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this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice anthony o'neil ramsey personality number one best-selling author and host of the popular online series the table is my co-host today you can join him on podcast or on youtube to watch the table listen to the table anytime in the meantime he's here to help you and i am too the phone number is triple eight eight two five five two two five that's triple eight eight two five five two two five amon is with us in houston hey aman how are you hey dave how are you better than i deserve what's up so i wanted to ask you about the situation i'm in so i'm deciding between a 15-year fixed-rate mortgage or to save up and buy a home in cash so the thing is i in my religion we have a 20 um required charity so basically at the end of the year any money we didn't spend from our income 20 of whatever's left over we had to donate to charity so if i were to save for a house i'd have to pay a lot more in charity which means it would you know take away from my house savings but if i got a mortgage that money would be an expense so i'd have to pay less charity and put more towards the house so with that 20 number what would you recommend would i get a mortgage or save up for a house and pay in cash how old are you i'm 22. and what's your income 160 000 wow how what in the world do you do at 22 years old making which i 160 uh i'm a software engineer no no of course you are yeah okay you're smart good for you way to go okay so what uh what are you gonna pay for this house in cash or what are you gonna pay for this house and how long is it gonna take us to get there uh i'm thinking around 300 000 and uh probably trying to save up over the next four to five years to pay for it cash yes how much do you have cash right now your savings account i have not started work yet but right now i have about ten thousand dollars oh so you're not working you're just coming out of school yeah okay so what would happen if you lived like a college student and did this in like three years yeah i could do that and my expenses would be pretty low yeah and so the does the 20 apply i i don't know the technicalities on on your process does that apply to whatever you have in savings every year or what you added to savings this year what i added to savings this year okay and so if you put in a hundred thousand it'd be 80 the next year if you put in a hundred thousand b 80 and the next year if you put in a hundred thousand be eighty and you'd have two hundred and forty thousand exactly okay and buy a 240 000 house at 25 years old cash yeah but what would it make more sense to get a mortgage which would be cheap like what sixty thousand particularity versus sixty thousand in interest or less than sixty thousand interest which could be so what is your religion uh i'm a a sect of islam called the shia muslim okay and um i've got some friends that are muslims that are doing some teaching on what the koran says about money and they're kind of building out you know we're christians we kind of do it from a christian perspective they're doing it from a muslim perspective which is very cool by the way and uh they were teaching me that uh the quran is harder on debt than the bible is yeah it is pretty tough on debt a lot of people don't take any interest at all actually yeah and not only the users issue but the whole uh the whole debt thing in general so i don't know i mean i i what i'm suggesting is maybe you're choosing which part of the quran you're going to be worried about here and if you were worried about the debt part you would get gladly give up the other 20 i kind of like i kind of like the saving um you know it mathematically doesn't work but yeah technically charity doesn't work mathematically in general because when you give money away you don't have it anymore right uh and but yeah every religion of quality suggests generosity of some in some methodology christians you know orthodox jews 10 tithe uh you've got a 20 on savings there that you're teaching me about that i wasn't aware of and uh so it's not unusual at all for some methodology for generosity to be built in meaning that in general most religions believe that god says we're better off if we're generous right right and so i don't think there's a downside to you being generous me neither instead of looking at it as a duty look at it as a an instruction from your religion that is to your benefit not even just a duty it's a yeah about to say a benefit i like that dave when you benefit from being a generous person that is why you are getting this instruction to be generous and that's true i mean we could say that you know as christians we certainly believe that god is not telling us to give money away uh because he needs our money he's having a good money because it changes your heart into a generous person and generous people are highly attractive but if you're doing it as an active duty then it's you're not getting that benefit instead if you're doing it as an act of instruction where i'm seeing the benefit of my character being changed to that of a generous person which i suppose is what the the you know is this version of islam that's what the goal is it would make sense to me that that's how that works but dave let's take away religion from this if i'm 22 years old and i'm making 160 000 a year i'm staying at home and just going to just save up and just buy a house cash buy 25. and even if you take away the religion you have to stay home yeah i mean you live on 60 grand exactly that's no slouch no stops at all a lot of people coming out of college wish they made 60 grand absolutely so um you know that that's an okay that's an okay version i i still think i mean it's an interesting discussion and i like look i like talking about it through this lens because i think it's instructive but um you know so so the point is that even though your law even though you're down by 20 i think your character is up by more than twenty percent your generosity makes you more attractive you are a better person you on the long haul are going to prosper i don't know that you're gonna prosper in this calendar year by the equivalent of your giving that probably seldom does happen but i will tell you that generous people over the scope of their life tend towards prosperity because they're more attractive people want to do things with them they're the ones that smile they're the ones that hold the door for you they're the ones you want to promote now this is not someone who's acting out of religious duty though that's not generous that's just following the rules being a a religious boy scout yeah and that's that doesn't give you that benefit but the idea that generosity should be key in your financial plan if you are doing it out of a compassionate loving giving heart not a dutiful heart i think it's a very important part of the discussion i agree i do so even all that aside if i could save up and pay cash for three years regardless of what rules i'm doing it under i'm done i'm doing that yes yeah you're gonna be 25 years old not a quarter or a hou own a home that's a quarter of a million dollars and you'll be making 200 000 a year you're going to be in good shape sir oh yeah you're going to be all right oh yeah oh yeah i don't know how was that age oh my gosh that was why i say something i'm walking up you know walking up there hell both ways to school i just know i just wanted no shoes if he's single yeah you know yeah so yeah well the ladies are lining up they're one they're all looking for a software engineer right now like izzy is a software engineer in dead gum houston right there i'm just saying oh my gosh way to go dude i'm so proud of you really cool thank you for the call and thank you for the question [Music] what makes our show unique is that we genuinely care about our listeners we're intentional about choosing the best advertisers to recommend blinds.com is no exception they offer high quality window treatments at unbelievable prices and they make it simple to shop blinds shades and interior shutters with easy online ordering free shipping and a guaranteed perfect fit go to blinds.com and take advantage of this week's special savings [Music] [Applause] [Applause] [Music] thank you for joining us america this is the ramsey show anthony o'neil ramsey personality number one best-selling author host of the table on youtube and podcast is my co-host today if you're tired of feeling stuck with your money like you'll never get out of debt you'll never save enough for the future it doesn't have to be that way you can make progress with your money and you can do it really faster than you think the only way to make it happen is with a budget with a plan following the baby steps with the instruction the support that's why you need a ramsey plus membership you'll get access to financial peace university the premium version of our every dollar budgeting app you'll plan out every dollar thus the name and save before the month we spend a say before the month begins when you budget and you get intentional with your money you make progress really fast and you can start budgeting for free today to start your free trial at ramsey plus text trial to 33 789 that's trial two three three seven eight nine open phones here at triple eight eight two five five two two five boaz is with us in wichita kansas hey boaz what's up hey dave how are you great man how can we help hey um i i'm currently a college student um here in wichita and i am kind of wondering i have about twenty two thousand dollars in savings and about uh two thousand dollars on my debit card um i'm kind of afraid because right now i hear with all the new money being printed that um inflation is going to hit it so i'm wondering since i'm currently a college student what did you hear about summit in them what did you hear oh i i i was hearing that there was like going to be a lot of inflation maybe here coming since they printed off a lot of money who told you that oh man well that's that's the that's what i've been hearing from a couple people so i'd like to know your drinking buddy in college [Laughter] uh no just a little bit on uh youtube and things like that oh you went down a rabbit hole of conspiracy theory crap that's what i thought you've been playing on the internet getting financial advice oh dave what year are you in uh boaz um right now i will be becoming a sophomore over at wichita state okay cool what's your question man how can we help i'm wondering if i should go and either use that money towards uh my college um but currently i'll be working so i'm wondering should i just use my money in my savings should i just invest that and you're saying you want to invest because you're scared that you may have some inflation uh issues coming up down the road right yeah like my my interest won't like and my savings account won't keep up with the inflation rate which it's not currently so i'm wondering if that's a smart idea let's stick it into investments pretty much so let me ask you this question let's say if you did do that let's just say i say yep do that how are you going to pay for college um i was only going to stick about five or seven grand in there and then the rest i was just going to work while i was in college so here's my thing no don't invest nothing you have the 22 000 and 2k in your savings account the best investment you can make into yourself is right now it's not into you know investing it so you can save on inflation no you want to make sure that you graduate debt-free now once you graduate debt-free and if there is some level of inflation then let's worry about it then but the key thing is i want you to graduate 100 debt free um and so keep that money in your savings use it to pay for all of your cash get off of youtube or only get on youtube to listen to the dave ramsey show the way dave is looking to meme right now you may want to come watch my show first then go come and look at dave because dave really wants to talk to you right now but i'm uncle dave and i'm your nephew so uh so uh what are you studying um i'm studying aerospace engineering good for you good for you so here's the point a guy like you that even know has enough good common sense to even ask this question is so far ahead of the game studying aerospace engineer that you investing in you what anthony's telling you to get that degree debt-free is worth a lot more than any investment that you could possibly make no mutual fund will keep up with what you're going to be worth because you are getting an aerospace degree follow me mathematically yes sir mathematically you are more valuable it's not that's not some kind of existential thing of we think boaz is awesome although we do but this is more like dude the money that you can make with that degree is greater than the money you will make on a mutual fund get that degree get a debt free anthony's advice is exactly correct okay now let's step back for a second though just for the fun of it and have that inflation discussion okay just to uh just to soothe your fears yes there's going to be some inflation we're already seeing it and what inflation is is an increase in costs the cost you have to worry about increasing is college you don't have to worry about the cost of milk over the next three years ruining your life you do have to worry about the cost of milk or gasoline or whatever other components of inflation that there are ruining your life over 50 years but not over four years or three years or two years while you're in college it's the long-term drip that where inflation kills you the only way that inflation would kill you in two years is if we had hyper inflation which we have never had in the united states and hyperinflation is where all goods and services triple in one year or quadruple in one year so a 200 000 house becomes an 800 000 house a gallon of gas is going for 14 and a loaf of bread is ten dollars and if you saw that then your fears would have come true but that would be the first time in the history of the united states by the way there's only two instances that we can find in modern in the modern world economy that that has actually occurred one was in pre-nazi germany and the other is good old south america argentina okay and so we saw collapses of the entire economy as a result new governments rose up and all currency was disbanded and they started over this is how hitler came to power by the way it was not on his charisma it was an economic collapse and he stepped into the vacuum and made himself the hero of resetting it and it was from hyper inflation so you can go back study that by the way but it's an interesting discussion the point being is it's not going you know if we have a five or a ten if we normally have a four percent inflation rate if it's seven percent which is probably going to be because we're seeing cars go up in value houses go up in value two befores are going up plywood's going up you know resin you name it copper steel everything's gone up because of the shortage because there's a you know factories were shut down now they're coming back after cover trying to catch up on the supply demand curve and we've got an artificial inflation rate kicking up but it is a short-term thing dude and it's not going to kill you with your aerospace degree you're going to be just fine calm down quit watching cat lasers on youtube i'm gonna get you jason's with us in dallas hi jason welcome to the ramsey show hey guys thanks for taking my call sure what's up hey man so i am on baby step five and you give great advice on four and three as far as kind of how much to save and but our iso five is not so good oh man jason i feel so hurt i feel so hurt by that we have a number one national best-selling book and you're saying it's not so good oh my lord oh no how much how much should i should i be putting away for a child or or the reason the reason it's so vague and we just say college savings at baby step five because we don't know if you got a 17 year old or 17 month old right got it but jason studies are showing from our research and from i wrote it about this in my book that for in-state school you need to have about a hundred thousand dollars for your child to go to for to graduate within four years today today yeah and you can add inflation tuition inflation to that yeah depending on how old your kid is so where you want to send them to school how much do you want how much of the money do you want to provide all of it or not and then you can back into that how old are your babies uh one is two and one is due in seven days you are a great dad phenomenal you are a great dad you're ahead of the curve so what i would tell you to do you need a financial calculator and you need to have a target that you're aiming at and your smartvestor pro can help you with that click smart vester at daveramsey.com ramseysolutions.com and sit down with them they'll be able to calculate exactly how much you need to save once you identify this is how much we want to have 18 years from today for the brand new baby [Music] hey folks i got a great option to help you pay for your education the army national guard the army national guard believes you are the next greatest generation because you have proven that even in adversity that you have what it takes to succeed that's why they offer benefits like tuition assistance career training and a paycheck to help you avoid debt no matter what your goals are the army national guard can help you get there visit nationalguard.com to find out more [Music] so [Music] anthony o'neil ramsey personality host of the table lots of interesting people come to the table for a conversation you can join them on anywhere good podcasts are played and certainly his youtube channel as well there's some fun stuff there and uh i will promise you this if you watch or you listen to the table your level of cool will increase yeah definitely will that's why i say come to me first get cool then come get it the ramsay show does not make that guarantee nah but the table can make that guarantee absolutely but you know this is i'm a walking dead joke grandpa joke no day but we are at a table so i mean there is a level of coolness um on the ramsay show when i'm on here when you're on here and humility too yeah that's it morgan's in jacksonville florida hey morgan what's up hey dave how are we doing better than i deserve how can i help awesome dave first of all let me just say thanks uh thanks for taking the call a long time listener i grew up by my dad listening to you ever before i could even understand what finances were so well i'm on i got to finally get in thanks a financial piece baby yes sir yes sir and i'm about 24 years old dave i'm debt-free never had a credit card or a car payment uh i bought my own used car a couple years back and i'm currently renting a one-bedroom apartment with my girlfriend and my girlfriend and i are pretty serious and i've actually fully funded a savings fund for an engagement ring that i plan on purchasing in the next few months and popping the question probably later this year my dad's very traditional similar to you in the sense of he doesn't even like that her and i live together right now before being married and certainly doesn't think that merging finances before marriage is a good idea but i'm curious because she's in the process of pursuing a master's degree and with that is taking out some student loans to do so and so i'm wondering if it would be beneficial for me to once we do get engaged start paying off her student loans as a fiance and not a husband prior to you know actually combining our finances when we get married because then you know i'd be able to save money on the loans oh man dave um man you know here's the thing uh morgan i i agree with you dad i'm traditional like your father you know um and i don't have any kids so but i think you already know that so we don't have to go there here here's my suggestion uh because again i feel dave eyes looking at me he's ready to say something uh you i'm watching you do your thing you get so nervous i'm just playing um here's the thing man i would not combine here's what i would do because i hear it in your heart that you really that you love your your young lady and that you really want to help her out and i put my business out there right when i joined the team here dave knows says i was engaged to an amazing woman and um we had some goals but what i did not do i did not combine our finances i actually had a savings account that i was parking all the money on so when we did get married i would just cut the check and say hey babe let's go take care of this of something that she had so i would recommend that same thing for you because morgan i'm single today and unfortunately that engagement didn't work out and i pray that your engagement works out i pray that you all do get married but i would not combine the finances of you and your your girlfriend today if you have a heart for that because you are say you are saved you are single i always go ahead and put the money in a separate savings account and then when y'all get married then go ahead and combine the check that's my suggestion for you so that way you're protected on both sides if something doesn't go well cool you still have the money if something does go well and everything goes down the way you want it i think that's a great impression on your wife key word there was white yeah yeah and that's aside from traditional that's more just practical and legal than it is spiritual or moral okay uh we can go spiritual or moral but we don't you know we still answer the question through the lens that you're asking it which is um you know it just it sets you up now let me give you another one that is relational and that is is that when you start handing money to people i don't care who the people is that you aren't married to um it changes the quality and the texture of the relationship so i have grown i have children older than you okay so if i hand them ten thousand dollars if i'm if i don't do that in a very very distinct and clean way it taints it colors the relationship does that make sense yes it does like they could feel like they had to answer to me about where they went on vacation then even though i didn't say that that's in the air right and so it could it could negatively impact the quality of your engagement if you go ahead and transfer funds from a relational standpoint and that's apart from the moral or the traditional or the spiritual element that your dad and i would be concerned about which is another different discussion it's a same issue but different discussions around it so the practical aspect and i've seen things worse than what happened with anthony here's a really weird one like people go by houses together and they're not married and one of them dies in a car wreck now your shacked-up girlfriend owns a house with your parents because you didn't have a will leaving it to her and you your assets go to your heirs which would be your mom and dad now your mom and dad are half owners with your former shacked up girlfriend you talk about awkward as crap that gets weird very well and i've been in these coaching sessions with either the parents and they're going what do we do with her do we kick her out or or you're with her and you're going to they yelled at the future in-laws that never really became the in-laws are now being the people from hell and you know oh my gosh it gets it just creates all kinds of problems yes so just keep everything separate dude until you're married yeah when you come back from the honeymoon combine everything and talk a lot about it talk about it you can say i got i got ten thousand dollars over here waiting for when we get home from the honeymoon i got you know and we're gonna pay that off that's what we're gonna do and you know how's your budget going here's my budget and show each other what's going on but don't combine them yeah don't condone them and it's going to be a little difficult because you are you are you guys are living together and so there there will be a little temptation on both sides because you're already living whose mustard is that in the refrigerator yeah i mean it's just a problem but yeah hunter is in tampa florida hey hunter what's up hey dave thank you guys so much for taking my call a long time listener i am currently on baby step number one just finished paying off my credit card um and now i'm working on student loans um very similar situation as your previous caller so i'm glad he called in before me uh but my question for you guys today is uh i work in sales and i travel all around and i you know i use my personal credit card to expense um a lot of my traveling and you know get reimbursed for my company my question is should i continue using that card specifically just for work uh to you know to build credit and to to be reimbursed that um and not you know anything personal on that card just strictly for business or should i just put it on my debit card and pay it off when i get paid no credit cards on average how much are you spending a month um hunter uh for the expenses probably around uh in between 14 to 1700 a month cool so what i would do is i would go ahead and just put two thousand dollars extra into your savings account that you can just cycle through every single month so that way you're not you're not touching your emergency account and then while you're paying off the debt you have the two thousand dollars there that's specifically for work and you're replacing it every time you get your reimbursement but i would not uh going ahead and get a credit card because that credit card will eventually be spent on something else yeah here's the thing here's the let's appreciate that i would add a further clarification i would do it in a separate checking account i agree yeah open open a work an account for your work travel put two thousand dollars in there before you go any further before you pay any extra on your other debts right now let's get that two thousand dollars in there once you put it in there obviously you're going to spend it down and then the next month they're going to give you the money back to put it back so you're you only have to prime the pump one time does that make sense yes sir and then you run a debit card on that let me tell you what this will cause you to do it's already kind of but you kind of went just a little bit it's going to cause you to never use this card for anything that's not reimbursable or with a credit card you go well you know it's not that big a deal and it's not reimbursable but and so your balance you'll get balance creep on a credit card that you're using for business expense reimbursement and you'll look up you've got two thousand dollars out on it the crap you bought when you were on the road because when you're traveling you get tired you buy stupid butt stuff can you tell i've done that that's just you eat too much you eat poorly you spin poorly road is hard the road is hard this is the ramsey show [Music] [Music] so [Music] [Applause] [Music] so [Music] anthony o'neil ramsey personality is my co-host open phones at triple eight eight two five five two two five brian's in atlanta georgia hey brian welcome to the ramsey show thank you dave it's good to talk to you you too how can we help i'm wondering how much money should i have set aside for business savings before opening a new business hmm well most people are not able to do a lot of that um what are we talking about what kind of a business and what's the chain what are you changing from and to and so forth i'm looking to open a law practice i currently work uh in a in a government legal position um so the ability to uh take on clients before leaving this job is very limited uh just based on ethics rules yeah so i'm looking to open a private practice my wife and i have we're on baby steps 456. so i'm just looking to see so uh what what field of uh law or what area of law would the private practice be aimed at looking to um rules estate planning a little bit of litigation that sort of thing business formation how do you uh so a fairly general family practice type situation not counting divorce okay um correct the uh so i'm trying my the reason i'm asking this question i'm trying to visualize in my head how long before you start get some cash coming in the door what do you think my question as well yeah what do you i mean what do you think i mean do you have you are there some models that are some best practices that when you launch or are you going to be able to have anything in the pipeline ready to go even though you haven't actually done the work yet not much in the pipeline ready to go but i i've spoken with some some former law school colleagues that are in a similar kind of field and got some feelers for how to start things to do uh advertising and you know doing classes in local neighborhoods and things like that how to get the revenue model going yeah okay so how long i mean are they giving you into any indication of how long it'll take you to get some revenue coming in um revenue a couple of months sustainability probably nine to 12. okay so that kind of gives us a clue how much money we need right okay yeah so probably six months okay because um you're gonna you're gonna have nothing for three the first three of the of the next 12. the back three of the next 12 you need very little hopefully because you'll be reaching stability and the middle six in there is going to be kind of middle which totals up in my mind to a total of about six okay are you married i am does she work outside the home she does can you eat on her income um we can eat but i don't know how well you keep the lights on okay all right might get a little dark in there okay yeah um what do you make now i make uh about 69. okay and sustainability is about 82. she makes 82. yes okay yeah i'm thinking you know three to six okay is what it sounds like six would be preferable um and so that sounds like what 30 grand or something right okay yeah so three to six of my current income well because that's what you got to replace correct while you get the other revenue going we're going to offset that zero for the first three we're going to offset it almost totally in the last three and kind of medium in the middle six is my that's my projection based on our discussion but i don't know what i'm talking about i'm listening to you okay you mean you this we're working this through together you're following me i'm not i don't have like i've done this 100 times for law firms and this is what it's going to be i haven't i'm making this up while i'm talking to you so but it it's logical and what you're saying does sound like it makes sense you've got to get enough wills coming in estate plans coming in and some you know some incorporations some llc's you've got some some maybe some lightweight litigation that'll pay early and take it up uh take a good retainer on the front end some small stuff three to five thousand dollar retainer type things like i can visualize you doing that with your friends relatives and getting this thing going in with guys that i know that are lawyers that make sense within a eight mile radius of here there's probably a bazillion of them right okay but you're gonna have to do the work the marketing work right that's the big thing the the business development we would call it i guess in that world but it's still marketing like you said hold the classes on wheels have a thing a free a free night at the clubhouse and people can come by and ask questions about estate planning and whatever it is you want to build up whatever the client is you want to get the top of the funnel and start to have them uh create cash i guess the other thing you could do is just go to work for a private law firm work there for a little while you can make that transition more ethically and still have your own clients with you yeah especially in atlantic georgia dave he could do that yeah there'd be a lot of ways to do that but that's another direction but the way you're the way you're choosing you're kind of just taking the leap it's a little scary but um you know i think you'll be fine i think you'll be fine but just commit to the marketing disciplines that's very very important in this andrew's in washington dc andrew welcome to the ramsay show how can anthony and i help hi dave great to talk to you you too um question question about we have a a rental property that is it's paid for and the way the real estate market is now um i'm thinking it probably makes sense to offload that um and use that profit to pay off our current home um we have a current home with a 15-year mortgage on it um so having that paid for sounds really nice um but but also wondering you know if we do that is how do you get back into the rental market uh or not how but like you know when's the right time do you do we buy another rental home in the next few years or um just want to make sure we are well diversified with our our assets if you will cool good for you what do you make uh we make about 300 000 joints wonderful good for you well done how much is your current house payment uh current house payment is about 3 500 a month okay so here's what i did when i was in your shoes um you know i did i didn't sell a rental property but i was gonna i had a check come in and when i paid off my house i rounded it up and i had an automatic draft go into the mute go into a mutual fund and how quickly i was able to buy rental property with that mutual fund from my old house payment was freaking amazing so what i'm doing in your case is i'm going to round it to five grand up from 3 500 and i'm gonna pop five grand a month that's 60 000 a year that's 180 000 in three years plus what the mutual fund increases in value so you're gonna have 200 000 plus in there in three years to pay cash for your next rental okay and i'm gonna pay that guy we're gonna sell it rental one today and pay off the house today all during this time you live in washington dc with a 300 000 income and zero debt in the world it's gonna change your freaking life it's amazing where you're gonna be andrew once you pay off the house with the selling this rental property will you have anything left over that you can also put inside a mutual fund uh yes yeah we have we're contributing monthly to the mutual funds as well as well as for maxing out 401ks and iras and stuff like that as well yeah i'd be maxing out everything because your baby steps seven at that point and uh once you've maxed out everything then i'm gonna take that one mutual fund i just i i just used an s p 500 it wasn't anything fancy no commission uh and it just does what the market does because it's a short-term thing it's not a 10-year play it's not a 20-year play it's a three to a five-year play and i still do that to this day extra cash beyond generosity and beyond living i just throw it in there until there's a big enough pile in there to buy some more real estate because i love real estate i'm real estate chunky yeah and and do you try to this was our first rental property so do you try to somewhat time the market and wait for the market to correct yeah i have to because i refuse to pay retail yeah i'm not worried about the market correcting as much as i'm looking for a deal and the market we're in right now there is no such thing as a deal right i mean you got you i don't know who would be asleep at the wheel that would sell me something under retail when people are getting multiple offers and getting 40 000 over retail so i'm sidelined right now i'm not actually because i'm spending money over here at ramsey campus like congress building these buildings around here but thank you i'm doing some real estate investing over here but aside from me actually out there buying real estate at a deal right now i would be sidelined and just waiting because i can't find a bargain yeah that's where i would be today uh instead i'm putting in concrete and bricks all over this dadgum 50-acre campus here but that's okay whole different world hey man good job this is the ramsey show [Music] this is james childs producer of the ramsay show did you know the ramsay show is one of the most popular podcasts in the world subscribe or follow today wherever you listen to podcasts this is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where dad is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice anthony o'neil ramsey personality host of the table on youtube and as a podcast is my co-host today open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five anthony is with us in san diego to start off this hour hi anthony how are you dave how's it going thanks for having me on your show our pleasure sir how can we help so i've got a lot going on right now for sure i feel like i'm ready to live in a box and get out of debt because it's so stressed so much stress and anxiety all the time from for me and my wife is like she's on like she's learning and doing some of the steps but she's just like not as intense as i am and uh it's hard for her for me to expect that from her with you know ourselves that we've grown up with and uh so it's so i just i'm not sure how to how to get her on the same page as me um and uh we're like in the middle of selling our house right now you know to pay off debt and buying a new place and uh so there's just a lot going on yeah i'm confused as to what your question is give me an example of what's going on where you're struggling sounds like you're on the same page you're selling the house right yeah so where is it you're not on the same page i mean like i could well i have you know i have i have a kid he's a year old um somewhere running on the same page is like selling the truck and the fifth wheel that we have we have it's we have a loan for 60 000 i mean i i wish i knew about big ramsey like a year ago before i made all these financial decisions uh but uh basically we bought a truck and we bought a fifth wheel um fifth wheel's at forty thousand dollars and then the trucks are on sixty thousand dollars for loans so a hundred thousand dollars on these two items and you wanna sell them and she doesn't yeah okay why does she not want to sell them she thinks you're going to pay them off quickly yeah she thinks that we can it's like so because for we're selling our house so the only smart thing i've ever done with my money is that when i got here uh in san diego i bought a house right away uh back in 2016. so how much are you gonna make on the house when you sell it i'm gonna walk away with like 165k okay but you're gonna go buy a cheaper house um i don't i mean probably not oh you're gonna go rent okay how much debt do you have uh so i have the hundred thousand dollars in loans i have 73k on credit card debt and what's your household income um so i'm i'm in the military i make uh like 100k a year 110 um and then we rent out a room uh so is your wife work outside the home uh no not right now but she wants to pick up a job she'll probably be making a couple thousand dollars a month how old are you guys 25 26 okay how did your wife she's 27 okay okay here's just some common sense okay for both of you yeah and it's not a matter of intensity and it's not a matter of who's right or who's wrong when you own stuff with wheels and motors that totals more than half your annual income and it goes down in value very very quickly it is very difficult to win financially yeah and so you have a bunch of crap you can't afford even if you paid it off yeah i mean it's just hard to convince her because you know i get a steady income and like yeah but your steady income is not enough to justify a hundred thousand dollars worth of pickup and fifth wheel when you only make a hundred thousand dollars you're gonna lose twenty thousand dollars a year on this little get up while you're making a hundred it's going the wrong way at a faster pace than it needs to with your income if you made four hundred thousand a year you could justify this if you paid it off quickly but you're you know so i would not take the house money and pay all of this off i'd take the house money and pay off the credit cards and i'd sell these two dad gum things and buy you a car with a house money or a truck with house money that you pay cash for and the total of all your vehicles with wheels and motors needs to be less than 50 000. if you want to win with money now if you want to go around and be stupid and normal stupid and normal's everywhere that's not that's a long line to get in yeah i mean i understand that it's just been tough for me to relay that uh well it's a simple math thing it's not an emotional thing it's not a your right she's wrong thing it's a honey when we bought this we were stupid we didn't have the money to do this when you make a hundred thousand dollars and you own a hundred thousand dollars worth of crap that's going down in value it's hard to get ahead we need to undo our stupid here this is the conversation we have at our house yeah i was just about to say that because i heard anthony laugh and he was like dave you're asking me to go to my wife and say we were stupid i think this millennial he was stupid yeah i was going to say that yes i don't care but there's lots there's plenty of stupid to go around here anthony's like i'm gonna be sleeping on the couch dad well i mean we want to keep the dadgum trailer that's right so we is stupid you know we can figure this out here but um you know so but you can you cannot be insulting if you don't want to be that's fine the point is that there's a simple math thing going on here this is not a i think we can afford it because we can pay the payments thing that's what children say you know i'm not married okay but this is what i was saying i i definitely don't don't don't go to your 27 year old and say we were stupid i would go to her and say hey babe here's a vision that i have for the family that i think we're both aligned with we want to be financially free we want to be debt free we want a prosperous life and right now these two decisions that we made that's preventing us from getting there quicker i know you don't like this but can you just trust me i talked with dave i got some wisdom they all agree that we need to sell this and eventually one day we can get back there but if we could do this sell this sell the house we could be financially free within the next three to six months and i think that's a good way of saying we're stupid without saying we were stupid now we're saying we're smart you're just you're just so much smoother than i am but the uh um so here's the thing guy the other thing i heard you say that's the problem here you said i'm stressed out yeah well that tells me that she hasn't got a clue what's going on with the money and she's not carrying emotionally any of the weight of yours bad decisions she's acting like you're her daddy not her husband and when she feels the weight of this go across her shoulders which she needs to feel because she's like a grown-up and everything then she's gonna see this whole thing differently but you're trying to take care of her and her have all of her little girl feelings sorry you're like a grown woman now and grown women own up to grown men on up to when we do something stupid i've done plenty stupid i made a reputation with it i made a living off of the fact that i've done stupid and tell people all the time i'm not there's nothing no shame in that the shame is staying in it this is the ramsey show [Music] stop paying your overpriced wireless provider and switch to puretalk they use the same network as the larger providers for much less for just 30 a month get unlimited talk text and six gigs of data with no contract the average family saves over 70 a month by switching to pure top just go to puretalk.com and enter the promo code ramsey to save 50 off your first month pure talk simply smarter wireless [Music] well the cost of college has gotten very real real serious money especially at a four-year university or a private school you need a plan if you're going to pay for college scholarships and financial aid are a good plan but they should be a bonus you need to be saving for your kids college in an esa of 529 this is where it's at esa's and 529s are both places where you can invest after tax income and they look a lot like uh look a lot alike from an aerial view the differences age and income restrictions and the investment options you're given you get better understanding of which choices are the right for you if you talk to a expert financial advisor text invest to 33 789 we'll connect you with one of our vetted smart vester pros so you can get a trustworthy investing guide text invest two three three seven eight nine our question today comes from blinds.com find out for yourself why blinds.com is the number one online retailer of custom window coverings you get free samples free shipping and with the new promos they run every month you'll save even more use the promo code ramsey to get the best possible deal dave this is a pretty dope question and it comes from sean in missouri sean says i'm 21 years old and currently make 31 000 per year at his job i've been able to complete some college courses in the evening but it's challenging to keep up with school while working full time i have a plan that would allow me to work a part-time job during school and graduate still without loans is moving to a part-time job worth the risk or should i keep my full-time job and continue with college courses part-time my my vote is do what you got to do to graduate debt-free if you can do that with a part-time job great if you have to work a full-time job do that the key thing is not graduating fast to me the key thing is graduating without student loans amen that will cause you uh 10 years later to be ahead of the goobers that are saddled with student loans around their necks and um so the other thing is this the question changes shown is depending on what you're studying and why you're studying it if you're getting a degree in left-handed puppetry quit college and keep working if you're getting a degree in digital security then you know get get through school as fast as you can pay whatever price you got to do with no debt and get you know because you're going to get out there and you're going to make more money as a result of the schooling all education is not economically profitable some subjects are economically useless so be studying something that causes your dead gum income to go up you make 30 grand be out there making 60 80 100 when you come out and then it's worth working your butt off at the part-time job and you know and leaning in and getting through the school real fast but what you're studying matters yes and where you're going to school matters because it's how fast you can pay for it and pay cash for it yeah so very very good question i agree with you anthony that was a great great thing so the problem anthony and you've done so much work in the student loan sector and you know our borrowed future podcast has had millions and millions and millions of downloads now and you're kind of the star of that show where we talk about the epic failure that is the student loan world but part of the backlash against higher ed for going up so much in cost and against the student loan debacle is to say no one ever should go to college and we don't believe that here no not at all not at all i believe that college is a great route i believe education is the best route for all of us but how we go about the education and where we go to get the education will be different depending upon individuals some may go to community college some may go to trade school some may go into the workforce and get education there some may go to a traditional school if you want to be a school teacher you got to go to a traditional school route but if you want to be a welder you can go to welding school and make more than the school teacher exactly you can and so i think one thing that i that i really want people to understand um i didn't finish my college degree and there's nothing wrong with that because my route didn't require that but i'm still getting educated every single day within my space uh and so i think the key thing that i'm telling young people and even not just young people dave all people is identify where you want to go and ken coleman teaches who is our career expert once you identify where you want to go then back track and see what's the best route for you to get there and then if it is school then cool great uh we'll help you get there 100 debt free but here's the thing dave study shows that out of three kids who go off to college only one of them is going to graduate only one so my thinking is step back and and realize well you need to have a plan yes you know yes and uh you know the the university that our kids went to i told the story a thousand times with denise sitting in our oldest i went to the parent orientation with the kid and i'm sitting beside the freshman and they they were all braggy they were all jacked up they were all so happy at the university of tennessee that they had a 54 graduation rate i said wait a minute if she gets a 54 on a test you're going to call that an f right a 54 is a failing grade bubba that's it dave what do you mean you're all excited you got 54 that means 46 of the people sitting in this room one out of two is not gonna make it in four years yes that's true and only one in three is gonna make it at all goes back to what i just said won it one in three so i wrote i just grabbed her little brochure and i wrote across it and big old letters have a freaking plan yes sir cause if you take the classes that are required to get the degree and they're all available in the four years because they always are because you bothered to look at the schedule and actually made it your job to graduate and graduate on time all three ramsey kids graduate graduating four years because i said no money after four years no money you'd be on your own it is your job to study the little freaking catalog and sign up for the appropriate classes to complete the degree why is this hard and dave you also told your kids and correct me if i'm wrong that they're not going out of state you're not paying for them to go out of state right yeah i had one of them got approved out of state and i said why are you leaving the family [Laughter] why am i paying an extra 14 000 a year for you to go to an another sec school that has exactly the same dad gum everything wow you know because they have a pretty town over there it's they've got big houses over there what the crap you're kidding me fourteen thousand dollars a year for extra for out of state tuition just so you march your little butt across the state line what is this there's absolutely no value here in this zero it does not increase the quality of the education does not increase the increase does not increase their income later does not it's just they know the baby wanted to go school down there and nobody had the backbone to say no was that a hard conversation though because i know your kids are saying well dad you can afford it like was it a heart i said that's it that's that's how kind of how it went down i can afford it you however my darling cannot and so you aren't going unless because you can't afford it well i'll take out a loan and i said you're a rims you think you're gonna take out a loan you may you may be dead but you're not taken out alone there's not you know so it's the thing of here's the thing i'm being sarcastic and bombastic but the truth is i maintained enough influence through various levers in the kiddo's life to say this is a wise choice yes sir and i'm paying for it and we're going to go with the wise choices and here's here well you're controlling dadgum right i'm controlling it's my money yeah there's a whole new idea i get to control where my money goes oh by the way i love you i'm smarter than you and older than you and so it's a really good thing to have some control over you yes sir until you grow your brain in i just wanted the parents to hear that dave because i talked to a lot of parents who are wusses yes and they'll go out of their way just so their kid can go to another state to get the exact same degree for thirty thousand dollars more yeah if you wanna do that you wanna spend your money on it that's fine i'm not mad at you but you can't convince me that there's any value added for the extra money you've spent because there's not there's not the things we justify in the name of the college experience we're so stupid about education isn't that an irony this is the ramsey show [Music] [Music] [Applause] in the lobby of ramsey solutions on the debt free tyler and lindsay are with us hey guys how are you good great thank you welcome good to have you guys and where do you guys live cookeville tennessee just down the road awesome welcome to nashville and all the way here to do a debt-free scream how much did you pay off yes 52 100 ish very good and how long did that take five months good for you guys way to go and your range of income during that time we started around 100 000 and then we ended around 140 ish cool what do you guys do for a living i'm in talent acquisition and i do health coaching at night and i am in finance as a controller ah very good good for you guys what kind of debt was your 52 000 about 20k of car and around 30 student loans okay how long you all been married since september so oh just the other day yeah oh wow well congratulations just started okay so you get married and you uh obviously said as soon as we get married we're gonna knock this out tell me the story how did all that happen yeah yeah so it actually started with me first i started three years ago four years ago um by myself when i paid off about sixty thousand dollars by myself good for you i graduated college and decided i needed to buy four brand new off the showroom vehicles wow who let someone do that but i decided that's what i needed to do got myself into a mess found you and your book read it in like a week and i was like ready to go so i took the initiative on myself i didn't have a boyfriend or husband at the time um and then i just went with it i started paying off my cars which i just had the one at the time but i started paying all that off and then i finally got debt free by myself um three years ago tyler and i met in 2019 and immediately i was already talking about are you going to pay this off what do you do like all of those things i like her dave i like her she's really romantic on a date isn't it it was um i'm sure i was pretty annoying at first wasn't that annoying he marriages yeah he married me which i remind him of that every day you married me i didn't get the full lectures but it was close i just worked it into conversation that i was debt-free and i was saving for a house all of that kind of thing and then it just kind of went from there we just started talking about it and we were just open with each other um he had the debt yeah that's all right it was his car and his loan she still married you with it but you used to but you used to have it so yeah it's all good here it's all good i knew i knew that there was a better way i just needed him to see the the light and somehow tyler how far into her talking about this did you kind of go you know i think that might work uh i thought she was crazy for a while probably about a month or two in i started making my own budget and into the marriage or into dating into dating okay well i don't even know if we were dating at the time yeah i think we were so into dating okay so about two or two months or so okay he had his budget i had my budget and then we like talked about it so it worked out really well that we were open about that and then we knew that whenever we got engaged which we got engaged here in nashville in uh march of 2020 the weekend before the world shut down wow what an engagement yeah it just worked out perfectly um but we talked about it that our whole engagement we knew that we were going to start a budget together we kind of did a fake budget if you will um and then once we got married we came back from our honeymoon put our accounts together and came on went after it yep came on and five months later you're done just ding ding yeah it just seemed to work out we thought it was going to take about a year and then different things just started happening and lining up and here we are very good so todd let me ask you this question you meet this amazing young lady and she says hey listen check this out if you want to marry me pretty much you need to be debt free or have the mindset what was the dif the most difficult thing throughout that whole journey starting three years ago and then when y'all got married then the last five months what would you say would be the most difficult for you probably not being able to spend what i want to spend having to keep close to the budget and yeah actually having to talk about what we're spending on so i went to accountability yeah ding ding yeah so last year i went viral because i told um some people you know date on the budget so were y'all dating on a budget yeah yeah pretty well um we each had our own budgets so i didn't want to do anything that was going to mess mine up and at that point he didn't want to do anything that messed his up so it it really worked out it was a it was a blessing for sure that's so good i like y'all well dating on a budget doesn't mean not doing anything it just means doing it on purpose yeah but yeah they said you went viral because you were cheap is that what they said you know what the viral community yeah they said well you're just on man twitter's trolls there's nothing on their patrols anymore the driver date says y'all have fun dates a little bit of both a little bit of both i don't like to go extravagant so i wouldn't go drop a hundred dollars on a meal or something like that but we've done it since yeah you can afford to now now you're out of debt making 140 ding ding come on now all right so what do you tell people the key to getting out of debt is you've both had you've had a journey together and uh lindsay you had a journey on your own what's the key to getting out of debt yeah my thing by myself was just staying on the budget my thing in a marriage is first be on the same page second be on a budget and third just know what you're going after you can't hit the goal if you don't know what it is yeah i would say the teamwork and watch where your money goes yes it's really eye-opening to see where your money goes yeah i do if you're not on a budget especially when you see the eating out budget is like a thousand dollars in a month what the world what where were we yeah [Laughter] yeah way to go you guys i'm so proud of you so who are your biggest cheerleaders outside the two of you um we have really good families i have a couple really good friends that have been trying to get me on this path a long time and then now that i'm on the path they are still on my team so i have a lot of really good friends i think he does too very cool good for you guys well we've got a copy of the legacy journey which is definitely the next chapter in your story become extremely wealthy and unbelievably generous so proud of you well done also got a copy of the total money makeover and extra copy that you can give away to someone and help them on their journey get pay it forward get it started for them way to go you guys thank you very cool very good stuff tyler and lindsay from cookville 52 000 paid off in the first five months of their marriage making 100 to 140. count it down let's hear a debt-free scream three two one [Music] [Applause] this is how it is done ladies and gentlemen yes sir man i'm gonna put them on my social media yeah i think you need to i really am because a lot of these people that are uh griping at you yeah um about cheap date or whatever and all that stuff are people that are not eligible to be your spouse cool because the the point is is that there are a wonderful intelligent attractive people out there like tyler and lindsey who are have a brain and they're in there we're in the singles world there for a minute and they're out there there's real ones i know there's a bunch of freaks in that world too but there's a bunch of freaks in the marriage world too yes sir so i mean you know you're just looking for somebody who's not normal if you don't want to have a normal life yeah and uh lindsey found tyler wasn't going to be normal and tyler already figured out lindsay wasn't going to be normal normal sucks i don't be normal yes sir who wants to be normal i don't want to be normal not me no and the key thing he said we didn't spend over 100 on our date now they can go do it a lot 100 where do you people i yeah yeah okay wow yep i've been married too long i am too old yeah this is the ramsay show [Music] [Music] [Music] anthony o'neil ramsey personality is my co-host today open phones at triple eight eight two five five two two five that's triple eight eight two five five two two five seth is with us in lincoln nebraska hi seth welcome to the ramsay show thanks for having me dave our pleasure how can we help sir so i recently accepted a promotion through work um is decent pay raise in my opinion however i'm trying to decide um if i if we should purchase a house with the move it's about an hour and a half away from where we live right now and i've been making the drive um and it they're paying my mileage up until the end of next week um but should i should i purchase a home should i run a home we're like baby step half as far as getting our finances and your no money correct well no you should not purchase a home you're in debt you have no money yeah go rent man i think you should move and just rent a house up there are you there you're breaking up yep no i'm here okay so uh you're are you renting now yeah we're currently currently running the house for my father-in-law okay and so you're gonna move to the other town and rent right yep i wouldn't be commuting an hour and a half if that's what you're asking that's crazy land okay but yeah you need to move up there and rent and then you guys need to get you guys need to lean in now and get your debts paid off and get yourself an emergency fund built so you can save a down payment and buy okay but right now how much lower now i'm sorry right now we're saying i have about 56 000 in debt between student loans and credit cards and stuff how much you owe in the cars uh i own my car free and clear both of them uh yeah we so when we got married i i came into the marriage with a lot of that myself so we've kept our finances separate okay sound like you had to guess on that car thing man do you owe anything on on the other car i don't know anything on the vehicle there's a loan on the wife's truck so so yeah let me let me help you with this you're married all of her debt is your debt all of your debt is heard at welcome to marriage okay so yeah we have we have a loan on one of the vehicles there we go okay and so we have 56 we have student loan debt and we have a truck debt and how much is owed on her truck uh her trucks just below seven thousand dollars okay so do i did i do this correctly so you you owe a little over sixty thousand dollars to become debt free as a family is that right yes sir good and what is your household income now with your new promotion uh with my new promotion um it i i don't like counting in bonuses so it's going to put us where we were last year without bonuses which would be 72. okay but i count bonuses because they go into your checking account to use to get out of debt so what do you anticipate your bonus to be reasonably uh reasonably for if i do what i'm supposed to do which i plan on obviously um about another ten thousand so we'd be sitting about 80 to 83. great okay and so what we're going to do is we're going to sit down together and lay out a budget together and we're going to set a goal together of having a debt-free household and then we're going to build an emergency fund of three to six months of expenses those two things should take you about 24 months you should be debt free and 18 and another six to build your other but you're on beans and rice during that time you're not going on vacation and you're not going out to eat and you're on a written detailed plan yeah and when you move seth one of the one of the things to do on beans and rice is to make sure that your apartment i think in that area you should be right around 20 do not go anything higher than 25 but i want you to look at in between 15 and 20 percent of your take cheapest possible rent because the cheaper your rent the faster you're out of debt the faster you can save up and buy yes sir okay all right now we have a membership called ramsey plus it puts you through our class called financial peace university it signs you up for the every dollar premium budgeting app which is the world's best budgeting app and uh if if the two of you will work together and go through that whole thing i will pay for it for a year for you to go through it but you have to promise me both of you are going to work on this and you're going to go get yourself straightened out because you have an opportunity here to have a great life in front of you if you stop being normal yes sir will both of you do it if i give it to you yes sir okay all right brother you hold on i'll have kelly pick up and we'll get you signed up as our gift so guys the um just a reminder those of you been listening a long time know this already but um all of the data that we have on people who build wealth it almost never occurs in a household where the spouses are not working together one of you dragging the other one along simply does not is not conducive to building wealth as a matter of fact it's quite the opposite it's going to continue to cause problems in your relationship it's going to continue to cause marriage issues it's going to continue to cause lower productivity at work because you're screwed up and fighting all the time it's going to continue everything until you can work together to a common goal that you both agree on and that's whether you've been married 20 minutes 20 years or 50 years and we both you know we have combined goals we have combined assets combined incomes we change our pronouns our we us not hers and mine yeah changes everything the probability of success goes way up 1 plus 1 does not equal 2 it equals 42. you get the synergy of two people playing off each other pushing each other holding each other accountable cheering for each other lifting the other one up when they're hurting all the stuff that you do in marriage when you're working in sync and in tandem i love it i always think two is better than one in my opinion yeah yeah it it it really does create that nelly is with us in austin texas hi nelly welcome to the ramsay show hi dave and anthony today's a good day it is how can we help me and my husband became debt-free in february of this year a six month emergency fund good and at the end of this month we're going to go to puerto rico great and it's fully funded very paid for it love it and the thing is is i'd like to upgrade my samsung fund to the newest phone which is about 1200 and what's your household income 115. and what's the puerto rico trip cost we actually got a really good deal with the vrbo with a few other couples so we actually are paying around a thousand dollars for the trip oh less than the phone okay oh i'm sorry i said less than the phone oh that's true i was i was actually thinking you were gonna tell me three or four thousand dollars okay but you're doing you're doing fine it's all good you got a really good deal okay good but we haven't paid for the experience but it has the best camera and i just would like to purchase it for the course and i just wanted your commission to make a hundred and fifteen thousand dollars you're debt-free twelve hundred dollars in anything it's not a need though it's just a one yeah but if you want it you can afford it you want it yeah i do want it yeah nelly you can't wait until your your contract is upgradable and you can get a discount on it actually we can trade in our phones there's 350 dollars to trade in okay so it goes down to what now about 8 15. yeah go i mean i can't tell you what to do because i'm not your husband but i say go get the phone yeah me too me too but maybe you call me up and you're in baby step 2 and you want to go to get a 1200 phone it's just a luxury item yeah but you make 115 000 a year you're debt free you've paid a price to win you saved up and pay cash for your trip you don't have to present it as a need though it's not really a need and you know you don't even have to talk about the camera it's just it's a 1200 thing we got the money and i want it yeah and that's okay there's nothing wrong with that you earned the right to do that both of you did absolutely i get one every other year dave i think husband's still in tight wide mode he's still stuck back in baby step three he's scared to go back to baby step two yeah that's what it is that's what it is and you can't do this every day but i think if you can make this one purchase i don't see a problem with that at all [Music] hey it's kelly associate producer for the ramsay show this episode is over but if you heard about an event product or service and didn't have a chance to write it down don't worry we list everything you've heard about during this episode of the podcast show notes section or head to thermzyshow.com thanks for listening is the ramsay show [Music] you can be intentional about your character you can have money and a career you are the hero in your story live from the headquarters of ramsey solutions broadcasting from the dollar car rental studios it's the ramsey show where debt is dumb cash is king and the paid off home mortgage has taken the place of the bmw as the status symbol of choice i'm dave ramsey your host this is a special edition of the ramsey show where we call on everyday millionaires to call in if you are a millionaire you have a net worth of 1 million or greater regardless of how you got the money i want you to call in and tell us your story i'm going to interview you in other words we're going to talk to wealthy people real wealthy people not people with a political agenda not people who were trained by a socialist professor on a socialist college campus not people who vote improperly not your broke brother-in-law with an opinion not some blogger living in his mother's basement but real people who are have built real wealth or inherited real wealth wherever you got it so we're going to ask them how they became wealthy how much wealth they have and learn a little bit about them with the idea being that you then if you have not yet attained the level of wealth that the people you're listening to have could possibly do some of the things that they did which would give you a probability of joining their ranks it turns out if you eat what skinny people eat you're very likely to be skinny it turns out if you do what successful people do in 60 year old 50 year old marriages that are happily married that you will join them someday if you've been married 14 times i hope this one works for you but i'm not reading your book on marriage i don't want your opinion if you have a keg and not a six-pack i don't want you as a as a personal trainer i already have a keg i don't need another one of those i need someone to show me how to get rid of my keg and trade it in for a six-pack this is not hard folks find folks that are winning at something and emulate steal their habits character qualities and processes and use them and you get to join them this is called best practices so we're talking to real millionaires on everyday millionaire theme hour now for those of you who are newly initiated a millionaire is not someone that makes a million dollars a year you can make a million dollars a year and not have a million dollar net worth because you blow it all a millionaire is someone who has a one million dollar or greater net worth your net worth is calculated only one way there is only one kind of millionaire you don't need to say net worth millionaire because there is only one kind of millionaire a millionaire is someone who has a net worth of a million dollars what you own minus what you owe equals your net worth your assets minus your liabilities equals your net worth jay is in tucson jay what is your net worth hi dave we're about at 2.2 million awesome break that down for me in the mix of it is it 401 k is real estate what you do yeah we've got our personal residence is paid for it's worth about 650 000. we've got 401k in our current employers a total of about 200 000 our traditional iras are at about a million dollars those came from uh direct transfer roller coverage of our previous 401ks and then we've got uh roth iras at about 300 000 and then some non-retirement accounts at 70 000. cool good for you how old are you 58. cool and how much of this uh 2.2 million dollars did you inherit zero zero cool and uh what has been your average or not your average your range of working income your household income from worst year to best year since you started this whole process uh well i guess uh since i started the process it's been about 100 to 180 000 household income okay what do you do for a living i'm an engineer okay is that what your degree is in i assume yeah i have a bachelor's in mechanical engineering and i have a master's of science of finance cool and what was your gpas in my undergrad program it was about 3.0 and the master's program was 3.98 cool very cool how much of this 2.2 million is there because you borrowed money to do investing that made you wealthy uh zero if we hadn't borrowed any money who had been much further ahead okay so you made some mistakes with borrowed money yes yeah what was the mistakes we well we borrowed on a 401k to buy a rental house we we bought time shares uh plural on loans yeah so yeah we made some big mistakes that we wouldn't repeat yeah who'd you buy your time share from uh who didn't we buy them from we uh we bought some a couple of them in mexico we had four at one time how'd you get out of them uh well one i was able to sell on on uh ebay for a dollar and uh free uh about that yeah and then the other two i had to pay somebody like the interactive team although i don't think that was the company yeah but you paid a company to get you out okay wow yeah wow so that was the worst decisions you've made financially then all right cool good for you good for you okay so uh what would you tell the 25 year old version of you if they want to be you when they grow up if you want to have 2.2 million at 58 years old yeah i would start by getting a copy of the total money makeover and then following all those stuff oh i love you man you're awesome you're so you're a smart guy [Laughter] well to be honest you know i i was at 44 and i didn't know you know how i was going to retire right we had very little money to stay we were pretty good about staying out of debt but you know i was a little worried about you know what our retirement looked like and and uh when i got a hold of that book it just sort of brought everything into focus uh it's like having a gps on on the trip you know i knew exactly where to go and how to do it so that's cool it's uh it just made all the difference for me well i appreciate the compliment and i'm so proud of you man very well done i mean you you've changed this all around in 14 years uh which by the way is about the average that it takes for someone to become a millionaire in the millionaire study that ramsay did we found about 17 years to be the average time from the time someone starts being serious and it sounds like that happened to you 14 years ago very very well done oh by the way folks in that study we found the top five vocations of millionaires it's the largest study of millionaires ever done in north america over 10 000 millionaires were studied you know what the number one vocation engineer that's what he is you know number three was teacher yay you know who was not in the top five doctor broke doctors are everywhere they're like broke athletes they're everywhere it's like a stereotype and there's a reason for some of these stereotypes it's very interesting no actually doctors came in at number six but they just did not make the top five but everybody thinks you know lawyers first doctor's second doctor paul your second nope barely made the top five attorneys were number five just barely squeaking in there very interesting so it turns out that methodical application of a system is very indicative of being your everyday millionaire interesting this is an everyday millionaire theme hour on the ramsey show life is full of firsts as the first and longest serving christian health cost sharing ministry chm has shared medical expenses for its members since 1981. we believe you should have the freedom to focus on your health while being supported by a community of believers giving you the opportunity to create many more firsts [Music] [Music] [Applause] [Music] it's an everyday millionaires theme hour we're talking to real millionaires people with a net worth of greater than one million dollars asking about them how they did it what they look like where the money comes from because there are great lies in the land there's mythology in our culture people are telling you all the time that want to control your life and so tell you that washington is going to supply your needs your wants and your dreams they want to tell you that the little man can't get ahead and yet the proof is in this actual statistical data that says the little men can't get ahead all the wealthy people have inherited their money almost none of them did statistically 93 percent of america's millionaires are not millionaires because of inherited money based on the largest study of millionaires ever done airtight research the research methodology on this study is airtight by the way a thousand people studied would be would be statistically significant there are only fifteen million millionaires to study ten thousand of them is unheard of but we did that to shut up the left-wing liberal critics who want to say that government and socialism is where prosperity comes from it does not come from there it comes from the sweat of your brow and your personal habits and your character and your steadiness and your processes that you use to build wealth that's where wealth comes from that's where prosperity comes from still after all these years it's still true greg is in philadelphia hi greg welcome to the everyday millionaire theme hour what's your net worth hey dave anthony great to talk to you guys thanks for having me on sure it's 1.2 1.2 million all right and break that down for me give me some categories and some amounts so uh 650 is in uh 401ks and uh about 450 in house equity um we're still paying off the mortgage so that should be done in about a year and a half two years okay and that gets me to 1.1 and then you got about another 100 and something else we got another 100 and emergency fund cash and other retirement savings got it okay cool how old are you 39 39 young millionaire good for you and what was your best working year household income and your worst working year household income so the lowest was right when i graduated college it was uh about 25 000 you know when i was 23. uh and our best year is about 300 000. cool what do you do for a living i'm an insurance underwriter and my wife is a research scientist okay very cool all right and how much of the 1.2 million did you inherit zero okay but yeah i had help from my parents with you know student loans and things which was awesome but i didn't inherit anything okay all right and uh your degree was in what uh my degree was in psychology actually okay and what was your gpa it was about a 3 6 if i remember correctly it was a long time ago very cool very cool how many non-fiction books do you read in a year uh i read a few non-fiction books a year i i read at least a fiction book a month okay very cool i love it i love it so what was the biggest mistake with money that you've made overcome and still become a millionaire well i think leasing cars at a younger age was was a kind of a financial pitfall for for us for that income you know having having two lease car payments to have to pay really you know it was it was a strap that i didn't you know i didn't fully understand and now you know i've been on you know kind of on your program for seriously for five years or so i've been listening to you every day since i was 26. you think a 23 year old listening to you and me right now can still be a millionaire by the time they're 40. yeah for sure yeah i would say you know with hard work kind of sacrifice on the front end you're starting when you're young um living below your knees and and staying out of debt that that's the main part here yeah has used all your income to live and build wealth yeah for the most part yet for the past five years and i've noticed that that's one of the things really changed was you know when we we started to really focus on you know each step at a time baby steps so you're a baby step millionaire excellent very cool good job man thanks for calling in i'm proud of you good work mark is in denver mark what's your net worth 1.15 million good for you break that down for me by category we've got 325 000 equity in our home 600 000 in retirement accounts i've got 160 000 in business equity that i'm a partner in 30 000 emergency fund 35 000 college and about 25 000 and paid for vehicles excellent how old are you i am my wife and i were both 44. oh god another young millionaire good for you what was your worst household income year and best household income year since you started we both started from the absolute bottom at somewhere 25 30 and worked our way up from there our average income the last couple years has been i think about 150 a year this last year we made 240. wow good for you what do you do for a living i am in construction management and my wife is an environmental scientist cool and how much of this 1.1 did you inherit we inherited seven thousand dollars okay so it's safe to say you're not a millionaire because of inheritance okay cool and you have a four-year degree i have a four-year degree and an mba okay cool and your four your degrees in what my four-year degree is in philosophy okay then when then you went got an mba good what was your gpa on the mba on the nba it was it was quite high i loved the program it was probably 3.7 3.8 okay very good good for you good for you so what do you attribute the fact that you became a millionaire before you're 50 when you hear on the news every day that it can't be done in america days 11 years ago i was completely broke and desperate hopeless and really worried about my future single dad right about then somebody gifted me your class and from that point i got a plan i married a great spouse and we were exactly on the same page turned off the news got organized set goals became really generous and just and just went at it and uh can't believe how fast we accomplished all this you know from where we started yeah you did it quick that's amazing i'm proud of you so you're a baby steps millionaire very good okay you sure are so tell me about the generosity piece how does that play in well we give 10 either to our church or to other causes that we support every month and and that's one of just the great joys of everything we do um we're a foster family so we give a lot of our time and our energy in our home and as soon as we pay off the mortgage uh we're set to increase our giving quite a bit yeah that'll change everything again yeah and your wealth your wealth will double pretty quickly then too yeah i'm so proud of you guys man well done hero the class was a life changer for us and just being on the same page we've been married for eight years and just being on the same page and doing what you guys teach is what and just working real hard got us there well i'm so proud of you man you did it way all done well done i'm glad that we had a small part in showing you how to get there but you're the one who walked the road good stuff the average millionaire pays off their home in 11.2 years the average millionaire takes about 17 years to get there 93 percent of millionaires as i told you earlier are not millionaires because they inherited money now a few of them did inherit money but mathematically it did not cause them to become millionaires like he got seven thousand dollars 97 percent of millionaires when surveyed say that they believe they control their own destiny when the public is interviewed that are not millionaires only 69 believe they control their own destiny turns out henry ford was right if you think you can or you think you can't you'd be right [Music] everyday millionaire theme hour here on the ramsey show [Music] [Music] [Music] it's an everyday millionaire theme hour all millionaires inherited their money and false all wealthy people are crooked and false all wealthy people are famous people they're rock stars country music stars actors or professional athletes and less than one percent of millionaires fall into that category all wealthy people are brilliant they have 4.2 gpas average gpa of a millionaire is right around 3.0 in their four-year degree i got a 2.97 i'm still pissed about that 3 100 of a point probably beer involved but no one is ever in my working lifetime i'm 60 years old now ask me what my gpa was in regards to whether i got to get money or not from them they only cared if i could add value to their life they only cared if i could help their company if i was working for them they only cared if i had good common sense and critical thinking skills it does not require unbelievable almost unnatural brilliance to build wealth in america today it doesn't hurt so if you may if you got a 4.2 i'm not mad at you but most of us that are millionaires or multi-millionaires had right around a 3.0 we were not inordinately brilliant now we weren't a 1.2 either i mean i had one relative who graduated from college after two semesters with a degree in beer pong they got flunked out i mean this is not smart so you know you do need to study you do need to actually apply yourself you do need to acquire academic and intellectual skills along the way and critical thinking skills meaning you can think for yourself you don't need fouchy telling you how to think you learn to do math which they don't teach in med school we learned during the pandemic so you learn to think outside the box because the box is where normal people live these are the people who build wealth in america today and they really do do it it's not a false dream it's not positive thinking and i'm not some kind of baby boomer bootstrapper who doesn't know what it's like in the real world honey i'm so stupid i had to do it twice i went broke after i became a millionaire the first time because i borrowed two dadgum much money i got a phd in dumb that's my degree this time i built our wealth we don't borrow money we don't borrow money and you don't have any payments and you pay attention to where your money's going you end up with some this is really not a deep formula but you don't need to get rich on gamestop or amc stock you don't need to get rich in bitcoin you don't need to get rich in gold bars because almost no one does statistically get rich quick doesn't work statistically among the millionaires the number of them that got rich quick and easy was very very small turns out that god is not in the microwave business he prefers crockpots he who hastens to be rich will not go unpunished this is how wealth is really built in the real world boys and girls now i know it doesn't work on cnn but very few things do including their ratings so here's the thing guys you really need to look and say what are real people doing who have really built wealth how do they operate their lives how do they think how do they treat their spouses what kind of character these people have because it you know really a lack of integrity is actually a a huge statistical indicator that you're not going to build wealth because people don't want to work with crux duh now it does happen crooks become wealthy but that's not normal it doesn't normally happen normal is steadiness consistency these are the things that was caused people to build wealth kathy is with us kathy is in topeka kansas kathy what is your net worth hi dave it's such a pleasure to talk to you our net worth is 1.4 1.4 million good for you give me a little breakdown on that by category well thanks to the housing market our house is about 400 the rest is just retirement 401ks iras cash so you got a million dollars in what mutual funds in retirement yes good for you how old are you yep um i'm 49 and my husband husband's 49. good not even 50 in your millionaires love it how much of the 1.4 million did you inherit absolutely nothing zero okay zero all right cool and uh what was your all's best household income year and worst household income year since you started adult life um well before we were married um you know starting out probably 24 000 our best um about 280. good for you what do you guys do for a living we both work in i.t my husband is actually a director and and i work more on the business side but in the i.t department very cool good for you before your degrees in that or in something else no i actually went to a technical college and my husband who is an i.t but actually majored in radio and tv okay broadcasting okay cool and uh what was your gpa's um mine i have no idea probably wasn't that great maybe three of that my husband was 3.4 good good for you okay do you think this can still be done the younger version of you that's listening oh yeah yes definitely what would you tell them they need to do well i actually um when i'm i've been in for the at the same company for 31 years and i actually started in contributing to my 401k right off the bat so i would say do that but stay out of debt i actually did stay out of debt as far as uh credit card but you know i was just normal and had the the um vehicle loan and the mortgage and all of that stuff and my husband had student loans so and i should say that we're both um we were divorced from a previous marriage so we pretty much started over 14 years ago ah so you did in 14 years yes good for you so starting over at uh 30 30 years old or 35 years yeah about 30 but yep 35. 35 years so if a 35 year old newly divorced person is listening and has started over with nothing this should give them hope yes for sure you just have to i mean the main thing is just don't worry about what other people do what other people think you know everybody's out buying new cars every year and you know the designer jeans and the latest fashions and you just have to say i don't care you just be your own person yeah i'm not setting my standards based on other people i don't want to be like them good for you guys i'm so proud of you what was the biggest mistake you ever made with money in your whole life um i i didn't i don't know what it would be what about your husband what's the biggest what's the dumbest thing he ever did do you have a dumbest thing he's right here here i'll let you talk to him hi mr ramsey hey i was asking her a hard question what's the dumbest thing you ever did with money oh dumbest thing i ever did with money well dave i i did the whole dot com boom thing uh back in the late 90s so uh there was a lot of playing with money back then so it went from insta range to insta-stupid to insta-nothing yeah i bet there's a whole bunch of people listening that lost their butts in the dot-com bubble oh my gosh we were betting on companies that didn't even have a revenue stream oh kind of like some people are doing right now oh my gosh that's beautiful man thank you i'm so proud of you guys your heroes very very well done this is an everyday millionaire theme hour here on the ramsey show [Applause] [Music] [Music] our scripture of the day john 3 27 john answered and said a man can receive nothing except it be given him from heaven c.s lewis said hardships often prepare ordinary people for extraordinary destiny this is an everyday millionaire theme hour we've talked to everyday millionaires some of which were babystep millionaires meaning they followed our path to become millionaires starting from nothing a lot of them did it in 14 years today today we've had an engineer an insurance underwriter a construction manager and an i.t specialist that's who we've talked to so far michael is in dallas michael what's your net worth uh 1.33 million 1.33 give me a breakdown on that by category okay about 1 million 41 000 is in our 401k okay uh stocks and mutual funds and the other 300 is in the home we live in gotcha cool how old are you 51 and my wife is 48. awesome and how much of this did you inherit not a penny not a penny okay and what was your best year working household income and your worst year working household income uh 39 what i started my career at and 156 9. cool what do you guys do for a living i'm an engineer i'm a mechanical and my wife is a homemaker she works part-time sometimes cool and so you obviously had an engineering degree yes and your gpa 3.4 cool can this still be done if somebody's 25 years old and listening to you i'm amazed just looking at it this morning i can't believe it's growing that big it seemed like it happened overnight now you just steadily invested in your 401ks almost all of it right that and got your house paid off yeah well we owe it to 8000 our house we're close to being done with the house but not quite okay we'll be done another two months of the house gotcha very cool okay what's the dumbest thing you ever did with money your wife and i talked about this i think we had too small of a house payment for too many years refinanced to a lower rate 30 years before i started listening to you and we should have never done that it was only in the last about five years we've gotten pretty intense about panel's house ah okay by too low of payment you mean you just paid as little as you could instead of paying extra and getting knocked out i see what yeah we did 30 years and made it as low as we could and that's a mistake we should have paid more yeah you did great man i'm proud of you very very well done all right uh janie and john are with us from cincinnati hi guys uh what's your net worth hello dave it's uh 1.2 good for you and give me a little breakdown by category on that well just in quick summary we've got just under 1 million in retirement accounts uh both 401ks roth iras and taxable mutual funds as well as some uh cash sorry i'm a little bit nervous that's okay this is a bit this is a big deal for us so we're excited to the nerf at the same time but uh i understand and then we have a paid for home and um it's more of a small business it's worth a couple hundred grand uh maybe like 130 140. okay cool and we have some business assets uh some cash in my ever-growing small llc good for you and uh some uh software and computer equipment and things like that okay cool how old are you guys jamie um i just turned 50 this year last year december and i'm 55. good for you guys and how much of this 1.2 did you guys inherit not a penny zero zero okay blood sweat and um fpu tears oh i love it and what was your best year of how what was your best more than we care to admit we you've been in our life for for a decade now almost on a daily basis so uh it's been fun yeah well i'm honored so what was your best household year income and your worst household year income what since you've been working when we well when we work i mean i've been working since i was 14 so i'll throw the first couple of decades out but when jane and i got married in 2011 we were probably just around 100 000 together and uh our our best year was probably 200. okay cool what do y'all do for a living i'm a registered nurse and i'm a machinist by trade turned into a contract cnc programmer ah good for you okay either obviously jenny's got a four-year degree or more in nursing and do you have a four-year degree john i do not i would like to say just a machinist by trade and when uh yeah high school diploma and when when covet hit my company of seven years laid me off and when you're a millionaire with no debt i thanked them for the walking papers and started my llc and i haven't missed a day since yeah make more money than you ever made in your life now that'd be the best best thing ever happened to you you got fired from that stinking job i got fired from my job and i i thanked them and and and i the hr lady when i thanked them she had this silence on the other end of the phone i said you just made this life dream a lot easier so thank you very much and best of luck to you wow way to go you're a nice guy i love it very cool so do you think someone listening to us is 25 can do this oh yes golly in fact on on that note we've you know entered the give like no one else and um came across um fulfilling the idea through your curriculum opportunities we had a little money to tithe and and decided you know let's spin it somewhere new and came across your curriculum opportunities to purchase for different schools oh for the high school curriculum and have more than it doesn't take them as long as it took us to figure this out so you're the way the way you're give the way you're being generous is to buy the high school curriculum for your local high schools that's so cool thank you yeah thank you so much yeah very nice well you guys are absolute heroes i am so very proud of you very well done what a wonderful story okay our net worths today folks were 2.2 1.2 1.1 1.4 1.3 1.2 none of these people were 10 millionaires none of them were even 5 millionaires all of them were between 1 and 3 million dollars in net worth they were 30 9 50 44 49 51 50 and 52 they were not 80 and they were not 26. the range was from 39 to 55 the average time today was 14 years some people did it in nine or ten some people did it in 17 there was a lot of people woke up in their 30s and by the time they were 50 they were millionaires because they applied the baby steps that we teach and that's not to say that baby steps the only way to get there but their baby steps millionaires they started from nothing oh by the way the number of people that became a millionaire that called in today due to inheritance was precisely zero which is statistically accurate as well because our study found as i've told you before 93 of america's millionaires according to the largest study i'll say it over and over again so you can tell your friends who are stupid 93 percent of america's millionaires according to airtight research in the largest study of millionaires ever done in north america are not millionaires because of inherited money why is that such an important statistic because the lefties are lying to you and saying that the only way to become a millionaire is because rich people have all the money hoarded and you can't have any and that is a lie that is a lie the data says it's a lie it's not a philosophical moral thing it's a data thing it simply isn't true why does that matter because i don't want you to have your hopes stolen by lies that are politically motivated your hope of building wealth and prosperity in this country today if you take control of your freaking life is real it's real it's real it's how it's done most often this is the message of this whole everyday baby steps millionaire movement they're everywhere people they're all around you i see rich people i love it oh what a great hour that puts this hour of the ramsey show in the books we'll be back with you before you know it in the meantime remember there's ultimately only one way to financial peace and that's to walk daily with the prince of peace christ jesus [Music] have a friend or family member that needs a daily dose of ramsay advice in their life let them know about the ramsey call of the day podcast it's a quick hit of advice about life and money in under 10 minutes check out the ramsey call of the day podcast wherever you listen to podcasts you

Channel: The Ramsey Show - Full Episodes

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Id: MYu5LsYe3ik

Length: 122min 0sec (7320 seconds)

Published: Wed Jun 02 2021