Dave Ramsey believes that having more money and comfort has made many Americans lazy and undisciplined in handling their finances and dealing with their problems.
Discussing the power of choice and taking initiative to change old habits and mental patterns in "The Ramsey Show," he said that even an average income in America is well-off compared to other countries. Ramsey believes that even people who aren't good with money can still become prosperous in the U.S.
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"The problem is, we’ve gotten so prosperous in America that even stupid people are prosperous," Ramsey said. "We’re so prosperous that even undisciplined dolts are prosperous. We’re so prosperous that poor people are prosperous compared to other countries and other civilizations. If you make $34,000, you’re in the top 1% of income earners in the world. Because of that, we’ve just gotten lazy."
‘We Know What To Do'
Ramsey talked about the importance of self-control and discipline and said 80% of personal finance comes down to managing your habits and behavior. He believes most people already know what they need to do to fix their money problems, but simply don't take action.
"The problem with my money is the guy I shave with," Ramsey said. "If I can get that guy to behave, he can be skinny and rich. We know what to do, we just don’t do it."
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‘Don't Spend More Than You Have'
Ramsey said that people trap themselves in fixed stories about who they are and refuse to change their habits. He thinks building wealth does not require complex formulas and rejected the notion that people struggle to escape debt and poverty because they don't understand the "math."
"We’re not dealing with, you know, some graduate-level calculus formula here, people," Ramsey said. "This is the second grade we’re dealing with here. You learned addition and subtraction in the second freaking grade. It’s not a chemistry formula here, it’s the second grade, don’t spend more than you have."
Ramsey said people can build wealth by learning to say no to temporary temptations and things they can't afford.
"No will change your life but it’s abrasive and conflict-based and visceral and it’ll freak your life out and people will get mad at you," he said. "No, it’s a wonderful word. We need to reinstate it in America."
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