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DAVE RAMSEY CAME TO OUR CHURCH
So a cool thing just happened this weekend. Dave Ramsey came to our church (crappy cell phone photo attached)! I first discovered Dave Ramsey about a year ago when I initially started listening to podcasts. If you don’t know who Dave is, he is the founder of Financial Peace University, as well as a self-made millionaire. He helps people get out of debt with a simple seven step program called Baby Steps. David and I did not follow the steps of his course (we weren’t aware of it when we were working to get debt free). After we got debt free, we came across Dave’s podcast and realized that a lot of the things we had implemented were also what he taught in his seven step program. That was incredibly validating, and just goes to show that it really can be that simple.
I want to start off by saying that if I wouldn’t have already known who Dave Ramsey was and what he looked like, I never would have guessed he was a millionaire. He dresses just as nice as the father sitting next to me in the church auditorium - humble and polished, but not over the top. I was also surprised to learn that he spoke like a normal person. He made jokes, he was candid, and he was genuine. He seemed like an old family friend who had really good life advice because he lived a really colorful life. He spoke from experience. The fascinating thing about Dave is that he didn’t just get rich and live happily ever after. He got rich, and then he lost it all. As he likes to say, he didn’t bounce back quickly, he actually did more of a splat, because when you fall from that high up, it’s not easy to recover. However, he did recover, but just like anything that's worth doing in this world, it took him time. Time to plan, time to calculate and budget, and then of course, time to execute.
I wrote down the 5 steps Dave Ramsey shared with our church on how to be a millionaire, and I really want to share them with you. The thing is, you don’t realize how important it is to live debt free until you’re actually debt free - there’s a weight lifted off of you, a freedom to do anything you want and not be tied down to any type of financial obstacles or life struggle that is honestly liberating. It is total freedom. And here’s how you get there:
1. Get on a budget
It seems obvious, but most people never write one out. It doesn’t mean start a mental budget in your head and then don’t keep track of each penny you spend. It means open up an excel sheet and write out your expenses. A famous phrase he always says is “tell your money what to do, don’t let it tell you where it went”. You work hard to earn what you have, so don’t aimlessly spend it and not know where it's going. When you budget, you’ll be surprised to realize how much money you are truly spending on eating out, new makeup, video games, etc. Start with writing out your basic bills: cell phone, car payment, grocery bill, rent/mortgage, etc. If you are lost and have no idea where to start, we’ve created a basic spreadsheet for you to keep track, free to download, right here. If you've never budgeted before, this is a great place to start. This download includes a customized excel budget with formulas (did I mention its color coded?!) and a quick 15-minute intro video on how to use it. If you want a more customized budget with even more formulas and goals, but unsure of how to do it, we’d be happy to help you! Just reach out through email and we’ll get in touch.
2. Avoid debt A key point to remember is “the borrower is slave to the lender”. Anything you borrow from someone is always going to cost you a price. No one lends money out of the goodness of their heart (except the occasional family member, but that’s not the kind of borrowing we’re talking about here). Did you know that financial disagreements are the leading cause of divorce? It’s hard to be happy when you’re drowning in money trouble. If you’re already in debt, your first step is to stop getting into more debt. Cut the credit cards, no matter how many points or frequent flyer miles it gives you - if you don’t have the money to pay off your credit cards at the end of every month, you don’t have money for vacations and whatever other incentives you get from being late. Cut it! Sell your liabilities - is your car worth more than your rent? Is it more than you can afford? Cut it! Buy a cheaper car for now until you have the funds to give yourself something nicer. Material things are temporary, debt can be a lifetime if you don’t manage it. Don’t underestimate the little things, either. Every dollar counts. Do that garage sale, sell your old college books online, and put up that listing on facebook marketplace. You can always buy new stuff at a later date when you have the money. Don’t get attached to “stuff”.
3. Foster High Quality Relationships
Surround yourself with like-minded people. Have you ever heard of the phrase “you are what you eat?” How about “tell me who your friends are and I’ll tell you who you are”? All of these are true. Think about why you don’t like your kids hanging out with the wrong crowd. Are you worried they’ll turn into those they spend the most time with? If you’re spending your time around those who don’t share your common goals, odds are you’re going to fail. If you’re trying to save money and pay off your debts and all that your friends do is go to bars and eat out, you are likely to fall into that pattern pretty quickly. The fear of being left out is sometimes stronger than our will to follow through. Give yourself a fighting chance and surround yourself with people who believe in you.
4. Save your money
On first glance this seems like common sense, but I can’t tell you how many people think that it will never rain. There is always a rainy day, no matter what part of the world you live in. Saving money will help you feel a lot less anxious when something inevitable happens, like you need an oil change, you lose your job, your tires pop (recent personal experience) or you have to see a doctor for something urgent. Life is going to hit you no matter what, rich or poor. So be prepared for it and it’ll soften the blow.
5. Be generous Did you know that 93% of today’s millionaires are self-made? That means that 93% of us, if we really worked towards it, could be millionaires in the future. It’s true that money doesn’t buy happiness, it just makes you more of what you already are. If you’re happy now, you’ll be more happy when you have money. If you’re sad now, you’ll be more sad when you have money. And of course, if you’re an (insert expletive here), you’ll most likely just be a bigger (insert expletive here) when you have money. So be generous. When you are finally in good standing in your finances, and you have a rainy day fund, you’re free. So what now? Everyone is struggling with something, and some of those people are working hard to one day feel the freedom that you’ve attained. Help them get there. Put their lights on. Pay that grocery bill. The awesome thing about Dave Ramsey’s story is that on the outside, it seems like he got to where he is today all on his own. But he didn’t. He’ll tell you that a big part of his success was God. His dedication to remaining faithful (did you know that the Bible mentions debt as a negative thing 800 times?) and following a plan is what allowed him to be free. So be a good neighbor.
Now that you know how he got there, it seems simple enough, right? The thing I love about math (and I actually hate math) is that it’s either right or it’s wrong. You either save or you don’t. You either overspend, or you don’t. You either have the money, or you don’t. It’s simple to talk about it, but will you take the next step?
There are tons of free resources out there to help you stay on track, from this free budget download we created for you, to Dave Ramsey’s the EveryDollar app. Don’t let resources be an excuse. You’ve got the plan now, but the real question is... will you implement it?
*disclaimer: these are not affiliated links. I simply want to share resources with you and help you grow!
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