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If you say you haven’t come across Dave Ramsey while you search for the perfect way to Financial Freedom, I’ll be stunned.
Dave Ramsey is The Guru when it comes to managing your finances and learning to save money and get rid of debt. You can easily call him the king of Personal Finance!
If Dave Ramsey is so good and has all the resources, then why am I even writing this article? Why can’t you just go to his blog and read the article there?
That’s because there’s a lot of content on his platform! A lot!
So I’ve accumulated the best tips of Dave Ramsey in an article so that you can step up your personal finance game by learning from the Best in the industry – No not me, Dave Ramsey.
12 Dave Ramsey Tips Worth A Million Dollars
1. Use Cash
Every time you pay anything other than good old cash, you run into the problem of being unable to pay the debt leading to high-interest rate payments.
Paying cash can be smart as it can keep you in check of your cash at hand, thus maintaining your expenses and not falling into debt at all.
Also if you use cash, worrying about your credit score won’t matter at all, cause if you don’t use credit your score will not be required.
2. Your Old Phone works Fine
This is tough, I get it! Especially if you’re a tech lover like me. The phone tech industry is growing rapidly with new and improved modifications and designs that look and feel amazing.
You buy a good phone today and in a few months, your phone features are old. Dave Ramsey says to avoid falling in this trap. As long as you can text your family and friends and call them, you don’t need to upgrade to a new phone.
We see this with the iPhone market, where as soon as a new iPhone comes to market, almost 60% upgrade to the latest and greatest. They’re doing a disservice to themselves by wasting money.
If you can’t call or text with it, try doing a complete repair to the phone. It will cost you a bit but then you can use your phone easily for an additional year or two.
Sage Tip: If you’re buying, choose an older model or a refurbished phone to get a new phone at a lower price.
3. Be Debt-free
One thing that may keep you up all night is not being able to make debt payments. Make regular debt payments, try to pay more if you can.
Make a good budget so that you can free up some money to put towards monthly payments.
Try your best to get rid of debt soon and you’ll have a much happier life, a life with no stress and no debt!
4. Don’t Use Credit Cards
Paying $12 or Receiving $1 – What’s better? When you buy something for $100 you get $1 as reward points but its debt that you have to pay in the future.
If you don’t pay the amount, you’ll have to pay about $12 as interest on outstanding credit card payment. That’s how credit card companies make so much money.
If you have a few cards, cut them and throw them away. That will be the best decision you’ll ever take.
Credit card companies know that 3/5 individuals who use a credit card won’t be able to repay on time thus paying extremely high interest. If you want to waste money, you might as well try your chances at the lottery, you may win some cash!
5. Have an Emergency Fund
Is it okay if you aren’t provided with a parachute when there’s a plane failure and the only way to survive is to use a parachute? It’s not okay, right!
In the same way, if all your money is wasted on wants, your savings are zero, how exactly will you survive? That’s why making an emergency fund is the best way to ensure you safeguard your future.
If you lose all your money tomorrow, you’re fired from your job, you have a medical emergency, your family needs urgent cash – your Emergency Fund will come to the rescue.
An emergency fund is a separate account created by putting aside a specific amount every month to ensure that during any financial crisis, the money saved here will help you stay happy and give your protection.
6. Say Bye-Bye to New Cars
The title should have been “Never Buy Cars”, but I settled for this. Why do you want a car? Do you really really need a car? Every city has a great public transportation facility which is much cheaper than the cost of a car.
If not that, you could always use Uber or Ola to drive to work or any place you wish. I’ve seen so many people who have a car and yet use Uber to travel anywhere they go.
Their car is always in the garage catching rust while companies like Uber make a lot of money. Plus if you do a cost analysis, riding daily through uber will still be cheaper than buying a car, filling up petrol, and ensuring you do its maintenance.
If you’re a millionaire and have ample money to spend, sure buy a car, if not – don’t waste your precious money and depreciate its value. Money, when invested, should be appreciated whereas the value of a car depreciates over time.
But if you still want one, go for a second-hand car, it’s much cheaper.
7. Increase your Monthly Income
Saving money and frugal living can get you a long way, but I’ve said this time and again – You can only save money you have. To save more, you need to make more.
I’ve written a couple of articles on making money like
- How to Make Money on Fiverr
- 6 Super easy Weekend Jobs for Extra Income
- 5 Great Business Ideas for Millennials
- 26 Side Hustles you’ll be Crazy To Miss
- 4 Best Ways to Make Money Online (2021)
Initially, you may make little to no money but consistently putting effort will give you great results. You can also start selling off unused stuff.
Whatever it may be, choose a way to make money and get started on growing it to make money!
8. Buy a Home you can Afford
Whether to rent or to buy is a debate, but home plays key importance in everyone’s life.
So if you decide to buy a home, make sure you don’t go too overboard with the property value.
The higher the debt amount, the more the interest charged by banks, and the more difficult it will be for you to repay your debt entirely.
Sage Tip: A good thumb rule is to keep your housing expenses less than 30% of your net income (income after deducting tax = net income).
Once you buy a house you can’t afford, your overall household expenses also increase which kills your savings and investments.
Don’t bother spending a fortune on your new home.
After all, it’s not how big or how lavish your house looks, it’s the great memories you create there that matter.
9. Check out for Freebies (Offers)
Freebies have a special place in our hearts, don’t they! That’s why anytime you get an opportunity to grab a freebie, take it; It’s a steal! Dave Ramsey suggests that we should save money and also collect freebies.
If we observe closely almost every company gives their customers some sort of freebies, you have to pay attention, google up a bit and bam get your free stuff! Not only that but, you can also get free things from your family, be it old furniture or a dining table or a refurbished phone; if it works, it’s a steal.
Don’t feel ashamed to take it, if you don’t, you’re causing yourself loads of financial problems.
Here are two freebies for you from me!
- The 8 Step Method To Save Money For Millennials.
- Free Monthly Budget Worksheet To track Income and Expenses.
10. Avoid Branded Stuff
Branded stuff, you say! I’m sure Nike, Adidas, Gucci, Ralph Lauren, Prada are the best things money could buy and they look stunning where you wear them but it’s too pricey.
These famous brands charge 10-20 times more than what they should charge solely because of their brand name. These are a total rip-off, especially if saving money and financial freedom is your ideal goal.
11. Eat Outside Rarely
Restaurants are getting expensive day by day. The cost of fine dining is extremely high today. It’s like you either eat dinner outside at a great restaurant or a full daythe of four-course home-cooked meals! Let’s face it, eating outside is the best thing that can ever happen to you (if you’re a foodie), but it’s expensive.
Instead of avoiding the delicious burgers, set a specific amount that you’re comfortable with each month and spend that for eating outside.
Sage Tip: Learn to cook scrumptious food at home, so outside food won’t be as tempting as it usually is. Use YouTube to learn cooking.
12. Bonus Tip
The Total Money Makeover is written by Dave Ramsey and is a must-book read.
In this book, Dave gives you some great tricks and strategies on frugal living and budgeting in the correct way.
If you think Dave Ramsey’s book is a get-rich-quick scheme you’re mistaken, go find another book for that. He teaches you exactly how to get work done.
You’ll learn about saving money, creating funds for emergencies, investing money and paying off all your debt quickly in the smartest way possible.
He also focuses on the need to have a solid blueprint to getting rid of all our debt and the best part? Ramsey gives you the blueprint to do that! That’s what makes this book a perfect steal.
Why should you read this book?
- To learn to get rid of all your debt fast
- To understand how to manage your money wisely
- Dave Ramsey is a legend when it comes to debt and personal finance.
So do you Read, Watch and Hear Dave Ramsey to gain immense knowledge? Let me know down in the comments below.
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