Dave Ramsey Show Host George Kamel: 5 Money Myths Broke People Believe
Written by
Nicholas Morine
Edited by
Katie Wudel
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In a world filled with financial advice and myths, it’s important to distinguish between what’s helpful and what’s a hindrance to your financial health. George Kamel, one of the hosts on “The Dave Ramsey Show,” is on a mission to debunk some of the most common money myths that keep people broke.
Here’s a breakdown of the five myths he believes you should stop believing right away.
1. My Credit Score Is Everything
Many believe that a good credit score is the key to financial success. However, Kamel argues that a credit score is essentially an “I love debt” score. It’s based on your relationship with debt, not your wealth. He suggests that a better goal is to get out of debt and stay out, as debt-free people don’t need a credit score, according to him. Even for significant purchases like a house, there are alternatives like manual underwriting.
2. Old Cars Aren’t Safe
The common perception is that new cars are safer and more reliable than old ones. Kamel calls this “hogwash.” He points out that many used cars are just as safe and reliable as new ones but come at a much lower price. He advises buying a historically reliable make and model and always getting a pre-purchase inspection from a trusted mechanic.
3. I’m Too Old To Win With Money
Many feel they’ve missed the boat when it comes to saving for retirement, especially if they start later in life. Kamel says it’s never too late to start preparing for your future. He shares a scenario where even starting at 40 with nothing saved, you could still potentially crack the $1 million mark by 65 with consistent saving and investing.
4. I Can Always Save Later
This myth is particularly prevalent among the young who think retirement is a lifetime away. Kamel warns that postponing investing, even by a few years, could cost you hundreds of thousands of dollars due to the power of compound growth. The sooner you start, the less you’ll have to save in the long run.
5. I Will Always Be Broke
This is a mindset issue. Kamel stresses that if you believe you’ll always be broke, your actions will likely ensure that belief becomes a reality. He urges people to have a “never again” moment, where you decide to take control of your financial future and make the necessary changes to break free from the cycle of living paycheck to paycheck.
The Bottom Line
Kamel’s advice is clear and straightforward: Don’t let these myths dictate your financial life. By understanding the truth behind these misconceptions, you can start making real progress on your wealth-building journey. It’s about making informed decisions, changing your mindset, and taking action today for a better financial tomorrow.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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