I’m a big fan of Dave Ramsey, a radio talk-show host and bestselling author of numerous books.

Dave’s mantra is a common thread that is consistent throughout his books

“Consumers need a comprehensive plan to get out of debt and achieve financial fitness. One’s current financial position represents the sum total of the decisions we’ve made, and we must take personal responsibility for our financial problems. His seven-step plan includes paying off all debts except the home mortgage at an accelerated speed, creating a financial safety net that covers three to six months’ expenses, investing 15 percent of income in a retirement fund, and saving for children’s college expenses.”

Dave consistently preaches three simple steps to financial freedom:

• work hard
• pay what you owe
• stay out of debt.

His main commandment is to “pay cash.” He exhorts his readers to take “baby steps,” which are designed to build on each other:

• save $1,000 as an emergency fund
• pay off all debts from smallest to largest
• save a larger three-to-six-month emergency fund
• start to save for college and pay off your home mortgage.

To that I will add my own advice…

Guard against the “gotta have it”, can’t wait attitude. This financial mistake hits young people the hardest and is the cause of much unhappiness. Having been raised during the most prosperous of all generations, our children often want to start off at a level that it may have taken us twenty-five years to reach. The “great American dream,” as portrayed by movies, television, and magazines is often beyond the financial reach of most families and is never reached by overusing credit. What is needed is more of a “save now and buy later” approach. Preach it to your kids — but better yet, demonstrate a frugal attitude through your spending habits.

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