One money habit could be hurting your budget more than you think.
Transcript:
CONWAY GITTENS: What’s your most important advice for young people who are trying to get out of debt?
DAVE RAMSEY: Just cut everything the fat. The deeper you cut, the more your friends think you’re crazy because you’re doing nothing, the faster you get out. It’s math. And so deep, deep sacrifice increases the speed at which you get out of debt and the probability. And that deep sacrifice could include working three jobs. It could include, for a short period of time you just go bananas. But the typical family that we coach and on the Ramsey show or in our classes or those kinds of things, are able to clear off all of their personal debt in somewhere around 18 to 24 months. But that 18 to 24 months is hell. It’s awful. You just work all the time. You don’t see the inside of a restaurant unless you’re working there. You’re not going on vacation. People think you’re crazy. Your mother-in-law thinks you need counseling. I mean, you’re just going bananas for a short period of time here. But that two years is the catalyst that blows the lid off the math and allows you to build wealth the rest of your life.
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