Dave Ramsey: 10 Money Myths That Keep You Broke
Written by
Heather Taylor
Edited by
Amber Barkley
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Who do you go to for financial advice? In a YouTube clip from The Ramsey Show, money expert Dave Ramsey warns listeners to be careful where they get advice about money.
Discover More: 5 Things You Must Do When Your Savings Reach $50,000
According to Ramsey, 78% of Americans live paycheck to paycheck. This means 78% of Americans should not give out financial advice. “When your broke friends have an opinion [about finances], just smile. No, thank you,” Ramsey said.
These are the top 10 money myths that broke people believe.
I Can Save Money Later
A Ramsey Solutions blog post said being able to save money later is one of the biggest money myths believed by broke people.
Building a solid future starts today, not the day you start to earn more money. Even if all you have to set aside is a little bit of money, it’s less you’ll need to worry about saving later.
Used Cars Aren’t Safe
Who drives used cars? Millionaires do, according to Ramsey Solutions, and eight out of 10 millionaires make this purchase without going into debt. Research the type of used car you want to buy, pay for it with cash and you won’t need to worry about taking out a loan or making car payments.
My Family Needs the Best or Else They Won’t Be Happy
You don’t need to buy your family everything they want the moment they want it. This doesn’t put their happiness at risk. As the post on Ramsey Solutions reads, the better approach for parents who want to raise money-smart kids is to show them the value of the dollar through hard work.
I Can’t Win With Money — I’m Too Old
You’re never too old to start budgeting, saving money, investing and paying off debt. What matters most is starting now to set you and your family up for the future.
My Credit Score Is Everything
“Let us assure you that the economy won’t fail — and neither will you — if you decide to attack your debt with everything you have,” the post reads on Ramsey Solutions. “Once you’re out of debt and at peace with your finances, that credit score won’t matter anyway!”
I Earned This
A common money myth many broke people believe is the hard-earned paycheck should be spent because, well, you earned it. According to Ramsey Solutions, however, it’s never a good idea to spend money without a plan. Create a budget or spending plan, track your spending habits and stay on track to reach your financial goals.
If I Make More Money, the Government Will Take It Away
Being an adult means you need to pay your taxes and bills and create a plan for the future. Adults, according to Ramsey Solutions, devise a plan and follow it. Earning more money does mean learning how to live a bit differently, if more of it goes towards taxes, but it also leaves behind a legacy for your family.
I Don’t Need Insurance
Even if you don’t like spending money on insurance, you need it to protect your family, home and self and to stay in good standing from a legal perspective if you drive.
My Neighbors Have It and I Should, Too
Keeping up with the Joneses is a very common money myth believed by broke people. The best approach, according to Ramsey Solutions, is to choose gratitude and contentment with what you have rather than worrying about what you do not have.
I’ll Always Be Broke
The moment you decide you’re tired of being in debt and are ready to work hard to get out of debt, you’ll be able to become debt-free. All it takes is pivoting your mindset to believe you can, and will, get ahead.
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