(WXYZ) - He has books, seminars, radio shows and success managing money. Dave Ramsey is a man on a mission to help you and your wallet.
“Personal finance is about eighty percent behavior and only about twenty percent head knowledge,” says Ramsey.
And that behavior he says is about breaking bad habits and his financial freedom game plan includes five exercises.
“If they do these five things over an extended period of time, then they’re able to win with money,” says Ramsey. “The first one is get on a written plan."
The budget plan puts your money to work rather than you wondering where it went., and Ramsey says planning changes everything.
“The second thing is you’ve got to get out of debt,” says Ramsey who has been there himself. “When you commit all your money to other people in the form of payments, you have no muscle to do any heavy lifting."
Paying off your debt means you can start to actually make money and then you’re on your way to step three.
“Act your wage, live on less than you make,” says Ramsey. “The only way to get out of that mess is to increase the income and decrease the out go- there has to be margin in there."
That margin takes you to step four.
“Number four, you’ve got to be a saver, unless you learn to save money, you will never win with money. I’m first going to save for an emergency fund, second I’m going to save and pay cash for things…,” says Ramsey who has faced foreclosure and mounting debt in the past.
The final and perhaps most enjoyable step.
“Number five, the most fun you’ll ever have with money- giving. There’s something that happens when you give, it changes you into something that’s better,” says Ramsey.
Ramsey says he wasn’t always smart with money and says for years he tried to out earn his own stupidity. It took being deep in debt and in foreclosure for him to turn things around.
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