Dave Ramsey has pretty great advice if you will listen. You know what to do with your money, but will you do it? I do not want to be broke in 2013…or any year after that. The advice he gives is not new. It is the same issues he has been preaching about for years. Some people listen, others don’t. Where will you be in 2013? Dave Ramsey has plenty to say if you will listen. My comments are below his advice in red.
9 Ways to Go Broke in 2013
Chances are pretty good that you’ve set some type of financial goal for 2013. And we want to help you get there—which involves knowing what not to do as much as knowing what to do.
So if you want to make it happen with your money in 2013, make sure you don’t do the following things—they’re sure to make you broke.
1. Just wing it.
This is the opposite of making a plan. If Dave Ramsey had an evil twin brother, “just wing it” might be his catch phrase. You can’t just wing it with your money. You have to make a plan—including a budget—that includes all your short-term and long-term financial goals. If you want to make a plan but you’re not sure where to start, download the all-new Dave Ramsey’s Guide to Budgeting for free now.
I am very bad about “winging” it. I mean BAD. Budgets are dumb and not needed. I could smack myself in the forehead. Budgets are vital to you and your family. Single? You need one too. Do you really want to marry someone and bring in debt? No. They will thank you later.
2. Wait until 2014.
If, while thinking about your goals for the year, you said something like, “This just isn’t a good year to try and get out of debt,” then you’ve already set yourself up for failure.Now is the time. This is the year. Unless you just enjoy stress and debt, no more procrastinating.
We have all said this before. I think I said it multiple times last year. That was a mistake. I have more nights of restless or no sleep because I have been stressed about the debt we have/had and how it will be paid off. When will it be paid off? Ever? Don’t do this to yourself. Life is short for all the nonsense.
3. Expect the government to help you.
If you’re waiting around on the folks in Washington, D.C., to change your life, then you had better settle in and get comfortable—it’s going to be a while. Remember, they just passed the decision to take more of your money! The better plan is to take charge of your own life. The bucks (pun intended) stop and start with you. You are in charge of you.
The government is not going to help you. AT ALL. Wake up and realize that entitlement programs such as Medicaid, Welfare, Social Security, etc will not always be there. Figure out a plan, budget your money, and move away from these programs as soon as you can. Find a Roth IRA for your retirement or a company 401K. And seriously, the faster you pay off your debt, the more money you will have.
4. Make excuses.
When we mess up with money, we sometimes tend to think we are the exception—that if people really understood our situation, they would know that a car lease or an adjustable rate mortgage or a pile of student loans is okay. Everyone goes through rough spots in life, but that’s no reason to let go of common sense and create more stress and heartache for yourself in the long run.
I make excuses 24/7. I don’t want to cook- let’s eat out. I don’t want to exercise in my neighborhood- let’s buy a gym membership. I don’t like anything used- get it new and sparkly. Is this you? It use to be me. It has been me my entire life. Not anymore. I’d rather have my money than waste it away on junk.
5. Use payment plans.
If you want to win with money, you need to take “payment plans” out of your vocabulary. Successful people don’t finance their couches. Or their dining room tables. Or even their cars. If you have to put it on a payment plan, you can’t afford it. As the old saying goes, “Broke people ask, ‘How much per month?’ and rich people ask, ‘How much?’”
The majority of the US uses a payment plan of some type. It is all we see. It is the way to buy goods and services. Not hardly. I can’t lie, I have car payments and a mortgage currently. However I want to sell my car, downsize to one (my husband’s) and then save up the cash to buy my next car out right. That’s the plan.
6. Buy every “updated” version of all the hot products.
At some point, we’ve decided that having a nice phone or a nice computer or a nice TV isn’t enough. We must have the newest, nicest version of everything. We’ve become entitled. That’s why some companies release a new product every single year. They know we’ll line up outside a store at midnight and wait in line for five hours to get a new phone that is 1/8 of an inch thinner than the one we already have. And the saddest part? How many of those people in line are dropping $500 on a phone when they don’t even have money saved for retirement or their kids’ college funds? Don’t get us wrong; new things are fun … as long as your priorities are in order.
Been there. Done that. New BlackBerry’s. New iPhones. Live and Learn. Then I found this awesome online yard sale page on FaceBook. You will never believe the stuff people are selling. Marty does need a new iPhone since his 4 was stolen in May. He has been using my old, broken, cracked, iPhone3G since then. It is about to bite the dust and I know where to go to get an “almost new” iPhone 4 for less than $200. Beats paying $500.
7. Listen to your broke friends (or family).
If you got through all the holiday family dinners unscathed by horrible financial advice, lucky you. One of the best ways to go broke is to take advice from broke people—like Uncle Earl and your old friend Pete. Listen to those guys and, before you know it, you’ll be invested in a pyramid scheme, leasing a BMW, and taking out a home equity loan to finance that Civil War figurine collection you just had to get.
It is hard not to listen to advice for your family or friends. But if they aren’t rich (no trust fund babies), then you should close your ears. You will be in worse shape if you do. Trust me, I know.
8. Live in the past.
January is an opportunity to forget about how you got into a bad financial situation and, instead, look forward to how you plan on getting out. You can beat yourself up all you want, but that will only make things worse. The fact that you’ve realized the problem—whether it’s credit cards, overspending, not saving enough, etc.—is a great indicator that you’re ready to change. Now go do it.
Stress is constantly hanging over me. Somedays I can’t function from the thought of past mistakes. Blah. Drop that like the nasty trash and move on. You know you messed up, so forgive yourself and get right.
9. Spend more time dreaming than working.
The opposite of living in the past is spending too much time dreaming about the future. That’s not a good option either. There’s nothing wrong with dreaming—that’s what hope is all about. But dreaming and working go hand in hand. You can’t let your dreams paralyze you and keep you from stepping out and getting things done. As we say around Dave’s office, “Goals are dreams with work boots on.”
Remember, winning with money is not just about doing the right things—it’s also about not doing the wrong things. If you can make it through 2013 without doing any of the above, then you are well on your way to having an awesome year.
Who doesn’t want to daydream all day about living in fancy houses with luxury cars? You can live like that (if you want to) and it isn’t hard to achieve. Those dreams can be goals as long as YOU work for it. Keyword YOU. No one else is going to pay your way. If you don’t want to do what is necessary to succeed, then maybe you should rethink your dreams!
What else do you vow not to do in 2013?
