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The Ramsey Show

If You Can’t Pay for It, Don’t Buy It!

17 Jan 2024

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: What is discussed at the start of this section?

28.246 - 56.672 Dave Ramsey

Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. George Camel, Ramsey personality, YouTube star of The George Camel Show, is my co-host today. It is book launch week for George. His new book, Breaking Free from Broke, is on the shelves. It came out officially yesterday.

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56.692 - 70.268 Dave Ramsey

The ultimate guide to more money and less stress. And George goes through with great research showing the villains that are out there and the people that are trying to keep you down. They're the man with the thumb on your neck. And you got the thumb off their neck.

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70.248 - 86.655 George Campbell

Absolutely. And it's been encouraging to see the feedback, Dave. One lady, this was a great message I got yesterday. I've been reading the e-book. We've been paying off the credit card in full monthly for years. But your chapter on how predatory the credit card companies are has changed that. We've switched to debit cards only.

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86.795 - 93.146 George Campbell

I felt like I needed a shower after reading the stats on who's paying interest and who's getting rewards. I don't want to be a part of that system anymore.

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93.466 - 96.771 Dave Ramsey

Wow. That's what I was hoping for. A little social movement there.

96.851 - 112.03 George Campbell

We are starting a movement where people are going, these companies are not my friend, and their marketing is so slick. I mean, how many people brag about their credit card rewards and how much they love their sentimental security blankie? And so that's just one of the many traps I uncover, and it's been great to see that kind of feedback.

112.211 - 115.635 Dave Ramsey

Yeah, you're getting people to get rid of their little plastic blankie.

115.835 - 121.342 George Campbell

Yeah, and you've been doing it for years, Dave, getting them riled up with anger. I just do it with snark. We have different methodologies there.

121.783 - 134.12 Dave Ramsey

Snark is just passive-aggressive anger. That's right. Open phones at 888-825-5225 as we talk to you. Micah is in Washington, D.C. Hi, Micah. What's up?

Chapter 2: What insights does George share about credit card companies?

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Okay. Now I understand. Okay. Yeah, that would be more reasonable in the military. Most people are going to make a lot more in five years than a $10,000 raise. That's why I went there. Right, right. Okay. Well, I mean, here's the thing. I love cars. I drove here today in my Raptor. I love big engines. I like things that make noise. I'm redneck. I want a loud muffler. All that, right?

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257.619 - 282.604 Dave Ramsey

But the stupid things go down in value. Like a rock. Right. That's where Chevy got that. Like a rock. Okay. They go down in value. And that includes that sweet Nissan you're talking about. And that includes my sweet Raptor. They go down in value. So if you're going to build wealth, you have to keep as small an amount as possible going into things that go down in value.

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So consequently, we find millionaires driving very conservative used cars. until they've got substantial money. And one of the guidelines that, George, that we've developed here is to not have more than half your annual income tied up in things that have motors and wheels. So adding up all of your little toys with motors and wheels, does it add up to more than half your annual income?

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Because if it does, you've probably got too much in things going down in value while you're trying to build wealth. Does that make sense to you mathematically?

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Yeah. Yeah, yes. Like, I mean, it would be like $45,000 total.

322.27 - 348.469 Dave Ramsey

Yeah, and you make 80, and so you're over half. Yeah, okay. So, sweet car, sweet car, and you got the cash. If you do it, you can do it. I mean, you're going to afford it, obviously, but the warning is that you're putting money in the wrong places if you want to be wealthy. Got it. I mean, the way you know someone's going to stay middle class is when they have two very nice cars.

348.905 - 363.543 Dave Ramsey

that are obvious $500, $600, $700 payments sitting in front of a middle-class house. Exactly. 100% of those people are going to stay middle-class. until they break that habit. It's just a huge indicator.

364.223 - 381.623 George Campbell

Yeah. And the other thing to think about, Micah, is you've got another set of insurance premiums to pay, more maintenance for repair. And so right now, as you're in the military, I don't know how much driving you're doing on these vehicles, but I would consider those because it is a toy. And so this is not going to crush you if you do it, but we're just saying it may not be the time.

382.604 - 403.623 Dave Ramsey

Yeah. I... As much as I completely grasp what you're doing and I, and you know, that's a great car. I, as the guy on the radio that tells you to do things to become wealthy, I'm going to tell you, don't do it. I'm going to tell you way to later when you've got more money and you're in a better financial position to do it. You've got the money to pay cash.

Chapter 3: What are the key principles of the Ramsey Plan?

817.403 - 832.61 Dave Ramsey

So there's no magic formula on what to do with the money. I put mine in growth stock mutual funds, and I pay cash for real estate. And I live 100% debt-free, and you probably already knew that. Yes, I do. And George does the exact same thing.

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832.991 - 850.701 George Campbell

Absolutely. And when you look at this money as a steward or a manager of it, it changes the filter. And an easy way to do this is filter it through the baby steps, number one, but also filter it through three buckets, giving, saving, and spending. So you should give some of this and be generous, just like your grandma was. You should spend some of it and enjoy it.

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851.262 - 854.587 George Campbell

And you should invest probably the biggest portion of this for the future.

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854.888 - 887.178 Dave Ramsey

What do you make? I currently make about $110,000 a year. Okay, so you don't need any of this. No. Yeah. And so here's an interesting thing. If you put it in something like a mutual fund and it makes 10%, it'll double every seven years. So you said you're 23? Yes, 23 years old. So it'll be 2.2 at 30. At 37, it'll be 4.4. At 44, it'll be 8.8. It'll be 16 million when you're 50.

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889.16 - 891.642 Dave Ramsey

If you just don't touch it and invest it and it makes 10%.

892.752 - 913.135

Yeah. Mind-blowing. I didn't get it wired to my bank account. It just got transferred into one of the financial institutions that she was associated with. But currently, it's split up about $350,000 as in personal stock choices and CDs, and then $750,000 as in a managed stock account.

913.155 - 933.203 Dave Ramsey

Okay. Well, I don't play single stocks, so I probably wouldn't do that because there's more risk. But I want you to get in there and start figuring it out. And again, there's nothing to panic about, but feeling the weight of this as a responsibility to manage... is a proper philosophical, spiritual stance for you.

934.005 - 941.539 Dave Ramsey

If you do that, it'll cause your decision making to be different than just some little kid who got some money and blows it all by the time he's 26.

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Yeah.

Chapter 4: How can I effectively budget and manage my finances?

1272.442 - 1293.814 Dave Ramsey

Yeah. You don't have to destroy a $40,000 truck to get the expense money. All right. Yeah, yeah. Yeah. So, I mean, I don't mind if you keep the thing, assuming the other numbers add up and you can pay it off. You owe $35,000. What's your household income? About $175,000. Okay. How quickly can you pay it off if you just lean into it?

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Well, we got about $13,000 credit card debt right now and about $9,000 on the wife's car and then $35,000 on this.

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1303.91 - 1329.323 Dave Ramsey

Mm-hmm. So you could be debt-free in like a year, a little over a year? Yes, that's the plan with the baby steps. If I'm you, I mean, that's a great truck. That's what Rachel's husband drives. He's got one. They're really good trucks. And you like it, obviously, because you're fighting to keep it in the conversation. But really, you make $175,000 a year. You can own a $35,000 Tundra. It's okay.

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1329.764 - 1348.569 Dave Ramsey

But I would own it and put it in the driveway. I personally wouldn't destroy it. I mean, I've got the Raptor R, which is a super expensive truck, the 700 horsepower. I'm not putting those miles on that truck. I live eight miles from the office. I drive it to the office. That's the only place I drive it, into the farm. That's it. I'm not putting a bunch of miles on this thing.

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1348.609 - 1372.916 Dave Ramsey

It's too expensive a vehicle to destroy it with high mileage. And it gets crummy gas mileage with the 700 horsepower. It ain't made for economy fuel. It is not an economy car. You can't fit it in the space, and it doesn't qualify. But yeah, same thing. I mean, I can afford the ridiculousness of that, and you can afford this.

1373.657 - 1377.844 Dave Ramsey

So I would say keep it and get something else that you destroy the value of.

1377.824 - 1382.712 George Campbell

Yeah, you make $175,000, pay off this $57,000 in no time, and get you a little commuter car.

1382.772 - 1387.079 Dave Ramsey

And then get you a $10,000, $15,000 truck and destroy it or whatever it is you want to drive.

1387.119 - 1388.421 George Campbell

In 12 months, you can do all of this.

Chapter 5: How did you first learn about managing money better?

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So I looked you up. Well, I looked up just how to manage money better. And your plan came across, and I was like, this guy's plan works. So I just did it. Never heard of us before that. Never heard of you before that. Wow. I just looked up how to manage money better, and I watched just about every YouTube video.

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Chapter 6: What was the wake-up call for getting out of debt?

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It was funny. She went to bed, and then I stayed up watching just about every YouTube video of you I could watch. And I was like, you know, I'm not the smartest, you know.

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3483.993 - 3501.327 George Campbell

guy but dang i can work dang it i can work i don't know how to work i don't want to make money i know how to work but that's most of the battle when it comes to getting out of debt is being willing to do it and sacrifice and you guys did it working five jobs to get out of this mess yep so the wake-up call is the stress point

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3501.307 - 3525.323

then you're flipping through these videos what were you seeing there that made you say i can do this what was it that gave you hope you know every other every other plan that i saw there was some kind of gimmick that went with it you know zero interest credit card or do this well that just that just moves the problem that doesn't fix the problem and i watched dave ramsey does the baby steps live in dallas and you're screaming at us telling us how stupid we are and i'm like you know what you

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This guy. That's one of my favorite videos.

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3528.585 - 3532.27 George Campbell

Was that from like the 90s or early 2000s? You did a thing, I think, on Fox.

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I have no idea. I was watching. I'm like, this guy's screaming about gazelles and telling me to go to work and telling me, yeah, this guy. We don't sell microwaves. We sell crockpots. I'm like, that's the plan I need right there.

3543.603 - 3547.868 Dave Ramsey

I would like to add that I wasn't on board at first because I was –

3547.848 - 3569.198 Dave Ramsey

like terrified because i just lost my job i was on unemployment and he was like we're getting out of debt and i was like i don't have a job like how can we do this like and he made me watch your video yeah yeah so at first i called you a fun terrorist dave yeah that's it then i got i am i am a fun terrorist that's good i got on board yeah looking back i feel not a violent terrorist but fun

3569.178 - 3574.686

Looking back, I feel really bad because she went to sleep with her husband and she woke up with some gravy.

Chapter 7: What key advice do you have for getting out of debt?

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Sure, I'm here anyway. So they paid me like $40 an hour. Wow. Yeah, it was pretty good. So that came through.

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3625.574 - 3629.2 George Campbell

And then you got some on-the-job experience there now as a police officer. Absolutely.

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That's really cool.

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3630.101 - 3634.909 George Campbell

Are you a police officer in Clarksville? Yes. If I ever get pulled over there, I'll be like, hey, I know Seth.

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Does that do anything for you? Probably not, but, you know, I'll try.

3639.897 - 3659.606 Dave Ramsey

I was going to say, and I got commissions with leasing apartments, so that was also very lucrative. She's really good. Yeah. Very good. Good job, you guys. Well done. What do you tell people the key to getting out of debt is now that you've done it? communication, sticking it out together, and also trusting the Lord. We had never tithed before.

3659.666 - 3663.292 Dave Ramsey

So we started doing that, and that's when everything changed.

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Yeah, it really did. It really did, and we started handling money God's way. What church are you in there? First Baptist in Clarksville.

Chapter 8: What are the common misconceptions about millionaires?

3671.244 - 3671.965 Dave Ramsey

Yeah, okay.

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Excellent. That's where we go. But yeah, perseverance. We had a lot of things happen. We had to pay a lot of stuff out of pocket. We had to move in there. We had some medical bills in there we had to pay. But just get right back on that horse and keep going and lean on each other. There'll be times I'm working 90 hours a week. It was a hard 36 months. Very hard.

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3688.948 - 3706.178 Dave Ramsey

Yeah, it was very hard. Very hard. Towards the end of it. Now that you're 100% free. It's amazing. Was it worth it? Yes, sir. Absolutely. Don't want to go back in it. No, never. I don't want to ever have to live like that again. It's live like that. So never, never live like that. Right. It's funny. We kind of switched roles.

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3706.378 - 3721.87 Dave Ramsey

Seth was wanting to save the money, save the money when we were going through the debt journey and I was wanting to spend it. And then once we got debt-free, I was like, I'm a hoarder now. I want to save all the money. And Seth's like, I want to buy something. Now we're finally out.

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She's calling me about a $10 expense at Walmart, and I'm like, just buy it. We have the money. You've got to rewire your brain to go, oh, we're free now. We're free.

3730.106 - 3730.808 George Campbell

We can enjoy life.

3731.108 - 3731.569 Dave Ramsey

Absolutely.

3731.669 - 3732.531 George Campbell

Way to go, guys.

3732.511 - 3754.84 Dave Ramsey

Congratulations. We're proud of y'all. Thank you, sir. Well done. Very well done. It's honoring to us to hear that the YouTube videos in the middle of the night gave you some hope when everything was closing in on you. Absolutely. That's a cool thing. That's very neat. Obviously, you got access to that all free. That's perfect. That's the way it should be. I love it.

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