Do you want to save money this year?
Is your goal to be debt free?
If that’s you, you’re in the right place. These tips from Dave Ramsey will help you realistically save money and achieve his 2019 financial goal.
Every New Year, most people have two main goals: to be healthy and to take control of their finances. There is no better way to learn to take control of our finances than by following these tips from Dave Ramsey.
Dave Ramsey is an outspoken financial guru who became a millionaire at 26 but lost everything and filed for bankruptcy at 28. What makes him an amazing teacher is that he teaches from experience on how he went from broke to prosperous again.
He is the author of several books and my favorite is Total Money Makeover. This book was life changing for me. Thanks to his insightful advice, I have been able to save more money this year than I ever imagined possible.
His advice has helped millions of people around the world improve their financial lives.
Today I am sharing 10 easy tips from Dave Ramsey that are easy to follow and implement.
Let’s dive into it.
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1. Keep your current phone
There is no need to buy a new phone every year just because there is a new version on the market. Dave Ramsey says, don’t buy anything your grandparents wouldn’t buy. With new innovations, it’s hard to keep up with the latest technologies and most likely you can do without them.
2. Advice from Dave Ramsey: Stop using credit cards.
Having a credit card makes you think you can pay for things you can’t because you’re not paying all at once.
Contrary to belief, you are not making money with credit cards. The only beneficiaries are the banks and credit card companies.
Credit cards are very tempting because of all the benefits, like earning airline miles, but unless you’re very strict about payments, you should cut them out. Credit cards will only create more debt for you. If they are not very careful with credit cards
Cutting up your credit cards is one of Dave Ramsey’s tips that will help you save tons of money.
3. Always have a list while shopping
The best way to stop overspending when you shop is to always have a list with you. Having a list will help you stick to your budget. Without a list, you’re tempted to impulse buy things you don’t really need.
4. Always pay in cash
The simple rule is if you can’t pay cash, you can’t pay it. Most likely, you can do without such items. There’s no point in going into debt for things like cars, furniture, or television.
Sometimes we end up trying too hard trying to keep up with other people. Just because someone has an xyz car doesn’t mean I have to have one too. Don’t spend more than you earn. If you can’t afford that phone, that’s fine, there are better alternatives on the market that do the same things anyway.
Another realistic piece of advice from Dave Ramsey is to envelope system. You put cash in an envelope that you plan to use for that month. Once you’ve used up the money in the envelope, just stop spending. The envelope system will help you stick to your budget.
5. Tips from Dave Ramsey: Have an emergency fund
Having an emergency fund is a must.. An emergency fund will make sure you don’t go into debt unnecessarily for unexpected things like medical bills. He needs to save $1000 in an emergency fund which is actually Dave Ramsey’s first step.
Note that the keyword here is an emergency fund, so don’t dig unless it’s an emergency. Life happens and unavoidable scenarios arise and the last thing you want is to get further into debt when you are trying to get out of debt.
He advises her that she needs $1000 in an emergency fund before she thinks about paying off the debt. Here are some posts on how he can save $1000 if he puts his mind to it.
The side hustle that will make you $1000 per month
12 things I stopped buying to save money
19 Ways to Save $500+ Every Month
6. Increase your income
One of Dave Ramsey’s tips that has truly transformed my finances is to do everything possible to increase my source of income. Work from home or commonly known as side jobs are a good place to start. There are so many jobs like babysitting, starting a blog, taking online surveys that will help you earn extra money.
7. Avoid brands
This is going to be a huge money saver because brand name labels cost a fortune, and yet it doesn’t mean that brand names are superior to generics.
You’ll be surprised to see that you get the same quality as generic products like cleaning products and paper products.
So why pay more for a name tag?
8. Tips from Dave Ramsey: Choose your priorities
Before you even think about budgeting, you need to identify what your priorities are. The plain truth is that you are responsible for where your money goes. So decide before the next paycheck or 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 transportation and food. That will help you know how to budget your money.
9. Create a zero budget
A zero budget will help you make sure every dollar is counted. An easy way to do this is to first write down your total income, after list your expenses and so readjust your income so that it goes down to your budget or equals it. You just allocate your money appropriately even if that means some of it goes into savings. An easy way to keep track of your spending.
As you track your spending, eliminate things you don’t need. The fewer things you have on your spending list, the less money you’ll 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 expenses. Think of a plan and stick to it. You should be able to account for your expenses from the first currency to the last. Dave Ramsey said that if you can’t control your money, it will start to control you.
Follow these tips from Dave Ramsey and watch your financial situation change from day to day. I hope this post has been helpful and that you have found some ideas that 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 will not regret
What point is your favourite?