Dave Ramsey Tells Mom Her 24-Year-Old Son With $120K In Sneakers Is A 'Freaking Entrepreneur Rockstar' — But Has 'Too Much Tied Up In Inventory'
Dave Ramsey Tells Mom Her 24-Year-Old Son With $120K In Sneakers Is A 'Freaking Entrepreneur Rockstar' — But Has 'Too Much Tied Up In Inventory'
Casey B. RennerSun, March 8, 2026 at 5:00 AM UTC
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A six-figure sneaker business has a Phoenix mom worried her son is taking on too much risk.
Kathy called "The Ramsey Show" with concerns about her son's financial strategy, not his work ethic.
The 24-year-old earns $60,000 a year at his full-time job. Kathy said he has made $60,000 in profit flipping limited-edition sneakers. The business is worth roughly $120,000.
Financial expert Dave Ramsey encouraged Kathy to lead with praise.
"You have done an amazing job," he said. "You are a freaking entrepreneur rockstar."
High Returns, Low Liquidity
Kathy said she and her husband are debt-free and have always focused on saving and living within their means. However, their son reinvests nearly every dollar from his sneaker profits, saying he can earn about 20% flipping shoes.
Co-host Ken Coleman asked whether the $120,000 was all sitting in cash.
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Kathy said about $20,000 is liquid, with roughly $100,000 tied up in sneaker inventory purchased at shows and resold to collectors and stores.
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Ramsey said he would caution him about keeping more cash on hand.
"You have too much tied up in inventory," he said. "You're illiquid."
Ramsey advised slowing down "two or three clicks" and building more cash before making larger moves. The son has considered leaving his job to run the sneaker business full time.
More Risk, Less Control
Kathy's son recently put $10,000 down on a car and financed the remaining $20,000, maintaining that his sneaker returns outpace the interest rate on the loan. He is also considering opening a brick-and-mortar sneaker store requiring a $75,000 down payment.
"Pay off a stupid car," Ramsey said, calling the financing unnecessary. He said, "The hardest stage of parenting for me has been when I no longer had control over my kids because they grew up."
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