The Ramsey Show - App - Massively Successful People Are Also Colossal Failures (Hour 2)

Episode Date: July 26, 2023

Dave Ramsey & Ken Coleman answer your questions and discuss:  "Should I sell my rental property?" "Should we sell stocks to use as a down payment?" "My in-laws took out a reverse mortgage," The stock market news no one is talking about, "Should I buy my daughter's house and move in?" "What's the best place to save our money?" "Should I move out of my family's house?" Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Here's an EveryDollar deal just for our listeners: get a 14-day free trial PLUS $15 off your first year of premium. Click the link below and start budgeting today! www.everydollar.com/TRS Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving in storage studios, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Ken Coleman of The Ken Coleman Show and the number one best-selling book, Paycheck to Purpose, the Ramsey personality on career and jobs expert is my co-host today. You got career and jobs questions, he's here for you, and we'll talk to you, and we'll talk to you about your life, whatever you want to talk about.

Phone number, 888-825-5225. Adam is in Salt Lake City. Hey, Adam, what's up? whatever you want to talk about. Phone number, 888-825-5225. Adam is in Salt Lake City. Hey, Adam, what's up? Hi, Dave. Hi, Ken. Thank you so much for having me on the show. Sure.

What's up? I have a question. I'm trying to get a few thoughts organized. So I have a house that is rented in a different state with a mortgage of $216,000 currently. And then I have my primary residence in Salt Lake City, which I bought the last year. And I'm trying to decide whether I should keep both or sell the rented property. And then the other part of the question I'm trying to decide is I don't want to stay in the primary residence for longer than say two or three years because I would like to ultimately buy a land and build a house. So I'm just trying to figure out what would be the best option and then start thinking about how to get there in the next few years.

That's fun. What do you make? $103,000. Good for you. Gross. And how old are you? I'm 32. Good for you.

Well done. Okay. The way we answer questions around here, Adam, is based on what I know, what would I do if I was trying to build wealth the fastest right way, what would I do if I woke up in your shoes? And that's how I think about these things when someone calls here on this show, okay? And I know a lot about real estate. I've been owning real estate and managing real estate and dealing with landlord and tenant issues most of my adult life. And I love real estate.

I hate long-distance landlording. It's a recipe for failure. And I love being debt-free. All of those things lead me to sell the rental house and pay off your personal residence and then use the fact that you make a lot of money and you have no payments at that point to pile up cash in a good investment to pay cash for your upgrade on this build that you're going to do and then pay cash for your other rental properties if you want to buy some more investment properties later but um that that advice is not popular on tiktok but i'm not running a tiktok poll i'm telling you based on a

40-year career of helping people become millionaires what i am pretty sure is that what i am very sure is the best route for you to do the same, to become a millionaire. And so I'm not trying to run a popularity contest here. I'm just right. There's a difference. And so that's what we would tell you to do. Well, I think what we want to point out here is that what you just said isn't going to happen overnight. And that's why these schemes and the TikTok videos are so popular, because it promises something that just quite frankly isn't true and has tremendous risk to it. The get-rich-quick idea versus what you just told our friend here, Adam. Adam is going to be very wealthy, and he is also going to be secure and sleep well at night.

Absolutely. And he's obviously a sharp young guy. Very sharp. Very cool. And he's not at the end of his earning potential either you got the feeling at 32 he's already making a hundred thousand plus he's gonna be kicking it yeah so you got a good you got a bright future dude just be you know what i'm telling you to do is the a way that has very little to no risk and uh you're in control of your life and you don't take uh penalty steps

backwards and get the opportunity to start over, which by the way, that's something worth talking about for a minute. And it works in your career and it works with your money. Um, the thing that there, number one, the path to the gleaming mountain of success is not a straight line. Okay? It's an ebb and flow. There's a little tide goes in, tide goes out in the process. And the gleaming mountain of success is actually a pile of your failures that you're standing on, the things you've learned the hard way. Everyone I know that is a household name, brand name, in any part of the world,

whether it's a pastor that everybody in America knows who that pastor is or got a huge ministry or whether it's an author that's done multiple number one bestsellers or whether it's a business person or a sports person or whatever it is. Every time I run music people, the people that are inordinately successful are colossal failures. So the gleaming mountain of success is a pile of mistakes. Now, what they don't do, what they do, and John Maxwell, our friend, talks about this.

He wrote a book years ago called Failing Forward. They don't make fatal mistakes. They don't make mistakes that set you back so far. They're tiny mistakes for course correction. Yeah. And the thing that keeps people from becoming wealthy is, A, they don't apply themselves to a simple set of principles. And, B, by not applying themselves to that simple set of principles, they fall for these get-rich-quick crap. And they have these tremendous setbacks.

I went and bought 10 houses and put them on Airbnb and leveraged all of them to their eyeballs, only to find out that Airbnb is now illegal in two of those cities, and only to find out that Airbnb in the rest of the cities is completely flooded, and I can't keep them full. And so I'm not making any money, and the guy on TikTok lied to me. Yeah. Because he didn't know what the flip he's talking about. That's right. He didn't mean to lie to me or maybe he did mean to lie to me. I don't know.

Either way, you lied to me. I got bad information. And now you're getting ready to get foreclosed on and you're going to lose a portfolio of 10 properties and you're going to go bankrupt all because you were stupid. Yeah. And I've been stupid like that. I did that exact thing. I had to start completely over.

I'm so stupid. I've been a millionaire that. I did that exact thing. I had to start completely over. I'm so stupid. I've been a millionaire twice. Right. You know, and so I didn't just do it once. And it's a lot easier if you're in an Adam situation. Just do it once. That's right. Here's what people overlook, Dave, about what you're saying.

Greatness is a process. You don't get to greatness, any of the fields you mentioned, without a process. You look at athletes. You look at coaches you look at artists craftsmen true craftsmen there is a process and what they focus on is the little things the fundamentals the process of trying the process of failing to your point it's not fatal they're going to learn from it and what you learn when you have the discipline to do the little things the fundamentals to embrace the process here's what happens you begin to hate losing so very much that you will go the extra mile to actually win and with this tiktok generation and instagram and these get rich quick schemes it removes the process

the reason the baby steps have worked for people is because it's a process it doesn't happen overnight but it does happen yeah that's what successful people get they embrace the process i never thought about it but i was hanging out with this comedian guy the other day that's got a big netflix special yeah and um did you know you don't just go do a netflix special yeah no that you take all jokes and you go into small clubs and test them? Yeah, and get brutalized by people. And then they get brutalized. Exactly.

He said, it's harsh. But he said, before I get on there, everything I do on there, I already know works. That's exactly right. Because I've had course corrections. Interesting. This is The Ramsey Show. help i can tell you how uh subscribe to this show if and follow or whatever it is i mean whether it's youtube or it's a podcast or it's you know i don't spotify video whatever it is twitter video wherever it is subscribe to it follow us that helps a lot leave a five-star review if they've

got that opportunity that helps a lot and um share it some of these uh services have a share button other times you just tell people or you clip the link and you send a link uh to somebody i was listening to uh craig groeschel's podcast my buddy's podcast this week and uh it was really good i sent him a note personally it was just a outrageous uh what do you call it um uh um well it was talking about being outrageous with your with your goals yeah it was just it was powerful and so i clipped the link to it sent it to all the all my leaders here and i'm like hey this is inspiring watch this so you could do that for us you can say this is this this show helped me this did send it to somebody tell people about it we we know you're doing that because our numbers are way up, and we appreciate you.

Thank you very much. Brittany is in California. Hi, Brittany. Welcome to the Ramsey Show. Hi, Dave. Hi, Ken. Thanks for taking my call. Sure.

Hi. What's up? Okay, so my husband and I have some single stocks. We are just finishing up SPU and we are in baby steps, almost done with baby step two, going into step three. And we live in Southern California and we are trying to figure out if we should move the single stocks to mutual funds or use it for a future down payment.

The only catch is we don't currently want to be homeowners. My husband just took the Get Clear assessment, thank you, Ken, and he's thinking about switching jobs. Okay. All right. So how long do you think it's going to be before you buy a house, if you were to guess? I'd say five to eight years. Okay.

Alright. I would cash out the stocks and put them in mutual funds. And let them sit there as a house fund. Okay. Get with a smart investor pro. Pick something conservative.

It's not super volatile. And let it just sit there and grow for five to eight years. And you'll be adding to that as you go along as your down payment fund. That's what this is. Okay. And then just, you know, make sure baby step three is finished, of course, before you do that. But as soon as baby step three is finished, whatever's left, put that in mutual funds towards your baby step 3B. But your 3B is going to be hanging out a

while and you're going to go on to four and start putting 15 of your income into retirement yeah you're right on track how much is in this stock um a little over 370 000 good lord yes did you say you were still in baby step two almost to go into three yeah Yeah, we'll be done next month. Yeah, I would have cashed some of that out already and paid off all that debt. But that's okay. You're there now. Make sure your emergency fund comes out of that before you move it and then move it all over into mutual funds.

Where did you get this stock? It was my husband. It was basically given to him when he was younger on his name and kind of like an early inheritance i guess yeah you're probably going to have some um some taxes on this too so you need to get some tax advice and figure out exactly what that's going to be but i'm going to move it into mutual funds to stabilize it and let it grow and that's your house purchase fund when you do get ready to buy a home not sure why you're waiting five years to buy a house, but get his career stabilized, I wouldn't wait eight years.

Don't tell him that you need to wait five years. But $300,000 can go a long way, even in Anaheim, California. So, yeah, but decide how you want to do that. Hey, thanks for the call. Open phones at 888-825-5225. Scott's in Minneapolis. Hey, Scott, how are you? Good, and yourself?

Better than I deserve. How can I help? So let's see, a little bit of a back story. I'm trying to help my wife help her parents. We're in our 50s. They're in their late 80s. They have zero debt. They've owned a home for probably 40 years.

Her father-in-law has dementia. Her dad has dementia. So we're helping the mom financially. We want to make sure that we know where all the money's coming from because money's not talked about openly. Um, and my wife is an only child. And so my financial advisor said, Hey, ask for a copy of their taxes and you can make sure that there's nothing up there hiding somewhere. So we did, everything looked fine for a copy of their taxes, and you can make sure that there's nothing up there hiding somewhere. So we did. Everything looked fine. We know where their money is coming in from.

But we also noticed that they have a reverse mortgage. Oh, God. Which surprised us because they have all the money they need. They've never had any money problems. And they don't live extravagantly at all. How old is the reverse mortgage? Do you have any idea? Yeah.

So I thought it was taken out last January. And my wife concluded, well, that kind of makes sense because maybe her mom was looking for potentially long-term care options for the dad. But she actually did a little more snooping. She visits them every other weekend. Last weekend and found the original documentation and found out that it was actually taken out 20 years ago. And they were paying around $5,000 a year in interest based on last year's taxes, which now I can see is going to $10,000 a year because of the interest rates.

From what I can tell, there were so many numbers, it was a little difficult for me to understand. But from what I can tell, they're not using any of the money. I think they're just paying, basically, I think they're using it just like a home equity loan. But I don't know for sure. And because finances aren't openly discussed, we're trying to gather as much information before we approach the subject with them. Like, what are their options, if there even are any options? Well, I don't know what you've got, so I don't know what your options are,

because you don't know what you've got here, so, other than a mess. Well, I can tell you for sure. But, I mean, they max out at 65% loan-to-value. So the most they owe on the house is 65% of its then value 20 years ago. Which the numbers make sense. There was a number in there of like $197,000. The home is on a lake. It's probably worth roughly half a million.

So that makes sense. And then they quit getting checks. Now they just have a debt accruing interest sitting there. If they ever even got a single check, I'm not even sure that happened. Well, the checks had to come. I mean, that's the only way the debt gets in place. A reverse mortgage is you receive payments and the balance goes up. It's the reverse of a regular mortgage where you pay payments

and the balance goes down. Yes. So they've been receiving payments for 20 years okay up until it got to 197 and then cut off and then if it has cut off and i guess it has um and then it just starts accruing interest and they get no more payments so somewhere in the last 20 years there's 200 grand income yeah okay and so the um we would see that as income in their tax statement if they were still no it's not taxable oh got it it's it's borrowed when you borrow money you don't pay taxes on borrowed money okay if you go take out a loan from the bank for ten thousand dollars they don't charge you you know ten thousand dollars on your income tax don't charge you. $10,000 doesn't show up on your income tax.

Right. So this doesn't show up. The only thing that shows up on their income tax is if they're deducting the interest that they're now paying, and that would be if they're doing long-form income tax and not doing standard deduction. Which they are. I shouldn't say that. I saw the statement. If you see interest on there, if you see interest paid on that income tax statement,

then this thing is ended and they're having to pay the interest to maintain it. Okay. And the only way you can get out of it is to sell the home, pay it back. Yeah, you've got to refinance and put it on a regular mortgage, which might not be a bad idea because probably you're going to find the interest rates high. Oh, I didn't know. So you can treat this like a normal loan? It's a debt.

They owe $200,000 on this. They can pay it off. Okay, that I didn't know. Just go get a $200,000 loan at, you know, 15-year at 6%, because they're probably being charged 10 or 12. Now, these reverse mortgages are the worst thing on the planet. They're just horrible, horrible product. And here's why.

Now you've got an 82-year-old that's up a creek because some actor from another generation was on the news channel telling you you needed to borrow on your house 20 years ago when they were 62. This is the Ramsey Show. Ken Coleman, Ramsey Personality, is my co-host today. Open phones at 888-825-5225. You guys have known how bad the economy is, and you know how bad inflation is, and you know how horrible the stock market is, right? Or maybe you didn't.

I just pulled it up for the fun of it a minute ago. The S&P 500, which is the most accurate measure of the New York Stock Exchange, if you put money in 12 months ago today, one year ago today, and then left it alone until today, you would have made a 16.2% rate of return in the last 12 months. Interesting. Now, here's what it did. It dove after the midterm elections.

The stock market did not like the results of the midterm elections, and it went way down. And then it just gradually, bum, bum, bum, bum, bum, bum, bum, bum, bum, come up a little bit at a time, every day every week just kind of chugging along and it passed the old high and passed where we were 12 months ago at this time and um now you're sitting on a 16 percent rate of return no one talks about that do they did you hear anybody say you could have made 16% on your money in the last 12 months? And that's with an S&P 500, which is not sexy at all. I mean, that's about boring as it gets. Yeah. Very interesting. And been on a very nice run,

by the way, this summer. Yeah. Very nice run. But nothing spectacular. It's just bump, bump, bump, bump, bump. It's just bumping along. But going up, up and to the right, up and to the right. Melanie is in Washington, D.C. Hi, Melanie. How are you? I'm doing well. Thank you for taking my call. Sure.

What's up? My question is, is it a wise decision for me to sell my home and purchase my daughter's home and move in and live with her. She's currently going through a divorce, and she doesn't have the finances to buy out her spouse's portion of the home in order to be able to afford it. I'm sorry she's going through that. Thank you. Well, I think that would be a mistake

unless there's something more that you're not telling me. This sounds to me like a mom whose heart is hurting for her daughter and doesn't want her daughter to have all the pain she's having and you're trying to make some of it go away. That's a nice motivation, but this is not a good plan. Okay.

So what we find is... My thought process was... Go ahead. Sorry? You go ahead. So my thought process was I'm looking to retire in a year or two anyway, and I was planning on, she lives in a different state, so I was planning on moving out to live closer to her

just because I've lived here with my other kids and grandkids for a long time and just wanted to have that chance to be closer to them for a little while too. So my intention was of moving there in another year or two anyway, but with the housing market, I'm not finding anything really affordable for me as a single person retired so i thought well why not buy her home because that would help her out as well but it doesn't sound like you think that's a very good idea no because it's a uh a temporary situation and you're putting a permanent solution in she's going to have to establish a sustainable life after the divorce for her own dignity and for herself

and um uh if she can't afford this house she should not keep the house and that's heartbreaking that's one more heartbreak that goes with the heartbreak of a divorce and well that means the kids have to move you know it's heartbreaking but it a, I tell you what's more heartbreaking is a mom, her, that is stressed out about money. Cause she keep kept things based on the old life's income. That's not there anymore because of the divorce. And so I want her to,

to have a full reset and establish some ground, something solid to work from. And if you want to move to the area and be emotional support to her, that's fine. But you're leaving Washington, D.C., which is an expensive market. Where does she live? She lives in a suburb of Salt Lake City. Which is a cheaper market than you're in. A little bit.

No, it is. No no it is it is i don't know where you researched but i mean you're looking in a neighborhood that's different than the neighborhood you're living in now so but apples to apples neighborhood to neighborhood housing price to housing price dc's more than cost of real estate's more than than Salt Lake for sure. And I'm frequently in both markets and know the real estate markets. I'm not just making this up. But, yeah, I appreciate your sweetheart and you want to be there for her. I would rather you be there for her emotionally, cheering her on.

But I want her to scramble the eggs of her life and get a new omelet, get a new place to start from, a reset that's based on her new income, not her old income with her husband, ex-husband now, a new situation for her children, and let her come from solid ground to rebuild her life. Because what we run into, Melanie, is this, and all the years I've been doing this, what normally happens, this is kind of a, I don't know, a stereotype almost. Divorce happens. Dad moves out of the house. Mom's income is lower than dad's.

And she tries to keep the house because her mother's heart is to protect the children's environment. They don't have to change schools. They don't have to change bedrooms. They don't have to pack up their stuff and go through more trauma because they're already going through the trauma of their parents splitting up. And mama's trying to keep them from feeling any more pain. So she tries to keep a house with less income than he makes. And he used to be there helping to pay that payment.

And she generally saddles herself with a house she can't afford. And instead of creating the trauma for the children now while it's going on and let them just reset in a new place, a little apartment or whatever, now they have to live with a mom who's freaked out day in and day out over money. And then she ends up losing the house or having to give it away after four years of deep anxiety and stress. And I run into that like thousands of times in the last 30 years. So my advice is while the pain is there, just go ahead and get all the pain over with and do the reset. Sell the stupid house. She can't afford the house. Sell it and let her move into something to reset and rebuild her life.

She's got to rebuild her career too that's the point that i think you're making is that the emotional support here for melanie is going to be great for her daughter and that's enough this this daughter is going to have to reset her life in multiple ways and she needs to get out on her own it's going to help her heal by the way not in any way minimizing the pain of this but getting out on your own beginning to show that you're the mama bear, and I'd never bet against a mama bear, that she can do it, and it's going to help the healing process, and I think restore her dignity, Dave, because the dignity is robbed in a divorce. One way or the other, it just is. And this is a case where, again, she's going to end up being better off by selling the house and rebuilding. Yeah. Don't try to patch this

together. No. It's just not going't try to patch this together no it's just not going to be good for her and it's not good for you either because you're saddled in there with one kid with all of your equity tied up in that house and then you you can't make decisions that are smart for either one of you yeah it's just it creates a bad it's it's a bad medicine so please don't do it it's a sweet intent you're trying to help and i appreciate that but don't this is this is um it's it's it's a type of enabling that you're doing here and i wouldn't do it open phones at 888-825-5225 Divorce is unbelievably expensive, financially, emotionally, spiritually, everything involved. But in a situation like that, that's where you really, really feel it.

And it turns a marriage into a business transaction, the splitting of the assets and the liabilities, right? The allocating of the mess in the settlement, but then also this, the grieving of what was supposed to be. This picture I had, Dr. John Deloney talks about this picture I had of what old age was going to look like. Now, it's not going to look like that. What the next 10 years was going to look like.

Now, it's not going to look like that. What walking her down the aisle was going to look like now it's not going to look like that what the next 10 years was going to look like now it's not going to look like that what walking her down the aisle was going to look like my daughter it's not going to look like that and uh man that's a it's a process and in the middle of that don't add financial stress to the equation because you kept a car or a house or something else stupid that you couldn't afford. This is The Ramsey Show. Thank you for joining us, America. We're glad you are here. Open phones at 888-825-5225. Ken Coleman, Ramsey personality, is my co-host today.

Angelica. I'm probably saying that wrong angelica angelica thank you i knew i was doing it wrong angelica's in norfolk virginia hi angelica how are you angelica what in the world what a hillbilly well you got hooked off of phonics for just a second just for a second there that's fine that's why's why I have Ken Coleman here. That's right. 757, shout out. What's up? So I have a couple of questions. One, my husband is active duty military, and he recently got orders to Spain.

So we will be leaving the States about this time next year. So we have quite a bit of money in savings, and we're trying to figure out the best way to do that, knowing that we're not going to be here. Do we do an investment property? Do we put it in mutual funds? We're trying to figure out the best way to make our money work for us rather than it just sitting in a savings account.

Absolutely. I just put it in mutual funds. Okay. Sit down with a SmartVestor Pro. Go to RamseySolutions.com. Click SmartVestor. Get you a financial advisor that's got the heart of a teacher. Tell them what your goals are, and they can help you select some funds

that, you know, they can give you good rates of return. But even if you just invested it in a no brain investment which would be an s&p 500 as i was saying a little bit earlier you know it's up 16 percent year over year so um you know that that's that kind you want to park it there not in four percent or three percent or whatever right yeah okay so you wouldn't recommend doing like even like the smallest like rental no no no no long distance landlording from spain is a good way to get in a mess that's kind of what we thought too um it's just you know like i said and then we're so kind of give you a little bit of backstory um just a very brief one um we sold our house in pensacola when we moved here, um, because renting didn't make

sense there either. Um, so we have all of our debts paid off and everything like that. So like I said, we have about 120 sitting there, just kind of hanging out. Um, so how much would you suggest? Cause like I said, we have our retirement put away. We have everything pretty much taken care of good um and that segues me into my second question we're expecting to well we're scheduled to have our first child on friday yay yeah so um we want to start planning for his future we don't

know if like obviously it's very early um never too early but i don't know how much we should start what we teach folks to do is to put 15 of your income away for retirement start doing something we have yeah start doing something for kids college okay and make sure you have an emergency fund of three to six months of expenses do you have the emergency fund not counting this 120 yes yes we do all right when you sit down with a SmartVestor Pro, if you want to take $10,000 and throw it into a $529,000 for the new baby, you have to get a Social Security number before you can do that, but that doesn't take that long. Okay. But then, you know, just open a $529,000 for the baby, throw $10,000 in.

You're almost done for college if you do that. Yeah. Because $10,000 by the time they're 18 will grow to almost enough. But you'll add some in the years as you go along. And then you've got 110 in there now, and then you're going to Spain. How much longer is he going to be in the military? We're hoping for 20, or for 10 more years. 10 more years, okay.

He's been in for 10, yeah. Well, if you're investing at an average of 10%, your lump sum will double every seven. So seven years from now, 110 would be 220. Okay. Okay. And seven years later, 220 would be 440. Right.

So that's the kind of curve you're on with this if you don't add anything to it for purchasing the next property. But thank you for your service, both of you, and congratulations on the new baby. That's fun. Yeah, and it's fun to see a story like this from our military men and women who have been so wise. I mean, they are in terrific financial shape, been very disciplined, and the fruits of it now, here they are, starting a family in really good shape. Yeah, and really, and the adventure continues.

Here we go to Spain. Yeah, right. Not a bad place to good shape. Yeah, and really. And, you know, the adventure continues. Here we go to Spain. Yeah, right. Not a bad place to be stationed. Yeah. Patrick's with us in Phoenix. Hi, Patrick. Welcome to the Ramsey Show. Hey, Dave.

Thanks for taking my call. Sure. What's up? So I am 20 years old, and about two years ago, I moved to Phoenix, Arizona to start my own business, selling furniture. I was straight out of high school and just like super young. And I moved in with my aunt and uncle. So it's been two years later now. I saved about $40,000 in cash. I have like another 30 grand in crypto.

And I'm just wondering if it's a good time to move out. Okay. How long have you been listening to us? Probably three or four years now. I actually met you in person all the time. Okay. Well, are you going to take my advice this time because you didn't on the crypto?

Yeah, sure. Are you? Yeah. Okay. All right. Cash out the crypto move out get your life started okay you got 70 grand you're 20 years old you're kicking butt but get get the money out of there while you still got it because it's going to evaporate if you don't and um okay yeah and then we're sitting on 70 grand and you're making, obviously making some money. What kind of money are you making? Uh, I'll probably do about a hundred grand this year.

Wow. What does selling furniture look like? What is that business model? Uh, so I go around picking it up, clean it up, and then take really good pictures and sell it. Give me an idea of a margin on something you've done recently, what you bought it for versus what you sold it for. So recently I bought an outdoor sectional for $500.

I pay someone $200 to fix it up for me. And then a couple days ago I sold it for $2,650. $700 in cost, and he flipped it for $2,600. Somebody's outdoor sectional that just probably needed to be scrubbed, right? Yeah, right. Where are you doing this work? Because you're living with your aunt and uncle. You're not doing it in their garage, are you?

No, so I actually just got two warehouse spaces. I guess you did. Okay. okay dude you're a stud that is awesome i absolutely love that you're a player yeah you're a player well done well done yeah in another hour we read a question about what we thought about universal income uh you know a stipend for people that won't work and then you got a 20 year old with a high school education that's making 100 grand flipping used furniture and some of you are standing around with your finger in your ear unbelievable american dream is alive and well what a country yeah there it is there it is what a country comrade dave joins us again folks wow yeah that's great story what a great

guy i love you patrick yeah sell the stupid crypto move out on your own you get you a life you're doing great proud of you well done that is so great an outdoor sectional you know 26 yeah i mean 2600 bucks is cheap for i mean that's a good deal. And, oh, my gosh, that's great. I can just see him driving along and something sitting on the curb. Somebody's throwing it out at the state. Can I have that? Yeah. You know, and put the leg back on it.

This is an example, by the way, of what it means to live in a very wealthy country. People are throwing away, essentially, a nice sectional. He turns around and makes really good cash on it. He's taking what other people are thinking is trash or they're moving on to the next thing. I got to finance my outdoor section. We'll get something new. He's making real money. It's a really interesting commentary on where we are at in America today, but the opportunity to make something of yourself is still there. You know what else I think about when I hear somebody like Patrick show up? His mom and dad did a great job.

They did. They did. That's right. They taught him to work. Yeah. They taught him how to work a margin. You know, somebody did. I mean, you're not born with that.

No. You know? No. I've been to the hospital. They always say, you know, it's a boy. It's a girl. They don't say, it's an entrepreneur. Somebody taught him that, you know?

That, you know, wow. Here's something else, too. This is a special young man, but a lot of culture and society would look down on him because he didn't go to college. He's laughing all the way to the bank. Yeah, he's... Two warehouses. I have $250,000, and I got a master's degree in social work,

and I make $38,000 at the state. Right. And I'm in debt up to my eyeballs. Yeah, that's his contemporary. Oh, my gosh. This is The Ramsey Show. Dave here. You can find all of our shows with the Ramsey Network app on your smartphone. It's the only place to listen to the entire back catalog of episodes.

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