This learning module is a “Battle Royale” between the Ramit Sethi perspective and the Dave Ramsey perspective.
As you know from last week, Ramit’s approach focus’s on defining “your rich life”. This means identifying and investing in the most important things for your happiness, then ruthlessly eliminating all the things you do not value.
Alternatively, Dave Ramsey preaches about the moral imperative to “hate your debt” and build a financially secure life with evangelical zeal.
Surprisingly, when one looks at their recommendations on the mechanics of building financial security, you will find they have a great deal in common.
READ – I Will Teach You To Be Rich – Ramit Sethi – Conscious Spending Plan: How to Budget by Looking Into the Future
You may or may not agree with everything Ramit says, however he gives you a lot of actionable ideas to consider. He is one of the few personal finance experts who recognize that we are not robots!!! People do not just do “what they should” because it is the rational thing to do. Ramit’s recommendations are practical for real human beings, because they recognize that people will only remain committed to a path that they feel passionate about.
KEY TAKEAWAYS (RAMIT SETHI):
- Identify what makes up “Your Rich Life”
- Spend lavishly on the building “Your Rich Life” while ruthlessly cutting all spending that doesn’t add real value to your life.
- “Set It and Forget It”, automate your savings and investments to occur every month without any effort from you
READ – Dave Ramsey – Gazelle Intensity: Do You Have It?
Dave Ramsey has been helping people get out of debt and build wealth for decades. You may find his recommendations or politics extreme; however 16 million people listen to his show each week. Everyone can be inspired by the Dave Ramsey’s Debt-Free Scream videos, which feature people from all walks of life overcoming tremendous obstacles to get out of debt by following Ramsey’s recommendations.
KEY TAKEAWAYS (DAVE RAMSEY):
Gazelle intensity is the term Dave Ramsey came up with to describe the speed and intensity you should have when paying off debt.
- Get on a budget.
- Cut up the credit cards.
- Do NOT take out more debt.
- Make extra cash.
- Close the accounts.
- Follow the 7 Baby Steps.
- Don’t follow the plan “ish.”
- Find accountability partners.
DISCUSSION QUESTIONS:
How do you compare Ramit’s recommendations to Ramsey’s recommendations? Which would work with your lifestyle? What ideas from both/either will you apply to your own life?
Could you follow Ramsey’s recommendations to manage your money without feeling deprived and giving up?
Could you follow Ramit’s recommendations to manage your money without feeling deprived and giving up?
What are the important aspects of your life that you are willing to spend lavishly on? What are the areas that you could eliminate and not miss at all?
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