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>> DAVE, I KNOW IT'S IMPORTANT
TO SET FINANCIAL GOALS, BUT A
LOT OF TIMES, I'LL TRY TO SET A
GOAL, AND IT DOESN'T WORK OUT.
WHAT DO YOU SUGGEST WHEN SETTING
GOALS LIKE THAT?
>> Ramsey: WELL, THE FIRST THING
YOU GOT TO REMEMBER ABOUT MONEY
STUFF IS, IT'S LIKE ANYTHING
ELSE.
ANY OF YOU EVER GONE
SNOW SKIING?
AND, SO, HOW'D THAT GO?
>> NOT TOO GOOD.
[ CHUCKLES ]
[ LAUGHTER ]
>> Ramsey: YEAH, THEY PUT YOU
ON THE BUNNY SLOPE.
THEY PUT ME ON THE BUNNY SLOPE,
I'M LIKE, "THIS IS A BIG
RABBIT."
AND, YOU KNOW, ON THE BUNNY
SLOPE, WHAT YOU LEARN TO DO
THERE IS NOT SKI, IT'S LEARN TO
RIDE THE CHAIRLIFT.
IT KNOCKS YOU DOWN, RIGHT?
YOU KNOW?
AND THAT -- YOU KNOW -- YOU ALL
KNOW WHAT I'M TALKING ABOUT?
SO IT DIDN'T WORK OUT, BUT HOW'D
YOU LEARN TO DO IT?
YOU KEPT DOING IT.
>> YEAH.
>> Ramsey: AND IT WAS TRIAL AND
ERROR.
AND THEN YOU RIDE THE BUNNY
SLOPE DOWN A FEW TIMES.
YOU KIND OF -- "HEY, I CAN DO
THIS."
AND THEN YOU GO UP, AND YOU DO
THE GREEN RUN, RIGHT?
YOU'RE LIKE, "OH, BIG MOUNTAIN,"
RIGHT?
Y'ALL REMEMBER DOING THAT,
ANYBODY -- YEAH?
AND THEN IF YOU KEEP GOING,
MAYBE YOU'RE GONNA DO A BLUE,
AND THEN -- I'VE BEEN SKIING FOR
YEARS NOW, AND I DON'T RIDE THE
BUNNY SLOPE ANYMORE.
I RIDE THE BLACK DIAMONDS,
YOU KNOW, SO IT'S THE SAME
THING.
YOU DO IT OVER TIME, AND OVER
TIME, YOU'RE GONNA FALL DOWN,
YOU'RE GONNA MAKE ERRORS, BUT
JUST KEEP DOING IT, AND YOU
LEARN FROM YOUR ERRORS.
AND YOU COULD KIND OF DO LIKE A
"CSI" AUTOPSY ON THE EVENT,
OKAY?
THERE'S A DEAD BODY.
I DID SOMETHING DUMB, OKAY?
WHAT IS -- WHAT IS THE DUMB
THING I DID?
LET'S DO AN AUTOPSY ON IT AND
FIGURE OUT, YOU KNOW, WHAT THE
DUMB THING I DID WAS SO I DON'T
DO IT AGAIN.
SO THERE'S NO REPEATS OF STUPID,
BUT YOU'RE GONNA DO SOME STUPID.
YOU'LL SURVIVE IT.
EVERYBODY DOES.
BUT JUST COURSE-CORRECT.
COME BACK IN, AND PRETTY SOON
YOU'LL GET RIGHT IN THE MIDDLE
OF THE ROAD.
AND THEN IT'LL BE A LITTLE BIT
SMOOTHER.
BUT EVERYONE, EVEN WHEN I'M
TEACHING 35-YEAR-OLD PARENTS OF
THREE HOW TO DO A BUDGET, I TELL
THEM THE FIRST THREE MONTHS THEY
DO A BUDGET -- AND THESE ARE
PEOPLE THAT HAVE BEEN RUNNING A
HOUSEHOLD FOR YEARS.
FIRST THREE MONTHS OF DOING A
BUDGET, IT'S NOT GONNA WORK REAL
WELL.
THERE'S GONNA BE SOME TRIAL AND
ERROR.
THERE'S GONNA BE SOME BUMPS ON
YOUR HEAD.
YOU'RE GONNA FIGHT SOME IN YOUR
MARRIAGE -- YOU KNOW, 'CAUSE
IT'S A NEW EXPERIENCE.
SO IT'S NO DIFFERENT FOR TEENS.
AS YOU START DOING IT, IT'S
GONNA BE UNCOMFORTABLE.
IT'S A NEW THING.
YOU'RE GONNA BE A LITTLE SCARED,
AND -- YOU KNOW, WHEN YOU FIRST
STARTED DRIVING.
IT'S THE SAME WAY, RIGHT?
YOU KNOW, IT'S LIKE, "10, 2,
10 AND 2"...
RIGHT ON THERE.
AND NOW YOU'RE LIKE, "CELLPHONE
AND MAKEUP," RIGHT?
OKAY?
AND -- 'CAUSE YOU GET MORE
COMFORTABLE AS YOU GO ALONG
'CAUSE YOU'RE MORE COMPETENT.
BUT AT THE START, YOU'RE LIKE,
"OKAY, BOOM, BOOM.
WHAT WAS THAT?
OH, THAT WAS THE CURB.
I TURNED WRONG," RIGHT?
REMEMBER THAT?
I DID THAT, OKAY?
AND IT'S THE SAME THING WITH
BUDGETING.
YOU'RE GONNA HAVE THOSE
"BOOM, BOOM.
OH, THAT'S THE CURB.
NOW I'M GONNA LEARN TO PARK A
LITTLE DIFFERENT.
I'M GONNA LEARN TO HANDLE THAT
MONEY A LITTLE DIFFERENT."
SO PLANNING, THE MORE AND MORE
YOU CONCENTRATE ON MONEY -- YOU
DON'T HAVE TO OBSESS ABOUT IT.
YOU DON'T HAVE TO BE COMPLETELY
OBSESSIVE-COMPULSIVE --
"I'M A MONEY PERSON," YOU KNOW.
BUT THE MORE YOU CONCENTRATE ON
IT AND FOCUS ON IT, AND THEN
JUST KEEP LEARNING FROM LITTLE
MISTAKES AS YOU GO ALONG, YOU'LL
GET BETTER AND BETTER AND
BETTER, AND YOU'LL GET MORE AND
MORE SOPHISTICATED.
>> WHAT KIND OF GOALS DO YOU
THINK MY AGE SHOULD BE SETTING?
>> Ramsey: THE FIRST THING YOU
OUGHT TO DO IS ALWAYS PLAN EVERY
PAYCHECK.
EVERY PAYCHECK OUGHT TO HAVE A
NAME -- EVERY DOLLAR IN EVERY
PAYCHECK.
ANYBODY GOT A JOB?
ANYBODY WORKING?
GETTING PAYCHECKS?
ALL OF YOU.
OKAY, WOW.
ALL RIGHT.
SO, BEFORE YOU GET THAT CHECK
HANDED TO YOU BY THE EMPLOYER,
EVERY DOLLAR THAT'S GONNA BE IN
THERE SHOULD HAVE A NAME.
SO, AS AN EXAMPLE -- ANNA, HOW
MUCH WAS YOUR LAST CHECK?
>> 96.
>> Ramsey: $96.
GOOD.
OKAY, SO YOU KNEW PROBABLY
BEFORE YOU GOT THE CHECK THAT IT
WAS GONNA BE $80 OR $100,
PROBABLY ABOUT.
BECAUSE YOU KNEW HOW MANY HOURS
YOU WORKED THAT WEEK.
YOU WERE KIND OF EXPECTING IT
'CAUSE, IN A SENSE, IN YOUR
MIND, YOU KIND OF HAD ALREADY
STARTED SPENDING IT IN YOUR
BRAIN BEFORE YOU GOT IT,
DIDN'T YOU?
AND ALL I WANT YOU TO DO IS
FORMALIZE THAT A LITTLE BIT AND
PUT IT ON PAPER AND SAY, "OKAY,
I GOT SOMEWHERE, 80, 90 BUCKS
COMING IN THIS CHECK, AND SO I
NEED TO WRITE DOWN '90 BUCKS.'
NOW, WHAT AM I GONNA DO WITH THE
90 BUCKS?
'CAUSE IF I SPEND IT ALL ON A
CLOTHING SALE, THE CAR'S GONNA
BE PARKED IN THE DRIVEWAY 'CAUSE
THERE'S NO GAS."
RIGHT?
"OR IF I DRIVE AROUND ALL OVER
THE PLACE AND SPEND IT ALL ON
GAS, AND THEN I SEE THIS COOL
SHIRT, I WON'T BE ABLE TO GET
THE SHIRT."
SO YOU BREAK IT DOWN.
YOU SAY, "I'M GONNA SPEND THIS,
THIS, THIS, AND THIS," AND MY 90
IS GONNA LOOK LIKE IT'S ALREADY
SPENT BEFORE YOU GET THE CHECK.
THAT'S THE BASIS FOR PLANNING IS
"THE BUDGET," THE MONTHLY
BUDGET.
AND THEN FROM THERE, YOU START
TO LOOK FURTHER AND FURTHER AND
FURTHER OUT.
YOU LOOK PAST THIS WEEK, AND YOU
SAY, "OKAY, BY THE END OF THE
YEAR, I'M GONNA GO TO COLLEGE,
AND I'M GONNA NEED A BUNCH OF
MONEY TO DO THAT, AND BECAUSE
MOM AND DAD CAN'T DO IT, AND
I'VE GOT TO DO IT, OR I'M GONNA
NEED -- CAR INSURANCE IS COMING
UP.
I GOT A BIG CAR-INSURANCE
PAYMENT COMING UP," OR,
YOU KNOW, "I'M GONNA HAVE TO
HAVE THE TAGS RENEWED ON THE
CAR, AND I GOT TO BE READY FOR
THAT."
AND YOU START LOOKING PAST THIS
WEEK, AND YOU START LOOKING OUT
A YEAR, AND THEN WHEN YOU START
LOOKING OUT 5 AND 10 AND
20 YEARS, AS YOU GO THROUGH
COLLEGE AND YOU GRADUATE, AND
YOU START HAVING AN OVERALL
FINANCIAL PLAN, THAT'S WHEN YOU
REALLY START TO WIN.
AND THEN THOSE LITTLE BUDGET
DECISIONS THAT YOU CONTINUE TO
MAKE FUNNEL INTO THE BIG 5- OR
10-YEAR PLAN, AND NOW YOU'VE GOT
A FINANCIAL PLAN -- JUST WHAT
YOU'RE TALKING ABOUT.
GOOD JOB, DUDE.
GOOD.
>> [ CHUCKLES ]