The Ramsey Show - App - How Can I Build Wealth? (Hour 2)

Episode Date: May 20, 2024

Live from the headquarters of Ramsey Solutions, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. The phone number is 888-825-5225. Dr. John Deloney, number one best-selling author and host of the Dr. John Deloney Show, is my co-host today. Open phones at 888-825-5225. That's 888-825-5225. That's 888-825-5225. Penny is with us. Penny is in Phoenix, Arizona. Hi, Penny. How are you?

I'm okay. How are you? Better than I deserve. What's up? I listen to you on occasion, and I hear a lot about how you encourage couples and spouses to combine their incomes. And that's one of the better ways to build wealth is when you have your spouse with you, you're combined everything. And I'm feeling very emotional and discouraged. I'm 54, and I make $50,000 a year, and I just don't have a spouse. And so I feel very afraid. Are you afraid of the money? Are you afraid of growing old alone?

Where's that fear rest, or is that all of it? I love the job I do, but I'm afraid I'm not going to have money for retirement. And I apologize. No, don't apologize. Is that fear real?

I mean, is it like if you looked at the math problem of it all? Well, I'm hoping you can tell me that I'm overreacting. I don't think I am. So I rent an apartment. It's about $1,700 a month. Before that, I was just renting rooms at Airbnbs.

What do you do for a living? I'm in human resources human resources doing what yes onboarding okay and you make 50 000 a year and you're 54 years old yes and you're single have you ever been married yes i've been married divorced for a decade okay all right um i had money no let me go back a step though in the way you came on the air and i want to make sure when we're talking with couples we think it's imperative that couples combine their finances we are not saying it is imperative to be married to build wealth there are lots of very accomplished single ladies and gentlemen that build wealth on their own.

It's what we're talking about is a marriage issue of combining your finances when you're married. But when you're single, it does not prohibit you from becoming wealthy. Okay. Okay, so let's just take that off the table. We never said that. But it, I mean, I've just been talking to you for a moment, so I don't know you inside and out. It kind of feels like that you're still really hurting from the divorce. Am I wrong?

Yeah, I am. Like your heart was broken and there's not been a lot of healing in 10 years. That's true. Okay. All right. Because I'm trying to find out, I mean, you're really sad about that,

and I understand that, and I don't blame you. I would be sad, too, because I told Sharon, if she leaves, I'm going to find out I mean you're you're really sad about that and I understand that and I don't blame you I would be sad too if because I told Sharon if she leaves I'm going with her so um but um because I don't think I could do it you know she said you know if I die you'll be dead in a month so it's like she like she didn't think I could find the way the refrigerator but yeah so the uh uh but yeah the I I so I understand you know I get I'm poking fun not at you but at myself, but I get how what you've been through is very hard for you, okay? But the answer to your overall concern is can you prosper on $50,000 as a single lady in Phoenix, Arizona,

paying $1,700 rent? Yes, you can retire with dignity. That is the answer to your question. Mathematically, you can't. If you made $100,000, would it be better? Yes. If you made $200,000, would it be even better? Yes.

Okay. But, you know, or if you married someone who who made 300,000, would it be even better? Yes, mathematically, all of those are facts, but that doesn't mean that the normal progression of you doing onboarding in HR and moving up the ladder in an HR field, studying, becoming very proficient, very self-confident, healing from your broken heart, having square shoulders, a nice smile, and a square jaw, and sticking your nose into stuff and making a difference in this world. You will make a lot more money over time doing all of that, and during that time, you will be investing and saving, and you can become, you can build a large enough nest egg to be okay. But I think I hear under this just this hurt

that might be holding you back on a couple of those areas. Am I, am I, is that, am I, I'm just feeling this with my heart, okay? No, that's true. I think I've come to that realization over the past couple years, and I have been grieving that whole relationship. So I'm acknowledging that, yes. But then I still go back to the math of wanting to buy a home, and I couldn't qualify for enough in a different area.

Phoenix market's expensive. Unless you had a big downstroke, you're going to be driving from the outskirts to get a property cheap enough to do that on 50K. That's going to be tough. Yes, sir. I looked even on the outskirts. Yeah, it's going to be tough.

Where I'd be driving an hour. Well, you can't drive north because it gets more expensive when you go north. going south out of phoenix i mean okay yeah yeah don't don't head towards anything like a red rock stay away from those they're very expensive what is it what is it about phoenix that where you feel like you're stuck why do you have to stay there um actually we'd love to be in the south but i have two children they're actually going to be seniors in a week they'll be finishing their junior year so they're have one more year of high school so i really don't want to do anything and then they're

going to be going away to college and you're going to be by yourself. You're going to be all by yourself. Yeah, and they're going to go somewhere. Hold on, hold on, hold on, hold on. You're about to get left again. Yes. And your body has a GPS pin and the time it got left last time, and it's sounding every alarm you got. My son said he will go wherever I want to go as long as he can get a job. Because that son learned that his job is to make sure mom is okay because nobody else was, and that's not his job.

Right. Right? And, hey mom, you're allowed to be sad. My son's about to graduate, and I laugh as I use that word, he's about to be done with eighth grade. And if I think about it for 30 seconds, I'll get all choked up. Right. Right? You're not crazy.

You're not broken. There's nothing wrong with you. Hey, we're going to do two things, okay? One is I'm going to put you into Financial Peace University so you can get your handle around the math. And two is I'm going to send you a copy of John's book, Building a Non-Anxious Life, because there's several of the points in that book that are exactly where you're sitting. And it's going to be very helpful to you.

You will read it in two days when you get it, I promise you. If you don't, you're messing up. And I'm going to give it all to you as our gift. You're going to be okay, Penny. It's going to be better than it feels like. You're a good mom. This is The Ramsey Show. Dr. John Deloney, Ramsey personality, is my co-host today. Open phones at 888-825-5225. Proverbs says, hope deferred makes the heart sick. When you don't have hope, it's a sickness of heart.

And the odd thing is, the proverb continues, it says, but when desire comes, it is the tree of life. So the answer to hopelessness is a desire. And really what you end up is you end up figuring out what the core cause of your loss of hope is and then you get into it if the actual thing is math then you look at the math if the actual thing is a a wound that is that is real then you got to look at that wound and and that may be causing you to not see the math like our last caller yeah the only the only way to healing is through the pain um i i

have a friend who just um had the just the heartbreaking misfortune of losing a child and i'll remember a line he told me at the memorial service forever. He said, most people spend their entire life doing everything they can to go around and avoid pain. And he looked at me and said, I didn't get that choice. And so him and his wife held hands and walked directly through it. And that's the only way to healing. So, yeah, you're right. Hope is always on the other side. And that's why you have to have people in your life who've gone before you and you might

not be able to see it in the darkness, but you can hear their voice. You can see their tiny little light. And I'm just going to keep going that way because that's where it is. And sometimes it's math is an odd way. I mean, yeah. Okay. If I save a hundred dollars a month at this age, I'm going to have X. Yeah.

And X is okay. And sometimes it's 10 years out. Yeah. I remember having a my heart stopped and when i did the math and was like it's 10 years i'm gonna be okay at this current dollar amount at this current saving rate that's a scary thing but that's the path let's go yeah then game on that's right game on yeah the old country song if you're going through hell keep on going keep on going that's it keep going. Today's question comes from Isaac in Minnesota. All right, Isaac writes,

how do we promote the baby steps to the friends and family when it feels like we cheated the process? A small inheritance propelled us into baby steps four, five, and six, and it feels like we got a get-out-of-jail-free card. We've been hustling in baby step two for two years with our only consumer debt being credit cards we paid off 10k while cash flowing our first baby and some car repairs we budget every month live below our means and buy things at the speed of cash but it feels like we cheated

does an inheritance undermine the value of our financial testimony i don't think so the thing is this um you only have one story it's your story that's it um and really nobody can take that away from you and this isn't like a catastrophe olympics that whoever has the worst situation wins yeah the goal is that people get become free and y'all got free yeah that's the story do you have to go through bankruptcy in order to learn the lessons that i learned going through bankruptcy no uh do you have to go through drug rehab to figure out heroin's bad for you no maybe the testimony is you were doing smart stuff and god blessed it i mean maybe the testimony is you were walking along and it turns out you're walking on a moving sidewalk and God was pushing along under you while you were doing the right stuff.

Because when you're faithful in the little things, you'll be given more to manage. Remember that one? That's the testimony. testimony so uh i can tell you that there's a whole lot of stuff that um as we have built um incredible wealth over the last 40 years um and built an incredible business that i look back and i go uh i'm really sure i didn't do that by myself it's not like fake humility or something or humble brag it's more like uh i'm intelligent enough to know i'm not that bright you know i mean like you're smart enough to know uh isaac in minnesota that you didn't do this by yourself but that doesn't destroy the fact that you were doing

smart things along the way and and somebody in your family did something smart because they could leave you an inheritance you come from some one of y'all comes from a somebody who was a saver i don't think rachel has a bad financial testimony and she's never been in debt well so this is a this is a cultural virus dave and here's what it is okay we are not allowed to celebrate if you celebrate if something good happens, you're bragging, then you're a jerk. You have some sort of privilege

that nobody else has. You have some sort of something that isn't fair. The only thing we're allowed to talk about in our culture is when things go bad. Wow. I have this.

Oh, I've got this. Tony Robbins says our greatest addiction as a culture is to problems. Nobody's allowed to walk into a room and say, dude, my weekend was actually pretty good, my kids are healthy, and the air conditioner worked. Because then you leave the room and they're like,

but if you come in the room and you say, man, can you believe it out there? He's so real. Everybody thinks you're so authentic and real. You're authentic. And we have to have a space. I'll kiss my butt. That's why whenever I tell people about making friends, you've got to have people you tell the hard stuff to,

but you've got to have people you just call and celebrate with you know i i hadn't thought about that but one of the things very interesting i'll i'll i mean i have a group of guys that i get with once a month and they're all uh they're all successful some of them are uber successful um there's uh 14 of us and all of us have been married one time and are still married, uh, except for two guys. Um, two guys have been through a divorce and a remarried. Okay. Uh, three once now currently single gone through a divorce. So three out of 14. Okay. But I've been with these guys for 15 years. And one of the rules in that group is ever, ever so often,

not every month when we get together, but about every three or four months, I stop everything and all the joke telling and all the cutting up and carrying on that we do and say, all right, everybody tell me something good going on. This is a place where we celebrate. That's right. And even those guys who are studs, who are very successful, most of them, some of them very, very successful. It's the only place they can celebrate

because they're not allowed to anywhere they're not allowed to anywhere else i never thought about that because it's we treasure that time all of us guys do because i can't even get up and go hey you know only time i can do something is a humble brag for marketing purposes right around here but but uh but we we just got done with entree and there was it was super successful there's nobody that you dave can go hey can i just high five you i i knocked this one out of the park it went great our team just killed this yeah we did great the best leadership event in the world right now but who do you tell that to right you can't say anything i'll tell you one of the greatest moments of friendship of my life it's

easily in the top five when my first book went number one, I had a buddy that I called and I said, hey man, I just need to say this out loud to a friend. You and I talked, me and my mom, me and my wife, but I didn't want to call. I called him and he paused and he cheered so loud. He's like, I've known you for 30. You've been trying, you've been working so hard. Congratulations. And then he goes, hey man, well, I got you. My bank just sold. And he ended up telling, and I was like, no, no, no, you can't lose your job. You're the most stable friend I have.

And so he walked me through a really hard season he was in. And my win did not come at the expense of his loss. He was super happy for me. And I could be happy and sit in a crap with him. That's what friends do. That's so healthy. Right? So if you've got a group of friends and family, they should cheer you. They know that you want to get out of debt and that you've got a small inheritance.

That should be the greatest moment that they're all celebrating with you. If you call the show and you tell me what you just told me right here, I'm going to cheer for you. That's right. You're going to be heartbroken that you lost somebody and we're gonna cheer for the time yay and how do you honor the person that left you the inheritance by doing something smart with it which is what you did and so um did you cheat to use your words no no you did not cheat you did not steal stop apologize i you didn't cheat um I mean, you got a blessing. And you have a responsibility that comes with that blessing,

and that is to continue to do smart things with it. If you piss it away, yeah, you should be regretful. You should have problems with that. But when you're doing smart things with it, you didn't cheat. So Solomon, King Solomon, built the temple for the people of Israel with his father's money. It was inherited money. Did that diminish his testimony? Nope.

Gone down in history as the guy that built the temple this is the ramsey show i know it's hard for you people to grasp but i have a very large and dominant inner nerd i know you think it's all cool dave and d Dave's cool and all this, but he actually, when you get right down to it, is an unbelievable deep nerd. Absolutely. Nerds out on mathematics. I'm pretty sure they got that, Dave. Pretty sure they got that.

You think they already knew that? Okay. No one has ever been at home and been like, man, that guy's real cool. That guy's real cool. He's covered GQ coming up, I'm just saying. But no, never never never happening nope not happening dads are us uh papa dave rs but anyway nike i have had fun me and my inner nerd my dominant inner nerd self and george george is a big time nerd george is a bigger nerd than i

realized so george and i have been working on this content and building out with our content team the the arc the teaching arc so that the the message is clear and deliverable on investing dave ramsey's investing essentials and truthfully we were going through the walkthrough a while ago and this is just nerd fun it's nerd fun if you're not a nerd, you're going to go to sleep. You're going to get a headache. But if you've got an inner nerd, you're going to love this investing essentials thing I'm doing tomorrow night and the next night. Two hours on Tuesday night, the 21st. Two hours on Tuesday night, the 22nd.

And we're going through all the real estate stuff, nerding out. We're going through all the mutual fund stuff and all the investment principles that the very wealthy people that I know and run around with and me use. Not some broke kid in his mother's basement on TikTok. This is like real people that have money that do investing, and here's how they do it. It's $199. It's Tuesday night, Wednesday night, this week, 21-22 May. Nerdville. That's it. Dave Ram it's two tuesday night wednesday night this week 21 22 may um nerdville that's it dave ramsey's investing essentials i actually we were literally going through the walkthrough about two hours ago on some of the material and i was told these guys i said i am we need to put up a disclaimer i am not responsible for people falling asleep during

this yeah if you are out of xanax um or uh ambient go ahead and buy this you'll be you'll be but the nerds they're out nerds they're they'll be caffeinated up they'll be leaning in their little pencil marks on their hands they're gonna love it for those of you on the fence i walked into a planning meeting the other day because i was the next meeting um with one of our content strategists and I saw some of the slides up there, and I said, what's that one? And they explained it to me, and I immediately did the math on my place,

and that has already spurred a conversation with my wife. Oh, wow. It worked. But you're a nerd. I'm a nerd, but I'm not a math nerd. You're a psychological nerd. Right, I like to put this into the statistics programs and let that nerd it out for me. But, like, I already walked away with something just because I walked into the meeting early.

So this is cool stuff, man. It's fun. RamseySolutions.com slash events. Dave Ramsey's essential, investing essential, stuff we've never done before on real estate and investing. Certainly Baby Step 7 seven and beyond for sure we're going to get into that stuff or at least showing you when you get there what it should be right you don't have to be there to watch it but hey we would love to have you there's like i'm being amazed how many tickets sold there's a lot of you people out there are nerds i'm just saying

all right shannon's in austin texas hey shannon what's up? Hello, how are you? Better than I deserve. How can I help? Good. I just have a couple questions. So I'm currently working. I have one child with my husband. We're currently pregnant with our second and we're just really trying to figure out how to best set our family up for success. I currently make 83 and my husband did make 115 and just got promoted to where he's making 200. Yeah, so we're super excited for that. And so we have as a family decided to have me quit my job and become a stay-at-home mom come July. And so we have no debt. All of our cars are paid off. So the only debt that we do have is our house, which we could sell for $400. We we put everything we can towards it for the next three to four years pay it off or we're wanting to move closer to family about an hour south do we sell it

and use that amount that we could get about 200 000 on to a house that we're wanting to actually grow into and be closer to family okay so if you move if you sell the house after the baby comes, we don't move anybody when they're pregnant. I'm smarter than that. But once the baby comes, if you put the house on the market and sold it and move south now, you have a husband who makes $200,000, you're debt-free except the house. Are you moving up in-house? We would.

Currently our house... So you would go from two hundred thousand dollars in debt now on the house to what how much debt in the move um i would probably say that our house that we would look at down south um would be roughly 500 and you're 400 now that's correct so you would have a three hundred thousand dollar i mean you'd have a you would have a $300,000. I mean, you'd have a $300,000 mortgage. You've got $200,000 now, $190,000, right? Yes. Okay, so let's up that by $100,000 then because you're upping the price by $100,000.

So now you've got a $300,000 mortgage instead of a $200,000 mortgage. You make $200,000 a year. Can you pay that off and prosper? Yes, you can do that. Do you think it would be smarter to pay it off in three to four years or make the move and i'd make the move yeah i think you're trying to do trying to do too much start thinking about you're not going to keep the house you're in now it doesn't matter so they want to keep it and rent it one day you're not going to be able to do that you're not going to have the money to do that because you're not going to i'm not going

to tell you to uh keep a rental house that's paid for and then go borrow on your personal residence because you kept a rental house that's the same thing as borrowing on a paid for house to buy a rental not a chance okay not a chance so you're not going to have the money to keep that house gotcha okay and even if we tried to save as much as we could, why we're actually paying it off? You still won't have the money to pay cash for another house, and then you'd be effectively borrowing on your home to buy a rental. And we'd never do that. You'd never do that.

If you had a paid-for house, you're not going to borrow on it with two little kids running around and put that house at risk to go buy a rental. No. No. Makes sense. So just sell it move sell it move and then get that one paid off and when that one's paid off someday that 300 000 is paid off you're making 200 and he's going to get more raises and when he gets all that paid off then start saving and pay and pay cash for your first rental. But that's a little ways out. That's a little ways out. And you don't want to be landlords an hour away anyway.

That's a long, hard drive for rent. Yeah, that's landlord by default, not by plan. You fell backward into it instead of sitting there going proactively leaning towards it. And so that's what I mean. But, yeah, you're doing great. Congrats. And congrats on the new baby on the way. What a great time of life for you guys. And he's making bank.

He goes to 115 all the way to 200. Ching, ching. Very nice. Very nice. I like it. I like it a lot. Daniel's in Baltimore. Daniel, welcome to the Ramsey Show.

Dave and John, pleasure to be speaking with you guys today. Really excited. You too. How can we help? So for a little bit of context for you guys, my fiance and I are getting married on June 8th. Yay! Thank you.

We are moving on June 1st to our apartment, and about a week ago, I got the news that my car needs a new engine. So, I just want to see if it's a smart time to purchase a new-to-us car, or if we should ride it out as a one car family for a little bit what's your income uh so we both work in sales and last year we did 106 000 combined yep okay and uh you have any money saved to buy a car with? So we can, for a car, nothing saved specifically, but we can get our hands on $14,000 between our QBank account, a general savings account we have. Sell the piece of junk that the engine blew in, get what you can out of it,

put five grand together and go get you a little something to limp along in for your first six or eight months of marriage, and then save up and move up in car. You got five grand, but do you need to go get a $30,000 car? Crap, no. Do you need a car payment? No. But $5,000 car to get around and get rid of that piece of junk?

Yeah, I would do that. This is The ramsey show dr john deloney ramsey personality is my co-host open phones at 888-825-5225 matt is in seattle hi matt welcome to the ramsey show well thank you thanks for having me um i got a question for you. So I currently have three jobs and spend more than 12 hours a day working. And I save and invest about half of my income. So I'm saving about $100,000 a year. So financially we're sound, but it comes at a cost. So I'm not spending enough time with my children and my health is uh deteriorating well not i'm not dying but it's impacting negatively how much do you have in savings in your investments

yeah so i so with i've been doing this i've been having three jobs for about five years now going into six years so you put a half million dollars away yeah exactly well yeah exactly so with that money i've bought um four homes one primary residence and three single family homes and i'm renting it all out right now okay and what are the three single family homes worth um roughly on average about 600k each and i bought it for about yeah correct okay so the the three rental properties are worth 1.8 million dollars and they're paid for no no no no no um about about like 40 i have about 40 percent equity on each house oh so you still have debt on them okay correct okay so half a million okay so when it comes to equity i I have about 1.3 in all those four houses.

Gotcha. And I have about $350,000 in savings. So what's your question? And IRA combined. Yeah. So I just turned 40 and I've been happy so far, but like I just turned 40 this year. And since then, I've been happy so far, but like I just turned 40 this year. And since then I've been thinking about a lot of stuff like,

am I doing a good thing? And I initially, I thought, um, uh, I'm being the right thing for the family, but I'm starting to think about myself too. I think I'm just kind of going through the midlife crisis, but also, so when I think about quitting those two jobs, the thought of living paycheck to paycheck terrifies me. Honey, you're not living paycheck to paycheck. You're putting $100,000 away. Quitting two jobs is not going to make you paycheck to paycheck.

You're so exaggerating that well if i after i put all the like next out on 401k and ira i'm not going to be saving any money at all oh on a monthly basis so back off of your investing you only got two million dollars you're not living paycheck to paycheck. That's a bogus emotional response. Why are you afraid to just sit at home with your family, dude? Yeah. Why?

Why? Well, initially, I was part of, like, fire movement, but I'm thinking a lot of things can happen in the future. Yeah, fire movement burned down. Did you notice? It burned to the ground. It burned around people's ears because they were trying to do something

that wasn't sustainable. What you're doing is not sustainable. What you're doing is not sustainable. You didn't build a life. You built a financial portfolio. And now your brain is waking up and saying, go build a life. And we're saying, yes, go build a life. Here's what I promise you, dude. I agree with your brain is waking up and saying go build a life and and we're saying yes go build a life

here's what i promise you i agree with your brain when you're 50 you can hand the kids a key to a rental house i promise you they would have exchanged it for time with their dad and by the way that's a false dichotomy because you work hard you're still going to be able to offer your kids a pretty extraordinary life financially, and you get to spend time with your kids. I think you're scared to go home and be with your family. Am I wrong? Well, are you afraid to admit that the fire thing you bought into sucked?

And also, I think it has to do with my ego. Like, I just feel like I'm successful and superior. And you have four houses worth 1.3 million dollars your net worth is 2 million dollars and you're 40 years old ding ding you got the bell you what you're on the bell you're done you're done if you don't do anything else you're going to be worth 20 million dollars at 65 if you just let the investments that you have grow that's all there's no need to panic here and uh by the way people working and enjoying their work and going to work and having meaning uh as long as they're able is not bad i intend to be on this microphone until i

don't make sense now i don't want to be one of those guys that doesn't make sense we've seen those and they're dangerous but um yeah so anyway yeah we need to get off at that point but uh no you dude yeah your brain is telling you what to do you already know what to do all i'm telling you is is your emotions are exaggerating that you're like going to be starving to death and or something and living paycheck to paycheck not even close how much of oh here's an idea quit and if a year from now you're you think you're going to be homeless or something go back to work three different jobs you can get you can get those jobs right back those kinds of jobs are

always waiting how much of this stress dave because I've never lived this life, you keep telling yourself with your neocortex, your thinking part of your brain, I'm worth $1.3 million. I'm worth $1.3 million. But your amygdala, the threat detection part of your brain says, you still owe $900,000 on these four houses. You still owe money. You still owe money. And every month month no matter what your net worth is or how much money you have coming in your brain knows you're still on the hook for all these properties that's got to weigh you down doesn't it that's probably part of it but i think he's been running at breakneck speed he didn't even notice that part huh i that's my opinion just talking he's just exhausted i think just, no, he was trying to run. He thought there was an end game. Tell me about fire.

Fire is. Did they retire young? They retire at 40. Okay. Not have to work again. Yeah. And the numbers don't work. Gotcha.

It does, you people. And because the problem with money, like when you view money that way, is money's a bully in the schoolyard. As soon as you say, hit me in the nose, you step back. If you cross this line, I'm going to hit you. You me in the nose you step back if you cross this line i'm going to hit you you step across the line he steps back and draws another line says if you cross this

line then i'm going to hit you and that's what money does it keeps keeps because there's always another one there's always a bigger thing there's always a different thing there's always a reason there's always inflation there's always a better car there's always a oh mama mama wanted a house in the mountains oh there's always there's always doesn't matter where you get to there's always a oh mama mama wanted a house in the mountains oh there's always there's doesn't matter where you get to there's always another one and a bigger one and a shinier one and a different so you just can't get away from it once you get on that treadmill you can't check you can't catch that carrot it's impossible to catch and so uh if you could maintain godliness with contentment and say okay i'm gonna live a lifestyle of

fifty thousand dollars a year income then you can build a big enough nest egg to quit but you can you're something about our psychology won't let us do it we start out with that and that's the math but then by the time we get used to living on a hundred and fifty thousand dollar lifestyle uh then i gotta go back to and fifty thousand dollar lifestyle uh then i gotta go back to a fifty thousand dollar lifestyle to quit which is exactly what he's saying he's saying i'm gonna be paycheck to be not even close to paycheck to paycheck but he's gonna have to cut his lifestyle he's gonna have to drop his investing from a hundred thousand dollars a year contribution now that was in addition to maxing out everything else. Yeah.

Yeah. So he can still max out everything. And you can't do $100,000 extra. Extra. Yeah. And that's paycheck to paycheck. That's not paycheck to paycheck. There's also this, you get to be 40 and you got $2 million and you thought it was going

to feel a different way. That's true. You thought it was going to be a billion. You thought you were going to do nothing and doing nothing will kill you. It's one of the things I had to outline with all these little communists that are coming out of college. I have to explain to them that a billionaire is not the same thing as a millionaire. A millionaire, a billion is a thousand million.

Billionaires have four houses, jet and seven cars millionaires have two used camrys and one house and it's paid for and they have eight hundred thousand dollars in their 401k that's a millionaire but a billionaire is a thousand million and people emotionally have these two things confused they think of some rap artist or whatever in a private jet which they don't even know it's chartered but um but i mean they think it's they oh that's how you don't live like that with a three million dollar net worth you know stupid jet would be more than that. Much less, you know, the whole, I mean, it's just like, so that's not how it works. It's the emotions of when I get to be a millionaire, I'm going to be a billionaire. No, you're not.

You're going to be a millionaire. Two used Camrys. And that's still a good thing. Two used Camrys, an 800,000 in your 401k, and a paid $400,000, $500,000 house. And a lot of laughter in your home. Ding, ding, ding, ding, ding, ding, ding, ding, ding. You're done. This is The Ramsey Show. We'll see you next time.