Dave Ramsey says you can achieve success by learning from people who have already succeeded instead of listening to those without proven results.
Talking about his personal journey on “The Ramsey Show,” Ramsey said he started with nothing and became a millionaire by the age of 26. But he lost everything when the bank financing his real estate portfolio was sold, and the new management ended their relationship with him. Over the next couple of years, he gradually lost all his assets and eventually had to declare bankruptcy, Ramsey said. That experience pushed him to truly understand how money works.
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“We got the opportunity to start from zero again,” Ramsey said. “Only I had to figure out how money works, not what your broke brother-in-law’s opinion is, how money really works. So, as a Christian, I decided I would figure out what the Bible has to say about money, and I talked to old rich people. I didn’t want to talk to young rich people, I’ve been him. I didn’t want his opinion in business.”
‘They Know Something You Don’t’
Ramsey said he doesn’t “care” about the opinions of broke people because real success comes from following the “best practices” that are proven to produce results. He believes success comes from actually doing something, not from just having theories.
“That’s why you hire a personal trainer, they have abs and you have a keg,” Ramsey said. “They know something you don’t know, they do something you don’t do, and so we learn from someone that knows something we don’t know because they’ve actually done it, not have a theory about it.”
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‘Pretty Simple Stuff’
Ramsey said he discovered that managing money is simple in theory but extremely difficult in practice because it requires a complete lifestyle change. He said avoiding debt, living below your means, increasing your income and investing wisely are the keys to overcoming financial struggles and building lasting wealth.
“This is pretty simple stuff, guys,” Ramsey said. “It may be primitive, it may be easy to understand, but it is very hard to do because it has everything to do with you changing your heart and the way you function and the way you live your life.”
Ramsey said there is a strong link between generosity and financial success because having more money allows you to give to others, which makes you likable and creates opportunities.
“Generosity is a key element in people who end up winning with money,” he said. “It’s pretty simple, it’s because generous people are attractive, selfish people aren’t, they’re ugly. Attractive people seem to get more opportunities in life.”
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