A Powerful Message
If you read either of Dave's major books, Financial Peace and The Total Money Makeover, you will find that he delivers a powerful message for people to get out of debt and start saving to alleviate existing financial pain and move towards a secure financial future. In his words, he wants his listeners to "kick Murphy out, permanently". Of course, the Murphy he refers to is that of Murphy's Laws that are along the lines of, "If anything can go wrong, it will go wrong".
He teaches the old school method of handling money which is to make a budget each and every month and then stick to it. He shows people how to get out of debt, stockpile cash, and invest aggressively--none of which are unique lessons in personal finance. Even with his methodology being far from original or unique, his listeners seem to handle their money better than most of us, even those of us that are doing quite well. So what is the secret behind his and his listeners' success?
The Listeners
You might think it's because he's a financial genius or that his charisma can convince people to take action, but on both counts, you'd be wrong. The reality with Dave and his listeners is that he is starting the conversation with them at a point where they are in financial peril. By reaching folks when they are struggling with debt, he has found an audience that truly listens to his advice and are willing to put that advice into action--even if it's a massive pain in the backside.
The reason for this is simple. The pain that those deep in debt are experiencing is far greater than the pain of making and sticking to a budget. Ask someone off the street who isn't in debt and doesn't have any major financial pains to do a budget, and you're likely to get a dirty look. Not so with Dave's people, they are ready, willing, and able to do as he teaches.
Why is this? Well, if you haven't been through the debt grinder, just imagine that each month you're sinking further into debt. This continues for some time until one day, you miss a payment on a credit card. Then the collections calls begin at home and work. Pretty soon, you miss another payment and suddenly you're well on your way into a tailspin that manages to suck the life out of you at work, creates marital discord at home, and eventually has you thinking there's no way out.
Do you think you'd be more receptive to making major changes in your life if you found yourself circling the drain, so to speak? Of course you would. And why wouldn't you? Obviously if you find yourself in that kind of state, you'd be happy to hear anyone that had a message of hope backed by the experience and expertise needed to help you get out of the mess and into a better tomorrow.
Lasting Change
As Dave walks people through this process of getting out of the mess, he does it in a firm manner that basically says, "you need to do it this way...no exceptions, no shortcuts". He teaches the long road to people who are really listening and as people take the long, hard road to get back to scratch, something fundamentally changes in the way they view themselves and the role that money plays in their lives.
While it's different for each person, I view this fundamental change as being similar to that of those who lived through The Great Depression. In my career, I've had the great privilege of meeting and speaking with a good number of people who survived this turbulent economic era. Without exception, everyone I encountered in this group was conservative with their money, lived well below their means, and perhaps most importantly, understood money's proper place in life.
With this group, money was more important as a security measure than as a means to enriching one's life. This might sound counter-intuitive--particularly with all that we've learned from financial services marketing messages--but the reality is that the Depression Era survivors were closer to the truth of the matter. Ultimately, the limited and often short-lived happiness derived from acquiring material possessions pales in comparison to the financial pain created by not having enough money.
It is this intense pain that has the power to create lasting change.
My Money's on Dave's People
Now you have my take on why Dave's followers are more successful with their finances than the average person off of the street. Real pain opens the ears; Dave has a powerful message; and the lessons learned are lifelong. If I was a betting man, I'd put my money on Dave's people every time.
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