How We Became Millionaires and Built a Lasting Legacy

Summary

Summary of "How We Became Millionaires and Built a Lasting Legacy"

Podcast Information:

• Title: Ramsey Everyday Millionaires
• Host/Author: Ramsey Network
• Episode: How We Became Millionaires and Built a Lasting Legacy
• Release Date: May 14, 2025

In this emotionally charged and insightful episode of Ramsey Everyday Millionaires, hosts from the Ramsey Network, including Dave Ramsey and Ken Coleman, engage with James, a 45-year-old manufacturing manager and self-made millionaire. James shares his inspiring journey to wealth, the impact of personal tragedy on his financial legacy, and the core principles that enabled him to build and sustain his wealth.

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James’ Financial Journey

James opens up about his path to becoming a millionaire without any inheritance. Starting his career in the police force with a modest salary of $37,000 in 2002, he transitioned into the business sector, leveraging his business degree to climb the financial ladder.

• Net Worth Breakdown ([00:33]):
  • Retirement Accounts: $1.2 million, including a Roth 401(k)
  • Investments: Mutual funds and personal stocks
  • Emergency Funds and Savings: $100,000
  • Personal Assets: $100,000 in jewelry, vehicles, and firearms
  • Home Equity: $250,000 (actively paying off his mortgage)

James emphasizes the importance of the Ramsey Network’s Baby Steps, currently working towards Baby Step Seven.

Notable Quote:

"If you guys are young and you're getting married, please, please, please get a life insurance policy and set up an emergency fund because emergencies are going to happen." — James ([04:12])

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Overcoming Personal Tragedy

A pivotal moment in James' life was the passing of his mother in 2023. Despite already being a millionaire, this loss added $250,000 through a life insurance policy, which he allocated towards his home and a legacy fund for his boys.

• Impact of Loss ([03:00] - [06:16]):
  • James shares the emotional turmoil following his mother’s passing and how it reinforced his commitment to financial stability and legacy building.
  • The community's support, including a graduation event hosted for his sons by the school board, underscores the interconnectedness of personal and financial resilience.

Notable Quote:

"I need something light-hearted. I just need to relax and just go into work. So I put on the Dave Ramsey show." — James ([05:20])

James recounts a transformative moment inspired by Mitch Albom on Dave Ramsey’s show, which helped him find peace and reaffirm his financial and personal goals.

Notable Quote:

"You cannot be mad at God, but you can cherish God for giving you those years together." — James ([05:45])

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Key Financial Lessons and Principles

Throughout the conversation, James distills several key principles that contributed to his financial success and legacy creation:

1. Live Below Your Means:

   • Consistently spending less than you earn is foundational to wealth accumulation.

2. Avoid Debt:

   • Eliminating debt early on allows for greater investment and savings potential.

3. Invest Wisely:

   • Diversifying investments through retirement accounts, mutual funds, and personal stocks helped grow his net worth.

4. Emergency Funds:

   • Maintaining a robust emergency fund ensures financial stability during unforeseen events.

5. Life Insurance:

   • Securing a life insurance policy provided financial support and legacy for his family during a time of crisis.

6. Faith and Values:

   • Upholding strong personal values and faith played a crucial role in navigating both financial decisions and personal hardships.

Notable Quote:

"Honestly value your faith, value your friendships and your families." — James ([04:12])

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Building a Lasting Legacy

James underscores the importance of leaving a legacy for his children. By achieving millionaire status by age 45, he not only ensured financial security but also set a strong example for his sons.

• Legacy Planning ([02:06] - [07:16]):
  • Allocation of life insurance proceeds to support his children’s future.
  • Emphasis on imparting financial wisdom and values to the next generation.

Notable Quote:

"I can leave a legacy for our boys." — James ([05:55])

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Conclusion and Encouragement

The episode concludes with Dave Ramsey highlighting that 89% of America’s millionaires are self-made, debunking the myth that wealth is predominantly inherited. James’ story serves as a testament to the attainability of the American Dream through disciplined saving, investing, and steadfast personal values.

Notable Quote:

"The American dream is not dead." — Ken Coleman ([08:06])

Hosts reinforce the message that with the right strategies and mindset, anyone can achieve financial independence and build a lasting legacy.

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Final Thoughts: James' journey from a modest salary to a $1.65 million net worth exemplifies the principles of financial discipline, strategic investing, and the importance of legacy planning. His story not only inspires but also provides actionable insights for listeners aspiring to achieve similar financial milestones.

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Key Takeaways:

• Start Early: Begin saving and investing as soon as possible.
• Diversify Investments: Spread your investments across various assets to mitigate risk.
• Protect Your Family: Secure life insurance and build an emergency fund.
• Maintain Strong Values: Let faith, family, and friendships guide your financial decisions.
• Legacy Matters: Plan and act to ensure your wealth benefits future generations.

James’ heartfelt narrative and practical advice make this episode a valuable resource for anyone aiming to build wealth and leave a meaningful legacy.

Transcript

[Dave Ramsey]

Foreign.

[Ken Coleman]

This episode is brought to you by SmartVestor. Connect with an investing pro near you.

[Dave Ramsey]

At RamseySolutions.com SmartVestor James is in Baltimore, Maryland. Hey, James, how are you?

[James]

I'm doing great, Dave.

[Dave Ramsey]

How are you guys doing? Better than I deserve. I understand you're a baby steps millionaire, sir.

[James]

I am a baby steps millionaire. Congratulations and blessed to be talking to both of you guys. Thank you very much, sir.

[Dave Ramsey]

You too. Congratulations. How much is your net worth?

[James]

My net worth is 1.6 million.

[Dave Ramsey]

1.65. All right, and give me a little breakdown on the mix of that. What's it in? Real estate and retirement. What else? How does it break out?

[James]

So I've got 1.2 in retirement, including my Roth 401k. I've got some mutual funds, some personal stocks. I've got 100,000 in emergency funds and savings. Got approximately 100,000 in jewelry, vehicles, and some guns. I've got about 250,000 equity. Equity, excuse me, in my home. It's not fully paid for yet, but I'm working on that right now. Getting on baby step seven.

[Dave Ramsey]

Good for you. How old are you?

[James]

I'm 45.

[Dave Ramsey]

So you're 45 and you're a millionaire. How much of this 1.65 million did you inherit?

[James]

I didn't inherit any of it. I did get a life insurance policy of 250,000, which 50,000 I put towards our house. We moved back up to Maryland and 200,000 into a fund for my boys in their mom's honor and her legacy.

[Dave Ramsey]

And that's listed in this net worth.

[James]

Here it is.

[Dave Ramsey]

Okay. How long ago was that?

[James]

20, 23 when she passed.

[Dave Ramsey]

So you were already a millionaire before this happened?

[James]

I was. I was already a millionaire before this happened.

[Dave Ramsey]

All right, cool.

[James]

That was the goal for her and I when we, we started having kids was that we wanted to get out of debt and we wanted to become a millionaires to leave them a legacy.

[Dave Ramsey]

Excellent. Way to go. What's your career?

[James]

Yes, sir, I am currently a manufacturing manager.

[Dave Ramsey]

Okay. Four year degree. Four year degree in what?

[James]

In business.

[Dave Ramsey]

Okay.

[James]

So I actually graduated in 2002 and went right into the police force making $37,000 a year.

[Dave Ramsey]

Oh, wow.

[James]

That. For a few years. And then I, I left that career and went into business.

[Dave Ramsey]

Gotcha. Okay, cool. So you're 45. You're worth 1.65 million. 250 of that came late after. From your mom's passing, after you were already a millionaire. But someone that's 25 and is listening. You became a millionaire by the time you were, you know, just a little over 40 years old. Can they still do that today?

[James]

Absolutely. Absolutely they can.

[Dave Ramsey]

What are you telling the secret, David?

[James]

It was my wife that passed away. Oh, I'm sorry, mother.

[Dave Ramsey]

Oh my.

[James]

My mom unfortunately doesn't want this either. But.

[Dave Ramsey]

No, I misunderstood. Whoa. That's tragic. I'm so sorry. I drove by that wrong. Oh my. Oh, wow. Okay. And you got two kids.

[James]

I do have two kids.

[Dave Ramsey]

How old are they?

[James]

15 year old.

[Dave Ramsey]

Oh, wow.

[James]

13 and 15.

[Dave Ramsey]

So the picture that we've got here, that's got your wife in it, right?

[James]

Yes, sir.

[Dave Ramsey]

Okay.

[James]

Wow. And that is at the. That is at the boys graduation. So my wife was a substitute teacher back in Virginia. And the president of the school board called me up one day and he said, hey, listen, we know your wife and we know your situation. We would love to do a. And try to hold it in. We would love to do a graduation for your boys. So they got, they got at least 150, 200 people out to our house and they did a graduation for my kids.

[Dave Ramsey]

Oh my.

[James]

So they are high school graduates.

[Dave Ramsey]

Wow, that's amazing. Yeah.

[James]

Very cool.

[Dave Ramsey]

Very, very cool. Well, thank you. Thanks for sharing this. What will you tell people? The key to becoming a millionaire is.

[James]

Honestly value your faith, value your friendships and your families. I been following you for 15 years. You know, if you guys are young and you're getting married, please, please, please get a life insurance policy and set up an emergency fund because emergencies are going to happen. And just live, live well below your means and never shy away from your faith. And Dave, if I can share a story with you guys, it'll take me. Sure. So when we found out that my wife was terminal, of course I was just beside myself. And I basically started just to just a spiral down the path of, you know, God, where are you at? What am I doing? I couldn't stop crying. And I went into work the next day and I'm driving in, I stopped and get something to drink. I can't stop crying. And I said, you know what? I need something light hearted. I just need to relax and just go into work. So I put on the Dave Ramsey show. And Dave, that day you had Mitch Albom on the show.

[Dave Ramsey]

Oh my.

[James]

And that, that forever changed my life. And I almost crashed my car listening to what Mitch was saying because, you know, Mitch lost a young child.

[Dave Ramsey]

Yes.

[James]

And I was like, I can't listen to this. God, are you trying to tell me something? And he Said, which something that I said at my wife's service that I will never, ever forget, Dave. And it was, you know, I was mad at God for the longest time. And I said, mitch, I am so mad at God right now because he's getting ready to take my wife away. And he said, you cannot be mad. You cannot be mad at God, but you can cherish God for giving you those years together. So I said, thank you, Lord, for giving me the 17 years that I had with my wife and to help us make and become millionaires at 45 years old. And now I can leave a legacy for our boys.

[Dave Ramsey]

For those of you don't know, Mitch wrote Tuesdays with Maury, which was a huge seller and turned into a movie. And he's a sports writer in Detroit by trade, but also had, I think, the three now three bestsellers, if I were. If I remember correctly. But I do remember promoting that second book, which was about the loss of his son. Yeah, yeah.

[James]

Yes.

[Dave Ramsey]

That's a long time ago, too. What year was that?

[James]

I think two. 2022.

[Dave Ramsey]

Yeah. Really?

[James]

When I found. We found out that she was terminal 2021. She did pass in 2023. So.

[Dave Ramsey]

Okay, yeah, I remember. I've had him on a couple times. I've met him and known him from talk radio. We did a talk radio show for a while, but. Wow, that's amazing. That's powerful, dude. Thank you for sharing that. I appreciate you joining us. James, you're a hero. What a wonderful. What a horrible, tragic, and simultaneously wonderful story. You're incredible.

[Ken Coleman]

Wow.

[Dave Ramsey]

So the life insurance was there and that added to it. Now I'm. I'm kind of. I'm kind of on my heels here. I don't know what I'm going to say after this, but. Well, you know, the thing I always want to illustrate is, is that if I can, when I talk to a baby steps millionaire is. 89% of America's millionaires are not millionaires because of an inheritance, including him. He was already a millionaire before this happened. Okay. So they become millionaires by saving and investing in their 401k, 1.2 million in retirement for him and by getting their home paid off. And he's in the process of paying his home off now. And it's just really important for everybody to hear that because that means you can do it. And you can't believe these characters are out there saying, the American dream is dead. Right, Ken?

[Ken Coleman]

That's right. It's not. And another thing that this emphasizes, while he didn't need it financially. Term insurance from our friends at Xander's. What a blessing this life insurance policy was.

[Dave Ramsey]

Yeah.

[Ken Coleman]

And what it will turn out to be for those. You heard it.

[Dave Ramsey]

Those boys. Yeah.

[Ken Coleman]

So that's why we preach term life insurance. It matters.

[Dave Ramsey]

Absolutely.