He went from $40,000 in debt to a net worth millionaire in less than a decade by his early 30s. So what is George Kamel’s secret?
“In our study of millionaires, we found that boring habits were really what caused[people]to become millionaires,” says the best-selling author and co-host of “The Ramsey Show.” One person also said:
Kamel recently joined Adam Cox, head of First National Wealth Management, to bust common billionaire myths on an episode of the Sioux Falls podcast “Common Cents on the Prairie”™.
Keep reading to check out highlights from their conversation. When you’re ready, you can watch the entire episode on YouTube.
Become a net worth millionaire
Adam: You went from a negative net worth to a million dollar net worth in less than 10 years, which is amazing. Please set the stage for me.
George: Well, I grew up with immigrant parents from the Middle East, so I was a first-generation American here in America. My parents adapted quickly to American culture, including the culture of money. That meant building credit, getting credit, and getting a mortgage. I also fell into a similar trap. I ended up with $36,000 in student loan debt. I have two credit cards. And then I was $4,000 in credit card debt, I was frustrated, I was anxious, I was still broke, and I thought, this is not okay. Living like a mouse in a financial maze is not what we were created to do. So I escaped the mean and connected with the Ramsey organization. I interned here and took our flagship money course, Financial Peace University, and it truly felt like a veil had been lifted. Over 18 months, I paid off $40,000 in consumer debt. I met my wife in Ramsey, and she was much wealthier than me, better looking, and better at spending money. We started our married life with no debt. We got our house in a very frugal way. I made a large down payment on a 15-year fixed mortgage and paid it off in 26 months. All of this, in addition to investing in our 401(k) here at Ramsey, led us to suddenly become net worth millionaires in our early 30s, with no payouts in the world.
Adam:
In your book, “Escape from Bankruptcy,” you quote, “Until I went bankrupt, ignorance was bliss.”
George: You know, my journey from consumer finance to debt-free was when I was single. The good thing about my ignorance is that when you don’t know much about money, it’s easier to make mistakes. It’s easier to justify them.
And that’s what happened when I went to Financial Peace University and read The Total Money Makeover. You can stay in debt, but your body is like, “You know this isn’t safe, right?”
Ignorance usually leads to pennilessness. Because a lack of financial literacy is why so many of us make these financial mistakes, sometimes taking decades to correct.
Adam: My encounter with Dave Ramsey began at the end of graduate school. My wife lived in Minneapolis and I drove back and forth between South Bend and Minneapolis, so I had a lot of time to protect my windshield. So I stopped by Barnes & Noble, found “The Total Money Makeover” on CD, and listened to it on the way there. Part of me wishes I had found it sooner.
George: Like we all do. We always say the best time to plant a tree is 20 years ago. The next best time is today. But I have to go.” “Okay, I’ll start today.” Whether you’re 30, 40 or 50, there’s still time. I still have hope. ”
Breaking the millionaire myth
Adam: You went from a negative net worth to a million dollar net worth. During this period, did you do any of the following? Did you win the lottery?
George: No.
Adam: Did you sell the business?
George: No.
Adam: Did you create an app?
George: No.
Adam: Did you inherit a lot of money?
George: Zero.
Adam: So you started making millions of dollars a year?
George: No. But Dave (Ramsey), if you’re listening, I think this guy has an idea. I like him.
Adam: So you’re a normal guy, right?
George: It’s so boring that everyone gets excited when they ask, “What’s your secret?” And I say, “Let’s invest in a 401(k) and pay off the house as soon as possible.” that’s it. The reason it’s so simple and yet so difficult is because we want to overcomplicate it. We want it to be sexier and more interesting than it actually is.
But in our millionaire study, we found that it was really boring habits that led people to become millionaires. It’s just, “I have an employer, I’m saving money for the future, and I’ve paid off my house.”
Adam: We always talk about people selling businesses, having big liquidity events, tech billionaires, things like that. But I think your research proves over and over again that most millionaires are W-2 millionaires, but most of them don’t do what you’re talking about, which is their 401. (k) Through.
George: And for people in their 20s, it’s frustrating because it’s instant gratification. So they look at their parents, who are probably still going to have a mortgage and continue to work into their 60s, and say, “Oh, no. You have to be a millionaire by the time you’re 30. ”
The heartbreak is, “Who told them they didn’t have time? Who told them that a million dollars would change their lives?”
“It’s not all your fault, but it’s your responsibility.”
Adam: How do you feel when you hear young people saying that success is unattainable, that it won’t work out?
George: 23-year-old me said this. “It’s everyone’s problem. It’s the baby boomers’ fault for destroying the housing market. The people in the White House need to fix this. When will student loan forgiveness happen? If inflation kills me. I will close it.”
It’s all these mental gymnastics and rationalizations that keep us where we are. In the end, you need to realize that it’s not all your fault, it’s your responsibility.
So when you work through all of those things and you look in the mirror and think, “That person is the solution,” things change.
Adam: Everyone at this point has heard of FOMO, or the fear of missing out. Please tell me what JOMO is.
George: FOMO is at the heart of many young people. Fear of becoming a homeowner, traveling, or losing what you have. So the other side of the coin is JOMO, the joy of missing out on opportunities.
There is joy in having a season of setting boundaries, saying no, making sacrifices, and knowing that you are doing what is best for your family because no one is paying the bills.
The joy of missing out comes down to being able to smile while working on a side hustle, or eating lean food when you want to go out to eat. Because I know the freedom that lies on the other side.
To learn more about George becoming a millionaire, watch the full episode on YouTube or listen on your favorite podcast streaming app.
And if you’re ready to take charge of your financial situation and would like some additional guidance, reach out to the team at First National Wealth Management. They will be happy to help!
Any comments, insights, or strategies discussed in this article are general in nature and therefore may not be appropriate for you or your situation. there is. Please consult an attorney, certified public accountant, or financial advisor before acting on anything written here.
