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Chapter 1: What are the favorite moments shared in this episode?
Live from the headquarters of Ramsey Solutions, broadcasting from the pods of Moving and Storage Studios, it's the Ramsey Show, where we help people build wealth, do work, that they love and create actual amazing relationships. Ken Coleman, Ramsey personality, number one best-selling author, host of The Ken Coleman Show, talking about work and careers as my co-host today.
We're taking your calls at 888-825-5225. That's 888-825-5225. Allison is with us in Seattle. Hi, Allison. Welcome to The Ramsey Show.
Hi, Dave. Thanks for taking my call. I appreciate it. Sure. What's up? I just have a question for you. I'm a longtime listener.
Chapter 2: How did the guest overcome bankruptcy to achieve wealth?
We've listened for about 10 years. And I just am curious about your own personal story when you went through bankruptcy. It seems like, if I understand correctly, you became a millionaire pretty quickly after that. Or if I'm incorrect, maybe I'm incorrect on that. But I just am wondering how, how did you do that? It just, it seems so slow to pay off our mortgage.
And so I'm a little bit discouraged. Like I see all these young kids on YouTube, you know, doing all of these, I don't know, investment type things where they're built like buying duplexes, living in half of it. You know, I forget what that's called, but I'm just curious. It just seems so slow. Okay.
uh no it was about 10 years for us 10 years um uh we filed bankruptcy in 1988 it was probably about 98 or even the year 2000 somewhere in there before we hit a million dollar net worth i guess i've never gone back and looked at it but it's somewhere like that it was not wasn't that fast uh what do you make what's your household income about 105 000 okay and uh how has that increased over the last 10 years
Quite a bit. I mean, my husband, I think he started around 65 maybe.
Chapter 3: What strategies can help pay off a mortgage faster?
Yeah, okay. And so you have just your home left to pay off?
Yeah, it's probably worth market value right around $700 and we owe about $99 on it.
Okay.
But we don't have any intention of selling it, so...
Yeah, I didn't want you to sell it. I just was asking what was going on. Okay, so you got a $700,000 piece of net worth there, and surely you've been saving for retirement through that time, right?
Yeah, we do the 15% in a 401k and Roth IRAs.
Yeah, and how much is in there?
I don't know. I haven't checked that for a while.
Oh, roughly.
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Chapter 4: How does household income impact financial growth?
So maybe you're a millionaire and you just made 100 grand max. That's pretty good.
Well, I don't know about that.
Well, I mean, if you have $250,000 in your 401ks and you have a $750,000 equity in your house, that's a million dollars.
Yeah. Yeah. Yeah, I guess maybe. Yeah.
Let's assume that you have a fast-forward button, because I'm hearing some angst here. I'm just curious.
If you fast-forward to 2019, I think you've been watching crap, get-rich-quick stuff on the Internet, and you thought there was an easier way to do it than you've been doing it. With the income you've had, you've done an amazing job.
What do you want on the other side of this? What's on the other side of paying the house off? Let's assume you've done that.
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Chapter 5: What are effective retirement savings strategies discussed?
What do you want?
Mm-hmm. You know, I really don't know. I've kind of asked myself that question as well. I think I come from a long line of, on both sides of my family, elderly grandparents and great-grandparents dying with nothing. And I'd like to have a better quality of life when I'm older, I guess.
You're already on your way in a spectacular fashion. You're not dying with nothing.
Yeah.
How old are you and your husband?
Yeah. I'm 44. He's 46.
What does he do for a living?
He's an electrician.
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Chapter 6: How can emotional barriers affect financial decisions?
Yeah, he's already increased his income. Does he work for himself now?
No. No, he works for a utility company.
Yeah, but he's still a young man, and, you know, a natural progression for him to start his own company and become a millionaire just in that business alone, plus what Dave's already laid out for you guys. I just think this is so fear-based. that you haven't been able to look at your own life and your own reality and see how good you're doing.
Yeah. One third of the people that we'd studied that became millionaires did so on six-figure income or less. And that's you.
Wow.
That's you.
Wow.
Okay. So far, I mean, you just now got over 100, right?
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Chapter 7: What advice is given for making major life decisions?
Right, just in the last year.
Yeah, yeah. And so you did everything to this point that you've done on less than $100,000 a year, and you told me the house is worth what?
Right around $700,000.
Okay, and you owe $100,000, so that's a $600,000 equity. I said $700,000. I was wrong, okay? So you have a $600,000 equity, and if you've got $200,000, $250,000 in your 401ks and Roth IRAs, which you need to go look up tonight. You all need to sit down and talk about this. Because you're stewing about this and don't even know the numbers. Yeah.
Because sometimes just knowing the numbers will relax you. So here's the thing. Let's pretend that you got $300,000 in there. That's $900,000.
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Chapter 8: How can couples align their financial goals effectively?
Okay? Very close to a million. You follow me? $600,000 on the house plus three in the other. Very close to a millionaire at 44 years old. That's a long way from dying old and broke.
Yes.
And so John Deloney talks about when you're running into these emotional things and you're running the catastrophes over and over in your head, that facts are your friends. They'll kick the drama queen out of your brain. Facts will do that. So sit down and look at the facts because here's a fact, okay?
Let's say that your net worth grows at an average of 10% a year because you're invested in good mutual funds and real estate does well in the Seattle market, which it traditionally has done for the last 30 years, okay? Now, Seattle could screw it up and cause it to fall in on itself like some of these other cities have done, but let's just assume that Seattle continues to be a boom town, okay?
and so if that happens your million dollars is going to double every seven years so you're 44 at 51 it's going to be 2 million at um at 58 it's going to be 4 million at 65 it's going to be 8 million and that's if you add nothing to it see what i mean by real estate numbers Yeah, facts are your friends. That's if things go up 10% a year.
If you got your mutual funds and your real estate goes up 10% a year. Now, it may or may not go up that much. It may be a little bit less, but I'm not that far off. My point is that if it doesn't double every seven years, it's going to double every eight years. Whatever it is, it's still going to be pretty close. And that's without adding anything to it. And you're going to continue to add to it.
So your chances of becoming your relative that died broke is close to zero. I mean, you're doing so good. Way to go, Allison. Go get you a mirror and pat yourself on the back. This... This is The Ramsey Show. Rachel Cruz, Ramsey personality, number one bestselling author, is my co-host today. Hey, thank you to all of you that have recently joined us.
Our ratings and our rankings and all the different ways we measure success on the show are all up, meaning there's more of you out there than there was last month and a lot more than there was the month before. Thank you very much. And those of you that told your friends and neighbors to come visit, Thank you. And we're going to ask you continue to do it.
Uh, there's three ways you can help us because we do not spend a bazillion dollars. We don't spend $300 million a year on, uh, marketing. Like, um, we don't have our own stadium, like, excuse me. I'm sorry. I got allergies. Um, but the, um, You know, we don't have a big football stadium named after us, so you've got to help us, all right? So what do you do?
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