The Proven Plan to Become a Millionaire

Episode 15

Who wants to be a millionaire?

I think the better question is, who doesn’t?

With that kind of money, you can pursue your hobbies, live an incredibly generous life, and set your family up for success for generations to come.

And in the latest episode of The Rachel Cruze Show, I’m going to tell you how to get there. Yep. Secret’s out.

Show Notes

Before we dive into today’s episode, why don’t you daydream for a moment? Think big. Like best-job-ever big. Ultimate-vacation big. Becoming-a-millionaire big.

When I talk with people around the country, it’s that last daydream that really trips them up. After all, landing the perfect job or going on a dream trip seems at least somewhat doable.

But how do you become a millionaire? You need family money or a salary that pays hundreds of thousands of dollars per year, right?

Wrong!

With the help of my good friend, Chris Hogan, we’re going to show you how to become a millionaire without any family inheritance money and without the six-figure income, no matter what your age—no excuses. Are you ready? Let’s hop to it!

How to Spot a Millionaire

To start, let’s learn how to really spot a millionaire. You can do this by checking out the house they live in, the car they drive and the clothes they wear. If you know what a person does for a living, even better!

Who am I kidding? Appearances tell us nothing.

Take these two fictional gals for example:

Gal 1: Lauren

  • Lauren always looks the part.
  • She dresses sharp.
  • She drives a nice car.
  • She goes skiing every spring and surfing every summer.
  • She and her husband bring home a total of $250,000 a year.

Gal 2: Jane

  • Jane looks like your average woman.
  • She shops at Kohl’s and T.J. Maxx.
  • Her home and car serve their purpose, but neither one is all that impressive.
  • She takes simple vacations most summers.
  • She and her husband bring home a combined total of $90,000 a year.

Who’s on their way to becoming a millionaire? You might guess Lauren. And I would too, if I didn’t know this little secret: Lauren and her husband owe more than $2 million in debt among their mortgage, car loan and credit cards. Jane owns a paid-for home, owes no debt, and has money saved up for retirement.

What we’re talking about here is net worth. If you really want to learn how to become a millionaire, you need to start by getting a handle on your net worth.

What is net worth? Net worth, simply put, is your assets minus your liabilities, or what you own minus what you owe.

If you’re unsure about your own net worth, take a moment to do the math. Consider money in the bank, retirement savings and anything substantial that you own outright. Then list any debts. Subtract your liabilities from your assets, and you now know your net worth!

As you can see from our example above, Lauren spends every dollar she makes (and then some). She and her husband live with a negative net worth, meaning they owe more than they own!

Jane, on the other hand, owes nothing. Every dollar she puts in the bank or toward her retirement increases her net worth.

Want to know how to become a millionaire? Increase your net worth!

In fact, my goal is that you’ll work toward a positive net worth and begin to build wealth. To do that, you’ll have to stay away from debt. All debt does is make you look better than you actually are. I first learned this lesson way back in high school.

Real Millionaires Dump Debt

When I was 16, a bunch of my girlfriends and I made plans to go to a concert together. We were so excited. The tickets cost $100 each, but I really wanted to go so I saved up. I babysat any chance I got and saved every penny I could find to pay for my ticket.

But one of my friends couldn’t go. She said the ticket was too expensive. Normally I’d understand, but she drove a brand-new luxury car! Her family had an incredibly nice home, and she was always wearing designer clothes. I was bummed that she couldn’t make it, but honestly, I was more confused.

I remember asking my mom how this girl could drive a car like that but couldn’t afford a concert ticket. I’ll never forget what she said: “Rachel, that’s what debt does. This may not be your friend’s case, but remember, debt makes people look better than they actually are.”

What you see isn’t always reality. We don’t know what’s going on behind the Instagram shot, right?

So let’s stop worrying about what others are doing and start focusing on what works.

Expert Advice on How to Become a Millionaire

In today’s episode, I’m joined by my good friend, speaker and author, Chris Hogan. He just wrote a book, Everyday Millionaires, that is based on extensive research and a study of over 10,000 millionaires in the U.S.

I think you’ll be surprised and encouraged by what he has to say. We cover the biggest millionaire myths, like:

  • Wealthy people inherited all of their money.
  • Rich people have high-paying jobs.
  • Wealthy people get lucky and make risky investments.

The truth, Chris found, is that trust-fund babies are very rare and most millionaires are self-made. Many of them never even made a six-figure salary. Instead, they grew their wealth by staying disciplined. They paid off their homes and consistently invested in a company-sponsored 401(k).

Still sound too good to be true for you? I asked Chris some tough questions from our Facebook group, questions like:

  • If someone can spare $100 a month and they’re just getting started, where should they put their money?
  • How should I do retirement savings as a stay-at-home mom? 15% of zero is still zero.
  • How often should I check my investments?
  • Where is the best place to start learning about investments?

Be sure to check out the segment to hear Chris’ helpful responses. In the meantime, let me point you in the right direction for starting out in the investment world.

Find a SmartVestor Pro near you. These vetted investment professionals have the same wealth-building values that we do, and they always put the client first. You’ll have the opportunity to ask questions and learn on your way to becoming a millionaire.

Stay-at-home moms need more than just a retirement fund.

They need life insurance too!

Make sure that your family will be taken care of with Zander Insurance.

How to Become a Millionaire: Retirement Funding

Chris Hogan and I sit down with Elle Stoss. She’s a single woman in her late 20s and is absolutely killing it! Elle just paid off her student loan debt and has built up a fully funded emergency fund. Elle wants to know how she can set up her retirement accounts and follow the course of action taken by everyday millionaires.

Join us on the show as Chris walks us through the process. You might even recognize the journey:

  1. Set aside $1,000 for emergencies.
  2. Pay off all consumer debt.
  3. Save up for a fully funded emergency fund.
  4. Invest 15% of your household income into Roth IRAs and pre-tax retirement funds.
  5. Save for your child’s college fund.
  6. Pay off your home early.
  7. Build wealth and give.

Yep, folks. Those are the Baby Steps right there! It’s a proven plan for winning with money and the best path for becoming a millionaire!

Want to move through these steps at lightning speed?

Save time and money by cooking at home with Home Chef.

She Works Hard Saving Money

Once again, the best part of the show is back: #sheworkshardsavingmoney. You guys are back at it with so many awesome stories. Keep ‘em coming!

My favorite from today?

“I sold my Mustang GT (my baby of 14 years) to buy a used electric/hybrid vehicle. Mainly because my husband commutes at a minimum 45 to 50 miles a day. Although a lot of tears were shed saying goodbye to the Mustang, it’s been a huge blessing with fuel savings. He can make his hour commute all on one charge, and typically charges it at work so he can ride home without using a drop of gas. We’ve saved hundreds of dollars a month not having to pay much for gas, and when he has local travel we throw his mileage checks towards the mortgage. Doing this we’ve also been able to up his 401k contributions and max out his HSA.” — Kelly

Remember, friends, take control of your money and create a life you love!

Sponsors pay the producer of this show, The Lampo Group, LLC, advertising fees for mentioning their services or products during programing. Advertising fees are not based upon or otherwise tied to any product sale or business transacted between any consumer or sponsor. The following sponsors have paid for the programing you are viewing: Zander Insurance, Home Chef

Read the full transcript

– Do you think you can become a millionaire? Well, I think you can. So keep watching and find out how.

– Well, hey you guys. I am so excited about today’s show. We are going to talk all about millionaires. That’s right, millionaires. It’s a pretty fun topic. So we’re gonna have my friend, Chris Hogan, to come on, and he is a financial expert and he is now an expert in this space. He has some really fun stuff going on and I can’t wait for you to hear all about it. We’re actually gonna bring on a guest as well and talk to her and hear her story about how she is building wealth. So, you hear wealthy. Like I’m saying that word a lot and you’re probably, in your minds, thinking stereotypically, what wealth or what a millionaire looks like and probably what I think of something, right? You see a millionaire. We’ll say exhibit A. This is Lauren. I’m gonna just call her Lauren. I have no idea who she is but, she looks awesome and you probably have seen a Lauren maybe on Instagram or maybe in your life, you have a Lauren and Lauren and her husband do really well, they drive awesome cars, they go snow-skiing every summer, they go to the beach twice a year with their family. Ya know, they’re making together like $250,000 a year. They just bought a house that was worth like two million dollars, I mean, just she’s rich. You would look at Lauren and be like yeah, y’all are doing really well. You’re rich, yeah. Then, you see Jane. I’m calling her Jane. I saw her picture earlier and I was like she’s a Jane. Super sweet, like Jane’s great, right? But like, you know, her clothes are pretty average. They drive used cars, they live in a pretty modest home, her and her husband. Together, they make $90,000 a year, so pretty well, but nothing like extravagant. What if I were to tell you that actually Jane is richer than Lauren? Here’s the reality, you guys. It’s called your net worth. Your net worth is what you own minus what you owe equals your net worth. What we don’t know here about Lauren, sweet Lauren, yeah, she’s looking good on the outside, terrible on the inside. Everything is on credit cards. They have car loans, they have a mortgage, they actually put nothing down on that brand new home they bought and you think that they probably paid cash for it. They didn’t. They put nothing down ’cause they had nothing. They live paycheck to paycheck. They have no investment. They have no savings. They are stressed out. That is Lauren. Jane, Jane well, get outta here Lauren, Jane is actually amazing because they have a paid for house. They just paid off their house. They have no car payments. They save for retirement. So technically, Jane’s net worth is more than Lauren’s. You guys, this is like, not what we think of, is it? Again, I keep thinking over and over again, like we always see a picture of someone and we automatically think, “Oh, I bet they’re really wealthy.” The people that are actually wealthy in America today, you don’t even know who they are because they’re not on TV and it’s not all this glitz and glam. So for you guys, not only do I want you to get a positive net worth, but I want you to start building wealth so that you can change your family and you can change other people’s lives ’cause we say to live like no one else so later, you can live and give like no one else. I don’t want you to miss this point, that debt makes you look a whole lot better than you actually are. I learned this first in high school. I remember being in high school and there was a girl I went to church with and she had a brand new car, like when we turned 16, it was a nice, luxury car. Brand new car and she was the friend that always just had all her outfits put together. I remember we’d go out to the movies and we all wanted to go to her house to wear her clothes ’cause she had the best clothes. She had amazing purses. Her house was gorgeous. It’s like she had everything all the time. She was just that friend I had in high school. I remember thinking all the time, “Oh my gosh, she’s so rich. “They have to be so rich, they have to be so rich.” Well one day, we were talking and there was a concert coming up and so there were a group of us at church that wanted to go to this concert. The tickets were like 100 bucks. So not a free concert, it was 100 bucks. So I get it, it’s kind of an expensive ticket for a high schooler. But, that’s what it was. So we all talked. OK, we’ll go ask our parents. The next day, we were all talking and she said the words, “Oh, my mom said we can’t afford it this month.” I was like, “What?” In my head, I was thinking like, “You can’t afford it? “You’re driving a brand new car. “Your Gucci bag cost thousands of dollars.” I was like, “What do you mean you can’t afford it?” I went home and I was telling my parents about it at dinner and I was like, “Yeah, she can’t go “’cause her mom said they couldn’t afford it.” My mom said something I’ll never forget. She said, “Rachel, this may or may not be her case, “but remember, debt makes people look a whole lot better “than they actually are.” So you guys, that’s the reality of the world we’re living in whether it’s the Instagram life you’re looking at or the fashion blogger or the friends you have. Sometimes, the appearance that they put on, it’s not the reality. What’s in their bank account is not true. What’s in their investments may not be shown because they may not have any ’cause they spend everything they make. So again, building wealth, I’m gonna tell you over and over again, it’s going to be boring. It may not be flashy, but in the end, you’re actually going to be able to live and give like no one else. So, that is why I’m so excited that coming up is Chris Hogan and we are gonna talk all about this topic of millionaires and building wealth because he is the expert and he’s brilliant. So, check it out. Alright, the time is here. The man, the myth, the legend, fellow Ramsey personality and financial expert, Chris Hogan is here. Chris, welcome.

– Well, thank you.

– So glad you’re here!

– I have been waiting on my invitation. I keep hearing about The Rachel Cruze Show and I thought maybe my invitation got lost in the mail.

– I don’t believe it. If I heard that voice be like, “Take me on your show,” I’d be like, “Yes, God, yes!”

– Oh, listen at you. But no, it’s fantastic. It’s a beautiful set and I’m excited to be here with you.

– Well, I’m glad you’re here. Chris and I have worked together for many years now, which is awesome. Actually our desks are right next to each other. So, I feel like I know you so well and I know all the work you’ve been doing all these years but the work you’re doing right this minute is really exciting and I’m really pumped for it and I want everyone out there to know what’s going on because not only do you have a new book coming out, but you did this whole research survey all about millionaires and this whole episode, we’re talking about how to build wealth and what does it look like to be a millionaire, and you’re the expert now. You know it all!

– Well listen, we really dug in, you know? It’s not just me. This is the team. So, we commissioned the largest study that’s ever been done on millionaires. Rachel,

– Love it.

– we studied over 10,000.

– So, a lot of millionaires. So this is not like you went and grabbed four people that have more wealth and you’re like, “What did you do?” This is legit huge.

– We didn’t do a focus group where you find 10 people.

– That’s right.

– No, we did a study so much so we commissioned a company, a research firm to help us because we didn’t just wanna get people that know who Dave is, who Rachel is, and Chris is. We wanted to get out there and find out the reality. Every day people. What is it?

– Yes.

– So, studied over 10,000 of em. I have to tell you, the findings of the research, the stats that we have, the stories, and even the myths that we end up busting, it proves that the American dream is still alive and well, Rachel, and it’s available.

– It is! It totally is, I love it! So that’s the thing is, there’s so many myths around this part of our lives, right? Because you hear millionaire and you have all these thoughts of what a millionaire is. It’s not always true! Most of the time, it’s not. So, we actually sent our very own George Kamel if you watched the Dave Ramsey show on YouTube, George, he’s a great one isn’t he?

– He’s hilarious.

– You just put him in your back pocket. I mean, he’s just–

– He could fit too.

– He’s the greatest thing ever. George went out on the street to ask every day people their opinion on millionaires. So here’s what they found.

– Hey guys, George Kamel here. I’m in downtown Nashville to figure out what the average person thinks about what it takes to become a millionaire. Let’s do this. What do you think the normal careers are of the average millionaire?

– Doctors, lawyers.

– Singer or movie star.

– Business and investing.

– Tech industry, I would assume.

– Finance.

– TV.

– How do you think most millionaires got their money?

– Partially inheritance.

– A good salary per year to invest. You can’t become a millionaire unless you have the money to do it.

– Inherited it.

– I think a lot of it has to be luck.

– There’s one way to become a millionaire. What percentage of millionaires do you think inherited their money or got some kinda trust fund?

– 30%.

– OK.

– I’d say 80.

– 50%, at least.

– 70%?

– What would you guess is the average income of a millionaire.

– Oh, I couldn’t even guess. I know Kylie Jenner makes a lot of money.

– Kylie Jenner, that’s who I think of.

– 200,000.

– 300 grand a year.

– At least 250,000.

– 150,000.

– Do you think you could become a millionaire in your lifetime?

– Probably not.

– It would be nice, but that’s not gonna happen.

– No.

– Unfortunately not, no.

– OK, that is like, classic though, right? Those responses, that is! That’s the stereotypical response of what you think millionaires are all about!

– It really is, Rachel, and no matter where you go, you can go across the country. You grab every day people off the street and you ask them, those are the kinds of answers you’re gonna get because that’s what people truly believe as reality.

– Yeah, so one of the myths on there that I would totally believe if I wasn’t in my line of work and knew the reality is oh, people just inherit their wealth. You know, you think of the Kardashians or like, Paris Hilton, the Hiltons, right? You think of all these famous families and that’s who the millionaires are. But that’s not true!

– No, it is not the truth. The inheritance is actually a very small percentage and yeah, some of the people you named, you’re gonna hear about that and it happens, but for every day people, there are a very small percentage of people that get and kind of inheritance at all and even if they do, Rachel, what I found in the study, is that even if they did get an inheritance, it was so small, it didn’t cause people to become a millionaire. So it’s this mindset.

– They’re self-made millionaires.

– That’s self made. That’s the exact term that I use. So I want people to know this because now, what you have to do as an individual is make a decision and again, to work a plan that puts you on that path. It doesn’t matter what Mom and Dad lent you or if Grandma and Granddad lent you something or not, you still have an opportunity.

– Yeah, your destiny really is in your hands. The other thing that would make sense to me, again if I didn’t know, the answers of all this, but is that you need a high paying salary, right? Me, I’m like, oh, it’s math. Yeah you make a lot of money, you invest a lot of money and you’re gonna be wealthy. But a lot of these millionaires did not have high paying jobs necessarily.

– Rachel, they really didn’t and people believe that, that you need a high, six-figure income and so, if that’s the case, people that are making the average income or less than that, then they think it’s not possible. Again, in the study, we found out the truth. It doesn’t take a high income. What it takes is someone that is committed and focused and they tell their money what to do.

– The last myth that I’ve heard people say and people have told me this, you know, someone said, “Oh yeah, well you can only become rich “if you just do what rich people do in secret.” Like there’s all these secret things that millionaires know about and they do em but they don’t share with the rest of the world. Whole entire conversation about that with me and I remember thinking what, no, ’cause that’s not the truth! They don’t, it’s not luck and it’s not all these risky, crazy secret investments, right?

– Yes, well people believe that. They think they need to create something, right? Or take some kinda high super risk with the cryptocurrency ’cause you know we’ve heard about those things.

– Right, right.

– And you have to be able to do that in order to become a millionaire. Again, not true. It’s a myth. The problem is, Rachel, with some of these that we’ve covered, if you tell a myth loud enough, long enough, people start to believe it. So I want people to hear the truth and understand what’s available so they can decide for themselves and their legacy.

– I love it because not the risky investments, as we always say, ya know, what we teach when we teach people to invest into retirement, we say all the time, it’s boring. It’s not exciting stuff but it’s the diligent, when you do it over and over and over and over. That’s the cost.

– You know, we tell people to what, don’t invest in anything you don’t understand. So you need to be able to explain it to a 10 or 11 year old. That’s the basics because we don’t wanna take too crazy risks. We worked hard to make this money. Now I want people to make their money, work for them.

– I love it, OK, there’s some viewer questions and I usually grab a few questions from my Facebook group. Sarah asked, “If someone can spare $100 a month “or whatever amount and they’re just getting started, “where should they put the money?”

– We know baby step number one is to save $1,000, right? Because when you have that money tucked away, now you don’t have to use that and you don’t have to go see a bank or you don’t have to get a credit card, right? So let’s say now that she’s already got that in place, now what? I want her to use it to attack debt, right? Baby step number two. Then baby step three is to build up a three to six month emergency fund. Get that in place and now you’re ready to go. With what I call the wealth building steps. You wanna start to put that money aside, to be able to allow that money to grow for your dreams later.

– I love it, so good. OK and for all this investing stuff, you guys, go to our Smart Vester Pro. If you go to rachelcruze.com, look at that, because these are people that can really help you with your money. They have the heart of a teacher, not the heart of a salesman, and they are awesome. Again, the investing world, like what we’re talking about, all this stuff, it’s intimidating!

– [Chris] It is.

– I remember, even Winston and I, when we first sat down with our Smart Vester Pro, when we first got married and like, combined our money, he was talking to us, a few times, I was like, “Can you explain that again?” Can you explain that again? Even as Dave Ramsey’s daughter, there were things that I didn’t understand and I made him keep explaining it until I grasped it. So don’t feel stupid.

– No.

– Ask questions.

– I appreciate you bringing that up because Smart Vestors, they do have a heart of a teacher. That means they wanna help you. They’re not trying to sell you stuff. So, if you have questions, ask them. I promise you, they’re not judging you. They’re there to help you.

– Absolutely, alright, Julia said, “How often should I check my investments? “Once a year or more often?”

– Well, I think any time you’re looking at your situation, you wanna check investments every time that statement comes in the mail. You should be getting something from your 401k or 403b each and every month. Take a look at it but Rachel, I want people to hear me, don’t freak out. Investing is like riding a rollercoaster, right? Do you ride rollercoasters?

– I love rollercoasters.

– Do you sit up front?

– I went to Disney World recently, Chris Hogan. I love it.

– Did you sit up front?

– I did in Space Mountain! They put me in the very front!

– I’m not sittin’ up front. I sit in the back. I need some time.

– Oh no.

– Yeah, I need some pushing.

– I’ve gotta get right up there, gotta get right in the game.

– But listen, investing is like riding a rollercoaster. There are gonna be some ups and downs. But here’s the deal. When you’re riding a rollercoaster, as long as you have your seatbelt on, you know everything’s gonna be OK. So, my reality is is investing is a lot like that. When you have Smart Vestor Pro in your corner and you’re investing in things that you understand, you can relax, right, and take a deep breath. So look at it each and every month. But I want you to meet with your investment professional at least quarterly. If you’re married, you and your spouse need to go in for that meeting. So we’re talking about it, getting on the same page, and any questions that need to be answered, get answered in front of both of you.

– I love it. Corey asks, “How do I even start? “I’m a few months away from completing baby step three “and don’t have a clue where to start or even “how much to start with.”

– This is fantastic. So this is somebody that has paid off debt, right? So congratulations to you. I’m very proud of you.

– Yay! Corey, good job.

– Seriously, it’s a big deal.

– It is! A huge deal.

– People need to be encouraged about it. I love that you do that on your show. You’ve done a great job. What I want you to do is take steps now to start to prepare for your future. So that could mean, if you’re working, you could start to put that money aside in your 401k. Their employer has a match, which means they will match how much you put away up to a certain percentage, right? If there is no match, then let’s put that money in and then as you start to grow and you gain more income, you have an opportunity to use the 401k but also don’t forget about Roth. Rachel, Roth is my friend.

– Yes, Roth IRA. Me too!

– I may name my dog Roth. You know why? Because you’re talking about tax free money. Right, you’ve already paid the taxes on it. This money is gonna grow and the government can’t touch it anymore.

– That’s right. Alright, Danielle asked, “How should I do “retirement investing as a stay-at-home mom? “15% of zero is still zero, smiley face, “so is it 15% of my husband’s paycheck? “Should my husband and I put a higher percentage “of our money into his 401k at his job? “Is there a better option than a 401k?”

– Well, first and foremost, your job being at home is a very, very important job. You allow your husband to be able to work and do what he needs to do.

– Yep.

– So Rachel, the first thing I’d want her to do is to start to use a better pronoun. We, right? She’s saying his and my. No, it’s we, together. So, sitting down to look at that.

– I quote you all the time. I say my friend Chris Hogan says we need to be more French.

– That’s exactly right.

– We, we.

– Speak we, not me.

– I love it.

– That’s right.

– That’s right, I’m proud you give me credit.

– I do quote you.

– You didn’t steal it. I figured you’d steal it.

– I’m a giver, not a taker.

– But listen. It’s so important to be able to really know that you’re working a plan together.

– Yes.

– So, the 401k and them going to sit down with the Smart Vestor Pro, they both need to go, husband and wife. Right, because this is their money, this is their thing. But here’s another thing that can happen. Because they are, he’s working and there’s income and they’re filing taxes together, they could also sign up for a spousal Roth IRA. She could have this account in her name and that might make her feel better even though it’s all for the family. People wanna know what they’re doing. Here’s another beautiful thing. If she’s doing a side job or she’s doing anything else, she could also direct that money to a Roth IRA to allow her to save. So, the biggest thing for this is, if they’re saving in a 401k together, this is their money, this is the family money.

– That’s right.

– So they both need to be involved in the meeting with the Smart Vestor, and any tweaks moving forward.

– OK and something else I see stay-at-home moms skip is life insurance! Moms out there, even dads, but especially you stay-at-home moms, make sure you have life insurance. I always like to tell stay-at-home moms, at least half a million dollars on you because if something happens to you, your family has to be taken care of. Make sure you go to zander.com, check it out. Winston and I use Zander, but again, I see a lot of stay-at-home moms and they’re like, “Oh no, I don’t need life insurance.” I’m like no, the work you do at home. Like you said, it’s so important! And your husband has to fund that if something happens to you, so make sure you get it. Do y’all use Zander?

– Absolutely. Listen, your job as a stay-at-home parent has value. That’s stay-at-home moms and stay-at-home dads.

– Amen.

– If they’re out there. So you definitely wanna have that in place because guess what? Life’s gonna have to go on. You’re gonna have bills, you’re gonna have things you’re gonna need to pay for. Let’s make sure you’ve got some money put aside, term life insurance with Zander. They’ll help you out and they’ll walk you through any questions you have.

– That’s exactly right. OK, last question. Sarah said, “Where is the best place to “start learning about investing? “Any good books to start with? “I have a horrible financial background “and know nothing about investing. “We’re in baby step two and I am a planner. “I wanna start doing research now.”

– Well, I love that you wanna learn. I’d say you could start off with the book, The Total Money Makeover. That is book, that Dave’s book, it’s the number one bestseller. It really starts to break down kinda the principles. Then there’s another book out there, Rachel, I’ve heard about and it’s called–

– Oh, Love Your Life Not Theirs? What is it?

– It’s called Retire Inspired. It is a book that helps people chase down their dreams. And go after things they’re going for.

– It is good, though.

– But no, seriously.

– Retire Inspire is all about all of this investing stuff too.

– And I have a show. Chris Hogan show.

– OK, go ahead.

– Where people are allowed to call in. I take callers because I love people and I want them to be able to ask me questions.

– I go into Facebook communities.

– And I wanna be able to talk with em but no, listen, it’s an opportunity to grow in knowledge.

– That’s right.

– I think it’s really important for us when we don’t understand something, we tend to stay to ourselves and that’s dangerous.

– It is, yep.

– So, reach out and listen, our team has all kinds of resources, your show, my show, there’s opportunity out there to learn. So I just encourage you, get plugged in, talk to people, have a conversation, and don’t even feel like your question is dumb because there is no such thing. People need answers and that’s what we do. We help them.

– Again, we’re honing on this, you guys, but it is so critical because investing again, it can be an intimidating topic just like she asked. So, find someone that does this day in and day out. Those are our Smart Vestor Pros. Check em out and start on the road to investing so you can become–

– A millionaire.

– Oh, we didn’t even plan that. That’s pretty good.

– I know, that’s pretty good.

– Coming up next, we have Elle. She is here to share her story and to gain a little bit of knowledge from this man on more of how she can invest wisely and become a millionaire. Planning and cooking meals of the family can be stressful. Knowing what I’m going to cook, having all the ingredients, and making something everyone will love is a balancing act. That’s why I use Home Chef. They deliver straight to your door and get this, the ingredients are pre-portioned, so you never end up wasting food and throwing money away. Plus they offer 18 fresh choices to choose from every week. You’ll find easy to make, well balanced meals that the whole family will love. And it makes me feel like a true chef at home. Home Chef, meals anyone can cook and everyone will love. Visit homechef.com/rachel today or use the promo code Rachel at checkout and get $30 your first order.

– I was very stressed out by the number when I graduated college. You know, it was more than what I knew my starting salary was gonna be at my first job. So, my dad, he’s a farmer out in Kansas. In the summer times, I would help drive combine and tractor, and all you really have to do out in the field is listen to the radio. I was probably around ya know, 13 years old. I would listen to FM radio and then, I’d get really sick of hearing the same songs over and over again. So I learned to switch over to AM and listen to The Dave Ramsey Show halfway through the day. Unfortunately, I didn’t follow the baby steps when I went to college. I wish I had. So I was very stressed out by the number when I graduated college. Now I get out my laptop and I go through the exit counseling and I see this total. Ya know, it was more than what I knew my starting salary was gonna be at my first job. I knew I needed to do something and ya know, I remembered listening to The Dave Ramsey show and I knew that it had worked for other people, so I just turned towards that. I told everyone, I have this plan. I’m gonna pay them off in you know, a couple of years. They’re just like, “Sure, sure. “I’m sure you are, good luck.” And yeah, it is possible.

– So one of my favorite parts of the show is being able to bring people on who are winning, like every day people who are doing this. So, tada, Elle, that is why you are here! Thank you for being on.

– Yeah, thank you.

– So Elle has an amazing story. She just came to Ramsey Solutions to do her debt free scream on The Dave Ramsey Show. You are completely debt free.

– I am, it feels amazing.

– So great, so how much debt did you pay off?

– $60,000.

– And what did that consist of?

– It was all student loans.

– All student loans. So no car loans, no credit cards.

– Nope.

– Sallie Mae.

– Yes.

– You have gone through this journey to get to this point, to be debt free and you’re 28 years old, you guys. In your late 20s. So, tell me about this journey. What caused you to get started on all this?

– Well really, what got me started is just the fear of seeing how much student loans I had because I’m kind of ashamed to say but, when I graduated college and they have you do your exit counseling, I didn’t really know what that final number was going to be. So, when I went through that process and saw what my total was and then I saw what the monthly payment was and all the different payment options, I was just terrified. So I was kind of like scared into it. I was just like, “Oh my gosh, I have to do something.” I’ll do anything. So I knew about the Dave Ramsey plan and I just decided to go full speed ahead.

– It’s amazing. So, she’s a rare bird, right?

– You really are.

– We like to call you a unicorn, Elle.

– You are like a unicorn.

– You are a unicorn.

– Do you remember, how much was the total in that exit interview when you were there?

– It would’ve been high 50s, like high 50,000.

– And you remember the monthly payment?

– Oh my gosh, it was like 500, 600 dollars a month, something like that, yeah.

– I mean, I can’t imagine being in your shoes. You’re not working yet and here you see this thing that’s gonna be following you for many years but you made a decision. Yes, so how did you do it? What did you sacrifice to be able to attack this debt?

– I sacrificed a lot. You have to learn to say no to a lot of things. I mean, in college, now looking back, I do feel like I was living way above my means. So, when I graduated, usually that’s the time when you can start to do everything and you know, buy a new car and all this stuff.

– Like everyone’s getting their first job. All going out all the time and it’s so great, yep.

– Exactly but I had to really ya know, I don’t know, scale back everything. So that was really challenging but I’m so thankful that I did.

– Was it worth it?

– Yes, so worth it. To not have to worry about that payment and you know, you just have your basic living expenses and you can worry about your future rather than worrying about paying for your past.

– That’s so true. You just freed up a lot of money, right? Almost $600 a month.

– Right. You would’ve been paying.

– Oh yeah.

– And you said no, I’m gonna sacrifice. So I’m sure friends were buying cars. I’m sure friends were taking trips. How did you stay focused on this?

– Well actually, I got rid of my social media for a while.

– Oh! My own heart! That is so smart.

– I did and it mean, it was great. I could just worry about myself. You know, it’s just like what you teach about contentment and everything, that is so important and yeah, that was just so helpful to me. It’s just worry about yourself, worry about what you have. I kind of started to practice more of a minimalistic lifestyle too and like, that was beneficial. Yeah, it’s just really being intentional with your living really was helpful.

– Love it, so this whole episode is about wealth and being a millionaire and all this stuff, so what you’re doing is, you’re outta debt. You’ve actually done baby step three which is saving three to six months of expenses. So now you’re onto investing which is the main way a lot of people build wealth is over time, you’re doing this at 28 years old. So, my question to you is, in this moment, do you feel good about where you are financially? Do you feel like you’re putting enough away? Are you able to see the future at all?

– Yes, I do. I mean, I think I’m in a good spot but I kinda do feel a little behind because it would’ve been so nice to just go straight out of college and be able to just start investing right away but you know, I think I’ve done your RIQ before and yeah.

– Good. Are you investing 15% right now?

– I am, yes. I am investing 15% but only in my 401k, but I want to invest in a Roth ’cause I’m gonna just go up to my employer’s match and then start investing in a Roth.

– You should take our jobs.

– You’re on the ball! Seriously and you know what? A lot of people can feel like they’re a little bit behind, but listen to me. You’re 28 years old. You’ve got yourself debt free. You’ve got an emergency fund. You’re ahead of the game. So, investing 15% in your 401k is exactly what you should be doing. Now, you look at it and you go, “Maybe with some extra, I wanna do a Roth IRA.” That’s something you can do as well. So I want you to take comfort in knowing you have worked hard and you’ve sacrificed. You’re on the path to becoming an every day millionaire.

– I know girl, like you are it. You’re textbook, exactly it. So I don’t wanna pass too quickly across the $60,000 paid off in debt ’cause a lot of you out there, you’re in baby step two, you’re working to pay off debt, you’re in the middle of sacrificing, so I want you to, what would you tell someone when they’re like, “OK, I may be 38.” Right, let’s say they’re 38 and they have $60,000 still left in debt. What would you tell them? That they can do it? Like what’s your message to someone like that?

– I mean, it’s definitely possible. You’d really just have to get intentional with what you’re doing and what you’re spending. People always talk about the budget is the secret. I mean, it’s really not a secret. You just have to have a budget and know where your money’s going. I mean, that’s half the battle is just knowing where your money’s going.

– Do your friends know what you’ve done?

– Yes.

– What do they say? What do they say?

– They’re proud of me, I think. I don’t think a lot of them understood why it was so important to me at first, but I think now that I’ve finally paid everything off and I think they can see that like, oh, that’s really cool that she did that at such a young age. So, yeah, I think they’re proud of me.

– Well thanks so much for coming on. Seriously, like you are the perfect example of what to do ’cause people are in the middle of fighting this battle and they’re sacrificing and you’re giving them hope. You really are through your story, so thank you so much for coming out. You are a perfect candidate for the every day millionaire like we talked about. So I’m actually gonna be a giver. I’m gonna give away one of your books.

– I think that’s fantastic.

– Everyday Millionaires.

– Yes, yes.

– I’ll get him to sign it for you when it actually comes out. We actually get a copy that’s not pre-order to give to you, Elle. Hope you enjoy it.

– Oh my gosh. Thank you so much. I’m excited!

– Very proud of you. Very proud of you.

– Awesome, thanks.

– Guys, let’s be real. Being a parent is hard work. Now that I have two daughters of my own, it feels like the to-do list never ends. As every parent knows, your priorities change and you have to make important decisions for your child’s future. That’s why term life insurance is a must for every parent. It’s so easy to get and it’s affordable. What you’re looking for is 10 to 12 times your annual income to make sure everyone in your family’s taken care of. Winston and I use Zander Insurance. They do all the work for you to find the best prices and options. So, go to zander.com to get started on a quote today. Because that’s who we trust to take care of our family. Alright, my favorite part of the show. She works hard saving money special edition with Chris Hogan! This is so fun!

– Do I get to be involved?

– Yes, OK! So you read the first one, go.

– Fantastic. Alright, here we go. So, Kelly said, “I sold my Mustang GT, “my baby of 14 years, to buy a used electric/hybrid vehicle. “Mainly because my husband commutes a minimum of “45 to 50 miles a day. “Although a lot of tears were shed saying goodbye “to the Mustang, “it’s been a huge blessing with fuel savings. “He can make his hour commute all on one charge “and typically charges it at work “so he can ride home without using a drop of gas. “We’ve saved hundreds of dollars a month “not having to pay much for gas, “and when he has local travel, we throw his mileage checks “toward the mortgage. “Doing this, we’ve been able to up his 401k contributions “and max out his HSA.”

– Amazing.

– That’s fantastic.

– Alright, Mary said, “I’ve been riding public transportation “for almost 30 years. “That helped save on gas, parking fees, insurance, “car maintenance, and vehicle replacement costs. “Any my company subsidized over “half of the cost of my bus pass. “I calculated that it saved us over $100,000 “in the past 30 years. “And as an added bonus, I was able to read “educational books on the bus, “like Financial Peace University.” Love it.

– Well, Crystal said, “In a year and a half, we have paid off “$65,000 of debt, student loans, credit cards, “and even a car. “They sold their hous and they bought an upgraded home. “We have also bought a new used car for the first time, “paying in cash for $14,000. “Two years before, I never though I’d go “without a car loan. “We now have a six month emergency fund “and are working on saving for flooring for our new house. “We’re also working on moving on to baby step number four “within the next month. “I hope to be on baby step six by the new year.”

– I love it!

– It’s awesome. It’s possible.

– People winning all over the place. So great. Well Hogan, thanks for being on this episode.

– Thank you for having me.

– I so appreciate it. So make sure you check out Chris Hogan’s book. It’s on pre-order. When you pre-order, you guys, you get audio book, ebook–

– [Chris] You get two videos, one from me, one from Dave. Yes, you get some stuff.

– Yes, all free, you guys, with the pre-order of Everyday Millionaires. Make sure to do that. Thanks to Elle for coming out and sharing her story. As always, remember to take control of your money and create a life you love.