The thing I have discovered about working with personal finance is that the good news is that it is not rocket science. Personal finance is about 80 percent behavior. It is only about 20 percent head knowledge.
Interpretation
Personal finance is primarily about behavior rather than complex knowledge.
In this quote, Dave Ramsey highlights that managing personal finances effectively relies more on one's behavior and decision-making than on advanced financial knowledge. This suggests that understanding and modifying our habits can lead to better financial outcomes, emphasizing the importance of discipline and personal choices in financial success.
In practice
During a financial workshop, to emphasize the importance of behavioral habits in budgeting.
Debt is so ingrained into our culture that most Americans can't even envision a car without a payment ... a house without a mortgage ... a student without a loan ... and credit without a card. We've been sold debt with such repetition and with such fervor that most folks can't conceive of what it would be like to have NO payments.
Debt collectors like to play on your emotions because they think you'll give in and do something you can't really afford to do. Most of them don't care about you or your situation as long as they get some money.
Hitting bottom and hitting it hard was the worst thing that ever happened to me and the best thing that ever happened to me.
Your priorities, passions, goals, and fears are shown clearly in the flow of your money.
You have to teach children about money intentionally - create teachable moments.
As parents, we teach our kids about things we feel competent in. That's why so many parents don't teach their kids about money.
I'll always understand the Schadenfreude aspect to short-selling. I get that no one will always like it. I'm also convinced to the deepest part of my bones that short-selling plays the role of real-time financial watchdog. It's one of the few checks and balances in the market.
Never, ever invest money that you will need prior to three to five years - minimum.
A stock certificate is not a tool, like a shovel, or a commodity, like a pound of cheese. What we sell a customer is not a share in a business, but a view of the Elysian Fields. A financier is a creative artist. Our function is to stimulate the imagination. We are poets!
In January we start saving money, getting out of credit card debt, funding our retirement accounts, and we're doing wonderful. Then, every single year like clockwork, starting in November, all of you fall into this trap that says, 'I have to buy this gift... I can't show up at this party and not have something for everybody.
At long as a stock is acting right, and the market is right, do not be in a hurry to take profits. One should never permit speculative ventures to run into investments.
A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price.
Subscribe for the occasional hand-picked quote. No noise.