Erika Taught Me Dave Ramsey: the 7 Baby Steps You NEED To Get To Financial Freedom
9 snips
Nov 7, 2023 
Financial expert Dave Ramsey, author of The Total Money Makeover, shares his signature 7 Baby Steps for financial control. He discusses the importance of money management, the pitfalls of leverage and borrowing, and the need for a proper emergency fund. Ramsey also talks about eliminating debt with intensity and the influence of your social circle on financial success. Plus, he shares personal experiences navigating tough times in marriage and seeking help to save the relationship.
AI Snips
Chapters
Transcript
Episode notes
Dave Ramsey's Financial Hardship
- Dave Ramsey experienced extreme financial hardship, losing everything including his home by age 28.
- This painful experience deeply shaped his understanding and principles about money.
The Myth of Borrowing to Wealth
- Leverage and borrowing to build wealth is often misunderstood and risky, especially for typical consumers.
- When adjusting for risks and taxes, the perceived gains from borrowing money to invest largely disappear.
Debt Snowball Beats Avalanche Behaviorally
- Paying off the smallest debts first (debt snowball) is more behaviorally effective than mathematically optimal methods.
- Psychological wins in debt repayment increase the probability of completion and success.