10 Dave Ramsey Tips For Saving Money And Living Your Best Life

Must-know Dave Ramsey tips for saving money and to stop being broke in 2021. If you’re sick and tired of feeling sick and tired about your financial situation, keep on reading!

Since it’s the start of a new year, many people will be focusing more on 2 things – getting fit and healthier and getting your budget in shape to stop being broke in 2021! There’s no better teacher on financial fitness than the outspoken financial genius Dave Ramsey.

Dave Ramsey became a self-made millionaire at just 26 years old, but then lost it all and filed for bankruptcy at only 28. This is what makes him such a good teacher on money, he has walked in your shoes, he has been broke and gotten out of that situation.

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Dave is also the author of the best selling Total Money Makeover, which has been the most powerful personal finance book I have ever read and is a must-read to anyone who is struggling with money.

Now, if you don’t have the time to indulge in his book, I have gathered the 10 best Dave Ramsey tips for saving money and living your best life, which you can quickly apply to your own life to finally get out of debt and to get ahead financially.

Best Dave Ramsey Tips For Saving Money

1. You need an emergency fund

Being without an emergency fund is an emergency! In fact, this is so important that saving up a $1000 emergency fund is actually Baby step #1 in his #7 step wealth guide. This guarantees you won’t go into debt for the unexpected things in life like an emergency medical bill, dental work or work on your car.

Don’t dig into your emergency fund unless, it’s an – you guessed it, emergency! Sell items around the house, take on a weekend job or however else you can earn money to work your way to the $1000 ASAP.

2. Act your wage, not your age

It’s not about how much you make it’s about how much you spend. Never spend more than you earn. That’s a quick trip to financial strain.

It can be tempting to try to keep up with the Joneses, but the Joneses are broke. It’s not wise to follow the average person’s lifestyle because that won’t get you anywhere but deeper into debt.

3. If you can’t afford to pay cash, you can’t afford it

Only buy stuff you can afford and if you can’t afford to pay cash for your car, furniture, clothes, phone or tv, you can’t afford it. It makes no sense to go into debt for any of those items. The only kind of debt that is a good debt is your mortgage, given you aren’t buying ‘more house than you can afford’.

4. Cut up your credit cards

People who tell you that they are making money off having credit cards are usually wrong. Do you really think you can cheat the big banks and make it out on top by paying your cards off in full every month and getting air miles or other benefits from them?

Credit cards should only be owned by extremely in control and strict individuals which is unfortunately only a very small percentage of people in this world. So unless you are one of those rare people who never misses a payment, cut those credit cards up!

5. Sell your expensive car and buy a cheap car in cash

According to the balance, an average American spent $479 per month on their car payment in 2017. Just think how much quicker you would be able to pay off your debt if you have an extra $479 to pay down your debt every month!

He suggests buying a cheap $2000 car in cash after selling your expensive one and putting the money you would have put towards your payments aside and saving it up until you have enough money in cash to buy the car you really want.

That way you can avoid paying all those extra sneaky fees and having to deal with a bank and get the satisfaction of knowing you can actually afford your car that you love so much. You can often get a much better deal on a car when paying in cash too!

6. Don’t take advice from broke people

Ignore your friends who try to tell you how you need to live. Unless your friends are millionaires, don’t take any financial advice from them. You need to live like no one else so later on in life, you can live like no one else!

7. Give up your expensive hobbies

If you are in debt, it’s time to give up your expensive hobbies – you can’t afford them! Spending $100 a month on your gym contract? Cancel it! Go for a run in the park – it’s free. While you’re at it, stop all your other expensive hobbies, until you get out of debt. Here’s a list of 11 hobbies that actually make you money that are worth trying out!

8. Make a list before going to the shops

It is so easy to overspend at the grocery store if you have no list with you. Make a list and stick to it! If you feel like you are too tempted to make impulse purchases while at the store, try getting your groceries delivered to you or picking them up at the store after they have been packed up by the staff.

9. Ask your boss for a raise

You’d be surprised how many people miss out on a pay raise, just because they never ask for one. The worst thing that can happen is your boss saying ‘No’. Think of the reasons why you believe you are worth more than what they are currently paying you and present them to your boss.

10. Increase your income

Dave is an advocate for working more to get out of debt quicker. Get a weekend job waiting tables, delivering pizzas, babysitting, walking other peoples dogs for money, driving for Uber or doing online surveys for extra money. If you are in debt and broke, there’s no time for watching tv and for resting. Get to work!