I first heard of Dave Ramsey about a decade ago when I reviewed his book,
The Money Answer Book, for a bloggers' review program called Booksneeze. During that time, I was
so into the teachings of Robert Kiyosaki of the
Rich Dad, Poor Dad
fame and I admit that I wasn't 100% amenable to Dave's ideas then.
Five years later, I heard the Dave Ramsey Show over the radio, and I was
hooked to his no-nonsense and practical approach to finances and life in
general when giving out advice to his radio show callers. I became an
avid listener of the show and until now, even when I'm already living in the
Philippines, I still listen to his podcasts over Spotify and YouTube. The show isn't only
brimming with ideas and information, you'll also hear real-life inspirational
stories of people who conquered their debts, improved their financial
condition and/or on their way to achieving financial peace.
Dave Ramsey's books, like The Total Money Makeover, and The Complete Guide to
Money, have some things in common: his dislike for debt, the importance of
budgeting, and our responsibility as Christians to become good stewards of
wealth. His financial principles are not only based on common sense; he also
threw in there experience, wit, education (he has degrees in Finance and Real
Estate) and biblical concepts.
Nowadays, because of the COVID-19 pandemic, many people are into financial
turmoil and uncertainty. Nevertheless, I have a feeling that those who
followed Dave's Ramsey's principles are quite thankful that they fixed their
finances early on. Actually, anyone who completed at least the third step of
The 7 Baby Steps are experiencing less stress in dealing with the economic
problems brought about by this COVID-19 pandemic.
Below is a list of Dave Ramsey's 7 Baby Steps.
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The 7 Baby Steps. | Source:
Dave Ramsey's Facebook Page |
Step 1: Save $1,000 in a beginner emergency fund.
Step 2: Pay off all debt except for the house.
Step 3: Save three to six months of expenses for emergencies.
Step 4: Invest 15% of your income for retirement.
Step 5: Save for college for your children.
Step 6: Pay off house.
Step 7: Build wealth and give.
Ramsey said that "winning at money is 80 percent behavior and 20 percent head
knowledge." While Dave Ramsey's target audience is US-based, there's a lot
that we can learn from his teachings, regardless of where we are residing.
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