A friend of mine is a follower of Dave Ramsey and the other day she mentioned that everyone should take the Ramsey course that she had just completed. The course centered on debt reduction, cutting up credit cards, and paying cash for everything so I was curious to hear what she got out of it. I was especially interested to hear why she thought “everyone should take it”.
The short version of her answer is that it gives you a sense of control over your financial life, as well as helping to pay down outstanding debt. Who wouldn’t want that? But what happens at the end of the 36 or 48 or however many months it takes to reduce the debt? Is there something to show for the years of penny pinching and card cutting? Or is it just the feeling of control over the now-reduced debt?
Don’t get me wrong. Dave Ramsey has helped many people with this type of program and some of his advice is great. But what if there was a better way? What if at the end of the months of disciplined payments you hadn’t just reduced your debt, but built an asset in its place? Debt extermination vs. debt reduction, if you will.
Spoiler alert! There is a better way. All the benefits enjoyed by my friend, with the addition of a financial asset you continue to use once the debt has been exterminated. We have proven this time and again with real clients, so please understand this is not merely a theory. Ironically, the key to taking this process to the next level involves using something Mr. Ramsey has made a habit of railing against.
Participating Whole Life Insurance (PWLI) is a very powerful and flexible financial asset that can be used to enhance these popular debt reduction programs. In addition to eliminating the debt, the interest you have been paying the creditor begins to come back to you and eventually you are the lone money manager. This is the spot you want to be in. Managing (controlling) your own money, free from bad debt, and with The Perpetual Wealth Code™ helping to grow your wealth.
Do you want to just reduce the debt or do you want to build something on top of the bad debt ashes? Call me to talk about how to start building today.