Dave Ramsey Explains How Mistakes Can Lead To Success: 'Success Is A Pile Of All The Mistakes You've Made'

Dave Ramsey has educated millions of people about their finances through his books and "The Ramsey Show." He is an advocate for getting rid of debt and using cash to finance as much as you can. He recently shared a video clip in an X post that covers a key detail about financial success. 

"Success is a pile of all the mistakes you've made, and you're standing on it rather than laying under it," the radio host explained. 

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It's normal to make mistakes, but we only get better from them if we learn from them. Ramsey has spoken with many callers who made mistakes with their finances. Some of those callers recovered while others continued to make the same mistakes. Here's how you can stand on your pile of mistakes instead of getting buried by them.

Accept That You Have To Change

You can only avoid making the same mistakes over and over again if you accept that you have to change. Being comfortable with change and opening yourself up to improvement makes it easier to correct previous financial woes.

Once you become flexible to the idea of change, you have to figure out which change will lead to the most progress. Ramsey has suggested that people cut up their credit cards and stop using them if they are deep in debt. He also believes in the debt snowball method, an approach where you pay off your smaller debt first to build momentum.

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Think About Where You Will Be If You Don't Change

A deep credit card debt and no money in savings may feel surpassable when you are in your early 20s. However, if you continue this route, it can have dire consequences. Ramsey has had calls with people in their 60s and 70s who have to continue working because Social Security isn't enough and they have no savings.

The decisions you make will compound in the long run. People who continue to spend frivolously won't have money left when they need it the most. People can't work forever, especially in physically demanding jobs. A financial safety net makes it easier to retire and gives you more options.

Making the same mistakes likely won't lead to a good path. You may fall short of critical financial goals and find yourself making uncomfortable sacrifices later in life. You can either have short-term pain for long-term gain or wind up with short-term gain for long-term pain. It's better to make sacrifices now than later, and part of that is correcting your mistakes.

Envision how your life will look if you correct your mistakes compared to how it will look if you ignore your weaknesses. Keeping those two scenarios in mind can help you take the necessary actions to get back on track.

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Building Good Habits

Making mistakes not only teaches you what to avoid but also helps you develop good habits. For instance, someone who makes impulsive purchases can adopt the 30-day rule before buying non-essentials. 

People who follow this rule wait until 30 days before they make a purchase. If it's not an essential item, you will forget about the purchase or opt against it. However, if you still want to buy something after thinking about it for 30 days, the item holds some value.

Working on your credit card debt can also lead to good money habits like setting a budget and reviewing your expenses at the end of each month. These habits can help you cut unnecessary expenses like unused subscriptions.

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