any people are looking for ways to save money these days and Dave Ramsey tips can help you to do just that!
When trying to find new and unique ways to conserve funds, financial guru Dave Ramsey is an excellent person to grab advice from in many different finance-related areas.
From cutting back on activities and items you don't need to finding ways to obtain excellent deals, there are quite a few Dave Ramsey tips for saving money with little effort on your part.
Of course, having a Dave Ramsey plan full of tips might not be affordable, but the lessons he teaches are found everywhere.
Here are some of the things you'll learn in the following content:
- You don't have to sacrifice a lot to save a lot (read on for more info!)
- Budgeting is key (check it out in the content below)
- By using the advice from financial expert Dave Ramsey you're headed in the right direction of financial stability
If you are looking for easy, actionable money tips or some Dave Ramsey baby steps, read on!
Dave Ramsey Tips: 15 Best Smart Money Tips From Dave
The following are 15 best smart money Dave Ramsey tips (e.g. Dave Ramsey budget) from IRAs and pre tax investment vehicles to simple living expenses:
1. Increase Your Income
One of the must-use Dave Ramsey tips is to find ways to increase your income and then pursue those methods.
Here’s the kicker:
There are many ways to increase your income.
You can add some extra dollars to your bank account by having yard sales or getting involved with side hustles, which are part-time gigs on the side.
You don't have to reserve a lot of time for your side hustles, as there are plenty of ways to make quick and legitimate earnings with little work or time on your part.
In fact, how much time you want to spend on your side hustle is totally up to you!
One side gig to look into is filling out surveys. So many companies are looking for individuals to spend a little time providing their opinion on a wealth of topic areas.
You could make as high as $120/focus group or survey in your free time. Who doesn’t like that?
Did I say that you can literally get paid doing what you normally do (even the silliest ones) with Swagbucks? Yes, that's right!
Anyhow, these three are different in so many ways and they offer different things. I highly suggest you sign up for many to get all the benefits they offer.
Semi-fast, more cash
If you are for side hustles that could make you money month after month with little to no effort, here are some ideas. These ideas may not generate you fast cash, but they could make you more in the long-run:
- Blogging: Where I made over $200,000 in a few years. I put in my time, and I'm getting all the benefits. Now, I blog for 5 hrs/mo and still make at least $10K.
2. Trim Your Budget
It's important to budget weekly. That's one the Dave Ramsey budget tips.
With regard to practical budgeting tips, now is the time to cut out activities and items from your budget, which aren't really necessary and are costing you a lot of money each month.
These include Starbucks coffee, eating out three times a week, massages, and other luxury items.
If you like doing it from scratch, there’s a tool just for you:
It will look into your subscriptions, help you get deals only Trim knows, save you money on groceries, earn you automatic savings back, among others.
Sign up for Trim and start using this handy tool today! It’s FREE to sign up. Eventually, you'll learn how to stick to your budget with this tool.
Here are some other apps you can use to trim your budget and still get the same level of benefits:
- Charlie – a free app that helps you cut your bills without even downloading an app. Just text Charlie and it will find you some savings. That's easy. So far, Charlie's helping people pay down $50 MILLION in credit card debt.
- Cushion – is designed to get your bank fee refunds. Tired of seeing late, maintenance, overdraft, foreign transaction fees, etc. Cushion is your best friend to negotiate with the banks. Period.
3. Pay Off Your Debt
No kidding, debt is a disease that continues to live and breed (in this case, penalty and interest plus the principal) until you put a stop to it.
That's why make every effort to pay off your debt.
You can use the debt snowball method or some other methods to decrease it little by little.
Also, another good way is to consolidate your consumer debt using personal loans such as SoFi or Upstart, both of which offers unbelievably low interest.
As you know, low-interest rate means low-interest payment. Low-interest payment means more money in your pocket. Cha ching!
I personally used personal loans to pay off over $40K.
After 4 years, I was debt-free and, luckily, saved over $200K in the process.
4. Invest in the Future
It's not only important to think about the present day, but also the future.
Dave Ramsey money tips also include investing in the future.
Investing in pre-tax savings plans is a wise idea as well as investing carefully-selected mutual funds.
Fundrise is designed for would-be real estate investors who want to dip in their money (for a minimum of $500). Yes, you now can invest for that amount! Historical returns for Fundrise investments were 8.7% – 12.4%. That’s something you don’t want to miss out on.
Acorns is designed for those who want to invest, but don’t have a lot, to begin with. Literally, you can invest cents with Acorns, and those will be invested.
Now, investing isn’t just for those who have money but also for those who want to grow their money one cent or a few dollars at a time.
5. Eat Less
Think of your last grocery trip and how much you spent on the food you bought.
If you could make an effort to eat less, and still eat healthy, you'll not only be healthier, but also have more money in your pocket.
Sometimes it takes just cutting out the extra junk food or purchasing smaller containers and packages of items as opposed to the larger boxes, as not all bulk items will save you money.
Another way to save money in the food department is to try out the $5 Meal Plan, which will help you to plan delicious meals and do so inexpensively.
For $5/mo, you’ve got a lot to gain from proper, budget-friendly meal planning.
Check out the $5 Meal Plan website and sign up for a risk-free 14-day trial membership.
6. Build Credit with “Good Credit” Not “Bad Credit” If You Have No Other Option
Dave Ramsey tips frequently discuss good credit and bad credit and differentiate the two because there is a big difference.
Good credit is something such as a mortgage, for example, whereas bad credit relates to many of the other types of credit.
So, should the time come when you need to take out some form of credit, make sure it's the good kind and not the bad kind.
There’s a place to start to build a good credit. But not everyone knows where to start.
It’s your credit history or credit score.
Wondering what your current credit score looks like and interested in receiving tips on how to manage your credit and loans?
Credit Sesame can help you with both of these items for FREE.
It’s free and can exactly show you where the problems are, what you can do to improve your credit, what to stay away from, among others.
7. Create a Zero Budget with the Envelope System
Maintaining a budget is extremely important for saving money.
There's something called the zero budget system, a great option with regard to Dave Ramsey tips, which you can apply using the Dave Ramsey envelope system.
Think of it this way. You're paying all of your bills in cash. When you get your income, you assign each portion to a specific envelope, so that every portion of income has its place.
An easy way to try out the zero budget system is to use a budget template.
8. Use Cash and the Envelope System for Certain Budget Categories That Trip You Up
If you have certain expenses, which aren't necessities, but you can't stop spending money on them, try the cash and envelope system for those specific expenses per the Dave Ramsey tips.
This is a good way to manage your money effectively.
Have a budget for the specific categories, put cash in an envelope, and when the cash is gone, don't spend any more money on that category until your next paycheck.
That’s the main idea about that budgeting method.
That’s really it!
9. Don't Compare Your Spending to the Spending of Others
It's easy to compare your situation to that of others and say, “Mr. Smith can spend all of that money on a car, so why can't I?”
You're not Mr. Smith.
You both have totally different budgets and comparing your situation to that of others, or trying to spend as much money as someone else can lead to an empty bank account and an unhappy situation.
Always view your situation as just that. Your situation.
10. Eliminate Your Credit Cards
One of the easiest ways to get into trouble with money is to spend too much on your credit cards.
Want an easy solution?
Cut your credit cards up and just keep one credit card for emergency purposes.
This is one of the many simple budgeting tips.
If you need to have a card which you use from time to time, make it a debit card.
11. Tackle the Budget As a Family
If you are married, make sure your spouse tackles the budget with you.
Dave Ramsey tips state that this should be a joint effort and both of you should be working to save money together.
When you look at the budget collectively, one might think of something the other doesn't.
12. Each Month Will Be Different
Not every month will be the same financial situation.
Certain instances pop up from time to time which means you have to tweak the budget to accommodate.
If you have additional expenses one month, don't worry, as you can try to recollect the money from your budget the following month or plan ahead with an emergency fund envelope.
13. Make a Payment Schedule
When you have bills to pay each month, try to schedule them on the same dates each month.
That's one of the baby steps you can take, which can help you big time later on.
In all seriousness, this is probably one of the easiest things to do.
You don't even need a high school or college education to see the value of getting into a payment schedule.
Preparing your payment schedule will help to ease stress and ensure that you'll have the money in your account when the time comes to pay the bills.
14. Buy Generic
If you don't have to spend money on brand name items and can buy generic items, do so.
There are many retailers which offer generic versions of popular name brands.
These items are pretty much the same thing, except for the label on them.
Buying generic items rather than brand names will help to save money without sacrificing quality.
15. Pay Off Your Home Early
Another one of the Dave Ramsey tips is that if there is a way for you to pay off your home early, do so.
There is so much security in owning your home free and clear, in addition to not having the monthly payments creeping up on you each month.
Pay off your home early and you'll find that you are much more relaxed and feeling secure because of this.
Saving money doesn't have to be a difficult task. You can literally save 1,000 dollars or even more with simple budget tweaks.
There are many ways to go about saving money and doing so in a stress-free manner.
Having financial security will make you and your family happy, at ease, and able to pay the bills each month with little worry on your end.
Follow the Dave Ramsey tips above and get on your way to achieving financial stability easily and efficiently.