©Dave Ramsey
Dave Ramsey – personal finance expert, author and radio host – says you can’t get rich by following everyone else.
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In a recent post on the X platform, formerly known as Twitter, Ramsey wrote, “If you want to win with money, let me give you a great idea: Find out what most people are doing and run in the other direction. Most people are broke. Most of the people look good and they are broken.
According to Ramsey, avoiding FOMO trends can be one way to build wealth, but there are other things you should avoid if you want to do so.
impulse buying
Impulsive buying is something you buy that you weren’t planning to buy, like a candy bar in the checkout lane or even a new car at the dealership. According to a SlickDeals survey, 36% of respondents said most of their purchases were spontaneous, and the average person spent $151 per month thoughtlessly this year.
Ramsey Solutions indicated that we shop because of our feelings, past experiences, simply for the love of shopping or because we think it is a good deal. To help cut down on impulse buying, create a budget and stick to it. Give yourself permission to spend (within reason), always shop with a plan in mind, and only carry as much cash as you’ll need.
social media obsession
Du.com said the average American spends 2 hours and 54 minutes per day scrolling through social media. This adds up to 44 days each year. Users are inundated with pictures and videos of people who appear to be living a life of luxury, but this constant exposure to “perfection” is more harmful than helpful.
Social media can put pressure on young people to maintain a certain image and live beyond their potential. One of the best ways to avoid it? Cut down on social media. Keep apps out of sight or limit your screen time.
no savings
New Trader You says that “fake rich” people often have zero savings or investments, even when they make a substantial amount of money. They will spend their money on luxuries and may even live pay-to-pay. The best way to increase your savings is to create a budget and put as much as possible into your savings account after paying for all necessary household expenses.
always looking for the approval of others
According to New Trader You, “fake rich” people are always looking for the approval of others and try to impress others with their wealth and possessions. They are generally more concerned with what others think than with their own financial well-being. Instead of focusing on how others see you, focus on your achievements.
credit card trust
“If you use credit cards, you don’t want to get rich,” billionaire entrepreneur Mark Cuban said during an interview on “The Ramsey Show,” according to CNBC Make It. Credit cards give you access to more money than you can afford, but if you let your credit card debt build up and make only minimum payments, you’ll pay far more in interest than you can afford.
If you use a credit card, pay your dues in full every month and stay below your credit limit.
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lack of financial education
A lack of financial education is a major problem in America, leaving many youth unprepared to manage their finances as they enter adulthood. According to the report “The Financial Literacy Crisis in America: 2023” by Ramsey Solutions, only 17% of American adults said they took a personal finance class in high school.
According to du.com, a lack of financial education can lead to poor financial decisions, such as spending excessively, taking on too much debt and forgetting to save and invest. It’s never too late to learn, and becoming financially literate can help you better manage your money and reduce your stress.
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This article was originally published on GOBankingRates.com: Dave Ramsey Shares the Simplest Way to Get Richer Than Everyone Else
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