Do you want to save money this year?
Is your goal to be debt free?
If that’s you, you are in the right place. These Dave Ramsey tips will help you save money realistically and achieve your financial goal.
Every New Year most people have two main goals to be healthy and to take control of their finances. No better way to learn how to take control of our finances than by following these Dave Ramsey tips.
Dave Ramsey is an outspoken financial guru who became a self-made millionaire at 26 but lost all of it and at 28 he filed for bankruptcy. What makes him an amazing teacher is that he teaches from experience on how he went from been broke to prosperous again.
He has authored several books and my favorite is Total Money Makeover. This book was a life changer for me. From his profound tips, I have been able to save more money this year than I ever imagined possible.
His tips have helped millions of people from all over the world to improve their financial life.
Today am sharing 10 Easy Dave Ramsey tips which are easy to follow and implement.
Let’s dive into it.
This post may contain affiliate links.Please read my full disclaimer for more information
1. Keep your current phone
No need to get a new phone every year just because there is a new version on the market. Dave Ramsey says, don’t buy anything that your grandparents wouldn’t buy. With the new innovations, it’s hard to keep up with the latest technologies and the chances are you can do without them.
2. Dave Ramsey Tips: Stop using credit cards.
Owning a credit card makes you think you can afford things you can’t because you aren’t paying at once.
Contrary to the belief, you are not making any money off credit cards. The only people benefiting is the banks and the credit card companies.
Credit cards are so tempting because of all the benefits like getting air miles but unless you are very strict when it comes to payments you need to do away with them. Credit cards will just build more debt for you. If are not very careful credit cards
Cutting up your credit cards is one of Dave Ramsey tips that will help you save tons of money.
3. Always have a list while shopping
The best way to stop overspending when shopping is always to have a list with you. Having a list will help you stick to your budget. Without a list, you get tempted to impulse buy things you really don’t need.
4. Always pay cash
The simple rule is if you can’t afford to pay cash, you can’t afford it. Chances are you can do without those items. It doesn’t make sense getting into debts for things like cars, furniture or TV.
Sometimes we end up straining ourselves so much by trying to keep up with other people. Just because someone has xyz car doesn’t mean I also have to own one. Don’t spend more than you earn. If you can’t afford that phone, it’s ok there are better alternatives in the market that do the same things anyway.
Another realistic Dave Ramsey tip is the envelope system. You put cash in an envelope that you plan to use for that month. Once you have exhausted the money in the envelope you simply stop spending. The envelope system will help you stick to your budget.
5. Dave Ramsey Tips: Have an emergency fund
Having an emergency fund is a must. An emergency fund will make sure that you don’t go into unnecessary debt for unexpected things like medical bills. You need to save $1000 emergency fund which actually Dave Ramsey baby step 1.
Note the keyword here is an emergency fund, so don’t dig into it unless it’s an emergency. Life happens and unavoidable scenarios come up and the last thing you want is to get into more debt when trying to get out of debt.
He advises you need to $1000 in an emergency fund before thinking of debt repayment. Here are a few posts on how you can save $1000 if you put your mind into it.
The one side hustle that will make you $1000 per month
12 Things I stopped buying to save money
19 Ways to save $500+ each month
6. Increase your income
One of Dave Ramsey tips that have really transformed my finances is trying my best to increase my source of income. Work from home jobs or commonly known as side hustles are a good place to start. There are so many jobs like babysitting, starting a blog, doing online surveys which will help you make extra money.
7. Avoid brand names
This is going to be a huge money saver because brand tags cost a fortune and yet it doesn’t mean brand names are superior to generic ones.
You will be surprised to see that you get the same quality as generic products such as cleaning supplies and paper products.
So why pay more for a name tag?
8. Dave Ramsey Tips: Choose your priorities
Before you even think of budgeting you need to identify what your priorities are. The honest truth is you are responsible for where your money goes. So decide before the next paycheck or the month what you are going to do with your money.
As you strategize on how to save money and get out of debt this year, first consider your essentials like transport and groceries. That will help you know how to budget your money.
9. Create a zero budget
A Zero budget will help you to make sure that every dollar is accounted for. An easy way to do this is to first write down your total income, then list down your expenses and then re-adjust your income so that it can go down to your budget or it becomes equal. You simply allocate your money appropriately even though that means that some go to saving. An easy way to track your spending.
As you track your spending, eliminate the things you don’t need. The fewer things you have in your expenses list, the less money you will end up spending.
10. Have a plan
He clearly stated on his website that people need a plan for their spending. You need to plan your spending. Come up with a plan and stick to it. You need to be able to account for your expenses from the first coin to the last. Dave Ramsey said if you can’t control your money, it will start to control you.
Follow these Dave Ramsey tips and watch your financial situation change day by day. I hope this post was helpful and you found some ideas you can implement to help you reach your financial goal for this year. For more money saving tips, check out his best selling book Total Money Makeover you won’t regret.
Which tip is your favorite?
Awesome blog post! I like the first point and that is to not constantly upgrade phones. I’m currently using the iPhone 6 and see no reason to upgrade! 🙂
Author
Am glad you found these Dave Ramsey tips helpful. I totally agree, there is no need to of an upgrade every time there is a new phone on the market.
I found this post really helpful. I do most of these already, except The Emergency Fund, I need to have one. Thanks so much for sharing