The Boring (But Proven) Path to Building Real Wealth | Dave Ramsey EP 892

0:00There are two big things happening at one time that I've never done before. I'm going on a book tour for my new book, Make Money Easy, and I'm doing a podcast tour at the same time. It is going to be big, and I'm going to seven cities in 10 days. Get your friends, get your family, bring everyone you know to these cities. I'm coming to Austin, Texas, New York, Boston. We're going to Nashville. Then we're going to Los Angeles, San Diego, and San Francisco. Make sure to get your tickets right now. go to lewishouse.com slash tour again bring everyone you know if you're looking to create more financial freedom and abundance in your life and you want to see a massive guest live on the school of greatness show get your tickets i can't wait to see you there hi my name is lewis house and welcome to the daily motivation show

0:58what are a few things people can start doing to increase the odds of wealth over time to increasing the odds is it something mentally they can do spiritually they can do is there something in their relationships they can do differently to increase the odds well i think the first thing is um you have to have uh i mean we were sitting in one of our leadership team meetings yesterday as a matter of fact here in the at ramsey and we were looking at a business unit and they kept going well we need to do this we need to do this and we did not have agreement on the the baseline data of what was actually going on one person thought one thing was going on one thought another was going on and we i said we got to back up we got to put data in front of us and once we all agree on exactly where we are then we can discuss right where we're going and i i think you know, building wealth or having a high quality life in any area is a little bit like that.

1:53You need to back up and say, okay, what are the principles before I worry about the tactics? And the principles should lead us to the tactics. And the five money principles, if we wanted to pull some out, there would be common sense, biblical things that are kind of boring. But if you lay those principles in place, then they'll lead you to the tactics. I mean, And here's one, live on less than you make. Now that sounds kind of almost glib, you know, but the Bible says the borrower is, I mean, it says a foolish man devours all he has. Live on less than you make. You need to be on a written plan.

2:29In anything you're doing, if you don't do it intentionally, it's not going to occur. No one wins anything accidentally. It's an intentional act. winning always is at marriage, at taking care of your body, building a business, you know, money. No one accidentally gets wealthy. It just, Oh, what happened? No one does that. So that's a written plan. That's called a budget, you know? And so we got to have a budget. We got to live on less than we make. If you get out of debt mathematically, what it does is you have money to invest because when you have a$750 payment on your Ford F-150, you got no money.

3:06And so that money's going to Ford instead of to you. It's not going in your 401k. And so that's what the borrower is slave to the lender means. But also what happens when you get out of debt is you have this sense of freedom. You have this sense of autonomy, the sense of agency. You're not being controlled by the man, stinking Bank of America. It doesn't tell you what to do. Ford Motor Credit doesn't tell you what to do. So you don't have to keep a horrible job. You can move to a better job and take that risk. But if you got to pay payments, you don't feel free. And so, you know, being out of debt, living on less than you make, having a written plan, obviously saving and investing.

3:46Obviously. In the house of the wise or stores of choice food and oil, grandma said, have money saved for a rainy day. We start with an emergency fund and then we long-term invest. In the largest study a millionaire has ever done in North America, we did it here at Ramsey. we discovered that the typical way someone gets their first$1 to$5 million is they have a paid off house and they have a really healthy 401k or Roth IRA combo in good mutual funds. And so they'll be sitting there with a million dollars in their retirement accounts after 10, 12, 15 years of doing this. And they got a half million dollar or$700 ,000 paid for house.

4:21So they got a$1.7 billion dollar net worth and so this save money save money and the weird thing is that there's no uh all the get rich quick stuff on tick tock and all that it is all crypto and everything everything there's always some way there's a new version of stupid every year you know and uh but but why is that why go ahead go ahead why is that so enticing why do so many people jump into that with all their money or all their savings or take out debt just to invest in the 17 new things a year that seem like one or two people actually made a few million dollars but probably end up losing it a year later why is that such an enticing thing for people who work so hard at making their money well taking the long haul being the tortoise versus the hare is not human nature right our brains are wired by god for efficiency you know we we want to burn the least calories possible to get the job done whatever it is which in the financial world causes us to look at get rich quick and and we don't think of it as stupid i didn't think of it as stupid when i did it in the 80s and you know i i started with nothing had four million dollars worth of real estate lost everything because i i borrowed too much money on the real estate and crashed my own life down on my head i didn't think I was being foolish, foolhardy, impulsive.

5:46I thought I was burning the least calories to get to the goal. Yeah, you're being smart. I thought I thought this is the way to go and people that are buying crypto. That's what they think. I mean no one thinks they're gambling. They don't think oh this is has worse odds than a roulette wheel, which it actually did mathematically, you know, but but they didn't think that they thought this is the least calories to burn to get to the goal. So that's just the human brain doing what it's supposed to do. We're just efficiency experts all the time in everything we do.

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7:08Again, have an amazing day, and I'll see you tomorrow with another episode of the Daily Motivation Show.