The Ramsey Show - App - DAVE RANT: YOU Cause the Economy to Happen! (Hour 2)

Episode Date: August 19, 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 am Dave Ramsey, your host. Thank you for joining us, America.

It is a free call at 888-825-5225. You jump in. We'll talk about your life and your money. Again, 888-825-5225. Hey, guys. Everybody's talking about it out there. Everybody's nobody. The news everybody's talking about it out there. Everybody's nobody. The news media is talking about it.

Regular people are just going to work. But there's a lot of yakking going on, and so I'm getting some stuff on social media. Dave, is there going to be a recession? The Democrats desperately want a recession because it would help them elect a president. Because if Trump is successful economically, the Democrats are screwed. Is there going to be a recession? If I'm a Democrat, I sure hope so. If I'm a Republican, I sure hope not.

Oh, yippity, yip, yip, yip, yack, yack, yack, yack, yack. Listen, weather forecasters and economists are the only people who can be wrong all the time and keep their jobs. Okay? So, here's the thing. If the GDP, the gross domestic product, which is the number that represents all the goods and services produced in the American economy, the U.S. economy, if it is in falling mode, if it shrinks, the size of the economy shrinks, recedes, for two consecutive quarters, we call that a recession. That's what a recession is. It's not the boogeyman who's going to come to your house and take your children it's two quarters six months that the economy shrunk as a whole instead of grew

as a whole so really it's not the end of the freaking world what matters is what's happening at your house now if the economy continues to shrink instead of continues to grow, that's not good because people start to lose jobs because companies don't have income. They're not selling goods and services, so they don't need people to produce the goods and services, and the job market tends to shrink. But for the first time in economic history right now, we have negative unemployment. Now, the stats aren't showing that, but the real world out there is there are more jobs than people looking for them right now. And so it could shrink a good bit and still be very vibrant. Now, with Donald Trump, let me just tell you. vibrant now i was donald trump i listen and it's saying you can do it donald trump

let me just tell you the people in the white house do not cause the economy to happen you people out there in america cause the economy to happen when you come up with great new ideas and create new things and sell new things and make new things and make great things and cut great hair and run a great restaurant and make great shoes you are the economy donald trump is not the economy barack obama is not the economy and you can't blame the economy on ronald reagan george w bush because it's very hard to find that you can actually tie all the government things that they don't do because they don't do much they just sit up there and bitch all the time but the things that they don't do to the actual economy however it does swing elections famous words out of george bush's mouth it's the economy you know

it's the economy stupid right it's a it caught up with him right so um you know they do, it does swing elections, but the interesting part of that is that's because people actually believe what they do up there matters. What you do at your house matters a whole lot more than what happens at the White House. So I don't know if the GDP is going to shrink for two consecutive quarters. It would have to do it for one consecutive quarter first and it hasn't done that yet and so it will be at least six months before we see this now and so but economists economists economists yeah i know but let me just tell you they shut the schools down here because they thought there might be a thunderstorm that didn't come. You know, I mean, this is the world we live in today, the wussification of America.

And so the deal is very simple. If you will do the stuff I'm teaching, God's and Grandma's ways of handling money called common sense, you will prosper in good times economically, and you will prosper in down times economically. If you go to work and tell the truth and work hard while you're at work and smile while you're at work and don't be nasty to people while you're at work and be good to the customer while you're at work, you'll have a job.

Because most people can't even show up and do that. They forget to work while they're at work. They're too busy checking their freaking Facebook account instead of actually working. So here's a plan. You're going to be okay if you actually work. You're going to be okay if you actually have an emergency fund. You're going to be okay if you actually have an emergency fund you're going to be okay if you actually have investments you're going to be okay if you don't have any debt you're going to be okay if you live on a budget you're going to be okay so turn off fox news nobody watching cnn anywhere i tell you to turn them off dadgum ratings are in the back in the tank i tell you i mean turn off this the the abc evening news i don't even know who the guy is i haven't watched him in years or is it a girl now i don't

even know the only time i watch one of those things is if one of the remsey personalities are on it i don't even turn on the stupid television ziggler used to say i get up every morning i read the newspaper and read the bible because i can tell what both sides are doing. That's kind of what you need to do with your evening news or your Fox News. You watch CNN for the Democrats, you watch Fox for the Republicans, and if you watch both, we'll have to put you in a freaking rubber room. You're going to lose your mind. So much propaganda, you choke on it.

It's unbelievable. It's the state-run networks it's ridiculous they haven't had an original thought in years and you sit around you're going to decide you're going to sit around decide if you're in a good mood or if there's a recession coming based on that crap don't do that just do your deal what happens at your house is there a recession at your house have you had two consecutive downturns two consecutive quarters of downturn at your house you know what caused that it wasn't the white house it was you have you had two consecutive upturns are you in a bull market you know what caused that it was you you. I made money under liberals.

I made and lost money under conservatives. I made and lost money under liberals. Turns out that I was the variable, not the character, that some of you thought was going to bring you prosperity. They're not going to bring you prosperity. They lied. It's not in their power to give you prosperity. They lied. It's not in their power to give you prosperity. They lied.

Your congressman, your senator, your governor, I did this for the economy. Horse crap. You did nothing. You're a politician. You're not a producer of anything. You guys out there listening to me are the producers. So get about the business of not having a recession at your house, anything, you guys out there listening to me are the producers. So get about the business of not having a recession at your house, whether or not we choose to have one in the U.S. as a result of self-fulfilling prophecy of cable news.

This is the Dave Ramsey Show. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable, biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM, helps Christian families, churches, and ministries join together as the body of Christ to share their major health care costs. Christian Health Care Ministries is the original health cost-sharing ministry. A Better Business Bureau-accredited organization, CHM members share to pay each other's medical bills.

It's not insurance. It's Christians financially and spiritually supporting each other. It's what Christian Healthcare Ministries has done for over 35 years. And our members have shared over $2.5 billion in medical bills. To learn more, visit chministries.org. That's chministries.org. Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org. Thank you for joining us, America. Cord is with us in Idaho. Hi, Cord. Welcome to the Dave Ramsey Show.

Hey, Dave. Thanks for taking my call. Sure, man. What's up? Hey, so my wife and I, we live in a fourplex. Okay. We own the fourplex. We live in one unit. We rent out the other three. So we're working on baby step number six.

Okay. Right now, the fourplex, we owe on it about $390. It's worth about $600,000 to $625,000, seeing on some of the other ones that are around us. And we have about $100,000 in the bank account. And so we're wanting to pay off our house with cash. That's our plan. However, I've kind of run this idea past, you know, real estate agents and things like that, and they've all said to hold on to the fourplex, you know, when I'm, you know, 45, 50 years old,

that I'm going to regret selling the fourplex, and that it'll just be a cash cow for me, you know, going forward, and just take the $100,000 that I have and put that as a down payment on a house. So let me get this straight real estate agents suggested that you buy real estate and take out a mortgage no kidding well i mean you know in their defense you know in their defense it's what they all think it's how they think you're asking a dog if it's hungry i mean okay you know it's i grew up in the real estate business, and one thing about real estate people when it comes to investments, they do not have a risk meter. In order to get your real estate license, they take your risk meter out of your chest, they break it, and they put it back. They do not measure risk well in the real estate business.

That's why developers and builders and real estate people are always going broke. Yes, they make money, and there's a lot of money to be made in real estate, but that's why they're always going broke because they have no measure of risk. They have no ability to gauge risk whatsoever. And the scenario you just laid out would be perfectly fine if there was no risk associated with debt. But debt creates risk, period. And so I love real estate.

I own a bazillion dollars in real estate, and I want you to get you some real estate. But what I would tell you is you get your home paid off and then you buy your investment real estate. And guess what? There'll be a fourplex. If you want a fourplex, you can buy later. As a matter of fact, if this recession comes, it'd be a great time to buy, you know. So, you know, sheesh.

That's when I buy all my real estate, by the way. So I hadn't bought in years. I built this building we moved into, but that's the only buy all my real estate, by the way. So I hadn't bought in in years. I built this building we moved into, but that's the only money I put in real estate in a while. So anyway, what would I do if I were in your shoes? I probably would sell the quadplex. I think it served its purpose and put the equity with your money and pay cash for your first home. Can you buy a $325,000 house that you like? So, you know,

Boise's real estate... I know, Boise. Can you buy a $325,000... Don't tell me there's no $325,000 houses in Boise, okay? Okay, seriously. Do you want to live in a $325,000 house in Boise? That's all I'm asking. Yes, sir. We can find a $325,000 house. Boise. That's all I'm asking. Yes, sir. We can find a $325,000 house. That you would like to live in. That we would not like to live in. Okay.

The next house that we're going to be buying, we're hoping it to be 2,500 square foot and just be our last house. There's no such thing. Your last house is when you die. So there's no forever houses. You move all the – people move more than they think they move. So that's mythology. How old are you? I'm 29.

That's definitely not your last house. Okay. So what's your household income? I'm $125,000 to $150,000. Way to go, man. You're killing it. for you okay so what price range home is a 2500 2500 square foot home in the neighborhood you would like to live in um probably i mean 2000 square feet 1500 to 2000 square feet a little bit further out of town you

said 2500 square feet a minute ago the house want to buy, what's it going to cost? Oh, excuse me. I'm sorry. The house that we're looking at buying is probably around $400,000. Okay. All right. And you have $325,000 if you sell the quadplex, right? Yes, sir.

Okay. And so take you out a little small mortgage. You make a bazillion dollars. You're killing it, man. Knock that mortgage out in two years. Boom. Now you're debt-free, don't have a house payment or anything. How fast can you save money then?

Fast. And you save up and you buy your first rental property. You'll probably buy a single instead of a quad for your first one. That's okay. Save up and buy you a $100,000, $125,000 house and rent it. And then the rent from that and the fact that you don't have any house payment and the fact that you're a money-making machine, you're 29 years old, you make $150,000, $125,000 house and rent it. And then the rent from that and the fact that you don't have any house payment and the fact that you're a money-making machine, you're 29 years old, you make $150,000, you're killing it, okay?

You're just going to make money after that and just buy these things with cash. The first one's the hardest. The second one's easier because you got all that cash flow. Because let me tell you, man, think about it. Think about how much money that quad would make. What if you owned four properties and they were all paid for? If you had no payments on that thing. They'd cash flow like a bandit, man.

That's what my properties do. I just pile up money, man. It's just ridiculous. And that's where you're going to get to. You get a snowball working on your side. So don't listen to real estate agents about buying real estate because they're always going to tell you you should. They're always going to tell you you should take out a 30-year mortgage,

take out a 30-year adjustable rate mortgage because it turns out their commission is tied to the price of the house and they want you to buy more house. Go figure. Who knew? But it's not as much that as they just all get in the same rut and they all run down the same rut. They just stay in the same ditch. 30-year mortgage and adjustable rates.

As soon as rates go up, rates are down. So right now we'll talk about doing something, maybe a fix. But anyway, and just buy as much house rates go up rates are down so right now we'll talk about doing something maybe a fix but anyway and just buy as much house as you can buy

because you're trying and be sure you keep the mortgage because you get advantage of the taxes of the tax write off which means nothing anymore it's absolutely ludicrous

so I used to say all that stuff I got my real estate license when I turned 18 I told people that same stupid stuff and I was so wrong Lord that's one of my many sins

I'm going to have to be forgiven for Jesus so i didn't know i was lying to people but i was lying to people so that's the thing the um pay cash for your first time get your house go buy the 425 000 house take out a hundred thousand dollar mortgage you make 150 pay it off in two years and then start saving and paying cash for your rentals from this point forward. That's assuming you're debt-free and have your emergency fund in place. That's what I would do. Oh, wait a minute. That's what I did.

And it worked well for me. And real estate has helped my net worth a lot because of the way I chose to do it. I have never met a nothing-down guru that wasn't bankrupt within a decade. I did the nothing-down thing, and I was bankrupt within a decade. You're not going to get rich in real estate using debt. Todd is with us in Washington. Hey, Todd, welcome to the Dave Ramsey Show. Hello.

Hi, what's up? Thanks for taking my call. Sure. How can I help? Well, I've got a similar real estate question for you, so I may already know what you're going to tell me. But my wife and I went through the FPU class at our church and know that you're an advocate for zero debt and paying cash for your houses. We currently have one

rental house and, and the, and the home that we're in and we, there was two houses on one piece of property came up, uh, for sale less than a week ago. And the guy's asking two 85 for him. Um, my question is, do I, and he's willing to carry an owner contract. I've never done an owner contract, so I'm not too sure how that works, but my question is, do I refinance my rental to fund that investment, or do I give it a pass? Did you say you went through Financial Peace University? Yes. You flunked. You have to go back. Yes.

Alright. I told you and they'll never borrow money again. You remember that guy running up and around the stage with those chains and that cheetah? You remember all that stuff? That was me. That was me, dude. Alright. No, you're going gonna pass on this one if you're me you're gonna do what you're gonna do brother but this is uh this is our show and it's you're asking me what i would do same answer i just gave the last guy i'd pay get your rentals paid off get your house paid off and then start

buying more rentals with cash that's exactly what I would do if you like rentals. And obviously the last two callers did. So it's good stuff. I didn't know I was going to be on the air long enough that people would call and ask me, Are you still Dave Ramsey? Yep, still. This is the Dave Ramsey Show. All right. Scott is with us in Ohio. Hey, Scott. Welcome to the Dave Ramsey Show.

Hi, Dave. Can't wait to visit the new building. Thanks for taking my call. Thank you, sir. Look forward to having you. Absolutely. Got a what-if scenario on leaving a legacy. I don't know if I'm overthinking this and complicating things too much or not, but my thought is to go ahead and what do you think about setting up a trust that has money invested in mutual funds in all the categories and percentages that you recommend? And then that trust would annually pay out the gains to the beneficiaries. And as beneficiaries pass away, the percentage going to

the remaining beneficiaries or charities would increase until just the charities are remaining as beneficiaries. So you only want it to last one generation as far as family goes? Yeah, as opposed to paying out a lump sum. No, I'm saying if, let's say you had a daughter that had two children. When your daughter dies, her portion now goes to the charities instead of to her children. Right, correct, because we have siblings,

but we don't have children ourselves. Oh, okay, so you're not, okay. All right, I see. Well, now I understand. So you're leaving some to family members for one generation? Correct. Okay, that's cool.

No troubles at all. That would be fine. i would not do that until death though just set that up as an act of your will to form that trust and you can have the trust all drawn up um i have several trusts that are completely drawn up and completely every details combed out of them uh but none of them actually go into effect until i die yeah formed upon death right right? Exactly. Exactly. That way you don't have to run your business and your personal life out of a dad-blame

trust, which honestly is a pain in the butt. I've got a couple things in trust, but most of my stuff is not currently in trust. Do you know how to handle the trust outliving the trustee? How to have that happen? A typical trust has a the trustee, how to have that happen. A typical trust has a successor trustee provision. Okay. If the trustee is unable, unwilling to serve or doesn't follow through properly on the actual dictates of the trust, then they would be removed and a successor trustee is put into place.

And you just name how that would occur and how you would have them selected. A situation like yours, it's not unusual at all to use the trust department of a bank with what you're describing. Yeah, I understand. I'm not generally a big fan in family situations of using a bank trust department because they're hyper, hyper, hyper conservative. Like they want to put it all in their bank you know uh kind of crap right but i mean like mutual funds oh you might

as well be gambling you know that kind of stuff they'd lose their minds and so uh they're they take the fiduciary thing nutsy but uh but overall with what you're doing it's a predictable way to have a predictable successor trustee because you're not going to be using family members, I suspect. Yes, correct. Yeah. So it's either a law firm or a bank trust department is usually what is done there. I mean, there's other ways to do it, but, I mean, I've heard of people saying, you know, people in their denomination, you know, we're going to let the Baptists do it or the Methodists do it or whatever. I've heard of that kind of thing happening.

But it wouldn't be my choice, not that I'm against Methodists or Baptists, but the whole thing being that, you know, you want the thing to have somebody who has a history and experience doing it and or family that gathers people around them to have the history and experience. Mary Beth is with us in South Carolina. Hi, Mary Beth. How are you? I am good.

Thank you for taking my call, Dave. Sure. What's up? My husband is a teacher in Georgia, and they contribute, the county contributes or the state contributes 12% to his retirement account, which I know you say to do 15% annually. I say for you to do 15%, not the county. Okay. So my question is, do we make up that 3%

or do we need to do an additional like three percent plus an additional 15 percent okay what they put in is not relevant all that's relevant is what you put in you should put in 15 percent of your household income into retirement if you get a match on top of that or your company has a pension on top of that or your school system puts in some money for you, that doesn't change the 15% of you putting in 15% of your money into retirement. And the reason for that is very simple. All the money that these other people put in, you don't have any control over it. Right. The money that you put in, it goes into a 401K, it goes into a Roth IRA.

You have complete control of it and ownership of it. And so if the school board decides, the local county decides they're going to be morons goes into a Roth IRA, you have complete control of it and ownership of it. And so if the school board decides, the local county decides they're going to be morons and completely run the thing into the dirt and bankrupt the pension, then you still have money. Okay. And would you suggest growth stock mutual funds like you always suggest for other people? The 15% goes into growth stock mutual funds is what we suggest, and we suggest four types spread evenly, growth, growth and income, aggressive growth, and international.

And the way we decide to do the 15% is you just take your whole household income times 15%,.15, and that tells you the amount you're trying to get in there. And then what I want you to do is what we call rock paper scissors around here you rock is the first thing you do is you take a match if your company or your municipality whoever has a match on your 401k six percent or something like that you always go up to that first then the next step is you do anything roth whether it's roth 401k r TSP, individual Roth IRAs, whatever you want to do, Roth, Roth, Roth, Roth, Roth, Roth, Roth.

And then if all the Roth you can do and all the match you do does still not equal 15%, then you would do traditional. And so let's say you make $100,000 a year or $200,000 a year. You're trying to get $30,000 invested. Two of you can do two Roth IRAs at 6%. Your husband has a 6% match, $6,000 each. It would be $12,000 of the 30, but your husband has a 6% match, so we're going to put 6% into his 401K, and then we're going to do your two Roth IRAs,

and then that's all the Roth you have available because he doesn't have a Roth 401k at work and you don't have one at work, then you would go back to his 401k or yours with non-matching traditional as your third step all the way until you get up to 15% of your income, $30,000. So that's what I would do. Hey, good question. Thank you for joining us. Open phones at 888-825-5225.

A lot of parents think their kids have to go to college to be successful, and even more think the only way to get a college degree is with student loans. That's stupid. And that's why the typical graduate works away with the average is $35,000. The average of people with debt is more like $70,000 because the average includes people without any debt at all. See, here's the truth. Your kid can go to college without debt.

It has to do with college selection. It has to do with preparing. It has to do with a plan. And Ramsey Personality bestselling author Anthony O'Neill loves teenagers. He doesn't want them to be in debt. He's written a new book. It comes out October 7th. It's on sale now called Debt-Free Degree, the step-by-step guide to getting your kid through

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It comes out October 7th. If you do pre-order it, we're going to throw in the e-book for free, and we're going to send you two talks by Anthony, $40 worth of stuff, how to connect with your kid, and the entire Smart Parenting event, two hours of talks from Anthony O'Neill and best-selling parenting expert Dr. Meg Meeker. To pre-order, just go to DaveRamsey.com, AnthonyO'Neill.com. The book is called Debt-Free Degree. We've already sold thousands of them and we just launched it.

Of course it's going to be popular. Who wouldn't want the antidote, the vaccine, for a plague? We've got it. There's a plague in America called student loans. It's time to stop it. You can call Ramsey Concierge Team. They'll help you, too. 888-22-PEACE, 888-227-3223.

This is the Dave Ramsey Show. Well, guys, if you know anything about our show, we tell you the truth about credit cards. They suck. As in they suck the life out of your finances and your future. Oh, and they suck. And I've heard all the little excuses by you broke people. I get airline miles. I get points. Oh, brother.

What you need to do is you need to take control of your money. And you need to stop falling for all the stuff that makes their buildings tall and their furniture nicer than yours. Get rid of the gimmicks. The gimmicks are working, by the way. There's almost a trillion dollars of credit card debt. Just credit card debt. That's a trillion dollars of stupid. It's out there.

And you can't use your airline miles to fly out of debt in case you hadn't noticed. Doesn't work. Don't fall for all this stuff. Listen, I want you to go to DaveRamsey.com slash credit cards and find out how you can get rid of them. These banks are not your friend. These banks are not your friend. These banks are not your friend. I heard this ad coming in this morning. I was riding in the truck, and I heard this ad.

It was like, yeah, well, if you want to learn how to do a budget and you want hope, come to bankersUs.com. And I'm thinking to myself, that is the fox saying to the hens, come on in, boys and girls, let's play. Yeah, because banks and hope, this doesn't go together. All I hope is I don't ever have to go into another bank. That's my only hope, unless I'm buying it. Unbelievable, which would be kind of hypocritical since I trash banks all the time for me to actually buy one and make money on it. But there you go. A buddy of mine was starting one the other day, and he goes, you want to enter this deal?

It's going to make a lot of money. And I said, that would work. Dave Ramsey on a bank. That'd be great. Yeah, I don't think so. So he'll make a lot of money, though. He will. because you people keep giving him your money they are not your friend we'll help you do a budget why when did banks

suddenly start caring oh i know it's called competitive advantage i know it's an advertising campaign i know they don't really they don't really want you to have hope they just hope you give them some more your money that's all they hope so please don't believe want you to have hope. They just hope you give them some more of your money. That's all they hope. So please don't believe this stuff. I mean, really. These ads are just humorous. They're so absurd. Ad agency is trying to paint up a narrative where a bank is on your side.

That's a stretch. All right, let's go to Jack in Texas. Hey, Jack, welcome to the Dave Ramsey Show. Howdy, sir. Thank you for your side. That's a stretch. All right, let's go to Jack in Texas. Hey, Jack, welcome to the Dave Ramsey Show. Howdy, sir. Thank you for your time. Sure, what's up? I'm looking at buying a house cashier in a couple years, and I was just curious as I've started to talk to other people about it.

They've all started to suggest not doing that, taking the money you'd spend on it, and throw it at other investments that will make you more money. And I just kind of wanted to get your thoughts on why you would suggest buying a house cash or if you wouldn't, what you would put it in. I'm curious to get your thoughts on why you would take financial advice from a bunch of broke people. That's a fair point. Hey, listen, if you can figure out what fat people are doing and not do it, you probably will be skinny. So let's think this through for a minute, okay?

The data tells us, hard data, not just theory. We did the largest study of millionaires ever done in North America. 10,167 of them were surveyed. It's the largest study ever done. Not your broke friends, but real millionaires. Real millionaires. People who have a million-dollar net worth or greater. Chris Hogan did the book off of it called Everyday Millionaires.

It's full of stories and 140 statistics of the millionaires. And so if you want to be a millionaire, what they have to say as a group, 10,000 of them, the data from that is important. Would you agree with that? Yes, sir. And it's more important than what Dave Ramsey says, by the way. Because I'm just a bald guy with an opinion. people that do one thing and do it well and you can extract from that data points that are consistently showing up like in excess of 50 or 60 percent of the time you have statistical evidence at that point that's what a research project is for and so that's why we did it because we wanted

to know if my opinions that i've been teaching all these years and what i believe to be true and how i've lived my life and it worked for me, actually worked across a series of real millionaires. And what we found was not 50%, not 60%, but north of 80% of the millionaires. That's like statistically almost all of them. You know, I mean, you look at a political poll, if they get 51% on something, they call it a touchdown them you know i mean you look at a political poll if they get 51 on something they they call it a touchdown you know but i'm talking 80 85 here's the thing we found okay 85 of them said that they paid off their homes very quickly and the average was 10.2 years so a paid off home

is a big indicator towards becoming or being wealthy. The second thing we found was 93% of them systematically invested consistently into retirement plans, into good mutual funds. The paid-off home and the consistent investing in a 401k, Roth IRA, those kinds of things is what caused people to be wealthy. So that is the actual truth that the data backs up. So having said that, what I have said all these years was backed up, and it was that it turns out your income is your most powerful wealth-building tool. And when you don't have any payments, no house payment, no car payment, no MasterCard, no student loan that's been around so long you think it's a pet, when you don't have any payments no house payment no car payment no master card no student loan that's been around

so long you think it's a pet when you don't have any payments you have money and you get to become very wealthy fast so at your young age jack if you can pay up cash for your house you will be very wise let me tell you how many of the millionaires that we interviewed that said, what you should do is borrow as much as you can on your house and invest that money because you can make more investing than you can than you would pay out an interest. Let me tell you how many of them out of 10,000 said that. Zero. That's statistically significant. Zero. that's statistically significant zero not one said you ought to buy real estate pay cash for it

and or buy real estate and borrow as much as you can on it instead of using your money to buy the real estate for cash instead of doing that put the money in an investment and just keep your real estate mortgage your whole life because investing is always better than a mortgage than paid off house exactly zero percent said that not a single one out of 10 167 suggested that your broke friends were on track so that's why that's why i say that is because the evidence is here of 30 years of me doing this and the evidence of talking to real millionaires and these millionaires were not just in our tribe 50 of them were in white space meaning they could not spell dave ramsey they didn't even know who i was these are just millionaires it's just simple and they just

borrow money no they look at you like a german shepherd turn their head sideways what you know and no borrow money no here oh by the way for the rest of you oh hold on i'm going to give you a copy of that book jack uh everyday millionaires because you're going to be one and you are on your way man if you just if you just go with your instincts because you have good instincts and go with that stuff instead of this other garbage uh hold on kelly i'll pick up and we'll give you one of those. You guys know what percentage of millionaires inherited enough money to become a millionaire? Less than 9%. 91% did not inherit enough money to become a millionaire.

Of the millionaires we talked to. Oh, the only way to be wealthy is inherited in America today, so the wealth must be punished because i have a political agenda yeah well the problem is you don't have data and so you're living in the land of mythology the truth is that out of 11 million millionaires in america today somewhere north of 10 million of them started with nothing did not inherit anything or if they did it was not enough to be of help they might have inherited five thousand dollars or ten thousand dollars 79 of the ones we interviewed inherited zero and the rest of

them not enough to help it was just kind of a tip of the hat when granny died i got 6300 bucks or something that's an inheritance but it didn't exactly make you a millionaire. So where does wealth come from? It comes from you. Controlling the person in your mirror. You're the problem. And you're the solution. This is the Dave Ramsey Show. Hey guys, it's Blake Thompson,

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