foreign
what's become famous around Ramsay was
because many many years ago decades ago
people came to me and they said what do
you do first do you do retirement first
or do I do kids college first that's
very important do I have an emergency
fund first that's really important I
need to get rid of this stupid credit
card debt it's 22 percent that's very
important where do I start and what we
did at the time many years ago was we
laid it out and then we adjusted it a
couple times in the early days we only
adjusted it in 25 years but we laid out
what to do first what to do second one
and we call them the baby steps because
if you eat if you want to eat an
elephant you do it a bite at a time so
if you want to get control of your money
you do it a step at a time baby steps
baby step one is you save a thousand
dollars quickly a little starter
emergency fund once you've done that and
some of you just have that money you
just name it that just now you've
already did baby step one you just reset
that money in your mind over to the side
that's maybe step one baby step two is
you pay off all of your debt except your
home using the debt snowball
that that snowball is where you list
your debts smallest to largest pay
minimum payments on everything but the
little one you attack the little one
with a Vengeance you're not going on
vacation you're in debt you're broke
you're not going out to eat you're in
debt you're broke you work all the time
you're in debt you're broke there's a
great place to go and you're broke to
work
okay this is what you do and you bust
your butt and it's scorched Earth no
lifestyle no nothing you sell so much
stuff the kids think they're next you
name the dog eBay and the cat Craigslist
everything's going out the door we're
getting this mess cleaned up we're sick
and tired of being sick and tired people
that do it with that intensity get out
of debt in an average of about 18 to 24
months now average means that some of
you have half a million dollars of
student loan debt like Jay did took her
seven years okay and then average means
some of you have five thousand dollars
in debt and ten thousand dollars in your
bank account when you heard me rent and
you just went and paid it off now you're
debt free took you 13 seconds okay but
the average is 18 to 24 months then when
you finish that with the same level of
intensity you continue we call this
gazelle intensity the gazelle running
from the cheetah for its life
when you get out of debt you finish baby
step three with the gazelle intensity
and that's three to six months of
expenses then we turn off the intensity
and we move from intensity to
intentionality and we do baby steps four
five and six simultaneously that's 15 of
your income going into retirement that's
what's going to make you a baby steps
millionaire in about 12 years following
this plan
you're gonna put money into kids college
if that's applicable and you didn't sell
them off
[Laughter]
fixes any other money we can find in the
budget we're going to throw at the house
and the average person paying off their
house following these baby steps is
doing it we've been doing this for 30
years it's doing it in about 10 in about
10.2 years and our baby steps
millionaires study we did of
millionaires some of them had followed
our stuff some of them hadn't they were
doing it in about 11 years wow so but
the point is there's an intensity for
that first three steps to get out of
debt and get your emergency fund in
place because until you do that you're
broke
and you're walking around in a culture
strutting around like you've got some
money you got no money shut up you're
broke
quit acting like you're something you're
broke
and this putting on the crap has got to
stop and Jade you've been hearing this
thing in baby step two where people are
struggling with motivation yeah you know
I get it all the time Dave they go in my
e in my DMs direct message even in our
Financial Peace University class I get
the same question which is Jade you guys
did this for seven and a half to eight
years
how do you stay motivated
and you know at first Dave I would kind
of give like like the nice answer like
well you gotta you gotta connect to your
why and and all of this and I really got
to thinking about it I was talking to
Sam about it and the more people ask me
it kind of frustrates me because there's
gotta be no other option y'all don't get
Jade frustrated okay there's a bad idea
when Sam and I were getting out of debt
there was no option to not do it
it it's a must I have to my life will
never be what I need it to be what it
should be what God wants it to be if I
don't do this so so this idea that well
maybe I'll do it and maybe I won't that
cannot exist it's not an intellectual
exercise it's not an exercise you've got
it it's an emotional visceral decision
yes I I must It's gotta and nobody can
for you you know you listen to this show
or you come to a live event and we'll
light that match for you but you've
gotta like stoke your own flame my buddy
uh Lucas did a talk about this he said
um you could be a spark or you can be a
flame
and you can tell the difference by when
the wind blows if you're a spark the
wind blows immediately you go out just
like that but if you're a flame when the
wind blows you get you get bigger you
get more aggressive you get larger and
more Fierce and and if you're talking to
me and you're asking me how can I stay
more motivated I'm sorry to tell you
you're a spark
you're just you're just a little
fluttering spark and you've got to do
what it takes I just called you people
name she called you a little spark
you're just a little Sparkle wimpy spark
and the moment the wind blows man the
minute you have to dip into your
emergency fund the minute something
happens you're ready to go well I don't
know if I want to do it I don't know if
it's worth it try that Ramsay stuff it
doesn't work what do you mean what do
you mean you don't know if it's worth it
to you do you want to change your life
or not
it's that simple motivate if you're
waiting to feel motivated you will be
waiting forever because that is
completely mythological motivation is
not an external
substance no it doesn't come from out
there to take you come in here yeah and
you know one of the things I I've kind
of run into this over the years of me
teaching it too the same frustration
Blake uh Thompson our old producer he
now runs all of Ramsey networks yeah he
used to do these comedy bits and he
created this comedy bit that we would
play on the air called detonal
and it was a pill you could take that
would get you out of debt if you just
took this pill you'd be out of debt and
that's what everybody's looking for
they're looking for a magic pill you
know I was wandering in the vitamin
aisle and I ran into my one of my pastor
friends who's kind of loud and he yells
down the aisle Ramsay there's no pill on
there it's going to help you you got to
eat less
so good it's so true you all want the
magic pill that's gonna magically make
this easy it ain't gonna be easy it
doesn't exist let me tell you what easy
is easy is when you finish
easiest one you finish it gets easier
but let me tell you this I mean there's
other side of that where people go man
this is hard right
you wish learn to do hard but can I just
say it's also what is also hard is not
being able to afford groceries man
that's hard
that's hard when you look up and you
don't have the money to take care of
your kids you don't have the money to
spin the gas to go visit a loved one in
the hospital I'm talking about myself
that that was hard that's hard to
stomach because that reflects back on
you and you go oh my god I've been an
idiot with money
and in comparison just saying in
comparison it's easier to sacrifice to
win so that you don't have to endure
those other things you live like no one
else so that lighter later can live and
give like no one else no discipline
seems Pleasant at the time the Bible
says but it yields a harvest of
righteousness yeah listen you're going
to pay a price you're going to pay a
price you're either going to pay a price
of mediocrity throughout the whole scope
of your life and your life's gonna suck
perpetually yeah because the time's
gonna pass regardless we're still
waiting on the government to fix your
life that's humorous and you know so
you're either going to live a life of
mediocrity because you half butt do
stuff or you're going to pay a price for
a short period of time and you're going
to like yourself on fire and be a flame
not a spark I love that that's a good
line I like this and a lot of you are
going to look up you know Dave said the
stats on getting through baby step two
most people who get through baby step
one through three it's two and a half to
three years that sounds a lot like a lot
when you just say it but man that is
just a drop in the Bucket over time and
some of you who've been kicking your
student loan can down the road for three
years you could have been done and
finished you could have been done and
let me tell you something you just wish
when this thing kicks back up you are
going to regret it start today yeah
start today so where's it come from it
comes in believing the best way to live
your life is free and it's worth paying
the price to get there that'll give you
the motivation I want to change my
family tree I want to look at my kids
eyes and have a different set of values
a Godly Man leaves an inheritance to his
children's children amen