I’m New to Investing—How Do I Get Started?

Summary

Ramsey Everyday Millionaires

Episode: I’m New to Investing—How Do I Get Started?
Date: October 17, 2025
Hosts: Dave Ramsey, Ken McElroy
Guest Caller: Blake (Asheville, NC)

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Episode Overview

In this engaging episode, Dave Ramsey and Ken McElroy respond to a listener named Blake, who is about to start a higher-paying job and wants to know how to begin investing. The episode focuses on practical, foundational investing advice for beginners, the importance of getting out of debt first, and a spirited defense of the American Dream and capitalism. The tone is motivating, direct, and laced with Ramsey’s signature tough-love humor.

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Key Discussion Points & Insights

Blake’s Situation and Question

• [00:09] Blake shares he's starting a new job with a $1,900/month raise, moving to $25/hour for four 12-hour shifts a week, and finally has the financial margin to consider investing.
• [01:11] He asks: “I want to start investing money. I've not had any wiggle room…by the time I’m 60.”

Dave’s Core Investing Advice

• 401(k) and Roth 401(k):
  • [01:34] If available, set up a Roth 401(k) after 90 days at the new job.
  • [01:43] “That means it’s going to grow tax free, but you’re gonna pay taxes on the money that you put into it now, which is whoop deep, Dee. No big deal. And they’re gonna match it probably…which is okay.” – Dave Ramsey
• Mutual Funds:
  • [01:51] Invest in growth, growth and income, aggressive growth, and international mutual funds.
  • Seek funds with a track record of 5 years or, preferably, 10 years.
  • Compare options based on average annual returns.
• Contribution Amount:
  • [02:32] "We recommend you put 15% of your income, not more, not less, into your 401k. Now that is if you are debt free and have your emergency fund in place of three to six months of expenses. Is that true?" – Dave Ramsey

The Priority: Debt Elimination Before Investing

• [03:06] Blake confirms he still has $36,000 in student loans.
• [03:20] “I’m going to attack that like my hair is on fire.” – Dave Ramsey
• Ramsey’s process:
  • Use the raise and tighter budgeting to pay off debt aggressively, targeting one year to clear the student loans ($3,000/mo x 12 = $36,000).
  • Leverage weekend side gigs for extra income.

Motivation, Side Hustle, and Acceleration

• [03:46] Ken suggests Blake’s weekends are a prime opportunity to accelerate debt payoff.
• [03:54] Blake details his event production side gig (concerts, weddings, corporate events).
• [04:13] Dave encourages relentless hustling until debt is gone: “I’d be working all the time for a short period of time…because the faster you get out of debt, the faster you get to invest, the faster you’re wealthy. Hello.”

The American Dream & Mindsets About Wealth

• [04:40] Ken and Dave push back on negativity about capitalism:
  • Ken contrasts negative social media narratives with Blake’s situation.
    • [05:16] “This is a separate narrative than what you hear on TikTok and Facebook and all the things. This is the real deal here. So I applaud you, Blake, because you are. The numbers change when people do.” – Ken McElroy
  • [05:33] Dave critiques the “capitalism is dead” narrative:
    • “The communist professors have put out the poll. The capitalism is dead...you need to keep in mind where this crap is coming from. Yeah, okay. So capitalism is not dead. As a matter of fact, it is the best way in human history at this particular moment in time.”
• [06:22] Dave highlights the opportunity for young people:
  • “If you are right now in your 20s, you have the most opportunity to build wealth the fastest of any time, in any period, in any location since man began walking the earth beside Eve. Old Adam, remember him? ...This is the best moment in time where I, in my 20s, right now, broke. I could be a millionaire so freaking fast, it would blind you.”

No “Victim” Mentality; Focus on Action

• [07:03] Dave lampoons “victim mentality,” contrasts it with a proactive approach:
  • “If you sit around and suck your communist thumb and swine about capitalism and wages and house prices while living in your mother's basement typing on your $2,000 iPhone instead of working your little butt off, then you deserve what you get because you're signing up for victim mentality. We don't do victim around here. We do Victor. Blake is a Victor.”
• [07:35] Ken and Dave dismiss the idea that protest or online negativity drives real economic progress.
• [07:58] Dave emphasizes the ease of launching businesses in the digital age, noting that failure is just a step on the path:
  • “…you can just decide and I’m in business. And a minute and a half later you have a website and Shopify, set the stinking thing up and you start selling your little idea. And then when it fails, you can start another one next week...”

Closing Motivation

• [08:30] Ken: "Blake just got a promotion and he has got a side hustle on the weekend. If he can do it, you can do it."

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Notable Quotes & Memorable Moments

• On Roth 401(k):
  • “That means it’s going to grow tax free, but you’re gonna pay taxes on the money that you put into it now, which is whoop deep, Dee. No big deal…” – Dave Ramsey [01:43]
• On urgency to get debt free:
  • “I’m going to attack that like my hair is on fire.” – Dave Ramsey [03:20]
• On American Dream skepticism:
  • “...here’s a young man who is on the precipice of realizing the American dream, and he’s calling in with a question like this. … This is the real deal here.” – Ken McElroy [05:16]
• On opportunity:
  • “This is the best moment in time where I, in my 20s, right now, broke. I could be a millionaire so freaking fast, it would blind you.” – Dave Ramsey [06:34]
• On choosing action over victimhood:
  • “We don’t do victim around here. We do Victor. Blake is a Victor.” – Dave Ramsey [07:05]
• On modern ease of starting businesses:
  • “And a minute and a half later you have a website and Shopify, set the stinking thing up and you start selling your little idea. And then when it fails, you can start another one next week.” – Dave Ramsey [07:58]
• On role models:
  • “Poster child, that guy right there, man. He’s a stud...That guy’s going places, right? You don’t want your daughter marrying a dreamer...” – Dave Ramsey [07:08]

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Timestamps for Key Segments

• Blake’s new job and raise: [00:09] – [01:08]
• Investing basics (401k, Roth, mutual funds): [01:28] – [02:53]
• Debt-first principle before investing: [03:06] – [03:46]
• Side hustles and speeding up debt payoff: [03:46] – [04:31]
• Refuting pessimism about wealth-building: [04:40] – [08:30]
• Hosts’ motivational send-off: [08:30] – [08:37]

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Summary Takeaways

• New to investing? Start with your work retirement plan, ideally a Roth 401(k), choosing strong, long-term mutual funds.
• But—investments wait: if you have significant debt and no emergency fund, focus everything on becoming debt-free first.
• Use all available income, including side hustles, to erase debt with urgency ("like your hair is on fire"), then invest 15% of your income for the long haul.
• Ignore pessimistic media and victim mindsets: the opportunity to build wealth in America is alive and well, and real stories like Blake’s prove it.
• The only barrier is personal action and discipline. Anyone can replicate Blake’s blueprint: work hard, avoid excuses, and build wealth step by step.

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For more investing help, visit RamseySolutions.com.

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(Summary skips advertisements and sponsorship messages.)

Transcript

[Narrator]

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

[Dave Ramsey]

At RamseySolutions.com SmartVestor Blake's with us in Asheville, North Carolina. Hi, Blake. How are you?

[Blake]

I'm good, Mr. Ramsey. How are you?

[Dave Ramsey]

Better than I deserve. What's up?

[Blake]

So I'm starting a new job next week. I'm leaving my current job tomorrow.

[Dave Ramsey]

Wow, cool. Big deal, big race.

[Blake]

Yeah, big deal. It's it on paper. It's more money, which I'm excited about.

[Dave Ramsey]

How's it on paper and not real?

[Blake]

Because it's not in my bank account yet.

[Dave Ramsey]

Oh, because it hadn't happened yet. Okay.

[Ken McElroy]

Yeah, I thought that was a. I thought that was a congressman on Meet the Press for a second with that answer.

[Dave Ramsey]

On paper.

[Ken McElroy]

On paper.

[Dave Ramsey]

The. The promise is that we're going to get a raise. Okay, I got you. Yeah.

[Blake]

About nineteen hundred dollars more a month, guaranteed.

[Dave Ramsey]

Okay, cool.

[Blake]

Starting out 25 an hour, 4 days a week, 12 hour shifts, long shifts. But I get the whole weekend off, which is a blessing from what I'm currently doing.

[Dave Ramsey]

Okay.

[Blake]

So I'm just kind of looking. I want to start investing money. I've not had any wiggle room and my financial situation to start investing. So I'm kind of just kind of looking where and what I need to do to start. Start investing. And by the time I'm 60.

[Dave Ramsey]

Yeah, you'd have some. You have some money. Good for you. So do you have a 401k at the new place?

[Blake]

I'll have to set one up after 90 days.

[Dave Ramsey]

Okay, do the Roth 401K, Ross.

[Blake]

Okay.

[Dave Ramsey]

That means it's going to grow tax free, but you're gonna pay taxes on the money that you put into it now, which is whoop deep, Dee. No big deal. And they're gonna match it probably. And if they do, they match it with non Roth, which is okay, and pick good growth stock mutual funds. You can go back and listen to this later if you want to, but there's four types of mutual funds we invest in. I invest in, Ken invests in. It's what we teach. Growth, growth in income, aggressive growth and international. Those are the four categories you're looking for. And you're looking for long track records. Five years or more on those, preferably 10 years or more, but long track records. And so if you've got two growth funds, you can look at them and go, okay, this one has a 10 year track record and it is average 12%. And this one has an eight year track record. And it is averaged 11%. Oh, I'm going with the other one. Okay. You know what I'm saying? That's how. That's how you're looking at it. It's not real hard. And they can. They can show you every bit of that in the HR stuff with your 401k when the 90 days comes up. And we recommend you put 15% of your income, not more, not less, into your 401k. Now that is if you are debt free and have your emergency fund in place of three to six months of expenses. Is that true?

[Blake]

That is not.

[Dave Ramsey]

Okay, then we don't need to start investing yet. We need a first investment is to get the debt paid off so that you've got the money to invest.

[Blake]

Okay.

[Dave Ramsey]

How much debt have you got?

[Blake]

I have 36,000 in student loans.

[Dave Ramsey]

Okay. I'm going to attack that like my hair is on fire.

[Blake]

Yeah, that's what I was thinking. I'm going to be in a good position next month especially start attacking that.

[Dave Ramsey]

Yeah, I mean, you got an extra 1900 plus you can squeeze your budget down. So 3000 doll and times 12 is 36,000. You're done in one year, you got a $2000 raise and I'm pulling another thousand out of your party budget and you're going to get out of debt in a year.

[Ken McElroy]

And those weekends. So you got some time there.

[Dave Ramsey]

Yeah. Go make some money on the weekends. Let's do it even faster.

[Blake]

Yeah, I do. I do have a weekend kind of gig.

[Dave Ramsey]

Cool. What do you make?

[Blake]

It's just depending on what it is. I do. I work in a production event production. So I do. I got my degree in theater focusing and lighting design. So I do like concerts and weddings, corporate events.

[Dave Ramsey]

Okay.

[Blake]

And just depending on the position, it depends on the.

[Dave Ramsey]

Yeah, I'd be working all the time for a short period of time. If they don't have one of those gigs going, I'd be doing something else. Okay. Lots of stuff going on in your area there in Nashville. Lots of things you can lay your hand to as a temporary thing because the faster you get out of debt, the faster you get to invest, the faster you're wealthy. Hello.

[Blake]

Yeah.

[Dave Ramsey]

So that's the way we're looking at this thing. That's how we're going to go at it. Really good question, sir. Congratulations on moving on up. I like it. I like it. I like it.

[Ken McElroy]

By the way, just got to say this real quick because we continue to see this stuff on social media and in traditional media about poll Came out from Gallup, just came out yesterday. The American people losing faith in capitalism. Is the American dream alive and well? And all this crap that gets put out there. And I just want to point out, here's a young man who is on the precipice of realizing the American dream, and he's calling in with a question like this. So I just want to contrast all the stuff you hear versus here's a real young man who's got it figured out, and he's going to get debt free and he's going to be a multimillionaire because he's doing this early on. So this is a separate narrative than what you hear on TikTok and Facebook and all the things. This is the real deal here. So I applaud you, Blake, because you are. The numbers change when people do.

[Dave Ramsey]

Guys, when you've been reading these things, you're being lied to.

[Ken McElroy]

Yeah, that's right.

[Dave Ramsey]

The communist professors have put out the poll. The capitalism is dead, and the communist professors are on payroll at the college that was financed with your freaking student loans. You need to keep in mind where this crap is coming from. Yeah, okay. So capitalism is not dead. As a matter of fact, it is the best way in human history at this particular moment in time. If you are right now in your 20s, you have the most opportunity to build wealth the fastest of any time, in any period, in any location since man began walking the earth beside Eve. Old Adam, remember him? Yeah. Since then, all the way to now. This is the best moment in time where I, in my 20s, right now, broke. I could be a millionaire so freaking fast, it would blind you. There is so much opportunity. But if you sit around and suck your communist thumb and swine about capitalism and wages and house prices while living in your mother's basement typing on your $2,000 iPhone instead of working your little butt off, then you deserve what you get because you're signing up for victim mentality. We don't do victim around here. We do Victor. Blake is a Victor.

[Ken McElroy]

That's exactly right. He's going to get it.

[Dave Ramsey]

Poster child, that guy right there, man. He's a stud. Let me tell you, if he's single and you got a daughter over in Asheville, you need to try to tell her to find him, because that one's a keeper right there. That guy's going places, right? You don't want your daughter marrying a dreamer. They'll be in your basement. Or, you know, I'm going to be. I'm going to. What do you do? I'M an activist. I pick it against capitalism. Yeah. God help me. Geez, get away from my kid.

[Ken McElroy]

Because you know, the captains of industry are looking on the streets of Chicago and New York and LA for all those placards, those poster boards are making a difference. It's just ridiculous.

[Dave Ramsey]

You think I make a single decision at Ramsey based on those morons? Absolutely zero. Okay? Just zero. So nobody does. People that are doing things don't have time to watch that garbage.

[Ken McElroy]

That's right.

[Dave Ramsey]

You know, so yeah, I get, I get aggravated. But sure, that's a good point, Ken. That truthfully, the digital age, you can just decide and I'm in business. And a minute and a half later you have a website and Shopify, set the stinking thing up and you start selling your little idea. And then when it fails, you can start another one next week. I mean, it's just the most wonderful time to be alive and make money and help people. Yeah, it's an amazing moment in time.

[Ken McElroy]

Blake just got a promotion and he has got a side hustle on the weekend. If he can do it, you can do it.

[Dave Ramsey]

But he's been destroyed by $36,000 worth of student loan debt. He's hopeless. He'll never make it. The system is rigged against poor Blake.

[Narrator]

Thanks for tuning in to Ramsey Everyday millionaires. Need help with your investments? Connect with a smartvestor [e-mail] smartvestor or or click the link in the show notes. Ramsey Solutions is a paid non client promoter of participating pros. Learn [e-mail] SmartVestor.