Here’s How You Get Started Building Wealth (Hour 3)

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The Ramsey Show 39 min 6 speakers 8 chapters transcribed 3 months ago
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How can I get started building wealth?

Dave Ramsey 0:32
Live from the headquarters of Ramsey Solutions, broadcasting from the pods of Moving and Storage Studios, it's The Ramsey Show, where debt is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW as the status symbol of choice. We help people build wealth, do work that they love, and create actual amazing relationships. Christina Ellis, number one best-selling author. Ramsey Personality is my co-host today. Our phone number is 888-825-5225. Aurora is with us in Portland, Oregon. Hi, Aurora. How are you?
Aurora (Caller) 1:15
Hi. I'm good. Thank you.
Dave Ramsey 1:17
Good.

What should I do if I lose my job?

Dave Ramsey 1:17
How can we help today?
Aurora (Caller) 1:20
So the last couple of weeks I've been kind of... you know, been watching all of your guys's stuff on YouTube. I actually found you guys on TikTok and, um, yeah. And I just think kind of, you know, the last couple of months I've been really trying to, um, get settled and pay off debt. And it just seems like any way that I try, I can't. And, I always refer back to living paycheck to paycheck and I'm just, I'm kind of over it. I, I don't feel like I'm content where, like where I am in life. And so I feel like part of that is just having so much debt and, you know, having kids to take care of and wanting to plan for them. And I don't, I don't know like where to start. I don't know what to do anymore.

How much life insurance do I really need?

Dave Ramsey 2:09
Boy, I like you. You're in a really, really good place. Thank you for calling.
Christina Ellis 2:14
And I like you just because you mentioned to Dave that you found us through TikTok. Dave loves TikTok.
Dave Ramsey 2:20
I'm not sure if that speaks wholly of you or of me, but one of the two. Okay.
Aurora (Caller) 2:26
I love it, yeah. And it's actually my birthday today, so I'm like, you know what?
Dave Ramsey 2:30
Well, happy birthday. Glad you got through.
Aurora (Caller) 2:33
Thank you. Like, if it's not today, then I don't know what day.
Christina Ellis 2:36
Yeah, it's a great day to call. So walk us through the debt. How much debt do you have?

What does it mean to live paycheck to paycheck?

Aurora (Caller) 2:41
Well, I paid off quite a bit now, but I have about $21,000, I would say, between my partner and I that we still need to pay off. And most of it is credit card debt.
Christina Ellis 2:55
So you said you paid it off. Tell us about the debt you paid off.
Aurora (Caller) 3:00
So back when they were giving the unemployment during COVID-19, It took months for me to get my, like, checks because everything was so behind. And when I finally got, like, my claim, it wasn't that much. I paid off my car. I was like, this is one thing that I need to, you know, get rid of because, God forbid, I, you know, can't work anymore. I can't find another job. I need that, you know, I need that to get around.
Christina Ellis 3:31
Yeah, well, I just want to stop and applaud you for that because the fact that you're already, you know, wheels in motion, you paid off your car, that's great.
Aurora (Caller) 3:38
Yeah.
Christina Ellis 3:38
So what's your income?
Aurora (Caller) 3:41
Between my partner and I, we make about $5,500. Okay, let me stop a second.

How can I pay off debt effectively?

Dave Ramsey 3:46
Are you married?
Aurora (Caller) 3:48
No, we're not. We live together.
Dave Ramsey 3:49
Okay. All right. So legally, you have a roommate. And from the handling of your money, that's the way the law is going to look at it.
Aurora (Caller) 4:01
Right, yeah.
Dave Ramsey 4:01
So you pay off your partner's debt. You get zero credit for that with the law.
Mm-hmm.
Dave Ramsey 4:08
Okay, so you're combining your money with your roommate is a bad idea. Yeah. Because of where you stand legally. So how much, the $21,000, is that all in your name? No. Okay, what is in your name? $10,000, right. $10,000.

What is 'gazelle intensity' in personal finance?

Dave Ramsey 4:26
Okay. What is that on?
Aurora (Caller) 4:29
That is credit card debt.
Dave Ramsey 4:30
Okay. And good. And you paid off your car. Way to go. And what do you make?
Aurora (Caller) 4:37
I make, a month is about $2,200.
Dave Ramsey 4:42
Okay. Good for you. And how old are you?
Christina Ellis 4:45
I'm 28. And what do you do for a living? I'm an elementary school secretary.

How can I improve my financial behavior?

Christina Ellis 4:51
Okay. Well, thank you for your service. Thanks for what you do for the kiddos. Okay, so if you've been watching the videos, are you familiar with the term gazelle intense? No, I'm not yet. Dave, can you do your Dave?
Dave Ramsey 5:08
Okay. So here's the thing. What we have figured out is that personal finance is 80% behavior. It's 20% head knowledge. And so for your partner with their money, tell them to do exactly the same thing you're doing, but not combined. Right. So we'll have the same result that you're looking for, but when you combine them, you leave yourself open to other problems that we don't want to get into, okay?

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