The Ramsey Show - App - Dave & Rachel React to Stupid Instagram Advice (Hour 1)

Episode Date: September 8, 2022

Take our Audience Survey & Enter to Win a $500 Visa Gift Card: Click here to take the survey   Dave Ramsey & Rachel Cruze discuss: Gambling addictions, Helping a parent with their estate, Why borrowing money to invest is stupid (Dave rant).   Want a plan for your money? Find out where to start: https://bit.ly/3nInETX Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6   Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio, 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. We help people build wealth, do work that they love, and create real amazing relationships. Rachel Cruz, Ramsey Personality, number one best-selling author, and my daughter is my co-host today. Open phones at 888-825-5225. That's 888-825-5225.

So Rachel, if people are coming late to the party, last week we did announce that we have a new studio sponsor, Pods Moving and Storage, to which people might say, why? Would Pods Moving and Storage be on the Ramsey show?

Want to be on the Ramsey show? Well, I mean, who wouldn't want to be on the Ramsey show? That's the question. Everybody would, but why would we allow someone to be on the ramsey show well i mean who wouldn't want to be on that that's the question but uh everybody would but why would we allow someone to be here that we announce and broadcast for and uh promote uh a it's a wonderful company and the people that are in leadership is one of the things we always look at when we're doing an endorsement because if bad people are in leadership eventually the company's going to turn bad. And so we don't want to put our name on them.

So these are people that we've known. And the CMO, the team there is absolutely incredible. But that's not enough. It would need to bring value to pods. And it would need to bring value to you, the listener, to put a little moving truck thing up behind Rachel's head there. Oh, look at that. Had one of those out in the parking lot, a full-size one. Pods container.

I got to stand in it, got my picture made. It was good. It was a lot of fun. 23 million people move in the U.S. each year. One in five Ramsey listeners tell us they plan to move this year. And pods is a way to do it efficiently. They will set the pod on your driveway leave it there as long as you need them to pick it up and when they pick it up they pick it up with a podzilla so it's

picked up level they don't tilt it and all your stuff slide to the back and crash into each other and break everything they pick it up level set on there if you're closing on your new house didn't go right or something and you need to store it for a little while you can now if you do that with a regular moving company oh they're going to unpack the truck and put it in storage and then repack the truck and the cost is unbelievable so lots of flexibility with these guys it's an economical way to do the move you control the speed of the move and we are proud to have uh they you know they've had six million moves now at pods it's not a small company well they've grown a lot and i feel like i see them everywhere yeah they are everywhere and they've done a great

job with their marketing but their service is incredible um we got to meet the the local guy that's one of the drivers the drivers that bring the pod to your house and pick them up are employees they're not contract so they work for the team and they take great care for that podzilla to operate properly and will from antioch you know just over the hill over here broad hours over here we got to meet him and he had a great financial peace university story he'd been through fpu so good stuff and it's a good way to do this so we're excited to have pods as the new sponsor for the studio you'll be hearing more about that in the coming weeks and days as we let you know more and more things about it but it's a good thing kevin starts off this hour in nashville hey kevin welcome to the ramsey show hey mr ramsey

hey what's up um so 23 years old and um ever since i was about 17 i've been sports betting and it's just gotten worse and worse and worse and i've i'm in ga now and i see a therapist and nothing really seems to work and i'm just feeling really really defeated and you know hopeless and i was just wondering if you had any wisdom you could share advice i'm sorry man that's a hard thing it's the worst thing that's ever happened to me ever for people in America that don't understand

the fastest, the second fastest growing addiction in North America today is not cocaine or fentanyl or prescription drugs or alcohol, it is gambling online fastest growing addiction, second fastest growing addiction second fastest growing addiction first is porn and uh we deal with we deal with these numbers because we deal

with people's lives that are broken around their finances all the time due to this kind of stuff so we've talked to over 30 years a whole lot of people where kevin is kevin i'm not an addictions expert by any stretch you know that right absolutely yes sir all right so how long you've been going to ga um about three months and i've known that i should have been going a lot longer but i mean past is the past you learned that in ga all we do all we're worried about is tomorrow's a new day right yeah one baby step at a time right and so are you making all your meetings are you going yep i go twice a week um at two different locations so and i also see a therapist that specializes in it but for some reason it's just it's just so hard even with all of these things

in place so oh no it's not going to be easy um It is very hard. That's why we call it an addiction and not a problem. Right? If it was a problem, you could work through it. It's an addiction, and so it's got its claws deep into your soul, and you're having to pry them out a little bit at a time. So is your therapist moving the needle? Definitely improvements. I mean, like I said said i've been gambling for five

years and i will go you know a few days or a week or two now which if you told me a year ago that could happen i would say it's impossible um i just haven't been able to fully kick it like you said just the nature of addiction i guess but i have well it is the nature of it but we have to obviously write a new script for the future which is part of why you're calling um so it is the nature of it, but we have to obviously write a new script for the future, which is part of why you're calling. So what is the environment in which you're, are you online, FanDuel or whatever? Yeah, so it's online and I have, you know, casinos close by that take bets and bookies. And it's like, you know, everywhere I look, I could gamble. That's just how it feels.

Okay. What do you do for a living? everywhere I look, I could gamble. It just, that's just how it feels. So. Okay. What do you do for a living? And I'm tired of, yeah. So, um, I work for the government and, um, I have a college degree and I make 70 grand a year and that just makes me feel even more worthless because no one my age should be struggling. I should be, you know, doing the baby steps and here I am just fueling a betting account with every paycheck and you know that's just like the worst part of it all are you in are you in debt kevin because of the addiction um yes thankfully not not too much but i have about five thousand dollars worth of credit card debt because just recently they let you just put it on a credit card even okay in the last two weeks where did you place your bets um all online okay so what do we do to cut that source off

yeah so i i've excluded myself from um like the ones that are like legalized like you know like sandal and stuff like that but the issue for me is just that there's a thousand just online offshore you know oh yeah you can bet yeah i mean how do we how do we turn your computer off is what i'm asking for your phone yeah your phone i guess dripping me stripping me of electronics might actually you know well i mean for a while i'd be okay with that because if you're drunk you can't hang out in a bar right yeah you're right and like can't hang out in a bar, right? Yeah, you're right. And like I said, not only affected me financially, it's every relationship I have and my work.

I just feel so defeated. Yeah, and usually, Kevin, what we find too is that the addiction is a symptom. And so dealing with that symptom is really important, like what Dave is saying. But also, hopefully your therapist is getting to the point of understanding what's motivating that, like wanting that high, what that is giving you is for a reason. And so doing that personal work and digging in to those things, which I hope your therapist is doing, to get to the root cause is huge.

You know, I'd also plug into a celebration recovery class in a local church and get plugged in and start walking this on a spiritual angle as well that'd be my next thing man i wish i could be more help i'm not an expert but we'll pray for you and cry with you guys we really value the input from people who watch and listen to the ramsey show it helps us know what's important to you so we can deliver the right content that will help you with the questions and challenges you have right now. One way you can share your thoughts with us is by answering a few questions in a new survey we just launched, and you can check it out at RamseySolutions.com slash survey. Takes just a few minutes and you'll be in the running for a

$500 Visa gift card that someone that takes the survey will win. RamseySolutions.com slash survey. Rachel Cruz, Ramsey personality, is my co-host today. Let's circle back, Rachel. Neither you nor I know enough about addictions. I wish John Deloney was here today, but to speak intelligently into it, there's a few things we do know from having worked with addicts over the years. You know,

one is you do need to plug into a group and GA, he called it, Gamblers Anonymous is what that stands for. It's like Alcoholics Anonymous, but for gamblers. It's incredible. Celebrate Recovery is an incredible ministry with a Christian, purely Christian perspective, and

plugging into a good church is a wonderful group and process to plug into, and certainly the one-on-one therapist, which is what he's doing, is there. In GA, you need a strong, or in Celebrate Recovery, you want a strong sponsor, and the sponsor is the person who is going to love you when you fall down, but they're also going to kick your butt and hold you accountable and talk you off the ledge, so to speak, metaphorically. And, you know, having those people in your life matters. And then what you said before we went into the break is vital, that you dig into the

root cause, because the gambling is uh the drinking the gambling the cocaine use the whatever the surface addiction is there's always something under it that's uh that's causing it and that is always a a mental health thing uh it's a childhood thing it's a spiritual thing and it may be all of those yeah um it probably is all of those and so you know as people of faith we also have watched our lives be transformed by our faith walk and by plugging into a good church and setting up a new group of friends that weren't the old friends i mean you can't run around your drinking buddies anymore if you've got a drinking problem. And so if Kevin's running around with a bunch of guys that are still running FanDuel every day,

and all they're talking about is football, and they're Fantasy League, and they're betting on this, and they're betting on that, and so forth. And, you know, you've got to change your environment as well and then do set something up. Take the stuff off, the apps off your phone or set the phone down for a period of time or whatever it is whatever it is you're using to access that you've got to reset those things but that won't work eventually you'll find your way back

to it if you don't get down under the root and find it yeah and and really dig into that and that's some anytime any of us go through and we all do a a transformation at the character level at the spiritual level it's painful yes people do it to get out of debt they do it in their marriages they do it recovering from their childhoods it's painful there's nothing no pain quite like emotional pain. But it's necessary for the change because there is something to that. And again, I wish John was here sitting here because he's like the licensed therapist. But but to him, like to the spirit, to the spiritual side, which we both have the same faith walk. There's a point in our human condition that like when there's a little bit of that surrender of like I can't just keep pulling myself up by my bootstraps over and over like there has to be a transformation that occurs and I think when you can pinpoint that whether it's on a spiritual side

but also the emotional side right what are the things going on where's like the the anger the hurt the loan the things in your life that could be part of the thing that that's triggering this uh what are events in your life that have shaped who you are uh that you kind of go back to these places of habit that you don't even realize for protective strategies i mean like we are just complex people and i feel like more and more we uncover that and money ends up being a symptom for so much of that that's why here on the rooms you show like we talk about this stuff a lot not just addiction but um but the heart issues of

what's going on and our money is a tool in life that ends up being affected because of it but um but it's it but it can be a dark really hard spot but i do just want to applaud kevin for even calling and asking the question because uh you could hear it let me tell you this kevin i will tell you that um i've seen a lot of people be successful in walking away from this. We see a lot of success. There's other things that are even harder to break. I know this is hard. I'm not diminishing this, but, I mean, meth and heroin are just dadgum.

The percentages are very low that you get out of that alive. But gambling, people can walk away from. But gambling, people can walk away from. Porn, they can walk away from. With help and with treatment and, you know, engaging in the process. And it is a spiritual walk. It's popping in my head, so I'm just going to say it. Max Lucado's new book, Help Is Here, he was on yesterday talking about it. And it's about the Holy Spirit and the power of the Holy Spirit.

And, Kevin, I'm going to recommend that to you you and another one is heinz feet and high places that um is a very interesting read when you're in the soup and you are you're fighting out the soup right now and we're here for you man you call we'll talk to you anytime we love you and um and you know we're not gonna pull any punches with you're going to tell you the truth but um you're not alone we're going to walk with you but um but also we're not going to tell you that we have all the answers because we certainly don't thank you for the call though open phones at 888-825-5225 you jump in we'll talk about your life and your money patrick is with us in Montgomery, Alabama, except I pushed the wrong button.

Now I did. Patrick's in Montgomery, Alabama. Hey, Patrick, what's up? Hey, how you doing, Mr. Ramsey? Better than I deserve. How can I help? Well, so a quick background. We have about 40 acres and a cabin in North Carolina,

and my grandmother had owned it since the 60s. After she passed away, she gave it to my mother to take care of. She's been the sole caretaker for the last 30-something years. And she's getting up in age. And so she's thinking about trying to figure out a plan for the way ahead. And the only concern I have is she's thinking about splitting up the control over herself trickled down to me and my little brother and then her three sisters now with her having taken care of it for the last 30 something years there hasn't been really any arguments whenever something comes up that needs to be done or taken care of because she's been the single point of failure and then everything's taken care of or resolved does she own it with her sisters no it is all

in my mother's name okay so why does she feel obligated to drag them into this well do you know anything about the temperament uh orange gold green and blue? Yeah, yeah. Okay, well, she's a hardcore blue. Okay. And so what she wants to do is, you know, that whole family piece and, you know, getting everybody happy. I think she feels like if she puts it all in me or on me, that potentially somebody's feelings would get hurt. Yeah, but she's mistaken.

Exactly. She's pretty much guaranteeing with this ridiculous idea that that feelings are going to be hurt all the time yeah and you're stuck to each other so i would tell her mom listen i don't want in i'm out i'll opt out this is a bad idea mom i love you and i appreciate what you're trying to accomplish the way you're doing it i don't agree with i don't think it's going to work and i don't want to be stuck in it see and everything's paid off and it doesn't matter my wife and i we follow doesn't matter my wife it's always been paid off baby steps yeah it's taken care of and she's got a little uh i don't know if you want to call it a trust but she's got something set up she said don't worry everything that's not it for five years after i passed that's not the problem that's

not the problem yeah if you see a snake kill the snake don't appoint a committee on snakes exactly because what i want to do is try and set it up so that there's like a you know bbr or whatever it is so that basically it acts as a profit and it can cover the fees and cover all the expenses and nobody has to worry about it. She said, well, that'll have to happen after the sisters pass away because I don't think they want to deal with that. I'm like, well, that's not really their call. Yeah, yeah, or it is their call because I'm opting out. So, yeah, just tell them, no thanks, not going to play.

This is a barrel of fish hooks. Don't want to stick my hand in it. I'm going to out. So, yeah. Just tell mom, no thanks. Not going to play. This is a barrel of fish hooks. Don't want to stick my hand in it. I'm good. Going to get stuck. Yep. Sorry. Love you, mom. Don't love the cabin.

Don't love your sisters. Her sweet heart, though. Oh, she's sweet. She wants everyone together. She's a golden retriever. Everybody needs to be happy. She just wants to be together. And if they're not happy,

I'm going to be stressed, and I'm sorry, but you're going to be stressed because they're not all going to be happy. It's part of life. Oh, it's painful. This is The Ramsey Personality, my co-host today.

In the lobby of Ramsey Solutions on the debt-free stage, May is with us. Hi, May. How are you? Good. Good. Where do you live? San Diego. Wow.

Welcome to Nashville. Thank you. How much debt did you pay off? $79,500. $79,000? Yes. Okay. Wow.

I'm going to round that and call it 80. Well done. Thank you. How long did this take you? 33 months. 33 months. Your right. And how long did this take you? 33 months. 33 months. And your range of income during those 33 months? Well, I started at 57 and ended up at 115.

Whoa. Nice jump in income. What do you do for a living? I moved to San Diego. What do you do for a living? I'm a nurse. Okay. All right. And so you were a nurse before, but you just got a better gig yes all right cool very cool good for you so what was the 80 000 student loans

um mostly um 64 student loans i had a car debt credit cards and you know normal you were just kind of normal okay how old are you I'm 32 32 all right where were you living before San Diego Tampa what made you go to San Diego I became a travel nurse oh you're a travel nurse oh I used to I started as a travel nurse and then I ended up getting a job there okay good so how did you get connected to this Ramsey stuff the Ramsey way well in 2018 I bought a house and this guy came over to my house to show me the new appliances because they had just built it.

And he started talking to me about how great I was doing financially. And I just thought to myself, like, that is so not true, but sure. And so he started talking about Ramsey, and I started to listen to the show. And then I woke up one day realizing how bad of a financial situation I was in. And so I just thought that my only option was to travel because my income wasn't enough to even come close to pay for the debt. I couldn't afford

this house. The only way I was in it was because my parents were living in it and they were paying some of the mortgage and so I became a travel nurse and I got a job in San Diego and I started paying off debt and when the pandemic hit I was like this is my opportunity because now I don't have to pay interest and so it kind of sped up the journey and here we are. I'm so excited. May, that's incredible. Thank you. Incredible. I think it's always impressive when people just say, hey, on their own, they're like, you know what? I'm going to do something different. I'm actually going to change what I've been doing and I'm going to look at money completely differently. Okay. So how does it feel? Well, you know, it seems easy because I got a raise, but it was actually really hard because that was the biggest factor, but also

the hardest factor. Cause like, I think that what helped me the most was getting away from the people I was hanging out with. Cause everybody wanted to spend and travel because that's what we nurses do. And so once I left Florida and I was pretty much starting on my own, I lost my support group at the same time. And so then the pandemic hit. I was a nice nurse and it was really stressful. I was there by myself. I just wanted to go home and just go back to my family and forget this pain, that stuff. But I met my fiance now, and he was so supportive.

All of the outings, he had to support financially. And so, yeah. That's amazing. And still in the middle of all that, the word you used a while ago was that COVID was an opportunity. It was an opportunity it was an opportunity but a challenge at the same time it was it was usually are those two they usually go together yeah yes two sides to the same coin yeah yeah wow it was but i mean that it's interesting that when you're scraping and scraping and grinding and hustling towards a goal that something comes up

you can see it as an opportunity. But otherwise, you wouldn't see it as that way. Yeah, I would have been like, well, I can. So you sold the house in Florida, I take it. I did. I sold it, even though my parents didn't agree. Yeah, so they had to move. They did.

Oh, where did they move? They rented an apartment. Okay. So they survived your transition then. They did. They did and that had to be a little bit of a conflict in the air a little scary conversation i mean you threw your parents out that's hard kind of well it's hard i mean it is you it's a it was a grown-up girl decision i applaud you for but a lot of people would really really really not do that and they

should you should have done exactly what you did well I thought I was helping them and at the same time because I felt like once I did this I they will see that this is possible and so that was my thought my sister paid off her her student loans and my brother's also on the journey oh my gosh this is what I feel like this is why I did this yes well you've inspired the whole family then yes way to go good for you that's very very cool that's amazing okay so what would you say to someone in their early 30s that's just been living paycheck to paycheck they may have a great income but they're like this is just what it is like they're these student loans are always gonna be around you're always gonna have a car payment what would you say to someone that thinks i can't do what what May did? No, that sounds so hard. I don't think that's

possible. Well, I think the whole baby step concept is the trick because like you have to even because my brother's in the same situation. He just doesn't make as much of an income as I do. But he has his $1,000 emergency fund and he pays however little he can pay. And he's actually trying to work on improving or increasing his income. And so you just do what you can do. And then the rest, you know, you just get by with it. Keep pushing through. Just keep pushing through. For sure.

And you did it. 33 months. Yes. How does it feel to be free? Well, I feel like what I earned out of this was freedom. It was the freedom to make choices because now I can make choices that I couldn't make before. I ultimately want to, in the future, have my own business. And I feel like I would have never had even the thought of of having that

opportunity if I would still be in eighty thousand dollars of loans yeah so exactly right exactly right it is choices because what you do is you give up your choices that's why the bible says the borrower is slave to the lender you surrender your choices when you're over the oh all these people and um the good news is you broke free well done congratulations good work very very good work hey we got a copy of baby steps millionaires for you that is the next chapter in your story how ordinary people build extraordinary wealth how you can too we fully expect you to be a millionaire that's the next chapter for you and we'll give you a copy of this and financial peace university a one-year membership thank you you need to use that or you can give it away same thing with the total money

makeover book we're going to give you so you can use it or give it away whatever you want to do we're very proud of you thank you who was your biggest cheerleaders my siblings were my biggest cheerleaders because they would always be like um oh i want to buy this they'll be like is that on the budget no but yeah accountability partners too yeah very good hey you got them you got the whole family working on it you shifted the i mean you caused an earthquake girl it's very very well done very well done all right may from san diego 80 000 paid off in 33 months making 57 to 115 count it down let's hear a debt-free scream three two one i'm debt-free pretty incredible wow it's awesome fabulously done you know everyone's stories and situations

they're all different right and they all have glimpses of these moments that you're like oh that's just amazing amazing amazing but even just like you know i know she's engaged right now but even just as a single person like well i'm gonna do it at least when you're married and you're on the same team you have each other to like well and she was lonely and scared at some point through that process she said yes i mean it's a that was a hard road a hard 33 months and so i mean she can just say to herself like the pride of i did that like i i did that and i did the impossible of what people would say is impossible and it's incredible yeah she changed everything with that at 33 years old

moved all the way across the country i mean from tampa to san diego that's about as far a stretch as you can make right there. Worked at a hard time medically during COVID as an ICU nurse. But it always is interesting to me that, you know, the old saying Einstein said, he said, you know, I have plenty of luck, but it usually comes dressed in overalls and looks like work clothes, you know. And, you know, it's interesting to me that when you're in the middle of scratching and clawing for something,

that she sees COVID as an opportunity. Wow. I mean, if I was in the medical field at some points in COVID, I probably would not have seen it as an opportunity, but it was. It was a valid opportunity. A hard one. Yeah. A hard one.

Thank goodness we got people like her out there. I know. Such incredible stuff. Yeah. A hard one. Thank goodness we got people like her out there. I know. Such incredible stuff. This is The Ramsey Show. We'll be right back. Rachel Cruz, Ramsey personality, is my co-host today. This is The Ramsey Show. We appreciate you guys being with us. Our condolences to the royal family as the queen has passed. And very sad.

70 years. 13 presidents she entertained. Quite a... Well, she took the throne so early in life. Yeah, quite a lady, obviously. Amazing. Yeah, I mean, the amazing number of movies, books, everything else about her, about the whole process, pretty wild.

But sad, sad for the British people, sad for the world. It's a loss. It's a loss. So you sent me this silly thing this morning, and I watched it, and it's just like, oh, my God. These people. Okay. So what is this from? Well, okay.

So there's a thing called Instagram, if you're unaware. And it's my social media of choice. I don't really do Twitter. I don't really do Facebook. I don't really do Facebook. I just, I do love Instagram. I look at Instagram. Okay, so I'm in my stuff. So people will send me clips that are on Instagram

from like funny stuff to, you know, even their own journeys, all of it. And I see a lot of it because I do try to go through it. So this one clip has been sent to me. I'm not kidding. Probably 10 times from 10 random people over the world that are just like, can you believe this guy?

Can you, you know, this, this, this. And I kept seeing it come up. And so I had, I clicked on it. I was like, oh man, everyone, it's terrible advice.

I think it came originally. Maybe it was a TikTok video, but it's an Instagram reel of how we saw it. It looks like a TikTok video. And because there's, everyone's a financial expert on social media today, right?

And with investing, they all know what they're going to do and how to do and how you make money quick and all this stuff. You know, you got to do all this stuff. So here's a video. And it's a father-daughter, which you'll see. And I just thought, well, here's a father-daughter. And I don't want to harp on them. I want to harp on the situation.

I do. I know you do. Okay, let's play the Instagram reel. This is my daughter, Maddie. We're at a car dealership right now, and she's about to buy her first car. Tell me how you're buying your first car. This morning, I went to the bank. I got my first car loan.

I qualified for $15,000. At what interest rate? 3.5%. With the money that I have saved up. I have $7,000 in cash. I'm going to invest that into an Airbnb property and get 14% interest back. So that way I can use that money to pay off my car loan. So basically kind of getting a car for free.

Wait, Maddie, can you explain that one more time a little more simply? So it costs me three cents to borrow a dollar from the bank. And then I go and take that dollar, not my dollar, and I give to someone for 14 cents. And then so 14 minus 3, 11. So I keep the difference in the middle. Wait, what's that called? Arbitrage. Boom.

You buy assets that then cash flow and pay for your stuff. I mean, he's so proud. Well, I mean, he's so proud. Well, I mean, he's so slimy. There's a few things. You need to take a shower after watching that guy. Oh my gosh. It just drips in arrogance. Well, there's a lot of things about this.

Number one, I really don't feel like you can get an interest rate. I don't think you can get a loan. How old was she then? She's 15 15 she cannot get a bank loan no so he co-signed which probably helped get a lower interest rate and then yes what i don't understand is the eleven thousand dollars in an airbnb property you can't buy an airbnb property for eleven thousand dollars either you could invest in it with a bunch of partners into an airbnb property and that's assuming the airbnb property stays rented and the local city council doesn't pass a law against Airbnbs in which case your little butt would be broke at

15 years old because your father's a moron oh my god was I unclear no I was like we're not gonna harp on the people we're not too late to harp on the idea. Too late. But speak to the notion, though, because that stuff is everywhere that you get. You borrow this. You take that percentage and that difference, and you go get that asset and then this and that. And you play this game. Full disclosure, I had you on stage at 15 years old. Okay. Oh, what a slimy.

So full disclosure. So full disclosure. That is true. You have disclosure. So full disclosure. That is true. You are selling your kids books. The difference is the advice that we were giving was not so bad. And we were not as slimy or condescending, I don't think. Oh, my. It's called arbitrage, which is Greek for I'm stupid.

Oh, my God. Okay. But talk about that notion, though, because that... Well, it's... The idea, though... The set of assumptions you have to go through for all that crap to be true are absolutely ludicrous. Okay? Number one, you have never met a millionaire.

We studied 10,167 of them. Zero of them, precisely zero, said, I borrowed money on my car and arbitraged it into being a millionaire zero real millionaires do that zero zero none i borrowed money on my car and put eleven thousand dollars into an airbnb when i was 15 with all of my business acumen on display because she didn't even know what the interest rate was go back and watch the clip again she's well i i and they had to edit it what was it oh three and a half well tell them again matt tell them again darling what you did oh she don't even know what she did she really didn't she was a little parrot so you know number one but the whole concept

on assets listen you duber cars go down in value yes you can call them an asset if you want but they're not much of an asset and if you leverage your car to get rich you might never get there this is because mathematically is that's true but also the spirit behind it well mathematically it's you are not measuring risk and you're making a set of assumptions that a 13 year old 15 year old can borrow money at three and a half percent they can't you can't contract unless you're a legal adult and borrowing money is a contract in any state in the united states okay that's why a kid can't have a mutual fund you have to have a custodial account that's why a kid can't have a savings account or a checking account you have to have a parent on there as a custodian because kids can't contract they can't buy beer and they can't borrow money from a car dealer god um so now then once you've done all

that though let's just pretend you weren't a kid and you went and really borrowed money at three and a half percent here's the thing you have to follow factual causation find people who have actually done your theory find me one who 15 years later using that type of system is a millionaire or greater you can't find them because they're not there they're not there okay doesn't work let me ask you this question uh because there is again there's this this thing that is floating around in the culture there really is though that it's called stupidity i know i'm let. It's called stupidity. I know. Let me just present the stupidity, and then you can debunk it because you're really great at that right now.

Okay. If you just want to kind of be like, yeah, maybe you can have some wealth. That's what investing does. But if you really want to become super wealthy, you have to do these things, these jump through hoops, and you're doing math that most people can't grasp and understand because you're playing the game. I mean, this is a perfect example. The way he's-

It's called arbitrage. The way he's explaining it makes it feel like, oh, there's something I'm missing. It's a big word. And in order to build wealth and to become rich, there's other systems that I don't know about that can cause me to become rich. And is there a level of that? 30 years ago when I came on the air, the secrets of the rich were out there then. Everybody's got a book,'s seek seven secrets to getting rich

here's the problem it's not a secret there's not a magic sauce there's not a magic sauce mcdonald's special sauce is basically thousand island there is no special sauce okay there's not any it's it i mean you really you got to live on lesson you make you have to invest steadily over a long period of time and there is no like i learned a new word and that made me wealthy if you know maybe compound interest would be close okay but compound interest works over time with time and consistency so maybe that's a new word for him and he learns that word and that's a good word but you you know the the people that say there's a short they're looking for a shortcut i mean that's what it is that's what new word for him. And he learns that word. And that's a good word. But, you know, the people that say there's a short, they're looking for a shortcut. I mean, that's what it is.

That's what I'm saying. And they're brilliant. They're brilliant. They know things because they're on TikTok. And they know, oh, God, shoot me. I'm having trouble finding intelligent life on TikTok. We're going to have to get on TikTok, I guess. I'm not on TikTok.

That's not on my phone. I don't want it on my phone, but I guess we're going to have to put content on there to just mess with this toxic culture. We are. We're putting money out there. We're putting money out there. Or advice out there. But it's happening. This is The Ramsey Show.

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