On this occasion, we bring you the recommendations of Dave Ramsey, one of the greatest exponents of Personal Finance. Each of the eight phrases seeks to generate in readers a process of reflection and learning to manage their money correctly and, above all, to free themselves from debt.
1. YOU WIN IN MARRIAGE WHEN YOU GIVE UP THE SELFISH DESIRE TO HAVE THINGS YOUR WAY. TALK AND WORK TOGETHER INSTEAD OF FIGHTING
Not only in marriage, formally speaking, but in all couples managing money together, managing it is not a competition or a debate in search of a winner. It is essential to consider that there are common points, but there are also differences.
The trick is in the consensus. We must understand that we cannot transform ourselves into the other person, nor can they transform into us. But indeed, they agree on those things that brought them together.
2. YOUR BUDGET SHOULD INCLUDE MISCELLANEOUS EXPENSES. HAVE A PLAN FOR ALL ASPECTS OF YOUR LIFE.
In life, not everything can be an obligation. But neither should it be to please us in everything. Much of our financial integrity has to do with how we balance our responsibilities, needs, and wants.
It is essential to consider something like miscellaneous expenses, other expenses, or extras in our budget. This will allow us to have an available balance to make purchases or consume freely.
3. BUILDING WEALTH IS A MARATHON, NOT A RACE.
Wealth beyond a concept of abundance has to do with a lifestyle. And not exactly a lifestyle full of luxuries and material things. There is something important that must be considered. Each of us must reflect on what wealth is.
Wealth may be closely related to money and luxuries, but not so much because this represents it. If not, because money and luxuries represent the opposite of scarcity. Despite this, we cannot rule out factors such as company, certainty, comfort, fun, and health. It is here that money and luxuries change the sense of wealth.
4. BANKS DO NOT TRY TO HELP YOU WHEN THEY OFFER YOU CREDIT.
Most banks are not “Little Sisters of Charity.” Their job is not to support the needy, or be supportive, much less visit the sick. The mission of banks is to generate profits.
The preceding is not intended to discredit the banking sector but to emphasize that banks’ business is to make money, not help us. For this reason, it is essential to know all the terms and conditions of the banking services that will be demanded. In other words, understand the benefits and read the “fine print.”
5. WE BUY THINGS WE DON’T NEED. WITH MONEY WE DON’T HAVE. TO IMPRESS PEOPLE WE DON’T LIKE.
Many people may frown upon this phrase, but unfortunately, it is the reality of many others. The imposed lifestyles in the consumer society (including fashions and “trends”). They greatly influence the way some people spend.
Let’s think about those things we buy and have used once. Or in a loan, we have made to achieve an offer or discount. Or think of the “Black Friday” phenomenon in the United States. “Just because it’s cheap doesn’t mean we should buy it.”
6. IF YOU DON’T TURN YOUR DREAM INTO A PLAN, IT WON’T LAST LONG.
Children dream constantly. We all did it our way. But unlike when we were children, perhaps today the imagination does not satisfy us. As adults, we have two options: We fulfill our dreams or turn them into frustrated or discarded dreams.
While perhaps the imagination does not satisfy us, we have one tool left: Planning. In essence, a Plan consists of defining a goal and all the actions necessary to achieve it. Now, can we achieve our dreams with a good plan?
7. YOUR CREDIT SCORE IS NOT A REPRESENTATION OF MONEY. IT IS A REPRESENTATION OF DEBT.
When banks detect that we have some income, they immediately begin to offer us different lines of credit. Of course, including credit cards in all their denominations.
Many accept these services, arguing that they will help improve their Credit Rating or Credit Score. But it is worth asking, is it clear what this qualification represents? Or is it clear what it will be used for in the future?
Now, do you need that credit that you will receive? Or do you know how to use that credit card?
8. MONEY DOESN’T MAKE THE DECISIONS. YOU DO.
You received the money. You earned it by working, or in a raffle, or they gave it to you, or you found it. In other words, you have money in your pocket. Now, what’s next? It is the moment of decision.
Should I save it? Should I pay the debt? Should I spend it? It’s the weekend. How about a Game of Thrones and Pizza marathon?
The point is that the money is still in your pocket until you decide. It must be considered that there are no final decisions, nor is there a manual with the best findings in the world. These decisions depend on each one of us. Of our tastes, priorities, things we do and enjoy, in other words, our Lifestyle.