Good Sunday morning, everyone! I like David Ramsey. He is a financial advisor, author and radio personality. You can hear him every weekday afternoon on WITY.
I don’t agree with everything he teaches, but he has great ways to reduce debt and build wealth.
He suggests your first step be building an emergency savings of $1,000. Car repairs, home repairs, doctor bills are a part of life, so you must be prepared before you can work on your other financial needs.
The second step is paying off all debts except for your home — that comes later.
The third of his seven steps is to build a bigger emergency savings. Enough to cover three to six months of your household expenses should you have a job loss or a bigger health issue that could keep you from working.
Being financially sound, being financially responsible is expected of all of us. Living by example is the best financial decision you can give your kids because at a very young age your children learn their habits from you, the parent.
The last step of Dave’s program is Build Wealth and Give Generously. Famous individuals such as Warren Buffet, Mark Zuckerberg, Elton John and Bill and Melinda Gates, just to name a few, are pledging not to leave all their hard-earned money to their children but to give it to charity.
Warren Buffet has promised to give 99 percent of his wealth to charity. Stating that he wants to give his kids enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing.
Some studies have shown that most of the time, inherited wealth does more damage than good to the next generation. Interviews with children of entrepreneurs showed that these kids would prefer their parents leave them the knowledge of how to get money rather than the money itself.
In other words, they didn’t want the result of their parents’ labor but the example of their labor. They understood that you can’t appreciate what you don’t work for.
Give. Advocate. Volunteer. Live United.
Sherri M. Askren is president of United Way of Danville Area, Inc., 28 W. North St., Danville, IL 61832. Phone: 442-3512