The Ramsey Show - App - If You Do This You’ll Be a Multimillionaire (Hour 2)

Episode Date: August 21, 2023

Live from the headquarters of Ramsey Solutions, broadcasting from the pods of Moving and Storage Studios, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual, amazing relationships. George Campbell, Ramsey Personality, co-host of the Smart Money Happy Hour and host of the George Camel big-time hit on YouTube,

The George Camel Show. That's Camel with a K. He's a Ramsey Personality, and he's going to be answering your financial questions along with me this hour. The phone number is 888-825-5225. We'll answer your life questions as well. It's what we do here. Tom is in Dayton, Ohio.

Hi, Tom. How are you? Hello, Dave. Hey, what's up? This is my question. I'm 70 years old, and I'm thinking about buying a piece of farm property to leave to my daughter's grandkids when they get older. And I was wondering if you thought that was a good idea or not you gonna pay cash for it yeah you got plenty of money

well we're worth about five and a half to six million and we made it the old-fashioned way we worked hard for it just like you what'd do? What were you doing for a living? Well, the most I ever made in my life was about $55,000 a year. Doing what? And I was doing about the same thing. And we're both retired now. What did you do for a living? What was your career?

Basically a handyman. Did that my whole life. And just saving money at $55,000 a year got you $6 million. Yep. And it was even more than that before 2008. That wiped out about, I think, about $2.5 million. It took 10, 11 years to recoup that back again. So you got a lot in real estate. I don't have any real estate except for the home that we're living in. That's paid off. So what did you do? Did you invest it all into retirement accounts? Yep, and fidelity.

How much is the land? My house right now? No, no, the land you want to buy. You said it's a half million? Well, that's a good question. With that net worth, how much do you think I should afford to spend? Because our financial guy told me we would never run out of money if we went to a nursing home for both of us. We should be able to live to be like 99 or something in those and still not run out of that money.

So I'm thinking if the market does take a correction here, wouldn't it be wise to have something in like some farmland and lease it to a farmer and he's paying rent on the property and making enough to pay the taxes on it yeah farmland as an as an roi uh in terms of you know it's it's an alligator it eats money it doesn't make money um you know you can't lease it to a farmer enough to justify the investment uh if you're going to do that you buy income producing property um you know as far as an investment goes but you're wanting something uh because you just like some dirt and you want to leave some dirt to your kids and grandkids and i don't have a problem with that so what are you thinking about spending on on this dirt? Well, maybe a million, two or millions, like a hundred acres, and right now it's going for about 10,000 an acre. It could go higher. If you go to the higher price land,

it's basically a big flat piece of land, no hills. So I'm looking at southeast Ohio. So you actually want some hills, right? I want some hills, but I don't want it all in woods either because that doesn't grow anything except trees. I don't think you're buying this for what it grows. You're buying this for what it will go up in value over time and for the enjoyment of going to the family farm. Right.

Okay. I bought a piece of farmland in 08 when everything went down um that i got a really nice deal on and i've added a few acres to it as from neighbors over the years and uh it makes me absolutely no money every year but i have a really good time going out there and shooting and hanging out with the grandkids and they play in the creek and and we went out there this winter and took dragged them up the hill on the four wheeler and they rode down in the sleds and you know so really important stuff that made absolutely no money right so that but that's so my point is this is kind of a family toy but you can afford a family toy of a half a million when you got six million or 700 000 if you got six million

but i really wouldn't i don't think you need to justify it with what you what you're going to make on it because you're not going to make anything on it in your lifetime they're going to sell it and double their money someday double your money someday but or triple it but but you know you're not you're not going to see it now i just kind of like to maybe go out on weekends and bush hog or something like that. Yeah, it's real therapeutic. I went and cut down a whole bunch of crap the other day with my bush hog. It's really therapeutic. It just destroys everything.

It's awesome. Yeah. So, Tom, look at it this way. I want you to go do it, but I don't want you to justify it. I want you to justify it because if you took a half a million dollars and set it in the middle of your floor and set it on fire, your life is not going to change. So you can afford a half a million dollar toy.

Yeah. I love the way you tell people no nonsense, you know, just right as it is. And I've never wasted money on going to a lot of restaurants i do my own change you're not wasting any money on anything you're amazing i mean it's pretty freaking incredible i think you ought to enjoy it time to spend some of it but think about it this way you spend half a million that still leaves you with four and a half five million can you live off that 10 million you'll be okay in seven years it'll double anyway i don't think you're going to spend much of it beyond that. Yeah.

So I think you're doing this for a great reason, and I'm excited. How old are your grandbabies? They're 18 months right now, so I figure in another 14 or 15 years, I might not be around by then, but if I am, that's what we did when we were young. In another two or three years, they can help you drive a tractor with a bush hog on it. Well, they're driving these little electric cars around New York. I know, but they're 18 months. I mean, we're not putting them on a tractor right now.

But, I mean, it's good for them. I mean, they'll have that memory of riding with it. I was out there digging with a skid steer, digging up holes the other day with my three-year-old in my lap. And, you know, so he may not remember anything else, but he'll remember Papa Dave and digging a hole. Well, I'm pretty sure Charles, Rachel, he's already obsessed with trucks. Absolutely no other talents, but Papa Dave could dig a mean hole. That's something. I remember nothing else about the old man, but he was a hole-digging fool.

That's a talent. You know, people pay good money to have big holes dug, Dave. You might have a second career if this doesn't work out. You never know. Bush hogging and hole digging. That would be me. They don't call him Dave Bush Hog Ramsey for nothing around these parts. Oh, it's too fun.

Hey, I got memories like that of my grandpa, you know, and the first time I got to, and I was a city kid. I mean, I grew up in the suburbs, but getting to go to his farm and driving his tractor and I'm 10, 11 years old and he let me go out driving out through the middle of the field. I guess there wasn't anything out there I could hurt.

Except yourself. There you go. Except myself, yeah. The seatbelt probably wasn't working. I doubt the airbag was working, but what do I know? I didn't wear a helmet either, so there's a lot of shocking things in this story. There's laws nowadays. I don't think you could get away with that today.

I probably got a callus, too, doing it. You never know. It could have happened. It made callous, too, doing it. You never know. It could have happened. It made you the man you are. Yeah, you never know. Made him Dave Bush Hog Ramsey. You're amazing, Tom. Six million bucks.

Making 55,000 bucks is a handyman. Don't you people tell me it can't be done. Oh, and he didn't inherit it, you stupid anarchists. This is The ramsey show our question of the day comes from is sponsored by neighborly your whole hub for home services is your to-do list too long whether it's a simple repair or a whole list of home improvements Mr. Handyman's experienced professionals are here to make your home work for you. Visit neighborly.com to find expert home service providers, including a locally operated Mr. Handyman near you. Today's question comes from Kyle in Utah.

He writes, I know you recommend paying for things with cash or a debit card, but how do you feel about digital payment options like Apple Pay, Zelle, and Venmo? It's easy for me to just pay with my phone, but it almost feels like play money at this point. Should I stay with what's convenient but a little harder for me to track with digital payment, or what's more cumbersome and takes more time to deal with with pulling our cash and splitting everything up?

Feels like I can't win either way. Ugh, the classic millennial problem, Dave. Stuck between a rock and a digital hard place here. This is difficult. But this is true. I've been seeing these videos where people feel like when it's digital or it's on a gift card, there's so many ways they don't feel the pain at purchase. And so I love that he's asking this question because he's recognizing this. He's self-aware that this is a problem for him. But he's saying, you know, with digital payments, I do see that it's easier to spend. It's even more frictionless.

I mean, Apple Pay's tagline is cashless made effortless. They know that they'll get you to spend more if you can just double tap on your phone and hold it near reader. You don't even need to pull the card out anymore. So that's pretty wild. And I know we're seeing higher levels of buy now pay later and all these debt issues. But when it comes to digital payments, here's my take. If you are doing a zero-based budget and you are aware of what you're spending and you've allocated all of that, it's okay if you do Apple Pay instead of pulling out your debit card. But what he's saying is he knows that he's spending

more and he feels it less. Yeah. And, you know, the MIT study that's classic is that when you spend actual cash, like hundred dollar bills with like, you know, president's faces on it and stuff, right? When you lay that down on the table and the cashier picks it up and they hand you your item, that it activates the pain centers of your brain. Your brain says, oh, crap, I don't have that money anymore. When you use a digital transaction, even a debit card, your brain does not activate. It doesn't show that. The pain centers are not activated, meaning that you're not emotionally registering the fact that you're spending money.

Consequently, you spend more, the less friction there is. Now, all marketers know this. Every one of us that have a web store of any sophistication anyway, we are constantly measuring Anything that causes you any kind of problem anytime we make you click one more time we lose a bunch of you and you don't close the sale you abandon the cart and We have to make it super easy The easier we make it the more of our stuff you. All of us that have a web store know that.

And so the ultimate example, of course, is, as you said, I think the newest ultimate example, before this it was Amazon Prime, because you can just push a little yellow button that's very, even the color has been tested. We've tested different colors on submit on an order, and different colors cause you to buy more. Oh, if it's green button, if it's a red button, yellow button. And with different products, it's not the same color even.

Wow. Sometimes it's a different color with a different product. But that's how detail we get into your mind. How quick, easy are we making it on your emotions to where you just don't feel the knife as it goes in, right? You know, that's how marketers are doing it, okay? This is how it really works in the digital world. So Amazon Prime, you don't have to enter your card number.

You don't have to enter any shipping information. You don't have to click here to use same billing information as my shipping information. You don't have to disavow one of your children. You don't have to do anything. You just push a button and crap shows up on your porch. That's the ultimate in low friction until the Apple Store. Now you walk in, grab something. Walk out.

Walk out. It's almost like shoplifting. But the Apple phone knows you were there and registers your purchase. You don't even have to go. You don't have to stand in line at the register. There is no registering that anything occurred. There it is. In your brain.

And so that's the ultimate in low friction. I mean, it feels illegal almost in terms of I just walked walked in here, took something and walked out of the store. I expect something to go beeping and mock up the cop to ride up on his unicycle and not tackle me. You know, I mean, I'm, I figure something, you know, it's just feel, doesn't it? I mean. Oh yeah. You know what I'm talking about?

I did this at the Amazon store in Seattle. They have one. It's a grocery store, convenience store. Yeah. Where you just walk up. Is it Amazon? Does Apple have one too or is it just Amazon? Apple now has one where one. It's a grocery store, convenience store, where you just walk out. Is it Amazon? Does Apple have one, too, or is it just Amazon? Apple now has one.

I thought there's one of each. You just walk out. Amazon has them, and Apple has them both. It's amazing how that works. And so, yes, if this is a problem for you, you said it feels like play money. That's a red flag to me that goes, we've got to figure out how to get a hold of this before we start moving to these more frictionless payment options. I'll give you a suggestion. We've done this during Financial Peace University for 30 years. When you first start your new life of controlling your money, make it difficult.

Only add the convenience after you've reset your habit patterns. If you've lived on a budget for nine or ten or twenty months successfully and then you want to add apple pay back and i did this for instance when we when we first started this a long time ago they didn't have pay at the pump oh you had to go inside you had to go inside yeah and um and pay inside now they would turn it on because in those days they trusted you, you know. But, you know, and here's what's interesting. The amount of uproar over gas prices went down after pay at the pump. Gas prices can go to $5 a gallon. People don't think anything about it because they just stick the card in,

pump the gas up. Well, that looked like a lot of money. Oh, well, and drive off. But if you have to walk inside like you're walking to the gallows, right? It is frightening. You know, you have to walk all the way inside. And if you were to put down $100 to fill up your car, and they gave you no change because the pump maxed out at 100 and quit, you would be ready to string up a politician, wouldn't you?

I mean, the people would be out with pitchforks, and because that's a lot of friction. The brain is going, hello, hello, hello. This crap just got expensive. Hello, hello, hello. And none of those alarms are going off in our nervous system at all when we do frictionless purchases. So start out

and make it difficult i'll give you a even more pandemic more uh primitive version of that when you first start break your food budget into two categories restaurants and groceries so you don't accidentally spend your grocery money at the restaurant it will make you limit your restaurant purchases and you'll start realizing that 80 of what you spend at the restaurant it will make you limit your restaurant purchases and you'll start realizing that 80 of what you spend at a restaurant is entertainment only 20 is actual food and you'll realize that when you separate them when you put it all in one food budget then you can rationalize your butt off and just go out to eat all the time and go on my food budget i don't have enough for groceries must be biden's fault. You know, no, it's your fault.

But separating them gives you friction in that category and causes you to realize you're spending. So it's a very important discussion. We are in such a convenience culture. And one thing that could help us get back on track with our finances is making it more inconvenient on purpose. At least until you get a new habit pattern i use a debit card at the pump i don't walk inside but i don't need to worry about sharon said last night she goes over at the lake i was gonna go fill her car up and she goes well how much is gas over there and i'm like how much i don't know i love that sharon's concerned i don't know you have enough money it's okay she's saying hey go to this other station it's 10 cents cheaper she wants me and i'm like she goes well i go to costco at home and i'm going and how long do you sit in line she goes well

i know what time of day to go to where there's no line i'm like after my own heart this is this is why you're sharing freaking ramsey and i'm not so there's a legend it's your legendary that's how she keeps but i mean that's you know i do not i'm not concerned about gas prices anymore that's not arrogant i'm not out of touch with the public. I'm just not worried about it anymore. I live like no one else now. I buy gas wherever the flip I want. I don't think anything about it, right?

So I got the room, right? So there you go. And that's what you're after at the end. But in the beginning, every coupon, every detail, everything, until we got our brains reset permanently in the common sense groove. This is the Ramsey Show. In the lobby of Ramsey Solutions on the debt-free stage, Kyle and Tiffany are with us. Hey, guys, how are you? Hey, way better than we deserve.

I love it. Where do you guys live? Dayton, Ohio. All right, cool are you? Hey, way better than we deserve. I love it. Where do you guys live? Dayton, Ohio. All right, cool. How much debt have you paid off? We paid off $157,000. All right, how long did that take? Nine and a half years. All right, 157 and nine and a half. What was your income during that time? It was a range of $20,000 to $50,000 and we just barely made it to that $50,000 recently. Wow, what do you all do for a living? I am a pharmacy tech and an IT coordinator for a children's hospital in Dayton. I've nannied over the course of this journey, and I had an in-home bakery. Now I get to stay home with our boys.

All right. Very good. So nine and a half years, $157,000 with a $50,000 topped income. Is that your house? That is house and a car payment as well as a little bit of school you're a hundred percent debt free that's right i'm looking at weird people how old are you weird people we are 31 31 years old with a paid for house making 50 grand what's the house worth oh now it's worth uh almost 250 000 when we bought it it was 114 gotta love it

yeah gotta love it well done y Got to love it. Well done, y'all. That's pretty cool. I mean, you're the little train that could. You just kept at it and kept at it and kept at it. And I will say it went up in value not just because of the market recently, but we also cash flowed probably $40,000, $50,000 worth of improvements on the home as well as other things throughout this journey as well so we did all that as well as cash flowing a lot of different projects good for you guys so how long y'all been married 10 years we just celebrated this month all right so as soon as you got married you start yeah so how does i explain how that happens funny story i was actually forced to do fpu against my will i drug him and he didn't want to do it but we listened you were forced against your will then

you drug him against his will who was doing all this dragging it gets worse we listened to you the whole way to our honeymoon that's that's sad that's where it started we had a drive to the honeymoon and we said let's throw on some of these cds and we just blasted it the whole way that's after you both got drug in yeah so how did you get drug in who drug who did the dragon my sister did your sister drug you in. You weren't married yet. No. And then you said, okay, you're coming too.

If I got to do this, you got to do it. As soon as she said yes, she said, now I can start talking to this guy about finances a little bit more seriously. And so she started pushing it towards me. And all she did was ask me to track my eating out budget for one month. And that changed my mind real quick. Wow. That was a good way to kind of just get him on the hook. Yeah. out budget for one month and that changed my mind real quick wow that was uh that was inside that was a good way to kind of yeah just get him on the hook yeah yeah we came home after the honeymoon

and started killing it just after that boom we're getting not gonna knock out the car and get the house knocked out too yeah we knew it was gonna be a long journey with income like that but we knew it was gonna be worth it well you did you you set a goal and stuck with it that's pretty impressive i'm just impressed you stuck with changing the cds out to get through all the lessons it's very impressive that was a lot we had the whole big box in the back of the car the whole time wow so how do you stick with it for nine and a half years most people if they're 21 years old they're going i can't do anything 10 years are you kidding me i'll find another i'll be 31 i'll be ancient uh well'll be ancient.

Well, to be fair, when we first started it, we had the plan to pay the house off in six years. That was going to be it. We had it all planned out. We got to the point in our mid-20s where we really sat down and talked about it and said, you know, we want to do this. We want to knock this out and create a good future for our children. But we've got to have those children. So we decided to reallocate some money elsewhere and start to work on our family now we've got two beautiful little boys but even through all that we just barely slowed down a little bit and just killed as much as

possible so we added three years on but we got two perfect boys out of it and I think what carried us through that 10 years was teaching FPU there for about three years and also just like you said the little engine that could that's kind of what I said last night that's what got us through we had that goal and we did not stop and if he got weak i was strong and if i got weak he said no we have a goal and we stuck to it very cool we knew the future that was coming uh whether we did or whether we didn't so we wanted to uh see the one where we are debt-free well thanks for coordinating financial peace university classes that does have the benefit of you have to do it because if you don't you're a hypocrite then you know and you're most humans just can't do that they have to it makes you more accountable

if you're teaching it it's strange you get you get more hardcore teaching it yeah we had five students over that time to come to us this year and say we did it we paid off our student loan we're so happy to hear that for them we kind of built their own little community yeah well you that's what ends up happening there's because there's a shared pain a shared victory a shared goal and that makes permanent ties lifetime friends many times and you can't talk to a lot of people about this stuff because they get weird they'll shame you they go i have student loans you're trying to judge me and you guys have created this amazing community of people who want to get better with money and aren't scared to talk about it yeah that's pretty cool yeah because i

would have to say yes i am judging you anyway i've said that a few times that's why dave couldn't coordinate classes anymore it's too awkward yeah i'm just i'm judging you yes i am that's kind of what i do for a living yeah that is so way to go guys i'm so proud of you your sister that brought you to the fpu class has got to be bouncing off the walls that's got to be neat yeah she did she keep with it too yeah all right got the whole family going yeah i love it way to go you guys way to go very very proud of you how's it feel 31 years old it's amazing little boys not have any payments in the world yeah the freedom is unreal. It took us months to really let it all settle in, just every day looking at each other and just

smiling and knowing we're debt-free. We don't have to worry about our children struggling with this or seeing mom and dad going through the stresses of finances anymore. And it's just, it's so great to wake up every day and know that you don't have to put that on your children anymore. Amen. It's crazy. Our oldest this summer, he was there there he went to the bank with us he helped us sign the last check he helped how old is he he's six he'll remember he'll remember it then he set up a homemade ice cream and lemonade stand this summer he did it twice and he made 850 bucks i'm franchising that wow yep that's impressive they catch it incredible they catch on they really do and when you change your family tree you do more than just change the math everything's changed in the

spirit everything's changed in their character and that six-year-old will remember that yeah he'll tell his grandkids yeah i was there the day mama dad paid that off yeah i remember back we had these things called banks yeah that's what'll happen yeah that's that's what'll happen you changed it check i mean check is son yeah that's that's what'll happen you changed it i mean it's the whole thing's gonna be new that's the old man sitting there's a multi-millionaire that's pretty cool well done you guys hey we got baby steps millionaires the book for you that's where you're headed for sure total money makeover to give away to one of your class participants and another uh membership to financial peace university you can give that

away and get somebody in one of your classes you guys keep teaching keep leading way to go thank you so much we're so proud of you heroes well done very well done all right bring the kiddos in let's introduce them and hear their ages all right what's six-year-old's name? This is Ryan. Ryan, the $800 ice cream man. Way to go, Ryan. And? This is Bradley. Bradley is how old? He's just about to be two.

All right, way to go, Bradley. Well done. What do you all tell people the key to getting out of debt is? Finding contentment. Knowing that you don't have to have what everyone else has, and you can find joy in the life that you've built and stick into that goal i'm kind of looking at a picture that looks like contentment i'm about to cry right this is beautiful yeah this is well done you got way more than they have because you got financial peace my man way to go very very cool beautiful beautiful kyle and tiffany ryan

and bradley dayton ohio 15,000 paid off car and house. They're officially weird people. Nine and a half years it took them making 20 to 50,000. They're 31 years old, 100% debt-free, house and everything. Hear me, people. This can be done. These guys are dropping a mic on you right now. You got to love it.

Count it down, guys. Let's hear a debt-free scream. Ready? Three, two, one. We're debt-free! Yeah! Woo! Yeah!

That is how it's done. You know what's weird? I didn't hear one complaint, gripe, excuse. I mean, they could have blamed everyone and everything as to why they're not where they need to be financially. And they just decided, nah, we're going to do this anyways. You don't hear that from people who are victors. You hear that from people that are

victims. Yeah, when you're a victor, you don't need to, you know, excuses are of the past. You've got to put those in the rearview mirror. We're doing it anyway. I know, but we're doing it anyway. I know, but we're doing it anyway. I know, but we're doing it anyway. I know, but we're going to do it anyway. This is how they think.

That's unstoppable at that point. Beautiful. Absolutely beautiful family. I love it. Yes, this is why I come down here every day. This is The Ramsey Show. show. Hey, how are you guys? Great, man. What's up? So I have a question. First of all, I'm about 25 years old. I'm 25. I have no debt and I have about $13,000 in a brokerage fund in a total stock market 500 index. I also have $15,400 in savings and I just opened a Roth IRA with about 1200 in it. And because I don't own a house and I have no debt, I feel like I can invest more than just maxing out my Roth IRA.

So my first question is, do you think that I should take the tax up front and take my money out of my brokerage to put it in the Roth? Or if I should keep it in, say, save for a house? And also what I can do with extra income, how I can invest that. What's your income? Right now, it's a little sporadic. I'm a deckhand on a boat. It could be anywhere from two to two grand to $3,500 a month. What do you make in a year? I'm on six.

With this, maybe $, maybe 30 or so. Okay. So you're making 30,000 a year. Are you living on the boat? No, no. I live in my own housing. Okay. All right. So what was the purpose of the brokerage account? What was your goal with that? So that was actually something that my father stood up for me when I was 18. And of course, I didn't really understand it. And so for a little while, I was just funding it until I kind of realized, hey, I need to understand what's going on without just blindly funding an account. That's smart. That's good to be understanding what you're putting money into and why. And so that's the heart of my question is figuring out what are your next goals. You have no debt. You have some money in savings. That's good. We're going to call that your emergency fund. And so your next step would be to invest 15% of your income into those tax advantage retirement accounts. Okay. okay so i'm not seeing a need to fire sale liquidate the brokerage immediately you could

use your future income to fully fund that roth uh even then do you have any other ways to increase your income long term um i can't think of anything off the top of my head right now i think you're a pretty frugal dude you live pretty low because you're living you're living well under a thirty thousand dollar income and still saving money it's impressive so i mean normally i talk to somebody like you they call me up with a credit card debt a car payment and everything else and you've managed to stay away from all that congratulations well done so fifteen percent of,000 would be $8,000. Okay?

Okay. It would be $9,000. But you could fully fund your $8,000 Roth, right? So fully fund your Roth out of your income. You can sit down with a SmartVestor Pro if you want to click SmartVestor at RamseySolutions.com. That will tell you who we recommend in your area. They can set it up where monthly you put into a Roth and you fully fund it once, you can fully fund it over time. I don't think you have to cash out the brokerage to fund it. I think you can fund it out of your income this coming year at 25.

If you'll do this from 25 to 65, you'll have plenty of money. You'll be a multimillionaire. If you save 15% of your income from 25 to 65, you'll be a multimillionaire. If you don't do anything else but that and uh even at making 30 grand so if you fully fund a roth you'll be a multi-millionaire um at uh 65 so we talked to a 70 year old who never made more than 55 and he's got six million bucks yeah so it can be done that's exactly right and you, you know, by the way, folks, Washington Post is reporting Fidelity, the mutual fund family, is saying that 401k millionaire club grew thanks to a stock market rally. George, read over this. This is good. This is pretty wild. So new data from Fidelity

found the number of employees with 401k balances over $1 million spiked 26% in the second quarter. So now there's 378,000 of those accounts compared to under 300,000 by the end of 2022. And the average balance in these 401ks was $1.5 million. And here's the key. They stuck to it. These are people who contributed steadily to their plans, even when the stock market took a heart-clutching dive. It says they've seen that payoff in their account balances. And this is something that, you know, we've been preaching to you and preaching it for 30 years now, but just stay on the roller coaster and you won't get hurt. Well, and here's the thing, you know, when the news reports that the stock market is up, never. Did you guys know the stock market's up since the first of the year 15 if you put in ten thousand

dollars or five thousand dollars or a thousand dollars 500 million whatever at the first of the year you would have made 15 on your money in an s&p 500 which is a stock market index right measuring the growth of the stock market and made 15 on your money but you know the news is inflation's 9.6 percent there's supply chain problems and hillary the hurricane not the woman hit california i mean this is it that's a good caveat yeah we need to be hurricane no emails were deleted in this message but yeah so the um wow i mean this is encouraging percent in one year you know from the first january 1 to today have you heard a single news report telling you this well i've got to give it to the washington post fidelity reporting millionaire club is up right the number of workers with a million dollars or more in their 401ks hit an all-time high wow and the eors are

still out there dave you know what the new line is now well a million dollars isn't enough anymore dave it's more than you got whiner that one's my favorite won't get you far as it used to won't it'll get you further than you are but these people aren't retired while you're whining and they've got 1.5 million they're still journey. Yeah, and here's what the interesting thing is. You run all these formulas and theories and stuff. I was meeting with the EveryDollar team the other day, and they're working out a formula for a retirement calculator. We're going to build into that thing.

And I was just, just don't do it like the financial industry. Because the financial industry runs a bunch of hypothetical crap that never actually occurs what actually really occurs see if all if i give you some examples i can say for example okay if you invest a hundred dollars a month from age 25 to age 65 in a decent growth stock mutual fund that averaged 12 you'd have 1 million 172 000 that's an example well me and 172 000 is not enough and you didn't inflation adjust that. And, you know, is that CGR? What kind of freaking nerd cares?

You got a million dollars more than your dad who had nothing. Shut your butt up and save money. Hello. This is the point. So quit trying to – our purpose here is to get you to actually do this stuff not run theoretical think tanks the doing it is the pit difference you know most of the people we interviewed that made me had a million dollars they they can't tell you what a cgr is they didn't switch sit and ring their little nerd analytical hands over whether,

what kind of inflation rate do we use? Because in the last 10 years prior to Biden, it was 2.6%. Do we use a post-Biden inflation rate or a pre-Biden inflation rate? Or do we go back 72 years since the CPI started and it's 4.2%? What do we do with our... Good God! You sound just like... Would you just shut up and put some money in your account?

You haven't even mentioned expense ratios yet, Dave. I left those out, too, and 12B1 fees. Like, I don't know they're there because I don't care if they're there. The people that invest are the ones that have money. The ones that don't invest because they get paralysis of the freaking analysis don't do anything. They have no money. So that's the beauty of this young man, Brent.

Oh, yeah. See, he didn't need a he's working on a boat he's working on a boat in maine hello making 30 000 he's going to be a multi-millionaire because george told him how to do it and he's going to actually go do it and he's not trying to impress his friends with a giant car payment well and he didn and he didn't need some kind of hypothetical, you know, 19 variable adjusted rationalization to learn to be an investor. He thought, you know, my dad got me started with this. It's probably a good idea that I do some more of it.

Well, way to go, Brent. You got something called common sense. They got it in Maine, they got it in Tennessee, and they got it in a few of the other states out there. You can look around, you'll find them. Get you some. Oh my gosh. But the study found that the average investor in this millionaire study, they were just average. They weren't prodigies. They weren't doing anything fancy. And I'll guarantee you, they don't even know what a 12B1 fee is. And this article ends with this,

the majority of savers stayed the course and did not make significant changes to their retirement savings. Oh, you mean they didn't time the market? You mean they didn't worry about the dollar being sniper shot by a new, a whole new currency coming out of China and Brazil? We're all going to hell. I'm taking my money out right now. No, they just kept investing. Just merrily along.

Stop touching it. Merrily, merrily, merrily along stop touching it merrily merrily along this is the ramsay show dave here you can find all of our shows with the ramsay network app on your smartphone it's the only place to listen to the entire back catalog of episodes. Download the Ramsey Network app in your favorite app store today.