Kris Krohn here on Limitless TV and today we are talking about where Dave
Ramsey falls short in creating a true financial solution. I'm going to talk
about some of the great things that Dave does but I'm going to share with you the
one pitfall that will make all the difference in the world for you getting
and creating your real goals and your real dreams.
So here's the deal, Dave Ramsey is a fantastic place to start if you don't
have much of a plan because what he's gonna do is, he's going to show you how
do you get out of debt, how do you make your money stretch and last longer, how
do you snowball your debts to pay them down faster. And Dave Ramsey's goal is to
get you out of debt and to saving money for a rainy day. Now if every American
did this, I think America in general would probably be a whole lot better off.
And from that point of view, I love Dave's mission. I love that he's teaching
America, come on! Stop whipping out plastic every time you want something.
Learn some self-control. Do some budgeting. Set money aside. The shortfall
of this thinking is that, when I meet people, Dave has his people so absolutely
engrossed in this stay out of debt, debt is bad, debt is evil, that right now they
think that the goal is to be debt-free. And I have a question for you, can you
retire on no debt? can you eat no debt? will no debt send you on vacations?
No! When you retire and money does not come in but you have no debt, guess what?
You can't afford to live when you only just have no debt in other words having
your debt paid off is a level of security but it is not the highest level
of security. And I'm not even talking about being wealthy or rich. There's
something even more important than having no debt. Do you know what it is?
It's having a residual income or a dependable income that comes in whether
you are working or not. For example, choice A, choice B. Choice a,
payoff all of your debts and be completely debt-free or B, give you
$10,000 a month, each month for the rest of your living life. Weigh them out right
now. Which would you actually take?
Chances are, if your expenses are four
thousand a month, eight thousand dollars a month, or anything under $10,000 a
month you might be thinking, dang Kris I think it would be so cool to have my
debts paid off but you know what at ten thousand dollars a month
I can service my debts, pay down my debts, eventually pay off my debts, and have
leftover cash flow no matter what at the very end. So in other words, all we're
pointing out is that even though being debt-free is a
level of security, a level of freedom is what happens when you have a residual
income. So when do I pay off of my debts? I pay off my debts when I have a
residual income that comes in no matter what. For me, that's the first priority.
And so today and in a moment what I want to do is, I want to share with you what
is the upgraded plan beyond just being out of debt, beyond being a great budgeter,
what is the real plan for true financial security that doesn't leave
you at the bottom of the pit at the end of the day when you follow the advice
you got debt-free and then you had to reverse mortgage your house and then you
had to go back into debt because you couldn't afford to stay debt-free.
So if Dave Ramsey's plan fall short let's talk about what's gonna take you
from that first level of security, debt-free, and elevate you to where you
really need to go which is a residual income. A reoccurring income that has the
ability to be greater than your expenses. There are two things primarily that I
invest in that meet my criteria for a good investment. One is real estate
investing which I think you know because I got a lot of videos about that and
that's where I continue to create a massive amount of wealth. But the second
area where I also create a lot of wealth is in business. And not just business
specifically as in stock market, this is where I'm also investing in my business.
And out there you may either want to invest in someone's business that you
believe in where you've done the research or your own self, So I'll invest
in others businesses, my business, and real estate. And what that allows me to
do is it allows for a residual income, it allows for distribution to do more than
a 401k or an IRA or simply paid off debt. You know people ask me this question,
Kris then so when do you pay off your debt? Do you pay it off first or do you
pay it off after you get the residual? And friends, for me there's only one map
that works. I only retire my debts when I have
enough residual income that I can retire. Let me say that one more time. I only retire
my debts when I have enough residual income that I can retire because at the
end of the day, guess what? That is the higher level of security. Whether you're
in a network marketing company producing residual income, buying real estate
producing residual income, or there's a business yourself that
you're doing where you're trading ones for twos or twos four fives or whatever
that looks like, that's where you have a chance to get ahead. You need to invest.
You cannot save yourself to retirement. And that's the big flaw that's out there
is that if you're good enough saver that you'll be able to retire. Well are really
good savers go to work at Walmart? are really good savers find that they can
live for a few years after retirement without an income but then they've just
consumed all of their savings and there's nothing left. So make the
commitment today that you're gonna do the math and that you're not going to
engage in a broken plan that you know will not get you where you want. Become
open to the other possibilities that can produce wealth. Because if your plan is
guaranteed to fail then you might as well as look at a risky one that
actually produces the possibility of getting where you want to go. Because the
riskiest thing you can do is staying exactly where you're at that you know
won't work. When I put my money into business ,when I put my money into real
estate, there is risk but not nearly as much as standing still. And now the doors
are open and the possibilities are available for me to produce not just a
debt-free security but an investment level of residual income security.
Friends, create the life you want and pick a plan that has the possibility and
potential to get you where you want to go. Thank you for watching today. If
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can continue your financial and mindset education. Take care.