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Here are six Dave Ramseymoney myths to stop believing.
You Have To Pay Cash for a House
Ramseys advice on homebuying is sometimes taken out of context.
Yes, he does think paying in cash is the best way to buy a house.
Buying a home with cash can save you tens of thousands in mortgage interest.
However, he doesnt say you should put off homeownership until you’re free to do this.
You should build afull emergency fundonce you pay off all of your debt besides your mortgage.
He believes financial change is 80% behavior and 20% head knowledge.
So what does he mean by a behavior problem?
He went on to explain that gaining money knowledge is easy.
You need the discipline to take the steps that will change your financial situation.
Ramseys philosophy may be right, but dont underestimate the importance of financial literacy.
The National Financial Educators Council estimates that Americans lost $388 billion in 2023 due to financial illiteracy.
To Ramsey, its a short-term sacrifice for a long-term gain.
The number of hours you work is up to you.
Ramsey suggests creating passive income opportunities to generate extra cash without working additional hours.
Ramsey reasons that 15% will leave you with enough resources to save for your other financial goals simultaneously.
This percentage aligns with what many other financial experts recommend for younger investors.
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