CAPTIONING PROVIDED BY CAPTION ASSOCIATES, LLC WWW.CAPTIONASSOCIATES.COM >>> JUST HOW DID THIS TENNESSEE NATIVE BECOME NATIONALLY KNOWN AROUND THE COUNTRY AS A FINANCIAL GURU?

>> IT'S BEEN A SERIES.

>> THIS WEEK I SIT DOWN WITH DAVE RAMSEY AS HE SHARE HIS OWN PERSONAL STRUGGLES, METHOD OF GROWING WEALTH AND STAYING OUT OF DEBT.

PLUS HE WILL GIVE HIS INSIGHT INTO THE STATE OF OUR ECONOMY.

THAT'S STRAIGHT AHEAD ON THE A LIST.

♪ ♪ [ MUSIC ] ♪ ♪ >>> DAVE RAMSEY, A NEW YORK TIMES BEST SELLING LIST AUTHOR, A RADIO HOST, TELEVISION PERSONALITY, AND MOTIVATIONAL SPEAKER.

HE HAS FOUND PERSONAL SUCCESS AND FINANCIAL STABILITY BY HELPING OTHERS.

>> DAVE WELCOME TO THE A LIST WE'RE SO GLAD TO HAVE YOU ON THE SHOW.

THANK YOU SO MUCH.

>> I'M HONORED TO BE HERE.

>> YOU MADE YOUR FIRST I GUESS $4 MILLION OR SO AT AN EARLY AGE JUST 26-YEARS-OLD.

>> I HAD ABOUT $4 MILLION IN REAL ESTATE.

ABOUT $3 MILLION IN DEBT.

MID TO EARLY 20S IN THE FIRST FORTUNE WE ALWAYS CALLED IT.

>> THE FIRST FORTUNE.

WHAT WENT WRONG THERE THAT ALLOWED YOU TO DO SO MANY RIGHT THINGS NOW?

>> WELL, I BORROWED TOO MUCH MONEY.

WE HAD $3 MILLION WORTH OF DEBT.

A LOT OF IT SHORT-TERM NOTES OF THE BANK GOT SOLD TO ANOTHER BANK AND THEY CALLED THOSE NOTES SO I HAD ABOUT 90 DAYS TO COME UP WITH $1,200,000 AND IT'S ALL IN REAL ESTATE THERE IS NO WAY.

WE START SELLING EVERYTHING AS FAST AS WE COULD, BUT THE CRASH HAD BEGUN.

IT TOOK TWO AND A HALF YEARS TO UNFOLD.

THE SECOND LARGEST LENDER CALLED ANOTHER $800,000 THEY FREAKED OUT HEARD I WAS IN TROUBLE BECAUSE I WAS IN TROUBLE.

I DIDN'T DO ANYTHING IMMORAL JUST WAS STUPID.

I WAS DOING A LOT OF FIX A HOUSE UP, FLIP IT AND SELL IT.

BEFORE THERE WAS CABLE.

IT WAS BACK IN THE DAY.

IT WORKED AS LONG AS THE HOUSES FLIPPED AND THEY DIDN'T CALL ALL OF THE NOTES, BUT WHETHER THEY CALLED THEM AT ONCE THERE WAS NO WAY TO SURVIVE THAT SHOCK.

WE ALMOST MADE IT PAID IT DOWN TO UNDER $300,000.

THE LAWSUITS STACKED UP AND WE WERE SCARED LITTLE KIDS WITH LITTLE BABIES IN THE HOUSE.

OUR MARRIAGE WAS HANGING ON BY A THREAD AND WE FINALLY HIT BOTTOM AND FILED BANKRUPTCY AT 28-YEARS-OLD.

I WAS WORRIED ABOUT HOW BIG THE NUMBERS WERE RATHER THAN IF WE GOT TO KEEP IT.

IT NEVER OCCURRED TO ME I COULD FAIL.

[LAUGHTER] >> IT WAS THEN, AFTER IT ALL SEEMED TO FALL APART THAT DAVE RETURNED TO REAL ESTATE AS HE AND HIS WIFE SHARON STRUGGLED TO MAKE ENDS MEET AND SOMEHOW GET OUT OF DEBT.

ALONG THE WAY DAVE DISCOVERED A NEW DIRECTION IN HIS CAREER, HELPING OTHERS.

>> IF THE WATER IN THIS CUP REPRESENTS WE NEED TO PUT MONEY IN THE SAVINGS CUP.

IF WE SAVE MONEY FOR EMERGENCIES AND THERE IS AN EMERGENCY WE JUST FIX THE CAR RIGHT?

NOT A PROBLEM.

>> HOW DID YOU BECOME THAT INSPIRATION FOR OTHERS THAT LOOKED AT YOU AND LITERALLY SAID WE'RE ABOUT TO LOSE IT ALL PERSONALLY AND FINANCIALLY AND MANAGED TO HOLD ONTO IT AND BUILD THIS EMPIRE.

>> WE CRASHED AND HIT THE BOTTOM AND AT THE BOTTOM OF THE MESS WE HAD TO DO AN CSI, AN AUTOPSY ON IT.

SAY MY GOSH THIS DIDN'T WORK.

OUR MARRIAGE IS NOT GOOD.

EVERYBODY IS SCARED.

MY EGO IS BRUISED.

SHE'S IN FEAR.

WHAT DO WE HAVE TO DO DIFFERENT?

WE STARTED FIGURING OUT GOD'S WAYS OF HANDLING MONEY AND COMMONSENSE AND SOUNDEDS A LOT ALIKE AND SIMPLE IDEAS, BUT PROFOUND IDEAS.

STARTED APPLYING THEM TO OUR LIVES AND WE WERE JUST LEARNING THIS FOR SELF-PRESERVATION.

WE JUST DIDN'T WANT TO GET HURT AGAIN.

THAT STUFF HURTS.

WE STARTED LIVING IT, AS WE STARTED LIVING IT WE BEGAN ATTRACTING OTHER PEOPLE COMING TO US AND SAID MY GOODNESS WHAT IS THE DEAL HERE?

CAN WE LEARN TO DO WHAT YOU'RE DOING?

YEAH SURE.

I WILL SHOW YOU.

NOT THAT BIG OF A DEAL.

THEN, STARTED TEACHING A LITTLE SUNDAY SCHOOL CLASS STARTING HELPING PEOPLE COUNSELING AROUND THE CHURCH.

BEFORE I KNEW IT THIS THING TOOK OFF.

>> WHY IS IT SO HARD FOR MOST AMERICANS TO GET OUT OF DEBT IF IT'S REALLY JUST COMMONSENSE ADVICE?

>> WE KNOW WHAT TO DO, AND THAT'S WHAT THE COMMONSENSE SIMPLISTIC PART IS.

WE KNOW EXACTLY WHAT TO DO.

HOW DO YOU GET OUT OF DEBT?

YOU LIVE ON LESS THAN YOU MAKE.

WE KNOW THAT.

WHEN I SAY THAT FROM THE STAGE EVERYBODY LAUGHS YOU KNOW.

THEN I TELL THEM YOU PAID ME TO COME SAY THAT TO YOU ISN'T THAT FUNNY YOU KNOW.

[LAUGHTER] >> COMMONSENSE IS NOT MARKETABLE OH, MY GOSH.

IT IS VERY SIMPLE YET SIMPLE THINGS ARE OFTEN THE MOST PROFOUND.

>> DAVE FORMED A FINANCIAL CONSULTING BUSINESS IN 1988.

HE EVEN WROTE AND SELF-PUBLISHED A BOOK FINANCIAL PEACE.

IN IT, HE OUTLINED THE FIVE BASIC PRINCIPLES HE AND HIS WIFE DISCOVERED AS THEIR ROAD MAP OUT OF FINANCIAL FRUSTRATION.

>> FOR SOMEONE THAT DOESN'T KNOW GO THROUGH THE STEPS GO THROUGH THE FIVE BASIC TENANTS OF WHAT YOU BELIEVE WILL HELP SOMEBODY NOT GO INTO DEBT AND ACTUALLY HAVE A SOUND FINANCIAL FUTURE.

>> THERE IS FIVE UNDERLYING PRINCIPLES THAT WE WEAVE INTO EVERY PROGRAM THAT WE USE.

UM, ONE IS LIVE ON LESS THAN YOU MAKE.

HAVE YOU TO LEARN TO ACT YOUR WAGE.

LIVE ON LESS THAN YOU MAKE FOREVER AND EVER AMEN.

THE SECOND THING, YOU NEED TO DO IS GET OUT OF DEBT AND STAY OUT OF DEBT.

BECAUSE, YOUR INCOME IS THE MOST POWERFUL WEALTH BUILDING TOOL.

IF YOU DON'T HAVE ANY PAYMENTS YOU CAN BECOME WEALTHY.

BUT IF YOU GIVE IT ALL TO BANKS ALL OF THE MONEY COMES IN, ALL THE MONEY GOES OUT AND SO FIRST THING IS ACT YOUR WAGE AND THE SECOND STAY OUT OF DEBT.

THAT INVOLVES CHOPPING UP THE CREDIT CARDS THE PLASTIC SURGERY ROUTINE.

THE THIRD THING IS TO LEARN TO SAVE MONEY.

FIRST THING YOU SAVE FOR IS FOR EMERGENCIES.

GRANDMA'S RAINY DAY FUND.

THINGS HAPPEN YOU NEED AN UMBRELLA.

THE SECOND YOU SAVE UP TO PAY CASH SO YOU DON'T GO INTO DEBT AND YOU GET BETTER DEAL WHEN IS YOU PAY CASH AND IT HURTS.

HAVE YOU EMOTIONAL PAIN WHEN YOU SPEND WITH CASH.

YOU TEND TO SPEND LESS.

IF WE'RE LIVING ON LESS THAN WE MAKE OUT OF DEBT AND SAVING MONEY, THEN, THAT BRINGS US TO HOW TO DO THAT AND THAT IS THE PLAN YOU GOT TO DO THE DREADED B WORD THE BUDGET IF YOU AIM AT NOTHING YOU WILL HIT IT EVERY TIME AS ZIEGLER SAYS.

LAST ONE YOU HAVE TO LEARN HOW TO GIVE.

I MEET FEW PEOPLE THAT WIN WITH MONEY THAT AREN'T GIVERS.

THERE IS A DIRECT CORRELATION WITH THAT.

YOU ATTRACT OPPORTUNITIES INTO YOU'RE LIE THEN.

PEOPLE WHO ARE TIGHT FISTED AND SELFISH GENERALLY DON'T SUCCEED IN LIFE IN ANY PART OF THEIR LIFE.

AND, SO, UM, GIVING IS A BIG PART OF THAT.

>> DAVE TAKES THE FIVE BASIC PRINCIPLES AND WEAVES THEM INTO MOST EVERYTHING HE IMPLEMENTS AND ADVICES PEOPLE ON.

BUT IN THE PROCESS, HE DISCOVERED AN IMPORTANT VARIABLE IN EFFORTS TO HELP OTHERS.

BEHAVIOR.

IT WAS THIS REVELATION THAT HAS SHAPED HIS METHOD OF COUNSELING.

>> THERE IS A NOT GOING ON IN THE MONEY.

I WANT TO SAVE MONEY, I WANT TO GIVE MONEY.

I WANT A NEW WASHER AND DRYER.

I WANT TO GO ON VACATION.

DAVE RAMSEY SAID AND WE GET ALL OF THAT IN THERE RIGHT?

>> TELL ME ABOUT FINANCIAL PEACE UNIVERSITY.

>> FINANCIAL PEACE UNIVERSITY IS OUR 13 WEEK SERIES.

WHEN I WAS DOING ONE-ON-ONE COUNSELING ONE OF THE FIRST THINGS I LEARNED TO DO, I GOT FRUSTRATED IT BECAUSE I'M A MATH NERD.

I'M GOOD AT NEGOTIATING DEALS.

I WOULD CALL AND NEGOTIATE DEALS FOR THE PEOPLE AND I WOULD MAKE THEIR NUMBERS FIT WITHIN THEIR INCOME.

WHY GET IT ALL POLISHED UP AND HAVE THIS PLAN AND ALL YOU HAVE GOT TO DO IS GO HOME AND EXECUTE THE PLAN.

I WOULD RUN INTO THEM A MONTH LATER AND SAY HOW IS THE PLAN GOING?

WE FILED BANKRUPTCY.

WHAT AFTER ALL OF THAT WORK I DID AND YOU PAID ME THAT MONEY WHAT IS THE DEAL I GET SO FRUSTRATED WITH THIS.

THAT THIS IS NOT A MATH PROBLEM IT'S A BEHAVIOR PROBLEM.

THAT'S WHEN WE STARTED COMING UP WITH THE SAYINGS.

THE GUY THE PROBLEM WITH MY MONEY IS THE GUY I SHAVE WITH.

I STARTED STUDYING A GROUP WITH A BEHAVIOR MODIFICATION OUT THERE.

ONE OF THE MOST POWERFUL THERE IS IS ACCOUNTABILITY IN A SMALL GROUP SETTING.

WE KNEW JUST GIVING THEM THE INFORMATION WAS NOT ENOUGH.

WE STARTED SAYING THINGS THAT ARE TRUE LIKE PERSONAL FINANCE IS 80% BEHAVIOR.

ONLY 20% HEAD KNOWLEDGE.

PROBLEM WITH MY MONEY IS NOT WHAT I KNOW IT'S WHAT I DO.

AND SO WE STARTED DRILLING THAT INTO THE PUBLIC'S MIND AND TEACHING THAT IT'S A CHANGE IN THE BEHAVIOR.

>> NOW DO THE KIDS KNOW WHAT IS GOING ON DO THEY REALLY UNDERSTAND?

>> DAVE TAKES THE SAME MESSAGE TO THE AIRWAYS.

EARLY ON HE CO-HOSTED A LOCAL RADIO CALL IN SHOW CALLED THE MONEY GAME WHICH EVENTUALLY LED TO THE DAVE RAMSEY SHOW.

>> NOW THEY ARE READY TO BE FREE I BET.

>> YEAH THEY UM, THEY EARN THEIR OWN MONEY AND HAVE THEIR OWN SAVINGS ACCOUNTS AND I THINK THEY UNDERSTAND, THE IMPORTANCE OF THAT.

>> IT'S NO SURPRISE, THAT EVEN HERE, HE FINDS THERE IS MORE TO THE BASICS OF PERSONAL FINANCE, THAN JUST KNOWLEDGE OF PRINCIPLES.

>> I KNOW YOU'RE A BIG BELIEVER IN A DIRECT COROLLARY BETWEEN YOUR RELATIONSHIP WITH FINANCES AND YOUR RELATIONSHIP WITH YOUR SPOUSE.

>> BECAUSE PERSONAL FINANCE IS BEHAVIOR.

IF IT'S BEHAVIOR GUESS WHAT EFFECTS BEHAVIOR RELATIONSHIPS.

MY KIDS EFFECT MY BEHAVIOR.

MY SPOUSE AFFECTS MY BEHAVIOR.

MY JOB AFFECTS MY BEHAVIOR.

INTERFERING PARENTS EFFECT MY BEHAVIOR.

IT'S A RELATIONAL PROBLEM.

THERE IS A HUGE CORRELATION BETWEEN WEALTHY FAMILIES AND FUNCTIONAL FAMILIES VERSES DISFUNCTIONAL FAMILIES END UP POOR REALLY.

BECAUSE THEY JUST FIGHT WITH EACH OTHER.

A CONSTANT YOU KNOW, SELFISHNESS.

ALL OF THESE OTHER THINGS AND THE MARRIAGES DON'T STICK.

DIVORCE IS EXPENSIVE MATHEMATICALLY IT'S EXPENSIVE.

AND SO, UM, THERE IS A DIRECT CORRELATION BETWEEN WEALTH BUILDING AND A SUCCESSFUL MARRIAGE.

WEALTH BUILDING AND SUCCESSFUL PARENTING.

GENERATIONAL WEALTH BUILDING WAS SUCCESSFUL PARENTING.

>> HOW HAS THAT MADE YOUR MARRIAGE DIFFERENT?

>> IT'S LIKE IT'S TWO DIFFERENT PEOPLE.

WE HAVE BEEN MARRIED 28 YEARS AND MY WIFE LAUGHS AND SAYS WE'VE HAD 20 GOOD YEARS OF MARRIAGE.

THE FIRST FEW YEARS I WAS THE GO GETTER HIGH STRUNG, ARCHETYPE GOING AFTER IT, AND SHE WAS THE CLASSIC SOUTHERN BELL WHATEVER YOU WANT TO DO HONEY.

PASSIVE AGGRESSIVE AS SHE COULD BE.

SO UM, NOW SHE'S FOUND HER VOICE.

[LAUGHTER] >> AND UM, SO I SAID A LOT MORE, EVEN VOTE NOW.

HER VOTE COUNTS IT HAS FOR 20 YEARS.

FIRST 7 OR 8 IT DIDN'T I JUST DID IT.

SHE SAID WHATEVER YOU WANT TO DO.

I WAS SIR GALAHAD.

ONCE SHE DISCOVERED I WAS GABBER SHE HAD A VOTE.

SHE'S A NATURAL SAVER I'M A NATURAL SPENDER.

SHE WOULD USE THE WORD COMMUNICATION.

SHE LOVES THAT WORD AND LOVES LOTS OF COMMUNICATION BECAUSE WE'VE HAD TO WORK AT THAT SO HARD.

A LOT OF COUPLES DO.

>> YOU TALK A LOT, YOU ALWAYS REFERENCE SOMEONE'S GRANDMOTHER OR ADVICE YOUR GRANDMOTHER WOULD GIVE YOU.

KEEPING YOUR TEETH IN THINGS LIKE THAT.

IS THIS THE ADVICE YOUR GRANDPARENTS LITERALLY GAVE TO YOU WHEN YOU WERE GROWING UP.

IS THIS THE SAME ADVICE IF THEY SAW YOU NOW THEY WOULD SAY THAT A BOY YOU'RE LISTENING TO US OR HAS IT EVOLVED OVER TIME BASED ON THE CIRCUMSTANCES?

>> YOU KNOW THE SAYINGS WE USE LIKE WE GIVE YOU THE SAME ADVICE YOUR GRANDMOTHER WOULD ALTHOUGH WE KEEP OUR TEETH IN IS MORE IN REFERENCE TO THE GENERATION OF THOUGHT.

IT MY GRANDPARENTS LIVE THAT WAY?

ABSOLUTELY.

WOULD THEY BE PROUD OF US LIVING THIS WAY YEAH THEY WOULD BE DEFINITELY.

DID THEY EVER SIT DOWN AND SAY YOU NEED TO BE ON A BUDGET YOU NEED TO HAVE AN EMERGENCY FUND, YOU NEED TO STAY AWAY FROM CREDIT CARDS NO I NEVER HEARD THAT THEY JUST LIVED IT.

>> WHAT ABOUT THE WAY YOU TEACH YOUR KIDS IS IT TOTALLY DIFFERENT IN THE WAY YOU WERE BROUGHT UP?

>> OH, YEAH IN THAT SENSE.

I TEACH THEM HARD WORK SO THAT'S NOT DIFFERENT.

I TEAM THEM ENTREPRENEURISM THAT IS NOT DIFFERENT, BUT WE HAVE BEEN INTENTIONAL ABOUT THE STUFF WE TEACH.

IT WOULD BE BAD FOR ME TO GET THE WHOLE WORLD ON A BUDGET AND NOT TEACH MY OWN KIDS.

>> HOW OLD ARE THEY?

>> THEY START AS SOON AS THEY HAVE A QUESTION ABOUT IT LIKE TEACHING THEM ABOUT SEX.

WE'RE GOING TO TEACH THEM AGE APPROPRIATE WHEN THEY HAVE QUESTIONS.

WE'RE NOT GOING TO TRY TO TEACH A 3-YEARS-OLD AND OVERWHELM THEM WITH SOMETHING THEY CAN'T EMOTIONALLY CARRY.

WHEN THEY HAVE A QUESTION WE ANSWER THE QUESTION.

WHEN THEY ARE 6 THEY HAVE A DIFFERENT QUESTION.

WHEN THEY ARE 16 THEY HAVE A LOT OF QUESTIONS.

WE MOVE THROUGH THE PROCESS THERE.

AGE APPROPRIATELY WE TEACH THEM AS SOON AS THEY START ASKING QUESTIONS ABOUT WORK, GIVING SAVING, SPENDING.

AND IF YOU CAN TEACH A KID THOSE FOUR THINGS THEY WON'T LIVE IN YOUR BASEMENT WHEN THEY ARE 32.

>> ALTHOUGH I LOVE MINE I HOPE THEY WILL.

[LAUGHTER] >> NOW DO YOU BELIEVE IN GIVING A CHILD AN ALLOWANCE?

>> NO I BELIEVE IN GIVING THEM A COMMISSION.

WORK GET PAID.

DON'T WORK DON'T GET PAID.

ALLOWANCE IS A WEAK WORD.

I'M GOING TO MAKE ALLOWANCE FOR YOU.

IT'S LIKE YOUR DEFICIT.

THE KID ISN'T DEFICIT THEY DON'T HAVE A PROBLEM.

I'M GOING TO MAKE ALLOWANCE FOR YOU.

IT'S COMMISSION.

IT KIND OF SOUNDS LIKE WELFARE.

I DON'T LIKE THE WORD.

I LIKE COMMISSION.

YOU UNDERSTAND.

WORK IS TIED TO MONEY.

I WANT TO MAKE THAT EMOTIONAL CONNECTION EARLY I HAVE MET 54-YEARS-OLDS THAT HAVE NEVER MADE THAT CONNECTION.

THEY DON'T KNOW THAT MONEY COMES FROM WORK.

>> ONE THING DAVE IS FAMOUS FOR IS HIS CLEAR, DIRECT AND PASSIONATE OPPOSITION TO CREDIT CARDS.

>> TELL ME HOW YOU FEEL ABOUT CREDIT CARDS.

[LAUGHTER] >> DON'T HOLD BACK HUH?

>> DON'T HOLD BACK I WANT TO KNOW.

I HAVE BEEN THINKING A LOT ABOUT THIS.

I WANT TO HEAR WHAT YOU SAY FIRST.

>> SURE.

>> DON'T CHECK OUT MY PURSE.

[LAUGHTER] >> UM, WELL, I JUST, I FOUND NO VALID USE FOR THEM.

IT'S THAT SIMPLE.

I HAVE MET WITH THOUSANDS OF MILLIONAIRES, AND I HAVE NEVER MET A MILLIONAIRE THAT SAID DAVE I MADE ALL OF MY MONEY WITH MY DISCOVER POINTS AIRLINE MILES THAT PUT ME OVER TOP.

NEVER HEARD THAT.

I MET THOUSANDS AND TENS OF THOUSANDS OF FAMILIES THAT HAVE HAD THEIR FINANCIAL LIVES DESTROYED AND MANY TIMES THEIR MARRIAGES WRECKED AND EVERYTHING ELSE WITH CREDIT CARDS AND THE CREDIT CARD INDUSTRY HAS DONE SUCH A GOOD JOB EVER NORMALIZING THEIR PRODUCT IN OUR CULTURE.

THAT'S WONDERFUL MARKETING.

BRAND PENETRATION TO WHERE WE ACTUALLY BELIEVE THAT WE CANNOT LIVE OUR LIVES PROPERLY WITHOUT OWNING THEIR PRODUCT.

WOW.

FABULOUS MARKETING.

AND SO MY JOB I GUESS I'M THE CRAZY PREACHER ON THE STREET CORNER AND DON'T DO IT.

DON'T DO IT.

AND UM, THAT GIVES PEOPLE A REASON TO PAUSE AN STOP AND THINK.

THERE HAS BEEN A BUNCH OF THEM HAVE COMPLETELY QUIT USING CREDIT CARDS BECAUSE OF US.

THERE HAS BEEN A BUNCH MORE QUIT USING THEM BECAUSE THEY GOT TIRED OF BEING MESSED OVER BY CREDIT CARD COMPANIES AND FINALLY LOOKED UP AND SAID EVERY TIME I GO TO THIS RESTAURANT I GET FOOD POISONING NOT GOING BACK AGAIN.

NOT BRINGING ME HEALTH.

NO THANK YOU.

THERE IS NOTHING THAT IS WORTH THIS.

AND, YET YOU HAVE THE EXPERTS THAT SEEM TO DEFEND THIS WHICH IS HUMOROUS.

>> YOU GET CRITICIZED FOR BEING WEALTHY?

>> SURE ABSOLUTELY.

EVERYBODY THAT IS WEALTHY JUST ABOUT GETS CRITICIZED FOR IT.

WE LIVE IN A WEIRD CULTURE.

YOU'RE SUPPOSED TO BECOME A SUCCESS, BUT IF YOU DO I'M MAD AT YOU.

[LAUGHTER] >> WHY IS THAT THOUGH?

WHAT DO YOU THINK THE NATURE IS?

>> IT'S A LOT OF THINGS.

IT IS AN INTERESTING DYNAMIC.

WHEN I SOLD TEN FINANCIAL PEACE BOOKS I MADE $1 A PIECE, AND I HELPED TEN PEOPLE EVERYBODY WAS COOL.

WHEN I SOLD $10 MILLION AND MADE $1 A PIECE NOW I'M AN EVIL GUY BECAUSE I HELPED 10 MILLION PEOPLE.

DON'T MAKE SENSE TO ME.

ALL I DID WAS WORK HARDER AND DO BETTER AND HELP PEOPLE IN THE PROCESS.

I DIDN'T STEAL ANYTHING, BUT YET PEOPLE GET ANGRY ABOUT IT.

WELL YOU SHOULD HAVE, ALL THAT IS ENVY AND JEALOUSY.

JEALOUSY IS I WANT WHAT YOU GOT.

ENVY IS I DON'T THINK I WILL EVER HAVE WHAT YOU HAVE SO I DON'T WANT YOU TO HAVE IT SO I WILL ELECT CONGRESS AND PRESIDENT TO TAKE IT AWAY FROM YOU.

>> SPEAKING OF CONGRESS AND THE PRESIDENT, I HAD TO ASK, JUST WHAT IS DAVE'S TAKE ON THE CURRENT STATE OF THE ECONOMY.

>> AS FAR AS THE ECONOMY GOES THERE IS CERTAINLY STRUGGLES, THERE IS NO QUESTION ABOUT THAT.

BUT HAS IT BEEN OVERPLAYED BY THE DRAMA QUEENS IN THE MEDIA ABSOLUTELY.

JUST COMPLETELY OUT OF CONTROL.

AND OVERSTATED, I MEAN, TO THE POINT OF IRRESPONSIBILITY.

ON A NATIONAL NETWORK SHOW THE OTHER DAY AND THE PRODUCER SAID SO YOU THINK WE'VE BEEN IRRESPONSIBLE IN OUR REPORTING EVER THE ECONOMY WHY IS THAT I SAID BECAUSE YOU HAVE BEEN IRRESPONSIBLE IN THE REPORTING OF YOUR ECONOMY THAT'S WHY I THINK THAT.

IT'S NOT A HARD THING I JUST OVERBLEW IT.

YOU CONSTANTLY HARPING ON, I WAS ON THE SHOW THE OTHER DAY SAID 5 MILLION HOMES ARE UNDERWATER.

PEOPLE ARE NEVER GOING TO GET THEIR REAL ESTATE VALUES BACK.

AND I SAID WELL, LET'S GET THE ACTUAL PIECE OF DATA OUT AND LOOK AT IT BECAUSE, IF YOU TAKE CALIFORNIA, FLORIDA, MICHIGAN, LAS VEGAS, AND PHOENIX OUT OF THOSE NUMBERS, THEY ALMOST DISAPPEAR.

AND YOU JUST SCARED PEOPLE IN DALLAS TO DEATH OR IN CHATTANOOGA OR NASHVILLE, OR BIRMINGHAM, THAT'S IRRESPONSIBLE.

AND IT'S INACCURATE.

AND SO, REAL ESTATE IS NOT NEARLY AS BAD AS IT'S BEEN PORTRAYED IN THE NATIONAL MEDIA ON A LOCAL LEVEL.

YOU LIVE IN DETROIT, IT'S BAD.

IT'S BAD.

YOU LIVE IN LAS VEGAS, IT'S HORRIBLE.

BUT IF YOU LIVE IN ATLANTA YOU'RE OKAY.

VALUES ARE DOWN, MARKET IS SLOW, BUT IT'S NOT THE GREAT DEPRESSION.

SHUT UP.

I MEAN IT'S GOING ON AND ON AND ON AND ON.

YOU KNOW, AND SO, IS UNEMPLOYMENT BAD, BUT NOT AS BAD AS 1982.

AND WE DON'T HAVE 12% INFLATION TO GO WITH IT.

WE DON'T HAVE 17% INTEREST RATES TO GO WITH IT.

THINK ABOUT TRYING TO RECOVER FROM AN 11% UNEMPLOYMENT RATE OR 10% UNEMPLOYMENT RATE WHEN INTEREST RATES ARE 17% AND INFLATION IS RUNNING 11%.

I MEAN THAT MAKES IT, IT'S A TOUGH BUSINESS ENVIRONMENT TO GROW JOBS IN.

WE GOT A 4.5% INTEREST RATE ENVIRONMENT AND NO INFLATION TO GROW JOBS IN.

IT'S A LOT BETTER ECONOMY IN THAT SENSE THAN 1982.

BUT, YOU KNOW 10% ARE UNEMPLOYED.

90% ARE EMPLOYED.

AND BY THE WAY, WHAT WE CALL REAL UNEMPLOYMENT OR REAL EMPLOYMENT IS AROUND 6% OF THE PUBLIC IS ALWAYS GOING TO BE UNEMPLOYED THAT'S WHAT ECONOMISTS CALL REAL EMPLOYMENT.

WHAT WE REALLY HAVE IS 5% OF THE PEOPLE UNEMPLOYED AND WE USED TO HAVE 2% UNEMPLOYED.

WE HAVE A 3% INCREASE.

IT'S BAD IF YOU'RE UNEMPLOYED, BUT GOING OFF ABOUT IT LIKE WE NEED TO JUMP OFF A BUILDING IS JUST CRAZY.

>> IS THAT ABOUT AT TODAY?

>> IT IS ABOUT ATTITUDE.

BUT THAT COMES FROM THE PERCEPTION OF THINGS.

IF ALL YOU DO IS WATCH THE CABLE NEWS ALL DAY LONG YOU NEED TO SIT IN A RUBBER ROOM THERE IS NO PLACING TO.

YOU NEED TO FIND SOMEBODY OUT THERE WINNING BECAUSE THERE ARE LOTS OF PEOPLE WINNING.

>> WHAT ABOUT FOR THE GOVERN SPECIFICALLY WHAT ADVICE WOULD YOU HAVE TO THE GOVERNMENT TO RETIRE ITS DEBT OR IS THAT A LOST CAUSE?

I DON'T THINK THEY ARE PUTTING IT ALL ON CREDIT CARDS BY THE WAY.

>> I DON'T THINK THEY ARE GOING TO LISTEN TO ME ANYWAY SO.

>> LET'S SAY THEY ARE LISTENING TO THE A LIST.

DAVE RAMSEY HAS SOUND ADVICE FOR US.

>> I THINK WE HAVE TO REINSTITUTE THE ANCIENT WORLD REMOVED FROM OUR VOCABULARY, WASHINGTON HASN'T SAID IT IN YEARS AND PEOPLE AREN'T SAYING IT TO THEIR CHILDREN EITHER.

THE WORD IS NO.

NO ONE EVER SAYS NO ANYMORE.

NO.

YOU CAN'T AFFORD A HOUSE.

YOU'RE BROKE.

IT WILL HURT YOU TO BUY THIS HOUSE.

NO.

YOU'RE NOT ENTITLED TO OTHER PEOPLES MONEY.

NO.

NO, WE'RE NOT BUILDING A BRIDGE IN YOUR NEIGHBORHOOD.

SORRY.

IF YOU WANT ONE IN YOUR NEIGHBORHOOD YOU GUYS OUGHT TO GET TOGETHER AND BUILD ONE.

NO, AND SO, I'M AFRAID THAT THERE WOULD PROBABLY BE THIS HUGE WAR OR SOMETHING IF I WAS IN CHARGE BECAUSE I WOULD JUST SAY NO.

I WOULD JUST TURN IT OFF.

JUST LIKE THAT.

>> TOUGH LOVE.

>> YEAH, BUT IT WOULD PROBABLY SAVE THE NATION.

I MEAN, YOU KNOW, OR I WOULD TURN IT OFF AT LEAST GRADUALLY OVER A COUPLE YEAR PERIOD OF TIME UNTIL WHERE I'M DONE WITH THIS.

THIS OVERSPENDING.

YOU GOT TO STOP IT.

YOU GOT TO STOP THE STUPID SPENDING AND THEN YOU CAN GET OUT OF DEBT AND GET YOUR LIFE BACK.

AND, THEN THE FEDERAL GOVERNMENT IS REALLY NO DIFFERENT, BUT JUST SPENDING INTO OBLIVION UP THERE JUST CRAZY.

>> SO, THERE YOU HAVE IT.

A PRETTY BASIC JUST SAY NO POLICY.

AND WHILE DAVE ADMITS HE NEVER HAS BEEN ASKED FOR ADVICE WHEN IT COMES TO GOVERNMENT BUDGETS OR SPENDING, HE IS IMPASSIONED AND UNWAIVERRING IN HIS MISSION TO HELP INDIVIDUALS.

>> THE MYRIAD MILLIONS NOW OF FAMILIES AND INDIVIDUALS THAT WRITE US AND WE SEE AND, THAT WE RUN INTO DIFFERENT PLACES AROUND THE PUBLIC AND THAT KIND EVER THING I JUST SHARED OVER AND OVER AGAIN, HEY MAN THE STUFF YOU TAUGHT US CHANGED OUR LIVES.

SOMETIMES THEY SAY YOU CHANGED OUR LIVES THAT'S JUST NOT TRUE, BUT THE STUFF WE TEACH DID.

>> WHILE MANY COMPANIES DEFINE SUCCESS BASED ON THE BOTTOM LINE, DAVE DEFINES SUCCESS BY THE NUMBER OF LIVES CHANGED.

WHETHER IT'S THOSE TUNING IN, READING ONE OF HIS BOOKS, OR, ATTENDING AND SUCCESSFULLY USING FINANCIAL PEACE UNIVERSITY.

STILL, DAVE SAYS THERE IS MORE HE WOULD LIKE TO DO.

>> BUT YOU DON'T SEEM LIKE A GUY TO ME THAT WOULD REST ON YOUR LAURELS.

IS THERE A METHOD YOU USE TO PUSH YOURSELF FURTHER AND CREATE GOALS AND FIGURE OUT WHERE YOU WANT TO BE IN FIVE OR TEN YEARS?

>> ABSOLUTELY.

IT'S READING A LOT OF NONFICTION MATERIAL.

KEEPING PEOPLE AROUND YOU THAT NATURALLY STRETCH YOU.

WHO ARE BIGGER AND BADDER AND BETTER.

YOU GO IF I DO A LITTLE BIT OF THAT I COULD BE A LITTLE BIT OF THAT.

IF I WOULD WRITE A LITTLE MORE I COULD BE MORE LIKE THAT AUTHOR.

IF I COULD SPEAK A LITTLE MORE I WOULD BE THAT GOOD OF A SPEAKER.

I SEE SOMEBODY ON TELEVISION I GO MAN HE IS REALLY DOING WELL.

I WILL JUST STEAL A LITTLE BIT OF THAT.

IT PUSHES YOU OUT THERE TO HANG OUT WITH PEOPLE THAT ARE UM, DOING MORE THAN YOU'RE DOING.

AND I THINK IT'S TRUE FOR ANYBODY.

>> IS IT EVER HARD BECAUSE YOUR BUSINESS HAS GONE FROM SOMETHING SO PERSONAL TO ALWAYS DETACH YOURSELF FROM THE PERSONAL SIDE OF THINGS OVER IS THAT WHAT MAKES YOU SO SUCCESSFUL THE PERSONAL CONNECTIONS?

>>I DON'T WANT TO DETACH MYSELF FROM IT BUSINESS IS PERSONAL.

IF IT'S NOT YOU'RE CORPORATE AMERICA.

NO THANK YOU.

IT NEEDS TO BE PERSONAL.

IT'S A SMALL BUSINESS, THIS IS MY FAMILY.

IT MATTERS.

THESE PEOPLES KIDS OR PARENTS I KNOW THEM.

THAT WORK HERE.

THIS IS UM, IT IS ALL PERSONAL.

WE HURT WHEN THEY HURT, THEY HURT WHEN I HURT.

WE FIGHT BATTLES TOGETHER.

THAT'S HOW IT'S SUPPOSED TO BE DONE WHETHER IT'S DONE RIGHT.

IF IT QUITS MATTERS AND DETACH MYSELF FROM IT, I'M JUST QUIT DOING IT.

>> WILL THE GREAT DAVE RAMSEY EVER RETIRE?

>> IF WE FIND THE GREAT DAVE RAMSEY WE'LL ASK HIM.

NO I WON'T RETIRE.

I WILL JUST KEEP WORKING.

I WILL RELINK WISH CONTROL INTENTIONALLY AND BRAND TRANSITION THIS PLACE AND OWNER TRANSITION THIS PLACE.

I DON'T WANT TO BE 88-YEARS-OLD AND BE THE ONLY THING GOING HERE THAT WOULD BE BAD FOR THIS PLACE AND THIS CAUSE.

UM, BUT I FULLY INTEND TO BE LIKE MY FRIEND ZIG ZIEGLER IN MY 80s AND STILL SPEAKING BECAUSE I LOVE PEOPLE AND LOVE TALKING.

>> WE LOVED TALKING TO YOU.

THANK YOU FOR BEING ON ALIST A PLEASURE.

>> IT WAS AN HONOR THANK YOU FOR HAVING ME.

>> THANKS DAVE.

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