25 Dave Ramsey Finance Tips We Wish We Knew Sooner

Last Updated by Neiko Johnson on 
December 30, 2021
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If you are looking for some helpful financial advice, then this blog post is perfect for you.

We will be discussing 25 Dave Ramsey finance tips that will help you pay off debt, budget, invest, save money, and become wealthy.

Dave Ramsey is a popular personal finance expert who has helped many people develop healthy money habits.

He offers both free and paid courses on his website to help teach the basics of personal finance so that everyone can live prosperous lives.

These are the 25 tips we wish we knew sooner because they would have helped us make better decisions years ago.

Establish an emergency fund

This is very important because you never know when life will throw something unexpected your way, so it is good to have a financial safety net in place. You should put away at least $1,000 for emergencies and continue to build upon this amount over time as your income grows.

We also recommend having an emergency fund of whatever you are comfortable with. For most people that is 3-6 months of expenses but you can decide how many months you want to save.

Create a budget and stick to it

This is probably one of the most important things you can do in order to get your finances under control. When you create a budget, you are essentially creating a plan for how you will spend your money each month.

This includes setting aside money for bills, savings, and other expenses. It is important to be realistic when creating your budget and to stick to it as closely as possible.

If you find that you are struggling to follow your budget, then consider using a financial planner or software to help you stay on track.

Get out of debt

One of the best ways to improve your financial situation is to get rid of any high-interest debt you may have.

This can be done by creating a plan to pay off your debt, which usually includes setting aside more money each month to put towards your debt.

There are also many helpful resources available that will help you get out of debt, like Dave Ramsey's course Financial Peace University.

Invest your money wisely

One of the most important things to do is to invest your money.  It can be extremely rewarding and beneficial if done correctly while also being really risky if not planned properly.

There are many different ways that one can invest their money, so it is important to do some research and find something that works best for you.

Save your money

This one may seem like a no-brainer, but many people still struggle with saving their money each month.

There are a few things you can do to make this easier, like setting aside money before you get your paychecks and putting it in a savings account.

Another thing to do is set up an automatic transfer of money from your checking into your savings account so that you never even see the money.

Live below your means

This tip may seem like common sense, but many people struggle with living within their means each month.

It is important to be aware of your income and understand how much money you have coming in each month, as well as all the expenses that are associated with it.

One way to do this is by tracking your spending for at least a few months so that you can see where your money goes each month.

Invest in yourself

We highly recommend that you invest in yourself by taking classes, buying books, and joining groups of like-minded individuals.

This can be especially beneficial if you are trying to start your own business or learn something new that will help advance your career. LinkedIn is a great place for professionals to connect with one another as well as find helpful resources.

Be comfortable with change

Change is a natural part of life and it is important to be OKAY with that.

This includes being comfortable with changes in your personal life, like job changes, relationships, etc., as well as changes in the overall economy.

It is also important to be proactive in your own life and be willing to take a risk when the time comes.

Be confident in who you are

This is something that may seem obvious, but many people struggle with feeling comfortable in their own skin no matter what they do or how much money they make. Everyone has different strengths and weaknesses so it is important to embrace them and be confident in who you are.

Take care of your health

One of the best things you can do for yourself is taking care of your health.

This includes eating healthy, exercising, and getting enough sleep.

All of these things will help improve not only your physical health but your mental health as well.

Stay positive

This one is probably the most important, and it can be tough to do at times.

No matter what life throws your way, it is important to stay positive and have a good attitude.

This will help you get through difficult times while also making it more enjoyable to be around others.

Increase your income

If you want to get ahead financially, one of the best things you can do is try to increase your income.

There are a few different ways that you can do this, like asking for a raise at work or finding a new job with higher pay.

It is also important to think about ways to make more money outside of your day job.

Start a side hustle

A great way to increase your income is by starting a side hustle.

This could be anything from freelance work to selling items online.

The best part about having a side hustle is that you can usually do it in your spare time and it doesn't have to take a lot of time away from your day job.

Our favorite side hustle is blogging. You can get started in less than 20 minutes with our free guide.

Become an entrepreneur

Another way to increase your income is by becoming an entrepreneur and starting a business that you can run on the side or full-time, depending on what works best for you.

This will require some risk but it can be very rewarding if done correctly.

Don't buy brand-name

One of the best ways to save money is by shopping at thrift stores and buying used items, even if they are in good condition.

This will help you save a lot of money over time but it does require having self-control when it comes to spending your hard-earned cash.

Save your money

One of the best things you can do for yourself financially is to start saving your money.

This could be in the form of a savings account, a mutual fund, or even just a jar on your kitchen counter.

The key is to start small and then increase the amount that you save over time.

Live Frugally

Another great tip is to live frugally.

This means being smart with your money and not spending frivolously on things that are unnecessary, like fancy clothes or expensive cars.

It can be hard at first but once you get used to it, you will find yourself saving a lot of money.

Invest your money

Another great way to make your money work for you is by investing it.

There are a few different ways that you can do this, like buying stocks, buying real estate, or starting a business.

The key is to find something that you are interested in and knowledgeable about so that you can get the most out of your investment.

Don't get into credit card debt

One of the worst things you can do is to get yourself deep in credit card debt.

This usually happens when someone spends more than they make and then has no way to pay off their balance, which means even more interest payments on top of what they already owe.

It is important to avoid this by only spending money that you have and not getting caught up in the idea of keeping up with your friends or colleagues who are wealthier than you.

Don't buy things you don't need

One of the worst things that you could do is to spend your hard-earned money on something you don't actually need.

This usually happens when someone sees an item they want and buys it right away without thinking about what else they are spending their money on.

It is important to have self-control and only buy things that you actually need, otherwise, you will quickly find yourself in debt.

Give to others

Another great way to make yourself feel better about your situation is by giving back.

It doesn't have to be anything major, like donating money or food to a local shelter, but it can also be something small, like buying the person behind you in line at the grocery store coffee.

Doing this will make you feel good about yourself and it can also help reduce stress levels, which is always a good thing.

Track your net worth

One of the most important things that you can do for yourself financially is to track your net worth.

This means adding up all of your assets (like money in your bank account and your house) and then subtracting all of your liabilities (like credit card debt and car payments).

This will give you a good idea of where you are financially and how much progress you have made over time.

Get organized

One of the best ways to get yourself on track with your finances is to get organized.

This could mean opening up a filing cabinet and putting all of your bills, statements, receipts, etc. in their appropriately labeled folder or it could also be something more complicated like setting up an online budgeting tool that tracks every purchase you make throughout the month.

The key is to find something that works for you and stick with it.

Pay yourself first

One of the most important things to remember is that if you want anything in life, then you need to pay yourself first.

This means putting money away into your savings account or retirement fund before spending any other money on bills or anything else.

This will help you improve your overall financial situation and it can also be fun to watch the balances grow over time, especially if you are targeting a specific savings goal like buying a house or retiring early.

Use cash whenever possible

Another great way to save money is by using cash instead of your debit or credit card.

This could mean only taking out a certain amount of cash each week and then not going over that limit, or it could also mean avoiding using your cards altogether and only spending the money that is in your wallet.

Either way, this will help you avoid overspending and it will also make you more aware of how much money is actually coming in each month since cash doesn't create a paper trail as your credit card statement does.

Invest in things you understand

When you invest your money you should only invest in things you understand. Don't try to invest in what's popular and get caught in get-rich-quick-schemes.

This approach will help you avoid losing your money and being frustrated with investing.

Final Words - 25 Dave Ramsey Finance Tips

These 25 Dave Ramsey finance tips will help you become a savvy spender and grow your savings. These insights are designed to help you pay off debt, budget more effectively, invest wisely, save money for emergencies, and so much more.

No matter what stage of life someone is in or how they currently feel about their financial situation, these principles can be applied to improve their current situation as well as the future outlooks.

If all of this sounds intimidating and you want guidance from an expert on which principles should be prioritized first based on your unique circumstances, let us know!

What are some of your favorite tips? Let us know in the comments below.

Article written by Neiko Johnson
Neiko is a personal finance expert and Co-founder of Secret to Finance. Along with his wife Alexis, they learned how to get out of debt and paid off $400,000 in 4 years.

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