I know…this is going to be very shocking – so prepare yourself. But today, I’m going to share a secret and hopefully change a few minds about achieving financial success. Are you ready? Ok, here it is…
Winning at money is 80% behavior and 20% head knowledge.” -Dave Ramsey
Yep, that’s right. Knowing what to do is one thing (head knowledge), but actually doing it is another (behavior). I think we all have a common sense knowledge of what we need to do. Stop spending so much. Downsize. Get rid of some things. Save.
It’s the behavior that gets us in trouble. We are either stuck in non-action OR procrastination. Neither of which involves movement. We must take the time to do the right things.
No, you don’t have to know how inflation is measured, how to track the gross domestic product or how to trade the stock market. All of that stuff is irrelevant. Achieving financial success is your personal journey involving your income, your expenses and your plan.
Failing to plan is planning to fail. -Alan Lakein
Achieving financial success boils down to just a few key concepts.
- Creating goals and plans. Have you ever noticed that when you get in your car to drive that you always arrive at your appointed destination? The reason is that you know exactly where you are going. Even if you are venturing into unknown territory, you can find a map to help you arrive to your destination safely. This same concept applies to your finances.
- Eliminating Excuses. The excuses can include but are not limited to procrastination and a lack of discipline. So much time is lost waiting for that perfect moment to ________. Only to realize that there is no perfect time. Just start. Somewhere. Create the fire of desire within yourself.
- Minimize or Avoid Borrowing Money. If you’ve made a decision to get control of your finances, continually borrowing money will keep you in the cycle of always owing “someone”. Exercise a temperament of patience. For smaller purchases, consider saving the cash to purchase products instead of using credit.
- Eliminate Debt As Quickly As Possible. Have you ever considered how much money is paid in interest each month to creditors? A LOT! These creditors are making a killing on the back of your hard earned money. Like, it took you 40+ hours last week to earn this money.
- Be Willing to Save More than You Spend. I know this sounds fairly easy, but millions of people spend more than they make monthly. I think it comes from a false security that every two weeks a paycheck is going to be received. But, what if?
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These concepts seems so simple, but still many of us battle with our finances. The thought is that more money will be made later to cover any current financial mishaps. What normally happens is that “later” never comes and the struggle is a constant and ongoing practice. Until we take full responsibility for our financial situation as it is…now. But that takes a change of behavior. Which is the hard part.
To Your Success,
Patrenia
Now Over To You. What do you want to scale up in your financial future? What are some changes you can make or have made?
Feel free to share your thoughts in the comments. I can’t wait to hear them. If you’re reading this article by Email or RSS, click here to come on over and join the conversation.
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{ 8 comments… read them below or add one }
I recently started listening and watching Dave Ramsey’s courses (thanks to my sister, they are giving a class at her church) and I have learned a lot of valuable tips.
I actually enjoy saving now and hate spending definitely a new trend I hope I can manage to hang onto.
Yes, he helped to change my whole thought process about money, too. He presents the information in a practical and makes it so user friendly. Once the changes becomes a habit to you, it shouldn’t be a problem for you to maintain. Congrats!
The two concepts you mentioned, mindset and planning, have such power over so many aspects of our lives. As you so aptly stated, it’s up to us to control it!
Yes, I had the mindset and planning talk with my brother last night about a different issue he was dealing with. This process can be applied to any area of life. We definitely have the power, we just don’t realize it sometimes. Thanks Lisa!
Oh, goodness! I just started reading you recently and my husband and I are trying very hard to get out of debt right now. It’s going to be a long haul, but I am hopeful we can do it!
That is awesome! You guys can definitely do it. Keep your plan and stay focused.
I lead a course created by Dave Ramsey….it’s Financial Peace University. It is powerful and can help you make changes in how you handle money. It is about behavior. Talk is cheap….it’s your actions that can make you wealthy or broke like most of America.
Yes, FPU is a wonderful course taught by Dave Ramsey. He has his way of “whipping” you lovingly into shape.
He has become one of America’s most loved financial experts and I know it was an honor for you to lead the course. And you are right, we have a choice…we can live wealthy or broke. Thanks for coming by!