Radio host and bestselling personal finance author Dave Ramsey has some important words to say about people who make mistakes with money.
On the one hand, they are not alone. Ramsey explained a little about how he overcame financial mistakes in his own life.
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Recently, a woman named Melissa asked Ramsey for advice on how to take control of her finances.
“Dear Dave,” he wrote. “My mom and dad always told me to live within my means,” she wrote, according to an email sent to TheStreet from Ramsey Solutions. “As an adult, I've made some mistakes with money, including going back into debt after paying it all off. I'm tired of this roller coaster and want to be in control of my finances forever. Can you give me some advice on where to start? “
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Ramsey clarifies what his financial mistakes mean
The radio host offered some words of encouragement.
“It's frustrating, isn't it? But making mistakes with money means only one thing. It means you're human,” Ramsey wrote.
“We've all done it,” he continued. “Think about this, though. We're approaching a traditional time of year for change. On top of that, you're smart enough to realize that what you've done in the past hasn't worked.”
Ramsey said he has his own experiences with making bad financial decisions and explained how he was able to fix the situation.
“Believe it or not, I was once in the exact same place you are now,” Ramsey wrote. “When it happened to me, there were three pieces of the puzzle that helped me break the cycle.”
“One was fear,” Ramsey wrote. “Specifically, I was very afraid of not being able to take care of my family and retiring broke. Now, don't get me wrong. No one should live their lives in fear. But a healthy person's reasonable level of fear can provide the necessary motivation.”
“Another was disgust,” he continued. “I realized that what I was doing was stupid. I was tired of living that way and I made a conscious and determined decision that things were going to be different.”
“The third piece, and perhaps the most important because it is connected to our spiritual walk, was contentment,” Ramsey added. “We live in a society that constantly has the idea that we will be happier, more successful, or more admired, if we just buy this or that product. We are constantly marketed to, and when we have these things in our faces day after day, we can feel dissatisfied. with almost every aspect of our lives. Don't let that get you down. “It's all just an illusion.”
Ramsey offers some specific steps to stop the pattern
The personal finance expert illustrated some concrete actions to take that can help.
“One of the things I did to combat this was to start living on a strict, written monthly budget,” she wrote. “Also, I stopped going to places where I was tempted to spend money. You shouldn't give a drunk a drink, right? So don't put yourself in a bad situation when it comes to your behavior with money. If you go “If you wander around the mall without a specific plan, you will lose every time.”
Ramsey also mentioned a tip to help with personal discipline.
“When you go to the store, make a list only of the things you need. Also, carry only enough cash to buy what you need,” he wrote.
“If you can get in and out without buying a bunch of things that weren't on your list, it's a win. Every time you do this, it's another win and one step away from your old habits and in the right direction.”
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