The Ramsey Show - App - Dig Yourself Out of Debt Faster With a Bigger Shovel (Hour 1)

Episode Date: September 17, 2021

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🎵 Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show, where dad is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host, Ken Coleman, host of the Ken Coleman Show, where he talks about careers and jobs and getting into a workplace that you love every day, is my co-host today, Ramsey Personality, number one best-selling author of the book, The Proximity Principle. Again, open phones at 888-825-5225 now we talk all the time ken about

the outgo side of the equation okay what do you do first what do you do second baby step one baby step two maybe step three and we also talk about things that aren't predictable which is what happens when you're in the thick of baby step two and find out you or your spouse are expecting. Or about the time you start working on your money stuff, you lose your job. That can be scary. Very scary. And so what we do is on the Ken Coleman Show, we're coming at this big shovel thing. And the reality is when you all listen and watch the debt-free screams that happen every day on the Ramsey Show, you almost always see an increase in income during that time.

And people go, hey, I've got to go make more money to drive that gazelle intensity. Sometimes it's part-time jobs, but sometimes they just wake up and go, you know, I need to talk to my boss about a raise. Yeah. Or I don't really like this place. I'm going to go get a different job. Yeah. But the whole getting out of debt thing caused them to reassess their career. That's exactly right.

And doing what you love is possible. In fact, Dave, you can make the income you need and the impact you want. And that's what we talk about here at Ramsey Solutions. We talk about work that matters here. That's an anthem that is on the big screen. If you come and like we've got hundreds of people in the lobby today. Work that matters. This is the idea of doing something that you're good at, that you love, and that produces a result, the product or service, whatever the company does, that means something to you. And you can actually pursue that, and you can get there even if you are walking through the baby steps.

And many times, it is that pursuit which makes you more money, which gets you out of debt faster. So let's go to the other side of the equation. That's the maximized self-actualization side. Let's go to the other side. Like, I need some money to eat because I lost my job. That's right. I need some money to eat right now. That's right.

So you want to focus on just getting some money. That's right. So here's what you do. You lock that into one part of that three-part equation. You go, what do I do really well? Think of those as power tools. When you show up to do a project at home, you want the best tools because you do the work more effectively. And that's what you have to offer the marketplace.

You focus on, hey, I'm really gifted here. I've got some talent. And if I offer this talent or I make this talent sharper and I turn it into a premium tool, guess what? I'm going to get paid more. I'm going to have more opportunities, maybe even side hustles to make even more money. So when it's just I need a better job to pay me more to get out of debt, focus on that talent part. That's what you were created to do because you're really good at it.

That's where you can make money quick. Quick? Right now. And get started. Right now. And get the wolf away from the door. Then we can pivot. We get out of debt and we go, okay, now I've been putting everything into my debt.

You start asking questions like, when can I start and when's the first paycheck? I mean, because I'm hungry right now. That's right. So what you have to focus on is what you bring to the marketplace that you do really well. Because people will see that and they will pay you for that. And then after we get out of debt, get that baby step three fully funded, now we can begin to look at what's the transition to do work that I really love that produces the results. So we're going to help you wherever you are on the journey. Big shovel.

Hey, let's get that shovel bigger so we get out of debt faster. Live like no one else so that we can live, give, and work like no one else. Yeah. It's all tied together. The hole that you're in is the mess that you've made, and we always call it the shovel-to-hole ratio. That's exactly right. I have $60,000 in debt. Okay.

I'll make $20,000 a year. Uh-oh. That's right. Or I have $60,000 of debt and I'll make $200,000 a year. Oh, big shovel. That's right. Medium-sized hole. Yeah.

Tiny shovel, big hole. That's right. I mean, the shovel-to-hole ratio will give you an indication of how quickly you're going to get out of that, how quickly you can put these financial hard times behind you. That's right. And so we often say stuff like, you need a bigger shovel. That's right. One of the ways to get that doesn't always mean leaving a career. You could just get promoted.

That's stage five of my seven stages to doing work you love. Stage five is get promoted. How do you get promoted? Well, you've got to know your role, get really clear. When's the last time you had a conversation with your leader to say, what is expected of me? I want to win here. Help me understand how I can drive more results. Leaders don't get that conversation much. And you might be surprised at how they go, wow, that's awesome. Because if you're winning folks, guess what? They're winning. And so get promoted. Hey, here's another thing.

Develop some qualities. What are the most promotable qualities according to LinkedIn right now in 2021? You ready for this? Dave, it's adaptability. So, hey, you know what that means? That's a fancy multiple-syllable word that basically means I can handle change. And as you know, change is hard for all of us. Why?

Because change makes us confront the unknown day man i just i don't even want i do not make me get another phone right i have to learn all this crap over again yeah put it and they just put new software on my dad blame computer this week and it's just i think i'm gonna office space the thing only with a 45 caliber oh my god i don't like change i'm not promotable. I'm not adaptable. I hate this crap. Right.

That's right. And yet you're a CEO. How important is it? Oh, actually, I am adaptable. I know you are. Except when it comes to freaking technology. Well, that's right. Your squares are different colors on this computer, folks.

Shut up. Everybody say a prayer for Dave. He's struggling right now. Just shut up. But see, adaptability is a learnable skill. It's a muscle. Okay. Wait a second. In this economy, with technology always advancing, adaptable people are attractive.

Does that include the thing of, I'll help with it even though it's not my job? Is that adaptability? You'd better believe it. Because there was the old thing, the old guy, back in the 70s, there was a sitcom, and the guy would go, not my job, man. It's not my job. That's right. would go not my job man it's not my job that's right it's not my job that's right and you're you know i'm always in so i'm always amazed when i go in some business and you can't beg them to take your money yeah you know and and

you're looking at three people standing there looking at you and you're like would you take my money that's right it's like it's not my job man that's right i'm here to do something else no by god you're here because of the money. Yeah. It is your job. Adaptability really is an attitude. I mean, we call it ability, adaptability, but it really is an attitude that says, you know what? Change is a part of life.

It's going to make me uncomfortable. It's a great book written on change, and that's Who Moved My Cheese. Fabulous book for anybody who wants to really develop this muscle. But adaptability is just one quality that makes you promotable. Here's another one, likability. How about just being more likable? How about reliability? Don't look like you're a winged on a pickle. That's right.

Smile. You talk about this all the time. Hey, smile. If you're happy, notify your face. Yeah, have a conversation with somebody. Hey, leaders, if you want to move up the leadership ladder, here's two questions. You ready for this one? Hey, talk to your people regularly and ask them these two questions. Number one, how are you doing? And it's not the how you doing when we

cross each other in the hallway that's a greeting and everybody just goes, great, great, and then we move on. It's sitting down with them on their desk intentionally. You're having a meeting with them going, hey, how are you doing? How are the kids? How's everything going? How's everything going in the gig here? And that leads to the second question, which is, how can I help you win? You want to get promoted as a leader? Ask those two questions on a regular basis and watch your effectiveness as a leader and the impact you have on your people absolutely skyrocket. Because the first one's about connection. Dave, the second question is, they trust you now and they will begin to tell you, hey, here's how you can help me win.

And that's what leadership is all about. So the idea is you can be shiny or you can be dull. And you just need to decide to be shiny. Be shiny and watch the money come in. Because people are like bats. They go after shiny stuff. We'll be right back. of meeting health care costs through Christian Health Care Ministries. Christian Health Care Ministries, or CHM, is a nonprofit organization that helps members carry one another's burdens with health care expenses, and they have successfully shared each other's medical bills for nearly 40 years.

See if CHM is right for you by visiting chministries.org. CHM is a proud sponsor of Dave Ramsey Live Events. Ken Coleman Ramsey Personality is my co-host today. He's host of the Ken Coleman Show on over 75 radio stations. a big-time podcast and YouTube show where he answers questions about your career, getting a job, getting in the job and in the career field that you love and are passionate about, and exactly how to execute and get that stuff done, real-world tactics like we're kind of known for around Ramsey. So, again, 888-825-5225. Let's go next to Brandi in Wilmington, Delaware.

Hi, Brandy. How are you? Hi, I'm great. How are you? Better than I deserve. What's up? Good, good. So I wanted to see what you recommend.

I've changed companies three times in the past year, and I have two 401ks still sitting with the company that I used to work for, and I wasn't sure what I should do with them, if I should roll them over or consider an IRA. What would you suggest? I would roll them to an IRA with a SmartVestor Pro. They'll help you pick out some mutual funds. Always take your retirement with you by rolling it to an individual retirement account in good mutual funds if you have it available to take with you, and you do in these cases. The reason is that your new 401k at your new company probably is good. It probably

has eight or ten decent good options, but again, if you will just put it in your name, A, you've got more control, more access, you'll watch it closer. And B, you have 8,000 mutual funds to choose from in an IRA, not just 12. And obviously with a field that wide, you can probably get something that will outperform or perform equally to your current 401k, but probably outperform it. Okay, perfect. That was what I thought you would say, but just outperform it. Okay, perfect. That was what I thought you would say, but just wanted to check. So thank you so much for your time. Thank you.

So, Ken, what you don't want to do is you don't want to have to go back to your old company and talk about your options and moving stuff around and resetting things with an HR team or the payroll team at the old place. It's just awkward. Yeah uh awkward yeah a little weird hey i know i left but i've got some unfinished business oh i need you to help me out here right i need you to do i need you to do some work for me yeah you need to fix this yeah that's just you just get into all kinds of issues there. So, yeah. Open phones at 888-825-5225. Renee is in San Jose.

Hi, Renee. How are you? Good afternoon, Dave. Thank you for taking my call. Sure. What's up? I'm 47 years old, and I need help finding motivation to work for another 13 years until I'm 60 years old. I'm going to try to preempt your questions.

I have about $2.1 million in various 401ks and about $1.6 million in stocks and bonds and a $20k savings emergency fund in my bank. As I said, I'm 47 years old. I've never married, no kids. I support my parents who are in their 80s, and I have no debt. My three houses are paid off, and I've paid off my medical school loans. I make about $200,000 a year as a doctor, and in the context of my parental caregiving responsibilities, I met with a financial advisor last year to ask how it would be financially if I had to stop working in order

to care for my parents in the setting of COVID. And she said I could stop working and have enough money to support myself. Now, if I work another 13 years until I'm 60 years old, I'll get free health insurance for the rest of my life. And I can start receiving my pension at age 60 years instead of at age 65 years. What do you like about your work? What do you not like about it? Thank you for asking. I love my job. I love seeing patients. I feel so blessed. It's such a privilege. If I had to take care of my mom, I don't know if I could work at the same time. I wouldn't want to put her in a nursing home because then I wouldn't be able to see her. You don't need motivation to work for 13 more years if you love everything about it. What is it you don't like?

What do I not like? Well, work is overwhelming these days in the setting of COVID. I always work more than my paid hours, and I accept that. If I truly didn't feel the need to work, I might go to medical, sorry, music school. I play the piano and the violin, and it's always been a dream of mine to apply to a music conservatory. Yeah, you know, Renee, here's the deal. You are a renaissance woman. Yeah.

$3.7 million, you're a doctor, and now you want to go to a music conservatory. Is there anything this woman can't do? You're amazing. Yeah. Everybody's going, oh, I feel a little bit worse about myself, including me. But, Renee, you know, Dave's right. You don't need motivation. You need a mission.

And I think you've got to say, it's okay. I think you have to let yourself off the hook. I've heard these calls before. Is there some sense of, and I don't want to use the word guilt in the normal sense that we use it with like you did something wrong, but is there some sort of guilt or shame that you have when you allow yourself to envision not being a doctor because you do love taking care of patients, but you've got this other side of you that you want to explore? Is there some sort of guilt or shame you're dealing with?

I wouldn't call it guilt or shame. What would you call it? Lost opportunity. Yeah. All right. So if in the next 13 years I develop arthritis or lose my hearing, will I regret not having taken the chance of getting my skills in place and auditioning and trying? I think the answer is yes. That's what I hear.

What do you think the answer is? You think it's yes? You think you'll regret it? There's a high chance I would regret it. I mean, there are other outlets for music. It's just that our local orchestras and string quartets aren't meeting currently. All right, let me ask you this really quick. Let me ask you this.

What kind of a doctor are you? General practice? Is there a specific type of medicine you do? I'm an OBGYN. I deliver babies. Okay, that's awesome. So therein lies the extra hours, right? You just keep delivering babies.

I think you're at a position, professionally and financially, where you could draw back a little bit and not work as much as you are and begin to pursue some of this. Cut your practice in half. I agree with that. And pursue and get the best of both worlds. Get the joy of delivering babies that you still have joy from and you love your patients. But you're just doing too much of it and it's got you boxed out of doing other things you want to do. Cut your practice in half. You can afford to do whatever you want to do.

If you're asking us mathematically, your financial advisor is right. You can quit your job and, you know, you can figure out a way to live on $3.7 million. I think you struggle through here. But I think you get too much joy and satisfaction from your medical career. I think you just structured it to where it's eating you alive. It's just eating into what you really want to do. I think you do what Dave says, Renee. Here's why.

Let's say you cut back on the practice. Guess what? There's always going to be more babies. So you can ramp up. This isn't a risky situation here. Dial in a little bit. Are we going to have a COVID generation that are all born because people are at home? Renee's the one to ask.

I think we're seeing that, aren't we, Renee? A baby boom? Actually, it's actually the opposite. People don't want to be around each other. People don't want to be around their livelihoodss uh there is some increased domestic violence unfortunately yeah i knew that economically um due to job loss and uncertainty health insurance loss we've actually seen a decrease in the number of babies born per month yeah wow okay So people are, yeah, wow. I never thought about it. I just, wow.

Okay. So anyway, yes, I would pull back. I would give you permission to cut your practice roughly in half or more. The only reason I wouldn't quit completely is I also think you'll regret that because I think you get a level of joy out of this. Yes. I agree with that. Thank you for that. The three of

us are on the same page. So I used to make over 300K, which was my base pay. And I had given up operating, which is doing surgery on women. And as of last year, I did give up labor and delivery. So I'm no longer on call on weekends, nights and holidays. So I went from full-time, which is, in doctor's world, 80 to 90 hours per week, to part-time, which is about 50 to 60 hours per week. And that gave you some relief, but you're still going hard. Yes. You're still going hard. So I don't know what portion of the practice.

I don't know how to parse out an obese practice. But I would parse it out in some way to where you cut back to, I don't know, whatever you want to call it, 30 hours or whatever. I would keep my toe in that water, though. I don't think I would walk away cold. And I don't think you have to to explore the music stuff. Because, as you said, some of the music is coming back a little slower than other areas of the culture. And so I got lots of friends in the music business here in Nashville, and they were kind of wishing that it was going better. A lot of them are struggling.

So, yeah, this is The Ramsey Show. Ken Coleman, Ramsey Personality, is my co-host today. This is The Ramsey Show. I'm Dave Ramsey. Mikkel is with us in Seattle. Hi, Mikkel. How are you? I'm good. How are you guys?

Better than I deserve. What's up? Well, I have a question that I feel like is probably splitting hairs, but I wanted to know what you would advise. We currently have a 20-year fixed rate mortgage, and I'm wondering if we should finance down to a 15. Not for that reason. Only if you get a better interest rate.

Because if you take a 20 and you calculate what the 15 payment is and you just pay that much extra, it'll pay off magically in 15. Sure. So you don't have to refinance to do that. So what is the interest rate? Currently, it's 375, and I talked to Churchill, and they said they could get it down to 275. Okay, what's your loan balance? 235.

Okay, so 1% saving is $2,350 a year, right? Mm-hmm. And if it costs you $5,000 to refinance, you get your money back in two years. If it costs you $7,000 to refinance, you get your money back in three years. So you don't make any money until you get your money back. Okay. So are you going to be in the house a while? Yeah, for a long time we plan okay

all right i probably would refinance it and while you're at it put it on a 15 but you don't need to if let's say you had a two seven let's say you had a three percent 20-year mortgage i would tell you just sit on it and pay extra okay you don't need to go to the refinance cost to pay it off early you just pay extra and it'll pay off early but you refinance you refinance if you can save not sending them as much money as you used to do you know as you used to send them and so um you know in other words you're going to send them two thousand three hundred,350 less per year for the next many, many years until you pay the thing off, 1% savings per year. So I'm refinancing that if you're staying. And while you're at it, do it to a 15.

Charlie's in Los Angeles. Hi, Charlie. Welcome to the Ramsey Show. Hey, Dave. Thank you so much for taking my call. Really appreciate it. What's up? I am a small business owner out in California,

and I've been luckily a pretty rapidly growing company over the past six years. And I'm dealing with an employee of mine who is my general manager, I think has a bit of a spending addiction, which is making me kind of wonder if I need to feel obligated to give him a raise, or if it's best just to let him go when that time comes. If I can give you a bit of a background on this gentleman, he's in his mid-30s, three kids, works full-time for me 80 hours a week. He's a great asset to the company, and he's been in this management position for just over a year.

80 hours a week? 40 hours a week. My apologies. Oh. I'm on the buy list. Yeah, sorry. 40 hours a week? 40 hours a week. My apologies. Oh. I'm on the buy list. Yeah, sorry. 40 hours a week. Okay.

Now, the issue is that he left my company before when he was a warehouse packer. He came back and he worked up to his management role. But since then, he has about $150,000, I estimate, conservatively, in cars and automotive toys. He kind of mentions and complains about money and stuff, but not really in like a, I'm expecting a raise type thing. I try to give him raises organically without him asking to award good work. What's he make? He makes $45,000 a year.

Okay. And he just kind of casually in conversation asked me if he could start leaving earlier Monday through Friday to come in a bit on Saturdays so that he could work a second job. And just because he has left the company previously, I just kind of wonder, you know, I'm not going to try letting him go, but if he does ultimately say that he wants to leave, should I try to keep him around or focus on my younger staff who have good potential and don't have as much? How many team members do you have total? Right now we have 15. Okay, cool. Yeah, the question I have for you, Charlie, is forget the finance issues. Is this guy a great leader for you or at least a good

leader with tremendous potential? Let's set aside just for a moment your concerns about his spending and him asking around about a raise. Is he a quality team member that you think if he's healthy you could develop him even further up? So the thing about my small company is that it's all been a learning experience kind of for all of us. He didn't really have any managerial experience, but he's been doing a great job of learning. But what I really value about him more than anything else is that he cares about my company, treats it like it's his own, and I feel like Doug genuinely wanted to see the company do well. Well, I've got to tell you, that right there to me is one of the greatest characteristics of somebody, that they care deeply about your company. And so he's unhealthy financially.

And I would sit down with him and have a man-to-man, but come at it not from a judgmental standpoint, but to say, hey, here's what's going on. I don't have all the facts. Here's what I think I know. Help me fill in the blanks. And here's why I'm bringing this up. I care about you because you care about this company. You've done a great job and you've learned and you've grown and you're mentioning some things here and there. Why do you need more money? And here's what a development plan might look like. And here's how you'll keep getting raises and share a vision for

him and see where he's at financially and see if you can help him and pour into him. Listen, I'd get him financial peace. I'd put him through it and coach him up if he's willing to do that. Show him how if he gets his spending habits under control, how it will change his entire life. I'd be willing to have that conversation if I were you because of what you just said about this guy. I think he's worth investing in. Now, I think you've got to have a point where you get to where you say, all right, I've invested and I've coached, and now it's up to him. And if you feel like it's too big of a divide and he's not going to get there and you feel like he can no longer be the employee that you need, then you move on. But I wouldn't try to anticipate him leaving. I think that's managing and leading out of fear versus being proactive so when we're doing entree leadership when we're doing entree

leadership out in dallas um pat lincione said there is no such thing as uh any kind of leadership except servant leadership and so if you're going to lead him, then you need to care enough to serve him. And how are you serving him? You've got to sit down and go, dude, $45,000 income, $150,000 in toys, this doesn't work, okay? This doesn't work. You're not in Congress. You have to stop this.

For your sake, you can't win doing this. And I love you, and so i'm just trying i'm just looking at you man to man friend to friend and going i'm going to serve you well and so you know i've had and our leadership team have had conversations with people inside of our organization over the years uh almost on a weekly basis someone we sit down with and say, listen, I love you too much to just not tell you this. You've got to know. This right here is killing you. This is hurting you.

And so, because here's the thing, you're serving him. Then what you've got to do is you've got to go, okay, if he has a lack of judgment over there, how long before that lack of judgment, regardless of how much he cares, enters into our organization. If his critical thinking skills have got him this far in debt, I mean, he's going to start making stupid butt decisions at work too. And so we've got to get him off the stupid butt train and get him on the train where he can learn.

And that's just loving the guy well. That's serving him. When I serve my children and they're growing up, it means I teach them how to behave and function in society. It doesn't mean the inmates run the asylum because I love my kids enough to serve. I'm going to serve you. I'm going to make sure you know how to drive a dadgum car before I give you the keys. I'm going to make sure you know how to behave and say, yes, ma'am, and yes, sir, and thank you and gratitude and, you gratitude and you know all you know that kind of a thing and so you're serving someone by

loving them well and by having hard difficult conversations with them you got to sit down in this situation you say hey you're looking for a second job that means more work hours a week more time away from your family and this is all because you're not showing discipline over here. And when you show them you're teaching, you're guiding, you're instructing, shoot them straight. I'll pay for you to go. I'll pay for your Ramsey Plus membership, and you go, you know, that's what you tell them. And you go, I'll walk with you, and I'll coach you, because I think you've got huge

rock star potential as a leader because of your passion for this place. And I really want to pour into you and lift you up. Yeah. And you can set a model in place then on how you lead people for the rest of your life there. Really cool question, Charlie. You've got a good heart, man. This is The Ramsey Show. Thank you. ken coleman ramsey personality is my co-host today open phones at 888-825-5225 ernest is in kansas city hi ernest how are you

doing pretty good dave how are you? Doing pretty good, Dave. How are you? Better than I deserve. How can we help? Hi. I was just wondering what can I do to protect the money we've saved from inflation? Saved? Where is it saved? We're just in savings accounts basically right now. How much is in there uh ten thousand in the house fund about twenty thousand in the emergency fund okay the emergency fund you don't protect from inflation that's not what it's for it's there just for insurance so when life happens transmission goes out somebody gets sick somebody gets laid off that's what it's for it's not it's not an investment investments have to be protected

from inflation by investing at a rate of return that is higher than the inflation rate and that's what you have to do you have to make the inflation rate is average in the last 72 years 4.2%. Taxes add about another 2% to that. So you've got to make over 6% on your money on a long-term investment to break even with taxes and inflation. And that's always been the case. These increases in prices have kind of recently in cars and houses and building supplies and other stuff has woke people up again on the dangers of inflation. But inflation's always been there to erode your long-term investing if you don't do that. And so, in other words, if you put money in a CD for 50 years at 1% or 2% and inflation

is running 4%, obviously you're going backwards, and that's not handling your money well. But your emergency fund is not for that. Your house fund is going to be spent as a down payment on your house in the next couple of years, right? Potentially, yeah. So inflation is not going to eat that up because it's not going to be in there long enough. Where inflation gets you is where you're dealing with something that's a 10, a 20, a 40-year investment. That's where inflation gets you. It doesn're dealing with something that's a 10, a 20, a 40-year investment. That's where inflation gets you. It doesn't get you in 12 months.

Okay. That make sense to you? It makes sense, yeah. House prices have jumped up this year. Car prices have jumped up. But that's not going to be a standard way. We're not going to see house prices go up 20% a year for 10 years. It's just not going to happen.

If it does, we've got other issues in this economy. And that's just structurally not how we're wired in America. I just do not see that happening. But could we see it for coming off the pandemic? Can we see some of these things bump temporarily? You bet we have. Car prices are an example of that. And it's more due to shortages than it is anything else.

And once the supply-demand curves equal out, it's going to slow the rate of these price increases. It's not a bubble, and it's not going to burst, and it's not going to go backward 50% or something like that five years from now. That's not what it's going to do but this driving demand people sat at home and spent no money except on amazon for a year and when they came out of their cave they all went and bought a stinking house and they all went and bought a stinking car by the way the lumber factories weren't open making two befores and the car factories weren't open making two befores, and the car factories weren't open making cars. So we have this tremendous shortage of supply because the factories weren't operating. Because there were little COVIDs running around in the factories, and nobody wanted to go in there.

And so they were, you know, scared to death, and so we shut the factories down. We suppressed the economy. And that, you know, so there's a shortage of tuba fours not because there's this spike of demand but because they weren't making freaking tuba fours there's a shortage of glue to make plywood why because there's a big run on plywood no because the glue factory wasn't open okay it's a simple thing so it's gonna smooth out because they're gearing up like crazy there's a shortage on ammunition you know why biden you can't buy bullets okay it's why and you know what we're having all kinds those of us that are firearms uh aficionados right now we're're having to check our ammo because they're making ammo so freaking fast at these factories trying to catch up that a lot of it's coming out defective, which is dangerous as crud.

You can blow your gun up in your hand with a bad piece of bullet in there. And so, you know, just got an email on that this morning. Some friends of mine just bought some bad stuff and just about got killed with it. So, you know, but the point is the factories are gearing up like crazy trying to catch up and as they catch up you see how it's working again it's going to smooth everything out well i just want people to understand inflation can get really scary to people and remember the media exists to freak you out okay that's what they're all talking about trust me it's everywhere inflation and big bold letters and if you listen close enough dave you

lean in you can literally hear the headline going, bum, bum, bum, and we're freaking people out. Here's the deal. All right? This is a short-term inflationary spike. I don't think this is a big inflationary spike. So now we have to have a new boogie monster. The little COVID died, so now they've got to have a new boogie monster.

Let's see where we are next year as to whether or not this is true inflation hike versus just a short-term spike because of the whole supply-demand thing. This thing's going to even back out. I absolutely think that's true, and people need to relax a little bit. Sit tight. Weather the spike in meat prices and all the things that are all having to do with the distribution system and everything kind of going offline. It's going to take a while. This was the biggest artificial shutdown in the history of mankind of mankind and so you don't just warm

that machine back up it takes a little while for it to get humming well and some of these uh corporations are more worried about optics than they are actual absolutely true and so they're not reopening just because one crazy you know activist or something is going to bitch about being open. 17 people on Twitter. Yeah, there's 17 people on Twitter still bitching about this stuff. And so they're all worried about how things look, not how they actually are. They're not really worried about somebody getting sick. They're worried about somebody bitching about them being open.

That's right. That's what it is. And so these corporations have no soul and they have no principles and no backbone. And so then that's what's happened in these situations. And, of course, those of us that did open and did run our businesses, we're trying to kill our employees. Oh, yeah. You know, Dave Ramsey's trying to kill his employees. Oh, yeah.

Which is kind of counterproductive because I've got no employees. I've got to go rehire them all, and it's a pain in the butt. I know. So killing them off is a problem. You don't want to got no employees. I've got to go rehire them all, and it's a pain in the butt. So killing them off is a problem. You don't want to kill them off. They're hard to replace. Dumb.

So that's what's going on, though, man. So, Ernest, turn off the news. Yes. Turn off the news. Quit getting your financial advice from Fox News. Quit getting your financial advice from CNN. For God's sakes, those people on the TV in front of you all have $120,000 in student loan debt. So don't let them talk to you about economics.

And they don't even know what inflation is. It's only on the prompter in front of them. That's a fact. They don't even know what inflation is. You ever seen Anchorman? Exactly. Whatever's there, they read. Right. You're getting financial advice from Ron Burgundy.

What's wrong with this picture? Right? He doesn't even know. It's just on the prompter. Yeah. And here's the scarier part. Dave, let's give them full behind the scenes. Not only is it Ron Burgundy reading something on a prompter, a 24 to 25-year-old producer typed it in there for him.

Yeah. They don't understand economics. Or inflation. See, I'm old. I remember Jimmy Carter. Gas lines. I remember real inflation. Right. year old producer typed it in there for him yeah they don't understand economics or inflation see i'm old i remember jimmy carter gas real inflation right that was real inflation that was not a supply demand curve thrown off by a pandemic that's right economic suppression that is not that's a different thing we had bad monetary policy over a decade from the 70s up into the 80s, and we were jamming at 10% to 15% inflation rate per year for a decade there. I remember this. More interest rates at the height of that.

Do you remember? That was the resulting thing that ended the Carter administration for sure. We had, when I was 20, let's see, 1981, I was 21. I was selling real estate. Interest rates for a home were 17%. Goodness gracious. Fixed rate, 17%. And that was the end of it. And let me just, here's the interesting thing.

Three years earlier, they were 10. Yeah. Yeah. Wow. When I got my license at 18 years old in September, I remember it went from 9 3 quarters to 10 for the first time in modern history. We had 10% mortgage rates, and people were screaming, ready to jump out of windows. Oh, sure. That the world was coming to an end, and little did they know know it was going from 10 to 17 in only about 36 months. Yeah.

Just crazy. And that's real inflation. You don't have to worry about it on the short term, brother. You just don't have to worry about it in the short term. It's long term where inflation will kill you. This is The Ramsey Show. This episode is over, but if you heard about an event, product, or service and didn't have a chance to write it down, don't worry.

We list everything you've heard about during this episode in the podcast show notes section or head to theramseyshow.com. Thanks for listening.