When Do We Stop Investing and Start Giving?

Summary

Ramsey Everyday Millionaires: Episode Summary – "When Do We Stop Investing and Start Giving?"

Introduction

In the enlightening episode titled "When Do We Stop Investing and Start Giving?" from the Ramsey Everyday Millionaires series, hosts from the Ramsey Network delve into the pivotal question of balancing wealth accumulation with philanthropy. Released on March 14, 2025, this episode features insights from Dave Ramsey, John Delony, and other Ramsey Network experts as they guide listeners on when and how to transition from focusing solely on investing to embracing the act of giving.

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Caller’s Financial Journey and Inquiry

Corey's Financial Profile

The episode begins with a call from Corey in Detroit, Michigan, who outlines his and his wife's robust financial standing. Corey shares:

• Net Worth and Investments: "We're currently at around 900,000... we have 210 457s. We currently max out our Roth, our 457s every year." (00:40)

• Real Estate Holdings: "We have two additional properties besides our single residence... And those are paid for?" (01:02)

Corey and his wife, both teachers, benefit from a combined pension of approximately $320,000, contributing to their substantial net worth.

The Central Question

Despite their financial success, Corey poses a heartfelt question: "When do we stop building our wealth and when do we start giving it away?" (01:20). This inquiry sets the stage for a profound discussion on the intersection of wealth management and philanthropy.

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Balancing Investing and Giving

Dave Ramsey’s Guidance

Dave Ramsey acknowledges Corey’s success, noting, "You guys are in great shape... So you get to do whatever you want." (04:37). He references the Ramsey Baby Steps, emphasizing that while Corey and his wife have exceeded the typical 15% investment recommendation, they have the flexibility to adjust their financial strategies.

Strategic Giving Recommendations

Ramsey suggests a balanced approach:

1. Maintain Investment Levels: Continue investing a sustainable portion, recommending reverting to the prescribed 15% (04:48).

2. Allocate for Giving: Dedicate a portion of income specifically for philanthropy. For instance, if reducing investments from 35% to 15%, the remaining 20% could be earmarked for giving (05:00).

Ramsey encourages immediate action in incorporating giving into their financial plan, highlighting the importance of aligning donations with personal values and meaningful causes.

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Philosophy of Generosity

John Delony’s Perspective

John Delony provides a deeper philosophical outlook on giving:

• Generosity as a Lifestyle: "Generosity is a position. It's a stance you take on the world... giving is a way of being." (02:17). He emphasizes that generosity should permeate daily life, not be confined to future plans.

• Practical Acts of Kindness: John illustrates simple yet impactful ways to give, such as tipping a waitress generously or assisting a fellow parent with tuition costs (03:00).

• Spiritual and Emotional Benefits: He underscores that giving enriches one’s spirit, marriage, and family life, advocating for generosity as a means to personal fulfillment and societal contribution.

Dave Ramsey Reinforces the Message

Ramsey echoes John’s sentiments, advocating for substantial and consistent giving: "If I was in your position, Corey, I would be giving a substantial chunk. Yes, Consistently correct to something that I deeply connected to." (07:14). He underscores the importance of connecting donations to personal stories and passions.

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Implementing a Giving Strategy

Immediate Action and Consistency

Both Ramsey and Delony stress the importance of starting to give immediately, utilizing available financial margins to support causes that resonate personally. They advise:

• Finding Meaningful Causes: Select organizations or initiatives that align with personal values and life stories to ensure passionate and sustained support.

• Incorporating Small Acts of Kindness: Engage in everyday acts of generosity to cultivate a giving mindset and integrate philanthropy into daily routines.

Balancing Investment and Giving

The hosts recommend a pragmatic approach to financial planning, where investing and giving coexist harmoniously:

• Budgeting for Philanthropy: Allocate specific percentages of income to both investment and giving, ensuring that neither aspect is neglected.

• Flexible Giving Practices: Adapt giving strategies based on financial growth and changing life circumstances, maintaining a dynamic balance between accumulation and distribution of wealth.

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Conclusion

The episode "When Do We Stop Investing and Start Giving?" offers a comprehensive exploration of the delicate balance between building wealth and embracing philanthropy. Through Corey’s financial narrative and the expert advice of Dave Ramsey and John Delony, listeners gain valuable insights into integrating generosity into their financial strategies. The key takeaway is that giving should not be a futuristic goal but a present practice, enriching both the giver and the broader community.

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Notable Quotes

• Dave Ramsey (04:37): "You guys are in great shape... So you get to do whatever you want."

• John Delony (02:17): "Generosity is a position. It's a stance you take on the world... giving is a way of being."

• Dave Ramsey (07:14): "If I was in your position, Corey, I would be giving a substantial chunk. Yes, Consistently correct to something that I deeply connected to."

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Timestamp Reference

• 00:40 – Corey discusses current net worth and investments.
• 01:02 – Corey elaborates on real estate holdings.
• 01:20 – Corey poses the central question about wealth and giving.
• 02:17 – John Delony shares his philosophy on generosity.
• 03:00 – John Delony provides examples of practical giving.
• 04:37 – Dave Ramsey acknowledges the caller’s financial status.
• 04:48 – Ramsey references the Baby Steps and investment guidelines.
• 05:00 – Ramsey suggests allocating funds for giving.
• 07:14 – Ramsey emphasizes the importance of substantial and meaningful giving.

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This summary encapsulates the essence of the episode, providing listeners with a clear understanding of how to balance continued investment with meaningful giving, enriched by expert advice and real-life financial scenarios.

Transcript

[Dave Ramsey]

This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor Corey's gonna start us off. John in Detroit, Michigan. Corey, how can we help today?

[Corey]

Thank you for taking my call.

[Dave Ramsey]

You bet. What's going on?

[Corey]

My wife and I are kind of trying to think in the future and we know that our wealth is gonna be significant and we're just trying to figure out when do we start to give.

[John]

Yes.

[Dave Ramsey]

Tell us about this wealth. We know we're going to be wealthy. Give us a picture of what's going on and when it happens.

[Corey]

We're currently at around 900,000 and my wife and I are teachers, so we have a pension as well. He's about 320. In Roths, we have 210 457s. We currently max out our Roth, our 457s every year. And then we have two additional properties besides our single residence.

[Dave Ramsey]

And those are paid for?

[Corey]

Yes.

[Dave Ramsey]

So what's your net worth? 900.

[Corey]

Around 900.

[Dave Ramsey]

Okay, so what is the question? I love how John answered. He's absolutely right. So what, what is the specific giving strategy or question marks you have around this? What are you pondering?

[Corey]

So we live comfortably as we are and as we're saving and our kids, colleges are taken care of and our goals, like, are set and we know we'll achieve our goals. The question is like, when do we, when do we stop building our wealth and when do we start giving it away?

[Dave Ramsey]

What if it's both and exploring that part?

[John]

It's both. And do you all not give at all right now, at this moment?

[Corey]

No.

[John]

Okay. What has inspired the question about giving?

[Corey]

We sat down and we've paid off our properties. We are, I mean, we're saving 35% of our income and we still are comfortable. So we're realizing that we have an excess.

[Dave Ramsey]

Yeah. But back to John's question. Is there a specific cause, something that has spurred this on where you want to give? You're wondering about it.

[Corey]

We're maxed out. We have a child that's going to be leaving daycare going into kindergarten. That's when we kind of really sat down. What do we do with this additional money? So we're trying this to figure out, do we continue investing, do we keep building wealth or at what point do we start to share?

[Dave Ramsey]

You do both.

[John]

My honest answer would be you start to share years ago. Because I think generosity is a position. It's a stance you take on the world when you look at giving as a number. We'll start doing X when we get there. What most people find is their life continues to grow, their needs and their expenses grow with them. And that number, just the finish line keeps moving and moving and moving. So giving is a way of being. It's, it's a, it's a way of going through the world. Saying I got struck by lightning in that I married well, my jobs have been stable, I've worked out, I was left in inheritance, I worked really hard, I owned a small porta potty company and then all of a sudden some guy bought 40,000 acres next to us and now I'm a millionaire. Like whatever the posture is or I'm a person of faith and everything. Every single breath I takes a blessing. And so I'm a pass through. I'm going to let this thing, I'm going to let so much of this go back to those who need whatever your is. Every single psychological study, every single faith community throughout all of human history has wired into it generosity, giving, being a pass through. And so for the sake of your soul, not like in a, like in a go to church or you go to hell. That's what I'm talking about. But for the sake of your spirit, of your soul, your marriage, your kids. Yeah. Start giving today. Find causes that matter to you, find moments that matter to you. Find people that, that you see that we can be a blessing towards and be to practice it. And, and Ken, I tell people practice this in little ways. Meaning wait until you see a, at a restaurant when you see a waitress who's working five different sections because people didn't show up on their shift and she's exhausted and your food's a little bit late and tip her 100% of the tab and write her a note that says we saw how hard you're working, we're grateful for you. Do that. And then just watch her when she, when she opens it up. Do small things like that and then find somebody at your kids kindergarten who can't afford the tuition and tell the headmast, hey, we'd like to pick up somebody's tuition. Just let us know or be more strategic about it. Once you, once you think about it. But it's just a posture.

[Dave Ramsey]

Yeah. Corey, did I hear you say you guys are investing 35%?

[Corey]

Yes.

[Dave Ramsey]

Yeah. You know, look, here's what Dave has taught for years. And of course we sing that chorus as well. What we teach is, is in the baby steps. Are you familiar with the baby steps? I'm Assuming you are.

[Corey]

Yes, we went so we went through them and paid everything off and it all makes sense.

[Dave Ramsey]

So you get to do whatever you want. But we've prescribed for 15% and you guys are in great shape. So you could say we're going to go back to that and we're going to invest 15% and we're not going to stop. Okay? That's the when John and I have said yes and that's that. Now, if you want to do more than that, you can, but that's the rule of thumb and you're in great shape. So at which point you now go, okay, if I'm going to invest 15% or 35%, then whatever's left over, how much of my income am I going to set aside for continuous giving? So John's right. You can, you can give where you are. However you're moving throughout the day, you find opportunities to give. But for strategic giving, then I would put a budget number on it. And so let's say you said we're going to do, for sake of discussion, let's say you're going to go back to investing 15% and that's the continuing build. But then you go, okay, we're going to, then we're going to take that 35. We've been investing. We're only going to invest 15. We're going to take 20% of our income and that is now our giving fund. And to John's point, if you feel generous and you want to leave a $500 tip that comes out of that number, if you want to invest in a nonprofit, a mission organization, your church, some type of charity, I would find a cause that's near and dear to both you and your wife and something that has a story attached to it that connects to you all's story. I think that's a great way to do it. But you get to decide. But, but I would just start immediately doing it and you've got the margin. And so now if you're investing 15% and you are giving 20% or whatever ratio you want to do there, I would start right away.

[Corey]

Okay, well, just kind of tap onto that. Would you give smaller or would you invest and then give later in larger amounts?

[Dave Ramsey]

Again, we're not genie in a bottle, so I'm not going to answer that. I like John's answer. You get to decide. Corey, there's no, I'm not turning to page five in the Ramsey Manual right now to answer that question because that is so individual to you. We're not being posture.

[John]

It's a posture.

[Dave Ramsey]

You do what you want to do. But my only advice on that is John and you weigh in on this. If I was in your position, Corey, I would be giving a substantial chunk. Yes, Consistently correct to something that I deeply connected to.

[John]

Absolutely.

[Dave Ramsey]

I would leave it at that. You get to fill in what deeply connected to looks like.

[John]

Yes.