📈 Are you on track with the Baby Steps? Get a Free Personalized Plan 📱Watch the full episode for free in the Ramsey Network app. Dave Ramsey & Jade Warshaw answer your questions and discuss: "My terminally ill wife hid debt from me," "Is $42k a year enough income to build wealth?" "Should I buy a $1M house in cash?" "We overbought on a house; what do we do?" "Getting out of a car I'm $5K upside down on" Dave and Jade interview millionaires to find out how they built their wealth. Support Our Sponsors: 🌱 Get 10% off your first month of BetterHelp 🏥 Learn more about Christian Healthcare Ministries 🏡 Get started today with Churchill Mortgage 🔒 Get 20% off when you join DeleteMe 🏦 Go to FAIRWINDS Credit Union for an exclusive account bundle! 🥗 Save 15% on your first Field of Greens order with code RAMSEY 💤 Visit Helix Sleep for special offers! 💻 Visit NetSuite today to learn more 🗂️ Use promo code RAMSEY for 18% off at The Nokbox 🏛 Get started with YRefy or call 844-2-RAMSEY 🔐 Visit Zander Insurance for your free instant quote today! Next Steps 📞 Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET or click here! 🩺 Find the Right Health Coverage During Open Enrollment 💵 Start your free budget today. Download the EveryDollar app! 🎄 You could win $5,000 in the Ramsey Christmas Cash Giveaway! Enter today. 🎁 50 days of Christmas deals are here! Get 30% off meaningful gifts. 🎟️ See Dave and John LIVE in a city near you! Listen to more from Ramsey Network 🎙️ The Ramsey Show 🧠 The Dr. John Delony Show 🍸 Smart Money Happy Hour 💡 The Rachel Cruze Show 💸 The Ramsey Show Highlights 💰 George Kamel 💼 The Ken Coleman Show 📈 EntreLeadership Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices
Chapter 1: What should I do if my spouse hid debt from me?
Oh, my.
That I didn't know that she had pre-getting married five years ago. Wow.
I'm so sorry. So what is her illness?
She has cirrhosis of the liver, and it's not working, and she doesn't qualify for it.
transplant and then it's starting to affect her other organs and she's kind of going into full shutdown so you've been married five years yes sir i'm so sorry how old is she she's 44. oh my goodness how old are you I'm 52. Okay. Oh, man. Okay. And you opened this with she's hidden debt from you during the five years that you were married. So she ran up debt in her name?
She ran up debt in her name pre-targeting married back when she was in college. This is the second marriage for both of us. Mm-hmm.
i had one daughter with her technically a stepdaughter but i consider her my daughter totally and uh was saving money for her to go to college and we were i thought we were anyway debt free except for our house so the debt the debt was rung up before you guys married got married you just didn't know about it i did not know about it and how much debt uh
Her parents said she ran up $50,000, but I've only received a bill for $15,000. And it's on what kind of debt? Student loan debt.
Federally insured?
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Chapter 2: Is $42,000 a year enough income to build wealth?
And if you do that and start investing a portion of your income into a good Roth IRA, you could have a serious amount of money at retirement and not have a substantial change in income.
That's right.
If you stayed this track exact.
Yeah, you're just committing to a more modest lifestyle at the end of the day. And there's nothing wrong with that. That's your value that you get to choose.
Yeah, don't call me. You can't call me and say, I was forced to buy a new car.
Right.
You can't call me and say, I was so tired and fatigued from ministry that I took a year off and went to Europe. You can't call me and do that. No, you don't have these options. You don't have the money to do that. So you're in a steady...
thing and you're going to be a steady person that but i like your eighty thousand dollar hundred thousand dollar house idea it fits the numbers you're giving me you're not you're not being a princess in this uh a negative princess in this um discussion so i don't hear that coming from you but you don't have those options yeah you're driving a used camry for the foreseeable future exactly exactly and that's not a bad thing it's not a bad thing i think that those are the choices that we make when we decide you know where our passions are going to take us in life career wise so
Godliness with contentment is great gain. Rodney is in Atlanta, Georgia. Hi, Rodney. Welcome to the Ramsey Show.
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Chapter 3: Should I buy a $1 million house in cash?
But, yes, I think that is a good strategy to move traditional to a Roth.
At what point, okay, I'm trying to think through this. I'm thinking of a good question here. So if you're listening to the show and you say, oh man, Dave, I've contributed to a traditional 401k most of my working life. I've got a lot over there. At what point do you go, this is too much to move, and or what's a fair percentage to have in traditional versus Roth? Maybe that's the better question.
In game, I don't want you to have any in it. right but if you're if you've been doing that it's okay i mean but i wouldn't be i wouldn't be continuing traditional i'd move everything to roth today all on fresh contributions and in game i want you to move it all out into roth over a period of time and here's why let's let's fast forward this 33 year old to uh 65 sure okay um
He's not going to cash all of this out suddenly at retirement anyway.
That's right.
And very likely this guy making quarter million dollars a year at 33 years old is going to have a bunch of other non-retirement investments like Dave.
Right.
Okay. I got a bunch of non-retirement investments called real estate and other things, right? Mutual funds that aren't in a retirement plan. So the chances of me actually touching... I'm 64. Of ever touching my retirement accounts, it's close to zero. I will never touch them. So now what are we doing? Well, now we're looking at 72 and a half RMDs, required minimum distributions.
I don't have those because it's Roth. Inherited IRAs. They are taxable if they're traditional.
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Chapter 4: What to do if you're upside down on a car loan?
Oh, there we go. Ding, ding. This is The Ramsey Show. Live from the headquarters of Ramsey Solutions, it's The Ramsey Show, where we help people build wealth. Do work that they love and create actual amazing relationships. Jade Walsh, our Ramsey personality, is my co-host today. This is a Baby Steps Millionaires Theme Hour. We're going to talk to real millionaires and ask them questions.
How they did it. We started doing this theme hour several years ago because I kept hearing all the mythology in the marketplace, the lies that are out there about where wealth really comes from. People don't seem to know where wealth really comes from. So let me help you with this. A millionaire... is a million dollar or greater net worth. There is only one definition of a millionaire.
It is a math process it's not up to you to it has nothing to do with your feelings it doesn't care what your feelings are okay what your assets are minus your liabilities is your net worth what you own minus what you owe not a salary that is your net worth has nothing to do with your income And your net worth determines if you're a millionaire.
When you have a $1 million or greater net worth, whatever you own minus whatever you owe, and there's no qualification on that, this is an accounting term. And just because you're on TikTok doesn't mean you get to change it. This is a definition. And so someone that makes a million dollars might or might not be a millionaire. That is not the definition of a millionaire.
When people say net worth millionaire, that's redundant. Because 100% of real millionaires are no millionaires based on their net worth. You don't need to put an adjective in front of an adjective. It makes you look stupid. So it's just a millionaire. That's all it is. So we're going to talk to people that really have that net worth and ask them where they got it. And that's what we do here.
The phone number is 888-825-5225. We're starting with Charlie and Stacy in Midland, Texas. What's your guys' net worth? dave we think it's about 10.8 hey hey way to go guys okay give me a little breakdown by mix on that how much of that is like investments or retirement real estate so on we both have an ra and they total about 2.5 got two got two houses 1.4 and then got 6.7 and um
Investment account, high-yield savings account, and land.
Way to go.
61.
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Chapter 5: How to handle student loan debt after a spouse's death?
In the mid-'90s, you had the prime time on AM radio about 3 in the morning.
I did. In Midland, Odessa, I remember this.
That's right. Yes, and that's where I heard about you. That's where I heard about you. Wow. That's crazy. It's so much easier, I think, today, because when you think in the 90s,
i did not know what a no load mutual fund was if you were going to buy stocks you had to buy a block a hundred at a time or something like that and now you can buy fractions you can it's got to be so much easier now than it was for us now the vehicles are a lot cleaner you're right and there was no roth there was no roth back then either no there was not no i agree with you so what do you guys drive
She drives a Subaru.
Yeah.
And I drive a three-quarter ton Aggie Maroon GMC pickup truck.
Aggie Maroon. That's a particular color they sell in Texas, isn't it?
I'm sorry about the volunteers. I really am. I'm sorry about the ball.
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Chapter 6: What are the Baby Steps to financial freedom?
If he was a crooked veterinarian, overcharged, people would take their animals somewhere else.
Yeah, his business would be out of business.
If he stole from his customers, they'd take their business somewhere else. Instead, he grew a large business by not being a crook, by being an honest guy, sold the business later, and became very wealthy as a result of doing that. So crooks actually do not prosper. Well, crook, you can prosper as a crook, but it's not sustainable. It's not a long-term strategy.
And so what we find is most wealth building is long-term. Now, you can become wealthy for a hot minute being a crook, but we don't find the typical millionaire to be a crook. As a matter of fact, we find the percentage of crooks among them to be lower than the general population percentage of crooks. And so because one of the issues is integrity, it seems to be correlated with building wealth.
Do you also feel that people have sort of a negative framework or an improper framework about millionaires because, A, they're thinking of celebrity status. They're thinking of people who have $200 million. They're not thinking of the everyday person that might have $2 or $3 million or $8 or $10 million, right?
Well, they've gotten confused between the difference in a billionaire and a millionaire.
Mm-hmm.
A billionaire has a jet.
Right.
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