The Ramsey Show - App - Find a Proven Plan That Works and Attach Yourself to It (Hour 2)

Episode Date: December 15, 2021

Debt, Investing, Retirement, Career, Insurance, Home Buying, Saving As heard on this episode: Sign Up for a FREE trial of Ramsey+ TODAY: https://bit.ly/3rZTUAx Tools to get you started:  Debt Calculator: https://bit.ly/2Q64HME Insurance Coverage Checkup: https://bit.ly/3sXwUn5 Complete Guide to Budgeting: https://bit.ly/3utmVXi Check out more Ramsey Network podcasts: https://bit.ly/3fHhbVE

I'm Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. Thank you for joining us, America. We're glad you're here. Open phones at 888-825-5225. Dr. John Deloney, Ramsey Personality, best-selling author, is my co-host. It is a free call, 888-825-5225. We'll talk about mental health, relationships,

money. These are the things he and I talk about. And sometimes we talk about the thing that the other one knows something about. April is with us in Bismarck, North Dakota. Hi, April. How are you? I'm good. How are you doing, Dave Dakota. Hi, April. How are you? I'm good. How are you doing, Dave? Better than I deserve. What's up? Okay. I love this show.

I listen to it a lot. I drive many hours a week, and I love your no-nonsense talk about money. Thank you. I am an entrepreneur, and I have been in business for about 11 years. And I have no debt, no mortgage, no car payment, no student loans, anything like that. You're awesome. Yeah. And my husband and I, over the course of the last, you know, however long we've been professionals, we have invested about $850,000 between, like, Roth, 401Ks,

you know, various different investment platforms. So you're a millionaire. Way to go, baby step millionaire. I know. Well, and so I have, like, joined your crowd kind of late in the ballgame, and I think about how much quicker we probably could have achieved this had I been more disciplined with finances over the years. It's okay.

You did it. Yeah. So I'm kind of at the point. So the health center has actually stayed at home with our children for the last four years. They're all in school now. And so I kind of feel like we're in this, like, midlife crisis where, you know, we're kind of thinking about the next step. And I'm in healthcare and I've, you know, the way the healthcare world has gone over the last couple of years and contemplating a career change.

And basically my question for you is, is I'm like, I feel like we've laid this really great platform and I don't want to screw it up, but I also feel like taking, you know, like chances and risks. And like, I thought about, do I sell my business? And I thought about going into a different type of business that's more like family-based and other things that we're passionate about. I've kind of been the career path person for the last, you know, 11 years. Sounds like you can afford to do it.

What's your question? So my question is, is that like how, I'm not sure how to make the steps as far as, you know, like, right now, you know, we have a generous income and things like that. And business valuations, like, I don't even know the resources to adapt to any of these things or, like, how to make these steps and changes and you know valuing a business that you own now correct okay um like i'm trying to figure out how to like do the transition like selling like business selling or hanging around to something there's like a holder in it i just don't even know like financially how to make such a big leap because you're in such a comfortable position and then well if you sold it would you why would you be in an uncomfortable position well i just said it and like and maybe i'm asking like do you have

resources and when it comes to things like this as far as like i don't know what you're asking still i i think i i i was hoping that you would just tell me what to do. Well, I don't even know what you're asking. I mean, I'll be happy to give you an opinion because I'm an expert on my opinion. So you have a business that you're thinking of selling. Yes. Okay. And you're worried that if you sell it that you're not going to be okay,

but you're already okay. So how would you be not okay? Because the income would go away? Yeah, or I guess, like, you know, I don't even know who to contact in regards to, like, what type of financial people guide you through selling a business? Who evaluates your business? How much is it worth? Okay.

I can give you an idea on how to value it. We can work on that for a minute. And there are business brokers that sell it. What does your business do? We're in outpatient rehab. Okay. And how many employees do you have? Nine. None. Ninepatient rehab. Okay. And how many employees do you have? Nine.

Nine. Nine. Nine. Nine. Oh, okay. All right. And what was the net profit of the business the last three years? Taxable.

Taxable. Okay, so I know, like, I know gross revenue off the top of my head and as far as like what i took home my draw i guess would be what you're asking i need your profit unless you took all the profit home is that what you did no i didn't take all the profit home but i was just like trying to review my taxes and like you know how they all look at the bottom line. It looks like you don't make a lot of money through, like, exemptions and things. You may not make a lot of money. You may own your job.

Okay, so let me help you with this. You're going to have to go back and do this later because we're not going to be able to do it now. Here's how you do it. You need to figure out what the net profit of the business is, period. And if that net profit includes you having received zero income, and that net profit is your only income from the business, then you would say, what does it take to hire someone for this business to do what I do? So let's use an example.

Let's say you find your net profit is $100,000, and you say, I think I could hire a manager to do what I do for $70,000. That means the net profit after you were paid your salary for your market rate for what you do is $30,000. The value of the business is about four or five times the net profit after all the employees have been paid, including the person that replaces you. Okay, so that's the real net profit, because if I'm going to buy this business, I'm not going to run it, and I'm not going to be working in it, and I'm going to put X number of dollars in it, and how many dollars is it going to give me back? And if I want a 25% return on my investment, it's worth four times that.

If I want a 20% return on my investment, it's worth five times that. So in our situation there, we have a $30,000 net profit in this explanation, or our example, then that business would be worth $120,000 to $150,000, somewhere in there. That would be worth $120,000 to $150,000, somewhere in there. That would be the value of it. If the business is not profitable and it owns a bunch of things, book value is the value of closing it and selling off all of those things. Some businesses are worth more that way than they are trying to sell the profit because there's not much profit, but they have a bunch of inventory and they own a bunch of things.

So you close it and sell it off for book value. But you need to determine all of those kinds of things, and a business broker can walk you through that and help you get the business up for sale. You typically will sell it to a supplier or a competitor, someone that's already familiar with you, is your best leads on selling a small business. If the business only pays you what it takes to hire a manager, it is not profitable. You made zero. You just own your job. This is The Ramsey Show. imagine a world where people never have to worry about money ever again at ramsey solutions our mission is to teach people how to get out of debt and build lasting wealth. And if that means we have to take on the toxic money culture that says you need debt to get ahead, then we're okay with that. We've seen millions of lives changed and we will continue to

create digital products and services to help people transform their lives. If you want to join me and over 1,000 other team members on this crusade, we're currently on the hunt for web developers, UX designers, and SEO and content marketing specialists. To find out about these positions and more here at Ramsey Solutions, visit RamseySolutions.com slash careers. That's RamseySolutions.com slash careers. Together, we will disrupt the toxic money culture in America and change lives. Visit ramsaysolutions.com slash careers for more information. Dr. John Deloney Ramsey, is my co-host today. Open phones at 888-825-5225. Okay, Christmas, 10 days away. Wow, I got here fast.

Wouldn't it be good to get a boost this time of year? That's what our Ramsey Christmas Cash Giveaway is all about. This year's giveaway is almost over. This is your last week to enter for a chance to win the grand prize of $5,000, no purchase necessary. Got to be 18. RamseySolutions.com slash giveaway. RamseySolutions.com slash giveaway ramseysolutions.com slash giveaway register early and often and for an extra dose of motivation just in time for the new year we're having our famous ten dollar sale and that means you can shop over 40 of our best-selling books envelope systems offer

just ten dollars or less get number one best bestsellers like the Total Money Makeover, Know Yourself, Know Your Money, Redefining Anxiety, all $10 each. $10 books could be your biggest investment, your best investment. Make 2022 your best wealth-building year ever. Shop the $10 sale before it ends ramsey solutions dot com chad's with us in minneapolis hi chad welcome to the ramsey show thanks for having me on sure uh so quick rundown, uh, no debt in the world. I've got $110,000 rental that's paid off with a

positive cashflow. Um, I've got 85 grand sitting in a money market and I'm growing that. I'm just continually adding to that about four grand a month. I'm already maxing out, uh, 15% into my, into Roth. So I am currently living rent free in a house provided by my company. I don't know when, if ever that situation is going to change, whether that's going to be 12 months, 24 months, five years, 10 years down the road. But if it ever did end, I'd probably slide down into my paid-off rental. My question is, should I look to do something other than keeping that $85,000 that's continuously growing in that money market or do something else with it? Should I invest? It should be invested. I mean, beyond your emergency

fund, it should be invested in something. It sounds like a good situation. Man, you've done a great job. It sounds like a good situation for you to just continually save up and buy more rental property with cash. Right. So when that account gets big enough to buy a rental property, go buy one. Right. The biggest thing is is do i i ideally

i wouldn't want to live in the rental i mean it's it's a nice little house it's very it's very nice but it's pretty small for for what i would want for myself and my family sure but do it and that would be sort of a stop gap if you know they called me today and said you need to be out by friday i'd say oh crap and and move to the rental because I build in. What do you do for a living? They can't do that. Well, they could if it's an employment furnished housing. What do you do for a living?

I work for a mining company. So it's a house that just happens to be within our tract of owned land, and it's sort of just a fringe benefit of me working there. But if for some reason something were to happen to the company or we sell off to a competitor or something like that. Someday that's not going to be there, but you'll probably get more than 30 days' notice. It would be unusual just as a courtesy. But, yeah, employee benefit, they can call you up and go,

hey, I sold the place, you need to move in a month, and so then you'd have to do something. And then you'd have to say, all right, which of these rental properties do I want to liquidate? Let's say by then you own four of them, and you say, okay, I'm going to put two of them up for sale, and we're going to take the money from that and buy us a house. And it might take longer than 30 days, so you might be in one of the other rentals living for a while or in an apartment for 30 for six months or something while you you know make the transition out if you want to keep it more liquid you could just go to mutual funds with it and then you can get the money in four days out of your mutual funds uh you know but you sound like a real estate

guy to me well no i i i like it you know i i in hindsight i wish i would have gone back over the last 18 months and not sold some properties that i had just because of what happened with the market but the biggest thing is am i if i if i wanted to not live in that you would sell it and use the money to buy your house or sell two right and but right but with with that 85 is am i missing out on the market by not having it if you want to put it in mutual funds until you add enough to it to go get them house another rental house with it you can that's what i do and i just use an s&p 500 index fund because there's no commissions on it and if you if it stays in there longer than a year, when you do pull it out, whatever gains you've

got to be on capital gains rate at 15%, not on ordinary income. So that's what I do. I throw extra cash in an S&P 500 until I've got enough to buy another piece of real estate. But I'm more real estate than I am mutual funds. I've got a lot of both, but I've got enough to buy another piece of real estate okay and that but i'm more real estate than i am mutual funds i've got a lot of both but i got more real estate and so um i just use it that way and that way i don't have it just sitting and checking which just makes me sick right i mean i don't i need you need to get it working for you but an interesting situation and by the way you have done a really really good job absolutely i i've i've lived in several of those situations where, like, just as dean of students, you've got to be at the school in the middle of the night.

And so your position comes with work-provided housing. Or it's a house adjacent to the community. And sometimes it's a year. Let's start here. But I've always circled back and said, hey, we've done this for 12 months. We've done this for 24 months. Can I get a year lease here? Can we do this at some sort of?

So I have a guarantee and y'all have a guarantee. And they've done it every time. Doesn't sneak up on you. Right. So it may be worth going back and. Just say, you know, I need this in writing that I got this a year at a time. Yeah. And that's not a bad idea.

It would give you a little more stability. Give you some stability. Than them just walking in the middle of the night and going, oh, we sold the mine. Right. Oh. Right. Remember that time mom and daddy lost the house when they sold the mine? You know, yeah, you don't want that. All right, let's see here. Emmanuel is with us in Odessa, Texas.

Hey, Emmanuel, how are you? Hi, how are you today? Great, man. What's up? So I had a question. I wanted to get your thoughts on a whole life insurance. I've got a term life. Don't do it.

Don't do it. Damn it. So I've got a term life insurance for my family and I, my wife and three kids. Actually, just two of them on the term life. Anyway, they paid about $111 a month. And it's time for me to transition. I'm eligible to transition some of them to whole life. No.

So the numbers they gave me were, like, pretty scary, right? $200. And it's like the benefit of it that I'm really looking for, Dave, are the borrowing feature, but that's not until about seven or eight years down the line of this life. Wait a minute. Let's just stop for a second. Yeah.

Okay. So whole life, did you notice it's 20 times more expensive it's super expensive yes it's 20 times more money i didn't figure that it's a nickel on the dollar so for a nickel you can buy as much term insurance as the dollar costs you it's 20 to 20 x so that other 95 cents is going into a savings account called cash value so when you borrow money that you put into a savings account called cash value. So when you borrow money that you put into a savings account, do you often borrow your own money? I have never. Kind of dumb.

And pay them interest to borrow your own money. Isn't that nice of you? I know. That's what I'm trying to figure out. Yeah. Well, don't figure it out. Run. Go get term insurance.

Call ZanderInsurance.com. Get a quote from them. Get the proper amount of term insurance. It ZanderInsurance.com. Get a quote from them. Get the proper amount of term insurance. It's 120th as expensive. Never do investing with life insurance people. Always do investing with investing people. Yeah. Don't buy your mufflers at the break shop.

And put your own cash in an account and borrow from yourself for no interest. It's the nicest thing you can do for you. I like me, so I'm going to borrow my own money and pay myself interest. What a scam that is. Pay them interest to borrow your money. It is a scam. We're going to take your money. We're going to make up.

They're so slick that they make it sound sophisticated. Well, this is a great product because after you've had it all these years, you will be able to borrow your cash value out. yourself it's tax-free by the way 100 of borrowed money is tax-free anywhere you borrow money it's tax-free like this is some kind of sophisticated but something it's not ashamed yourself it's awful. Dr. John Deloney, Ramsey Personality, is my co-host today in the Ramsey Solutions Lobby on the Debt Free Stage. George and Sharon are with us. Hey, guys, how are you? Better than we deserve.

I love it. Look at you two in unison. Well, Merry Christmas to you. Where do you live? We live in Statham, Georgia, which is eight miles west of Athens, Georgia. UGA country. Beautiful country. Beautiful mountains mountains huh no no you're down at the foot of the mountains okay we're well down the foot of mountains okay all right i got

confused but i know where you are all right generally so welcome so how much debt have you paid off 62 000 very good and how long did that take about two and a half years. Good for you. And your range of income during that time? During 2020, it was running about $94,000. And then in 2020, I mean 2021, it was running about $91,000. Okay, cool. What do you all do for a living? Well, I'm retired. I retired three weeks ago. Hey, congratulations.

What did you do for a living? Well, for 20 years, I did lawn service. Okay. And then I contracted throat cancer, which meant I had to give up my business because I spent a year trying to stay alive. What did you retire from? Well. The lawn business? No.

Okay. from um well the lawn business no okay no actually uh my daughter works at a dealership in duluth georgia and she got me a job as a lowly lowly porter i like the way he says that that's great but uh jaren what do you do i'm office manager for the georgia department of natural resources awesomeness very cool what kind of debt was the $62,000? Well, $48,000 was the house. She had two credit cards with $8,000. Excuse me. I had one with $3,000.

And then we had a dental emergency, which threw in another $3,000. All right. So altogether, we came out to $62,000. And you paid off the house and everything! I'm looking at weird people! I'm sorry, we didn't do the baby step two properly. We went ahead and paid the house off. Just knock it out while we're at it. Well, you didn't know a lot on it, so that's good. What's the house worth? Right now about $225,000.

Way to go, you guys! How does it feel to have no payments in the whole world it feels wonderful and i'm thrilled to be here and i'm thrilled to be retired oh my goodness so what started this journey two and a half three years ago that made you say we're going to get out of debt well five years ago she got got the book, Money Makeover. But she didn't quite get into it then. And I wasn't aware of it that much at that point. Then while I was recuperating from my throat cancer, I was watching YouTube. And you're on YouTube. I've heard that.

Yeah. And I started listening and thinking, well, you know, we can do something like that if I ever get a job. And finally, I did get a job. And then we started working on having the first step done. We had our $1,000, which came in handy a number of times. My bad. But then in the around September of 2019, we said, let's really do this because we need to retire. And Sharon says finally.

Well, every day, every day at work, I brought my lunch and I would sit in my office and turn you on on YouTube and I'd listen to you and i'd listen to these debt-free screens and i could just feel the freedom in it and i'm thinking we're going to do this this is my dream i love it so who who finally had the courage to sit down across from the other one and say it's time let's do this well it was pretty much mutual um i started pretty much trying to get rid of the credit card debt that I had incurred. And then she started getting on board seeing that we were. By the way, I got to say, the steps, the small one, then the next, then the next. That's so encouraging.

Once you get that first one paid off, it's like, wow, we did it. And then we started throwing money at the second one. we and then it just went right into the house how long y'all been married eight years eight years way to go and the first time you've been debt-free i assume during the eight years yes i've already gone through two bankruptcies in my life goodness oh my goodness well you guys are incredible i'm so proud of you and we're so thankful for you we wouldn't have learned all this but we listened to you and we learned a lot from you well we're very we're honored you're why we're here where you guys are heroes you took control of your life and uh and enabled george to retire that's good i'm gonna retire this coming year good good you should

i started when I was 16. Whoa, well, it's time. Yeah, you got a little built up there. So what do you say to somebody who says, I'm too old? It's too late for me. It's too late for me. I'm just the way this is. You're never too old.

We started in our old age, but i wished i had known earlier so i could have become a millionaire but you know i i trust god and i know he could do anything amen amen hey i don't i don't doubt you're gonna be millionaires yet we might i don't doubt it a bit so well congratulations what do you tell people the key to getting out of debt is now that you paid off 62 000 house and everything in two and a half years? Well, you said it yourself. Never give up. Start with the smallest debt.

Pay it off. Go to the next one. Pay it off in the next one. And you just get so encouraged. Yeah. Yeah. But we also encourage them to reach out and have Jesus get into their hearts, sir. Amen.

Amen. Well done, you guys. Very well done. Well, we've got a copy of the book Baby Steps, Millionaires, for you. That's our prescription for you. That's the next chapter in your story. The book comes out January the 11th, but you're going to get an advanced copy in just a few minutes when we take our commercial break here. Also, I'll give you a copy of the Total Money Makeover.

You can give away to somebody and get their journey started. You guys are an inspiration. You're inspiring people. You're heroes. Thank you so much for being who you are and for sharing your story. Well, thank you, Dave. Without you, it wouldn't have been possible. Oh, I didn't do it.

You did it. So, who was your biggest encourager outside the two of you actually just the two of us the two of us you didn't talk you didn't have anybody like in your corner out there yelling well they just looked at us we said something they just you know kind of looked at you like you lost your mind but now your house is paid for yes you have a payment in the world that's right vehicles are paid for we have a old camper it's paid for i love it hey george i before we do this the debt-free scream you said something and it rang true from your from your heart you've been through two bankruptcies you've

fought and survived cancer the phrase never gives up means something special to you, doesn't it? Yes, it does. Actually, last year, no, this year, I got diagnosed with prostate cancer. And it was diagnosed early enough that compared to my throat cancer, it was a cakewalk to get treated. Never give up. Never give up. Never give up. Thanks for sharing that, brother.

You're welcome. That's an inspiration for me personally. Thank you. It's up. Never give up. Thanks for sharing that, brother. You're welcome. It's important. That's an inspiration for me personally. Thank you. It's important. Don't quit. Don't quit.

Don't quit. Don't quit. Love it. Love it. Love it. George and Sharon, Athens, Georgia, $62,000 paid off in two and a half years, making $94,000 to $91,000. House and everything, 100% debt-free. They're weird.

Count it down. Let's hear a debt-free. They're weird. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free! Woo! How fun. Whoop, whoop, whoop, whoop, whoop, whoop. I love it.

How cool are they, man? Very well done. They're very cool. They're very cool. They might be the coolest people we have watching YouTube. I assure you they are, yeah. Yeah, because there's some 19-year-olds watching YouTube that are nowhere near as cool as George. No.

They don't even know what cool is like George knows. That's pretty cool. And Sharon, for sure. They're rocking this. They're rocking this. It's beautiful. That's fabulous, man. The number of people in our current society, our current culture, who run up against something hard and just throw their hands up and say, I quit.

Somebody bail me out. Somebody – because it's too hard. And then to see someone like George – Never quit. Never quit. Just keep getting back up, man. So what's my answer to throat cancer? As soon as I get well, I'm getting a job and get out of debt.

That's right. So I can retire. There we go. I ain't dying. I'm retiring. Ding, getting out of debt. That's right. So I can retire. There we go. I ain't dying. I'm retiring. Ding, ding. This is The Ramsey Show. We'll be right back. Dr. John Deloney, Ramsey Personality, is my co-host.

Open phones at 888-825-5225. Zach is in Las Vegas. Hey, Zach, welcome to the Ramsey Show. Hey, thanks, Steve. God bless. God bless you, sir. What's up? How are you? Better than I deserve. How can I help?

Yeah, so my easy, straightforward question is, should I continue to VACs out my 401k? Should I not do that and use the disposable income to save for down payment for a home, which I kind of already have almost, or dedicate 100% of all of my earned income to paying off my debt. So the context is I'm 37 years old. My salary, employed salary is $75,000.

I have $26,000 in credit card debt. $13,000 of that debt is 0% until May 2022. And $7,500 of it is 0% until November of 2022. I have a $425 a month car payment, but that's 0%. I'm renting. And that's about it. How much do you have in savings about eight thousand eight thousand and how much do you owe on your car 23 give or take okay 23 000 okay all Well, Lucas, here's the thing. Maxing out your 401K, being debt-free, and buying a house are all three excellent goals.

But you know how you eat an elephant? You know how you eat an elephant? A bite at a time. If you try to do three things at once, none of them are going to get done. So years ago, doing what I do, I started coaching people, and I started doing it myself to say, I've got to focus all of my efforts on one thing, and then the next thing, and then the next thing. And that focus allowed me to actually accomplish the goals

rather than dilute my efforts by spreading them so thin that nothing got done. And we call that process that now millions of families have gone through the baby steps. Sure. Baby step one is $1,000. Baby step two is to become debt-free, everything but the house. Three is save an emergency fund of three to six months of expenses after you have that done is when you would save the down payment for a house and then

you would start baby step four which is 15 of your income going into retirement uh you sir have a major debt mess and because it's all zero percent you think it's intelligent it's not you have made a mess you owe fifty thousand dollars on crap and you don't even know what all of it is but you're all walking around like it's zero percent that doesn't matter a bit you have a mess so what you've got to do is take seven of your eight thousand dollars apply to your smallest seven thousand dollars worth of credit000, apply it to your smallest $7,000 worth of credit cards, because those will be your smallest debts. List all of your debts, smallest to largest.

Pay minimum payments on everything but the little one. Attack the little one with a vengeance. Work your way through these debts as fast as you can. Probably going to take you 18 months to two years. And then you're going to build your emergency fund of three to six months of expenses so if you had twenty thousand dollars sitting in a bank account and no payments at all and started saving for your house down payment you would be wise sure yeah i've already in the past since april of 2019 i've paid off 26,000. And I mean, I, you know, I do, I did take your, your course way back. My parents kind of put me through it and, uh, you know, I was zero credit card debt.

I had zero debt period, you know, like 800 credits for everything, but I was in my late twenties and, you know, I was looking around at my elders who, you know, had good 401ks and great money, but they worked at a company for 20 years. So when I had relatively zero responsibilities, I, you know, did the risky thing and went and pursued my dreams. And I'll never regret it because, you know, God definitely built my character as a man. That's the man I am today. But now I do have this mess. And so I know that the debt snowballed, but I guess I kind of wanted just a little bit more feedback on your perspective regarding. It sounded like you wanted to be an exception, that you're a special guy,

that your debt was a little bit different because it was 0% and you have this other idea. Your car debt didn't make you a man. No, no, debt's debt. But it's more of like, so if I'm maxing out my 401k, as I am now, I'm putting 25% of my paycheck

in. And my discretionary income after my expenses every month is $600. And so I have that to play with. If I stop contributing to my 401k except for 4%, which is the company match. What do you do for a living? I'm an architectural photographer. Okay.

Zach, you're broken deeply in debt. Yeah, you're broke, brother. This is what your plan brought you to. And so I wouldn't use your plan anymore. Your plan sucks. Yeah, you're broke, brother. This is what your plan brought you to. And so I wouldn't use your plan anymore. Your plan sucks. Yeah, you're broke, man. You need a new plan, and our plan is proven, and it works. You can choose.

You get to do that. You're 37, and you're a man. You can decide what you want to do. But you called here to ask what we would tell you to do, and the law of gravity is the law of gravity. Find a proven process and attach yourself to it. It's called in business best practices. We find out something that's working and we emulate it, copy it, steal the idea,

whatever you want to call it. And I want you to steal these ideas. I want you to work this baby steps exactly as you were taught in Financial Peace University. And, you know, if you want to do something else, that's fine. But you called here. I want to press on him a second. He was trying to make this a math problem. And I think one of the fundamental misses sometimes,

it is ultimately a math problem, is that it's a psychology issue too. And there should be some discomfort. I want you to get out of this thing. And it's like, well, it's a psychology issue too and there should be some discomfort i want you to get out of this thing and it's like well it's a hundred dollars here and we can do then you wake up and you're 37 and you're making a great salary and you have negative nothing to show for it right there's a lot of photographers who don't make 75 000 he must be good at what he does but he can't see the forest for the trees here, man. Here's the thing. You can't fix stupid with math.

And personal finance is 80% behavior. It's only 20% head knowledge. The stuff that make people, the principles and the processes that makes people wealthy are very simple to understand, but they involve controlling yourself. We just heard in the last debt-free scream paying off that smallest one gave us some momentum to get the next one they gave us a yeah it's about setting your insides on fire and i think you said it like brother you're you're broke you're broke you owe fifty thousand dollars man and you make 75 i mean that's not a good ratio no that should scare you yeah instead of going well it's zero percent and 7500 zero percent 70 to may of 22 shut up you're broke and if an

architect firm is gonna have to do layoffs before they start cutting the principal architects they're gonna cut the full salary photographer that makes 75 grand the security you think you have isn't so secure brother be debt-free man yeah yeah it's it's it's worth it so but this is a decision making process that people have to go through and and so um you know it's years ago i hired a trainer to come to my house and you know try to get the belly off of me again and try to do something, try to get myself in shape. And it would be like I go down there. I've got a keg. He's got a six-pack, right?

And he goes, well, this is what you need to do. And I go, well, you know, I kind of think I have this other plan. And he goes, sit your butt in the floor and do sit-ups. Shut up. Okay, so I can see your body, but listen, I have this other idea. I mean, you know, it's like, yeah, you're going to have to quit eating 73 donuts. Yeah, well, I think I can do the donuts as long as I do the workout. How about you slow down trainer and then i found the you know the whole thing is nutrition is almost the whole stinking thing

you cannot run a big mac you cannot run enough miles to make the kitchen maybe that's right that's right oh my gosh let's decide who you're gonna listen to uh the guy with the keg or the guy with a six-pack is the ramsay show this is james childs producer of the ramsay show did you know the ramsay show is one of the most popular podcasts in the world subscribe or follow today wherever you listen to podcasts Listen to the podcast.