Financial periodicals and magazines love to run articles that try to diagnose a family’s financial problems. They will start off by listing the assets and liabilities of the family, and then they turn to a certified financial planner (that sounds so official when you read it) to remedy the situation. The problem is that they never target the main problem which is that the family has $15,000 in credit debt and a $30,000 home equity loan. Their poor portfolio mix is always more important than the fact that they have $50,000 in consumer debt. This is absurd!
The only way to assure your financial well-being is by eliminating the risk in your life! Eliminating your debt will eliminate your risk! It is not a hard concept, yet so many financial gurus forget to factor in risk when it comes to counseling families about their finances.
Dave Ramsey is a leading pioneer in the notion that eliminating the debt in our lives will put us on track for winning our financial journey. YOU MUST THROW AWAY YOUR CREDIT CARDS AND KICK THE CREDITORS OUT THE DOOR! Destroy your debt. Don’t focus on your mortgage first. The mortgage can wait — the house isn’t going down in value. Your credit cards, car loans, and equity lines of credit are sucking away all of your disposable income.
I know, this is a weird concept. The world does not tell us that debt is bad. The world tells us that credit is a tool. NO, that is a lie. Banks have brainwashed us to think that we will always have debt. Banks want debt to be the annoying long lost cousin who shows up on your doorstep one day and never goes away. You probably think that I am crazy. I am crazy. I’m crazy about winning with my finances. Get rid of debt and change your spending habits. You will win.