September 5th, 2023 7:00am PDT
(PenniesToSave.com) – According to renowned personal finance expert Dave Ramsey, achieving financial success is within reach for everyone. However, it requires a dedicated and personalized commitment to improving your money management skills.
“In my younger years, I experienced a loss of all my possessions,” Ramsey shared during his Labor Day broadcast. “Fortunately, this difficult experience ended up transforming my life completely.”
At the young age of 28, the year Ramsey filed for bankruptcy coincided with the birth of his daughter. Despite earning approximately $1 million in income, he faced financial hardship when banks demanded repayment of his loans.
This turned out to be a significant turning point in his financial situation and had a considerable impact on his household finances.
“After that experience, I made a personal commitment to never borrow money again,” he reflected. “I started giving 10% of my income as a tithe to my church and became diligent about budgeting. Since then, I’ve adopted a cash-only approach when making purchases.”
Ramsey emphasized that the key to improving one’s financial situation lies in making a firm commitment to never accumulating debt again.
Filing for bankruptcy is a rare outcome for most individuals. In 2022, only around 376,000 Americans sought bankruptcy protection, as reported by Debt.org. Medical bills were a leading cause of bankruptcies in the United States last year, with approximately 24% of people burdened by medical debt considering this drastic financial step.
Ramsey suggests that failure is a common experience for successful individuals. However, instead of allowing failure to define them, they use it as an opportunity to learn and grow.
Interested in getting out of debt? Here is a guide 😉 – The importance of paying off debt and how best to do it