Dave Ramsey Analysis

Dave Ramsey is a prosperous businessman as well as a famous teacher about personal finances. Recently, I have been lucky enough to watch one of his video-based lessons regarding personal economy in order to be successful in controlling my money in my life. To be rich, Ramsey insisted that one must get rid of debt and save money for the future. Specifically, Dave Ramsey suggested that one should not save money for the future, not use a credit card, and not borrow loans so that one can effectively avoid debt or pay off existing debt. Firstly, to be rich, everyone should save money. Furthermore, according to Ramsey, additional, separated saving would be necessary if one wants to avoid debt in case of unanticipated emergencies. In this life, we cannot predict what will happen to us tomorrow. In case of some emergencies, the need of large amount of money is inevitable, for medical fees, repair fees, or other resolution methods, although charge high costs, require to be settled not by anyone but the victim of such emergencies. If any victim does not have enough money or not have any money at all, he or she is obliged to vast debts. If any victim does have savings, …show more content…
Although credit card brings forth many conveniences, it may yield risk if people are not circumspect in spending their money. As most people around the world usually imprudently let their spending exceed their incomes, they, most often, end up in vast debts. If one lumps into debt, one will consider saving money for richness to be almost impossible, for one will use most of, or almost all, his or her income to pay the debt. In case of debts not being paid at the right time, interest rate will increase, resulting in even greater debts. Hence, to lead most of one’s income into the saving account instead of the lender, one should control the spending behavior by choosing not to use credit