Total Money Makeover Motto

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What a great chapter. I really like Dave Ramsey. Do you want to know what I'm sick of? Excuses. I really don't like people who make excuses for things. And when it comes to finances, people are terrible with their excuses and justifications. "I needed that pair of sneakers." "My car wasn't any good anymore, so I needed that brand new one." It's all a bunch of BS and everyone knows it. The real problem is that there's far too much stuff out there to buy and far too many people have an addiction to spending. People are also extremely lazy and complacent. They get themselves into financial trouble and then beg everyone around them to clean up the messes they make. I have listened to far too many of Dave Ramsey's callers and I know how irresponsible they can be. And honestly, I don't think they want to change. It's only when they hit rock bottom do they crawl to the surface to ask for help.

But Dave Ramsey is the best. He doesn't let his callers get away with their excuses. He calls them out on them and politely informs them of what they'll need to sell, stop doing, or do. As an example, a woman rang into his show the other day. She was recently divorced and had been home schooling her three children throughout her marriage. Apparently, she also had no income. She was calling to ask Dave if there was a way for her to continue her lazy lifestyle without earning anything, while she continued to home school her children. From what I gathered, she obtained a lump sum from the divorce, so according to her, "She had a lot of money." That equaled $50,000. Dave told her that her lump sum would last a few months and, get this, she needed to get a job. There were crickets on the other end of the line when she heard this. I could so tell that this was not what she called in for. Dave's was probably exactly the type of advice she was trying to avoid. Too funny. I love it when lazy people are forced to face reality.

What's Dave's money makeover motto?

If you will live like no one else, later you can live like no one else.

I'm sure you can figure out what this means. If not, I'll explain it to you. Basically, he's saying that if you'll forego the pleasures of today that the rest of the world is enjoying, later on, you'll enjoy a life that very few are able to enjoy. It's all about sacrifice. Getting out of debt and fixing up your finances won't be easy, but it'll be very much worth it in the end.

From what I've gathered about Dave so far, I'd say that two ideas will remain throughout his entire book. The book called The Complete Money Makeover. The two ideas are this; avoid debt at all costs. Save up beforehand and never pay a banker anything you don't need to, not even interest on a mortgage. No credit cards, no mortgages, no car loans - nothing. If you can afford to pay it back, you can afford to save up for it and save yourself a lot of stress and heartache later on in life. Not to mention save you money on fees and interest. Bankers aren't your friends. They're out to get you. Yes, they will be very kind when you're walking away from their office with their cash in your hand, but they can be your worst enemy when you can't afford to pay them back. Avoid, avoid, avoid. It won't be easy because the American way to to buy today and pay tomorrow, but if you can get over your desires and alleged status in society, you'll own what you buy outright and be a better person for it.

The second idea fits like a hand in a glove with the first. It's called delayed gratification. I know, this is a tough one to swallow. American society doesn't like delayed gratification at all. We see something we want, check to see how much money we have in our bank accounts to buy it and if there isn't enough, we beg, borrow, and steal to get it anyway. We have trouble saying no. We lie to ourselves and feel as though whatever it is we want, we need it today or else. We focus more on timing than whether we can afford something. No money? No problem. We'll just borrow at 21% interest to get it, so when all is said and done, we'll have paid many times more for whatever it is we purchased than the item was or is worth. Not smart. Sacrifice the high of buying today for a more secure future. It's almost like we never grew up from childhood. A child screams, "I want it!" A parent doesn't need to scream anything. They just go buy it when they make up their mind to do so.

So what's the ultimate goal of personal finance? It's to stop the debt interest bleeding and to begin saving and getting paid. Banks hide their interest fees from their customers very well. They're crafty folks. Many customers don't even consider interest payments when taking loans, but lose tons of money each year to those payments. Paying banks interest on top of the principle amount of their loans stands right in the way of saving money and investing that money. Imagine getting paid interest and dividends instead of having to pay someone else the same amount? That's the goal. To turn the ship around and to become an earner instead of a payer. Paying on debt is for losers and earning from investments is for winners. If you stick with Dave Ramsey's money makeover motto, you'll reap these kinds of rewards for yourself.

This post is part of a series: The Total Money Makeover by Dave Ramsey
 
Total Money Makeover Motto was posted on 06-04-2021 by Phoenix1 in the Finance Forum forum.
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