The Ramsey Show - App - A Partnership Is the Only Ship That Won't Sail (Hour 3)

Episode Date: September 27, 2019

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave 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. You jump in, we'll talk about your life and your money. It's a free call at 888-825-5225. Jamie is with us in Spokane, Washington. Hi, Jamie.

How are you? Hi, Dave. Thanks for taking my call. I'm doing well. Good. I hope it's an easy question for you. I started your program about two years ago. I'm debt-free minus my house, and I was curious about what you thought about it.

I have an employee stock, and it's a relatively safe employee stock. It's for a railroad, so it's pretty consistent. But I have about, I don't know, save around just over $13,000 worth of stock right now. I was wondering if it would be in my best interest to cash that in and then pay it all towards principal. I still owe $138,000 on my house at 4.125 interest. And the last time I looked at the mortgage website, amortization is about just a little bit over 50-50 in my favor. So a little over half of it's actually going to principal right now. So I was just kind of debating whether or not I should put that, cash that out and then

pay my principal down. Well, any extra money you pay goes 100% to principal. Yeah, I have been paying an extra 500500 a month for the last few months. And that goes 100% to principal. Yes, it does. Okay. Now, the thing is this. In the baby steps, what we teach is use all money that's available to you

that's not in a retirement account for whatever baby step you're on. If you're on baby step two, working the debt snowball, you would cash the stock out and throw it at those debts. for whatever baby step you're on. If you're on baby step two, working the debt snowball, you would cash this stock out and throw it at those debts. If you're on baby steps four, five, and six, you're putting 15% of your income away towards retirement. You're doing something in baby step five for kids' college, if you have kids and so on.

And then baby step six is paying off the house. So, yeah, I'm going to cash that out and throw it at the house in your situation. Okay. Easy enough. I was leaning towards that. I just wanted to get a second opinion on that. I was kind of leaning that way. Yeah. I mean, I'm just trying to get the house paid off as fast as I can.

So any money I can get my hands on that's not going to be penalized, you know, so I'm not cashing out retirement and that kind of thing. But if it's not going to be penalized, I'm going to cash it and throw it as fast as I can. So, good question. Shadrach's with us in Boise, Idaho. Hi, Shadrach. How are you? How are you, Dave?

Good. How are you doing? Better than I deserve. What's up? I need some advice. My wife and I were approached by some friends who have their own business and they claim they're going to be retiring in about four to five years and they're I'm 26 and they're about our age and they said that their mentor who taught them how to do this retired at 28 years old

they own their own company through worldwide group Have you ever heard of that? Nope. It's an offshoot of Amway, which I'm sure you've heard of. Sure. So, you know, there's a whole vetting process. We've been to two meetings so far. I'm very skeptical, and I want to be very careful because I don't want to get scammed. It's not a pyramid scheme. It's an MLM, I think.

So I was wondering, for your advice, if this is possibly legitimate or not. Well, is it actually owned by Amway? I'm not sure. I know there's a whole bunch of little companies underneath amway and or did somebody leave amway and start this that would be different no okay no then it's under amway okay if it's technically owned by the amway people it is not a scam in that you're not going to lose you know they're not going to steal your money or something like that emway is a legitimate you know full-on company and they don't rip people off and that kind of a thing

but then the question becomes how much of the story that you're being told about these early retirements due to making mountains of money is hype and how much of it's real and that's what you're trying to vet you're trying to cut through the cut through the bs here because you know one of the downsides of the mlm culture is exaggeration beyond belief to the point it's lying you know it seems that way and so um you know they just hype hype hype hype hype hype and that's the downside of it and um and it causes them to lose credibility when sometimes they have a legitimate opportunity and if they would just present it that way instead of making it so pie in the sky and it just makes your it makes your shields go up you know so here's the deal here's the deal with mlms it's

pretty simple i have friends in six or seven different mlms over the years that have made north of a million dollars a year. Okay. 100% of them were very good at hiring more and more people recruiting into their MLM. That is where the money is made. So if you want to be a full-time recruiter of people who are going to recruit other people, who are going to recruit other people, and you want to be a full-time manager of salespeople, basically is what we're talking about, and you want to deal with a high turnover and a continual hiring, continual hiring, continual training,

and you're in the business of recruiting and training and dealing with drama recruiting and training and dealing with drama and making the presentation that's being made to you maybe with a touch more credibility than it's being made to you if you want to be in that business mlms can be over a period of many years can turn into a substantial income. If you get in something in 18 months, you're supposed to be a millionaire starting from zero. I call BS. Yeah. Okay.

That's just not true. That's just, you know, but can you work and build a large sales organization called a hierarchy in MLM if you become a professional recruiter and a professional trainer and a professional manager of salespeople, yes, you can. But it's not got to do with whether you like the makeup or not or whether you like the knives that they sell or whether you all that. You need to believe in that. It needs to have integrity to it, and that's what the difference in an MLM and a pyramid is,

is there's an actual economic transaction, and there has to be that. But when someone says they're making $100,000 in an MLM a year, it means they've built a hierarchy. It doesn't mean they sold a bunch of makeup. You follow me? Yeah, and that's how they present the few details they have given us so far yeah so what you need to decide is not do i want to be wealthy most people that have a brain and would like to be wealthy i mean if you say i don't want to be wealthy that's kind of weird you know so yeah you do know you we know that about you that's you call that's what attracts you to this you

you don't need to decide do you want to do that what you need to decide is what your career is yeah and do you want to be in this business and if you want to be in this business great go do it and you know go go hog man go wide open and believe and you know and get to talk you know discuss it with other people and get them to do it and if you want to be a recruiter, nothing wrong with that. Hiring, recruiting, and training salespeople and high turnover. But just for God's sake, tell the truth while you're doing it, you know. If you want to do that, that's okay, do that. But don't do this just because you want to be wealthy and you think this is a good way to get wealthy.

It won't work. You'll die. You won't make it. This is The Dave Ramsey Show. a good way to get wealthy is it won't work you'll die you won't make it this is the dave ramsey show folks let's cut through the bull interest rates are exceptionally low so you're missing out if you have not called churchill mortgage to see if you can save money on your home loan lots of other companies are out there claiming great deals but don't get lured by slick missing out if you have not called Churchill Mortgage to see if you can save money on your home loan. Lots of other companies are out there claiming great deals, but don't get lured by slick advertisements.

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They have a 100% satisfaction guarantee. Now, a lot of people have a satisfaction guarantee. Never heard that? I've heard satisfaction guarantee. But I never heard of a satisfaction guarantee that includes if you screw up, if the customer screws up, and you're not satisfied because you messed up. Well, that's kind of like on you, right? Not with these guys.

If you mismeasure the blind or you pick the wrong color, they'll replace it free. Wow. That's satisfaction guaranteed. Now, I'm telling you, site-wide savings are happening right now, plus take an additional 5% off at blinds.com slash Ramsey. That's how you get the deal. Blinds.com slash Ramsey. Linda in Tennessee says,

Unfortunately, I allowed myself to fall into the credit card game. I have two cards with the same balance. Card one charges 27.9% interest. Card two charges 9.9%. Which one do I attack and pay off first? Well, if they're the same balances, you'd pay off the high interest rate first. But I think there's a bigger problem, Linda. The Bible says, out of the abundance of the heart, the mouth speaks.

What's going on inside of you causes you to choose the words that you use. You need to stop talking like you're talking. I allowed myself to fall into the credit card game. No, you didn't. You walked straight up, signed up for the card. There was no falling. You're not a victim. You walked straight up and signed up for the card. There was no falling. You're not a victim. You walked straight up and signed up for stupid. And you did it on purpose. Own it. I've done a lot dumber than you've done, kiddo.

But I walked straight up and signed up for stupid. And as long as I blamed the government, or I blamed the mean bank or I blamed the IRS or I blamed the economy, I was not getting any better. And I did. I sat around and whined like it was a form of prayer. But you got to own it. You didn't fall into credit card debt. You ever hear anybody say, I was forced to buy a car. Well, bull crap, you were not.

No one has ever forced you to do anything. They didn't have a gun at the car dealerships. Buy a car, I'm going to shoot you. There was no collusion. There was no extortion. You weren't forced to buy a car. You wanted a freaking car, and you rationalized the crud out of it.

Stop lying to yourself. It's one of the steps you have to take to get your life straightened out. So you didn't allow yourself to fall. You walked straight up and signed up for stupid. Say it like it is, and it'll help you in the healing process. I know, because i had to go through the same thing kiddo mina's with us in new jersey hey mina how are you hey dave how are you better than i deserve how can i help uh first of all thanks for taking my call

um my question is um it's um of two parts actually the first one um i I make about $40,000 to $45,000 a year. I support a family of four, and I work for the Postal Service. I have a debt, a student loan debt of like about $15,000. And I have two friends. One of them is asking me to go for a business, like a subway business. So I was thinking about taking a loan for that. And my other friend is offering me to go buy a house with him to share like a two-family house. So I take one apartment and he takes the other. And it's going to be, of course, with a mortgage loan too.

So I wanted to know what should I do. Okay. Well, we tell folks not to borrow money around here, if you've listened to this show very much. The shortest path to wealth and peace in your finances is to avoid debt. And on top of that, I would tell you to avoid partnerships. It's the only ship that won't sail so um what that means is is that if you still want to remain friends with both these guys i

would suggest you say no because at the end of these stories there's a nightmare going in partners with somebody in debt to go into the restaurant business that you don't know squat about is a good way to end up bankrupt and lose your friendship forever. Going in partners with somebody to buy a house and then he doesn't pay his half or can't pay his half or you don't pay your half or can't pay your half is a precursor to the ending of a friendship and a foreclosure. So, no, I wouldn't do either one of those.

And that's my reasoning. I think you'll have a lot better life if you avoid both of those paths. And you can develop a career path that does not involve you going into debt to start a business. As a matter of fact, most businesses start without debt. They just start small. We started this one without debt on a car table in my living room. We didn't have a big fancy studio we went down the local radio station drove over there and they let us use their stuff

because we worked for free there well you just figure out a way to get going and you what we call bootstrap it and it works but you don't have to go get an sba loan and go deeply in debt to buy a subway franchise in order to be in business. That's a mythology. Thomas is with us in Philadelphia. Hey, Thomas, how are you? Hi, Dave. Thank you very much for taking my call. Sure.

What's up? I just graduated with a degree in actuarial science back in May. Wow. And I'm working at McDonald's making $9 an hour. Why? I've been applying and applying, and I just can't find a job, and I don't know what to do. Hmm. Well, I would assume that the primary job for that would be at insurance companies, correct?

Yes. Through the end of my last year of school, I got very turned off to actuarial science. So I've been applying to finance jobs, and I can't get anything because everyone wants to have experience, and I don't have the experience, and I graduated early, so I did summer classes, and you can't do internships for summer classes. What kind of financial job are you trying to get into? Financial analyst, financial, like I've been even doing accounting, like accounts payable and receivables. Yeah, entry-level stuff.

Mm-hmm. Oh, you just get your foot in the door. Okay. Well, here's one thing I will tell you, and Ken Coleman will tell you this as well. Go to KenColemanShow.com and download his free PDF on how to put together a resume. But resumes and applications without relationship are useless. I'll give you an example. We have 800 people here, just under 800 people work on our team. We hired 150 to 200 last year.

We had 15,000 applications for those 200 hires. You get lost in that. And it's not that I don't want to answer and talk to every one of those 15,000 people. It's just logistically not reasonable. And so what ends up happening is you get lost in the stack of that stuff unless you know someone that works there. And you don't have to be best friends with them. You just because I got to tell you, we don't ever hire somebody because somebody calls me and says hire them ever. But we would give them an interview and pull their pull their resume out of

the stack you got to get out of the pile you know and so some of these places you're trying to get on with you need to figure out if your sister that's married uh kid plays soccer with a guy that works over there or something like that where you can find someone that will put in a little bit of a word for you to at least get the door open, and that will get you in the door. Again, you're not going to get hired because of that kind of a reference. As a matter of fact, there are very few references where you just call up somebody and they get you hired. That almost never happens. That's a decent job anyway. I mean, if they're hiring just bodies, you can get on with something like that.

But at a good job, they're really going to want to interview you and learn about you. And that would be true here. And so we don't guarantee anybody a hire, but we will at least talk to them. And, you know, it might be a very short conversation. No, you don't qualify. It doesn't fit. It's not what we're looking for. But at least we'll talk to them and get their resume out of the pile if somebody knows them.

So go download that and listen to Ken Coleman's show. out of the pile if somebody knows them. So go download that and listen to the Ken Coleman Show. He'll help you with all this stuff. It's very, very difficult out there, but I think you can land something. We'll be right back. 100,000 potential like-minded people our team communicates our current openings to. We also post our jobs on LinkedIn because we know the best candidates already have jobs. And LinkedIn makes it easy by doing the legwork for you. It's no wonder a hire is made every eight seconds on linkedin and over 600 million members visit linkedin to make connections learn and grow as professionals and discover new job opportunities get started today with linkedin jobs and get 50 off your first job post Visit linkedin.com slash Ramsey.

Terms and conditions apply. What if you never had another student loan payment? You never had another credit card bill. You never had a mortgage payment again. Wow. Well, you really can take control of our money. You can take control of your money, actually. It's called Financial Peace University. Our easy-to-follow steps will teach you how to spend wisely,

actually save up for purchases and pay for them, be ready for emergencies, get out of debt so that you've got control of your most powerful wealth-building tool, which is your income. Then you're ready to start investing. We'll show you how to do that. And you'll build wealth. You'll become wealthy.

And you'll be in a position to be outrageously generous, which kind of is the point of the story, isn't it? To get started with Financial Peace University, just check us out at DaveRamsey.com or call 888-22-PEACE. 888-227-3223. Ben's with us in Cincinnati. Hi, Ben. Welcome to the Dave Ramsey Show. Well, thank you very much. Thanks for taking my call.

Sure. What's up? I just started a new job recently, and I was curious on which of the retirement plans that I should go for. The job is with the state, and so I have to choose either the PERS program or the ARP, Alternative Retirement Plan program. Both put in 10% and both, they match 14%. So, but one's more for the pension and the other one is you have a little bit more control over. So, just wanted your input. Always take the control. Always take the control. I always take the control, even though the PERS program has, you know, health care or

Medicare even earlier for retirement. Probably. I mean, it depends on where you are, but most of the time, your control will equate to more than enough to pay for those things. Gotcha. And on top of that, the pension dies when you die, and money that is in your name that you have control over, it sounds like the alternative plan is more like a traditional 401K, and that way you own it, and if you ever left the state, you just roll it over to an IRA. When you leave the state with a pension, you lose it, or you have to wait until you're 65 to get it.

Perfect. Yeah, so I'm always going to take control when I get the chance. That's always my plan. Thanks for the call. Maxwell is with us in Maryland. Hi, Maxwell. Welcome to the Dave Ramsey Show. Thanks for having me, Dave.

Sure. What's up? Hey, so basically I'm about $25,000 in debt from my student loans and everything like that. And I had an app idea that I have about 55% funded right now, and I have to come up with $30,000 to invent it and get it all made and everything like that. So I just kind of want to hear your input whether I should kind of tackle the debt or go after the app. Are you a programmer?

No. kind of tackle the debt or go after the app are you a programmer uh no so the company that's making it is actually you know saying hey we need 70,000 to make it um they invent they invested uh 40,000 into it and i just have to come up with the extra 30 they already have invested yes so no well there it's based off of if I can get that 30%. I'm sorry. Has any work been done? No, no, no. It's all, you know, when it's the investor, which is me or another investor, puts that $30K up and they put up $40K.

Where did you find these people? Cubix. It's a pretty well-known app developer. Okay. I suspect you could hire someone to write an app for the money you've got. I mean, I've got guys sitting here all day long writing apps at our place. And yet, you're not even going to own this thing 100% when you're done with this, right? You're just getting a piece of it. Yeah, I'll have 80% ownership. Yeah.

After having – listen, I want you to investigate different ways to do this. I think you can do this cheaper than you're talking about. Okay. I'm a little shocked at the price tag to develop an app. I don't know how complicated this app is, but you understand, too, when you're developing an app, you're talking about putting it on iTunes, and then you're going to try to monetize it at whatever rate, right? Meaning you're going to try to make your money back. Yep.

Yeah. And you understand that's a roll of the dice. Mm-hmm. I do. Yeah. And you understand that's a roll of the dice. I do. I really think it's kind of a one-of-a-kind monetized app. Of course you do. Of course you think that. You wouldn't go into it if you didn't think that.

But, dude, all the stuff that I have tried that hasn't worked, I can promise you, some of the things I think are going to work, and I'm pretty smart, don't work. So it might work. I'm not saying it don't work, but I think you need to work, and I'm pretty smart, don't work. So it might work. I'm not saying it don't work, but I think you need to figure out another way to skin this cat. I'm going to pay cash for this, and I want you to get out of debt, too. What do you make a year? I'm about $50,000 right now. Okay.

I don't think I can stop you because I think you're already on the bench doing this. I think the money you have laying there you probably get this app developed if you found a couple good developers and maybe give them a couple of points of ownership in it if it took off and in order to discount their rate uh instead of trying to go with this out of thebox deal that you're messing with here. I wouldn't do the deal you're doing. I smell overpriced is what I smell because we do apps around here all the time. And ones that have made lots of money. We've got 5 million people on every dollar.

And we've got a lot more money than 70 grand on every dollar. But a whole lot more than that. But I think you pay cash for it you own it and you take your business risk that way that's what i would do um or get yourself out of debt and then when you're out of debt save up the money and then do it but i don't think i can stop you i think you're already on your track. Ryan is with us in Orlando. Hi, Ryan. How are you? Great, Dave.

How are you? Better than I deserve. What's up? Well, I've got six months ago I started a new job, kind of making decent money, and I'm stepping into the adulthood, as my parents like to say, and I've been thinking about investing recently. And I look into the vanguards and the fidelities, and it's kind of sensory overload. I see mutual funds, index funds, ETFs, and I was curious what your opinion is on the

best route to begin a portfolio. Okay. Are you out of debt? Well, I owe about $13,000 on a truck, and other than that, that's all. Okay. You need to clear that before we implement what we're going to discuss. So I want you to clear that out, okay, and have your emergency fund of three to six months of expenses in place. That's what I would do. But the index fund is simply following an index.

The most popular is an S&P 500. Standard and poor is a company. Rates the top 500 stocks in the stock market. And the S&P 500 is the baseline of what the stock market does. If it outperforms the S&P 500, it outperforms the stock market. If it underperforms the S&P 500, it underperforms the stock market. More than half of mutual funds underperform the S&P. So you've been better off to just buy an index fund half the time,

if you're going to guess. But I don't guess. I buy funds that have a long track record of outperforming the S&P. Most of the ETFs are index funds, and they have lower fees than index funds. So if you're going to just buy an index fund, an ETF is a way to go. But I don't do any of that. I buy mutual funds that outperform both of them, that have long track records of outperforming both of them. And inside of the mutual fund prospectus, or if you're looking at the information online, they'll show you, you can pull up any mutual fund, pull up the details on that mutual fund,

it'll show you what its rate of return has been since it started on a trend line on a graph, and it'll show you the S&P trend line on the graph. If the S&P line is not below the other trend line, then don't buy it, right? Right. And that, you know, it's really a difficult thing to do. Not at all. So that's how I pick them. And I buy four types of mutual funds inside my retirement accounts.

Growth, growth and income, aggressive growth, and international. Hey, thanks for calling in. This is the Dave Ramsey Show. Our scripture of the day, Psalm 112, 6 and 7. Surely the righteous will never be shaken. They will be remembered forever. They will have no fear of bad news. Their hearts are steadfast, trusting in the Lord. Ray Bradbury says, go to the edge of the cliff and jump off. Build your

wings on the way down. Well, maybe. That sounds painful to me. Oh, James is in College Station. Hey, James, welcome to the Dave Ramsey Show. How are you doing, Dave? Better than I deserve. How are things in Aggieland? Pretty interesting, or at least unique for me, I'd like to say. I'm a young professional who's moved over here, this neck of the woods, and I'm just receiving a large inheritance that I received the first part of it, and I'll probably receive the next part in, I don't know, another year or two.

And I was just kind of looking for advice because I feel like the situation's, you know, different than a lot of other people. Yeah, well, not many people have that rich uncle. No kidding. So how much are you receiving now? How much are you receiving later? So I've already received about $100,000 to $125,000, and then I'm looking at another $200,000 to $250,000 within the next year or two.

What a wonderful blessing. Who is leaving that to you? Actually, my great-grandfather started off as a penny pincher and is building generational wealth. So, very lucky. That's amazing. Your great-grandfather. Wow.

So, are you single? I am. Well, I've got a girlfriend, but we'll see how that pans out, right? Okay. And what do you make a year? About 60 right now. Good for you. And how much debt do you have a year? About $60,000 right now. Good for you. And how much debt do you have?

I have none. Look at you. You're your great-grandfather's kid. That's excellent. He's proud of that, I'm sure. All right. How old are you? I'm 23.

Okay, good, good. Okay. Typically, what will occur in the next five years, statistically speaking, it's not a requirement, it's certainly not a law, it's just an observation of the way life unfolds, you'll get married and buy a house, typically. Okay? You may not.

You don't have to. Like I said, it's not required. I'm not saying that. But the point of that being being those are two major events, and both of them will require money. And so we need to keep that in mind while we're doing this. We would always tell you to have an emergency fund of three to six months of expenses. So I want you to have around $15,000 or so set aside for that. If you want to buy a home and pay cash for it at this stage, an inexpensive home, that's not a bad thing.

I would expect that when you get married, you probably would move again. And that's not unusual. It's not bad. It's just you kind of expect that. So because generally after you get married you find out you bought the wrong home yeah i'm anxious to buy a home my older brother is buying a home at this point but i just don't think it's right for me with you know with how accessible moving is for me in my field i'm a nurse i'm capable of moving anywhere. Okay. Then you don't have to then.

That's cool. My point is there's no rush. And I'm personally with you. I think it'd be cool if you wait three years to buy your place and kind of, quote, settle in or whatever number of years. And so once you've got your emergency fund in place and you're debt-free, then there's really nothing left to do with this money except three things, which is what you should always do with money. You should enjoy some of it, a small portion of it, not much. You make enough with no debt to enjoy your salary. You should give some of any money that you have and you should invest some of it.

And so the majority of this money, if I'm in your shoes, is going to be invested. And the portion that you know you're going to leave alone, you're pretty comfortable that you're going to leave alone at least five years. I'm just going to buy some good mutual funds with it. I invest in four types of mutual funds in my retirement and in my long-term investing, which is five years or longer, in growth, growth and income, aggressive growth, and international. I probably would set 100 to 150 of this in something a little more conservative than that that is growing some, but I'm probably going to pull that money out in the next five years and buy a house with it. And, you know, something along those lines. Again, it's not a requirement, and I would make sure I was settled in.

You like the flexibility that you've got now, and I think that's a bad, I mean, I think that's a good thing. I think I'd hold on to that flexibility for a while. I don't want to look up and find you 35 years old and still having not bought a home, especially in your situation because you're in such a great situation. So I would give some. I would enjoy some, and I would invest the majority of it, some of it towards a home in the future, maybe just a simple index fund, an S&P 500, no load. There's no commission. Just let it grow.

It's going to follow the market, whatever the market does. And then the the rest of it i would invest longer term than that just to build wealth with if you start at your age say with um around 200 000 of this and you invest it you know and it sits there for 40 years and grows at stock market rates of return which has been an 11.8 percent since it started, you're going to be so wealthy, it's going to be unbelievable. And it's a wonderful way to honor your great-grandfather's legacy. So sit down with a SmartVestor Pro is what I would tell you to do. Click SmartVestor at nayramsey.com. It'll drop down a list of the SmartVestor Pros in your area.

When you fill in your stuff, you pick out one you like or two or three and interview them. I don't care. And go from there and sit down with someone and start to learn about mutual funds, how they work, what they are, how to invest. And I think it's good to have two buckets of investing here, one with a five-year mindset for buying a home and one with a 40-year mindset for just becoming unbelievably wonderfully wealthy. All right. Aston is with us in Charlotte, North Carolina. Hi, Aston.

How are you? I'm doing great. How are you? Better than I deserve. How can I help? Well, I just recently, about three months ago, started the EveryDollar app. Love it. I'm meeting with a smart pro investor this week for my personal finances, so it's all great.

But my question isn't on the individual side of things. It is on the church or nonprofit side of things. And your opinion or perspective is, are there ways for churches and nonprofits to invest for them financially? Well, some people call that being endowed, where a university is typically a situation where you would see that happen. And it's where there's a large enough sum of money that the investment return off of that account so you had a 10 million dollar endowment that had built up and that money is invested in the investing the returns off that 10 million dollars will operate the thing in perpetuation and so the net the nest egg causes the non-profit to live in perpetuation off of that. You most often see that in a formal, large nonprofit,

or where you really see it a lot is in a university, where they're endowing even a professorship. There's enough money in this one account that the income is providing is paying the salary of a professor in whatever field, okay? And someone just felt like they wanted to make sure that university was able to pay that professor in perpetuation going forward and that kind of a thing. In the local church, I almost never see that, especially the evangelical world, okay, the local church i almost never see that um especially the evangelical world okay the evangelical church now catholicism has a lot of assets uh the vatican is very wealthy and so

that's a different a different mindset on it but in evangelicalism the vast majority of the time those of us sitting on that church board or that elder board, which I've done many times, would say the investment is not to be made in earthly investments, but instead into people and causing people to meet Christ and grow in Christ. And that's the investment that we want to make. And so the only actual wealth that is retained is the paid-for properties that the thing operates in or some retained earnings that are sitting there, some savings just to make sure that there's an operational buffer. That puts this hour of the Dave Ramsey Show on the books.

Our thanks to James Childs, our producer, and our associate producer and phone screener. I'm Dave Ramsey, your host. 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. Hey, it's Blake Thompson, Senior Executive

Producer for the show. You know, you can listen or watch anywhere with the Dave Ramsey Show app on your smartphone. Catch the full show or watch the highlights and check out Dave's upcoming guests. Head to the App Store and download it today.