Radio host and bestselling personal finance author Dave Ramsey has some important words to say about people who make mistakes with money.
For one, they are not alone. Ramsey explained a bit about how he has overcome financial mistakes in his own life.
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Recently, a woman named Melissa asked Ramsey for his advice on getting a handle on her finances.
"Dear Dave," she wrote. "My mom and dad always told me to live within my means," she wrote, according to an email forwarded to TheStreet from Ramsey Solutions. "As an adult, I've made some mistakes with money, including falling right back into debt after paying off everything. I'm tired of this rollercoaster, and I want to get control of my finances for good. Can you give me some advice on where to start?"
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Ramsey clarifies what your money mistakes mean
The radio personality offered some words of encouragement.
"It's frustrating, isn't it? But making mistakes with money means just one thing. It means you're human," Ramsey wrote.
"We've all done it," he continued. "Think about this, though. We're approaching a traditional time of the year for changes. On top of that, you're smart enough to have realized what you've done in the past hasn't worked."
Ramsey said he has his own experiences with making poor financial choices and explained how he was able to fix the situation.
"Believe it or not, I was once in the exact same spot you are now," Ramsey wrote. "When it happened to me, there were three pieces to the puzzle that helped me break the cycle."
"One was fear," Ramsey wrote. "Specifically, I was scared to death that I wouldn’t be able to take care of my family, and that I'd retire broke. Now, don't misunderstand me. No one should live their lives in fear. But a healthy, reasonable level of fear can provide needed motivation."
"Another was disgust," he continued. "I realized what I was doing was stupid. I was tired of living that way, and I made a conscious, purposeful decision that things were going to be different."
"The third piece, and maybe the most important because it's connected to our spiritual walk, was contentment," Ramsey added. "We live in a society that's constantly having the idea that we'll be happier, or more successful, or more admired, if we'll only buy this or that product. We're constantly marketed to, and when we have this stuff in our faces day after day, we can become unsatisfied with just about every aspect of our lives. Don't let it drag you down. It's all just an illusion."
Ramsey offers some specific steps to stop the pattern
The personal finance expert illustrated a few concrete actions to take that can help.
"One of the things I did to combat this, was to start living on a strict, written, monthly budget," he wrote. "Also, I stopped going places where I was tempted to spend money. You shouldn’t give a drunk a drink, right? So, don't put yourself in a bad situation when it comes to your behavior with money. If you go wandering through the mall without a specific plan, you'll lose every single time."
Ramsey also mentioned a tip to assist with personal discipline.
"When you go to the store make a list of only the things you need. On top of that, take only enough cash with you to buy what you need," he wrote.
"If you can walk in and back out without buying a bunch of stuff that wasn't on your list, it's a win. Every time you do this, it's another win and another step away from your old habits and in the right direction."
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