The Fastest Way to Become a Millionaire (with Dave Ramsey)

Hey guys, welcome to this episode of the Rachel Cruz show. Well, we've been talking about baby steps and we're towards the end, so I thought I'd bring in the man who came up with them. Dave Ramsey again, welcome back, thank you very much, glad you're here. Well, we've been talking again about baby steps and how this is the proven plan to help you not only take control of his money, not just get out of his debt. but ultimately, to build wealth and your new book Baby Steps Millionaires is out, it came out yesterday, yeah, congratulations, thank you very much and this really explains the wealth building aspect of the Baby Steps, which is where we are now in our series. in the program, so it's small steps four through seven, so small step four funds 15 of your income and all the way to retirement.

Small step five is to fund the kids' college. Little step six pays off the house early and little step seven builds wealth and is extremely generous. So I love that this is like the exclamation point at the end because up to this point in the baby steps, every step one, two, and three, you're working to save money in your emergency funds, you're getting out of debt. everything is fine, so you are focused on that, now you do these steps all together, except for the little step seven, and when you look at this plan in general, what made you come up with it?

How did you get there? Well, these are the baby steps because I feel like a lot of people in the financial space have changed their strategy throughout their career and this is tried and true to the point that I should even tell you that I even tried to change. One small step years ago during one of my book writing processes and I thought, can we change the first step where they save the most money and you said no, no, we're not going to change the small steps that I did. I asked to change the sweaty steps. but you haven't quit, so talk about the process of creating those and why they still work even today.

The beautiful thing is that these days we are meeting, I mean, almost 10 million people who have gone through financial peace. university and eight and a half million books sold in total on money makeover that I know, I've known tens of thousands of

millionaire

s because they followed this, yeah, like tens of thousands, it's not two or something, I mean, just I run into them everywhere I go, honey, and they're little

millionaire

steps. That's why we ended up making this book because we want to make sure everyone understands because that's how it all started. I didn't start out as that guy's exit.

I started out as the "I want to be rich" guy. and I want to show other people how to be rich and then I found out that the quickest way to do it was to get their money back instead of giving it to other people and so on, instead of paying everyone in payments like one man was talking to the other . The day goes by, we got rid of all our payments and our payments were one thousand four hundred and eighty-two dollars a month. He says if I invest 482 dollars instead of giving it to Toyota Motor Credit and Mastercard and Chase and whoever but Sally, then I'll be rich, well that's how it all started, so little steps one to three were how to

become

an investor and

become

an investor, you get rich and everyone wants to jump in and start being an investor.

That's why we included it in this and you can't be an investor when you have money, so the first step is a thousand dollars in the bank, the second is getting out of debt because that gives you back all your money, your most powerful wealth. building tool, which is your income, then you create an emergency fund to prevent little things from coming up, uh, little emergencies that throw you off your investment plan, but it's all about establishing little step four, the investment plan, and five is a subcategory of investing for children. plan for college, yeah, and they also pay for the house, which then speeds it up again because I don't have a house payment, you just invest the house payment, you'll be so rich and amazing, right?

Why and then four five and six are intentional long distance marathons one to three are gazelle intensity, get it out quickly, quick sprints and then you go from that and four five and six are simultaneous like you said so here's the average family income in america 60,000 dollars, you invest 15 of that from the age of 30 to 65 you will have five to ten million dollars in your career roth ira and if I'm wrong 10 times you're still a fucking millionaire, you know? what makes you rich is what it means but it's stability and a substantial amount of money being invested that you can't do when you're in debt yeah so I know most people watching are on the second step, yes. a lot of people, most people in America are on step two, yes, you get in, you have to get out of that stage, but the reason we keep mentioning step four is that's why you're doing it, that's why you're clipping coupons, why. you're not going out to eat why don't you go on vacation that's why your gazelle is intense so you can get here yes and you can listen so you can build wealth so you can change your family tree and you can be outrageously generous, but here it is what the math on this is for sure, I mean it's not even a question of whether you're going to be there or not if you go all the way, so that would be my question is that for many people and even just talking to them, even here on the show, sometimes you can hear things like, "I don't know if we'll ever get there, God, we're still in so much debt, I have no idea." From being a millionaire I feel that today I can feel that it is simply not me, what would you say to that person?

Yes, this is the question if you start the second step with great gazelle intensity and deep sacrifice and you go crazy. to get out of debt and your only reason to get out of debt is to get out of debt, you'll probably run out of gas, that's a good goal, but it's probably not a big and noble enough goal to make you go through the sacrifice. . You're going to spend the 18 to 30 months it takes to eliminate every debt in your life. It's difficult and for me I had to have a bigger carrot than just being free.

I wanted the carrot of what I want. to be rich so I can do some things for myself and mine and to be able to be incredibly generous so I can be stable and I've controlled the controllables and it's not going to be rich because I want to be an idiot because it's not that it's not just about me here, I want the things that wealth will do and getting out of debt is just one of the ways I get there, yes it is the best way to get there and that will give you the power if you really start to believe that if you are going to Go, I don't really care if I rescue your wealth or not, you're probably not going to get out of debt because it's too difficult mm-hmm, you have to have something big that attracts you. through the hardships, you know, and so you will, but the people who go, I'm getting out of debt because I'm going to change my family tree, I'm getting out of debt so that I'll never, ever be here again and so on. .

I can create this wealth and I can do that because if I had a million dollars, this is what I could do and if I had 10 million dollars, I could do 10 more of those things and you know it's exciting, it gives you a boost and that's The thing and that's what people really need to understand is that it's not that money is important, it's what money does, yes it is important, we talk about that a lot here, where money is a tool, right? It helps you create a life that Love is helping other people and it is this tool in your life that helps, but when it is the thing that is sucking all the energy out of you and it is controlling you and it is exhausting, it is working incorrectly and so that idea of ​​being debt free, no one tells you what to do, you actually have the power to do things and then you have the money to go invest, so, I mean, anyone can do this, but again it's sitting in this sofa right here. talking about it, you know right now we're not doing the nitty-gritty of it, so people say no, but I have obstacles, there are things I see, there are people you talk to every day on the radio, etc. .

What are those obstacles that you see people might face when it comes to building wealth? How Ordinary People Built Extraordinary Wealth and How You Can Do It is the subtitle and I have met people of all races, all sexes, all national origins, all areas. of the country virtually all professions all income levels all income levels who have become millionaires A few years ago we did this huge massive survey of millionaires and we found out that 97 of the millionaires, they are all fine, three percent didn't understand the question, I mean You know, 97 of the millionaires said that they control their own destiny and believing that they could do it was everything and I and I believe that Americans can still do this.

That's what they said when we surveyed the general public. 69 said they believed it could be done. and then what is the difference? Well, the millionaire has done it so you know it can be done number one, but number two, the point is that belief is everything and that is the problem with barking dogs in our culture, yes, yes, yes, Yes you can. Don't do it anymore, you can't do it anymore, the broken Americans of America are screwed, there is racism, yes, there is sexism, yes, there is regionalism, yes, there is division within politics, yes, there is, it's disgusting, the people are not nice, people are not.

Well, it's bad, okay, do it anyway because people just like you, despite all that, are the same color as you, the same age as the same professional field you're in, have done it, but They believed they could, yes, and that is the problem with these barking dogs is that they are making people lose hope, they make them believe that they can't do it and I get very angry with these people in politics and with these movements that They steal people's hope and say it is possible. I don't do it anymore and people are doing well. I can't do it anymore.

The only way to get rich is by inheritance, which is statistically absurd, yeah, yeah, but that piece of hope, I mean, I'm not kidding, I'm like that mm-hmm, it's the biggest obstacle for you guys, and listen that, take that for a second because I think we all have good days, we have bad days, but if you start to find yourself in this constant state of mind of thinking I can't or I never will. happens, it will never happen, it will never happen, it probably won't happen, so if that's what you really believe and therefore changing that mindset is then how can people do that well if they are in a situation in their life where the one that my God, everything is against me, there is no way that the people around you have a plan like what are the things that you would say to help put them on a better path.

Yes, I think you don't have to have contributions because your contribution is you. meet trash and trash and your input is your closest people around you and if everyone is negative, if all your friends say little moon can't get a hoodie, then that becomes a reality, you are a little bit of a man. The man couldn't get ahead, a good good neighborhood and I'm such a fool. I have been a millionaire twice in this system. I had to do it twice to be proof that the little man can get ahead. I grew up in antioch damn tennessee okay shut up call the ambulance seriously I'm serious and then I went broke which proved I was an idiot so you know so I had to do it again ya you know, and then I had double doses of negatives around me, so you have but you have to surround yourself with people who say: yes, this can be done and no, it's not going to be easy, but yes, you have what it takes and you know which a great way to do it is fantastic books, read wonderful books by people I've done it, I mean there's a lot of really great stories from people, I mean the guy who started Domino's Pizza when he came back from the war ended up in a shelter for homeless people and became one of the richest people in America. sports teams started domino's pizza came out of a homeless shelter and tell me it can't be done I mean there's story after story after story after story after they're everywhere so give them as your input I mean to read about people like colin powell and condoleezza rice and i read about these people who came from backgrounds that weren't privileged and they overcame the obstacles, the isms because they're there, sure, you just have to defeat them, yeah, you just have to do it, that's not okay, people like me, I mean, me. m I'm so and so I can't do it why who is that someone like you did it so you have to find those people get it so you have friends around you because you will become the person you hang out with.

Be careful, if you're with Debbie Downer, you're also going to be Debbie Downer. I mean, there's no way around it, so you should limit your time with negative NEETs. Yeah, I mean, and you have to read and get input. find real stories of people like you who did it and put them on the wall of your mind and it becomesturns into your contributions and it's not fake, it's not positive to think that this is something that really happens, yes, it's reality, yes, no, which I think is great, so what would you say to someone who says: well, I'm in a certain profession, you've touched on this several times, but I want people to know the different professions that have made me millionaires, like for example? professionals that you wouldn't think, oh, that's a type of profession that will make me a millionaire, but because of the decisions they made with their income, they did.

This is what's so interesting, how powerful belief is okay, so the survey that made 10 billion the largest research ever done on millionaires in North America said that the number one profession among all the millionaires we surveyed was engineer number two was accountant number three was teacher number four was manager number five is lawyer doctor and banker didn't even make the top five, okay, and neither did the NFL, the NBA, professional sports or rock stars. Now there are many of those millionaires, but they are tiny percentages of the number of millionaires there are, the typical millionaires of an engineer's account. and the teacher who is the typical millionaire now I put it on Instagram, of course, okay, so here is what is data, in other words, that is what is called a fact, it is not in doubt and it is like, and then I get all these teachers emailing me. negative fools and say they are just criticizing us in the comments.

Well, you don't know anything about being a teacher and you don't know anything about this and I'm like no, I just know number three. That is exactly what emerged from the survey. I don't know anything about the law of gravity, but I do know that every time you jump off a building you will hit the sidewalk. I mean, it's a fact. This is not like this. It was not so. we were having a conversation it wasn't a dispute it wasn't it wasn't like do you think you can? he was stating a fact but his belief was so negative mm-hmm I said you know you know teachers don't make money your teacher you don't make money teachers don't make money and yet a cop married to a teacher everywhere in research it's interesting everywhere they end up being millionaires, but well, you can't, you don't know, you go into that field you're not going to get there, it's like they're both process-driven people, engineers are process-driven people, become in millionaire is a process that we find associated with it, yes, absolutely, and I think, again, people take dollar amounts very frequently. and let's say, well, it's a certain amount of dollar salary or this or that, then you automatically make assumptions at this point, it's going to take a longer mathematical scale with a smaller entitlement at all, but only because someone makes a million dollars. a year does not make them rich.

You could be spending a million, yes, 1.2 million and living below your means, so again, guys, it's not the dollar amount, but what you do with it that's so big. A third of millionaires earned less than a hundred thousand and never earned. six figures in your life, a third of them, yeah, that's hard to do, that's mathematically hard, yeah, honestly, I was surprised by that, yeah, I thought we were going to see that 100 to 200 was typical, which is , I mean, it's two-thirds of them. more than a hundred, sure, 100 or 200. but the number of them that earn 500 600 700 almost none is crazy, it's almost finished, I love it, okay, so part of being a millionaire and doing all this earning with money is not It's not just for you, as we said before, but it really is for other people and there are some interesting stories here about the outrageous generosity of people who are able to do, which is a big part of this, you guys, a big part of the one we talked about.

I feel like I'm here on the show. a lot, but that generosity piece, the giving piece, it's very stereotypical to say, but it's something that money can't buy, like there's something to it about what you do and how you change other people's lives and it changes you. to you. So what are some of those are one of those points, I mean, because you always go back to where you came from, I mean, I always want to help people like I was, you know, I want to get to that guy, that little country boy. Southern and crazy, you know I want to get there. to him and make him believe that he can win because someone did that for me, right, someone put some new information in my head when I was that little guy, you know, and that made me stop being that little guy eventually, yeah, right, and I'm so African American.

Lady Jackie is a single mother and you know it's one of our stories in many stories in the book of real people who did this and she can't help now, remember being on welfare, remember the kids didn't have enough money to eat. You know she remembers, uh, you know the shortages and the problems and the stress, and you know how Jackie is always going to help these single mothers. Yeah, I mean, she has a heart because she was one and she's also the poster girl that says "you." I can do this so she can give them hope more than I can because I haven't exactly been there.

I've been here and I can and I can show you data and I can show you what my story is, how I did it. but I haven't exactly been there in that nuance and that's why you always want to go, you always end up when you're going to be generous in some way, you always have a heart for where you come from, which I love, I love that. Alright guys, the book is out now and I'm very excited about it, very excited, small millionaire steps and again, hopefully, and my prayer with this book is that it brings that hope that it's possible, it's possible with money anywhere. that they are and you can buy the book anywhere books are sold and thank you for being there, thank you, I appreciate you coming back again and again.

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ramsey

solutions.com again if you want to purchase the book or a reminder of the small steps and follow this process for yourself too. become a millionaire in small steps