We Built A $10 Million Net Worth By Following The Baby Steps

Summary

Ramsey Everyday Millionaires: We Built A $10 Million Net Worth By Following The Baby Steps

Episode Overview In this compelling episode of Ramsey Everyday Millionaires, the Ramsey Network dives deep into the inspiring journey of Brian, an Everyday Millionaire who successfully amassed a $10 million net worth by adhering to Dave Ramsey’s renowned Baby Steps framework. Hosted by Dave Ramsey, George Kamel, and featuring insights from other Ramsey Network hosts, this episode provides listeners with actionable strategies and personal anecdotes that illustrate the effectiveness of disciplined financial planning.

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Introduction to Brian's Financial Journey

The episode opens with a warm introduction of Brian, a classmate of Dave Ramsey from the University of Tennessee, highlighting their shared background in finance.

• George Kamel: "I see on my screen you're one of those baby steps millionaires I was just talking about."
  (00:20)

Brian reveals his impressive net worth of just over $10 million, attributing his success to strategic financial planning and disciplined saving habits.

• Brian: "Just a little over 10 million."
  (00:53)

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Breaking Down the $10 Million Net Worth

Brian provides a detailed breakdown of his assets, showcasing a diversified portfolio that aligns with the Baby Steps principles.

• Brian: "I've got a paid for about 2.1 million dollar home, about 3 and a half in a Roth IRA, about 3 and a half million in a brokerage account. And like you, I am a car guy, so I've got about $400,000 worth of cars sitting in the driveway."
  (00:59)

This diversified approach underscores the importance of balancing real estate, retirement accounts, investments, and personal passions without over-leveraging in any single asset class.

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Career and Income Contributions

Brian discusses his career trajectory in medical sales, emphasizing how his substantial income played a pivotal role in his financial success.

• Brian: "I made was around 500 one year and you know, started in the, you know, $50,000 range many years ago."
  (02:26)

He highlights the significance of a high-income career in achieving financial milestones while maintaining prudent spending habits.

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Secrets to Building a $10 Million Net Worth

The core of the conversation revolves around the strategies Brian employed to reach his million-dollar milestone, strictly following the Baby Steps.

• Brian: "We saved about 40% of our income. And it, you know, it allowed my wife to be a stay at home mom for the last 30 years, but we saved and lived well, not go overboard on things."
  (03:21)

Key strategies discussed include:

1. High Savings Rate: Saving 40% of their income enabled substantial investment and financial security.
2. Debt Avoidance: Consistently avoiding and limiting debt to maintain financial freedom.
3. Lifestyle Discipline: Resisting lifestyle creep to ensure that increased earnings did not lead to proportionate increases in spending.

• Dave Ramsey: "And you avoided lifestyle creep."
  (03:51)

These practices not only facilitated wealth accumulation but also provided the flexibility to retire early and enjoy life without financial constraints.

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Financial Milestones and Achievements

Brian shares significant milestones that contributed to his net worth growth, including paying off his mortgage and investing wisely.

• Brian: "How long ago did you pay off your house?... It's been probably 15 years ago."
  (04:02)

• George Kamel: "Yeah. So that's doubled and then are over doubled and then, then you've got that increased cash flow during that time."
  (04:14)

Paying off a $1 million mortgage freed up additional funds for investment, accelerating his path to millionaire status.

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Impact of Dave Ramsey's Program

A pivotal moment in the conversation is Brian’s acknowledgment of how Dave Ramsey’s program influenced his financial habits and those of his family.

• Brian: "Your program and your work helped us along and I think more than for me, Dave, it's helped my family understand how I do things."
  (04:27)

The Baby Steps not only provided a roadmap for Brian but also instilled financial discipline and awareness in his family, ensuring that his legacy of financial responsibility would continue through generations.

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Personal Anecdotes and Class Memories

The episode takes a light-hearted turn as Brian and George reminisce about their university days with Dave Ramsey.

• Dave Ramsey: "I just wanted you to air out some dirt on Dave from your classmate days..."
  (05:02)

• Brian: "We did a couple of worked with a couple of small projects in the... we weren't ran probably in different sections and stuff."
  (05:13)

These anecdotes serve to humanize the hosts and create a relatable connection with listeners, emphasizing that financial success can be achieved regardless of one's background.

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Closing Remarks and Takeaways

As the episode wraps up, Brian expresses his gratitude towards Dave Ramsey and the program that set him on the path to financial independence.

• Brian: "It's really, I think, set a path for them as they move forward with their careers and families."
  (04:57)

• George Kamel: "Way to go. 10 million dollar net worth, ladies and gentlemen."
  (05:49)

Listeners are left with a clear message: disciplined saving, strategic investing, and adherence to proven financial principles like the Baby Steps can lead to extraordinary wealth accumulation, even for those who start without significant inheritances or advantages.

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Notable Quotes

• Brian on Saving: "We saved about 40% of our income... lived well, not go overboard on things."
  (03:21)

• Dave Ramsey on Lifestyle Creep: "And you avoided lifestyle creep."
  (03:51)

• Brian on Program Impact: "Your program and your work helped us along... set a path for them as they move forward."
  (04:27)

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Conclusion

This episode of Ramsey Everyday Millionaires serves as an inspiring testament to the power of disciplined financial planning and the effectiveness of Dave Ramsey’s Baby Steps. Through Brian's story, listeners gain valuable insights into building substantial wealth by saving diligently, avoiding unnecessary debt, and making informed investment decisions. The personal anecdotes and heartfelt endorsements reinforce the message that financial independence is attainable for anyone willing to commit to the journey.

For more inspiring stories and financial advice, tune into future episodes of Ramsey Everyday Millionaires and connect with a SmartVestor pro at RamseySolutions.com.

Transcript

[Brian]

Foreign.

[Dave Ramsey]

This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor Brian's in Chattanooga.

[George]

Hey, Brian, how are you?

[Brian]

Hey, Dave and George. How's it going, guys?

[George]

Better than we deserve, sir. Of course. I see on my screen you're one of those baby steps millionaires I was just talking about.

[Brian]

I am. And part of that, Dave too is we actually were classmates at University of Tennessee in finance. No way. When we both had hair.

[George]

Oh, wow, there it is. You learned all you needed to know at Glocker, huh?

[Brian]

Yeah, I said Glocker in the spam can.

[George]

I love it, man. That's fun. Very cool. Very cool. All right. What's your net worth, brother?

[Brian]

Just a little over 10 million.

[George]

10 million, good for you. And break that down for me a little bit by category.

[Brian]

Sure. I've got of course a paid for about 2.1 million dollar home, about 3 and a half in a Roth IRA, about 3 and a half million in a brokerage account. And like you, I am a car guy, so I've got about $400,000 worth of cars sitting in the driveway.

[George]

Oh, okay. But you got $10 million, so it's 4% of your net worth. Yeah, yeah.

[Dave Ramsey]

Can you tell some of your favorite cars out of curiosity?

[Brian]

Yeah. So I've. I've got a non Porsche 911 Turbo S. My wife just got a new Range Rover. Range Rover supercharged. It came in in December.

[George]

That's good because I heard they're going to quit making them for a little while.

[Brian]

That's what I heard as well.

[George]

Yeah. Wow, that's a beast. Both those are great cars. And you got a couple of others sitting there too. Yeah, yeah. Very cool. So you're 64?

[Brian]

Yes.

[George]

All right. I knew that. Okay, good. And how much of this did you and your wife inherit?

[Brian]

Actually about $20,000 when my dad passed away back in 2005. So not a lot.

[George]

But safe to say mathematically, you do not have $10 million because of an inheritance.

[Brian]

No. So I was already a millionaire when. When he passed away, yeah.

[George]

Wow. What is, what, what's been your career?

[Brian]

I worked in medical sales for four years. I retired, just retired two years ago and just doing some consulting on the side now and enjoying. I've got two kids that are one finishing up in May in college, one finished two years ago and both paid for full. Paid for college, no college debt. So I'm looking forward to having some grandbabies sometime soon.

[George]

Well, it's about time.

[Brian]

Yeah, I know.

[George]

Good stuff. Okay, so you made a good income because medical sales, you're making what, 2 or 300k?

[Brian]

Yeah, I think the max probably Dave, I made was around 500 one year and you know, started in the, you know, $50,000 range many years ago.

[George]

Yeah. When 50 was a lot of money. Yeah.

[Brian]

Yeah, seemed like it anyway.

[George]

Yeah. Okay, so you made really good money and you just. What do you say the secret to having $10 million at retirement at 64 years old is?

[Brian]

You know, I learned a long time ago, you know, just like you did from grandparents, you, you only buy what you can afford and you pay cash for it and you limit debt. But for me, I say we saved. I shouldn't say I because it was both of us, but we saved about 40% of our income. And it, you know, it allowed my wife to be a stay at home mom for the last 30 years, but we saved and, and lived well, not go overboard on things.

[Dave Ramsey]

And you avoided lifestyle creep.

[Brian]

Yeah, and it's made it nice now because, you know, we can do anything pretty much that we want.

[George]

Amen. How long ago did you pay off your house?

[Brian]

It's been probably 15 years ago.

[George]

Yeah. So that kicked it into overdrive too, because when you paid off the house, it was probably worth less than a million.

[Brian]

Yeah. I would say right around there. Oh yeah, yeah. Had to be.

[George]

Yeah. Okay. And so that's doubled and then are over doubled and then, then you've got that increased cash flow during that time. It's easy to save because you're making serious money. You can save 40%, still have a great life.

[Brian]

Sure. Yeah, it's been good. We've been blessed throughout the whole time and you know, of course learned a lot of things along the way. And your, your program and your work helped us along and I think more than for me, Dave, it's helped my family understand how I do things. And it's really, I think, set a path for them as they move forward with their careers and families. And I think that's what I'm most appreciative with you.

[George]

Well, thank you, brother. Well, it's a good to talk to you. That's very cool.

[Brian]

Well, I was excited to talk to George too. Man. Standing ovation in the.

[Dave Ramsey]

Oh, that's right. From the students earlier.

[Brian]

Yeah, thank you. I talked today, but it was more exciting. Talk to George.

[Dave Ramsey]

That's my. I just wanted you to air out some dirt on Dave from your classmate days, but I figure you're gonna keep.

[Brian]

Those secrets well, it was funny. I mean we. We did a couple of. Worked with a couple of small projects in the. In the rooms there that we asked to have to do but you know we weren't. Ran probably in different sections and stuff. And I think Dave had a serious girlfriend then and I didn't. So we were running different routes.

[Dave Ramsey]

It worked out for both of you, I gotta say.

[Brian]

Yeah, we both have done well.

[George]

Still my girlfriend 43 years later. So there you go. I knew that I met. I met her in Glocker in market class.

[Brian]

So.

[George]

Brian, very cool. Good to talk to you my friend. I'm proud of you. Way to go. 10 million dollar net worth, ladies and gentlemen.

[Dave Ramsey]

I need a. Where are they now? From your entire class. I know what happened to everybody. Are they all millionaires? After taking that class? Was it that good of a class?

[George]

I don't. I. I can't blame it on the class.

[Dave Ramsey]

Dave has no recollection. He was busy hanging out with his girlfriend.

[George]

I think that's it. Yeah.

[Dave Ramsey]

And he was just there so he didn't get fined.

[George]

That's it.

[Dave Ramsey]

Thanks for tuning in to Ramsey Everyday millionaires. Need help with your investments? Connect with a Smartvestor pro at ramseysolutions. Com Smartvestor or click the link in the show notes. Ramsey Solutions is a paid non client promoter of participating pros. Learn more at ramseysolutions. Com Smartvestor.