite of all of that just the same color as you same age as you same career field you're in have gone and done it but they believed they could yeah and that's the problem with these barking dogs is they're making people lose their hope they're making them believe that they can't do it and i get so irate with these people in politics and with these movements that steal people's hope and say you can't do it anymore and people go well i can't do it anymore the only way to become wealthy is inherited which is statistically absurd yeah yeah but that hope piece i mean i'm not kidding i'm like that mm-hmm it's the biggest obstacle you guys and hearing that take that in for a second because i think we all have good days we have bad days but if you start to find yourself to be in this constant state of mind of thinking i can't or it's never gonna happen it's never gonna happen it's never gonna happen probably won't happen then like if that's what you believe really and so shifting that mindset is so how do people do that right if they're if they are in a situation in their life where they think gosh everything stacked against me there's no way what would what like getting people around you getting a plan like what are the things you would say to help direct them into into a better pathway yeah i i think you have to have no inputs because your input's you know garbage and garbage out and your inputs are your the your closest people around you and if they're all negative if all your friends say the little moon can't get a hood then that becomes a reality you're a little man a little man couldn't get ahead a good good hood and i'm so dumb i've been a millionaire twice in this system i had to do it two times so i can i'm proof the little man can get ahead i grew up in antioch freaking tennessee okay shut up call the ambulance really i mean seriously and then i went broke which proved i was an idiot so you know then i got to do it again you know and so i i had double double doses of negative around me so you got but you got to put people around you that go yes this can be done and no it's not going to be easy but yes you've got what it takes and you know a great way to do that is great books read wonderful books from people who have done it i mean there's lots of really cool stories of people i mean the guy that started domino's pizza when he came back from the war ended up in a homeless shelter and he'd become one of the wealthiest people in america you know on professional sports teams started domino's pizza came out of a homeless shelter and tell me it can't be done i mean there's story after story after story after story after they're everywhere so give those as your inputs i mean read about people like colin powell and condoleezza rice and read about these people that came from backgrounds that were not privileged backgrounds and overcome the obstacles the isms because they're there for sure you just got to beat them back yeah you just gotta that's not well people like me i mean i'm i'm such and such i can't do it why what who's that somebody just like you did do it so you got to find those people get it so friends around you because you're going to become who you hang around with be careful if you're hanging around with debbie downer you are going to be debbie downer too i mean there's no way around it and so you got to limit your time with negative ninis yes i mean and you got to read and get inputs and you have to find true stories of people like you that did it and you put those on the wall of your mind and that becomes your inputs and it's not false it's not positive thinking this is stuff that really freaking happens yeah it's the reality of it yeah no which i think is so great so what would you say to someone who says okay well i am in a certain profession you've hit on this a few times but i want people to know out there the different professions that have become millionaires like like professionals you wouldn't think oh that's a that's a type of profession that's going to make me a millionaire but because of the decisions they made with their income it did here's what's so interesting here's how the powerful belief is okay so the the survey that we did of 10 000 millioners the largest piece of research ever done on millionaires in north america said the number one profession among all the millionaires that we surveyed was engineer number two was accountant number three was teacher number four was manager number five is lawyer doctor and banker didn't even make the top five okay uh and neither did nfl or nba or professional sports or rock star now they are a lot of those millionaires but they're tiny tiny percentages of the number of millionaires out there the typical millionaires an engineer account and the teacher that's the typical millionaire now i put that on instagram of course all right so here's the thing that's data in other words that's what's called a fact it's not in question and it's like and then i get all these teachers emailing me back who are negative ninnies and they're like they're just trashing us in the comments going well you don't know anything about being a teacher and you don't know anything about this and i'm like no i just know that the number three exactly that's what came out of the survey i don't know anything about the law of gravity but i do know that every time you jump out of a building you will hit the sidewalk i mean it's a fact this is not it wasn't like we were having a conversation it wasn't a dispute it's not wasn't like do you think you can it was stating a fact but their belief was so negative mm-hmm i said you know you know teachers don't make any money your teacher you don't make any money teachers don't make any money and yet a policeman married to a teacher all over the place in the research interesting all over the place end up being millionaires but well you can't you know you go into that field you're not going to get there it's like both of those are process driven people engineers are process driven people becoming a millionaire is a process we find that associated with it yeah yeah absolutely and i think again people people take dollar amounts so often and say well it's a certain dollar amount of salary or this or that so automatically you make assumptions right now will it take a longer mathematical scale with a smaller right absolutely but just because someone makes a million dollars a year doesn't make them rich they could be spending a million yeah 1.2 million and live and below their means so again you guys it's not it's not the dollar amount it is what you do with it that is so big one-third of the millionaires made less than a hundred thousand never made six figures in their life one third of them yeah now that's hard to do that's mathematically tough yep i honestly was surprised by that yeah i thought we were gonna see 100 to 200 was the typical which it is i mean it's two-thirds of them are over a hundred sure 100 or 200. but the number of them making 500 600 700 almost none it's crazy almost done i love it okay so part of being a millionaire and doing all this winning with money is not just for you like we said earlier but it really is for other people and there's some cool stories in here about people's outrageous generosity that you're able to do which is which is a big part of this you guys a big part that we talk about i feel like here on the show a lot but that generosity piece the giving piece is it's so stereotypical to say but it's something money can't buy like there is something about it of what it does and how you change other people's lives and it changes you it does so what are some of those one of those points i mean because you always go back to where you came from i mean i always want to help people like i was you know i want to get to that guy that that little redneck hillbilly crazy kid you know i want to get to him and make him believe he can win because somebody did that for me right somebody spoke a new input into my head when i was that little guy you know and it made me not that little guy anymore eventually yeah right and so like african-american lady jackie is a single mom and she you know she's one of our stories in many many stories in the book of real people that did this and she can't help now she remembers being on welfare she remembers the kids not having enough money for food you know she remembers uh you know the shortages and and problems and stress and so you know how jackie's always going to help these single moms yeah i mean she's got heart because she was one and and and she also is the the poster child that says you can do this so she can give them hope more than i can because i've not been exactly there right right i've been over here and i can and i can show you data and i can show you what my story is how i did it but but i've not been exactly there in that nuance and so you always want to go you you always end up when you're going to be generous somehow you always have a heart for where you came from which i love that love it so much well the book you guys that's out and i'm so excited about it so excited baby steps millionaires and again hopefully and my prayer with this book is that it does it interjects that hope that it's possible it's possible with money wherever you are and you can buy the book wherever books are sold and thanks for being on thank you appreciate you coming back and again uh check out ramseysolutions.com again if you want to buy the book or reminder of the baby steps and walk in this process for you too to become a baby steps millionaire [Music]

Channel: Rachel Cruze

Views: 470,466

Keywords: the rachel cruze show, the rachel cruze show youtube, money, budget, how to save money, budgeting, personal finance, rachel cruze, save money, how to budget, debt, saving money, save, how to make money, ramsey, finance, how to get out of debt, debt free, The Fastest Way to Become a Millionaire (with Dave Ramsey)

Id: K1jBE3Z42i4

Length: 17min 51sec (1071 seconds)

Published: Wed Jan 12 2022