do you know how to get to the level of making $20,000 a month I'm sure most of you have no idea how to do it however Dave Ramsey a man who was millions of dollars in debt literally lost everything even the furniture in his apartment had to be seized by the police knows what you need to do to achieve phenomenal Financial results his fortune now totals $280 million you're about to hear 11 top tips from The Men Who has been helping millions of people around the world get rich for decades get out of debt before
you invest in Dave Ramsey's investment philosophy the number one rule is not to invest the sin until all toxic debt is paid off by that ramsy means virtually all debt except Mortgage Debt the financial Guru believes that a person cannot create wealth if his primary tool income is tied up in monthly Financial expenses once you have dealt with debt remember that going back to credit cards is a very bad idea remember the simple truth no one has gotten Rich by paying off credit cards use the power of the Snowball Effect getting out of debt is
easy to talk about but hard to do so Ramsey has practical advice on how to tackle this difficult task Dave recommends using the snowball method which essentially involves paying off debts from small to large this will give you confidence and allow you to record at quick wins on certain debts and then when it comes time to deal with the really serious deaths you will have the motivation the drive and the example of having dealt with past debts on your side so you will be able to overcome that hurdle as well plus trivially you'll only be
able to focus on the bigger debts and the smaller ones won't get in your way before you get rich build an emergency fund once you've taken care of your debt you can move on to the second important part of Financial Freedom securing your future getting out of debt creates a stable foundation for reaching new heights but don't forget that you now need to have enough money in your account to cover 3 to 6 months of expenses to build an emergency fund safely follow a few practical tips first determine the specific size of the reserve fund
and then set the number of monthly deductions it is usually 10% of your income but can be as high as 15 to 20% now choose a way to set aside money specifically a bank account a deposit or just a place in the closet combined with an emergency fund you'll have even more solid ground under your feet if your refrigerator TV or car breaks down your emergency fund will come to the rescue lose your job you'll have the means to live until you find a new place to live create a zerobase budget every road to wealth
must have a plan one of its elements and perhaps the most basic is a budget it will show you what you cannot afford and tell you how and where to spend your money an equally important part is creating a zerob based budget keeping a zerob based budget is a little different from tracking your income and expenses zerob based budgeting is a method of budgeting in which every dollar of your income is earmarked for a specific purpose ensuring that your expenses equal your income down to zero unlike traditional budgeting methods that allow you to carry over
unused funds from month to month zerob based budgeting requires you to fully allocate your income ensuring a fresh start each budgeting Period start using cash envelopes studies show that people use cash a little differently than they use cards essentially we value a purchase differently and end up spending less when we use cash that's why Ramsey recommends systematizing cash for each category of spending by sticking to a specific budget using cash will help you stop overspending you don't have to create similar envelopes for every area of your life start where you tend to spend the most
for example a simple trip to the store calculate your budget for the day week or month and set aside the amount of money you need if you run out of money in that category you will not be able to spend it the important thing now is not to think about reaching for a credit card use technology to save money we have access to incredible gadgets and apps that were unimaginable a generation ago many of them can be great money Savers Ramsey recommends taking advantage of every app Gadget or system whether it's smart meters that lower
utility bills banking apps that allow you to automate savings budgeting programs coupons and discounts from supermarkets on your phone and so on all of these should be taken advantage of if you decide to to seek enrichment for example I constantly use applications to track my income and expenses and I do not refuse to install programs from the supermarkets I visit most often because there are always nice bonuses offers and discounts and more Bale paying utility bills on time I get incentives in the form of small but discounts on subsequent payments never walk into a store
without a plan on his blog Ramsey discusses a US Department of Agriculture study that shows that that even The Frugal average family of four spends nearly $1,000 a month on groceries but that spending can be reduced Dave says by eliminating so-called budget Breakers small unplanned impulse purchases that result in wasted money the solution is to buy only those foods that are part of a predetermined meal plan and never deviate from it no matter what if possible the financial expert recommends using online ordering services to avoid Temptations while walking around the store the main thing is
not to lose your head when shopping online this tip perfectly complement the previous one about money envelopes stop comparing yourself to others if you start playing that kind of game you're bound to lose Ramsey says sometimes the most important thing is not what you do with your money but what you don't do in his book The Total Money Makeover Dave wrote we buy things we don't need with money we don't have to impress people we don't like the modern world social media and influencers are counting on your willingness to part with your money just to
show off in front of other people frivolous spending is a curse when it comes to Building Wealth remember every dollar you have in your pocket is a dollar you're not saving put your knowledge to work acquiring knowledge is always a noble Endeavor as long as it doesn't lead to paralysis remember that every hour you spend learning new ways to manage and grow your money is an hour not spent budgeting planning and investing in your future in The Total Money Makeover Ram writes making money depends 80% on action and 20% on the knowledge in your head
the problem is not what to do but how to do it most of us know what to do but we just don't do it learn something new put it into practice as soon as possible sometimes I like to put off applying some of the tips for tomorrow but in the end that Tomorrow Never Comes you've learned something start putting it into practice now learn today get rich tomorrow the world is going crazy says says Ramsey we're being sold something at every turn sold and sold again as a result people often spend money on things they
can't afford resist the urge to spend by choosing to be more economical you can create real wealth that will stay with you for a long time finally I've got something special for you a famous golden tip that many Financial experts give is one that Dave Ramsey believes is fundamentally wrong that advice is to make money you have to spend it Ramsey says that this thesis is not so simple of course money brings more money but only to those who manage it properly most people after receiving large sums of money begin to desperately search for ways
to earn and often such people lose all the accumulated funds we simply get the keys to the car and immediately step on the gas without understanding the controls brakes and gears we rush forward thinking we can handle the ride in fact we just make the car break down the same is true with finances don't rush into the first Venture that comes along don't invest in something you don't understand like the video to support my efforts I make videos for you and I want your financial success to come to you as soon as [Music] possible
