Don’t Fall for it – Avoiding 3 Pitfalls

Tammi and I have been avid fans of Dave Ramsey and Ramsey Solutions for more than 30 years. We were married at age 20 and found ourselves in a challenging financial situation. Fortunately, we discovered Dave Ramsey, in fact, on a clearance rack cassette tape in an Indianapolis bookstore. We listened to his advice and were captivated; it changed our lives forever. This journey transformed our finances, our marriage, and redirected my professional career.

Today, I work as a Financial Advisor at Whitaker-Myers Wealth Managers and hold the additional designation of Certified Ramsey Solutions Master Financial Coach. Over the past 15+ years, I have had the privilege of helping many hundreds of clients with their money management and financial planning.

Many earn good incomes, yet we struggle to manage our God-given resources effectively. Who needs solid money management skills? We all do. Here are some more lessons learned regarding our money management.  Don’t fall for these pitfalls.

Money Management Pitfalls

# 1 – Avoid Debt Financing

Proverbs 22:7 states that “the borrower is slave to the lender.”  When we owe a debt, we are not actually in control of our finances or our labor.  My wife and I lived this way for years before waking up and changing our lives forever.  We lived on deferred interest financing, such as 12-month “same as cash.”  We also had a USAA Credit Card with 0% interest for 12 months.  We purchased a lawn mower, an exercise bike, and consolidated our debt on this credit card.  We did not pay the full balance on the card within the 12 months and suffered the consequences.  The high retroactive interest charge at the end of the promotional period was brutal.  Please do not fall for it like we did.  Learn from our mistakes.  It is not worth it. My wife and I have learned to be patient, save money, and then carefully proceed with the purchase if it is still important. 

# 2 – A Strong Marital Bond

Ecclesiastes 4: 9-11 states, “Two are better than one….”  Tammi and I eventually learned the importance of a strong marital bond and focused on working together.  We struggled with this early in our marriage.  We later heard Dave Ramsey use the metaphor that two oxen yoked together can produce exponentially greater power than they could individually.  We learned to work together not only on our finances but also while raising our children and caring for each other. Avoid the pitfall of trying to do it alone. You are both in charge of your destiny.  Work together with love and respect.

# 3 – Start Investing ASAP

2 Corinthians 9:6 states, “whoever sows sparingly will also reap sparingly.”  We learned that it is important to begin our investment journey as early as possible.  The “Rule of 72” helps us to calculate the number of years needed to double our retirement portfolio.  At an average annual market rate of return of 10%, it will take 7.2 years for our investment to double.  So, Tammi and I realized that the sooner we began, the more 7.2-year increments we have before needing the funds.  This knowledge helped us to become laser-focused and gazelle-intense about making it to baby step # 4 (15% into retirement).  Avoid the pitfall of delaying your investment journey.   Focus, work together, and start.

Would You Like to Learn More Effective Money Management Ideas?

As I mentioned earlier, one of my primary goals as a Financial Advisor is to help clients manage their finances more effectively. If you’d like to explore more, please use my calendar link to schedule an introductory session.