The Ramsey Show - App - My Great Uncle Wants To Leave His Estate to My Kids (Hour 3)

Episode Date: July 20, 2021

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Welcome Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Ramsey Show. Where debt is done, 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. Thank you for joining us, America.

Open phones this hour as we talk to you about your life and about your money. Open phones at 888-825-5225. That's 888-825-5225. Dossio starts us off this hour in Bloomington, Illinois. Hey, Dossio, what's up? Hello, Dave. Thanks for taking my call. Can you hear me?

Sure. How can I help? Hey, my wife and I are on baby steps four, five, and six. We're expecting our first baby in about ten weeks. Congratulations. Thank you very much. So my question is, we've piled up some money just in case of an emergency to make sure that mom and baby come back home safely. In addition to your emergency fund?

Correct, yes. Okay. Above what we have saved up for emergency fund just in case something highly unexpected happens. Okay. being conservative. So when they do come back home and hopefully things will be just fine, my question is should we utilize that money and throw it at Baby Step 4 and potentially fully fund my baby girl's college fund? That would be Baby Step 5.

Baby Step 5 is college. Okay, so just throw all of it in there? No, no, no. So Baby Step 4 is 15% of your income going into retirement. You should already be doing that. Correct, we're doing that okay so you don't need to do anything else with baby step four baby step five is saved for kids college now how much money do you have saved for this baby this extra emergency fund

about fifty thousand dollars fifty thousand dollars $50,000? Dadgum. Okay. Well, you're really safe, that's for sure. Yeah. Yeah. So, okay. Sit down with your SmartVestor Pro, and most 529s are limited to 10K. Some of them you can do more depending on which one you choose and how you choose to do it. But sit down with your SmartVestor Pro, and you can probably fully fund this kid's college out of this money. That's probably what I would do, and just kind of check that box and go,

okay, what are we projecting we need when the kid is 18, 18 years from now to go to school? And just based on that, let's back into how much we need to drop into that 529 and make sure it's the kind of 529 with a SmartVestor Pro that you choose the mutual funds, and you put it in the four types 529 with a SmartVestor Pro that you choose the mutual funds and you put it in the four types of mutual funds that we talk about, growth, growth and income, aggressive growth, and international. And then whatever you don't use out of this $50,000 for the kids' college funding,

you throw it at your mortgage because you're in baby steps four, five, and six, and that's how it works. Hey, thanks for the call. Mike's in Spokane, Washington hey mike what's up nothing much enjoying life what about you so just the same sir how can i help all right so thankfully because of financial peace i finally i learned the importance of wealth got my parents to finally make one. Well, my great uncle is also wanting to do that, and he's wanting to leave me and my kids everything he has. But I've seen kind of the lifestyle he has. He kind of has a debt lifestyle.

He's okay with having debt. And I don't have a home. Me and my wife only make around like $40,000 with me just working, her going to school. How do I sit down with him without sounding condescending or like demanding, letting him know like, hey, I'm to him about like trying to get it so that when he passes away, I don't get a bunch of debt or like, um, having to pay like, um, property taxes and stuff and all this, um, without sounding condescending. Cause I'm glad he's leaving it all to us. Um, and I still have to sit down and have that deep conversation. You don't really need to have that conversation.

You just do an audit when he passes away, and you figure out how much of his stuff you have to sell to clean up the mess he left. And then when you're done, you'll have money. Okay. So let's say there's some property taxes due. Obviously, this stuff is worth more than he owes on it, right? So let's pretend for just a second, for cleanliness sake, just to show you an example. Let's say he passed away, and you took everything he owned, and you sold it all.

And you paid all the debts that were against his estate out of that, which you would have to do. You're not liable for the debts, but the estate is liable for the debts. So anything that he owns has to stand good for anything he owes before you get an inheritance. Do you follow me? Okay. So, yes, does that overrule, because what it sounds like we're talking with him, he has a property, and from the way he's making it sound,

I haven't had this conversation yet. I just found out about this yesterday. But does that overrule if he puts in his will that it's not to be sold until my kids are like 18, which is something he's wanting, he wants them to have it? No, I'm not going to manage debt for him after he dies. Okay. So you could just tell him I don't want it.

Okay. If you're going to make me manage something and handle debt for 20 years after you're gone, it's okay, I'll pass. Mm-hmm. Micromanager. If you want to just leave us this stuff, we'll make sure the kids are taken care of okay i mean you're really a micromanager when you're doing it from the grave yeah it's a whole new level of uh yeah managing at that point so yeah i mean i so i'm not going to take on a bunch of debt i'm not going to

manage a bunch of debt for the kids i'm not going to manage it for you after you're gone so i'm honored by you wanting to leave us the stuff and so we would happy to do this and happy to uh help um you know happy to but but you know what we'll require is that the assets are not frozen in some way, and we're not required to manage debt. Otherwise, we won't take it. We'll just turn it down. Got it. Okay.

Perfect. So if he wants to leave it in trust and require that you manage debt until your children aren't minors anymore, I don't want to do that. I agree with you on that. And so you just sit down and just again you just be very honoring and just say listen it's not consistent with who we are and i appreciate you you're a wonderful person and thank you for your generosity but you're asking us to take on something that we don't believe in for a period of time

and we're not willing to do that and so if you want to leave them the stuff we'll take care of it uh we'll sell off enough of it that it becomes debt-free, and we'll make sure the kids are blessed with your inheritance. But if you're going to require I get in the property management business and pay your bills after you're gone, I'll pass. So you can say it however bluntly or kindly or gently you want to say it, but you need to deliver the message. Because you're right, it's all normalized to him.

He doesn't think anything about it, and he's going to think you're a weirdo, by the way, because you are a wonderful, wonderful weirdo, just like me. This is The important than ever. While some circumstances can't be controlled, there are items within your budget you can take charge of, such as your health care costs. For nearly 40 years, Christian Health Care Ministries, or CHM, has provided a budget-friendly means of sharing for medical bills when our members need it.

Learn more by visiting chministries.org slash budget. That's chministries.org. Well, if you've been paying attention to the real estate market, it's wacky out there. People making multiple offers, putting a house on the market, getting 17 offers in 24 hours and that kind of stuff. Man, it's crazy in some of these markets. It's intense. Obviously, there's a shortage of inventory, a lot of buyers looking, not a lot of sellers selling. And here we have a seller's market for sure. Obviously, there's a shortage of inventory, a lot of buyers looking, not a lot of sellers selling. And here we have a seller's market for sure.

This is not amateur hour. If you want to buy a house right now, you need a pro in your corner to lead you through this process. If you want to sell a house in this environment and get the right amount for it and don't get all twisted up with some kookified buyer that's gone nuts in this current market you need a pro to guide you through it now our endorsed local providers have years of experience on their side they're high octane high protein some of the best real estate agents in the nation. And our agents have got years of doing this. Now, they don't work for me. They're endorsed by me. Endorsed local providers are Ramsey Trusted.

We trust them. So go to RamseySolutions.com slash agent and find a Ramsey Trusted agent near you. RamseySolutions.com slash agent. Sadie is with us in Lawton, Oklahoma. Hi, Sadie. How are you? Good, Dave. How are you?

Better than I deserve. What's up? So I'm in Oklahoma, and recently the oil field crashed. And while it was crashed, my parents did what they thought they had to do to get by, got in debt. I'm sorry, recently the what crashed? Say that again. The oil field. Oh, yeah.

Okay. Okay. Yeah, yeah. So your parents were working in the oil field? Yes. And while it crashed, my dad went and got his CDL and is now driving. Him and my mom are driving campers all across the United States, but,

um, they're still in debt and they're just struggling and it's not good for their health. They're older. Um, they're diabetic. My thought, my dad had a heart attack today.

Um, he was at the hospital and basically my brother and I want to sit down and have a talk with them that, you know, stuff doesn't matter. We just want them here. They're gone all the time. This job isn't good for their health. How do we convince them to follow this plan when they, you know, that's not how they live their life? Well, you can't make adults do anything unless they're uh declared mentally incompetent by the

courts right so my husband and i are following the plan and basically we just want to they have to have an income though what are they going to do when they quit yeah so my dad is right now 80 disabled through the veterans center um he has terrible, terrible knees, needs a double knee replacement, could be 100% disabled, and then find something for my mom to do. I just want to be able to find a way for them to still be here, to be able to take care of their health. This job is not good for their health. Okay.

And so... So the point is, our plan is about handling money. And they have to have money in order to handle money. They have to create an income. That's why they're not afraid of hard work and doing something uncomfortable. So what you have is a career crisis in your mind that you want them to stop doing this and start doing

something else and so if you want them to not have an income they're not going to buy that right so what you need is a suggested career path like what would you want your mom and dad to do if he be you know if he's sitting around waiting on disability he's not signing up for this trip kiddo he's not going to do it he's not that kind of guy correct so you know what else can they do that allows them to come off the road and be there in lawton oklahoma working correct that's what you need you need a suggestion not a complaint i understand you're scared for them, and I understand that they do need, I don't disagree with you that they need to come off the road. It sounds like it's really hard on them. I think your conclusion is correct, but you're asking me how to convince them,

and your parents are old school. When in doubt, they go to work. Yeah. Right? They don't feel entitled. They don't feel like somebody else is supposed to take care of them. When in doubt, they find something to do and they work. And so if you want them off the road, you need a suggestion where something your dad and mom can do there that's not the oil field and that's not driving campers over the road, right?

And so I don't know what that is. But you might just sit down and say, hey, I love you and I'm concerned about you. What could you guys do if you came home? We'd even be willing to help you and come around you and so forth and make sure because we're scared for you. And, you know, what would be a great job, Dad, if you landed it back here? Right. Yeah, begin to talk it through with them because if you can help them create some kind of an income there and they're they're able to put their hand to the plow so to speak that's what's emotionally required for these folks to to to come off the road then once you've got

that then we can talk about putting them on a ramsey plan right we can talk about say hey we're gonna get you on a budget we're gonna get you on a budget we're gonna get you out of debt we're gonna teach you to live on less than you make and you know i can help you with that part but right now um i mean i know these guys they're old school right your dad has worked hard his whole life yes yeah he's a good man and uh and he he is not afraid of hard work he's not always managed the money that he made well but he's always worked hard and so that's how he's wired and you have to find something that's congruent with that mentality to suggest quit and come home and sit on your butt dad is not going to compute in his brain is Is that right? Yes, sir. I mean, I think I know this guy.

I think I know who he is. And, you know, so, I mean, he's done a lot of hard work in his life. So it's okay. And, you know, he's going to be like, oh, that would be great. How can I buy food? You know, well, you can live on your disability. I don't think so, honey. So that's the answer you're going to get.

So, yeah, if you find an alternative career idea or discuss it with them and brainstorm and come up with an alternative career idea get them home then we can get them into financial peace university inside you know good it's at ramsey plus and you know get get them on every dollar and we can have them manage the money we know what they've got to work with then that's very possible good. Thank you for joining us. Open phones at 888-825-5225. Our question of the day comes from a great American company, Blinds.com. They have a 100% satisfaction guarantee, meaning even if you mismeasure,

you pick the wrong color, they'll remake your window blinds for free. You ever seen a company company has a you were stupid guarantee if i'm stupid and i mess this up they replace it anyway that's not on them it's on me but they still replace it this is cool y'all you get free samples with these guys free shipping and the new promos they run all the time you can save even more money. Get your window blinds at blinds.com. Always use the promo code Ramsey to get the best possible deal. Today's question is from Alicia in Florida. I've got $35,000 in student loan debt through Sallie Mae. I only have a part-time job because my child requires a lot of medical attention. I've tried to refinance my student loans,

but I keep getting denied. I could ask my husband to co-sign for me. Should we go that route? If not, what should I do? Your husband and you should be managing your money together. For better, for worse, in sickness and in health. And by the way, that child that you're taking care of is his too. And so we put all of the household income in one pile, your part-time income and his income,

and we pay off your stinking student loan. That's what we do. This idea that you have to manage your student loan on a part-time income because your husband is off working and you're taking care of the kid that he helped create, that's BS. No, we work together on this. In sickness and in health, for richer, for poorer, unto thee all my worldly goods I pledge.

The old-fashioned marriage vows said that we combine our incomes, we combine our problems, we take care of each other. We are one unit when we are married. This is not a joint venture. It's a marriage. This is the Ramsey Solutions on the debt-free stage, Austin and Miranda are with us. Hey, guys. How are you? Good. Good. Welcome.

Where do you all live? We're from Austin, Texas. Austin, Texas, and all the way to Nashville to do a debt-free screen. How much have you paid off? $97,000. All right. How long did that take? It took us 14 months. And right. How long did that take? Took us 14 months.

And your range of income during that time? It was about $130,000 to $150,000. Good. What do you guys do for a living? I'm a state trooper. And I'm a school-based speech therapist. Awesome. Very cool, you guys. Very well done. What kind of debt was your 97 000 student loans all of it oh wow okay how long you two been married three years okay so after you've been married a few months you look up and you go we got a hundred thousand dollars worth of sally may hanging out yes and we got to do something about this tell me the story what happened? So it was about two years. We were on the Davis plan for about two years or so. I actually went through FPU during the academy. Okay.

The FPU for government employees. Yeah. So I went through that, and it kind of gave me a little understanding about your plan, but we didn't fully commit. Yeah, we didn't commit to it until 14 months ago. We did. We were on the Dave Ish plan. So we did save up and pay off a car. And we were so proud of ourselves. But we didn't touch the student loans. We were like, that's impossible. We'll get to that later. And then January 2020, we were kind of at a crossroads.

We were like, everyone around us was buying a house or starting their lives. And we're like, we want a house. We wanted one so bad. But we were kind of like, do we buy that or do we pay off our student loans? And then we were listening to your show daily. And we're like, we can't buy a house. We're broke. We don't have any money.

So that's when we decided, let's just go ahead and pay off these student loans now. Just dive in head first and then covid comes right of course yeah perfect which made it easier or harder easier in that um couldn't do anything we couldn't do anything right yeah no eating out no movies we're just stuck you're stuck at home paying off debt yeah which is what you were going to be anyway but yeah everybody else was stuck at home it It wasn't too bad, I guess. Yeah. So did you guys, at school you were getting paid but probably weren't going in, but you were probably working your tail off as state trooper, right?

Yes. Yes, very much, yeah. And OT and everything else, all kinds of, everything going on. Everything I could take. Yeah. Yeah. Crazy time. Crazy time.

So you knock out $100,000 in just a little over a year. I mean, $97,000, that's impressive. Yeah, it was a lot of work. You were game on. I mean, you were beans and rice, rice and beans. Yes. We hit it with the gazelle intensity. After that first snowball, the first loan we paid off, we were like, whoa, we could actually do this.

So he was working all the OT. He picked up a second job working overnight shifts. I went in over the summer to do some contract work and every extra dollar, we budgeted as well, every extra dollar that we could, we threw it towards our student loans. And then at the time when we started this journey, we were living in a three bedroom rental with a yard for our dog, all of this stuff. And we realized, we don't need this. We can downsize. So we ended up downsizing to a tiny one-bedroom apartment, which was half of the rent we were

paying. And he ended up working there, too, as a security. Oh, yeah. Yeah, they give you rent then. Yeah. Get a little discount there. So we got a good discount, and we threw that extra chunk that we were paying for our rent at our other house towards our loans.

Just every dollar, rice and beans, all that stuff. Yeah, all for just 14 months. You could do anything for 14 months. Right. And you did. Right. Everything. And once we started, my thought was, why did we start this sooner?

We could have started this a couple years ago and been done already because we thought it was impossible, but it really was doable. It's all about belief. Exactly. Very impressive, you guys. Very well done. You've got to feel really accomplished. We do. It feels amazing.

Honestly, yes. Yes, I mean, once you... I mean, just us, we're like... I mean, if we did that, we can do... Anything. I mean, yeah, almost anything. Yeah, I mean, you know mean just us we're like i mean if we did that we can do anything i mean yeah almost anything yeah i mean you know because you just go all right bring it on next thing next thing next thing good well done okay so when somebody says wow i mean you guys paid off $97,000 in 14 months how'd you do that what do you tell them the key is well obviously budgeting that was the first step budget and see where you can cut back.

See what's a want versus a need. And then make a plan. Make your goals. The debt snowball is there for a reason. It works. Commit. You've got to commit. Find your why and then just hit it.

Yeah. Find some reason to just go all in. Yeah. You know, just go crazy. Beast mode. You know, you just got to go. And that's so well crazy, beast mode. You just got to go. That's so well done, you guys. I'm so proud of you.

Who are your biggest cheerleaders? Definitely each other. We work together great. We learned a lot about ourselves too. Almost daily. We'd have to do the math every week just to keep motivated. With this much OT, because we were working hard, we'd have to check in and be like, we can do this.

But obviously our families too, understanding when we had to say no and things like that. Yeah, they were very understanding about everything we were doing. So, yeah. That's good. Very good. And now you are free. How's it feel? Feels really good.

Amazing. Yes. It's awesome. You ever go back in debt? Never. Never again. Never. Not for a car? Not for a car. Not for awesome. You ever go back in debt? Never. Never again. Never. Not for a car?

Not for a car, not for anything. All right. Good, good. Well, I'm proud of you guys. Very, very, very well done. Inspiring stuff. So now you get to save for a house, right? Yep.

Yes, that's the Baby Step 3B. There you go. You're game on now. That's right. Good. Very good. You're in a great place. Well, we've got a copy of the Legacy Journey for you because that's the next chapter in your story.

You're going to change your whole legacy with this, and you've just started. So really, really good stuff ahead of you. And like you said, once you've accomplished this, you know you can do almost anything. Also going to give you an extra copy of Total Money Makeover to give away and get somebody else started on their journey and pay it forward a little bit. And so all of that just for you guys. So very, very well done. All right.

Austin and Miranda from Austin, Texas. $97,000 paid off in 14 months. Getting it. Paid $100,000 and making $130,000 to $150,000. Count it down. Let's hear a debt-free scream. Three, two, one. We're debt-free!

Yeah! Whoop, whoop, whoop, whoop, whoop, whoop. Yeah! Absolutely incredible, you guys. So when we did the millionaire study, the Ramsey Research Team, and we studied over 10,000 actual millionaires, not your broke brother-in-law with an opinion, not a Twitter troll living in his mother's basement,

but actual millionaires who actually have a million dollars or more, and we found out about them, you know what was very interesting? The top five professions that become a millionaire. Number three was teacher. Her. You know how often they were married to a policeman? Very often. Very often. Very often.

So you guys have the perfect career match at your age to be future Baby Steps millionaires. You are right on track to do that. It happens all the time. They've got $150,000, $130,000 household income. And by the way, only 33% of the millionaires that we studied, no, I'm sorry, 33% never made, one-third of them never made a household income of over $100,000. They became millionaires with a household income under $100,000. One-third of them did. These guys got a head start.

Now, two-thirds of them did have over $100,000, but almost none of them made a half a million dollars a year. Almost none of them made $400,000 a year. Most of them made $100,000 to $200,000 right in there. That's where it fell, right where you guys are sitting. So your case studies of future baby step millionaires, I mean, you fit the mold almost exactly. Because, you know, if you can pay off $100,000 in 14 months, technically speaking, you could have $100,000 in the bank 14 months from today. You see how this is starting to work?

Ta-da. Once you learn how to handle money and you make it behave instead of you wonder where it went and you live in a total freaking chaos and try to out-earn your stupidity, once you stop that stuff and you go do what Austin and Miranda did, yeah, you get in Financial Peace University, go to Ramsey Plus, you get this stuff going, ding, ding, boys and girls, this is the way this works. I love it. I love it. What a sharp young couple. This is The Ramsey Show. Our scripture of the day, Philippians 1.6,

God, who began the good work within you, will continue his work until it is finally finished albert einstein said a person who never made a mistake never tried anything new yeah you better be making some mistakes from time to time folk that's part of the process here brooke is with us in Las Vegas. Hi, Brooke. Welcome to the Ramsey Show. Hi, how are you? Better than I deserve. What's up? So I just have a quick question. I am a business owner and I have, I think about two years ago, opened up a Roth IRA. I've funded it to the max each year, but we'd like to start investing. My husband has a separate 401k plan through his company, but we'd like to start investing more, you know, up to the 15%, if not more.

And I'm wondering once I maxed out both of the Roths, what kind of account to open next? We have a brokerage account, but I am wondering if there's a better solution as far as tax wise when you go to pull out the uh the money okay you shouldn't i would not be doing anything in a brokerage account until you get to 15 how much is in your brokerage account oh i think close to anywhere from i think 50 because we took a hit we're waiting on money to come back up. Obviously, the market's down a little bit, but about 60%.

And actually, what happened was... 60%. You mean $60,000? Or $60,000. I'm sorry. Okay. $60,000, yeah. My husband pulled out of his 401k plan because the company matches it because the options that they let him invest in weren't moving. So when he had the opportunity to pull out when it was the, I think it was,

there was that, I think during COVID last year, I can't remember what it was called. Oh, Jesus, no. Okay. So he just took that money and rolled it over into another account so that he could be making money. Absolutely horrible idea. Okay. You guys have to stop monkeying around with this stuff all the time. You need to get on a steady plan and be the tortoise, not the hare.

So go to DaveRamsey.com, click on SmartVestor, and find a SmartVestor pro in your area, a financial advisor to sit down with, and let's get that money out of a stupid brokerage account and um so you trashed you lost your ira he lost his 401 no no wait i we still have our ira i know he cashed out his 401k and put it in a brokerage account oh okay horrible well not all of it he only took a portion of it. I know, but $60,000 worth. So now we've got that money just laying there.

This is what government programs do. Actually, I think it was $45,000 he pulled out, and we've made money on it. Okay, that's wonderful. Still a stupid idea. Okay, anyway, now, to answer your question, what's your household income? About $130,000. Okay. So 15% of that is going to be, what, $18,000, okay? Right.

And so $18,000, that's $1,500 a month, needs to be going into something in good growth stock mutual funds. The best place to put it is where there is a match does his 401k have a match right they do they match him dollar for dollar up to six percent i think so he's already been doing that okay so we're going to do at least six percent first and what and what is his income times 6% up towards our $18,000 for the year. Okay. The next best thing is a Roth.

Does his 401k have a Roth option? I don't believe so, but I opened up a Roth. No, no, no, no. Stay with me. Stay with me here. Okay. Let's stick with his 401k, Roth option. All right.

Now, if it has a Roth option, and it probably does, that's what he needs to be in. Then you look at his selection of mutual funds, and you pick the best ones, and your Smart Investor Pro can help you look at what his options are inside there, and you stink and leave those alone once you pick the best ones, and your SmartRestore Pro can help you look at what his options are inside there, and you stink and leave those alone once you pick them. Right. Because this is all growing tax-free with a match. No brokerage account in the freaking world is going to keep up with that, even if the mutual funds are underperforming.

They're going to be better at tax-free growth than what this crap you've been doing on your own over here with this brokerage account. Monkeying around with us has lost you all so much money. Then we're going to do two Roth IRAs up to $6,000. That's $12,000. See, we're easily going to get to our $18,000 with this. Gotcha. Okay? Okay.

So the $18,000 is what we're after per year going in so we're going to take the match at six percent we're going to do your two roth in good mutual funds and then we're going to do more in his 401k hopefully roth in not so good mutual funds because it sounds like his options aren't that great okay yeah and um that's going to get us up to the 18 18 000 a year which is 15 of your 130 000 and that's what you're going to do you're again your smart investor pro can help you lay all of that out and get all of that rolling and of course if you have any debt we're going to use that brokerage account to clear that if you don't have an emergency fund we're going to use that brokerage account to clear that. If you don't have an emergency fund, we're going to use a brokerage account to create a three- to six-month expenses emergency fund.

We're going to create a situation where all of those things are covered, all of the baby steps all the way through. And that is what we're going to do, Brooke. And then you're going to be on a steady, steady plan. Thanks for the call. Okay, guys, let's step back up the people that end up in the millionaire study being millionaires are the ones that steadily invest here's what the irony is a lot of the millionaires that we studied were not expert investors who maximized rates of returns. Many times they had medium to poor, decent mutual funds that they were investing in.

Almost the majority of them could have done better with their mutual fund selections, and yet they still became millionaires. And the Association of Actuaries did a study, which is like super nerds, okay, that says that 74% of the reason that someone becomes wealthy is savings rate. Now, it's not the rate that they make on their savings. It's that they constantly save a set percentage, a good percentage of their income, like 15% of your income in Baby Step 4, towards their investments. So here's the point. 74% of the people who become wealthy wealthy that's almost all of them that's

statistically significant do so not because of commissions or no commissions on their mutual funds not because of their expense ratios on their mutual funds and not even because the rates of return on their mutual funds it's because they keep doing it over and over and over and over again, and no one can talk them out of it. Savings rate, meaning they actually freaking invest. The secret to wealth is to invest, invest, invest. Don't stop investing invest invest invest don't stop investing that's the secret now i would like for you to and i would like to pay less expenses on my investments i would like for you to and i would like to make a pick better mutual funds and get better rates of return and those are all good things but they are not the secret sauce.

Seventy-four percent of the reason that people become wealthy is they actually invest, and they invest, and they invest, and they invest, and they invest, and they invest, and they invest, and they invest. That's simple, guys. It's that simple. And so you have got to be steady with this. Jumping in and out, trying to catch the market, trying to find the edge, trying to find some kind of secrets of the rich is so much BS, and it does not work.

Getting frustrated because your stuff's not doing what it's supposed to do, and you move it all around all the time, you're constantly monkeying with this is not the answer. Constantly, steadily invest, invest, invest, invest, and that's how you get there. This is The Ramsey Show. We'll be back with you before you know it. In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. This is James Childs, producer of The Ramsey Show.

Did you know The Ramsey Show is one of the most popular podcasts in the world? Subscribe or follow today wherever you listen to podcasts. We'll see you next time.