Dave Ramsey is a seventime #1 national best-selling author, personal finance expert, and host of The Dave Ramsey Show, heard by more than 16 million listeners each week. He has appeared on Good Morning America, CBS This Morning, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992, Dave has helped people regain control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions.
One of my resolutions this year was to start living on a budget, and gain control of my money. I never realized how easy it would be to get discouraged early on. Can you give me some encouragement to help make my financial resolutions stick in 2021?
Collin
Dear Collin,
The secret to making a goal into a reality is getting started. It’s really that simple. You also have to be realistic and accept the fact that nothing—especially things you’ve never done before—works out perfectly the first time around. That leads to the next step, which is patience. Most people think about losing 20 pounds, and immediately feel it needs to happen in the next month or so. It doesn’t. And mostly likely, it won’t. Like almost everything else worth doing, it’s something that requires sacrifice and focus each day over an extended period of time. Crash courses are usually painful and rarely work out well. But once you’ve done something a few times, it becomes an easier and easier part of your daily routine. Pretty soon, it’s not a chore or something you’re afraid of.
Making a budget and gaining control of your finances works the same way. When you first create a money plan, it probably won’t work out exactly as you hoped. That’s okay. It will barely work the second month, but it won’t be as scary, because you’ve already done it once. By the third month, you’ll have a much better feel for it, and your stress levels will go way down because you already know the basics. It just takes determination, patience, and intensity to get through the rough patches that go along with starting anything new.
A new year is just around the corner, Collin. Don’t fall into the same old trap. Give yourself a little grace, but keep your eyes on the prize. Start preparing yourself now. You’ve got plenty of time to begin laying out a plan, and have a solid budget ready when January 1st arrives. It may feel like things are beginning slowly, but you can make this happen if you’ll just stick with it!
—Dave
Dear Dave,
I lost my job a few days ago. We had an idea cuts were coming, but I thought it wouldn’t happen until well into the new year. My wife works, so that’s a good thing, and we’re both in our thirties. Do you have any advice for how we should handle things during the Christmas season and until I’m working again?
Brandon
Dear Brandon,
I’m really sorry to hear this. Losing your job around the holidays can feel like a nightmare.
But before you despair, remember this is also the season of hope. And hope can’t be taken from you. It can only be surrendered. Keep your head held high, and focus on what’s still in your control.
First, cut back on your spending. When your income changes for the worse, eliminating all unnecessary spending is key. This is not the time to put Christmas on a credit card, or dip into retirement to cover holiday expenses. The last thing you should do right now is steal from your future to buy more stuff. Find some kind of seasonal work. Even if you’re packing boxes or stocking shelves, you’re contributing to your household and easing the stress. This side income will be a real blessing as you continue your career search.
Be open with your family, and what this change means. If there are kids in the picture, you and your wife should be in agreement on how you handle things where they’re concerned. Explain to them in an honest, loving way what has happened, and that Christmas will look a little different this year. A couple of inexpensive gifts may not be out of the question, but as harsh as it sounds, presents are not a priority right now. It may be uncomfortable or disappointing for everyone, but it can also offer a bonding opportunity and a valuable life lesson.
Keep a positive outlook, and stick to your normal routine as much as possible in the days ahead. Wake up early every morning, and make a list of things you will accomplish that day. Update your résumé, start networking, and begin submitting applications like that’s your new job. Work hard, stay hopeful, and focus on the goals ahead of you.
Refuse to give up, Brandon, and you will succeed. May God bless you and your family!
—Dave