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Dave ramsey success story
Dave ramsey success story









dave ramsey success story

It is an envelope system where you put all the money you are going to spend into envelopes and stick to that budget.Ĭommunicating with your spouse. Too often marital problems start with money issues – which starts with miscommunication. Also, he advocates using CASH to really get a corporeal feel for the money leaving your hand. In many ways, he is a libertarian.īudgeting. He is a big believer in planning with a budget so that every dollar has a job. He calls this the “stupid tax” and tells the story of how he did lots of stupid money things earlier in his life. Ramsey rightly believes that we – as basic humans – act stupidly with money all the time. There is no shame in making sacrifices to get out of debt. If you are in debt – you should be willing to drive a car you are actually embarrassed to drive. He praises people who live on “beans and rice” to get by. He is proud of people who are willing to save 50-60% of their income to get out of debt. 4) Live like no one else, so later, you can live like no one elseĭave is really big into sacrificing now for the future. Understandably, this is pretty controversial point since there are 400K insurance sales people in the US. He argues that by the time the “term” is over – you should be financially independent if you have done your job right. He argues that “Cash value life insurance is one of the worst financial products available.” here. Ramsey advocates for term-life only because it is cheap and does it’s job – covers you against unexpected death during your earning years. Cash-value or whole-life or variable annuities – these are financial products which have other diverse features – growth or guaranteed return – which mix insurance with investments.It is only insurance and is a cheaper alternative. Term life insurance – fixed term (e.g., 20 years) with a face value (e.g., $1million) which is paid out if you die within those 20 years.This may be very US-centric, so for those not familiar with life insurance products, Ramsey likes #1 (basic, cheaper term-life insurance) Everything should be in cash (with the small exception of a house mortgage) he calls car leases, car fleeces – because you are getting cheated out of money. He feels the same way with student loans. He calls credit card companies evil and tells people to “cut up their credit cards.” He says that everyone should use debit cards or cash. He is a vocal opponent to credit cards and any debt (besides a mortgage). Give – Ramsey argues that giving is a critical part of money management – to be thankful for your blessings ultimately, money is a tool, not a goal.Invest – Put your money to work Same argument I made here that getting retired has more to do with the balance sheet (assets) than the income statement.

dave ramsey success story

Earn more money – Ramsey tells people all the time that they have a “revenue problem”, not an expense problem.Work hard – Put in the extra work 2nd and 3rd jobs are good.As one of his slogans say, “it’s the same advice your grandmother gives, but we keep our teeth in.” Afterall, the secret to money is to work hard, save, invest, and give. He is the first to admit that his financial advice is basic. He is loving and confrontational – like a smart uncle might be. It is not insulting, it’s just straight talk. He is unafraid to describe your spending habits as crazy, your relationships as broken, or your investment strategies as stupid. They are entertaining, informative, and a bit shocking. He has written several books, but I recommend his podcasts. If you are okay with listening to a straight-talking, Southern, not politically correct, but visionary financial coach, listen or watch Dave Ramsey’s podcast here. He is making an impact on people in the US, it is worth your time.Īuthor of shocking, but fun book: Total Money Makeover here (affiliate link). He only talks about financial planning and money management – but he can be just a polarizing and crazy as the other “shock-jock” radio personalities. He has been doing 2-3 hour radio shows since 1992, so it is almost 20,000 hours of evangelism on smart money matters. This is a famous radio host from the United States who I listen to regularly.











Dave ramsey success story