WEBVTT - Humbled, and In-Charge.  Dave Ramsey Talks to Armstrong & Getty

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<v Speaker 1>Dave Ramsey, personal money management expert, America's trusted voice on

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<v Speaker 1>money and business, has a national radio show It's all

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<v Speaker 1>over the place. He's got seven best selling books um

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<v Speaker 1>sold in many millions of copies, and he's got a

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<v Speaker 1>heck of an interesting life story as well. And we

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<v Speaker 1>couldn't agree with this guy more on a whole bunch

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<v Speaker 1>of different things, because four hours simply usn't enough. This

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<v Speaker 1>is armstrong and getty extra large. There he is, Dave Ramsey.

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<v Speaker 1>How are you, sir? Great? How are you guys? Oh,

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<v Speaker 1>we're terrific. We're terrific. You know, we have a lot

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<v Speaker 1>a lot in common, whether you know it or not,

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<v Speaker 1>because we share a lot of your beliefs about financial

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<v Speaker 1>responsibility and how you know it's it's I don't know

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<v Speaker 1>if you consider it moral? Do is like being reasonable

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<v Speaker 1>with your money, being frugal, being smart? Do you consider

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<v Speaker 1>that a moral value? Probably? Is this definitely wise? Sure?

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<v Speaker 1>Because I mean it used to be taught by all

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<v Speaker 1>the classic religions that that was part of being a

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<v Speaker 1>good person. Yeah, it's a discipline of your life, and

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<v Speaker 1>it's an indicator or that you're uh, you know, you're

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<v Speaker 1>emotionally spiritually mature that you handle money well, I mean,

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<v Speaker 1>you're not a child. Here. Here's where it comes up

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<v Speaker 1>most often on our show is there'll be some government

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<v Speaker 1>statistic or a conversation particularly about or around retirement or people,

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<v Speaker 1>you know, when they're getting older and how much money

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<v Speaker 1>they've got, and I'm supposed to feel terrible about it. Well,

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<v Speaker 1>I might feel terrible about person A. Maybe they had

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<v Speaker 1>bad things happen to him. I don't know. But person

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<v Speaker 1>B may have always owned a new car and gone

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<v Speaker 1>on vacations. I've never gone on, and then lived in

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<v Speaker 1>a house bigger than they should have, and then they

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<v Speaker 1>got no money there into their life. I don't care.

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<v Speaker 1>So it bothers me that that the news never takes

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<v Speaker 1>that into an into account, well, because there there would

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<v Speaker 1>be an ideological agenda obviously with those folks. So the

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<v Speaker 1>news folks and people putting out that in that way

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<v Speaker 1>because if you can say, well, society is sick, and uh,

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<v Speaker 1>you know all of those people are victims of a

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<v Speaker 1>systemic problem, then we must to need socialism to fix it. Right. Yeah,

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<v Speaker 1>I get I get what you're saying, but just what

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<v Speaker 1>a bad message to have for everyone though? Uh? In

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<v Speaker 1>real life. Just two days ago, I'm going to visit

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<v Speaker 1>my my dad with my kids. They're going to see

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<v Speaker 1>grandma and grandpa. And buddy of mine said, boy, where

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<v Speaker 1>your dad lives. He must have really done well in

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<v Speaker 1>the business he was in. And I said, no, not really.

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<v Speaker 1>He never made very much money. We just always drove

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<v Speaker 1>used cars. We lived in a small house. We never

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<v Speaker 1>went anywhere on vacation. He's just always been really really fuegel.

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<v Speaker 1>That's frugal. That's why he's got some money. The assumption

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<v Speaker 1>that you have to make says some Cooper says, oh,

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<v Speaker 1>he's lucky, right exactly. But luck didn't have anything to

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<v Speaker 1>do with this. So listen. For fans of Armstrong and

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<v Speaker 1>getting you might not listen to you or or be

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<v Speaker 1>familiar with you. What's the introduction crash course to Dave

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<v Speaker 1>Ramsey and what you teach? Well, start with him. Honored

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<v Speaker 1>to be on the Armstrong and Getty show. You guys

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<v Speaker 1>are legends. Thank you for having me. Honored to be

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<v Speaker 1>with you. But you know, it is common sense. It's

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<v Speaker 1>God's and Grandma's ways of handling money, is what we

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<v Speaker 1>always say. And so it's live on less than you make.

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<v Speaker 1>It's be outrageously generous. It's have a written plan, stay

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<v Speaker 1>out of debt, because your number one wealth building tool

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<v Speaker 1>is your income, and when you give it to everybody else,

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<v Speaker 1>that makes you pour uh. You know. It's those basic

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<v Speaker 1>kinds of things like that. It used to be called

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<v Speaker 1>common sense, and I've made a really good living for

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<v Speaker 1>thirty years with it. Yeah. Well, I didn't know this

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<v Speaker 1>about your bio until I was reading your bio. At

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<v Speaker 1>twenty six. You accumulated a lot of money for a

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<v Speaker 1>year old, then you lost it all. What's that whole story?

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<v Speaker 1>And then what you learn from it? I was stupid? Um,

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<v Speaker 1>that's you know. We started with nothing, and by the

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<v Speaker 1>time I was twenty six, I had about four million

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<v Speaker 1>dollars worth of real estate, a little over a million

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<v Speaker 1>dollar net worth. And this is eight four. I made

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<v Speaker 1>two h fifty thousand dollars cash taxable income that year

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<v Speaker 1>in Tennessee. We call that a lot of money back then.

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<v Speaker 1>And so I was doing great, but I borrowed too much.

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<v Speaker 1>The bank got sold to another bank. I had built

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<v Speaker 1>a house of cards, and guess what they called our

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<v Speaker 1>loans because they freaked out and saw twenty six year

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<v Speaker 1>old kid oh too, millions of dollars. And it took

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<v Speaker 1>two and a half years then for Sharon I to

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<v Speaker 1>lose everything we owned, and we had the wonderful opportunity

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<v Speaker 1>to start over with a brand new baby, a toddler

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<v Speaker 1>in our marriage hanging on by a thread. Wow, that's

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<v Speaker 1>that's something else. And and so starting out a new

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<v Speaker 1>what was different about your approach? Um? Well, I wasn't

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<v Speaker 1>just broke. I was broken. Uh it. I thought I

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<v Speaker 1>could do anything, and I've discovered I couldn't. And so I,

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<v Speaker 1>you know, I had to rethink all the stuff I

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<v Speaker 1>had been taught in academia and check it against scripture

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<v Speaker 1>and check it against common sense. Because in academia they

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<v Speaker 1>tell you that there's good debt and so borrow as

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<v Speaker 1>much as you can if it's a student loan or

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<v Speaker 1>a house. And uh here I sat broke using that

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<v Speaker 1>exact theory. So something's wrong with this. And I kind

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<v Speaker 1>of came up with the idea that a broke finance

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<v Speaker 1>professor is like a shop teacher with missing fingers. You know,

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<v Speaker 1>I don't think I'm gonna follow your best ideas because

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<v Speaker 1>the last time I did, it left a mark. And

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<v Speaker 1>uh so I just got weird. I just said, you

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<v Speaker 1>know what, I talked to rich people, and they don't

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<v Speaker 1>borrow money. They don't borrow money. They don't care credit

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<v Speaker 1>card balances, they don't have car payments, they drive used cars. Um,

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<v Speaker 1>they don't borrow money. They go on vacation, they pay

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<v Speaker 1>for it. They don't borrow money. They get ready to

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<v Speaker 1>fix up their kitchen, they pay for it, and then

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<v Speaker 1>the next month they get to keep their paycheck instead

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<v Speaker 1>of giving it some stupid bank home equity loan. And

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<v Speaker 1>so it was a real revelation, you know. And so

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<v Speaker 1>I started applying this stuff to my life, and then

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<v Speaker 1>I started talking about to other people, and it turned into,

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<v Speaker 1>you know, thirty years later, a Hall of Fame radio show,

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<v Speaker 1>Who Knew So? And what's interesting to us about the

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<v Speaker 1>change in the culture from a pays ugo society to

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<v Speaker 1>everybody borrows to buy everything all the time, is that

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<v Speaker 1>it didn't happen in two seventy five years. I mean literally,

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<v Speaker 1>Grandma paid as she went there. There bad guys in

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<v Speaker 1>this Is it just a societal thing? How that change happened. Uh,

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<v Speaker 1>there's bad guys, but they're they're not. It's not a

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<v Speaker 1>conspiracy theory. They're just uh, they don't care about their customer,

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<v Speaker 1>and they're called banks. And you know, the debt is

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<v Speaker 1>the most aggressively marketed product in the culture that has

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<v Speaker 1>the most marketing in the history of mankind. So there's

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<v Speaker 1>more money spent selling the credit card than any other

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<v Speaker 1>product in our world today. And we live in the

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<v Speaker 1>most marketed to culture in the history of the world.

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<v Speaker 1>So these guys are really good at getting you in

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<v Speaker 1>debt and making you believe at the core of your

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<v Speaker 1>very being that you cannot exist without debt. Well, you

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<v Speaker 1>can't have a car that a car payment. You can't

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<v Speaker 1>be a student without a student loan. It's absurd, Graham,

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<v Speaker 1>you've lost your mind. No, got a pretty good life

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<v Speaker 1>that way, boy. And the most obvious of business analysis

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<v Speaker 1>is they're not working that hard and spending that much

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<v Speaker 1>to get your credit card because if they know it

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<v Speaker 1>will be helpful, it's because they're gonna make that much money.

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<v Speaker 1>You know. If you notice their building is bigger than

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<v Speaker 1>your house and their furniture is nicer than yours, something's

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<v Speaker 1>going on here. It's a transfer of wealth, boys and girls. Boy.

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<v Speaker 1>And if you if you've ever been in the position

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<v Speaker 1>to pay cash for things you're washing machine or your

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<v Speaker 1>car or whatever. When you when you when you are

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<v Speaker 1>paying cash, you make different buying decisions. You don't buy

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<v Speaker 1>the next step up of car if you're paying cash

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<v Speaker 1>for at least that's been my experience. You yeah, because

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<v Speaker 1>it's like real money. It's yeah, it counts his real money.

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<v Speaker 1>So a Dave um any thoughts on the current state

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<v Speaker 1>of college education and paying for it. You've mentioned student

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<v Speaker 1>loans a couple of times. What else? Uh, Well, one

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<v Speaker 1>of our Ramsey personalities, Anthony O'Neil's launching a book on

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<v Speaker 1>October seventh called Debt Free Degree. We are sure you

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<v Speaker 1>can go to college debt free. But it's just like you,

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<v Speaker 1>it's exactly like you just said. It has to do

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<v Speaker 1>with college choice, choosing to go to a school that

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<v Speaker 1>is within your budget, choosing to buy a car that's

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<v Speaker 1>within your budget. No one even considers what they're paying

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<v Speaker 1>for school because it's not real money. It's monopoly money.

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<v Speaker 1>And um, you know. And on the political front, this

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<v Speaker 1>idea of forgiving student loans without the idea of stopping

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<v Speaker 1>making them is ridiculous. If this is a plague on

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<v Speaker 1>America of epic proportions, which I think it is. Then

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<v Speaker 1>Congress needs to wake up and stop making stop guaranteeing

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<v Speaker 1>the line. I don't know how much time you want

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<v Speaker 1>to spend on the politics as but but it drives

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<v Speaker 1>us crazy that the discussion is always about whether you

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<v Speaker 1>forgive loans or not, or how much or whatever. Nobody

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<v Speaker 1>ever even brings up why is college so damned expensive? Now? Why?

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<v Speaker 1>Why would knowledge is easier to spread around than it's

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<v Speaker 1>ever been in the history of the world. Is college

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<v Speaker 1>ten times as expensive? It doesn't even come up in

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<v Speaker 1>the conversation. Well, it's supplying to my end of money.

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<v Speaker 1>I can tell you that. I mean, when you have

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<v Speaker 1>unlimited money, when your customer has unlimited money to spend,

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<v Speaker 1>you will find a way to raise your prices. And

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<v Speaker 1>so you want college price to come down, stop the

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<v Speaker 1>student loan guarantee program instantaneously. Colleges will disappear, and some

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<v Speaker 1>of them need to because they're ridiculous, and the rest

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<v Speaker 1>of them will adjust to a disrupted market. But this

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<v Speaker 1>is a market that's propped up by government subsidies, and

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<v Speaker 1>it's driven the price through the roof. It's basic econ right.

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<v Speaker 1>You don't need to be an economist. You need to

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<v Speaker 1>be like a first or second year ECON student to

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<v Speaker 1>understand what distorting market is. Um but and and you

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<v Speaker 1>know a final note is semi philosophical. It's interesting listening

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<v Speaker 1>to you tell your life story, Dave, that it comes

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<v Speaker 1>from being humbled, and through being humbled you decided I'm

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<v Speaker 1>the captain of my own ship. I'm strong enough to

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<v Speaker 1>plot my own course. It's it's kind of an interesting contrast. Now,

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<v Speaker 1>the problem with my monny is the guy in my mirror.

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<v Speaker 1>If I can get that goober to behave he can

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<v Speaker 1>be skinny and rich, but he's got issues. Well said, indeed,

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<v Speaker 1>you know it's it's been too long since we talked. Listen,

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<v Speaker 1>not let too much time go by again, Dave Ramsey, Well,

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<v Speaker 1>thank you, my brothers. I'm honored to be on the

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<v Speaker 1>station with you, and thank you for letting me come

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<v Speaker 1>on for a few minutes. You holler anytime, I'd be

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<v Speaker 1>happy to do this. We'll do that. Thanks. I've never

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<v Speaker 1>heard that story before I did. I listened to Ramsey

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<v Speaker 1>on and often I hear all the credit card advice

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<v Speaker 1>and stuff, and it's all great. I agree with it,

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<v Speaker 1>but I've never heard the story of how he had

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<v Speaker 1>a million dollars when he was twenty six, and that's

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<v Speaker 1>when a million dollars was really a lot of money

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<v Speaker 1>and and lost it all. Well that you know, that'll

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<v Speaker 1>change your view of things. Yep, good stuff extra large