The Ramsey Show - App - How to Leave a Legacy for Your Family (Hour 2)

Episode Date: August 24, 2018

The show about you

Live from the headquarters of Ramsey Solutions, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. This is your show. Thank you for joining us. Open phones this hour at 888-825-5225. Joining me this hour to answer your questions as well, Ramsey personality, millionaire expert, Chris Hogan, author of the soon-to-be number one best-selling book. It just went on pre-sale.

Every Day Millionaires, How Ordinary People Built Extraordinary Wealth and How You Can Too. Chris's write-up of the team and his study of the largest study of millionaires ever done that book is on sale at daveremsey.com right now and chris as you and i have met with people over the last me 30 years you 10 to 20 years um we meet with wealthy people one of the things we tell them to do is to give their family a gift and that is the gift of an estate plan a will a living will which is the unplug or not unplug if you're in a coma document um a uh instructions uh we don't prepay funerals, but even preplanned is fine. But just have the documents of life in order so that your wife, your husband, your kids can go to one area, one drawer in your house.

We've always called it the legacy box. And pull all those documents out. But certainly the minimum starting thing is a will. And, of course, with the passing of iconic Aretha Franklin this week, it's now come out that she had no will or trust at the time of her death. Here's how CNN is reporting it. When legendary singer Aretha Franklin died, she did not have a will or trust. Her four sons have filed a document listing themselves as interested parties. She died from advanced pancreatic cancer.

She was 76. She's 76, so her death's not a surprise. You're dying of pancreatic cancer, it's not a surprise. I read one estimate that her net worth is probably $80 million. And just for you folks that don't know what this means is, I mean, she lives in California. So the taxes that they're going to pay on this estate are ridiculous because of not having a plan. The lawyers are going to end up with half of it if there's a fight um you're gonna you basically have cut an estate in half by simply not doing a will and i'm gonna read i was an aretha franklin fan i mean

she i mean that what an iconic person and i'm not not here to run her down but i that that's a cautionary tale for everyone else it really is dave and and i love what you said about caring enough for your family to have a plan. And that's essentially what this is. And the trend continues. You know, every couple of years you hear about something like this. And it just lets me know that we've got more work to do to let people know that you don't want to, you know, turn this emotional loss into now a financial battle. And that's exactly what ends up happening. Not long after her death, her sons are having to file paperwork, which may or may not be accepted, which then could

be contested. And you're right. The attorneys end up taking a lot of the money for this lack of planning. And it's something that can be prevented, Dave, for a document, a will under $100. Yeah. Well, in her case, it would have been more than $100. It would. I mean, she could have spent $1,000 and probably saved $20 million. And this is what I've heard from people that have listened to you over the years, and I've had people, you know, I was coaching people years ago, and with you talking about the legacy box, I can't tell you how many people have told me what it did for them. It gave them a game plan. It gave them an opportunity to be able to grieve and miss their loved one,

but also follow their wishes. And I think that's what you want. You want to be able to honor your family member. And the best way to do that is give people a written plan, write it down so they don't have to guess. And you get that special item going to that special person for a reason. And so I just, it's one of those that makes my heart hurt. And then I feel for the family because this thing could, could go on for two to. And so it's one of those that makes my heart hurt, and then I feel for the family

because this thing could go on for two to three years before it's finalized. Or more. I mean, I've seen estates that we've been around that have gone on 10 years before they get closed up. And, I mean, everybody gets the money except who's supposed to when that happens. It goes everywhere and everything. The assets deteriorate. They're not being managed well. There's all kinds of problems with this.

And you know the big one, and you and I have sat in a lot of these. When I first started with you, obviously, and you as my mentor, people coming in to see you and wanting to guide. But we also know the family drama that can happen. When these things aren't laid out, now I've seen families broken apart. Oh, most of the time. Yes. I mean, most of the time. Yes. I mean, most of the time.

It's more than half the time. Any little weakness in the relationships, and you put $80 million across something, you'll strain it. Yes. I mean, if those three boys don't get along really well, this is an opportunity for them to, well, Mama said I got this, and she, I got the royalties from respect, you know. Well, you know, sorry, Don, but that ain't written down. So you got nothing except your portion as a legal heir in the state of California. And by the way, all a state law, probate law is state law.

It's not federal law. And so you update your will when you change states. If you move, if you wrote a will in Louisiana, it is not valid in Georgia. Louisiana is French-based law more than English-based law. Georgia is English-based law like most of the other states are, and there's substantial differences in the law and in the language that needs to be in a will. So your will needs to be state-specific. And if you go through a divorce or someone in your family passes away in error,

if you go through major changes in the family of some kind, you need to update your will anyway. And so, you know, in our case, we're constantly reviewing ours and reviewing the overall plan. We actually have a detailed plan for the company that we go over with the Ramseys and with the leadership team once a year and update it once a year of exactly what will happen if I die in this year. What will happen in the first day, the first week, the first month, the first 90 days in the first year. It's all laid out in detail. Exactly what the, you you know the press release

is already written and uh if a milk truck catches old dave you know that kind of thing so but i don't want to ride away i might die you're gonna die we've done detailed research 100 of you are gonna die i'll never forget the first time i heard you say that at a total money makeover event you said it's a you there's a hundred% chance that we never get out of this life without dying. And I was like, there it is. And so instead of trying to put off the inevitable, we need to embrace it. Okay, Dave, let me ask you this. Why do you do that?

Why do you review the estate plan for this company and this entity each year for the plan? Well, it's good leadership for the company, for the customer. And I want this. Wealth will be a curse to your family or a blessing to your family, depending on whether you do this or not. And when you don't have a plan, it's more of a curse than a blessing. And when you leave people that are dysfunctional wealth, it's more of a curse than a blessing.

And so our plan includes you're not in the plan if you're going to be dysfunctional. You're not going to be walking with God. You're not going to be managing God's money. We're not mean about it, but we're very hardcore about it. And everybody knows, so there's no surprise if one of these Ramsey kids decides to get off the rails, they're going to be doing that on a very thin budget. So that's how it works. Oh, my gosh. Folks, get your will done.

Yes. Get your will done. Everybody needs a will. Chris Hogan with me this hour answering your questions at 888-825-5225. This is the Dave Ramsey Show. Okay, I need you to listen to this, because one normal routine that everyone does can cause total chaos in your life. Folks, I'm talking about the simple act of using Wi-Fi. When you're on Wi-Fi anywhere in public or at home, you're at risk of hackers easily

seeing every site you visit and search you're doing online. It doesn't matter if you're doing it on your cell phone or your laptop. I'm not telling you this to scare you. I don't operate in fear. But I want you to be aware and take action. You need to download Hotspot Shield. Hotspot Shield helps keep your connection on your own Wi-Fi and any public Wi-Fi secure. 600 million people worldwide have downloaded Anchor Free's Hotspot Shield. Download it now.

My listeners can save even more by going to hotspotshield.com slash Dave. That's hotspotshield.com slash Dave. You can be secure in seconds. Download Hotspot Shield today. Chris Hogan joining me this hour, Ramsey personality, author of the number one bestseller, Retire Inspired, and the new book that the pre-sales have begun on, Everyday Millionaires, How Ordinary People Build Extraordinary Wealth and How You Can Too. We're answering your questions at 888-825-5225.

Frank's in New York City. Hi, Frank. How are you? Hi, I'm fine. How are you? Better than I deserve. What's up in your world? I just have a two-part question.

One is about a car lease that's ending. Another is about my overall process of trying to get debt-free. I think I had partly an income problem because I was partly living off of credit cards, using them to make ends meet. So when I was trying to pay off debt, I had to account for that. And so I started working a little extra

and I'm making a few hundred dollars extra every two weeks. But still, I've been listening to you for about 10 months, and still, it's just going very slow for me. What is your income, and then how much is, you got extra income of about 400 bucks a month. What's your main income? So my income is about 220,000 a year. Okay.

That does not equate to moving slow on debt with me. How much debt have you got, dude? I have $166,000, and then I think you include, I have a second on my house. I think you include that. $166,000 on what? I have student loans of $96,000. I have credit cards of $56,000. I have some personal loans of $14,000.

Okay. And you keep saying I. Are you single? No, $14,000. Okay. And you keep saying I. Are you single? No, my wife and I. Okay. And your household income is $200,000 plus? It's about $220,000. Okay.

All right. So here's what's running through everyone that's listening's mind. Where is all this money going? I just have so many payments i have like 25 or more credit cards and then you know a loan for a for a hvac system all these loans so whatever let's play pretend for a second stop a second let's play pretend for a second not payments let's just say that you lived on $150,000 that would cover your lifestyle, your food, shelter, clothing, transportation, and utilities,

which is an awful lot to do that. So I'm being absurd. It should be less than that, even in New York City. Yes, I know what New York City costs. I'm there all the time. But let's just say that you took your $150,000. Then that would leave you $50,000 to throw at debt. And not counting interest in four years, you would be debt-free.

So something's wrong in your budget. You guys are spending like you're in Congress. Yeah, we are spending. Things do come up. For example, last week we hadn't planned to put my youngest boy in football, and then we decided to put him in football. So that was a couple hundred bucks. That is not your problem.

$200 isn't your problem, man. $5,000 a month is your problem. You're spending $5,000 a month on stupid stuff. That's $60,000 a year. Chris, what are you seeing here? Frank, are you all still using the credit cards? Occasionally, yeah. Yeah.

Is it you or your wife that's using them? Me. Okay. So you are the spender. Well, I'm using it to like those, though. Yeah. No, you have to acknowledge it. Say, Frank, you're the spender.

And so what you have to do is really have this mind shift. You're working way, way too hard for all these debts. That's why you're not feeling any progress. And so what has to happen, Dave hit on it. You've got to look at your budget, and you've got to get mad. See, right now, you're just irritated with that. I want you to get mad at it and really cut back your lifestyle and say, this changes today, and watch what happens.

But you've got to get together, you and your wife, on the same page, in agreement 100%. Okay, dumb people don't make $220,000 a year, so you're not dumb. So if I hired you and I said, i said okay frank here's your side job i'm gonna pay you a hundred thousand dollars a year and i want you to go into this family and i want you to get them out of debt and they make 200 000 a year and they have 166 000 in debt you would write do a detailed written plan you would cut their life to the bone and you would clean up their mess very, very quickly because that's the only way you're getting your $100,000 as a consultant. I'm not going to pay you if you don't get them out of debt.

And so you're smart enough to do this. You know mechanically, tactically what to do. You spiritually and emotionally and relationally with your wife have got to commit to doing it. That's what Chris is talking about, the anger. And you've got to reach a point where you're not saying, well, this is inconvenient. Instead, you're going, I've had it. I'm not living like this anymore. That's when you change your life.

And we've seen that, Chris, for years. We really have, Dave. And I'm talking about people that aren't making anywhere near this kind of income. I'm talking of the single mom that I remember sitting with that was making 30 grand. I'm talking about, you know, the single guy that had 48,000 in credit card debt, but he was making 70 and he didn't go to a restaurant. He ate ramen noodles and peanut butter. Matter of fact, he twitched when he saw peanut butter after he got out of debt.

He ate it so much. I still twitch when I see tuna fish. Yeah, I don't I don't say the word, Dave. I hate tuna fish. I do, too. But the thing is, is you have to, Frank, make a decision for yourself.

Are you going to keep making these credit card companies rich and the personal loans companies rich? Are you going to start to do the thing that I think you want to do deep down in your heart? And that's build a legacy for you, your wife, and your children.

It's your decision. Here's your test. This is a test of the Emergency Frank your decision. Here's your test. This is a test of the emergency frank financial system. Here's the test. Sit down with your wife tonight with every dollar and do a detailed written plan and cut up every credit card.

If you don't do that tonight, I can't help you. Get the scissors out. It's time for plastic surgery, dude. You are in desperate need of a plasectomy because you've been limping along long enough. You've got a radical mess that's going to require a radical solution. Dan is with us in Chicago. Hey, Dan, welcome to the Dave Ramsey Show. Hi, Dave.

Hi, Frank. Thanks for taking the call. Sure. This is Chris. We got rid of Frank. How can we help? Oh, sorry about that. Oh, I'm trying to figure out an opportunity came up to see.

I might be able to purchase a family lake house. Neat. Yeah, I'm just trying to. It's got some sentimental value, but I'm trying to see if I can afford it. Can you pay cash? I cannot. Then you can't buy it. Okay.

Well, I've got some good income coming in. I do have some debt. I have a feeling. Well, anyway, so if that's the answer, I get it. But if there's any way you could help me, I'd appreciate it. I am trying to help you. I've got a lake house. It's one of my favorite places on the planet.

Chris and his family have been down there. I pulled his boys around behind my boat, and he knows when I'm down there, my life is good. So believe me, brother, I get it. But here's the thing. A lake house is a toy. It's a luxury item. A second home is a luxury item. You don't buy luxury items with debt.

Not if you want to be wealthy. I understand that. I just recently started making a good amount of money, and I think I have a short window to be able to buy it. Okay. Can you get them to rent it to you with an option for a short window? Potentially, yeah. And you can pay cash for it during that time because you make so much money? How much money are you making?

About $325,000. Wow! Good for you! And how much is the lake house? It's about $350,000, but it's worth $400,000. I'm getting a deal on it. Great. So how quick is it going to take you to save up money and pay cash for it?

Well, my wife has some debt, so I want to pay that off first. The plan was to start saving. I just have to make a decision by next summer. Gotcha. Okay, so let's try again. How much debt does your wife have? About $87,000. Okay, so we need $450,000 to pay cash

and pay off the debt, am I right? Right. And we make $350,000. And we make $350,000, so how fast are you going to do this? I'm hoping within the next six or seven months. It's going to take a little longer than that. You're not going to have $450,000 in the next six or seven months. Well, I have some savings, too.

How much do you have in savings? $50,000, currently. Okay, so you don't need $450,000, now you need $50,000. How much do you have in savings? $50 currently. Okay, so you don't need $450. Now you need $50. Put the $50 on the $80. Boom, that's down to $30. Knock that $30 out real quick. Now we've got to save up the lake house. Who holds the title to the lake house now?

My cousin. Your cousin? Yep. Ask them if you can rent it for the next five years with an option to buy it and lock in the price. Okay. And start renting it from them, and then write a check and pay cash for it as quick as you can. You're going to have the money to do it, but I just don't want it to get away from you since it's sentimental, Chris. Dan, what's sentimental about this lake house?

My dad bought it in the 70s, and he sold it to my cousin. Okay. Did you go there when you were a kid? I went there when I was a kid, and I just don't want it to my cousin. Okay. Did you go there when you were a kid? I went there when I was a kid and like, I just don't want it to slip away. All it takes is one emergency trip to the dentist to blow your budget quickly. Now, I'm not a fan of dental insurance. I think it's a waste of money. But there is another option.

It's called One Dental and it's not dental insurance. One Dental is a discount program that functions like a membership club. Think of it like Costco. You join for a small yearly fee, and you save big time every time you use it. I'm talking discounts on all procedures from routine cleanings all the way to root canals. Plus, you can choose from tens of thousands of dentists from all across the country, including orthodontics for kids and adults. And if you've already been told by a dentist that you need a procedure,

but you haven't gone yet, it's not too late to save. Join One Dental. Schedule your appointment with a One Dental provider and save big instantly. No waiting, just instant membership and instant savings. Folks, One Dental is a smart decision for you and your family. Start saving today at OneDental.com. That's OneDental.com. So going into that break, we had technical difficulties.

James Child's brain left the building. He left his body here. And now we're back on the air. So it's good. So mid-sentence, I stopped talking to Dan. Chris and I stopped talking to Dan in Chicago. And so let's go back to Dan and make sure we properly answer his question because it's very important we get this lake house. Okay. So he's got the opportunity to buy a lake house from his cousin. His cousin wants the money by next summer. It's $350,000. His wife has $80,000 in debt. And what have I got?

I got the wrong guy on the air. Now I got technical difficulties. All right, let's try again. Dan, there's Dan. Hey, Dan. Are you with me? Yep, I'm with you. Can you hear me?

Yeah, let me recap. So you just got this wonderful new income, which is like $350,000. The lake house is $350,000, and your wife has $80,000. And he wants his money by next summer. Is that the numbers? That's the numbers. You know, I also have some other, you know, investments, and we have a house with a pretty good position on it, I guess.

Got it. And so what other investments do you have that are non-retirement? I have some stock options that I've exercised that, you know, I can't, they're not quite liquid, but they should be within the next five years. Will they be by next summer? No. So I guess nothing then. Okay.

What are they worth it's hard to say somewhere between 50 and 100 000 right now but it could go up okay all right so your cousin has bought another house up there and needs his money is that what i heard yep that's right okay um he would i think he'd be flexible on it like i don't think i'd have to get a mortgage he's he's pretty financially well off okay i just really want to see like am i am i crazy no you're not no you're not crazy i just want you to pay cash and i think you were right to get your wife out of debt first your wife is you you're married to her so it's your debt too so yeah let's pay the 80 000 off and let's lease from go ahead and lease the house from your cousin,

and take the use of it over with the option to purchase it for $350,000. And if he will give you one more year over next summer, you should be able to cash flow this. Because here's my numbers, okay, if I'm doing this right. $350,000 income times two years is $700,000 income. Yep. Out of that, I ought to be able to buy a $350,000 lake house and pay off $8,000 worth of debt. But I need two years from today, not one year from today.

Got it. Okay. You see how I did that? Yes, I do. Okay. And we live pretty frugally too so i really appreciate it this is giving me the peace of mind that i need yeah and a good plan so i really appreciate it here's the thing you will live to regret luxury items that you buy with that even if you pay them off real quick they the boat doesn't drive the same, the ski house doesn't ski the same, and the lake house doesn't lake the same. I mean, it's just I've done it wrong, and so I'm trying to get you to do it right. As you said, the beautiful blessing is you've got this great income. So just get your cousin to give you one more year.

Do a written option that you record at the courthouse, the right to purchase for two years from today, and lease it from him, rent it from him for some amount. I don't care if it's $100 or $1,000 a month. It doesn't matter to me. And then you get the use of it during this two years. You're the tenant. And any time during that two years, you can write him a check and close it, and you should be able to pull that off.

That'll work. Dave, with him having that $50,000 in in savings would you put a down payment on this would you give a set dollar amount to the cousin only if he requires it okay yeah okay in a typical uh real estate transaction where you're doing an option purchase something for two years you've got a you can have non-refundable option money it's not like earnest money. Okay. I'm purchasing the rights to buy it at a price. Okay.

And if I did that on a piece of ground, a commercial real estate thing, which I've done, to tie up the property for a period of time until I can put the cash together, because I don't borrow money, obviously, then you might say, in that case, I might put up $20,000 or $50,000 nonrefundable. Oh. That buys the option. But in the event you do close, it could apply to the price. To the price.

Okay. That would be a fairly typical transaction. But that's more of an arm's length thing. This is Cousin, and Cousin's well off. Cousin didn't need the money. So I'm figuring Cousin's going to lease it to him for almost nothing and just give him the piece of paper that says he can buy it any time during the two years for $350. I want to do that.

Tie it up. I want to tie it up. I want a business transaction, but I don't know that there's any big money that needs to happen up front. And then you use the $50 towards the $80 and pay off mama's debt. And let's get the household debt cleaned up, which will accelerate your ability to save and buy the lake house. But always buy your toys with cash.

And this one's a little bit different to america because this is family and we're dealing with a sentimental property so you hear dave walking through the process of making it legally sound so everyone knows what's going on and we get our feelings on paper yeah and well it's i've even noticed you know with me i i'm a integrity i'm a person of integrity i keep my word but i forget and so when i do a deal that's gonna last two freaking years i'm gonna do 47 000 other things during that two years i need to write it down and the you know that's what contracts are for they're just a method of communication and it just it helps everybody with their memory i like

having the memory for me this is what i said said I would do, so I will do it. And if I go, what did I say I would do? I have to remember. I want it written down. I don't want to have to think about what I said I would do, and then once I know what I said I would do, I'll just do it. It's pretty easy. All right.

Alicia is with us in Louisville, Kentucky. Hi, Alicia. Welcome to the Dave Ramsey Show. Hi, Dave. How are you? Better than I deserve. Your question for Chris and me. Yes, I have a two-part question. I deserve. Your question for Chris and me. Yes,

I have a two-part question. I'm getting ready to come into some money and I'd like to get a little bit of advice on that in my current financial situation and also I'd like to know if you think I could move up in car. Okay. How much money are you coming into? I'm coming into about $80,000. From where? Inherited.

From who? Great Aunt. Okay,000. From where? Inherited. From who? Great aunt. Okay, cool. I'm sorry for your loss, but that's a wonderful blessing. Okay. Oh, no. And so do you want to move up? How much do you want to move up in car?

I'm going to get about a $20,000 to $25,000 car. What's your household income? $80,000 a year. Good. What's the other car worth? About $5,000. Okay, good. Good's the other car worth? About $5,000. Okay, good, good. You're going to pay cash for the car?

You got any debt other than the house? I have student loans of about, I don't have a house. I rent. I have about $23,000 student loan debt. However, I have about $100,000 saved already in cash. Oh, wow. Okay. And $22,000 in investments. Okay, good for you. alicia how old are you

i'm 30 you are rocking it how did you save this money i've just i've been listening today since 2012 and i've just been shaving my butt off honestly what were you saving toward what was your motivation i just wanted to get towards retirement just to get myself ahead. I thought I was going to end up buying another house. I actually sold the house, and that's where I got about $40,000 of the cash. Okay. So I've just been kind of stacking it aside, deciding what I want to do. Well, I mean, in looking at this, the blessing from your great aunt that she left you this money,

you've got an opportunity to get debt-free and get a car, right? I mean, that's an incredible opportunity that you have, and you still would have some money left over. When is the inheritance coming? They said about another month or two. We're knocking on two years. It's been about two years since she passed away, so it should be closing. And you said your household income is how much?

I make $80,000 a year. And you have $100,000 sitting in savings? Yes. Okay. I'd write a check today and buy a car and pay off your debt. You hadn't been listening to Dave either. Well, I've just kind of been hesitating. It's hard to write those checks, Dave.

No, it's not. It takes about 10 minutes you're gonna feel so much better go buy you a car write a check for it pay this off write a check for it you're still gonna have 50 000 bucks sitting in your account waiting on the ante at 80 right and you're gonna have a car and no debt right that's called a win-win, Alicia. Okay. Yeah, you can win. You give yourself permission. You've worked hard.

You've done so good. Yes. Take a deep breath and play through. But I want you to promise when you buy this car, you're going to keep it for at least five to ten years. Absolutely. All right. For sure, you're paying cash. But don't be hanging around with debt with money in the bank.

Write a check. Be done. Get it out of your life. Evict it. Wow. Good job, kiddo. You're doing really good. Finish up.

Play through. I can see the finish line. You're running. Run through the tape. Run through the tape. Don't stand back there and watch everybody else run through it. Finish. This is the Dave Ramsey Show. Did you know that if you combine the data breaches that have occurred in the past 12 months,

almost every American has had their personal info compromised or hacked. Over 50% of our listeners and viewers tell us that they or someone in their family has been a victim. And 70% of those folks have had it happen more than once. See, this is unbelievable. Once thieves get your info, the risk never goes away, and they can use it whenever and however they choose. It has become an issue of not if but when that's why the only plan i've ever recommended is through zander insurance i actually sat down with them and we put together a plan that i felt provided the best protection but didn't waste dollars on things you could easily

do yourself or were just gimmicks the key is getting protected before you're a victim and it's too late. Go to Zander.com or call 800-356-4282. We are all at risk and it doesn't make sense to wait. Numbers don't lie. That's Zander.com or 800-356-4282. Chris Hogan Ramsey personality joins me this hour and we're celebrating this month the launch a few weeks ago the pre-sale on his new book the book will actually come out in January but we've started selling it we've already sold over 12,000 of them. This book is very popular. And, again, it comes out in January.

It's called Everyday Millionaires, How Ordinary People Built Extraordinary Wealth and How You Can Too. The exciting thing about this book is we paid almost $50,000 to an outside research firm to help us put together the research methodology as well as just to give the thing some stand-alone credibility. And then we used that methodology with people who are not Dave Ramsey followers, who never heard of Dave Ramsey or Ramsey Solutions or Financial Peace or Chris Hogan, and did a huge survey, a huge research study of millionaires. And then in addition to that, we over doubled it by taking it to a total of over 10,000 millionaires have now been researched using this research methodology.

The findings from that, what makes makes a millionaire where do millionaires come from what do you need to do if you want to be one in other words are in this book and this is the largest study of millionaires ever done by far there's not even a close second and it all the research methodology is flawless it's beyond reproach And so if you don't like the results of the book, tough, because they're what's known as the truth. So, Chris, this has been fun stuff. David really has. The team has done an incredible job. The outside firm that we used, did a great job. The findings, the myths that we break down in this book,

the statistics that we're going to share with people, when they read it, they're going to be blown away. And the stories of these millionaires, Dave, the people that have just worked their way hard, I just can't wait for people to get it in their hands and read it. Because the mythology is that all millionaires, there's this whole wealth inequality movement, this socialismarchy movement and all this stuff by people who've lost hope and feel stuck um and have a certain political agenda and they basically have spread lies because

the truth is that over 90 percent of the millionaires are first generation rich they started with nothing and are close to nothing and inherited no money or almost no money. They did not become millionaires due to inheritance. That's the conclusion we've come to. Now, some did, but the percentage is very, very small, which gives me hope that I can do it. And I knew I could do it because I'm so stupid. I've done it twice. Started with nothing, became a millionaire by the time I was 26, lost everything, had to do it again because I'm stupid.

So great book cover. Chris Hogan's pretty face on there. Actually, our creative team should be congratulated because they can take Chris Hogan's face or my face and make it look good on a book. That's pretty dadgum good work right there, I'm just saying. Yes, they're talented. And when you preorder the book, we're going to bribe you because you don't get the book

until January, so why would you buy it now? Because we're going to bribe you, right? That's exactly right, Dave. We're going to give you $50 worth of free items. You're going to get the audio book. You're going to get the e-book. By the way, the audio book is read by Chris Hogan. Oh, yeah.

Yeah, so the Not a Squeaky Little Voice. No, it's not going to put you to sleep. Mickey Mouse is not reading this book. Barry White is reading this book. I'm going to read it word for word. And this is not a half book. Some of you all know about some of these audio books out there. They give you half the book or an abbreviated version where I do the whole book.

So you're going to get the audio book, the e-book. And guess what? Two lessons. You're going to hear from me about how to retire inspired. But you're also going to hear from Mr. Dave himself talking about that. It's okay to build wealth. And so this is a great opportunity for you to get this information, but not only read it and put it in your head and your heart, but to share it with people because it's only 20 bucks people. And you get $50 worth of stuff.

That's right. Now you'll get the two videos. Now the ebook, the audio, and the real book in January. Right. When it all comes out. And so that's how it all works. And if you want to put it together with Financial Peace University, you get 20% off of all of that. You can get all of that right now for only $119, which is less than we usually sell Financial Peace University for.

So here's how this works, okay? The stuff we teach you in Financial Peace University is what you're going to learn when you get the millionaire book that the everyday millionaires do. That's right. And so this works together. These are not two unrelated things we stuck together. The teachings in Financial Peace University that we've been doing for all these years lead you to be able to become one of these everyday millionaires. And so it's a one-two punch, and they fit right together. So just go to DaveRamsey.com, check all that out, or ChrisHogan360.com, check all that

out, and we would love to have you. Go ahead and make sure that your book is secured, and we will get it out to you the first of the year. Todd's in Cleveland, Ohio. Hey, Todd, your question for The Dave Ramsey Show. Hey, Mr. Ramsey, long-time listener for decades, first-time caller. Thank you. Appreciate all the advice you've given over the years, and we've applied some of it.

And I've got a situation where my wife and I just moved states, and we bought a new house, and we still have our previous house that's been on the market for six months, and getting to that time of the year where it may or may not sell. And my wife and I probably aren't your typical callers, but I'm trying to get your advice on what we should do. And the situation is she and I are both physicians, so we have very strong incomes. The only debt we have is she leases a car. We've paid off our school loans. We've paid off our credit cards.

So we don't have any other outstanding debt. And we have, we bought the house for $835,000. I have about $135,000 equity into it. And my question is, do we accept a lowball offer for less than what we paid for it just to get out of it and move on and take that money? How much was the offer? Well, we actually haven't had an offer yet oh but i'm anticipating an offer probably around where we uh it's listed at 875 and we put in about 25 000 because it was an unfinished basement and

we did all that what do you anticipate the offer being somewhere between 825 and 850 and what's your household income? My wife currently makes $650,000, and I'm negotiating a contract now, so it'll be up from there. So you're going to have a household income of a million dollars? Probably by the time we're done, yes, sir. And you're going to let $20,000 bother you? Well... Or $40,000 bother you? And forty thousand forty thousand dollars bother you and this is what i'm asking you because my wife is like just sell it get rid of it your wife's

right move on um or do we if the offer was six if the offer was six hundred i would call it low ball yes okay okay um the house spent on the market six months they're not lining up around the block to buy this house now no houses above 700 000 have sold in this area in about a year take the offer um take the offer get out of dodge i don't know where dodge is but get out of dodge okay yeah you see what i'm doing i mean it's a small amount of money as a percentage of your world i understand that i I understand that. I appreciate that. And it's just your level of intellect, you do not want to take up space in your brain as powerful as it is being distracted with something like this. You have much more important things to deal with.

Apparently, people making your kind of money do, generally. They don't pay you for being stupid at that level. That is correct. I don't think so, yeah. I mean, your level of concentration, your level of focus, your level of intellect does not mean to be distracted by $50,000 and a million-dollar household income. Okay.

That's my analysis, anyway. I'm with your wife. Okay. Okay. I'm with you. I don't like to lose money. I'm not going to sign up to lose money, but you're in a slow-moving market with a slow-moving house. Get that thing sold.

Yeah, it's got an anchor around him right now. And you're absolutely right. $40,000, it is not worth it. Free up your mind, move on, and then don't repeat this mistake. If you can. Yeah. Don't buy until you sell. We're on the top end of the market, too.

That's right. We're on the top end of the market, and then you got stuck, apparently, because nothing over $750 has sold in a year. Dave, would you pull this thing off the market and relist it at a lower price? If it doesn't sell, I would. Yeah, I would, too. Move this thing. I mean, we're starting with something. If you make $100,000 a year, we're talking about an asset that's $100,000.

If you make $50,000 a year, it's one year's income. The asset's worth one year's income or less. So, yeah, don't let a movement on that distract you too much. That's what we're dealing with. Chris Hogan, thanks for stopping by. Thank you for having me, Dave. Chris Hogan, Ramsey personality, number one best-selling author, and author of the new book, Everyday Millionaires. Be sure you get your copy while it's in presale so you get all the goodies.

This is The Dave Ramsey Show. Hey, guys. This is James Childs, producer of The Dave Ramsey Show. I'm excited to announce that we're now carried on 600 radio stations across the country. To find one near you, head to DaveRamsey.com slash show.