The Secret to NOT Being BROKE! - Dave Ramsey Rant

your income doesn't matter your age it doesn't matter your race it doesn't matter your geographic location it doesn't matter there's something you and I are dealing with with your money and it's called math and none of those things I just mentioned I give you a pass on math and where people get in trouble, including one I wanted out of business many years ago because I was stupid, we get in trouble when we don't bother and do the math before making the transaction, we are the stupid ones. A woman from San Diego who rented her dog for fifty thousand four hundred dollars makes ninety thousand dollars a year and somehow in our brain we realize that our children deserve a fifty thousand dollar Honda SUV and now we have to take the kids out. private school kids because we can't afford the SUV and private school payments because we didn't do math we're 21 years old we bought a $10,000 car we racked up ten thousand dollars in credit card debt and we have ten thousand dollars in medical bills and earn thirty thousand dollars a year when you make thirty thousand dollars a year there's nowhere in that plan where thirty thousand the ten thousand dollar car makes sense there's nowhere in that plan where racking up a bunch of credit card debt credit gives you room to breathe I can't breathe anymore we have three children we earn twenty-eight thousand dollars a year if I go back to work the woman asks for an income of twenty-eight thousand dollars with three children our medical care is provided by Medicaid, which is social assistance because we qualify yes Yes We go back to work, we won't qualify for that and if we go back to work, if I go back to work, I'll have to pay for daycare and I'm not sure it's going to cover the expenses, at least she was doing math. from the beginning and thinking before making the decision and of course her answer to our equation is that both she and her husband need to develop some type of long-term career and a short-term series of part-time jobs and jobs additional. and small business ideas that create an income that at least doubles the bad news is that you only make $28,000 a year the good news is that with a little ingenuity you can easily double your household income and then you don't worry about be about the Dole government and you have a long term game plan to get out, it's not just about her returning to work, that's a limited view of that situation.

I actually didn't answer her question correctly when she called, what does everything do? This is what each of these things has in common: Adults design a plan and follow it. Children do what makes them feel good. Stephen Covey in the book The 7 Habits of Highly Effective People says that the number one habit of highly effective people is their proactivity. Two things, one of the other habits is that you start with the end in mind, so when bankrupt people say I can afford this, you know what they say, I think I could afford the payments, that's what people in bankruptcy means when he says that.

If you don't want to be

broke

people anymore, get out of the land of payments If you don't want to be

broke

people anymore, you sit back and say hey, this is what we do, this is the size of our mess, what are we? we're going to do to increase our income and decrease our expenses so we can tackle the mess faster, it really is sixth or fourth grade math, it really is, but you have to be in front of it instead of running after it all the time. The time to face it is to look at your situation before making a decision, not after you have made the decision.

A 44k SUV when you make $85,000 a year is stupid whether you paid cash or not it's still stupid but when you finance that it's double triple stupid but you felt good when you bought it and mom will be mad at Dave Ramsey because her husband called the show and said you're stupid and mom loves that car, I'll just tell you how many times has that story been repeated in the last 25 years? I'm a bad word and some of their houses are fine. Everyone must have a gift. I have it. I'm fine, but we have to start with him.

In closing, in mind, it's called

being

an adult, you have to look at the situation and say there is no possible way for a sane individual to make that decision, but the thing is, we're not saying when we're going to make half the decisions. because we are operating at the level of a four-year-old, which means we are driven. I'm tired and it's good to eat, he has to eat, we have to go out to eat because I'm tired, I work hard. I'll call the ambulance, we all work hard. I'm sorry, if you had followed me for the last six days, you would be in the hospital.

Some of you work hard when we're poor because let me tell you what. Going out to eat looks like you're 26 years old, you make thirty thousand dollars a year, you're 21 years old, you make thirty thousand dollars a year, and you have ten thousand dollars in credit card debt because you go in and out of restau

rant

s in and out of restau

rant

s. a vacation you can't afford go to the pet store and buy something you can't afford go through the lens some of you go to walmart for entertainment give me a break i might be a redneck if walmart is your entertainment and no wonder you get into debt, it's no wonder you can't breathe, it's no wonder you have payments coming out of dad's ears and no one gets into debt.

Ten people hear that they earn $30,000. a year they are 21 years old they don't go into debt $10,000 in a single purchase they don't run they don't use their credit card and buy one thing for $10,000 no, it's $1,050 things their death by a thousand cuts and then you look up and say oh my God, what we have done? What have we done? How stupid are we now? I'm on your team. I did too, but I'm just telling you a lot of things that happened in this hour. this show is something that is incredibly preventable, you just look at it and say, no we're not going to take our dog, in fact we're not going to fund our dog and we sure suck, not to fund a cat, You know it's not. passing dot dot, no we're not buying this car, honey, I know you want a good car, honey, you know what we're broke, broke people don't buy $45,000 Honda SUVs, we're broke and you know how HE.

We are ruined because we are going to have money. That's how I know we're broke when we make a lot of money, yeah, but it's all over. Haven't you realized that we don't have money, we don't have money, what? money no, we're not going to eat why are we broke one of the money you're not in fucking Congress you can't just print it in the basement you have to live on less than what you earn and you have to have a plan and you have to be intentional. I know people who make $30,000 a year and save money.

I mean, people who make $130,000 a year couldn't save money if they had to, it has nothing to do with income, it has to do with you. Controlling the damn person in your mirror is you who decides I'm going to be an adult I'm going to be an adult and that is, if you're 52, you're 22 or 12 adults, come up with a plan and follow it, kids. Do what feels good to you. Everyone is worried about it. Guys' feelings these days. I don't care about your feelings. I'll make a living hurting your feelings. I don't give a shit about your feelings.

Let me tell you what makes you feel good. not having any payments so what does it feel good to have a lot of money in the bank what does it feel good to be rich enough to take your eyes off you and not be so bad blame the self centered and be really generous or is there some space, some margin in your budget and you can give money to another person who is suffering, that feels good, but no, we live off the junk food of finances and financially we have an obese culture, let's lose our minds, then you guys have to be weird , normal is. rokh The Wall Street Journal says 70% of Americans live paycheck to paycheck, that's seven out of ten houses on your street and I don't care what street you live on, seven out of ten houses, look at all those 10 houses in your mind seven of those people are broke oh they look good but they get rich they're not rich that's what they call in Texas big hat no cattle don't live like that it's time to be weird those of you who want a weird beat that 101 with money you have to do weird things because normal is broken and if you do normal things you will have normal results, it's time to stop it, this is the Dave Ramsey show Hey guys, thanks for watching, if you enjoyed this video click subscribe. to get the latest content and check out these other great clips from the show