The Secret to NOT Being BROKE! - Dave Ramsey Rant

your income doesn't matter your age doesn't matter your race doesn't matter your geographical location doesn't matter there's a thing that you and I are dealing with in your money and it's called math and none of those things I just mentioned give you a pass on math and where people get themselves in trouble including one I went broke many years ago because I was stupid we get ourselves in trouble when we don't bother and do the math before we do the transaction we're the stupid woman from San Diego who leased her dog for fifty four hundred dollars we make ninety thousand dollars a year and somehow in our brains figure out that our children deserve a $50,000 Honda SUV and now we have to take the kids out of private school because we can't pay the payments on the SUV and the private school because we didn't do math we're 21 years old we buy $10,000 car run up ten thousand dollars in credit card debt and have ten thousand dollars in medical bills and make thirty thousand dollars a year when you make thirty thousand dollars a year there's nowhere in that plan that thirty thousand to ten thousand dollar car makes sense there's nowhere in that plan that running up a bunch of credit card debt gives you any room to breathe you already can't breathe we have three kids we make twenty-eight thousand dollars a year should I go back to work the woman asks twenty eight thousand dollar income with three kids our health care is provided by Medicaid which is welfare because we qualify if I go back to work we won't qualify for that and if we go back to work if I go back to work to have to pay for daycare and I'm not sure I'm going to even break even at least she was doing math up front and thinking about it before she made the decision and of course our answer to our equation is both she and her husband need to develop some kind of a long-term career path and a short-term series of part-time jobs and extra jobs and small business ideas that create an income that at least doubles the bad news is they only make $28,000 a year the good news is with a little bit of work in ingenuity they easily can double their household income and then they don't worry about being on the government Dole and you got a long term game plan to get yourself out it's not a matter of simply her going back to work that's a limited view of the situation I actually didn't answer her question properly when she called what does all of this have in common every single one of these things have in common adults devise a plan and follow it children do what feels good Stephen Covey in the book the 7 Habits of Highly Effective People says number one habit of Highly Effective People is their proactive they happen two things one of the other habits is you begin with the end in mind so when broke people say I can afford this you know what they're saying I think I might be able to pay the payments that's what broke people mean when they say that if you don't want to be broke people anymore you get out of the land of payments if you don't want to be broke people anymore you sit down and you say hey here's what we make here's the size of our mess what are we going to do to increase our income and decrease our out go to be able to address the mess faster it really is sixth grade or fourth grade math it really and truly is but you have to get in front of it instead of running behind it all the time getting in front of it is you look at your situation before you make a decision not after you've made the decision $44,000 SUV when you make $85,000 a year is stupid whether you paid cash for it or not it's still stupid but when you finance that it's double triple stupid but if they look good when you bought it and Mama's going to be pissed at Dave Ramsey because her husband called the show and he said you're stupid and mama loves that car I'll just tell you how many times has that story been repeated in the last 25 years I'm a cuss word and some of your all's houses that's fine I'm everybody's got to have a gift I've got it I'm okay but we have to begin with the end in mind it's called being a grown-up you have to look at the situation and go there's no possible way a sane individual is going to make that decision but the thing is that we're not saying when we're making half the decisions because we're operating on about a four-year-old level meaning we impulse our butts off I'm cared and it could can it's going to eat it's going to eat we got to go back 80 because I'm tired I work hard I'll call the wambulance we all work hard I'm sorry he'd have followed me around the last six days you'd be in the hospital some of you we all work hard when when you poor little thing because let me tell you what that going out to eat looks like it looks like you're 26 years old you make 30,000 bucks a year you're 21 years old you make 30,000 bucks a year and you're up $10,000 in credit card debt because you bebop in and out of restaurants you bebop down to a vacation you can't afford you bebop your butt down to the pet store and buy something you can't afford you bebop through target some of you go to Walmart for entertainment give me a break you might be a redneck if Walmart is your entertainment and no wonder you run up debt no wonder you can't breathe no wonder because you got you got payments coming out your dadgum ears man and nobody goes in debt 10 listen people that make $30,000 a year they're 21 years old they don't go $10,000 in debt in one purchase they don't run they don't use their credit card and buy one thing for $10,000 no it's $1,050 things its death by a thousand cuts and then you look up and go oh my god what have we done what have we done how stupid are we now I'm on your team I've done it too but I'm just telling you a lot of stuff that's happened in this hour on this show is stuff that is unbelievably preventable you just look at it and go no we're not going to run our dog in fact we're not going to fance our dog and we're sure it's crap not financing a cat you know it's not happening period period we're not we're not buying this car honey I know you want a nice car honey you know what we're broke broke people don't buy $45,000 Honda SUVs we're broke and you know how I know we're broke because learning to be money that's how I know we're broke when we make a lot of money yeah but it's all gone have you not noticed we don't have any money there are any money or any money no we're not going to eat why we're broke what any money you're not in freaking Congress you can't just print it in the basement you have to live on less than you make and you have to have a plan and you have to be intentional I meet people that make $30,000 a year that save money I mean people make $130,000 a year couldn't save money if they had to and I think anything do the income it's got to do with you freaking controlling the person in your mirror it's you deciding I'm going to be a grown-up I'm going to be an adult and that's if you're 52 you're 22 or you're 12 adults devise a plan and follow it children do what feels good everybody's all worried about it by speedlings these days I'm not worried about your feelings I make a living hurting your feelings I don't give a crap about your feelings let me tell you what feels good not having any dadgum payment so what feels good having a pile of money in the bank that feels good being wealthy enough to be take your eyes off yourself and not be so bad blame self-centered and actually be generous where there's some room some margin in your budget you can give money to somebody else that's hurting that feels good but now we live on the junk food of Finance and financially we've got an obese culture it's lost its mind so you guys you have to be weird normal is broke Wall Street Journal says 70 percent of Americans are living paycheck to paycheck that's seven out of ten houses on your street and I don't care what street you live on that's seven out of ten houses see all those ten houses in your mind seven those people are broke well they look good but they're acting rich they're not rich it's what they call in Texas big hat no cattle don't live like that it's time to be weird those of you that want to weird Beach that want to win with money you got to do weird things because normal is broke and if you do normal stuff you're going to have normal results it's time to stop it this is the Dave Ramsey show hey guys thanks for watching if you enjoyed this video click the subscribe button to get the latest content and check out these other great clips from the show [Music]

Channel: The Dave Ramsey Show

Views: 2,244,573

Rating: 4.888988 out of 5

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Id: IMxciOsAoPY

Length: 9min 59sec (599 seconds)

Published: Thu Mar 09 2017