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Total Money Makeover Review: Denial

" Start living like no one else now, so you can live like no one else later " - Dave Ramsey

In order to live like no one else now, Dave says, we have to acknowledge our denial. Let's dig into ways that that he acknowledges denials that we tend to have.




#1 : We Are Not As Well Off As We Think


Dave assets that due to the convenience of credit payments, we have more rapid access to gadgets and other consumables. This immediate access, gives us a pseudo sense of being "better-off" that what our net worth conveys.


Here's my commentary:


According to Dave, a lot of us think that borrowing money, all the time means, we're in good shape. This idea is supported by financial influencers are telling us that it's "good debt". To top it off, we look around and see that everyone does this "going into debt" thing. However, it's seldom mentioned that when we borrow, we are utilizing someone else's funds. And, using money that is not ours, comes with a price.


If we want to know the REAL SHAPE you're in, calculate your net worth. If our net worth is a negative number, we are in bad shape. No matter what gadgets we may have, and cars we may drive.




I used to think I was better off than what I actually was. I was able to pay my bills, I had a car, and I was making my payments on time. Now, when I look at my situation situation I know that I wasn't that well off. I was living paycheck to paycheck, on and off government assistance, accruing student loan debt, and carrying credit card balances. The things I had gave me an idea that I was doing well, but my net worth told me otherwise.


#2 We Have To Do Something


Dave points out, how many of us believe that by doing nothing, our financial issues will resolve on their own. He calls his audience to do something, asserting that things will get worse if nothing is done.



Here's my commentary on this take-away:


I remember one day I heard Dave mention how he became "tired of being sick and tired", and that resonated with me. I was tired of facing potential homelessness, having to voluntary repossess my vehicle I had already spent over 3 years paying on, and etc. I got tired of being broke, tired of pinching pennies, tired of allowing the government to invade my privacy so we can eat, and tired of the emotional stress. Once I decided, to get my money together, that I had the power to control and change the narrative, things shifted for me in an empowering way.


#3 Denial Is Not the Same As Being Uniformed


Denial looks like this: doing the same things and expecting different results. That's textbook insanity. Dave wants us to know that their is a difference between being uniformed and in denial. In other words, because we may lack knowledge, it doesn't mean we ignore the common sense that tells us there is a problem with our finances.



Now for my two-cents:



Before, I began my financial journey, I was uniformed of basic elements of budgeting. I thought I just needed to pay my bills. I kept telling myself as long as everything got paid, that I was doing just fine. I was in denial, struggling with the same financial problems. Things didn't change until I acknowledged that there was a problem, I was tired, and I wanted to fix it.



Acknowledge the Problem(s). Get Informed. Fix It.



What are your thoughts and insights? We'd love to hear from you.



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