Dave Ramsey Chapter 4 Sect 1

Summary

El guion del video aborda la crítica a la cultura del endeudamiento, argumentando que la deuda es una elección y no una necesidad. El orador desafía las nociones convencionales de que el crédito y el consumo son inteligentes, y en su lugar, promueve la prudencia financiera y el ahorro. Destaca la importancia de la autodisciplina y la planificación financiera para evitar la esclavitud a los prestamistas, y desmitifica la idea de que el endeudamiento es esencial para la educación, la vivienda o el estilo de vida. Al final, alienta a los jóvenes a desafiar los mitos financieros y a tomar decisiones sabias para asegurar su futuro económico.

Takeaways

• 💳 La persona entrevistada tiene múltiples tarjetas de crédito y utilizalas extensamente, incluyendo para viajes y reservas de hoteles.
• 💰 Se menciona que los puntos de recompensa de las tarjetas de crédito pueden ser muy atractivos, llegando a pagar boletos de avión con puntos acumulados.
• 🏦 Se destaca la facilidad con la que se pueden adquirir productos y servicios mediante tarjetas de crédito, y cómo esto puede llevar al endeudamiento.
• 📈 Se critica la cultura del endeudamiento y se argumenta que la deuda es perjudicial, contraria a la mayoría de los mensajes culturales actuales.
• 📚 Se enfatiza la importancia de cambiar la perspectiva cultural sobre la deuda y se sugiere que vivir sin ella requiere un cambio de paradigma.
• 🏘️ Se menciona la historia de la tarjeta de crédito, desde su creación en 1950 hasta el surgimiento de las principales marcas como Visa y Mastercard.
• 📊 Se comparte estadísticas sobre la cantidad de ofertas de tarjetas de crédito y la aceptación de estas por parte de los consumidores.
• 📉 Se critica la comercialización de las tarjetas de crédito y cómo se presentan a los consumidores, comparándolas con productos que se deben desear y obtener.
• 💬 Se discute la idea de que la deuda se ha convertido en un producto vendido efectivamente, y cómo esto ha llevado a una mayor aceptación y dependencia de la deuda en la sociedad.
• 💼 Se relata la experiencia personal del narrador con la deuda, desde su inicio en la vida adulta hasta su decisión consciente de pagar todas sus deudas y vivir sin ellas.

Q & A

¿Cuántas tarjetas de crédito suele tener la persona que habla en el guion?

La persona menciona tener una gran cantidad de tarjetas de crédito, incluyendo Visa, American Express, Discover y otras tarjetas de tiendas específicas.

¿Por qué cree la persona que utiliza tarjetas de crédito es tan tentador?

Dice que los lugares donde va hacen que sea muy fácil y tentador usar todas las tarjetas de crédito que posee, ya que se utilizan para todo, desde compras hasta reservas de hoteles.

¿Qué tipo de recompensas ha obtenido la persona por usar sus tarjetas de crédito?

Ha obtenido recompensas en efectivo, lo cual considera una gran oferta, y menciona que sin ellas no habría podido tomar un viaje a París.

¿Cuánto dinero tuvo que gastar para obtener 275 dólares en recompensas según el guion?

Tuvo que gastar 30,000 dólares para obtener 275 dólares en recompensas.

¿Qué lección particularmente difícil se menciona que tiene el orador que está dando la charla?

La lección difícil es convencer a la audiencia de que la deuda es una mala idea, lo que va en contra de la cultura actual que promueve la deuda como una forma inteligente de manejar el dinero.

¿Qué ejemplos históricos se mencionan en el guion sobre la actitud hacia la deuda en el pasado?

Se mencionan ejemplos como la visión de la deuda como una locura en el catálogo de Sears de 1910, J.C. Penny y Henry Ford que no ofrecían crédito en sus tiendas o autos respectivamente debido a su desagrado por la deuda.

¿Cuál fue el primer tarjeta de crédito mencionado en el guion y quién lo creó?

El primer tarjeta de crédito mencionado es Diners Club, creado por Frank McNamara en la ciudad de Nueva York.

¿Cómo se describe el enfoque de las tarjetas de crédito en los comerciales según el guion?

Se describe que los comerciales de tarjetas de crédito son brillantes y esperanzadores, pero su objetivo es distraer a los consumidores de las condiciones legales y detalles de la deuda que se encuentran en los avisos legales.

¿Qué consejo se da a los jóvenes en el guion sobre la deuda y la compra de vehículos?

Se aconseja a los jóvenes no caer en la creencia de que necesitan una nueva carro para lucir bien, y en su lugar, ahorrar y comprar un vehículo usado en efectivo para evitar la deuda.

¿Qué es una de las mentiras específicas que la gente cree sobre la deuda que se menciona en el guion?

Una de las mentiras específicas es que necesitan construir crédito, lo cual el orador desmiente argumentando que no hay razón para endeudarse y que el objetivo debe ser evitar la deuda.

Outlines

00:00

💳 La cultura de las tarjetas de crédito

El primer párrafo aborda la tendencia cultural de acumular tarjetas de crédito y cómo se ha vuelto una práctica común en la sociedad. La persona entrevistada menciona tener múltiples tarjetas, incluyendo Visa, American Express y Discover, y utiliza todas ellas para compras y reservas de hoteles, enfatizando en los beneficios que recibe en términos de recompensas. Además, se discute la facilidad con la que se pueden adquirir productos y servicios a crédito y cómo esto puede llevar a la acumulación de deudas. El locutor del vídeo desafía esta cultura pro-deuda, argumentando que la deuda es una elección estúpida y contraria a la sabiduría financiera tradicional.

05:02

📚 Historia y cambio de paradigma sobre la deuda

Este párrafo explora la historia de la creación de tarjetas de crédito y cómo la percepción de la deuda ha cambiado a lo largo del tiempo. Se mencionan figuras históricas como J.C. Penny y Henry Ford, quienes eran escépticos de la deuda. Se destaca la introducción de la tarjeta de crédito Diners Club en 1950 y la evolución de Visa y Mastercard. El locutor enfatiza la importancia de desafiar la narrativa cultural dominante que promueve la deuda y abogar por un cambio de paradigma hacia una vida sin deudas.

10:03

🎯 El enfoque distorsionado de la publicidad de tarjetas de crédito

El tercer párrafo critica la publicidad engañosa de las tarjetas de crédito, que promueve un estilo de vida de deuda presentándolo como algo deseable y emocionante. El locutor sugiere que los comerciales están diseñados para distraer a los consumidores de las verdaderas implicaciones de la deuda, comparándolos con los gatos que se distraen con luces brillantes. Aboga por una mayor conciencia y crítica hacia los mensajes de la publicidad y la toma de decisiones financieras más informadas.

15:08

🏡 La trampa de la deuda y la compra de bienes raíces

Este párrafo narra la experiencia personal del locutor y su esposa al comenzar su vida matrimonial con deudas y la presión social de adquirir bienes raíces sin fondos iniciales. Describe cómo la 'financiación creativa' y la falta de ahorros los llevaron a adquirir una casa sin dinero de emergencia, lo que a menudo conduce a problemas financieros mayores. El locutor subraya la importancia de la libertad financiera y cómo la deuda limita las opciones y la estabilidad en la vida.

20:09

💸 Debunking los mitos financieros comunes

El último párrafo aborda varios mitos financieros que afectan a los jóvenes adultos, como la creencia de que es necesario acumular crédito o que se puede adquirir deudas en la universidad para pagarlas más tarde. El locutor argumenta que estos mitos son engañosos y promueven una cultura de deudas. Aboga por la autodisciplina financiera, la evitación de la deuda y la importancia de ahorrar y pagar en efectivo para tener opciones y libertad en el futuro.

Keywords

💡Deuda

La deuda se refiere a la cantidad de dinero que una persona o entidad debe a otra. En el guion, se discute cómo la deuda es percibida como algo negativo y cómo la cultura actual la promueve como algo inteligente y sabio, lo cual va en contra de las enseñanzas de las generaciones pasadas. El orador argumenta que la deuda limita las opciones de vida y es una forma de esclavitud financiera.

💡Tarjetas de crédito

Las tarjetas de crédito son un tipo de deuda que permite a los usuarios comprar bienes o servicios y pagar más tarde. En el guion, se menciona que son fáciles de obtener y a menudo se promueven con ofertas atractivas, lo que puede llevar a un uso excesivo y a la acumulación de deuda. El orador critica este modelo y sugiere que las tarjetas de crédito son una forma de enganar a los consumidores para que contraigan deudas.

💡Premios y recompensas

Los premios y recompensas son incentivos ofrecidos por las tarjetas de crédito para promover el gasto, como el reembolso de dinero o viajes. En el guion, se menciona que estos premios pueden ser tentadores, pero también pueden ser una trampa para que las personas gasten más de lo que pueden pagar y terminen en deudas.

💡Cultura del endeudamiento

La cultura del endeudamiento es la norma social que promueve la idea de que el endeudamiento es una forma aceptable y necesaria de vivir. El guion critica esta cultura y sugiere que la sociedad ha internalizado la idea de que el endeudamiento es una parte inevitable de la vida moderna, lo que lleva a la aceptación de productos financieros que generan deudas.

💡Autonomía financiera

La autonomía financiera es el estado de ser completamente libre de deudas y tener el control total sobre sus finanzas. En el guion, se presenta como un objetivo a lograr, ya que permite a las personas tomar decisiones basadas en sus propios intereses y no en las obligaciones de deuda.

💡Ahorro

El ahorro es el acto de reservar dinero para el futuro o para comprar algo específico. El guion subraya la importancia del ahorro como una forma de evitar la deuda y de adquirir bienes o servicios de manera sostenible y sin endeudarse.

💡Compromiso

El compromiso se refiere a la dedicación y el esfuerzo continuo para lograr un objetivo. En el contexto del guion, se menciona que el compromiso es necesario para pagar las deudas y alcanzar la autonomía financiera, lo que a menudo requiere sacrificios y cambios en el estilo de vida.

💡Economía de gasto

La economía de gasto es la práctica de gastar dinero de manera consciente y racional para evitar el endeudamiento y el desperdicio. El guion sugiere que la economía de gasto es esencial para mantener el control sobre las finanzas personales y para evitar caer en la trampa de la deuda.

💡Mitos financieros

Los mitos financieros son creencias erróneas o malentendidos sobre el manejo del dinero. En el guion, se mencionan varios mitos, como la necesidad de construir crédito o la idea de que los estudiantes deben tomar prestado dinero para pagar sus estudios, que se refutan con argumentos basados en la prudencia financiera.

💡Autocontrol

El autocontrol es la capacidad de resistirse a impulsos o deseos inmediatos por el bien de los resultados a largo plazo. El guion enfatiza la importancia del autocontrol para evitar el endeudamiento y para tomar decisiones financieras sabias que beneficien al individuo en el futuro.

Highlights

Individual carries multiple credit cards, including store cards, Visa, American Express, and Discover.

Ease of using credit cards in various places inclines people to use them for all purchases.

Rewards from credit cards, such as cash back, influence spending behavior.

The speaker challenges the cultural acceptance of debt, advocating for a debt-free lifestyle.

Debt is positioned as a cultural paradigm that needs to be shifted for financial health.

Historical perspective on credit cards and the evolution of consumer debt.

The speaker humorously compares the marketing of credit cards to a cultural lie that became accepted as truth.

Credit card commercials are criticized for their misleading promises and shiny distractions.

The concept of 'negative sale' in credit card marketing, where consumers beg for debt.

Statistics on the credit card industry's revenue and its impact on consumer behavior.

Personal anecdotes from the speaker about the struggles with debt early in life.

The importance of being debt-free for financial freedom and the ability to pursue life goals.

Myth-busting segment where the speaker addresses common financial fallacies about debt.

Advice for young adults to avoid common debt traps and the importance of saving and cash purchases.

The speaker emphasizes the psychological impact of debt on relationships and the stress it causes.

Final thoughts on the liberating effect of being free from debt and the joy it brings to life.

Transcripts

[Music]

[Applause]

[Music]

[Applause]

[Music]

so

[Music]

tell me uh how many credit cards you

currently have i carry one card

two like 10 probably like all the store

ones with everything

ham like a visa couple american express

one here comes another one another

discover and wow

when you go in places they make it so

easy for you

that you are inclined to use them all my

shopping hotel reservations

absolutely everything everything

everything

all sorts all sorts of things i use it

just about for everything that i

do all my purchases right now because of

the rewards that i get from the car

now what kind of rewards have you been

able to get cash back

it's a good deal oh it's a fantastic

deal we wouldn't have taken the trip

unless we had done that

wow unless you went into credit card

debt you would have never been able to

take that paris trip i guess so yeah

so 120 000 gets you a couple of

round-trip tickets exactly

now how much did you have to spend to

get that 275. 30 000

is that kind of good math to spend 30

000 to get 275 back

you show me something better and i'll

sign up for that one

[Music]

tonight's lesson is particularly hard

for a speaker a teacher like me

because see my job is to bring you ideas

that you accept as your own that's

called learning

if you accept them as your own it's

going to cause you to go

do things differently than you used to

do things

the problem i've got this evening is

i've got an uphill battle

because this lesson goes directly

perpendicular against

everything in our culture just about

every message out there

talks about how smart and wise you are

to go into debt and i am going to make

the rarefied and crazy statement

that i think debt is dumb i think it's

stupid

oh a few of you are kind of getting the

idea that maybe that'll work you know

but if can you imagine if i go into a

public setting and i'm speaking

you know in a motivational seminar with

a big lineup a big name seminar guys and

that kind of thing and i get up there

and i'm the guy

saying in this culture car payments are

stupid credit cards are dumb and a home

equity loan is crazy

i mean can you imagine that i'm the guy

that says you can be a student without a

student loan

i mean that is exactly against

everything you hear out there

and so what i've got to do is more than

just merely

tickle your brain a little bit to get

you to look at things differently i've

got to completely

crush a cultural paradigm

to even be heard on this subject i'm

going to attempt to do that in our time

together with some of you it will work

and some of you are going to go

he's just crazy the boys just lost it

and that's fine i'm cool with that

because well you know we've already

figured out normal is broke

and i don't want to be normal my goal is

total weirdness

you know the wall street journal says 70

of americans are living paycheck to

paycheck i don't want to be normal

figure out what most people are doing

out there don't do it you're in pretty

good shape

that's an idea but when it comes to this

debt subject

you know if you tell a lie you spread a

myth loud enough long enough and often

enough

eventually it becomes accepted as the

truth

you know if i get my compass out i could

establish really quickly that

right through there is north according

to a compass

now there's always some that will

argue with that isn't there

but that's the truth but if i spent 482

million dollars a year per year for a

decade or two trying to convince people

that was north

some would begin to believe it because

they saw it on television so it must be

true

everything on tv is true isn't it i mean

reality tv is real isn't it

come on i mean really isn't it amazing

how we just buy into this stuff and

that's what we're talking about here

and see debt has been marketed to us

with such intensity with such

sophistication

and the marketing and with a large

amount of marketing dollars for so long

that to even imagine living without debt

requires a complete paradigm shift

a completely new way of looking at

things

now the way you get a paradigm shift the

way you get a new

way of looking at things is you put

stuff into your brain that wasn't in

there before and that's what we're going

to do tonight

you know when you read a book and you go

wow that's i never thought of that that

way before and it gives you a new way of

looking at marriage or a new way of

looking at raising kids or a

new way of you know controlling your

physique and losing weight or

or building muscle or learning to run or

ride bikes or whatever it is you're

going to do when you get a new way of

doing things from

learning and that's what we're doing

here tonight so congratulations for

being with us

you know our great great grandparents

thought debt was a sin

i mean think about it here's some

interesting actual facts

the 1910 sears catalog

now this is sears credit card

city sears the 1910

sears catalog said buying on credit

is folly now that's another generation

isn't it

jcpenney mr j.c penny

was nicknamed because he was so tight

james cash

penny because he didn't believe in debt

and while he was alive j.c penney the

stores offered no credit

ever henry ford of ford motor company

fame

hated debt ford motor never offered

credit on cars

until 10 years after general motors did

because of henry's personal disdain for

debt

these are actual facts but that's a

whole

two three generations ago almost now

isn't it

and we look back there our great great

grandparents basically thought

debt was a sin our grandparents they

thought debt was really dumb and they

borrowed on a couple of things and

you know so around 1950 we see the birth

of what we now call the credit card by a

guy named

frank mcnamara frank printed up some

plastic cards in the city of new york

city and and started handing them out as

a way to go

several restaurants began to accept

these cards and it was the very first

credit card out there it was called

diners club

and it is still around out there

actually around 1958

out on the west coast there was a little

company called bancomera

card sprung up which was the precursor

and later became known as visa

in 1958 american excess i mean

express was born so these are

this is some interesting history on this

see our grandparents thought debt was

dumb our parents come along they start

to borrow on everything by 1970 only 15

percent of americans owned plastic

in 1976 bank americard changed its name

and became visa just 30 some odd years

ago

visa in the scope of the history of the

world is a fairly new product

and here's an interesting one too some

of you didn't know this back in 1986

sears got in a little dispute with visa

didn't like the fee structure

so they said we'll show you we'll just

start our own brand

and discover card was born by sears and

it was became the most profitable

division of sears and when sears got in

financial trouble the way they survived

that financial upheaval was they sold

off the discover card

accounts and brand and made a ton of

money on it

so our great-grandparents thought debt

was a sin

our grandparents thought it was really

stupid our parents borrowed on a few

things we come along we borrow on

everything

i when you go down a pet store you get

90 days same as cash on rover

come here baby repo man's here

and over 6 billion credit card offers

went out last year

6 billion that's 6 000 million and 18

million people accepted it

one of my listeners mailed me this in

for my radio show

from bank one it's the bank one

platinum mastercard it's interesting

it's uh

it says solid line of credit up to one

hundred thousand dollars

it's addressed to mr toby cocker

on rocky mountain parkway and my

listener wrote across the front dave

this is my dog's name

toby the cocker spaniel

[Music]

and toby's been dead four years

six billion credit card offers out there

including mr toby cocker

what we're saying here is is that banks

are very very good at selling

their product and what you and i have

got to realize as consumers is

debt is not a privilege that is a

product i love credit card commercials

they're so

bright and shiny and hopeful but do you

know why they are

they want to distract you they want to

distract you from what's really going on

they don't want you to see that

paragraph of copy at the bottom

the legal disclaimer so they try to

distract you with the bright and shiny

but do you know who else gets distracted

by things that are bright and shiny

cats cats love lasers

they are amazed by a laser so when we

talk to you about your finances and

being smart with your money

when rachel talks to you and dave talks

to you we're not saying hey you need to

be a financial expert today

you need to get a phd in finance we just

want you to make better decisions

than cats that's a really low bar i

think we can get over it but

credit card commercials sometimes make

it hard sometimes they try to confuse

you

with something that's shiny or they do

even worse they compare themselves to

something they're not

they'll say it's not a credit card it's

not a credit card

it's a doorway to adventure it's a

passport to a new life

that sounds like there'll be a unicorn

involved now

here's the problem when a credit card

does that i think we should do that too

like if a credit card is going to

compare themselves to something they're

not

why don't we do that imagine if you

dated a girl who treated you

like a credit card does what if in the

middle of dinner you were just having

dinner and she declined you right there

she just left the date that would be a

bad girlfriend wouldn't it

what if after a bad relationship your

dating score was really low

you had a bad dating score and everybody

else who met you at a party would say

you're really interesting i like you you

seem neat but what happened in ohio in

2009

you've got a really low dating score

imagine if your girlfriend sold that

relationship to somebody else

because that happens with credit cards

all the time i mean imagine if you came

to pick her up for the prom and he

knocked on the door

and it opened and there was a tall man

in his 50s with a mustache and he said

your girlfriend told me the relationship

i'm so excited about the prom

that would be a bad dating relationship

so the next time you see a credit card

commercial

don't get lost in the shiny or the

bright or the over promise ask yourself

what are they really trying to tell me

right now because i promise it's

probably not the message you see

first

[Music]

how many of you own a business or in

sales of any kind raise your hand

how would you feel if monday morning

when you got to the front door there

were people lined up down the street

on one knee saying please sell me your

stuff

you say well i'll have to check your

credit

wouldn't that be an interesting way to

be see if you and i had done as good a

job selling our stuff

as the banks have selling americans on

believing

debt is necessary to to exist and debt

is necessary to prosper

now we go in to buy their product on

bended knee

we go in and say please sell me your

debt and then when they approve

us to buy their product it's like

getting accepted to a country club that

nobody can get in you know it's like

i i gotta you know i've got a plutonium

card

i i was accepted isn't that that's

tremendous marketing it's called a

negative sale

when you can get someone wanting

something take it away from them so they

chase you to get it

that is powerful because everybody wants

to get into a crowded restaurant don't

they

everybody wants to buy something that's

no longer on the shelves don't they that

scarcity kind of feeling

and that's the way debt has been

marketed and very effectively to where

now

we think we're someone if we get

approved isn't that an interesting

twist and how they've been able to pull

that off culture wide

i think it's excellent i think they're

they're very very smart

and i think they're very good at what

they're doing but you know

if we go into any other store and the

salesman comes up and says

can i help you please you say oh no i'm

just looking

i mean what if you went into a bank and

they said can i help you please you said

no i'm just looking

instead you go would you please give me

a car loan please

because i need a car we're begging

them to buy from them

that's excellent excellent marketing and

now we've reached the point that

25 percent of families now have a

negative net worth

and i just pulled this up today this is

very interesting

last year the gross revenues for the

credit card industry

was over a hundred and fifty billion

dollars as a whole that is more than the

gross national product

of egypt puerto rico and the bahamas

combined

this is a big deal and these guys are

very good at what they're doing i'm not

saying they're evil and i'm not paranoid

i don't think there's a conspiracy

i just think they're a lot better at

selling than we are at not

buying i think they're excellent at what

they do

and i'm really kind of in awe of them in

an evil whacked out sort of way

[Music]

[Applause]

the rich rules over the poor the

borrower is

slave to the lender

slave to the lender you see what happens

to most of us is we get out of school we

get married right

no this is not marriage

but sharon and i we got out of school we

had a little bit of a student loan debt

we had too much on a mastercard and a

lot on an amaco card because when i was

in college i bought a couch on my amaco

card

i don't think you're supposed to do that

are you guys said it was okay though

and we started off our lives broke you

remember when you started off broke we

ain't got money honey but we got

love good thing too because we ain't got

no money

and we were eating in off a card table

driving a 1902 pinto just getting our

lives started you remember

and and that's about the time all those

pintos were blowing up i don't know if

any of you remember that or not

and my wife was driving the pinto so we

were getting a little worried here my

buddies are going but you got good life

insurance don't you

so i got all embarrassed went and bought

my wife a brand new car i wanted

yeah some of the ladies understood that

one yeah

and then we're in this little apartment

watching this television sideways that

we bought at a

a at a garage sale and and so i went

down to one of the electronics store and

to get me a good television

90 days same as yeah you know about that

because i'm a finance major i'm going to

get that free money

i'm going to use that free money i'm

going to beat them up and i bought a

stereo television which meant i had to

get a

stereo and then i had to get an

entertainment center to put all this

stuff

in now we're in a one bedroom flea bag

apartment eating off a card table but we

have a

stereo system shaking eight block area

priorities baby priorities and that's

how we started off our lives and then

our friends came over and said

oh you've been married 20 minutes and

you haven't bought a house yet

oh renters go to hell

oh you can't be a renter got to buy a

house got to buy a house got to buy a

house got to buy a house got a house now

listen i want you to get a house

but broke people shouldn't buy a house

[Music]

that blessing will turn into a nightmare

and so we went and we got a house with

nothing down because that's what we had

to put down nothing

they called it creative financing we

thought it was creative

here we got no money we signed our name

and got a house

this is just good in america what a

country

and we bought a house in the same

neighborhood that i grew up in

you see larry burkett used to say we

spend the first five to seven years of

our marriage trying to attain the same

standard of living as our parents

only takes them 35 years to get there

so we're in the same neighborhood as mom

and dad had a better car than mom and

dad

and for sure had a better stereo system

than mom and dad

that's how we started off our lives we

have people that look like this coming

to our office all the time

they're going dude can you get me out

see the sad thing is 52 percent of the

marriages in america end in divorce

of those that divorce in the first seven

years well guess what they tell us

90 percent of those say marriage

problems

caused the young marriage to crash money

problems

caused the young marriage to crash

you see it's no fun like this to be

married you know why your leg gets tired

so we made a decision sharon and i that

the borrower really is

slave to the lender that that's as true

as the fact that that is north

it's the truth whether we liked it

whether it was convenient whether it

hurt our feelings

it was still the truth

and we made a decision to get out of

these things and we worked like animals

we sold stuff we drove old beat up used

cars our kids grew up in consignment

sale yes

experienced clothing but their college

fund was funded oshkosh bagash

and we made a decision we weren't living

like everybody else we figured out what

normal was and we didn't want any part

of it

it took us a while took us a lot longer

than some of you that are working our

program

but finally we reached the point finally

we

we busted it and we pushed and we

twisted and we turned and we

sacrificed and we didn't go on vacation

and we did all the stuff we talk about

all the time

finally we paid off everything even the

[Applause]

house

you know what you can do if you don't

have any payments anything you want

you know how hard it is to make money

save money give money and invest money

when you don't already have everybody

else's name on your money

before it comes in it's easy to make

money save money give money and invest

money

when you don't have someone else's name

on everything you have

when all the money comes in and all the

money goes out and only the names are

changed to protect the innocent it takes

all the fun

out of the deal but dave

[Music]

what about and that's what i get when i

go around the country talking about debt

people generally go yeah debt's a bad

thing and we borrow too much in america

we get that dave we understand

and it's a concept and a philosophy and

a theology we grasp that but dave what

about

and then there's their little thing that

they think is different

and we all used to get these butt daves

so much

that we finally on our talk radio show

the dave ramsey show we started doing a

butt dave theme hour

where you could call in and ask me about

your butt dave

and we would go into it and i started

hearing and what i started realizing is

is that people

not only had believed the overall myth

that debt was the way to win with money

but they had all of these very specific

little lies

built into the big lie that they had

believed we call them myths

if you spread a lie tell it often enough

and loud enough eventually it becomes

accepted as the truth

so what we're going to do in this lesson

is we're going we are going to pop

we are going to debunk the myths

there are several financial myths that

young adults fall for

the first one is that you have to build

credit that drives me crazy

because credit is not necessary to

survive

you need to know that the credit

industry wants you to believe this

they know that if they can make people

think that they need to build their

credit

then they're giving you a reason to go

into debt the truth is

there is no reason to go into debt

we're the most marketed to country in

the world

watch the commercials when you get home

all of these commercials make you feel

like you need these things

you don't need those things it would be

nice to have

but only if you have the money so you

don't need it

so avoid debt like the plague i want

young adults to just slow down

you can get things later in life just

save up

and pay cash for it the next thing is

that they often think

i can do whatever i want when i'm in

college and i'll just pay for it later

when i'm making money

taking on a lot of debt because you

won't tell yourself no we'll limit your

options later in life

because when you get out or even if

you're in school

you've got to make the money required to

make those payments

so by not thinking you can do whatever

you want and just pay for it later

what you're doing is having self-control

and

later that's going to give you options

for down the road

the third thing is the feeling that you

need a new car

you have to look cool on campus so you

need a new car

the problem with that is if you don't

pay cash for it

that car is bringing what a lot of debt

with it

and don't get me wrong i felt the same

way coming out of college

i didn't have enough money and so

fortunately i refused to go into debt

instead i saved up and i was able to get

a newer car

later everyone wants everything right

now

but debt keeps you from being able to

pursue your dreams

later in life don't fall for these myths

avoid debt save for emergencies and

large purchases

and learn to say no even when the people

around you

won't

you