Guessing Their Debt Was Harder Than I Thought

Summary

Podcast Summary: "Guessing Their Debt Was Harder Than I Thought"

Host: George Kamel (Ramsey Network)
Release Date: August 3, 2026

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Episode Overview

In this lively and insightful episode, George Kamel takes to the streets of Franklin, Tennessee, to play a game of "Debt Guessing." George meets with several strangers, asking them a series of non-numeric questions about their lives, careers, and habits, then tries to guess their total consumer debt (excluding mortgages). The goal? To show how debt situations vary and to encourage listeners to take control of their financial futures—served up with George's trademark humor, skepticism, and conversational charm.

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Key Discussion Points and Insights

1. The Debt Guessing Game – Rules & Intent

• [00:00–00:43] George sets challenge rules:
  • Must be within $20,000 or 20% of the actual debt.
  • Cannot ask for direct monetary amounts.
  • Focused on consumer debt only (no mortgages).

“Unlike guessing people’s weight at the state fair, this one won’t get me punched in the face. Hopefully.”
— George Kamel, [00:01]

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2. Interviews & Debt Reveals

A. Insurance Worker

[00:45–03:42]

• Works in insurance, has a 2019 Ford F150, an associate’s degree, rents, doesn’t use credit cards.
• Initial debt guessed: $28K (George guesses car loan only).
• Actual: ~$19K car loan + $5K personal loan + $2K motorcycle = $25–30K.
• Hidden debt: Owes IRS ~$20K for unpaid taxes, so real total jumps to ~$40–$50K.

Notable Quotes:

“Are you still paying off the IRS debt?”
— George, [03:22]
“Yeah, I got it set up on the payment schedule.”
— Insurance Worker

“Do your taxes. Pay Uncle Sam what he is owed!”
— George, [03:33]

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B. College Student

[03:46–05:47]

• College junior, University of Tennessee, Knoxville; currently unemployed; drives a ’14 Honda Accord; lives with family in summer, about to rent near campus.
• Supported by parents’ 529 plan and scholarships.
• Actual debt: $0 (no student loans, thanks to scholarships and parental savings).

Notable Quotes:

“I think you are completely debt free.”
— George, [04:58]
“I would agree.”
— College Student

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C. National Sales Account Executive

[05:48–07:51]

• Degree in Communications, rents, drives a ’21 Jeep Grand Cherokee, uses credit (Wells Fargo Cash Back), currently investing.
• George guesses: $0 debt.
• Reality: $7K in debt (“not a lot”), spread across credit card and small remaining car payments, related to a recent certification.
• Plans to pay it off within 1 year—George encourages a 6-month payoff.

Notable Quotes:

“Let’s do it.”
— National Sales Account Executive on the 6-month challenge, [07:45]

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D. Senior Payroll Manager

[07:52–11:38]

• Senior payroll manager, no degree, has a leased 2026 RAV4 and a 2019 Nissan Murano, uses Chase Sapphire credit card, owns home, parents helped with some expenses.
• George guesses: $34K.
• Actual total: $70K (credit card debt, large personal loan, $15K on Nissan loan).
• Current debt payoff strategy: Debt snowball, aiming for 5 years (George pushes for 3 years).

Notable Quotes:

“My husband even more than me.”
— Senior Payroll Manager on getting out of debt, [10:41] “The faster the better. You got a life to live.”
— George, [11:22]

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E. Marketing Strategist & Special Education Worker (Sisters)

[12:47–22:50]

Marketing Strategist:

• Bachelor’s in Media Management, Master’s in Psychology (paid for by employer), works for Purdue, drives ’21 Subaru Crosstrek, rents, invests (including crypto), uses Chase credit card.
• George guesses: $50K.
• Actual: ~$13K (just car payment; masters fully paid by employer).

Special Education Worker:

• No degree (currently working on one), ’20 Nissan Rogue, rents, uses Capital One credit card rarely (credit makes her anxious), no family help.
• Actual: $13K (car loan only).
• She and her sister discuss family help with college costs, revealing different parental policies.

Notable Quotes:

“Your car payment... it’s high because it’s the first car I ever bought, and I had no credit, so it’s like $400. It’s super expensive.”
— Special Education Worker, [16:52]

“You two are young. You got plenty of time on your side. Can we do some magic math to see what those car payments could turn into if you started investing that amount?”
— George, [17:10]

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3. Debt-Free vs. Debt-Laden – Contrasts & Mindsets

• Many participants have car loans as primary debt; some have IRS or credit card debt layered in.
• A pattern emerges: Those with parental/educational help tend to be less burdened by debt.
• George’s wealth-building encouragement: Urges guests to free up cash flow by paying down debt, then direct former payment amounts into investments or retirement funds.

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4. Investing Scenarios: If You Redirect Debt Payments

[17:58–21:12]

• George uses online calculators to show the compounding effect if guests invested the amount they currently spend on car payments.
  • Marketing Strategist: $300/month from age 27–56 could turn into ~$1 million at 10% return.
  • Special Education Worker: $400/month from 24–65 could equal $2.8 million.
  • If her family invests $1,000/month: Over $7 million.

Notable Quotes:

“$2.8 million. That’s insane. That is super cool.”
— Special Education Worker, [19:54]

“There’s no excuse now if you don’t have $7 million in retirement when I meet you at 64.”
— George, [22:47]

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5. Money Management Styles in Couples

[21:34–22:36]

• Both sisters defer budgeting to their spreadsheet-loving husbands.
• George highlights the importance of partnership and awareness in household finances, regardless of individual roles.

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Notable Quotes & Memorable Moments with Timestamps

• On taxes: “Do your taxes. Pay Uncle Sam what he is owed!”
  — George, [03:33]

• On zero debt college: “I’ve mainly just been going off my dad’s 529 savings plan for college.”
  — College Student, [05:06]

• On payoff motivation: “We’re trying to do the snowball effect now. So working our lowest cards and then working up to our highest.”
  — Senior Payroll Manager, [10:18]

• On compounding: “Almost a million bucks. Is that impressive?”
  — George, [18:41]

• On future wealth: “About $7 million. And again, that’s if you guys never get a raise... That’s just you guys putting away 1,000 bucks.”
  — George, [21:08]

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Conclusion & Key Takeaways

• Debt is highly individual—even in similar circumstances, factors like parental support, spending habits, and life events (like tax trouble) create vastly different realities.
• Most debt is car loans, some personal loans or credit cards, sometimes unexpected (IRS).
• Redirecting debt payments into investments can yield staggering net worth over time.
• Budgeting styles in families/couples vary, but awareness is critical.
• George’s main message: “The best way to live your life is without payments. No matter how much debt you have, it is worth getting out once and for all.” [22:53]

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Segment Timestamps

• Debt Guessing Game Rules & Intro: [00:00–00:43]
• Insurance Worker: [00:44–03:42]
• College Student: [03:46–05:47]
• Sales Account Exec: [05:48–07:51]
• Senior Payroll Manager: [07:52–11:38]
• Marketing Strategist & Special Ed Worker: [12:47–22:50]
• Investing Magic Math: [17:10–21:12]
• Budgeting in Couples: [21:34–22:36]
• Closing Call-to-Action: [22:53–End]

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This episode offers an engaging mix of real-life debt stories, practical advice, and the empowering truth that no matter your situation, financial freedom is possible with proactive steps and intentional money management.

Transcript

[George Gammon]

It's not that hard asking people about their debt. What's really hard is trying to guess it. And unlike guessing people's way at the state fair, this one won't get me punched in the face. Hopefully I've been known to have a punchable face. So I'm going to put my debt guessing skills to the test here in Franklin, Tennessee to see how close I can get. But before we get to it, let me give a quick hi diddly ho neighborino to delete me for sponsoring this channel. Let's get to it. You ready to play a game with me?

[Insurance Worker]

I'm ready.

[George Gammon]

I'm going to guess how much debt you have based on a series of questions. Couple of ground rules here. Okay. I have to be within $20,000 or 20% of your actual number. And I can't ask any questions where the answer is a dollar amount. Fair?

[Insurance Worker]

Fair.

[George Gammon]

And we're going consumer debt, not the mortgage, just consumer debt.

[Senior Payroll Manager]

Okay.

[George Gammon]

What do you do for work?

[Insurance Worker]

Insurance. I work for Allstate.

[George Gammon]

Allstate Insurance. Do you have a degree? An associate's associates degree. Okay. What is the degree in?

[Insurance Worker]

It was like general, like general studies.

[George Gammon]

It was like a transfer degree and

[Insurance Worker]

I never went to do the full four year.

[George Gammon]

What kind of car do you drive?

[Insurance Worker]

2019 Ford F150.

[George Gammon]

All right. Do you use credit cards?

[Insurance Worker]

No. I had one a while back and realized it's not as easy to pay off as you think, and it kind of stacks up pretty fast.

[George Gammon]

You're no longer using credit cards?

[Senior Payroll Manager]

No.

[George Gammon]

All right, that makes things interesting. Are you investing currently?

[Insurance Worker]

Not really, Honestly, No.

[George Gammon]

Just going off of vibes right now.

[Insurance Worker]

Yep. Yep.

[George Gammon]

All right.

[Insurance Worker]

401. That's about it.

[George Gammon]

Are you investing in the 401k?

[Insurance Worker]

Yes.

[Special Education Worker]

Okay.

[George Gammon]

Do you rent or own a home?

[Insurance Worker]

Rent.

[George Gammon]

You're a renter and have your parents helped you cover any big purchases or expenses?

[Insurance Worker]

No.

[George Gammon]

Oh, okay. I'll tell you what's going through my mind. The associate's degree, I think is now paid off if you even went into debt for it. The truck is the worrisome part. I feel like you're a young guy, a 2019 Ford. That's gonna cost you a pretty penny, and that's a lot to save up. You're not investing, you're a renter. I'm going to guess your only debt is the car and the loan amount is $28,000.

[Insurance Worker]

That's pretty close. That's pretty close.

[Senior Payroll Manager]

What is it?

[Insurance Worker]

It's like 19.

[George Gammon]

That's a win in my Book now, I don't know if that's. It's obviously 20,000 in that realm. 20% is the question. You said it's 19.

[Insurance Worker]

Yeah.

[George Gammon]

So I don't need to be like four grand away. I'm gonna take 28 as a close win, though. It's not a fail, not an A. Is that all of your debt?

[Insurance Worker]

I got a little bit of personal. Personal debt. Just like personal loan.

[George Gammon]

Okay.

[Insurance Worker]

It's about another 5,000. And then I got a motorcycle as well.

[George Gammon]

Okay. What's left on that?

[Insurance Worker]

Just a couple, like, 2,000.

[George Gammon]

So total debt, how much do you have if you added it all up?

[Insurance Worker]

Well, let's see. About probably around 25 to 30.

[George Gammon]

Okay, so I was spot on with the 28. I just didn't factor in a couple of other debts. Well, now I take it back. I win. I win the game. Are you impressed or not impressed?

[Insurance Worker]

I'm pretty impressed. I'm impressed.

[George Gammon]

What's your game plan to pay off all this debt?

[Insurance Worker]

Man, I'm just trying to just work a lot of hours and just live below my means and try to stack up. But, yeah, you guys will like this one, too. I didn't do my taxes for a couple years. I added about another 20,000 onto. Onto my tax.

[George Gammon]

Are you still paying off the IRS debt?

[Insurance Worker]

Yeah, I got it set up on the payment schedule.

[George Gammon]

Well, now I'm wrong again, because now it puts you at like 40, $50,000 total. Right.

[Insurance Worker]

Do the taxes. Do the taxes.

[George Gammon]

Do your taxes pay Uncle Sam what he is owed? Okay, well, I wish you the best of luck getting out of debt. If you need help, you know the channel to follow.

[Insurance Worker]

Yeah. Heck, yeah.

[George Gammon]

Not Caleb Hammer. It's George Camel, baby.

[Insurance Worker]

George Camel. Sounds good.

[George Gammon]

I'm going to guess how much debt you have. Okay, don't, don't. Don't give me any hints. What do you do for work?

[College Student]

I'm actually looking for a job right now, so.

[George Gammon]

Unemployed currently, no income coming in. Do you have a degree?

[College Student]

High school diploma. I'm currently in college, about to be a junior.

[George Gammon]

Nice. Where are you going to college?

[College Student]

University of Tennessee, Knoxville.

[George Gammon]

Fantastic. Go Vols. What do you drive?

[College Student]

Drive a 2014 Honda Accord.

[George Gammon]

Oh, that's a great car. That thing will outlast you, man.

[National Sales Account Executive]

Yeah.

[George Gammon]

All right. Do you use credit cards?

[College Student]

I do not.

[George Gammon]

Are you investing? Currently, no. Ooh. Do you rent or own a home?

[College Student]

No, I am.

[George Gammon]

You're on campus or what?

[College Student]

Yes.

[George Gammon]

I just living with family.

[College Student]

I'm living with family over the summer. Starting this August, I am renting an apartment close to campus.

[Senior Payroll Manager]

Okay.

[George Gammon]

Have your parents helped you cover any big purchases or expenses?

[College Student]

Yes, they pay for my insurance, most of the big things that until I can get my feet off the ground.

[George Gammon]

Okay. I have all the information I need. Are you ready for me to reveal your reality?

[College Student]

Yes, sir.

[George Gammon]

This isn't real.

[Special Education Worker]

What is real?

[George Gammon]

I think you are completely debt free.

[College Student]

I would agree.

[George Gammon]

Pa's really got me, man. You have no debt?

[College Student]

I don't believe so. Yeah. I've mainly just been going off my dad's 529 savings plan for college.

[George Gammon]

Oh, nice. See, that was the caveat. I was like, UT Knoxville can be expensive.

[College Student]

Yeah, it definitely can.

[George Gammon]

And so I didn't know if you went into debt for that, but by the way you were talking, it felt like you either got a full ride scholarships or parents helped save for it.

[College Student]

Yeah, yeah, definitely do have a good bit of scholarships and been working quite a few jobs. I have a job lined up for the fall.

[National Sales Account Executive]

Nice.

[College Student]

University of Tennessee, Knoxville, but still looking for some for the summer, so kind of intermediary stage.

[George Gammon]

Well, I hope that you graduate debt free, get a job on the other side and stay debt free for the rest of your life.

[College Student]

I'm hoping I do.

[George Gammon]

Good luck.

[College Student]

Thank you.

[George Gammon]

What do you do for work?

[National Sales Account Executive]

I work as a national sales account executive.

[George Gammon]

That sounds fancy. And lucrative. Do you have a degree?

[National Sales Account Executive]

I do.

[George Gammon]

What's your degree in?

[National Sales Account Executive]

Communications.

[George Gammon]

Same. What kind of car do you drive? Give me the year, make and model.

[National Sales Account Executive]

2021 Jeep Grand Cherokee.

[George Gammon]

Okay. Do you use credit cards?

[National Sales Account Executive]

I do.

[George Gammon]

What is your most frequently used credit card?

[National Sales Account Executive]

Wells Fargo Cash Reback.

[George Gammon]

Okay. Are you investing? Currently?

[National Sales Account Executive]

I am.

[George Gammon]

Do you rent or own a home?

[National Sales Account Executive]

Currently renting.

[George Gammon]

Have your parents or family helped you cover any big purchases or expenses?

[National Sales Account Executive]

No.

[George Gammon]

That's all the questions I have. Here comes the big reveal. All right. You got a great job, you do have a degree, you drive a nice car, you do use credit cards. But I feel like you're fairly fiscally responsible because you're investing. I'm gonna say you don't have any debt.

[National Sales Account Executive]

That's wrong. But I don't have a lot.

[George Gammon]

Where did I go wrong?

[National Sales Account Executive]

I have credit cards that I haven't been able to pay because they are for certain things that I'm consistently paying for, like my functional diagnostic nutrition degree. So I'm putting everything on there.

[George Gammon]

Oh, see?

[Special Education Worker]

Yeah.

[George Gammon]

The degree you're working on, that would have given me a clue.

[National Sales Account Executive]

It's not a degree, it's a certification. So it's an additional, you know, additional payment. But I would say you're really close. My debt is about 7,000.

[George Gammon]

7,000. And it's all on credit cards or are there other things? Car payment but no car payment.

[National Sales Account Executive]

I have three months left on a car payment.

[George Gammon]

Okay. So small balance left on there. Dang. Well, I feel like I was a big fail on my part.

[National Sales Account Executive]

I don't think it was a fail.

[George Gammon]

But I'm happy that you have a minimal amount of debt that you're working on knocking out.

[National Sales Account Executive]

Yeah.

[George Gammon]

How much longer to knock it all out to be completely debt free?

[National Sales Account Executive]

Probably one year.

[George Gammon]

One year? Can we make it six months?

[National Sales Account Executive]

We can make it six months.

[George Gammon]

I have people who are gonna keep you accountable here watching.

[National Sales Account Executive]

Let's do it.

[George Gammon]

All right, challenge accepted. Six months from now, we're gonna hear from her and hear her debt free story. Thanks for playing.

[National Sales Account Executive]

You're welcome. Thank you.

[George Gammon]

What do you do for work?

[Senior Payroll Manager]

I am a senior payroll manager.

[George Gammon]

Do you have a degree?

[Senior Payroll Manager]

No.

[George Gammon]

What kind of car do you drive? Year make and model?

[Senior Payroll Manager]

We have two vehicles. One is a 2026 RAV4 and the other. But that's leasing. We do not own it.

[George Gammon]

Oh, ok.

[Senior Payroll Manager]

So I apologize. That does not work.

[George Gammon]

That's all right. You gave me a clue.

[Senior Payroll Manager]

I did.

[National Sales Account Executive]

I apologize.

[George Gammon]

That's okay.

[Senior Payroll Manager]

And then we own a Nissan Mazda. I think it's 2018, 2019.

[George Gammon]

What's a Nissan Mazda? Aren't those two different cars?

[Senior Payroll Manager]

Sorry. A Nissan Moreno.

[George Gammon]

Oh, yes. Murano. Okay. Okay. No, it's good. I was just. You really threw me for a loop. I was like, I've never heard of this genius marketing play on Nissan's part. Do you use credit cards?

[Senior Payroll Manager]

Yes.

[George Gammon]

What's your most frequently used credit card?

[Senior Payroll Manager]

The Chase Sapphire.

[George Gammon]

Chase Sapphire. Are you investing currently?

[Senior Payroll Manager]

No.

[George Gammon]

Do you rent or own a home? Have your parents or family helped you cover any big purchases or expenses?

[Special Education Worker]

Yes.

[George Gammon]

Oh, this is tough. Okay, so let me walk you through what's happening in my mind.

[Senior Payroll Manager]

Sure.

[George Gammon]

You don't have student loan debt because there's no degree. Unless you didn't finish, in which case you could have some lingering debt. The car, the fact that there's a lease tells me there could be debt on the other one. I don't know what year the Nissan is. Do you know?

[Senior Payroll Manager]

I believe it's a 2019.

[George Gammon]

Okay, so fairly new. You do use credit cards. You own a home. Parents help cover some expenses. I'm gonna say you are $34,000 in debt. Total.

[Senior Payroll Manager]

Higher.

[George Gammon]

What's the real number?

[Senior Payroll Manager]

70.

[George Gammon]

70. Oh, it's halfway there. Okay, what makes up the 70?

[Senior Payroll Manager]

We did have a little bit of credit card debt and then we took out a personal loan and that basically covered it along with the vehicle.

[George Gammon]

So it's like a giant personal loan. Plus which vehicles have loans on them?

[Senior Payroll Manager]

Just the Nissan.

[George Gammon]

Okay, how much is left on there?

[Senior Payroll Manager]

I believe we have 15,000, maybe a little more.

[George Gammon]

OK. Plus the personal loan adds up to 70 with the credit card debt. Oh, I was so wrong. Okay, what's the lease payment on the 20, 26 RAV4?

[Senior Payroll Manager]

I believe it's 300amonth.

[George Gammon]

Okay, and then what's the payment on The Nissan?

[Senior Payroll Manager]

About 250, I believe.

[George Gammon]

Okay, so about 550 in car payments. And you said you're not investing currently?

[Senior Payroll Manager]

No.

[George Gammon]

If you freed up those car payments, would you be able to invest or what's holding you guys back from investing?

[Senior Payroll Manager]

I think the plan would be to. We watched Dave Ramsey so good. We're trying to do the snowball effect now. So working our lowest cards and then working up to our highest. And in the middle there between our highest card is our loan. So we will work our way up.

[George Gammon]

Okay, and you guys are aligned on this, you and your spouse? Like we are getting out of this debt.

[Senior Payroll Manager]

My husband even more than me.

[College Student]

Good.

[George Gammon]

Okay.

[Senior Payroll Manager]

I want to too.

[George Gammon]

What's the game plan? How long is this gonna take to pay off 70 grand?

[Senior Payroll Manager]

He's hoping in the next like five years or so. Cause we should both be getting some increases in pay, which will be very helpful. And we don't expect any other large purchases. We ended up having to lease this car because something happened with our other car. So that's the plan.

[George Gammon]

Okay. Can I step the plan up?

[Special Education Worker]

Sure.

[George Gammon]

Could you do it in three years? If you guys got real intense, yes.

[Senior Payroll Manager]

Yeah, we probably could.

[George Gammon]

You said that so confidently. So five years is just the like, if we go easy, we can do this in five years.

[Senior Payroll Manager]

Yeah.

[George Gammon]

But if you went hard in the paint.

[Senior Payroll Manager]

Three.

[National Sales Account Executive]

Three.

[George Gammon]

I'm gonna push for three. The faster the better. You know, you got a life to live.

[National Sales Account Executive]

Yeah.

[George Gammon]

Is that your baby? That is my baby. We got a sweet baby in the world.

[Senior Payroll Manager]

I know. That's why we gotta make sure that

[George Gammon]

we're or the baby can even remember anything. Let's become debt free. That's aw, awesome. Well, I'm pushing for you guys.

[Special Education Worker]

Thank you.

[George Gammon]

Thanks for talking with me. While we play this guessing game, I'm gonna go ahead and guess that you're probably using the wrong bank. What is the wrong bank one that dings you with fees and tries to push you into debt instead of helping you get out. Well, does that bank exist? It does. In fact. It's called Fairwinds Credit Union and they're a sponsor of today's show. They wanna help you get out and part of that is not dinging you with fees. And that's why I love their no fee checking account and 35,000 fee free ATMs across the country. And that all comes with their smart bundle, which includes a high yield savings account and a Ramsey themed. So go check it all [e-mail] Ramsey guessing people's debt can get personal. What's even more personal is your information being packaged and sold on the Internet. Yes, it's true. Things like your email address, your phone number, your home address, your family's information, it's being put on these data broker sites and then sold to the people who are spamming and scamming you. So the way to avoid that is with Delete Me, another sponsor of today's video. They go into these data broker sites, hundreds of them, remove your info and send you a report of what they've done and how much time they've saved you. And to save even more, I got you 20% off through annual [e-mail]. george, I'll start with you. What do you do for work?

[Marketing Strategist]

I'm a marketing strategist.

[George Gammon]

Love that. Do you have a degree?

[Marketing Strategist]

I do.

[George Gammon]

What is it in?

[Marketing Strategist]

I have a bachelor's in media management and then a master's in psychology.

[George Gammon]

Okay, Slay, do you use credit cards?

[Marketing Strategist]

Yes.

[George Gammon]

All right, what's your most frequently used credit card?

[Marketing Strategist]

I think it's like a Chase credit card.

[Senior Payroll Manager]

Okay.

[George Gammon]

Like a Sapphire one.

[Marketing Strategist]

I think that's actually it.

[George Gammon]

Are you investing? Currently?

[Marketing Strategist]

Yes.

[George Gammon]

Do you rent or own a home?

[Marketing Strategist]

We rent.

[George Gammon]

Have your parents or family helped you cover any big purchases or expenses?

[Marketing Strategist]

No.

[George Gammon]

What kind of car do you drive? Year, make and model?

[Marketing Strategist]

A subaru crosstrek from 2021.

[George Gammon]

Ooh, that's pretty fancy. All right. That gives me a lot of good information. You got a Master's. Here's what's going through my mind. You got a Masters. Those are rarely cheap or paid for. And you drive a newer car within the last five years. You do use credit cards? I don't know if you're carrying a balance month to month. That's the iffy part. You're renting and family didn't help you, which tells me you likely have more debt than the average person who had family help, I'm gonna go $50,000 total in consumer debt.

[Marketing Strategist]

No.

[George Gammon]

How close was I? What's the real number?

[Marketing Strategist]

I think it's like 13.

[George Gammon]

Oh, way less than I thought. Okay, break down the 13. What's made up of that?

[Marketing Strategist]

It's just the car payment. We are really on top of our credit card and use it very solemnly. So we're just paying off that Subaru.

[George Gammon]

Okay, so the master's degree was cash flowed.

[Marketing Strategist]

It was actually paid for by my work. So I work for Purdue University.

[George Gammon]

Well, now I got asked, did your work pay for a car? Okay, see, that's where it got me. If work didn't pay for it, you

[Special Education Worker]

would have been right.

[Marketing Strategist]

Oh yeah, I would have been right on.

[George Gammon]

Okay, well, hey, I'm happy to be wrong that you have way less debt than I thought. What's the car payment like?

[Marketing Strategist]

299.

[George Gammon]

Okay. What are you going to do when that car payment's gone? What are you going to do with that money?

[Marketing Strategist]

We are going to buy my husband a new car.

[George Gammon]

Hey, what's he driving? Is it time for him right now?

[Marketing Strategist]

We only have one car, so just a Subaru? Yes.

[George Gammon]

So you guys are trying to share?

[Marketing Strategist]

Yeah, but I work remotely. He works remotely, so we make it work.

[George Gammon]

Ok, that's great. I love that. All right, your turn. Let's see if I can get closer on this one. What do you do for work?

[Special Education Worker]

I work in special education.

[George Gammon]

Love that. Do you have a degree?

[Special Education Worker]

No, but I'm working on it currently.

[George Gammon]

What kind of car do you drive? Year, make and model?

[Special Education Worker]

A Nissan Rogue 2020.

[George Gammon]

Do you use credit cards?

[Special Education Worker]

Yeah.

[George Gammon]

Okay, what's your most frequently used card that you pull out the most?

[Special Education Worker]

So I have one credit card and it's like just a capital one credit card.

[George Gammon]

Okay. Do you rent or own a home?

[Special Education Worker]

I rent.

[George Gammon]

Have your parents or family helped you cover any big purchases or expenses?

[Special Education Worker]

No.

[George Gammon]

Has work helped cover any big purchases or expenses?

[Special Education Worker]

No.

[George Gammon]

Okay. No degree drive A 2020. You do use credit cards? Your face said something weird when I said do you use credit cards? So told me either you barely use them or you use them a lot.

[Special Education Worker]

I don't use them a lot.

[George Gammon]

Okay.

[Special Education Worker]

They make me anxious.

[Marketing Strategist]

Yeah.

[George Gammon]

All right. Because she has such little debt and you guys are friends, I'm gonna say that you have close to no debt. Even potentially completely debt free. $0.

[Special Education Worker]

I have my car.

[George Gammon]

What's left on the car loan?

[Special Education Worker]

I think like 13,000.

[George Gammon]

Oh, okay. I think we should duke it out. See who pays off the car first?

[Special Education Worker]

She said, no. Parents have helped her. I'm like, I hope not, because they're my parents. So I was like, they better.

[George Gammon]

You guys are sisters. This just got crazier. What if you found out for the first time that mom and dad covered her whole life and they made you pay for it all?

[Marketing Strategist]

That would be great. YouTube, probably.

[Special Education Worker]

Yeah, I know.

[Senior Payroll Manager]

Well, college, yeah.

[Special Education Worker]

So I guess. Yeah.

[George Gammon]

Do they pay for your college?

[Marketing Strategist]

My undergrad, yeah.

[George Gammon]

Okay.

[Special Education Worker]

Or part of it.

[George Gammon]

And then how about you?

[Special Education Worker]

No.

[George Gammon]

No college.

[Special Education Worker]

Well, there's a reason. There's, like, a good reason. Because when I first went to college and I stopped, they were like, that was your chance, girl. And so then after that, now that I'm going back, I'm paying for it.

[College Student]

Wow.

[Special Education Worker]

Which is. Okay.

[George Gammon]

Okay. I love that. I guess 50 for you and 0 for her, but it's because I thought you were kindred spirits. After that, I went the other direct.

[Special Education Worker]

Your car payment, it's high because it's the first car I ever bought, and I had no credit, so it's like $400. It's super expensive. I know.

[George Gammon]

Well, you two are young. You got plenty of time on your side. Can we do some magic math to see what those car payments could turn into if you started investing that amount?

[National Sales Account Executive]

Sure.

[George Gammon]

Are you currently investing?

[Special Education Worker]

No.

[George Gammon]

And you are? Yeah, through work.

[Marketing Strategist]

Through work and crypto. We just contribute monthly to that.

[George Gammon]

Strictly crypto.

[Marketing Strategist]

We're kind of sprinkled around other places, but I like some microstrategy, some stuff

[George Gammon]

like that, but microstrategy. I'm learning a lot today. What? Crypto is hot right now. What are you putting your money into?

[Marketing Strategist]

I mean, bitcoin is what everybody wants into, but my. My husband really looks at everything, and he has his finger on the pulse, on, like, what's trending and what's not, and.

[George Gammon]

Sounds like a lot of work. It can be, but it's, like, his hobby at this point?

[National Sales Account Executive]

A little.

[Special Education Worker]

Yeah.

[George Gammon]

Okay, well, let's play the game. So I'm gonna pull up the investing calculator here, and what I'm gonna do is put your current age in. So what's your current age?

[Marketing Strategist]

I'm 27.

[George Gammon]

27. And when do you think you'll retire? What age do you think is realistic that you'll work until.

[Marketing Strategist]

If everything goes as planned, 55, 56.

[George Gammon]

Okay, I'm gonna go 56. So 27 to 56. Now we're gonna contribute that car payment. You said it's 300 bucks.

[National Sales Account Executive]

Mm.

[George Gammon]

So 300 contributed. And how much do you currently have across all kind of investment accounts or retirement?

[Marketing Strategist]

Maybe like 20,000.

[George Gammon]

Okay, 20. And average rate of return? I'm gonna go 10% if it's invested in the US stock market. You know, mutual funds, things like that. Not a single stock. Not crypto. So crunch the numbers for us.

[Marketing Strategist]

Okay.

[National Sales Account Executive]

Wow.

[George Gammon]

Almost a million bucks.

[National Sales Account Executive]

That's.

[George Gammon]

Is that impressive?

[Marketing Strategist]

That is impressive.

[George Gammon]

That's just your car payment. That's not including what you're investing now. That's if you never get a raise, you never contribute more than that. You could still have a million bucks at 56.

[National Sales Account Executive]

There we go.

[George Gammon]

Can we see what it'd be if you kept going to even 57? 1 more year of compound growth, what that would do. Now we're over a million million. I love to see that seven figure number. Does that encourage you to want to invest more and get out of debt faster?

[Marketing Strategist]

100%. Yeah.

[George Gammon]

I love that. Okay, your turn. How old are you?

[Special Education Worker]

24.

[George Gammon]

Oh, you're the younger sis. All right. Are you single?

[Special Education Worker]

No, I'm married.

[George Gammon]

Okay, wonderful. So you've got a spouse as well. What age do you think you'll retire?

[Special Education Worker]

I don't know. Since I'm going to be a teacher, probably like 65.

[George Gammon]

24 to 65 monthly contributions. I'm going to do your car payment, which is 400. 400. And how much do you currently have invested? Nothing.

[Special Education Worker]

I have zero.

[George Gammon]

Okay, zero invested. That's totally fine. And we're gonna do 10% annual rate of return on average. Hit crunch the numbers for me.

[Special Education Worker]

I could be rich.

[George Gammon]

$2.8 million.

[Special Education Worker]

That's insane. That is super cool.

[George Gammon]

And the numbers weren't that much different. You had a hundred bucks more going into it. And you've got a couple more years on the earlier side. Plus you're going to work later.

[Special Education Worker]

That's really, really cool. I've never thought of it that way.

[George Gammon]

I love to hear that. And that's again, 400 bucks. I mean, I recommend investing 15% of your gross income once you're debt free and you have emergency savings in place. So could you invest 15% of your income if you didn't have any debt payments?

[Special Education Worker]

Yeah, probably.

[George Gammon]

Which is more than $400, I imagine.

[Special Education Worker]

Probably combined with my husband.

[George Gammon]

Right. Think about it. If you make 100 grand household, that's 15 grand a year into investments. And so if you make 50 grand a year, that's 7,500, which is still over 600 bucks a month. If your household income is 50 grand.

[Special Education Worker]

That's a good deal. I think.

[George Gammon]

So how much do you think you could realistically invest between you and your husband every month once you're debt free? Give me a total monthly contribution, I guess combined 1000, 1500, 2000.

[Special Education Worker]

Probably more than I think, just because I feel. Yeah, probably like a thousand.

[George Gammon]

Okay, let's bump it up to 1000 and just see what happens for fun. All right.

[Senior Payroll Manager]

Holy cow.

[George Gammon]

About $7 million.

[Special Education Worker]

That's insane.

[George Gammon]

And again, that's if you guys never get a raise. You never have an employer match. That's just you guys putting away 1000 bucks from 24 to 65 if you just get intentional.

[Special Education Worker]

Well, I'm gonna talk to my husband about investing when I get home.

[George Gammon]

Are you gonna tell him, hey, follow this George camel guy on YouTube. He's a squirrely fella, but he has no.

[Special Education Worker]

I feel like I'm gonna go home and tell him what I did, and he's gonna be like, I know who that is.

[George Gammon]

Are you guys on a written budget? Do you use an app or something? Or a spreadsheet? What do you guys do to track your money and know where it's going?

[Special Education Worker]

This is so lame, but he kind of just does that.

[George Gammon]

He's a spreadsheet guy.

[Special Education Worker]

Yeah, he really likes to break all of that down.

[George Gammon]

So you have no clue what's going on with the finances unless you ask

[Senior Payroll Manager]

him a little bit.

[George Gammon]

You have to be like, hey, I

[Special Education Worker]

know how much I can spend, like, spending money wise and, like, when I have a good idea of when things are due and things like that. But as far as, like, getting them all situated, that's kind of him.

[George Gammon]

Okay, how about you? What's going on? Is your husband, like. Is he like, Mr. Spreadsheet? It sounds like he likes to get super nerdy.

[Marketing Strategist]

Well, he's an engineer, so he has a knack for that. But he loves a list, and so he has everything in a list and the date that everything comes out and what's auto, what's not. And so I'm kind of like her. He does most of that because he has such a mask.

[George Gammon]

He's just a nerd. And you guys are a little more of the free spirit. Let us. Let me live.

[Marketing Strategist]

Yes, But I like her. I know, like, when things are coming out, like, what we do, like, pay for things like that. And so, yeah, I love it.

[George Gammon]

Well, I hope this conversation encouraged you guys to stay on the path, get out of debt, build that wealth. It's very much possible. There's no excuse. Now, if you don't have $7 million in retirement when I meet you at 64.

[Special Education Worker]

No, for real. I'm excited.

[George Gammon]

I love it. Well, thanks for talking with me.

[Special Education Worker]

Yeah, thanks for sharing.

[George Gammon]

You know, guessing games are fun, but debt games are not. So the best way to live your life is without payments. No matter how much debt you have, it is worth getting out once and for all. And if you enjoyed today's episode, you're going to love this next one where I went to downtown Nashville to guess more people's debt, including going toe to toe with an NFL player. Or I guess in this case, more head to chest. Considerable height difference. So click here to watch it next or use the link in the description. Thanks for watching. We'll see you next time.