Denial and money myths

Ramsey begins with the obstacles that keep people broke. The first is denial: telling yourself things are not that bad. He argues that personal finance is mostly about behaviour, not knowledge, and that change starts when you finally get fed up with your situation.

He then challenges popular myths, above all the idea that debt is a useful tool. In his view, car loans, credit cards and borrowing to look rich are major reasons ordinary families cannot build wealth. He also warns against keeping up with the neighbours and against get-rich-quick schemes.