Finance expert Dave Ramsey swears by these 3 secret money tips to build wealth faster than ever
The financial landscape is rapidly changing. It's crucial to have a solid understanding of money management and financial literacy to fight the uncertain economy and save. Unfortunately, many essential money concepts are not taught in schools, which is why experts like Dave Ramsey are helping people out. Here are three key learnings for people from the radio host, bestselling author, and personal finance expert's money secrets.
1. Get active with money management
In one of his blogs, Ramsey explains that money management is the process of handling finances by budgeting, spending, saving, investing, and giving as well. He writes that it is as important as brushing your teeth every day. He further cautions that personal finance is 80% about behavior or action and 20% knowledge.
He also shares 10 tips to start managing money, and these are: taking a financial inventory, making a monthly budget, tracking expenses, building an emergency fund, paying off and avoiding debt, limiting spending, saving up for purchases, investing, and getting protection with insurance.
2. Never invest in the unknown
In an episode of his radio show, Ramsey shared that the secret of the rich is that they only invest in the things they know. "Don’t put money in something because it sounds cool and some good that you think is cool is telling you to do it or that has done it himself," he says.
@daveramsey Never put your money in something you don't understand. #investingforbeginners #moneytips #moneysavingtips #investing101 #investingexplained ♬ original sound - Dave Ramsey
According to Ramsey investing in the unknown is how people lose their life savings. One example of it shared by him was of Bernie Madoff, who swindled people into investing large money in something they didn't know and pulled off the largest ponzi scheme in history.
3. Contentment is key
In one of his episodes, Ramsey describes that contentment "is being at peace with where you are". He says while it is not an excuse to be lazy, it is rather important for people to become wealthy. He explains that people who are content with what they have, are able to save and put money toward their future, instead of spending it.
Furthermore, when people are content, they can sacrifice a desirable lifestyle to pay off their debt. "Content people don’t mind giving up a vacation or two, because they know their debt-free vacation five years from now will be so much better," Ramsey writes in his blog.
He adds that content people also "live their lives with an open hand." He says life is richer when people care about giving.
He also cautions that contentment is hard to find and there are several barriers to achieving it. He writes, that jealousy and comparison are the two biggest enemies of contentment as they can steal it from people quite easily.
However, contentment can be achieved by practicing gratitude. He writes Zig Ziglar was right when he said, “Gratitude is the healthiest of all human emotions.” He further calls gratitude a choice that people make every day.
The other key to finding contentment is humility, according to Ramsey. He says that the best way to get out of comparison and jealousy is by serving someone else. He says when someone is humble, they realize that getting stuff isn't the only way to find joy.
