saving

Why is Dave Ramsey so angry?

~ David C.

I am a long-time listener of the Dave Ramsey show going back to when I first started getting fired up about being out of debt. We hit that milestone several years ago and thanks to his show being available 24×7 now on iHeart radio, I still listen often for motivation and information.

After more than 20 years on the radio, Dave is consistent with his message and his method. Quite frankly, I wonder at times if some of the people calling in with questions have ever actually listened to the show. There are certain callers that every time are ensured to get blasted as they tell about the money mistakes they have made and their non-Dave approved strategies to fix them.

Most recently I was listening when a fellow called in that was asking about what do with his car debt. As a recall, he was making less than $60,000 a year, had little savings, credit card debt, and payments on a $40,000 truck that he had purchased new. Through the radio, I could almost sense Dave’s blood pressure rise as he was about to lose it on this guy.

And lose it he did telling the man he had to sell the truck right away even though it would be at a loss and replace it with a beater car to drive until he gets his “mess” cleaned up. Even though this person had called in asking for advice, the man pushed back on the idea of selling the truck at a loss again and again until finally, Dave was able to beat the man into submission and agreement.

“You called and asked my option and that is a dangerous thing to do sir because I will give it to you”

Dave’s style for sure is not mine but I certainly understand his anger. What if you discovered that the secret to being out of debt and building wealth was actually not a secret at all? What if you personally experienced the joy winning and realized that just about ANYONE at ANY income could do the same? Wouldn’t you be angry that so many people with so much access to the formula listen and do nothing with the information?

The universal truth that you can’t help someone that will not help themselves. Most people seem to be living in denial and just are not thinking deeply enough about the future and instead are just concentrating on the present.

I totally get that. For me, it was my cancer experience combined with working for a company with frequent layoffs that finally turned my fear to the debt-free and save for later direction my life became. The thought of being jobless or worse ill with a pile of debt and bills to pay has kept me awake for many nights these last 20 years.

In those early days, there really was no 24X7 access to Dave Ramsey, blogs, YouTube videos, and the vast resources that are readily available now. If you are reading this on your phone, everything you need to learn about how to live a debt-free life and build wealth is right there in the palm of your hand. There really is no excuse.

I think, more than anything, that is why Dave and why many of us are indeed so angry. Looking back, my greatest regret is that it took me so long to transition from a fear-based got to have money for crises to a joy based focus on a WOW future post working. The good news is that now I am awake to all that is possible.

Are you awake? Are you angry yet? If you are not driving to being debt-free with a secure future this is your siren moment. Do not let this moment pass and instead take action.

10 Tips for Getting Debt Free–like me!

~ David C.

“If you want to live like no one else tomorrow, you have to live like no one else today” -Dave Ramsey

A saw a statistic the other day that said the average American consumer is carrying over $7,000 in credit card debt. The skyrocketing cost of college has also resulted in student loan debt at 44 trillion dollars with an average debt load of $37,172 for each person. These numbers do not include other debt “normal” people carry including a mortgage and a car. Add all of these elements together and you can understand the pressure people are feeling regarding their finances.

It seems most folks see debt as just a part of life. “You will always have a car, credit card, and a house payment”

Really?

Is this statement true? Why!

Having been 100% debt free now for four years and I can without a doubt say it does not have to be that way. It is possible to get out of debt and to stay that way.

Really, since being out of debt I find it very hard to imagine digging a new hole for my future. Lord willing I will never have debt again.

So how do you live a life without debt? Really it is a matter of mindset followed by habit.

Here is the simple solution:

  • Don’t buy stuff you can’t afford 
  • Don’t buy stuff you don’t need 
  • Live below your means 
  • Save Automatically 
  • Marry right 
  • Chose your career wisely 
  • Learn to enjoy free stuff 
  • Save today for the future you want twenty + years from now
  • Be content and grateful for what you have
  • Never stop learning 

The keys to a debt free live are there for everyone to grab. Now that I am there, I wonder why I ever lived my life any other way.

You can open this door as well with some planning, education and time. Just listen to the stories from Dave Ramsey callers for a week and I guarantee you will leave believing you can do it.

Why are you waiting?

How Diet Coke almost stole my retirement dreams

~ David C.
I still remember the day I realized that my daily diet coke habit was stealing my retirement dreams.
At the time, Coke was running a promotion using a code from a bottle cap to get prizes. You would save your cap, enter the number on a website and points would add up for something fabulous. I kept these caps in a desk drawer and it did not take long for these to really pile up since I had a long time frequent habit of visiting the machine at work several times a day. There was the before work Coke,mid-morning Coke, lunch Coke, mid-afternoon Coke and usually something towards the end of the day.
One afternoon I looked at the pile of caps wondered how much in cost that represented. Next, I began to think about cost over time and if I continued this pattern what it would mean in the long term. The final kicker was when I plugged in my average monthly diet coke spending into a savings calculator and considered how much $5 a day applied to retirement could mean if saved for the next 20 years.
The result was mind blowing. Over the course of 20 years these drinks would cost me $59,307 in opportunity. That is real money and a real chunk of change.
I decided at that moment to dig deep into my spending habits to find savings anywhere I could and then apply that savings to my get out of debt, save for kid college and retire comfortable plan. That was close to 20 years ago and I bet I have not visited a coke machine more than a few times at work. The savings redirected over this long period of time has made a real difference in the direction of our dreams.
We all have our cap pile spending excesses and most people put little thought into how these seemingly minor everyday expenses can add up to steal our future. This can be retirement, college for the children and more.  
Here is a typical pile for the average person in a month:
  • $100 sodas or fancy coffee ($5×20) 
  • $160 lunch ($8×20) 
  • $80 Snacks ($2×20)
  • $50 Gym Membership
  • $12 Netflix
  • $10 Spotify 
  • $12 Premium cable channel upgrade

 =$424 a month
These “small” charge items if instead invested with an average return over time:
Would equal $251,463 total saved in 20 years at 8%
Would equal $622,495 total saved in 30 years at 8%
Would equal $1,423,526 total saved in 40 years at 8%
Notice that on this list I am not including things like expensive vacations, dinners out, designer clothes, new cars, weekend fun or any other items many people tend to overdo. For many, these are just the basics.
If you are in your 20’s and 30’s listen to me now and wake up! Your small choices here and there to ensure you are saving will compound and open doors that only a savings calculator and your mind can imagine. You must start now if you want to have the freedom to do what you want as you get older and not live in poverty at retirement.
My journey to the golden exit is coming quickly and I am thankful for that day so many years ago when a pile of Diet Coke caps helped trigger a dream.  
You can do it too. You just need to educate yourself, write down where you want to be financially in the future and start today making the changes today that will secure your future tomorrow.

Take action
What is one thing this month you could give up and then re-direct to saving opportunity? Even a 1% increase to your 401K or IRA will make a huge difference over a long period of time.