I Make $30k-$90k a Month Day Trading

Summary

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

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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.

• 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]

• 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.

• 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]

• Host A: "Create your free EveryDollar budget today. The simplest way to budget for your life." [End]

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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]

Transcript

[A]

Brought to you by the Everydollar app. Start budgeting for free today.

[B]

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.

[A]

Wow.

[C]

Wow. Zach, we just talked to a caller who makes $850 a month. Yeah.

[A]

Can you spare some change for our friends? What are you doing to make 30 to 90,000amonth?

[C]

What?

[B]

So primarily day trading. The. Specifically the futures market.

[A]

Okay, how did you learn about this? And are you using a platform? How does this all work?

[B]

Yes. So I've been like practicing for about three or four years now. And then I decided to my initial investment of $3,000 into an evaluation for a few prop firms.

[A]

Yep.

[B]

And essentially you use their capital and then you normally get to keep anywhere from 70 to 90% of the profits that you make. And so I did that back in October and I was able to pay my student loans off by doing it. And I got a major in finance from Lipscomb. I graduated in December. And so I kind of decided that if I'm going to go all in on this, I might as well do it now and see where it took me.

[A]

And how long have you been doing this?

[B]

So with the live funded accounts, since February or March.

[A]

Okay. Which is using your own money?

[B]

No. So it's just the firms primarily at this point in time.

[A]

So here's the question. If you're so good at this, why not use your own money?

[B]

Yes. So a lot of the times right now I don't have $150,000 that I want to invest in it. And I'm well aware of the risks. And if someone else is going to take on the risk for me, 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.

[A]

Okay, so what happens if you make a bad trade? You get kicked out of these prop firms, right?

[B]

Yes. So there are systems in place to where essentially I have certain, like, drawdowns that I can hit. And a lot of times with every single trade I take, I normally try and move the stop loss, which automatically sells me out of the market to break even. And so at that point it's. I don't want to say it's impossible to lose money by any means whatsoever, but like a bad day would be me breaking even or only losing about a thousand or two.

[A]

Okay, how much money do you have now that is liquid?

[B]

About $50,000.

[A]

What are you doing with the rest of this money?

[B]

So I had to pay off my student loans because I paid for my own college.

[A]

Okay.

[B]

And then I'm been in the process of trying to move just somewhere else in Nashville. So that's taken up a little bit, a little portion of it, because it was like the first month last month and that whole thing. And then I tried to put away some for taxes because I have to do it. Obviously, I get taxed after. And you're going to get hammered with.

[A]

Taxes if you're making 30 to 90,000amonth.

[B]

Yes.

[A]

You got to set aside 40%.

[B]

I have been. 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%. Yes.

[A]

And do you have any daily left?

[B]

I do not know.

[A]

Good. And that 50k, let's call that your emergency fund plus some.

[B]

Yeah, so that'll be like my emergency fund. And then, you know, like something else happens, like with family or, you know, I like to take care of the people around me, so.

[A]

Okay, and what's your question today?

[B]

I am trying to figure out. So I've always wanted to get into real estate. And so I'm trying to figure out when the best time would be to make that move and to start investing in real estate as well. Because the trading only takes me about maybe three or four hours a day. And so that's kind of where I'm missing out, I think.

[C]

And by real estate, for you to own properties for investment, for you to flip and make.

[B]

Make a spread thing, and then I would try and do fix and flips when I could when I have the time.

[C]

Okay, so you're wanting to buy and hold and put renters in is what you're thinking?

[B]

Oh, absolutely, yes.

[C]

Okay.

[B]

And obviously Middle Tennessee, it's not cheap right now. So I was kind of wondering the best way to go with that.

[C]

Yeah, for sure. Yeah.

[B]

Well.

[C]

Well, with real estate, we always say if you're going to go beyond your primary residence, you want to do it with cash. And so being able to buy.

[B]

Are you gonna own a home first?

[C]

Well, ideally, yes. To have a primary residence before you go and start doing investment real estate. Yes. So that would be. That would probably be the. That would be my goal for you, Zach, honestly, would. To be to move out of your parents and get a place of your own and. And start renting.

[B]

So I'm Renting.

[A]

Oh, you're renting.

[C]

I'm not living with parents.

[B]

Yeah, no. So I moved down here from college. My family is in another state. Oh, I gotcha. Okay, so I've been renting and then I just signed another year long lease by myself.

[C]

I gotcha.

[A]

What are your monthly expenses right now? All in?

[B]

Probably only about three or four at most. That's probably an expensive month.

[A]

Okay, so let's call it four grand. So you're telling me if you make 30 grand, you set aside, let's say 40% of that, right. So you'd still have about 15 grand left to just throw into savings accounts every single year? I mean, every single month.

[B]

Yes, sir.

[A]

So that you could save up a whole lot of money in a year. I mean, you could have a down payment ready in six months.

[B]

Ideally, yes.

[C]

Yeah. So the real estate side of the investment portion is. It is great, but it's not for income producing. Right. It's more to hold. Like you make money on that at the buy and then when you end up selling with all the equity because you're holding it for so long. Right.

[B]

I mean, decades long term instead of short term.

[C]

That's right. Yes, that's right. That's right. So, um, so yeah, I mean, I think it's a great goal, but I think, I think the first step for you, Zach, would be to get your, to own property yourself. Right. You know, for your primary residence before going and investing and getting a rental home and all of that. Because a lot of people do it the opposite way. But what you'll end up finding is you're not really going to make a, I mean, depending on the home. Obviously in the situation when you do that kind of investing, you're not making a ton of money. I think a lot of people have in their mind, I'm sure you wrote the numbers, you're a smart guy. But I think a lot of people in their minds have this like, oh my gosh, I'm making so much passive income. But by the time, especially if you go take a loan out, which a lot of people do for investment real estate, you're having to pay the mortgage, you're having to pay, you know, fees. On top of that, you're having to pay, you know, everything it is to be a landlord for upkeep, all of it, and you're, you end up from a, from a net to gross standpoint with not a ton of cash. It's not like a big cash cow to have all of this, like in a residential market Having one or two of these. So I just want you going in eyes wide open, just knowing what you're getting yourself into and that it's not. I don't know, I just feel like I see stuff like this all the time on social media and why has Wave done this? And I'm like, and it's not a bad thing. You know, I like diversification. I like having money in the market. I like having some real estate. Like I think all of that's really good. But it's not this thing that's like, oh my gosh, it's gonna be making me a ton of money. If anything flips will, like that's where we've actually seen, you know, from a short term perspective, actually see some pretty great returns because you're not needing to.

[A]

Wait on the market to appreciate because it's been a little stagnant last few years.

[C]

And you can get some really crappy houses and fill and gut them if you know what you're doing. I mean that's a whole other business that you.

[A]

Takes a lot more work.

[B]

I have a buddy that's willing to help me out to a certain extent and so. But then I would, I mean as of right now, depending on even, even in like Antioch, I might have to take out a loan for the initial part, but then I could pay it off by the time I flip it. So that was the other.

[C]

Right. So that's the, that's, that's the. That would be the wrong way to do it from Ramsey's standpoint because that's what ends up, that's how Dave actually ends up going broke is he borrowed.

[A]

On all these homes and go work.

[C]

Out and then you get stuck and you're having to sell it quickly because you're like, oh my gosh, you know, we have to. It's a flip. And so we're needing to make a profit and you end up selling it for not as much as you want and then you end up not making the spread that you want and then it ends up going backwards and it's not good. So cash is everything and I would.

[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. But 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, my man. Create your free every dollar budget today. The simplest way to budget for your life.