Dave Ramsey's Money Tips Everyone Should Know

Posted by kellybrown on October 30th, 2019

There are several articles and blogs that provide a wide variety of money saving tips. This may include how we budget our monthly expenses, how to fund our emergency fund, how to save up for your first car etc. One of the popular personalities when it comes to giving financial advises is Dave Ramsey.

Dave Ramsey is a businessman and best-selling author that is known to give financial tips to people. He is expert when it comes to how you can get out of your debt and how to build your wealth.

Not following any money saving tips from him? Here’s some of the effective money tips from Dave Ramsey that you should start adapting.

Follow zero-based budget

A zero-based budget refers to the creation of an advance budget for the upcoming month. By doing this, you can monitor where your money is being spent and have the full control on how it is spent. 

Pay off your debt

If you have any ongoing debts, make it to your top priority. You should get rid of it as soon as possible. You can opt to do the debt snowball method, debt consolidation, or refinancing your debt. 

Quick tip: Ensure that when you are repaying debt, pay beyond the minimum required monthly payment so you can finish it as soon as possible. 

Use cash

As much as possible, use cash when making any purchases. Unlike when using a card, this will let you see how much you have purchases and how much is left.  

You may opt to use cash envelopes to aid you in categorizing your spending. For example, organize envelopes for your food, bills, and transportation. Fill each one with amount you set for it. Doing this will help you avoid overspending.

Have an accessible emergency fund

Many financial experts stress the importance of having an emergency fund. Emergency fund enables you to finance immediate needs, such as medical bill or home repair.

Ideally, an emergency fund should contain 3 to 6 months worth of  monthly expenses. If it is too high for you, you can start funding at least 3 months.

Lastly, it is not only that you set up an emergency fund, it is also important that it’s accessible. You can open a separate bank account for it, so you won’t be spending it.

Cut credit card usage

If you are committed to sticking to a budget, now is the perfect time to cut those credit card usage. When you use a credit card for purchase, it gives you a notion that you did not spent a money at that time. However, when the billing statement arrives, it gives you additional expenses that does not belong to your monthly budget.

Having no credit card debt to deal with gives you a freedom to have more allotted money to more important purchases, and spare you from interest rates and monthly payments.

Save 15% for retirement

If you do not have any debt, you can focus on giving more for your retirement. Allot at least 15% of your income to your retirement fund. You may also choose to invest it so it will eventually grow. Just make sure that you learn first about the investment you are getting into. You can read more investment tips at https://www.ecomparemo.com.