Getting a Grip on Your Financial Life

   Whether you own a business, run a business for someone, or couldn’t care less about business, this topic is for you. Dire prediction first: if you don’t get a grip on your financial life, it will get a grip on your behind. And it will never let go and let you live in peace.

   People have flung around pejorative statements about economics for ages. One thing is certain, however, that money makes the world go around. That is also true in your personal finances. In order to have peace of mind, the ability to think and problem solve creatively, and see your dreams come true, you must be in control of how your income is derived and how you spend that income.

   One of the financial gurus for financial fitness today is Dave Ramsey. Ramsey, through personal financial disaster, has developed a system for helping people learn to manage their money, and consequently their lives. Financial problems cause more disease and ailments than I care to mention here, as well as marital stress and breakups, family problems ranging from lack of basic subsistence to lack of educational choices, and ultimately will destroy your emotional and spiritual wellbeing. Money is not the problem. Go look in the mirror to see the real problem. But Ramsey has a way to help you get out of the mess and get a new life.

   Ramsey has written several books, articles, a total program called Financial Peace University, and has a radio broadcast, in addition to appearing on numerous television programs. His golden rules are straightforward, no-nonsense, easy to follow. The best part is that he offers real, demonstrable hope to all who have financial difficulties. You can overcome your problems, start over, and live a life of wellbeing.

   Ramsey destroys commonly held myths about money. First among these: you can live without credit. (I can hear the gasps now!) Outside of buying a house, you don’t need to buy a single thing on credit, says Dave. He points to the problem of buying into the belief system that we are somehow “entitled” to live like kings when we have a serf’s income. He points out that overspending and mounting debt will kill you. He encourages you to relinquish the idea that you need to get cash advances, use your credit cards for daily living, buy things you don’t need on a rent-to-own basis, and why debt consolidation is a trap.

   While you’re howling at this, find a copy of his book, The Total Money Makeover, and read it cover to cover. That will make a believer out of you. The book is filled with practical steps and advice for getting out of debt and succeeding at money management. It has very moving testimonials from real people who put the system to the test and transformed their lives. Imagine being thousands of dollars in debt, and in a short period of time, being debt-free with healthy savings, investments and sound strategies for living the rest of your life. Are you intrigued yet?

   Ramsey claims the only real way to get out of your troubles is to understand first of all that you have to renew your mind. By that he means using biblical principles for dealing with money (there are over 800 scriptures dealing with money,) and giving up the foolishness that passes for conventional wisdom in our culture. You simply cannot continue living beyond your income and think your life will have meaning. Every single thing you spend money on has no lasting value, can be destroyed in the blink of an eye, and costs way more than it’s price tag if your finances are in the red. Ramsey demonstrates over and over that listening to the voices of greed, lust, envy and covetousness leads us to think we have to outdo everybody in our family, neighborhood, whatever criteria you choose to use. You know, doing the same thing over and over and expecting different results is insanity. So spending more and more money hoping to somehow purchase happiness will not work. How has it worked out for you so far? If you are up to your eyes in debt, you know how unhappy you really are. So, are you ready for a change of pace? Let’s get it on, then.

   Next time I’ll share some of the principles in Dave’s book. If you can borrow a copy, do so. At some point you might need to buy the book. Even better, find a Financial Peace University class somewhere near you. The classes run for about 12 weeks and will transform your life. In the meantime, check out Dave’s website at www.daveramsey.com. Thousands of people and major national corporations can’t be wrong if they are touting Dave’s work. You can apply his ideas to your personal and business finances. That’s what we’ll look at next.

Have a terrific day!

Patricia