Want Big Results? Embrace Big Changes

Dear Dave,Your plan has really changed our financial lives, and our relationship, for the better over the last three or four years. My wife and I went from living paycheck-to-paycheck, and having a mountain of debt, to being debt-free except for our home and getting a great start on saving for retirement. It wasn’t always easy, but we made it happen by working together and sticking to your plan. At this point, my wife and I often wonder why so many people are willing to live like we used to? We can’t imagine going back to that now.Marshall

Dear Marshall,Wow, thank you so much for all the kind words. I’m really proud of you two. Just remember one thing: I may have shown you a path and given you some encouragement, but you two put in all the hard work and made the many sacrifices that got you where you are now. Congratulations!

To answer your question, there are lots of reasons some folks resist making changes in their lives. Often, one of those things is denial. Ninety percent of solving a problem is realizing, and admitting, a problem exists. I’m convinced one of the major factors keeping people from winning with money is they don’t realize they even have a problem—or won’t admit it.

If you’re apathetic because you think things like debt and living paycheck-to-paycheck are just normal parts of life, you’ll be unwilling, or sometimes afraid, to make the big changes necessary to achieve big results. Debt is so ingrained into our culture that most Americans can’t envision college without student loans, or a car without huge payments for five or six years. We’ve been sold on the idea of debt so aggressively that most folks don’t believe a decent life is even possible, unless hundreds or thousands of dollars in payments are attached.

Another thing is that change is painful. Most people won’t change what they’re doing or how they’re living, until the pain of where they are is greater than the pain of change. No matter who you are, where you are financially right now is largely a sum total of the life decisions you’ve made up to this point. There are some folks who experience unfortunate, life-altering things, but in most cases, if you don’t like where you are, you have to acknowledge the fact that things need to change. You have to acknowledge the fact that you need to change.

And finally, there’s usually an element of ignorance involved. Don’t get me wrong. I’m not calling anyone stupid. I’m talking about a lack of good information. The good news is learning new things isn’t that hard. You just have to admit you don’t have all the answers, and set your mind to studying and educating yourself on the topic at hand. Because if you’re not careful, what you don’t know about money will make you broke and keep you broke.

Just my thoughts. I hope it helps!

— Dave

Dave Ramsey is an eight-time national bestselling author, personal finance expert, and host of “The Ramsey Show.” He has appeared on “Good Morning America,” “CBS This Morning,” “Today,” Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions and is the author of numerous books including Baby Steps Millionaires: How Ordinary People Built Extraordinary Wealth–and How You Can Too.