Dave Ramsey is one of the great personal finance gurus and for years he has been training thousands and thousands of people on financial education issues.
yes book “The total transformation of your money, An effective plan to achieve economic well-being” It is one of the most recommended texts in the area of personal finance. In short, an excellent example to create strong savings and investment bases, no matter what economic situation you find yourself in.
Ramsey discusses a wide range of topics related to personal finance and how they all directly or indirectly affect your bottom line.
How to pay your debts, create emergency funds and how to save a large part of your income are topics that you will master if you decide to give this entrepreneur the opportunity to be your tutor through his book.
You can buy it and read it directly from your phone or tablet by doing click here.
Check out 11 of Dave Ramsey’s tips on financial education below:
11 financial education tips from Dave Ramsey.
1. You are responsible for how you spend your money: The most responsible way to use your money is by deciding how you are going to do it. If you spend reactively, that is, as expenses arrive, you will end up losing money.
You must create a budget from the previous month and you must follow it to the letter. Remember, plan how you are going to spend your money the month before and NOT on the fly.
If you want to know how to create a budget for your personal finances, click here.
2. It’s okay to have things, but don’t let things have you: We all want to have our own toys. Many of them we don’t need, but if we work that hard we can treat ourselves from time to time.
Just don’t let indulging cross the limits. Have fun but put everything in its place and remember that there are other much more productive things you could do with that money.
Also read: The 7 deadly sins of finances (So that you avoid falling into them)
3. If you live with your partner, the job is for both of you: If this is your case, you do not have a money problem, you have a relationship problem. Your partner has a great influence on your finances and it is essential that you both are on the same page and have financial goals.
Teamwork can leverage your results, otherwise it would affect your results. This in turn will give them the opportunity to provide an excellent foundation in financial education to their children.
4. Being in debt is an emergency: Debts are little holes in a boat. They sink it slowly and when you notice it it’s too late. Focus on learning how to pay off your debts first, since they are an emergency.
5. Your children will inherit your financial skills: This will not only be a great advantage for your children, it is incredibly something that you can use to your own advantage. Not for your children to help you in the future, but because setting an example and teaching them keeps you focused and very aware of your finances.
Setting a good example is one of the main reasons for managing money well. Become the teacher in financial education for your children.
Also read: 13 habits of poverty that you are teaching your children without realizing it.
6. Do not buy anything that your grandparents do not have: We often think that many of the latest technologies are essential to living a happy life. However, Ramsey often suggests thinking and acting like our grandparents when making financial decisions.
7. Paying for your house and your car are not the best way to live: As mentioned in point 4, debts with emergencies. We fall into the trap of needing a car or a home and although they appear as assets on our balance sheets, they behave as liabilities.
Maintaining them requires monthly payment of loan installments, services, maintenance, gasoline, etc. Pay what you can afford in cash and invest the savings. Don’t spend what you don’t have.
8. Building wealth is a good thing: Wanting money is not a bad thing. It does not mean that you are greedy, pretentious or that you want to be above others. Building wealth isn’t bad, but loving money above all else is.
Also read: 5 excellent ways to make extra money from home.
9. Never blame others: Dave says that very often he meets people who seek his help, the problem is that they are always blaming others for your situation.
The first piece of advice Dave gives is: “Take responsibility”. The first step is to accept that whatever your current situation is, it is your fault and you are solely responsible for where you are.
Also read: How to get money. Work first on your way of thinking.
10. Don’t worry about what other people think: To finish one of the most valuable tips. When you make decisions that go against social norms, that usually means you’re doing something right.
11. No to credit cards: Credit cards are a hotly debated topic. Ramsey adamantly states that it’s best not to have them, even if you put them to good use. Even if you pay your card in full every month, the mere fact of having it and using it makes you spend 22% more money than if you used cash determined by a budget.
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