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The Ramsey Show

Don’t Take Financial Advice From Broke People! (Hour 1)

31 Jul 2023

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: Do I really not need to have a credit score?

27.925 - 45.006 Dave Ramsey

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.

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45.205 - 65.545 Dave Ramsey

Ken Coleman, Ramsey personality, number one best-selling author of the book Paycheck to Purpose, host of The Ken Coleman Show, where he talks about your career, your work, all the time, every day, is my co-host today. So you want to talk about those subjects, he's here for you, and I'll try to stumble around and cover some of it, too. The phone number is 888-825-5225.

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65.945 - 75.196 Dave Ramsey

The call and the advice is free, and some say it's worth exactly what you pay for it. Dana is with us in Pittsburgh. Hey, Dana, welcome to the Ramsey Show.

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76.618 - 78.08

Hi, I'm so excited.

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78.38 - 80.043 Dave Ramsey

Well, we're excited. How can we help?

81.585 - 91.8

Well, I recently, first off, I watch you all the time. You, Rachel, Dr. John, George, love you guys. You've saved my life in many ways. Thank you so much. I truly respect all of you.

Chapter 2: Should my husband quit his job to start a business?

91.96 - 115.53

Well, thank you. Absolutely. So I saw something the other day that said, Poor people use debit cards. Rich people use credit cards. I don't have any credit cards. I don't have any debt. I have great investments. I have money saved up. I only have living expenses. I have a great job. I don't have any credit cards. Should I?

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115.57 - 120.498 Dave Ramsey

Well, I don't know who said that. It sounds like you ought to stay off of TikTok.

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Chapter 3: Is now the right time to buy a house?

120.998 - 124.228 Ken Coleman

Yeah. You didn't see that at a Cracker Barrel, did you?

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125.249 - 141.7 Dave Ramsey

No, you didn't see it at Cracker Barrel. I promise you you did. Yeah, you wouldn't have seen it there. You wouldn't have seen it where actual rich people hang out or actual poor people hang out. It sounded to me like they got that exactly backwards. My net worth is several hundred million, and I haven't had a credit card in 30 years, so I don't know where they got that.

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142.709 - 147.797

Okay, but then don't I need a credit card to rent a rental car?

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148.538 - 162.861 Dave Ramsey

I haven't had a credit card in 30 years. Really? And I travel more than any two of you put together. Okay. They take a debit card. I mean, some of the situations you have to work in, not every...

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Chapter 4: Should I use my 403(b) to pay off my house?

162.841 - 189.088 Dave Ramsey

of the uh rent-a-car companies take them no and there are some situations where you have to do a workaround on it but it's not this idea that you you know so here's the thing people get credit cards for mainly one reason so they can buy crap they don't have the money to buy right and then they justify going well i need to build my credit That's what they say because that's what rich people do.

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189.309 - 207.452 Dave Ramsey

Rich people build their credit. Bull crap. All the rich people that we interview say they get out of debt and stay out of debt. And that's how they got rich. They don't pay payments all the time. Because, see, there's only one way to build your credit, go in debt, right? Right. Why? So you can build your credit. Why? So I can go into debt. Why? So I can build my credit.

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Chapter 5: What should I do with a million dollars?

207.712 - 227.402 Dave Ramsey

Why? So I can go into debt. Why? So I can build my credit. It's a dog chasing its tail. It's called the great FICO scam. I haven't had a FICO score in 30 years. Really? Yeah, really. They said I don't exist. I'm not here. I'm off the grid.

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230.086 - 232.128 Dave Ramsey

Because I don't have any credit. I don't have any.

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Chapter 6: How can I build wealth without debt?

232.589 - 244.283 Dave Ramsey

I have had no interaction with debt in well over 30 years of any kind. And so I have zero on my credit bureau report, so I have a zero credit score. They say it's indeterminable. I call it zero.

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244.972 - 251.057 Ken Coleman

Dana, what do you think you need credit for? What do you think you need a credit score for right now?

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252.539 - 255.401

If I want to buy a house one day.

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255.421 - 274.017 Dave Ramsey

Not true. You'd have to talk to George Campbell. He bought a house with zero credit score. And he got a mortgage, by the way. He did it with manual underwriting, it's called, with Churchill Mortgage. And got the same interest rate that people with an 800 score would have gotten. But you know what George did, don't you? He turned around and paid the house off.

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Chapter 7: What are the dangers of taking financial advice from broke people?

274.503 - 295.995 Dave Ramsey

And so at 32 years old, he and Whitney are millionaires. So, you know, that's what they did. And it wasn't because he makes a bazillion dollars here because I don't pay that good. Actually, I do. But George was George got it paid off for. He started making bank. So there you go. But anyway, and Whitney Whitney makes up.

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296.115 - 296.636 Ken Coleman

Oh, yeah.

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296.716 - 308.292 Dave Ramsey

Two good incomes there. But anyway, they. Yeah. So, no, Dana, it's a scam. And whoever said that, I mean, listen, you got to be careful where you take financial advice. Broke people walk around all the time with financial advice.

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Chapter 8: How can I ensure financial stability in retirement?

309.093 - 328.435 Dave Ramsey

Don't take financial advice from broke people. I mean, it's just crazy. You know, your broke finance professor in college is telling you how you need to do stuff, and he's got no money. A broke finance professor is like a shop teacher with missing fingers. I mean, come on. Yeah. There's issues here. So, yeah. All right. Open phones, folks, at 888-825-5225.

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330.016 - 338.125 Dave Ramsey

You know, Kent, what's interesting is if you look around, you say, okay, the vast majority of the population is something I don't want to be.

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338.105 - 364.855 Dave Ramsey

yeah then don't do yeah what they're doing that's right the vast majority of them look good and have no money they have cars they can't afford vacations that they're still paying for after they got home their net worth is horrible they're counting on the government to provide for them when they get to retirement because they're not saving for retirement their children are a student loan looking for a place to happen because they're not saving for college this is normal

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365.493 - 390.448 Dave Ramsey

in America. 78% of Americans live paycheck to paycheck. That means 78% of Americans are not worthy to give out financial advice because they're freaking broke. So when your broke friends have an opinion, just smile. No thank you. That'd be like me having an opinion on growing hair on my head. That'd be dumb. There's none up there. Well, you could be an expert on what not to do.

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391.169 - 392.891 Dave Ramsey

Yeah, but I don't even know what caused it.

393.152 - 396.617 Ken Coleman

I can claim it's DNA. So here's what's going on, Dave.

396.737 - 407.152 Dave Ramsey

We live in a world. I can claim it's going broke. I can claim my hair fell out for a lot of reasons. But at the end of the day, I'm not good at growing it on the top of my head. So you should not take my hair on top of your head advice.

407.953 - 424.778 Ken Coleman

So here's what I want people to hear. Just because it's marketed so heavily and everybody else has bought it doesn't mean it's true. We have marketing messages that have been going on for decades. You pick an area of life where you see a commercial. Let's take the prescription drugs.

424.758 - 435.018 Ken Coleman

They are marketing these things are good for you, but the list of side effects are longer than the actual thing it's helping. But they market it with these happy, ebullient people in the commercial.

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