Name: Dave Ramsey's Do's and Dont's of Investing
Uploaded: 2024-05-27T14:30:21.000Z
Description: Watch the stand-up comedy video 'Dave Ramsey's Do's and Dont's of Investing' from Theo Von Clips on Comedy Buff. Published 2024-05-27. Transcript available.

Watch the stand-up comedy video 'Dave Ramsey's Do's and Dont's of Investing' from Theo Von Clips on Comedy Buff. Published 2024-05-27. Transcript available.

yeah speaking of like yeah like kind of traps i guess like what are like so a
lot of things
you've spoken out against crypto i know i'm not a crypto fan i lost two
thousand dollars in crypto
just like every one of my friends did when it first came out right um like nfts
things like
that that kind of pop up that really they're almost to me some of them seem
like the modern
day pyramid scheme in a way the emu farm yeah yeah yeah it's a lot of emu farms
baby what do
you how do you why are more people falling susceptible to these types of things
do you
think we always have uh it's human nature uh we want we're wired by god to look
for the uh shortest path
to to look for optimum to look for the best the quickest the easiest and there's
nothing wrong
with that that makes our lives better because we create inventions and things
that make our lives
better that's that that very wiring created the automobile or created the the
iphone or created
you know things that make our lives better and so that's a good wiring but
where it gets off track
is um where we think we can short circuit a proven process and it causes you to
jump from investor
to speculator and investors always the crockpot they're always a long play they're
always saying okay
i'm going to invest in mutual funds i don't care what stock market did this
year i'm thinking what's
it going to be in 20 years what's it going to be in 15 years and how am i going
to be doing you know
and so i'm thinking long term the speculator needs a quick flip and so bitcoin
was is never really been
about investing it's a speculation it's a short-term play no one bought that
and said you know in 20 years
this is going to look brilliant yeah no one did they all thought quick money
easy money no one flips
houses with nothing down that they saw on tick tock you know quick flip quick
flip when you when a
builder even builds a home that does that they're not custom building they call
it a spec house it means
speculation they're speculating that they're going to sell that house it's a
short-term play they're not
building that house and that subdivision hoping to sit on it 10 years they're
building it hoping to sit
on 10 days right and so it's speculation so where you get confused where you
mess up is where you can
fall into scams and get rich quick and violate basic investing principles is
when you move from
investing which is long-term mentality to speculation which is quick hit i want
quick money easy money
quick money easy money and that's that wiring that's positive wiring gone astray
yeah you know become
toxic and so uh and and in a sense that's what happened to me when i went broke
in real estate
because i was buying houses i was doing flip this house before chip and joanna
were born you know
and so that's what we were we were getting it and i've owned like 2 000 houses
in my life so i was
i was churning them man but i was doing it on 90 day notes short-term notes
because i was not buying
them as a long-term play i was buying them to fix them and flip them and the
bank got sold to another
bank they look up and they can call my notes in 90 days so they called a
million two in 90 days and it
crashed me and so because i was a speculator i wasn't an investor now i would
have told you i
was a real estate investor right but the actual definition of the term investor
means longer term
horizon long window and so if it's thank god it's friday oh god it's money if i
got to move it this
calendar year or in the next two calendar years to make money on it then you
know you're playing the
roulette wheel you're playing texas hold'em you're that's speculation you're
gambling then and that's a
different thing it's okay if you want to do some of that right but quit calling
it investing because
then it causes you to put too dad got much money in it because you lose your
butt then and that's where
you get scammed is you're looking for something for nothing quick a quick turn
double my money fast
because i don't think i can get there long term so i'm so desperate and so
scared so fearful so greedy
that i got to get it right now and that's what i was doing and it worked i got
a million dollars worth of
stuff but i didn't keep it because i built a house of cards um yeah i have i
put money into kind of t
bills i'm kind of a say uh oh it's you yeah it is it was it was you okay um
because i there's a lot
of me i don't trust the stock market that much i feel like it's so manipulated
these days i feel like
there's like darker forces that are like you can use the media to control it
and like can like create
articles to affect how the market goes so that's kind of like so i prefer
something like a t-bill or
something like that that's just like a safe i know what it's going to be pretty
much um well there's
always been falsehood and manipulation in the market there's always been to a
degree do you think it's
still a safe place for people to invest i do i've got i've got millions and
millions of dollars and in
mutual funds so the the way to offset that is number one if you don't i i
believe it's there
i believe it's a very small percentage and i don't know where it is exactly i
can't point and say that
guy that one you know that girl that thing right there i don't know exactly
where it is but i mean
is there people that fluff the thing absolutely they fluff it absolutely is
there people that you know
that uh right before the news article goes out they sell their stuff insider
trading it happens all the
time sometimes they get caught go to jail it's illegal but does it happen oh it's
common practice is it so
widespread that it makes the investment uh improper or imprudent no i don't
believe that otherwise i
wouldn't be investing um uh so uh so i invest so if i'm in a mutual fund i'm in
90 to 200 different stocks
and it's stuff that you drive by every day it's mcdonald's or home depot or
dell computer or
apple or exxon or whatever right yeah that's in the room not go or whatever
exactly yeah all that and
so uh in those 90 to 200 is there some percentage of that problem going on yeah
there is some
percentage but not enough that it in general those 90 to 200 companies i'm i'm
spread out wide enough
diversified i'm spread out enough that i'm catching all the good and it's more
than offsetting the falsehood
that's out there and it's more than offsetting that so as home depot makes more
money than i'm
participating as whoever apple makes more money than i'm participating because
i'm one of the owners
of the company tiny tiny little bit when i own you know in that 90 to 200
stocks so that's how i don't
buy single stocks mainly because they're higher risk and much more volatile and
you're much more prey to
what if that was the company that was screwing around yeah then boom you know
you bet the whole
dadgum farm on that one horse race and that guy fell no we're not doing that so
i don't like that much
risk so i like the diversification of mutual funds that's where my all my
retirement is uh it's what
we recommend what we teach um so i only do two kinds of investing i buy real
estate that i pay cash for
and i buy mutual funds but yeah there's no easy real there's no easy way to it
well i mean the t-bill
you know what you're talking about that's you buy it and you forget it they
send you a check it's not
as big a check but there's no hassle yeah you know mutual funds a little more
risk because you're in
there with all these companies there could be something going on even if you're
90 to 200 and
limited the risk by spreading it out you still got more risk than you would in
a t-bill but you're
gonna make a little more yeah you want a little more hassle go to the real
estate you're gonna make
a little more so you don't want to be uh you know i try to just say it's a risk
return ratio if i'm
going to take some risk and have some hassle i want some extra money for that
yeah yeah because it's the
stress it causes it's like do i want to be because i'll notice yeah like some
stocks is too much stress
for me because i'll check them too much and i don't like it and then it's like
i've spent you know 30
minutes of my data and checking stocks and that's money the time i could have
just had him doing my
work yeah yeah i buy mutual funds set it and forget it i don't even know what
the market has done this
year wow and i do this for a living wow i don't keep up with it i don't because
it's i'm not betting on
this week i'm saying okay you know look at what the stock market has done since
1980 since 1990 since 2012.
look at what i would have made if i'd put ten thousand dollars what it would
have made and that's
how i'm playing it is the long haul the long play wow god well there it is 1992
thousand dollars would
have turned into five thousand dollars was there was there ever a stock that
you bought dave where
you were like man i wish i would have held on to that that you just remember
like even when you
were younger was it one no i never bought single stocks ever uh the only dumb
thing i did is i bought
gold one time uh this buddy of mine again you know these buddies in my 20s he
was making money and he
had this gut gold guy that we could buy um options on gold which we don't even
buying the gold just
buying the right to buy the gold and he said he put in five thousand bucks and
if the if it goes up
the option goes from 5k to 50k 10x my money and uh 14 times in a row this guy
had hit
wow you put it in and like he had predicted and he said okay we need to go in
right now put five
thousand i dropped five thousand bucks in there 15th time he didn't hit you see
it's all or nothing
so i lost the whole 5 000 and no sign of 50 right no yeah so i i'm done you
think it was a pyramid
scheme or not no no it's an option that's how options work it's just you're it's
a uber high risk
situation it's super crazy it was just gambling i mean it's just gambling um to
somebody that's
starting out right now they're just starting out in the world they got their
first couple of jobs
they just got out of college how much money do they need to save if they want
to have some freedom
in the future what do you tell them dave well the first thing we tell them is
get out of debt
everything but the house and then have an emergency fund of three to six months
of expenses we call
it the baby steps there they are um and so once you're at baby step three and
you have three to six
months of expenses you don't have any payments but a house payment so you save
three to six months you
have savings to pay off for three to six months in case something happens
exactly a rainy day fund you
don't it's not i want a bass boat it's a rainy day fund it's not i need a new
couch it's a rainy day
fund you don't touch that if you're going to buy something else you save up and
pay for it then but
but to answer your question baby step four is invest 15 of your income when you
don't have any payments
except a house payment you can save 15 of your income and the average household
income in america
right now is 72 000 a year if you save 15 of 72 000 from 30 to 65 you're going
to have about 5 million
bucks in mutual funds so say that again so if i'm like 5x wrong you're still a
millionaire shut up
so you really can't screw this up it's like it but but you can screw it up
because you live in america
and you can get a 1200 car payment for freaking car you can't afford to impress
people to stop light
who don't even care about you yeah you know and that's what we do instead um or
i need another truck
or i need another whatever i mean i'm the same guy but yeah so then we say for
kids college uh six is
what your stepdad did we pay off the house early in 11 years by the way oddly
enough 11 years is the
average millionaire that paid off their houses in 11 years 11.2 years in the
study that we were talking
about earlier so so that's one of the things that people did to become millionaires
yeah they walked
right they call them baby steps millionaires they walked right up this they get
their house paid
off in an average of 11 years some of them seven years some of them 14 but an
average of 11.
wow and then when you don't have a house payment dude i mean that's two three
thousand bucks a month oh
yeah you got bank to be generous with bank to be investing and yeah you can
take a back stack of
cash you can relax at your house and get in the back and cash that's it that's
god maybe that's what i
want you can name i'll be buy a dang bird bath and sit in that thing if i'm
debt free i sit in the
front yard in there and dang use some dang soap up
Thank you.

Dave Ramsey's Do's and Dont's of Investing

yeah speaking of like yeah like kind of traps i guess like what are like so a
lot of things
you've spoken out against crypto i know i'm not a crypto fan i lost two
thousand dollars in crypto
just like every one of my friends did when it first came out right um like nfts
things like
that that kind of pop up that really they're almost to me some of them seem
like the modern
day pyramid scheme in a way the emu farm yeah yeah yeah it's a lot of emu farms
baby what do
you how do you why are more people falling susceptible to these types of things
do you
think we always have uh it's human nature uh we want we're wired by god to look
for the uh shortest path
to to look for optimum to look for the best the quickest the easiest and there's
nothing wrong
with that that makes our lives better because we create inventions and things
that make our lives
better that's that that very wiring created the automobile or created the the
iphone or created
you know things that make our lives better and so that's a good wiring but
where it gets off track
is um where we think we can short circuit a proven process and it causes you to
jump from investor
to speculator and investors always the crockpot they're always a long play they're
always saying okay
i'm going to invest in mutual funds i don't care what stock market did this
year i'm thinking what's
it going to be in 20 years what's it going to be in 15 years and how am i going
to be doing you know
and so i'm thinking long term the speculator needs a quick flip and so bitcoin
was is never really been
about investing it's a speculation it's a short-term play no one bought that
and said you know in 20 years
this is going to look brilliant yeah no one did they all thought quick money
easy money no one flips
houses with nothing down that they saw on tick tock you know quick flip quick
flip when you when a
builder even builds a home that does that they're not custom building they call
it a spec house it means
speculation they're speculating that they're going to sell that house it's a
short-term play they're not
building that house and that subdivision hoping to sit on it 10 years they're
building it hoping to sit
on 10 days right and so it's speculation so where you get confused where you
mess up is where you can
fall into scams and get rich quick and violate basic investing principles is
when you move from
investing which is long-term mentality to speculation which is quick hit i want
quick money easy money
quick money easy money and that's that wiring that's positive wiring gone astray
yeah you know become
toxic and so uh and and in a sense that's what happened to me when i went broke
in real estate
because i was buying houses i was doing flip this house before chip and joanna
were born you know
and so that's what we were we were getting it and i've owned like 2 000 houses
in my life so i was
i was churning them man but i was doing it on 90 day notes short-term notes
because i was not buying
them as a long-term play i was buying them to fix them and flip them and the
bank got sold to another
bank they look up and they can call my notes in 90 days so they called a
million two in 90 days and it
crashed me and so because i was a speculator i wasn't an investor now i would
have told you i
was a real estate investor right but the actual definition of the term investor
means longer term
horizon long window and so if it's thank god it's friday oh god it's money if i
got to move it this
calendar year or in the next two calendar years to make money on it then you
know you're playing the
roulette wheel you're playing texas hold'em you're that's speculation you're
gambling then and that's a
different thing it's okay if you want to do some of that right but quit calling
it investing because
then it causes you to put too dad got much money in it because you lose your
butt then and that's where
you get scammed is you're looking for something for nothing quick a quick turn
double my money fast
because i don't think i can get there long term so i'm so desperate and so
scared so fearful so greedy
that i got to get it right now and that's what i was doing and it worked i got
a million dollars worth of
stuff but i didn't keep it because i built a house of cards um yeah i have i
put money into kind of t
bills i'm kind of a say uh oh it's you yeah it is it was it was you okay um
because i there's a lot
of me i don't trust the stock market that much i feel like it's so manipulated
these days i feel like
there's like darker forces that are like you can use the media to control it
and like can like create
articles to affect how the market goes so that's kind of like so i prefer
something like a t-bill or
something like that that's just like a safe i know what it's going to be pretty
much um well there's
always been falsehood and manipulation in the market there's always been to a
degree do you think it's
still a safe place for people to invest i do i've got i've got millions and
millions of dollars and in
mutual funds so the the way to offset that is number one if you don't i i
believe it's there
i believe it's a very small percentage and i don't know where it is exactly i
can't point and say that
guy that one you know that girl that thing right there i don't know exactly
where it is but i mean
is there people that fluff the thing absolutely they fluff it absolutely is
there people that you know
that uh right before the news article goes out they sell their stuff insider
trading it happens all the
time sometimes they get caught go to jail it's illegal but does it happen oh it's
common practice is it so
widespread that it makes the investment uh improper or imprudent no i don't
believe that otherwise i
wouldn't be investing um uh so uh so i invest so if i'm in a mutual fund i'm in
90 to 200 different stocks
and it's stuff that you drive by every day it's mcdonald's or home depot or
dell computer or
apple or exxon or whatever right yeah that's in the room not go or whatever
exactly yeah all that and
so uh in those 90 to 200 is there some percentage of that problem going on yeah
there is some
percentage but not enough that it in general those 90 to 200 companies i'm i'm
spread out wide enough
diversified i'm spread out enough that i'm catching all the good and it's more
than offsetting the falsehood
that's out there and it's more than offsetting that so as home depot makes more
money than i'm
participating as whoever apple makes more money than i'm participating because
i'm one of the owners
of the company tiny tiny little bit when i own you know in that 90 to 200
stocks so that's how i don't
buy single stocks mainly because they're higher risk and much more volatile and
you're much more prey to
what if that was the company that was screwing around yeah then boom you know
you bet the whole
dadgum farm on that one horse race and that guy fell no we're not doing that so
i don't like that much
risk so i like the diversification of mutual funds that's where my all my
retirement is uh it's what
we recommend what we teach um so i only do two kinds of investing i buy real
estate that i pay cash for
and i buy mutual funds but yeah there's no easy real there's no easy way to it
well i mean the t-bill
you know what you're talking about that's you buy it and you forget it they
send you a check it's not
as big a check but there's no hassle yeah you know mutual funds a little more
risk because you're in
there with all these companies there could be something going on even if you're
90 to 200 and
limited the risk by spreading it out you still got more risk than you would in
a t-bill but you're
gonna make a little more yeah you want a little more hassle go to the real
estate you're gonna make
a little more so you don't want to be uh you know i try to just say it's a risk
return ratio if i'm
going to take some risk and have some hassle i want some extra money for that
yeah yeah because it's the
stress it causes it's like do i want to be because i'll notice yeah like some
stocks is too much stress
for me because i'll check them too much and i don't like it and then it's like
i've spent you know 30
minutes of my data and checking stocks and that's money the time i could have
just had him doing my
work yeah yeah i buy mutual funds set it and forget it i don't even know what
the market has done this
year wow and i do this for a living wow i don't keep up with it i don't because
it's i'm not betting on
this week i'm saying okay you know look at what the stock market has done since
1980 since 1990 since 2012.
look at what i would have made if i'd put ten thousand dollars what it would
have made and that's
how i'm playing it is the long haul the long play wow god well there it is 1992
thousand dollars would
have turned into five thousand dollars was there was there ever a stock that
you bought dave where
you were like man i wish i would have held on to that that you just remember
like even when you
were younger was it one no i never bought single stocks ever uh the only dumb
thing i did is i bought
gold one time uh this buddy of mine again you know these buddies in my 20s he
was making money and he
had this gut gold guy that we could buy um options on gold which we don't even
buying the gold just
buying the right to buy the gold and he said he put in five thousand bucks and
if the if it goes up
the option goes from 5k to 50k 10x my money and uh 14 times in a row this guy
had hit
wow you put it in and like he had predicted and he said okay we need to go in
right now put five
thousand i dropped five thousand bucks in there 15th time he didn't hit you see
it's all or nothing
so i lost the whole 5 000 and no sign of 50 right no yeah so i i'm done you
think it was a pyramid
scheme or not no no it's an option that's how options work it's just you're it's
a uber high risk
situation it's super crazy it was just gambling i mean it's just gambling um to
somebody that's
starting out right now they're just starting out in the world they got their
first couple of jobs
they just got out of college how much money do they need to save if they want
to have some freedom
in the future what do you tell them dave well the first thing we tell them is
get out of debt
everything but the house and then have an emergency fund of three to six months
of expenses we call
it the baby steps there they are um and so once you're at baby step three and
you have three to six
months of expenses you don't have any payments but a house payment so you save
three to six months you
have savings to pay off for three to six months in case something happens
exactly a rainy day fund you
don't it's not i want a bass boat it's a rainy day fund it's not i need a new
couch it's a rainy day
fund you don't touch that if you're going to buy something else you save up and
pay for it then but
but to answer your question baby step four is invest 15 of your income when you
don't have any payments
except a house payment you can save 15 of your income and the average household
income in america
right now is 72 000 a year if you save 15 of 72 000 from 30 to 65 you're going
to have about 5 million
bucks in mutual funds so say that again so if i'm like 5x wrong you're still a
millionaire shut up
so you really can't screw this up it's like it but but you can screw it up
because you live in america
and you can get a 1200 car payment for freaking car you can't afford to impress
people to stop light
who don't even care about you yeah you know and that's what we do instead um or
i need another truck
or i need another whatever i mean i'm the same guy but yeah so then we say for
kids college uh six is
what your stepdad did we pay off the house early in 11 years by the way oddly
enough 11 years is the
average millionaire that paid off their houses in 11 years 11.2 years in the
study that we were talking
about earlier so so that's one of the things that people did to become millionaires
yeah they walked
right they call them baby steps millionaires they walked r