Quit Spending & Get Your Stupid Butt Out of Debt! (Hour 1)
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What principles does Dave Ramsey emphasize for building wealth?
Live from the headquarters of Ramsey Solutions, broadcasting from the pods moving in 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 as we answer your questions about your life and your money. The phone number is a free call, and some say the advice is worth exactly what you pay for it. The phone number is 888-825-5225. That's 888-825-5225. Bill is in Harrisburg, Virginia, Harrisonburg, Virginia, to start off this hour.
Hey, Bill, how are you? I'm doing well. How are you? Better than I deserve. What's up? Hey, so I'm 41 years old. My wife and I, we entered Baby Step 7 one year ago when we paid our house off. Way to go. Network. Net worth is about 900K. Income is about 210 per year. And thanks to your teachings, we have moved forward in our financial lives, and we are just loving it. We have a new baby at home. That brings the grand total to two. Our investments, I'm maxing out my Roth 401K and my HSA. And I'm also investing in my five 29 for my, for my two children. So my question is this, I want to get into, um, some bridge investing that will give me some income ahead of the typical retirement age. I think I want to get into investing in rental properties.
So my question is, should I be maxing out all Roth IRA accounts for my wife and I, before I do any type of bridge investing? Because I think there's a little bit of room to do all of it. I did when I was at your stage. Um, and what we're talking about is a $14,000 swing with a $200,000 income. So it doesn't matter. I mean, if 14,000 keeps you from your bridge thing winning, it probably wasn't going to win. True. Yeah, that's very true. Yeah, so it's not enough that it matters. If it was $100,000 that we're talking about, then yeah, I might say don't do it and let's work on the bridge because you're smart to do the bridge. So what I did is just maxed out everything just because I hate freaking taxes. And I put as much money in anything I can put in that the government keeps their hands off of what you're doing.
You got your Roth 401k, you got your HSA, you got all that going. And then once I had all that Mac and you know, you do your backdoor Roths in your case to do individual Roths.
How can a no-spend month impact your finances?
And, um, then that would get you another 14 in there, but then our 13 anyway, but the, um, uh, and then I dumped money into an S and P 500 until there was enough in there to buy a piece of real estate. Yeah, so I can do that. And, you know, with my employer, I can do within my retirement plan, I can do a Roth, backdoor Roth, all the way up to like $50,000 a year. So there's a lot of options, but I really want to get into that rental real estate area. So I think what I'm going to do is... How are you getting to $50,000? Well, so with, with the account, so basically I think I can do 20, 22, 22,000 a year. Once I hit that max, um, I can, I can, it's through fidelity. My company allows 50,000 a year, uh, total.
So what I can do after I hit that 22, uh, I call fidelity and say, Hey, with the, it's an after tax, um, input into the 401k but then you call them and tell them before anything's invested they flip it right into the raw so it's essentially i would not i would not do that much if real estate and bridge is your goal if you were only doing traditional individual backdoors that's only 14k probably do that but i would not max i would not do that extra 25k i would use that towards your bridge I think I got the answer to my question. Thank you so much for your teachings. You have incredibly changed my life. You're a 40-year-old millionaire making 200K with a brand new baby. I'm so proud of you.
Right? When did you start this, Bill? When did you start this journey?
I bought my first house in 2009. That's about when I found Dave on the AM radio in Virginia where I live, and I just became a student of the game.
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Chapters
8 chapters
1
What principles does Dave Ramsey emphasize for building wealth?
0:27–3:17
2
How can a no-spend month impact your finances?
3:17–6:13
3
What strategies did Kristina Ellis use during her #NoSpendChallenge?
6:13–7:55
4
What are the benefits of maxing out retirement accounts?
7:55–10:41
5
How can you effectively invest in rental properties?
10:41–12:13
6
What advice is given for transitioning to a new home while managing debt?
12:13–13:52
7
How does one maintain financial stability after retirement?
13:52–16:48
8
What are the implications of using retirement funds for home purchases?
16:48–39:28