Digital News Report – While Americans are suffering from the sagging economy, self-help guru Dave Ramsey explains a sure-fire way to get out of debt and become wealthy.
The 49-year old Ramsey syndicates his own financial advice radio show to 450 radio stations and has written numerous books on the subject of debt. While his broadcasts hint at a Christian perspective, it can help anyone in financial trouble.
Ramsey should know how to get out of debt. He built a real-estate empire flipping homes and also renting them out. At one point he was worth $4 million. But it all came crashing down in 1986 and he lost everything. He had no choice but to file for bankruptcy and start over.
While starting over he became convinced that the fruit of his demise was his dependence on debt. Nearly all Americans are finding themselves in debt these days.
So what is his relatively newfound secret? He told ABC News Nightline that you need to change the way you live. “If you will live on less than you make,” Ramsey said. “If you will live on a plan. If you will stay out of debt. If you will save for emergency purchases and retirement. If you will give. If you can those five things, anyone give a little bit of time can win with money.” Below are the steps and rules spelled out.
Here are the RULES:
1) Live on less than you make
2) Make a plan
3) Stay out of debt
4) Save for emergency purchases and retirement
5) Give back
Besides the rules you need some steps to get wealthy.
Here are the STEPS:
1) Get a $1,000 in the bank
2) Pay off your debts from smallest to largest
3) Get a 3 to 6 month emergency fund for emergencies
4) Start saving 15 percent of your income for retirement
5) Start a kids college fund
6) Pay off the house early
7) Get wealthy
By: Tina Brown