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The Ramsey Show

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

29 Nov 2022

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: How can I get started building wealth?

32.06 - 61.349 Dave Ramsey

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.

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61.729 - 74.162 Dave Ramsey

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?

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75.483 - 76.905 Aurora (Caller)

Hi. I'm good. Thank you.

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77.325 - 77.605 Dave Ramsey

Good.

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Chapter 2: What should I do if I lose my job?

77.625 - 78.366 Dave Ramsey

How can we help today?

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80.708 - 107.123 Aurora (Caller)

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,

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107.474 - 129.817 Aurora (Caller)

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.

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Chapter 3: How much life insurance do I really need?

129.837 - 134.562 Dave Ramsey

Boy, I like you. You're in a really, really good place. Thank you for calling.

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134.828 - 140.314 Christina Ellis

And I like you just because you mentioned to Dave that you found us through TikTok. Dave loves TikTok.

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140.395 - 145.32 Dave Ramsey

I'm not sure if that speaks wholly of you or of me, but one of the two. Okay.

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146.682 - 150.847 Aurora (Caller)

I love it, yeah. And it's actually my birthday today, so I'm like, you know what?

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150.867 - 152.909 Dave Ramsey

Well, happy birthday. Glad you got through.

153.99 - 155.953 Aurora (Caller)

Thank you. Like, if it's not today, then I don't know what day.

156.493 - 160.498 Christina Ellis

Yeah, it's a great day to call. So walk us through the debt. How much debt do you have?

Chapter 4: What does it mean to live paycheck to paycheck?

161.744 - 174.166 Aurora (Caller)

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.

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175.228 - 178.313 Christina Ellis

So you said you paid it off. Tell us about the debt you paid off.

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180.137 - 207.023 Aurora (Caller)

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.

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207.425 - 210.649 Aurora (Caller)

I need that, you know, I need that to get around.

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211.029 - 217.917 Christina Ellis

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.

218.177 - 218.457 Aurora (Caller)

Yeah.

218.577 - 219.899 Christina Ellis

So what's your income?

221.721 - 226.025 Aurora (Caller)

Between my partner and I, we make about $5,500. Okay, let me stop a second.

Chapter 5: How can I pay off debt effectively?

226.045 - 226.726 Dave Ramsey

Are you married?

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228.188 - 229.649 Aurora (Caller)

No, we're not. We live together.

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229.87 - 239.702 Dave Ramsey

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.

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241.124 - 241.365 Aurora (Caller)

Right, yeah.

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241.685 - 246.611 Dave Ramsey

So you pay off your partner's debt. You get zero credit for that with the law.

248.333 - 248.794

Mm-hmm.

248.814 - 265.826 Dave Ramsey

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.

Chapter 6: What is 'gazelle intensity' in personal finance?

266.066 - 267.147 Dave Ramsey

Okay. What is that on?

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269.029 - 270.551 Aurora (Caller)

That is credit card debt.

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270.651 - 275.857 Dave Ramsey

Okay. And good. And you paid off your car. Way to go. And what do you make?

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277.82 - 281.644 Aurora (Caller)

I make, a month is about $2,200.

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282.165 - 284.167 Dave Ramsey

Okay. Good for you. And how old are you?

285.428 - 291.055 Christina Ellis

I'm 28. And what do you do for a living? I'm an elementary school secretary.

Chapter 7: How can I improve my financial behavior?

291.095 - 306.585 Christina Ellis

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?

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308.995 - 328.354 Dave Ramsey

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.

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328.334 - 356.08 Dave Ramsey

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? Like who bought the mustard or whatever, all that garbage, right? So now, if personal finance is 80% behavior, that means when I get control of me, I have the best possible control of my outcome with my money. The more intense I get...

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357.376 - 374.541 Dave Ramsey

The deeper I sacrifice and the deeper I sacrifice, the more money goes towards cleaning up the mess and the quicker I get stabilized and moving towards wealth. So in other words, if you goof around with this stuff and sort of kind of do it.

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375.128 - 387.822 Dave Ramsey

and you still go out to eat, and you still go on vacation, and you still buy a bunch of crap that hasn't got anything to do with the goal of getting rid of these credit cards, it's going to take twice as long, and you're going to be half as likely to ever even do it.

389.455 - 408.437 Dave Ramsey

But if you get so intense that it's like you're going to die if you don't get rid of this credit card debt in five months, then you're going to work six jobs and you're going to eat ramen noodles and you're not going to do nothing but work and get out of debt because that's intense and sacrifice.

Chapter 8: What steps can I take to ensure financial peace?

408.457 - 432.642 Dave Ramsey

And that's what we mean by gazelle intense, like the gazelle running from the cheetah doesn't want to be eaten and doesn't want to be killed. They're running for their freaking lives. This is not an intellectual discussion. This is very visceral. It's bone marrow. You are going for it, right? And there's something that happens in 30 years of me doing this when people get that level of pissed off.

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432.79 - 449.33 Dave Ramsey

that they're willing to cut everything, that their friends think they've lost their minds, they think you've joined a cult, then you're on track. So you need to get out the credit cards when you get off the phone and chop them all up into little bitty pieces, every one of them. And you need to get on a written budget, and you need to get another job or six.

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450.732 - 467.697 Dave Ramsey

And you're not going out to eat, and you're not going to see the inside of a restaurant unless you're working there. And you're not going on vacation. All you're doing is getting out of debt. Because how's it going to feel when you don't have any debt? It's going to feel really good. How's it going to feel when you don't have any debt and have $10,000 in the bank? It's going to feel really good.

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467.957 - 479.233 Dave Ramsey

We call that financial peace. Yes. But you're going to pay a price to get there. You're going to have to live like no one else. So later you can live and give like no one else, okay? That's what Christina's talking about.

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479.787 - 491.726 Christina Ellis

Yeah, and I'm super encouraged. When you split things out, you've got $10,000, you've got $2,200 a month, and you're 28 years old. You can work six jobs. You can make the sacrifices. You can do this quickly.

492.127 - 510.469 Dave Ramsey

You're working in elementary school. It's over 3.30. You've got time to do three more jobs. I mean, you really do. I mean, you can go make some serious money. And there's people hiring out there like crazy right now, big time. And you don't have to do this forever. You just do it for a short period of time. It's a sprint. You just bust it for a short period of time. Hang on, Aurora. We like you.

510.489 - 560.062 Dave Ramsey

We're going to put you through our class called Financial Peace University. We're going to pay for it. Watch those classes. Hold on. I'm going to pay for you to have a membership. Watch every one of them and do every single thing we said to do and you'll be wealthy. Up to you. This is The Ramsey Show. Hey, all you procrastinators, listen up.

560.102 - 580.062 Dave Ramsey

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580.042 - 605.458 Dave Ramsey

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