25 February 2006

Debt reduction help

Dave Ramsey has a lot of valuable information on getting rid of your debts. He must be right because we both agree on so many things!
He has a great series of confessions by people who have done very silly things relating to finance he calls "Stupid Tax".

His main principles are:
- avoid debt
- live below your means
- use cash
- Be free!

He describes many techniques that can be used. I always recommend the books The Richest Man in Babylon and The Millionaire Next Door. The combined cost at Amazon is less that $20 (US) and these two books describe in very simple terms the basics of financial security.

I learned my basic finance principles from three sources:
1. Being an accountant,
2. Making lots of stupid mistakes when younger; and most importantly
3. My parents (See Finance basics from my Dad)

If you want your children to learn how to use finance and credit wisely, you must start with yourself. Read the Stupid Tax stories. They are great examples of dumb things to avoid.

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