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Kindle Notes & Highlights
by
Dave Ramsey
Read between
January 20 - February 2, 2018
Broke people in serious financial trouble borrowed money from greedy bankers at horrible terms and high interest rates to buy homes. The loans were not prime (good) loans, so they were accurately called SUBprime loans. That just means these mortgages were less than good.
A man with an experience is not at the mercy of a man with an opinion.” I went broke in my late twenties, and
When times are booming, you can do dumb things with money, get sloppy, and take huge risks without realizing it. I have heard it said this way: “Even a turkey can fly in a tornado.” People were running around buying things they couldn’t afford with money they didn’t have to impress people they didn’t even like, and they were doing it in record numbers. Worse, they seemed to get away with it!
Pride and arrogance, mixed with a false notion of invincibility, lead the mighty to take huge, ridiculous risks. In our case, that would be borrowing lots of money and not saving any because “my job is ‘stable.’ I can afford the ‘easy payments’ with my ‘job.’”
just because you see a turkey flying in a tornado doesn’t mean turkeys can fly. Just because some wild-eyed theory of investing, borrowing, and living without cash reserves works in good times doesn’t mean you can survive a storm.
Overspending that doesn’t feel like overspending because things are going well is still overspending.
“NEVER AGAIN
Winning at money is 80 percent behavior and 20 percent head knowledge.
Honestly assess your earning capacity and live below your means. Be in control of your own destiny and your own happiness!
Savings without a mission is garbage. Your money needs to work for you, not lie around you.
stop living beyond our means.
One of the four major factors that keep people from winning in money by getting a Total Money Makeover is not realizing they need one.
For your own good, for the good of your family and your future, grow a backbone. When something is wrong, stand up and say it is wrong, and don’t back down.
Frog Legs
The enemy of “the best” is not “the worst.” The enemy of “the best” is “just fine.”
Most people won’t change until the pain of where they are exceeds the pain of change. When it comes to money, we can be like
“Great spirits have often encountered violent opposition from weak minds.”
the language of denial.
Being willing to delay pleasure for a greater result is a sign of maturity.
Repetition, volume, and longevity will twist and turn a myth, or a lie, into a commonly accepted way of doing things.
When we participate in what the crowd identifies as normal, even if it is stupid, we gain acceptance into the club.
Debt adds considerable risk, most often doesn’t bring prosperity, and isn’t used by wealthy people nearly as much as we are led to believe.
The myth has been sold that we should use OPM, other people’s money, to prosper.
“The rich rule over the poor, and the borrower is slave to the lender” (
“There is no shortcut to anyplace worth going.
never loan friends money.
The lesson is that while it is fine to give money to friends in need if you have it, loaning them money will mess up relationships.
Don’t put that burden on any relationship you care about.
so unless you are looking for a broken heart and a broken wallet, do not do it.
When you think short term, you always set yourself up for being ripped off by a predatory lender.
If the Red-Faced Kid (“I want it, and I want it now!”) rules your life, you will stay broke!
Ninety days is not the same as cash.
we buy things we don’t need with money we don’t have in order to impress people we don’t like.
You have to reach the point that what people think is not your primary motivator.
Car fleecing
expensive. Once again, the Red-Faced Kid bought something he couldn’t afford using an unwise method and then attempted to justify his stupidity.
worry. Just know that, as a wise business owner, you don’t want to fleece a car.
The average millionaire drives a two-year-old car with no payments. He or she simply bought it. The average millionaire is unwilling to take the loss that a new car dishes out; that is how they became millionaires.
avoid the temptation of the 0 percent interest myth and get into quality used cars.
cash buys stuff better than debt.
conventional fifteen-year fixed-rate loan if:
be sure to run your card as a credit transaction—not using your PIN number.
A study of credit card use at McDonald’s found that people spent 47 percent more when using credit instead of cash. It
American Bankruptcy Institute study of bankruptcy filers reveals that 69 percent of filers say credit-card debt caused the bankruptcy. Broke people use credit cards; rich people don’t. I
(Consumer confidence is that thing economists use to measure how much you will overspend due to your being giddy about how great the economy is, never taking into consideration that you are going deeply into debt. If the consumer were out of debt and living within his means, the confidence he would have would be well-founded.)
Repetition, volume, and longevity
Your largest wealth-building asset is your income. When you tie up your income, you lose. When you invest your income, you become wealthy and can do anything you want.
First is risk denial, thinking total safety is possible and likely. Second is easy wealth, or looking for the magic key to open the treasure chest.
denial is a kind of laziness,
kind of surrender in which we settle for a bad solution because we are so beat down or beat up that we wave the white flag and do something stupid.
