Dave Ramsey: You Only Need To Know These 5 Rules

how many of you grew up like i did not rich now i'm not theologically or philosophically shallow enough to tell you money will make you happy money will not make you happy you get more money it will make you more of what you are right now if you are miserable and you get money you will be lots of miserable if you're a jerk and you get money big jerk and it'll mess with your family too so money is not going to solve your problems it's going to make them bigger it's also going to make your

opportunities bigger if you're a generous person your generosity will go into overdrive you'll be outrageously generous and you get a lot of money we'll call you a philanthropist cool word that means you give a lot of it away and you have a blast doing it you found the most fun you'll ever have with money when you find that so we live in a cause and effect world what you plant you will harvest you will reap what you sow right so if you plant stupid you will get a crop of desperate i've done it and you

know if you plant corn don't be looking for beans to come up don't be shocked by because what you put into your life is what you're going to get out so we've found that there's five things that if you do these five things with money over a period of time like 10 or 15 years you will build a level of wealth 100 of the time and now i said a level of wealth i don't know what level because i can't predict car wrecks and cancer i can't predict tragedy and i don't know what your income

will be but if you're working and you do these five things you will build a level of wealth 100 of the time and this is not some prosperity thing and it's not mystical or magical when i cover these five things they're all common sense but common sense is so rare now it's like having a superpower so let's look at the five the first one is get on a budget a written plan you have to do a budget on paper on purpose before the month begins every month if you work for a company called you incorporated

and you manage money for you incorporated the way you manage money for you now would you fire you don't answer that we misbehave with money and so we're disorganized we don't have a plan nothing's written down decide the interesting thing about each one of these principles is you can just decide today to do them i had a guy working for me and he was not doing his process right and i sat down i said this is what you need to do and he goes well that's not the way i do it and i said change

and he said well i'm not like you and i said change you can decide today to be good at this or leave you can decide you can decide to do a budget today get out of yellowpad or go free budget online everydollar.com you can decide today i'm going to start managing money well today because you're going to keep getting what you've been getting if you keep doing what you've been doing you know this right sewing and reaping and the second one is you need to get out of debt now we know this one you knew

dave ramsey was going to talk about getting out of debt because you know the bible says the borrower is slave to the lender it's real now here's the deal think about this your most powerful wealth building tool is your income let me show you what slavery looks like this week they came out with new data that shows that the average car payment in america today according to the national auto dealers association is 499 that's dangerously close to 500. you take 500 bucks a month and invest it from age 30 to age 70 in a decent

growth stock mutual fund you'll have 5.6 million dollars that's what a car payment costs you so who'd you make rich general motors ford lexus i don't know toyota who was it you made somebody rich it wasn't you and you're driving along and something you can't afford scratching your head and wondering why your kid's college fund isn't funded because we're giving it all to somebody else and they have nicer furniture in their building have you noticed something's going on here guys you know and some people in here got a student loan's been around so long you

think it's a pet you got master card in your life i mean it's hard to be a slave if you don't have a master so you might as well we've discovered bondage in american distress it just keeps going and going and i've done it too y'all i'm not picking on anybody i'm just saying here's the deal think about this what if you had no payments can't even get my head around that well you're always going to have a car payment you know i hear people say that little man can't get ahead you're always gonna have

a car payment so drive something nice yolo right which by the way is addressed in proverbs it says fool right after that see these are how we talk when we're losing you know you can get ahead i sure hope we can elect the president it will fix my life not gonna happen neither one of them got the goods i'll just tell you you're in charge of your life it's the only one that's gonna work and that's what changes so how do you get out of debt well you have to decide to not borrow any more

that's the first step isn't it we had plastic surgery at our house had a plasectomy decided we're not borrowing money anymore mastercard capital one what's in your wallet money [Applause] you're weird dave you're right and i'm not broke anymore either i decided i'm not living like this i hadn't had a credit card in 30 years you don't have a credit card i don't have a credit card that's my wallet it's got green president's faces and it's got four pieces of plastic in here two debit cards one on my business one on my personal account which

will do everything your stupid credit card will do i travel more than any two of you put together shut up it works okay dave you're looking airline miles yeah i've met a lot of millionaires and none of them said dave you know i made it all on my airline miles i hadn't heard that one so so i got my driver's license and my handgun carry permit the third thing once you're out of debt then you need to be careful to foster high quality relationships what's that got to do with money everything there's a huge correlation

for those that build wealth and who they hang around with because you become who you hang around with have you noticed that you don't let your kids hang around with little juvenile delinquents right if a little johnny down the street's a weed head you don't let your kid run with little johnny cause you know you're gonna have a weed head in your house right we know this so they come home with that mouth on them and you're going where'd you learn that i'll get you knocked in the next week in this house where'd you think

you could get away with that i'll take you out and make another one looks just like you you know i mean you know it's cause they're hanging out with little johnny right you know what happens we're the same way y'all we're the same way you talk like the people you hang around with you read the books they talk about if you don't read and all your friends watch the bachelor well here's a clue okay here's what's going on if this is all you know about is reality tv that's not a reality probably we need to

change our diet you know read a book and so charlie tremendous jones said five years from today you'll be the same person you are today except for the books you read the people you meet don't be deceived evil company corrupts good habits and you know this the studies have shown that over a 10-year period of time that your income will approximate will become within 10 to 20 percent of the average of your 10 closest friend's income because you have the same habits they've got you have the same diet into your self that they've got you'll

have it you can't stop yourself from doing it you will become who you hang around with and all the studies show that we have a tendency now that's not to say i'm some kind of snob and i don't have any friends that aren't rich friends not that at all i have lots of friends but my closest hangs are people i want to be like that's my closest ones now i'll talk to anybody but like when our daughters were growing up they're grown and married to wonderful men now but you know they're in high school and

they're wanting to go on a date we didn't do missionary dating you don't get to date little johnny the weed head and lead him to jesus that's not gonna work okay we're not doing this little johnny can go to camp and get saved again you know we'll work on this right and so uh no you come up to our house to pick up one of our daughters honk your horn you better be delivering a pizza all right so coming in talking to the old man you know i'll be cleaning my gun when you get home

you know the song right and so uh i mean this this kind of thing and i'm teaching them dad all the boys and the youth group are scared of you good keeps away two things you don't want baby doll you don't want jerks and you don't want wusses and if i can keep both those away and then i can teach you how to keep them away you can pick good and guess what they both picked good they both picked good they buried studs man i got some son-in-law unbelievable man my sons-in-law are awesome and it

wasn't an accident you see what i'm saying y'all you need to make these choices very very carefully the fourth thing is you need to save and invest in the house of the wise are stores of choice food and oil wise people save money that's what this means and so it was used in the marketplace like we used green presidents faces as a medium of exchange if you had a carafe of oil you were ready to do business it was a sign of wealth there were two classes of people poor people and rich people most of

the people were poor people this is the mediterranean we're talking they ate hummus and olives no meat a little bit of bread maybe maybe a fish if they got some meat but that was it rich people ate what we eat every day spices good meat charleston food scene you know what i'm saying right cooking it up right that's fine food stores of choice food and oil choice food and oil are symbols of wealth so let's read that again in the house of the wise are stores of money by the way the rest of that one

says and a foolish man devours all he has if you spend everything you make the bible just called you a fool again i've been a fool call me a fool too and i decided to change wise people save money why well start with we say for an emergency right grandma said it she said save for a rainy day it's gonna rain you're gonna have a car wreck you'll lose your job something's gonna happen you're gonna need some money dave you need to be positive i'm positive it's gonna rain something's gonna come up this one i

don't understand unexpected pregnancy say what okay but people come up with all kinds of things that are emergencies right something's gonna happen and then you need to save and invest so you retire with dignity you know i'm gonna spend everything i make and hope the government which is well known for its ability to handle money will take care of me dumb idea i'm not even sure some of them have opposable thumbs up there you know what i'm saying it's just ridiculous and we're counting on them in some wacked out kind of way to come be

they're not coming there is no white horse there is no calvary you're it okay you are in charge of your destiny and that's great news and so all worried about the election and i'm not worried about the election because i made money under both parties turns out it wasn't up to them in either case i've lost money under both parties none of them sent me a check they all just want money they're extracting like a tick extracting blood all the time that's all they do this is the deal the last one is all about generosity

but this is all about cheerfulness generosity is not just a transfer of funds generosity is a spirit where you decide to be a generous person generous people are more attractive they smile they're not grouchy it's not all about them they're the ones that open the door they're the ones when the grocery bag has the bottom drop out and your groceries are rolling all over the parking lot they're the ones out there helping you pick it up these are the people that when they go out to eat they leave a tip you cheap ridiculous well us

i'm not one i leave big tips because it's a form of generosity well they didn't give me good service oh shut up they're carrying a tray that weighs more than you figure it out they parked your car in the rain and in the heat shut up give them some money they park your 130 000 car and you give them three dollars what are you a nut that's ferris bueller park in the car there you take care of that man i give him a 20 bill my car's still sitting there when i come out it's amazing

sounds like that guy's working his way through college or something right there and if he says better than i deserve that's his code for i'm getting out of debt if they say that you got to give him a double tip so i give him 40. my wife's like i'm gonna park your car and no you're not you're not working your way out of college you've already put up with me for 30 years so it's all right generosity is a spirit it changes everything in your life but it's awful tough to give if you're broke if

you're in debt and you haven't saved any money and you don't have a plan and you're not hanging out with other people who are givers and so change you get to decide today it'll change your life it'll change your family tree you will change everyone with your last name that follows you if you do these things it's that powerful it's unbelievable the sorrows are deeper and the joys are higher it changes everything and when you move this money piece around it gives you the tools to be that in the marketplace and to be that for

your family and to get this monkey off your back and to get that elephant out of the room because he's got to go