Get a Grip on Your Finances Part Two

   In the dedication page of his book “Total Money Makeover” Dave Ramsey praises all the people who have had the courage to change their financial habits to transform their lives. They did this because they “lived like no one else so later they could live like no one else.” This is the secret, if you will, to get financially fit. You must change your habits and live like no one else. That means you will stop living like your family, neighbors, coworkers, and most people you meet. You will have to resist the siren song to spend, spend, spend and the seduction of material goods. You will have to find out who you are and know your self worth somewhere besides your finances.

   Ramsey begins his book declaring that it is not a complicated scheme, a guide to investing, a get rich quick idea, a new idea, written by someone with no academic credentials, politically correction, wrong, or the same as his other books. He also modestly points out that the book is not getting complaints or criticisms from the people who have read the book, followed its principles and chosen to live their lives differently. After all those caveats, he gets to the actual steps involved in how to get a grip on your finances.

   The chapters in the book are as follows:

1. The Total Money Makeover Challenge
2. Denial (I’m Not That Out of Shape)
3. Debt Myths: Debt is (Not) a Tool
4. Money Myths: The (Non) Secrets of the Rich
5. Two More Hurdles: Ignorance and Keeping Up with the Joneses
6. Save $1,000 Fast: Walk Before You Run
7. The Debt Snowball: Lose Weight Fast, Really
8. Finish the Emergency Fund: Kick Murphy Out
9. Maximize Retirement Investing: Be Financially Healthy For Life
10. College Funding: Make Sure the Kids are Fit Too
11. Pay Off the Home Mortgage: Be Ultrafit
12. Build Wealth Like Crazy: Arnold Schwarzedollar, Mr. Universe of Money
13. Live Like No One Else

   The reason I listed the chapter titles is to give you a peek at the topics Ramsey covers in his book. Rather than giving you dry statistics about money, debt, stress, divorce, and all the other ills associated with money madness, he writes clearly and simply about how to get out of the slavery of debt and financial stupidity. He doesn’t lecture about the results; he includes testimonials of real people who have used the system to change their lives forever. The people giving the testimonials are ordinary people who got in over their heads in ordinary ways. These aren’t compulsive gamblers, people with mental problems that caused them to throw money away, or some other pathology. Most people in this country got into trouble one poor decision at a time.

   There is reason to have hope if your life is in turmoil over finances. The first thing you have to do is stop saying you don’t have a problem. I would say to you that if you have consumer debt other than a mortgage, you might have a real problem on your hands. Unless you’ve been living under a rock the past four years, it should be abundantly obvious to you what happens to people who are in over their hands with their money. If you lack financial stability and disaster strikes in your work life, such as losing a job or losing hours, your life quickly becomes a nightmare. But you don’t have to spend your life in darkness. There is a way out of the mess, it is a proven method, it works for everyone, and the underlying concept for it is simple.

   Ramsey’s method does not involve consolidating debt (something that usually brings the debtor into more trouble) or declaring bankruptcy. What is involved is a total commitment to follow the system, get out of debt, and stay out of debt. People who pay out all their income to cover debt are not putting aside money for investments in their future, their children’s future, or the ability to help anyone else. People living from paycheck to paycheck, whether they are very poor or very rich, suffer the same problem: they are not living, they are enslaved to the debts they owe.

   If you are in bondage to your mortgage, car payment, credit cards, loans and your life is miserable, take heart. You can stop the madness. You can control your financial life. Begin by taking small steps. Freedom is in your future. Get a system, stick to it, and free yourself to actually live and enjoy your life instead of constantly stressing and suffering. Get Dave’s book and read it. Make the decision to change your life, make the commitment to stick to a plan and a budget, and find a new way to live.

Good luck and have a terrific day!

Patricia