Several weeks ago I finished leading my most recent Financial Peace University class. I love leading Dave Ramsey’s FPU classes because the people there are eager for change. They know something is not right and are looking for a financial change.
Two things are needed though for them to head in that new direction. One, they have to understand why financial change is needed. I call this gaining knowledge. Our mind has to become aware of something we didn’t know before. That awareness eventually leads to the change.
However, knowledge isn’t enough. We also must look at behavior. More often than not it’s our behavior that gets us into financial trouble. If we don’t alter our patterns of behavior financial change is not possible.
I think we can all agree that both are needed. My question today is, “Which one is most important? Which one contributes more to financial change?” You can make an easy case for either, but in the end I believe one is the clear winner.