Summary of "I Make $30k-$90k a Month Day Trading" - The Ramsey Show Highlights
Episode Information
- Title: I Make $30k-$90k a Month Day Trading
- Host/Author: Ramsey Network
- Release Date: June 17, 2025
1. Introduction and Caller Background
The episode features Zach, a 22-year-old day trader who has successfully managed to earn between $30,000 to $90,000 monthly through day trading, specifically in the futures market. Zach is contemplating transitioning into real estate to diversify his investment portfolio.
- Zach: "I'm 22 years old. I'm currently making about $30 to $90,000 a month. And I am trying to figure out when to make the jump into real estate because that's kind of where I want to take my end goal." [00:06]
2. Zach's Day Trading Journey
Zach shares his journey into day trading, highlighting his initial strategies and the platforms he utilizes. He began practicing day trading three to four years ago and decided to invest his own capital into prop trading firms.
- Zach: "I've been like practicing for about three or four years now. And then I decided my initial investment of $3,000 into an evaluation for a few prop firms." [00:30]
He explains that prop firms provide the capital, allowing traders to keep 70-90% of their profits. Since February or March of the current year, Zach has been using live funded accounts provided by these firms, rather than his own money.
- Zach: "It's just the firms primarily at this point in time." [01:29]
3. Financial Management and Risk Mitigation
Zach emphasizes his prudent approach to financial management, a value instilled by his upbringing. He avoids using his personal funds for trading to minimize risk.
- Zach: "I was raised the Ramsey kid. So, you know, the less risk and the more success, then that's kind of where I was going with it." [01:37]
He maintains an emergency fund of approximately $50,000 and allocates funds for taxes, acknowledging the significant tax implications of his trading income.
- Zach: "My godfather is a CPA, so he's been trying to inspire me with some words of wisdom. And he was. He's been big on, like the 40 or 42%." [03:11]
4. Transitioning to Real Estate Investments
Zach expresses a strong interest in real estate, particularly in buying and holding properties for rental income and engaging in fix-and-flip projects.
- Zach: "I have a buddy that's willing to help me out to a certain extent... I could pay it off by the time I flip it." [07:42]
He is seeking advice on the optimal timing and strategy to enter the real estate market, especially given the current high property prices in Middle Tennessee.
5. Expert Advice on Real Estate Investment
Expert C provides comprehensive guidance on transitioning to real estate, emphasizing the importance of first securing a primary residence before venturing into investment properties.
- Expert C: "With real estate, we always say if you're going to go beyond your primary residence, you want to do it with cash... I think the first step for you, Zach, would be to get your, to own property yourself. Right." [04:34]
He cautions against relying on loans for investment properties, drawing parallels to common pitfalls faced by inexperienced investors.
- Expert C: "So that's the wrong way to do it from Ramsey's standpoint because that's what ends up... he borrowed on all these homes and go work." [07:56]
Additionally, Expert C highlights the challenges of being a landlord, including mortgage payments, maintenance costs, and the time investment required.
- Expert C: "You're having to pay the mortgage, you're having to pay, you know, fees... and upkeep, all of it, and you end up from a net to gross standpoint with not a ton of cash." [05:52]
6. Strategic Recommendations
The experts collectively advise Zach to prioritize establishing a stable foundation in real estate by first owning his primary residence. They recommend saving diligently to accumulate sufficient funds for a down payment, thereby avoiding the risks associated with leveraging loans for investment purposes.
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Expert A: "Not count on this gravy train of day trading for too long. I would get out while you can when the getting's good." [08:24]
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Expert C: "It's not this thing that's like, oh my gosh, it's gonna be making me a ton of money... It's not a big cash cow to have all of this." [07:31]
7. Conclusion and Final Thoughts
The episode concludes with a warning about the volatility and sustainability of relying solely on day trading as a long-term career. The experts encourage diversification and cautious expansion into real estate, ensuring that Zach approaches his investments with a well-informed and strategic mindset.
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Expert C: "Just know this may not be a five-year career. So I'd find something you can sink your teeth into with how smart you are." [08:07]
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Host A: "Create your free EveryDollar budget today. The simplest way to budget for your life." [End]
Key Takeaways:
- Diversification is crucial: While day trading has provided substantial income, branching into real estate requires careful planning and risk management.
- Financial prudence: Maintaining an emergency fund and setting aside taxes are essential practices for sustainable financial growth.
- Strategic investment in real estate: Owning a primary residence before investing in rental properties or fix-and-flips can mitigate risks and ensure a more stable investment foundation.
Notable Quotes:
- Zach on Earnings: "I'm currently making about $30 to $90,000 a month." [00:06]
- Expert C on Real Estate Strategy: "I think the first step for you, Zach, would be to get your, to own property yourself." [04:34]
- Host A's Closing Advice: "Not count on this gravy train of day trading for too long. I would get out while you can when the getting's good." [08:24]