If you do this, there’s no hope for you (or so Ramsey says).
When it comes to being rich, there’s typically one thing that everyone wants to know: “How do I get there?”
Financial advisor Dave Ramsey explained his answer to this common question in simple terms on the latest episode of The Ramsey Show with co-host Jade Warshaw.
“Personal finance is 80% behavior, 20% head knowledge,” Ramsey said. “The mathematics of becoming a multimillionaire are learned by the 6th grade. Spend less than you make.”
Ramsey goes on to point out that there’s one thing keeping people from getting there.
“The problem is the guy in my mirror,” he said. “If I can control this goober he can be skinny and rich. But goober has a problem. His name is Dave. … the bad news is that I’m the problem, the good news is that I’m the solution. You just have to decide you want to do something different.”
Ramsey goes on to say that anyone can harness the most powerful wealth building tool — your income. But if you’re deep in credit debt, there’s a price to be paid to get out of “the mess you made.”
“Maturity is the ability to delay pleasure,” Ramsey said. “If all you do is go on your feelings, then you’re a child. Adults control their behaviors. Adults devise a plan and follow it.”
In other words, if you can’t manage to resist that fancy new Starbucks latte or that fabulous Coach purse, you’re probably going to die poor (but look great while doing it).