Dave Ramsey is a financial guru for the average person. Even if you think you’re doing alright with your money, Dave can help you see the folly of your ways that prevents you from truly excelling financially.
When I finally made the decision to focus on my finance and figure out the secret to creating wealth I explored numerous books, and audio programs by many different financial gurus. I read Robert Kiyosaki, Donald Trump, Brian Tracy, and even Gene Simmons, just to name a few. I began perusing business magazines, and I learned a lot by doing this.
The problem with most of these books and programs was that although they taught me a lot, most of them are written under the assumption that the reader already has a certain amount of capital at hand, ready to invest. But I was broke, getting by paycheck to paycheck. Sure, I knew saving was a good idea, but I was in debt, and any time I tried to save, some sort of emergency or an overdue bill sucked out that cash and it was gone. It began to feel futile.
I knew I should invest, but I was clueless where to start from my financial position, from broke. So one day, like a similar day years earlier, distraught with financial indignity, I made my way to the local book store to look for that bit of wisdom that I knew I had somehow overlooked. There, I came to a full sized advertisement for Dave Ramsey and his radio show, syndicated on a local station. So I browsed a couple of his books on the shelf. The advice between those covers was invaluable. What was best is that it applied to me, not just to someone with 30 grand waiting to be invested.
Being broke, I couldn’t afford to buy one of those books right then. Sorry Dave, but you told me not to spend money I didn’t have. I went out to my car and tuned into your show instead. It was one of the best decisions I’d made in years. I quickly became a regular listener.
Dave Ramsey has it down to a science. What’s more, he doesn’t assume you have any money to start with. In fact, his lessons begin (dare I say) with the assumption that you are broke, in debt, and completely clueless about money. It’s not that he talks down to you, as much as it is he wants you to clearly understand just how foolish the average person is about money, credit, and debt. He doesn’t try to sell you on a get-rich-quick scheme. In fact, he nearly condemns such ideas. The best thing is that Dave Ramsey told me were I should start and in what order I should do things to get out of debt and to prosper.
After listening to Dave on the radio for several weeks, Christmas was just around the corner. At the top of my list was Dave Ramsey’s Total Money Makeover. I opted for the audiobook version, because as I graduate student I don’t have a lot of time for leisure reading, but I can’t read my assigned materials while driving or working. I later took advantage of a Veteran’s Day giveaway and enrolled in his online Financial Peace University. By following Dave’s advice and applying his baby-steps, I have seen my finances improve amazingly. On top of that, I have much more peace of mind than I did just a year before.
Dave’s first baby-step is to save $1000 as quickly as possible (or $500 if you make less than $20,000 a year). This is the emergency fund to be used only in a genuine emergency while you begin working the next six steps. About six months into the program I had just such an emergency. An auto emergency was going to cost me nearly $300.
At first I was angry. This was all I needed. I immediately went into my poverty mindset thinking about how much inconvenience this was causing me in my life. Then I remembered my emergency fund. This sort of thing is exactly what it was there for! A little smile came across my face, and I actually felt good. Of course nobody feels good about having to shell out hundreds for unexpected auto repairs, but for the first time in my life I was actually financially prepared. I managed to pay it all off with one swift payment and drive out of the shop beaming with satisfaction. And that felt great!
It was all just a bump in the road. A year earlier, I would have been in a real pickle. I would have had to beg, and borrow. It might have taken weeks, or even months to get the finances together for the repairs, and it might have impacted my ability to pay my bills. This time however, it didn’t even affect my fun money. I could still go out to the pub that weekend for some good old Irish music, and within two months my emergency fund was topped off once again.
For anyone who is serious about getting their finances together, unlearning all their poverty inducing bad habits, and replacing them with wise wealth creating behavior, I cannot recommend Dave Ramsey more. He has helped me replace my naive hope for wealth with a practical and realistic plan for creating it. Dave can’t help everyone, however. The path to financial peace is not easy. It does take discipline and perseverance. You have to be ready, emotionally, psychologically, and spiritually to change your behavior, and to do the necessary work it takes to achieve it. The hardest part for many people is that you must be ready to take personal responsibility for your own financial situation.
If you really want to break the bonds of financial servitude and make your way toward wealth visit Dave Ramsey’s website now. Find him on your local radio station. You will be happy you did!