Ramsey Everyday Millionaires: Does Land Count Toward Our Net Worth If We’ll Never Sell It?

Date: November 5, 2025
Hosts: Dave Ramsey, Caleb (co-host)
Guest Caller: Kayla from Mississippi

Episode Overview

This episode addresses a classic money debate: Should your house and land be counted in your net worth, even if you never plan to sell them? Kayla calls in to settle an ongoing argument with her husband concerning whether their home and property should factor into their net worth calculation—especially since Kayla is adamant she’ll “never, ever, ever” part with them. Dave Ramsey and co-host Caleb guide her (and the audience) through the true nature of net worth, the role of liquidity, and the importance of income-producing assets in retirement planning.

Key Discussion Points & Insights

1. Does Land (That You'll Never Sell) Count in Net Worth?

• Kayla’s Dilemma:

  • Kayla doesn’t want her home and land to count in their net worth because she “would never, ever, ever sell” them.
  • Her husband thinks otherwise, leading to an ongoing disagreement.

• Dave’s Straightforward Take:

  • Net worth is simply a matter of accounting: “Net worth is simply what something is worth. The definition of net worth is an accounting function. It's a math thing, not a feeling.” (00:56 Dave Ramsey)
  • It doesn’t matter if you intend to sell; what matters is what you own minus what you owe.
  • Liquidity is a separate concept—the portion of your net worth you could easily convert to cash.

• Memorable Quote:

  • "You would get rid of your husband before you got rid of the land. You made that clear." (01:32 Dave Ramsey, in jest to Kayla’s insistence)

2. Net Worth vs. Income-Producing Assets in Retirement

• Kayla’s Concern:

  • Husband thinks high net worth means he can retire, but Kayla is doubtful because their main income is his $200,000 salary.

• Dave’s Clarification:

  • The key to retirement isn’t just high net worth, but ensuring enough net worth is in income-producing assets.
  • "What we need to retire is we need net worth that is creating an income…you can't eat [land] at retirement." (02:03 Dave Ramsey)
  • If assets like land aren’t generating rental or business income, you can’t rely on them alone to fund retirement.

3. Kayla and Her Husband’s Actual Numbers

• Their Finances:

  • $2.7 million in 401(k)s and Roth IRAs.
  • Home and land valued together at around $800,000.

• Dave’s Encouragement:

  • With $2.7 million invested, earning 10% annually could generate $270,000 per year—enough to replace their current income without touching the principal.
  • "2.7 makes 10, that's 270 without touching the 2.7 every year, right?" (04:22 Dave Ramsey)
  • Despite Kayla's disbelief, Dave assures her they've done incredibly well. He jokes that Kayla is the driving force, keeping her husband disciplined.

4. Lessons for All Listeners

• Asset Allocation and Retirement:

  • Don’t retire with all your wealth tied up in non-income producing assets—spread wealth across investments that generate ongoing returns.
  • Dave references stories of families with massive land holdings but little actual financial security due to lack of income-generating diversification.

• Business Owners Take Note:

  • If your only retirement plan is to pass a family business to your kids, you risk putting them in debt to buy you out. Make sure you have assets outside your business that can sustain your retirement.

• Quote on Family Wealth Dissipation:

  • Dave tells a story:
    “Every generation they had to sell off blocks [of land] to pay the estate taxes… nobody ever bothered to create an income. You gotta create an income.” (07:22 Dave Ramsey)
  • Lesson: Generational wealth can quickly erode without a smart income strategy.

Notable Quotes & Memorable Moments

• On Emotional Attachment to Land:
  “In your case, you would get rid of your husband before you got rid of the land. You made that clear.” (01:32 Dave Ramsey)

• On Net Worth Definitions:
  “Net worth is not about whether you sell it or not... It's a math thing, not a feeling.” (00:56 Dave Ramsey)

• Summing Up the Retirement Formula:
  “If 2.7 [million] makes 10, that’s 270 [thousand] without touching the 2.7 every year…” (04:22 Dave Ramsey)

• Kayla’s Lighthearted Stubbornness:
  “No matter whatever happens, I’m never leaving here.” (03:33 Kayla)

• Dave's Commendation:
  “Way to go, Mississippi. I love it. I’m proud of you. You did great.” (05:02 Dave Ramsey)

• On Income vs. Wealth:
  “You have to have enough of your net worth tied up in income-producing assets… Those of you that are small business people, you need to have assets outside of and in addition to your small business…” (05:51 Dave Ramsey)

Timestamps for Key Segments

| Time | Topic | |----------|------------------------------------------------------| | 00:20 | Kayla’s question: Net worth & emotional attachment | | 00:51 | Dave’s definition of net worth | | 02:03 | Difference between net worth and retirement income | | 02:41 | Kayla’s household finances (2.7M investments) | | 03:24 | Value of home and land ($800,000) | | 04:22 | Investments as income replacement in retirement | | 05:51 | General financial advice for retirees/businesses | | 07:22 | Story: generational land, estate taxes, and income |

Tone & Style

Dave and Caleb keep the conversation lively and humorous. They make friendly jokes about Kayla’s refusal to leave her home, but provide clear, practical advice rooted in financial fundamentals. The episode is educational and approachable, aiming to demystify financial concepts like net worth, liquidity, and retirement income for everyday listeners.

Key Takeaways for Listeners

• Your net worth includes all assets, even if you never plan to sell them.
• Liquidity (how easily you can access cash) is separate from net worth.
• Retirement security comes from having income-generating assets, not just high net worth.
• Don't over-concentrate net worth in non-income-producing property unless you have enough elsewhere to live on.
• Multi-generational wealth requires intentional income planning, not just asset accumulation.

End of Content Summary