Dave Ramsey Explains "The Secrets Of The Rich"

chanson Colorado my wife and I paid off our mortgage we have been maxing out retirement accounts for years saving diligently on our children 529 sword millionaires every day at 31 or 41 and 38 way to go not sure where to go from here in the small Step 7 We are enjoying ourselves but we are not sure how else to invest for the future. Well, Shawn, the general rule of thumb is that it's almost like we're talking to that last couple. They said that somehow, among some newly

rich

people, there is a spirit, this idea in the air. somehow generating wealth must be complicated you must have some of the

secrets

of the

rich

well let me tell you what the

secrets

of the rich are they are not a secret they do what you have been doing they invest in things they understand if you don't understand it don't put money into it don't put money into something because it sounds cool and some guy you think is cool tells you to do it or has done it himself that's how people waste their money on A Bernie Madoff a friend recommended them to do something interesting there was an inside deal that no one knew it was a secret he was sophisticated and no one knows and that's how the rich do it it's all behind the curtain it's just not that I was with a guy the other day who's worth about 200 million of dollars and you already know how he has invested his money in agricultural land, he is a rancher, that's what he knows.

I said you have no money, new mutual funds. I don't like that stuff I don't understand it don't put money right that's not sophisticated Dave sent a guy who has a tenth of the net worth or a quarter net worth or one one Julian the net worth that guy has is I have 200 million dollars what you have an opinion put money and things that you understand and are comfortable with if that's all you do you'll be fine as far as the investment side of things goes. I have three investments, that's all I have and I have quite a bit of knowledge about the world of investments.

I have three. My business pays for real estate without mortgages or mutual funds. I don't play with individual stocks. I don't play with gold. I don't play Bitcoin and I don't need stock advice from your broke golf buddy with an opinion, you know you missed out on new steel wheels, you didn't miss anything. I'll put my net worth next to yours while you're talking, you didn't miss anything. You didn't try either, so this is not the time to get cool, cool, it didn't get you here, cool, it won't get you there and you know, don't try to follow these cool fools because I have to.

I'm telling you, man, this shit. I see these things coming to the seminar and learning how to make a fan. You know, a limited family partnership with a double backflip trust and you know I just made that up but it seems like it's shit like that and people get all caught up in things and lose their asses don't do it don't do it like that which is very simple Shawn invest in things you understand it's okay to use the KISS principle I use the simple and stupid principle I keep mine very simple, very clean and if I don't have the money I can't buy it.

Wow, it's revealing, it's primitive, how does he manage that with hundreds of millions of dollars of net worth? That's how I fight so seriously. Keep calm now, when you get to the little step seven, what you need to make sure you do continuously and systematically is keep your spiritual life in balance because maybe step seven is where wealth can take over your spiritual life and you can put a idol in your life and you can start worshiping dollars instead of God and that is a silly idea, it is a good way to lose your money because God will accept it because He loves you so much that He doesn't want you to worship the wrong person. things so how do you keep a good balance between three things when you're on little step 7? you're always investing you're always being outrageously generous and I mean outrageously generous you're on small step 7 you need to be giving away more money than you used to make in a year, outrageously generous and you need to enjoy some of the money, time to take mom on a cruise , stingy time to buy a decent car that you've driven like no one else, now it's time to drive like no one else.

I drove shitty cars, one can, one, the predominant color was Bondo and now you know what I drive. Whatever damn thing I want, that's what I drive now and if some of you don't, liberals don't. Well, Tuffy, I'll do it anyway. I'm a capitalist pig and I'm proud of it, that's how it works guys, and I give more in a month than I used to make in two years, but that's not yours. business the only reason I tell you that is because it is a model for you to say outrageous generosity our Marco Z Family Foundation is outrageously generous it is so generous that it has a full-time person running it named Denise Whittemore my daughter needs a full-time person complete to continue with generosity think about it that's where you can reach people that's where I want you to get you can live like no one else so that later you can live and give like no one else and then when you go buy a car it's a small percentage of your world you are people call me in their car it's 60% of their net worth and one hundred percent of their net worth you will never get rich doing that your car needs to be a small percentage of your world their net worth and a small percentage of their net worth , the last couple who earns seven or 50,000 dollars can afford to drive very, very expensive cars and lose the value of them and still get ahead financially, but if they earn seventy-five thousand dollars a year, they cannot drive the same car and be broke, you can afford a BMW, anything in the entire BMW line, make that amount of new money, write a check and you won't bankrupt that family because they make very good money.

You have a net worth of three million dollars, but if you're sitting there with two nickels to rub, don't go down and fleece some stupid Beemer who's dumber than a rock, you're acting like something you're not, so you just work. In this process, always give, always enjoy a percentage of your money and always invest a percentage of your money, but when I tell people what to do once you get to this point is to assign percentages, like I just said , basically I'm an angelic caveman Christian and I get taxed at 40% and then I give 10%, so that's 50%.

I give 10% only to my local church, that's my tithe, okay, so I only have 50 cents on the dollar after those two things to work with. Of those 50 cents I assign a small percentage to consumption and enjoyment and then the rest: two large portions, one to investment and a percentage, and I will give you my percentages because they don't matter, you make up for them. Yours is fine, but you take out the 50% that is left over, you put in, you know, a small percentage, it doesn't take much because you earn good money, you have good money to enjoy, take a good cruise, take that trip, your list of trips you always wanted to buy that car you always wanted to buy pay for your mom's house I don't know what you want to do at that moment you take the generosity pieces a big part and the investment piece is a big part we cover all of this in the Christian book I made called The Legacy Journey.

It's the only book I've ever done that was aimed exclusively at the Christian market. The only way I know how to talk about wealth and not have it become toxic is. through the lens of my faith, so pick up the legacy journey or take the class, if you're a member of the financial peace membership, you're in the classes included there, go on the legacy journey and see a little bit of this from what I'm talking about and You don't need a double backflip family limited company. This is Dave Ramsey's show.