Best-selling author and syndicated radio host Dave Ramsey has been preaching his unique brand of personal finance gospel since 1992.
Find Out: 9 Strategies Americans Are Using To Minimize the Taxes They Pay on Retirement Savings
Discover More: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
Over more than three decades, the Ramsey Solutions founder has doled out countless tips on spending less, saving more, avoiding debt and building the habits needed for building wealth.
Here are his top 100 money tips for folks over the years.
Get on a Budget
In a post on his Ramsey Solutions site, he noted, “If you’re not budgeting, you’re basically just winging it every month, just hoping there’s enough money to keep the lights on and food on the table. Believe me, that doesn’t fly very long!”
Check Out: You Can Get These 3 Debts Canceled Forever
Learn More: Owe Money to the IRS? Most People Don’t Realize They Should Do This One Thing
The following four tips spell out Ramsey’s step-by-step guide to building a winning budget.
Wealthy people know the best money secrets. Learn how to copy them.
List Your Income
Step one is to calculate how much is coming in.
Ramsey’s site wrote, “Start by listing the money you plan on getting during that month: normal paychecks (for you and your spouse) and anything extra from a garage sale, freelance job or side hustle.”
Be Aware: This Is the One Type of Debt That ‘Terrifies’ Dave Ramsey
List Your Expenses
In terms of expenses, Ramsey says to start with what he calls your budget’s “four walls”: food, utilities, shelter and transportation.
“Then list out all the other monthly expenses, starting with essentials and ending with fun stuff,” his site wrote. “We’re talking debt, insurance, savings, entertainment and any personal spending.”
Subtract Your Expenses From Your Income
The third step is to subtract the number from Step 2 from the number from Step 1.
“What if you get a negative number?” Ramsey’s site wrote. “Hey — it’ll be okay. But you will need to cut back on the extras or pick up extra work to cover it.”
Track Your Transactions
Step 4 is to list every movement of money throughout the month.
“This helps you stay accountable to yourself, your spouse (if you’re married), and your money!” Ramsey’s site wrote. “You aren’t hiding spending from anyone. And you won’t overspend because you’ll know what’s left in every budget line.”
With the four steps to budget-building out of the way, Ramsey offers the following 16 suggestions for finding the budgeting style that’s perfect for you and sticking with it for the long term.
Budget to Zero at the Start of the Month
Ramsey believes so strongly in the power of budgeting that he dedicated an entire page to tips on getting it right. The first is to start the month by budgeting to zero.
“This means before the month even starts, you’re making a plan and giving every dollar a name,” his site wrote. “This is what we call a zero-based budget. Now that doesn’t mean you have zero dollars in your bank account. (Leave a buffer of a few hundred dollars.) It just means your income minus all your expenses equals zero.”
Read Next: Top 7 Countries with Zero Income Tax
Build Your Budget Together
Ramsey believes that an accountability partner can be the key to success.
“If you’re single, find someone who will cheer you on — and help you stick to your goals!” his site wrote. “If you’re married, sit down once a month and have a family budgeting night. Make it fun! Grab some of your favorite snacks and put on a good playlist.”
Graduate to a Budgeting App
Ramsey says most people can benefit from bringing their budget into the digital age by moving from pen and paper to an app.
His site wrote, “You can focus on planning a budget and tracking your spending from the comfort of your smartphone! Plus, you can sync up your budget with your spouse, which is great for keeping that communication open.”
Consider EveryDollar as Your Go-To App
If you’re not sure which program to use, naturally, Ramsey suggests his own EveryDollar app, which is included in a Ramsey+ subscription.
His site wrote, “Just add in your expenses as you spend, or upgrade to the premium version for a seamless tracking experience that lets you sync with your bank account. Then all you have to do is drag and drop. Boom. Tracking done.”
Put the Most Important Categories First
Another of Ramsey’s keys to budgeting success is prioritization.
His site wrote, “Giving and saving are at the top of the list, and then comes the four walls: food, utilities, shelter and transportation. Once your true necessities are taken care of, you can fill in the rest of the categories in your budget.”
Explore More: IRS Increases Gift and Estate Tax Exempt Limits — Here’s How Much You Can Give Without Paying
Remember That Every Month Is Different
Ramsey advises against setting your budget in stone and instead adjusting it to match the realities of each new billing cycle.
“Some months you’ll have to budget for things like back-to-school supplies or routine car maintenance,” his site wrote. “Other months you’ll be saving for things like vacations, birthdays and holidays.”
If Your Budget Needs Trimming, Then Trim
If last month’s budget reveals shortfalls, then don’t be afraid to cut back for a month or two.
“It might be time for some budget cuts in your life,” Ramsey’s site wrote. “If things are tight right now because of inflation or whatever reason, you can save money quickly by trimming your budget. Go from three streaming services to one, dine out less, and shop at discount clothing and grocery stores.”
Prioritize Debt in Your Budget
Ramsey says that if you have debt, you must make that your budget’s top priority.
“Use the debt snowball method and the seven baby steps to get rid of debt as fast as you can,” his site wrote (more on the seven baby steps shortly). “Attack it! Get mad at it! Stop letting debt rob you of the very thing that helps you win with money — your income.”
Destroy Your Credit Cards
One of Ramsey’s more controversial tips is never to use credit cards — and this is especially important while you’re climbing out of debt.
His site wrote, “Stop using them! Cut them up, shred them, or even make a craft project out of them! Whatever you do, get the temptation of more debt out of your life.”
Read Next: Trump-Era Tax Cuts Are Expiring — How Changes Will Impact Retirees
Build a Miscellaneous Line Into Your Budget
Ramsey believes that it’s crucial to make room for unexpected expenses every month.
“Label this as your miscellaneous line in your budget,” his site wrote. “That way when something comes up, you can cover it without taking away money you’ve already put somewhere else.”
Set Up Auto Pay
While it’s important to pay attention to your cash flow, Ramsey advises putting recurring bills on autopilot.
“Save time and stress by setting up auto drafts for a few of your bills,” his site wrote.
Set Goals
Budgeting involves discipline, and you’ll only maintain discipline if you have aspirations to keep you on the course.
Ramsey’s site wrote, “Whether you’re paying off student loans, building up your emergency fund, or paying off your mortgage, you need to focus on your why. What’s the reason you’re making these sacrifices?”
Track Your Progress
Setting goals is one thing. Achieving them requires you to celebrate successes and adjust to failures along the way.
“Speaking of goals, don’t set them up and forget about them,” Ramsey’s site wrote. “Keep tracking your progress.”
Find Out: The 7 Worst Things You Can Do If You Owe the IRS
Use Cash for Difficult Categories
Ramsey says that if you’re consistently overspending on a certain category, like groceries, for example, use the cash envelope system for that category to rein things in.
“Just go to the bank and pull out the cash amount you’ve budgeted for that category,” his site wrote. “Once the cash runs out, stop spending! It’s the ultimate accountability partner.”
Be Content and Stop Comparing
Ramsey believes everyone has more than they realize.
“Don’t compare your situation to anyone else’s,” his site wrote. “Comparison will not only rob you of your joy but also your paycheck. Keep moving forward and doing what’s right for your paycheck, your goals and your life!”
Cut Yourself Some Slack
Finally, Ramsey’s site wrote, “One of the key things to remember about budgeting is this: It usually takes three to four months to get a handle on it. Your budget won’t be perfect the first time or the second. But you’ll get there! So give yourself some grace as you go. Learn from your mistakes — and keep pushing forward!”
Take Inventory
Ramsey’s No. 1 tip is to get on a budget, but that can’t happen until you confront your situation.
His site wrote, “It’s time to take inventory, folks! Get out every unpaid bill, every recurring monthly (or quarterly or yearly) bill, all of your debts, credit cards, auto loans… everything. Leave no bill unturned. You want to know exactly what you’re paying for every single month and why.”
Try This: Billionaires vs. the Middle Class: Who Pays More in Taxes?
Track Your Spending
Ramsey says budgeting is only the first step to financial success.
“Step two is a little something called tracking,” his site wrote. “Believe it or not, tracking your expenses is just as important as doing the budget. If you just put some numbers down but never actually track what you’re spending throughout the month, how will you know if you’re staying on track? You won’t. Don’t let your overdrafted bank account be the only reason you know you’ve busted the budget.”
Build an Emergency Fund
Ramsey believes an emergency fund is one of the keys to financial health because, without one, you’ll go into debt to manage the inevitable crisis.
“An emergency fund turns life’s major emergencies into minor inconveniences,” his site wrote.
Take a First Baby Step
Most experts recommend saving at least three months’ salary for emergencies, but that’s just one of seven “baby steps” Ramsey outlined to make financial freedom more attainable.
The first is to bank a crucial four-figure sum on which you can build financial security.
“Save $1,000 for your starter emergency fund,” Ramsey’s site wrote.
Take a Second Baby Step
Ramsey’s site wrote that the second baby step is to “pay off all debt (except the house) using the debt snowball.”
Learn More: I’m a Self-Made Millionaire, but I Still Opt for the Budget Versions of These 6 Items
Take a Third Baby Step
The third baby step is to “save three to six months of expenses in a fully funded emergency fund.”
Take a Fourth Baby Step
The fourth baby step toward financial freedom is to “invest 15% of your household income in retirement.”
Take a Fifth Baby Step
Baby step No. 5 is to “save for your children’s college fund.”
Take a Sixth Baby Step
Ramsey’s second-to-last baby step is to “pay off your home early.”
Check Out: 6 Valuable Everyday Items You Should Never Throw Away
Take a Seventh Baby Step
The final of Ramsey’s seven baby steps is to “build wealth and give.”
Forget That Borrowing Is an Option
Ramsey thinks borrowing is the archnemesis of anyone striving for financial freedom.
“Decide right now that you’ll never use debt to manage your money again,” his site wrote. “Then kick it out of your life once and for all (and make sure it never comes back again).”
Reduce Spending Wherever You Can
Ramsey believes one key to eliminating debt is to cut out the overspending that so often makes it necessary.
“It will be hard at first, but as soon as you train your brain to stop spending at the drop of a hat, your wallet and your budget will see a huge difference,” his site wrote.
Boost Your Income
Cutting spending is one key to staying out of debt, according to Ramsey. The other is to earn more money through a side hustle, extra hours or a second job.
“All it takes is focus, hard work and the drive to kick up your money management game,” his site wrote. “I believe in you!”
Read More: 5 Unnecessary Bills You Should Stop Paying in 2024
Invest for Your Future
Ramsey urges everyone to start saving now for the day when they won’t be able to save any more.
“No matter how much or how little you have in your nest egg, there’s still time to turn things around,” his site wrote. “Whether you’re 24 or 54, it’s never too early or too late to start! Retirement is coming. You need to prepare for your golden years now.”
Be Generous
Ramsey says not to wait until you’re successful and wealthy to be generous, and instead to make giving part of your entire financial journey because those who give money are those who accumulate it.
“There’s no denying the connection between those who win with money and those who are generous,” Ramsey’s site wrote. “The two go hand in hand like peanut butter and jelly.”
Avoid DMPs
Companies offer debt management plans (DMPs) to help people work their way out of debt. Ramsey says you’re better off going it alone.
“If you’re in the deep end and don’t know where to turn, do not turn to a DMP,” his site wrote. “You’ll just end up frustrated and paying more in fees than you will to your actual debt. Just don’t do it. Remember, we don’t want to “manage” debt — we want to get rid of it!”
Push Yourself With a Savings Challenge
Ramsey recommends testing yourself to save a specific dollar amount by a specific deadline through the 100-envelope challenge — which will give you $5,050 in 100 days — or a similar savings self-contest.
Discover More: 7 Appliances Frugal Homeowners Steer Clear Of
Put Your Savings on Autopilot
Just as Ramsey suggests setting recurring bills to auto-draft, he also urges his followers to do the same with the most important bill of all — savings.
His blog stated, “Set up a direct deposit from each paycheck to your savings account. That way you don’t even think about the money you’re saving — you’re just saving.”
Follow a Meal Plan
Ramsey wants you to be as deliberate with your eating as you are with your money — and that’s because the former directly impacts the latter.
His blog said to start by taking inventory of what you have on hand in the fridge, analyzing your schedule, finding out what’s on sale and then picking recipes with the fewest ingredients. The last step is making a shopping list based only on the ingredients you need and sticking to it.
Never Let Leftovers Go To Waste
Be sure to turn last night’s leftovers into tomorrow’s lunch. If you wait too long, it will go bad and you’ll wind up throwing perfectly good food — and money — in the trash.
“Once you make a meal, don’t let what’s left after dinner die a slow and moldy death in a Tupperware coffin in your fridge,” his site wrote. “That wastes food and money.”
Trade Brown Bags for Lunch-Break Take-Out
Ramsey says you can save a fortune over time by bringing a bagged lunch to work instead of ordering take-out or stopping at a nearby deli, cafe or restaurant on your daily break.
“And stop giving your dollars to the vending machine or office snack shop throughout the day,” his site wrote.
For You: Nearly Half of Americans Struggle To Pay Their Utility Bills: 5 Ways To Save
Order Groceries Online
Ramsey believes blindly filling up a shopping cart with items in a grocery store leads to unpleasant surprises at the cash register.
“When you order your groceries online, you can track the total cost as you go,” his site wrote. “Then if you’re over budget, you can delete items from your virtual cart before you check out.”
Be Your Own Barista
Ramsey reiterates common personal finance advice by insisting that it pays to brew coffee at home.
His site wrote, “If you’re spending around $6 a day at your fave coffee shop, that adds up to $42 a week and around $180 a month. Instead, you could cut that expense down to around $25 a month by brewing your own coffee. Then put that $155 to work in other places in your budget!”
Never Let a BOGO Go Unclaimed
Two for the price of one is always a good deal in Ramsey’s mind.
“Stores with BOGO (buy one, get one) offers are basically begging you to save money,” his site wrote. “They’re setting out their best offers so you can swoop in and grab them. How about following this money-saving move?”
Buy Generic
Ramsey has long been an advocate of avoiding name-brand goods whenever a generic version provides the same quality at a lower price. Otherwise, Ramsey said you’re paying more for a fancy logo.
Check Out: I’m a Frugal Shopper: 4 Items I Always Buy Secondhand To Save Money
Cut Back on Memberships and Subscriptions
Ramsey believes that America is a nation of over-subscribers, where a glut of streaming services, gym memberships, app subscriptions, etc., hold countless people back from financial freedom. He recommends conducting an audit, being honest about which ones you need and eliminating the rest.
Choose Cash Rich Over House Poor
Buying more house than you need or can afford can tie up your wealth in equity that’s hard to access when what you really need is money in the bank.
“Yes, you need shelter,” Ramsey’s site wrote. “Yes, you want a nice place to live. But you don’t want to spend so much on your house that you can’t afford to make other money goals happen.”
Save Green by Going Green
An upfront investment in energy efficiency is worth the cost if it pays you back with lower bills.
“For example, you can save on home expenses by turning off the lights when you leave a room, buying light bulbs that have earned the Energy Star, buying a programmable thermostat, or washing your laundry in cold water instead of hot,” Ramsey’s site wrote. “Green changes like these can keep more green in your wallet.”
Kick the Disposable Habit
Ramsey recommends ditching anything that you perpetually throw away and then buying again like paper towels, single-use water bottles and sandwich bags. Instead, he said to opt for reusable alternatives.
Find Out: 5 Frugal Habits of Mark Cuban
DIY Whatever You Can
Ramsey advises never hiring someone to build or fix something if it’s a DIYable task.
Ramsey’s site wrote, “Don’t spend money on things you can make yourself.
Conserve Water
Ramsey is a big believer in increasing your savings by reducing your water consumption.
“Take quicker showers,” Ramsey’s site wrote. “Don’t run the dishwasher unless it’s full. And turn the tap off while you’re doing everyday things, like brushing your teeth or shampooing your hair. It’s another small habit that’s super simple and will add up to some serious savings.”
Consider Refinancing for a Shorter Mortgage Term
Ramsey advises against refinancing your mortgage unless you trade down for a shorter loan term.
“That usually results in a higher mortgage payment, but it also gives you a quicker payoff date,” his site wrote. “And that will save you thousands in the long run.”
Looking for a Good Workout or a Good Time? Get Outside
Ramsey recommends swapping out expensive exercise and entertainment choices for free alternatives like running, biking, hiking and stargazing.
Read Next: 10 Things Frugal People Always Buy at Yard Sales To Save Money
Cut the Cord
While countless people oversubscribe to too many media services, frugal consumers can save money by kicking their cable habit and streaming within reason.
Ramsey’s site wrote, “Look into YouTube, Hulu, Netflix or Amazon Prime Video. Try watching recently aired episodes online. You don’t have to jump back to medieval days where your only entertainment was watching the knights joust. Just trade that cable bill for a lower-priced — but still awesome — option.”
Get Creative With Free (or Cheap) Dates
Ramsey believes that date night doesn’t get better as the price for a good time with your partner goes up.
His site wrote, “Fill a picnic basket with popcorn, apples, an assortment of cheeses and chocolate (of course) — then take it on a fun hike. Bring home Chinese takeout and eat straight out of the boxes while streaming your favorite show. Browse the aisles of a used bookstore before grabbing coffee and dessert. Enjoy the quality company more than the cost.”
Download a Library App
Bookworms have no shortage of chances to spend money to satisfy their literary habit — but there’s another way.
Ramsey’s site wrote, “Libraries have officially joined the digital age. You no longer need to get off the couch, drive to your local library, and find a parking spot to check out a book. Library apps are becoming more popular — and they’re free! You can browse for the book you want, put a hold on it (if it’s not immediately available) and then check it out when the time is right. It’s super easy and won’t cost you a dime!”
Observe a Purchase Postponement Period
Ramsey knows that impulse buying is a budget buster.
His site wrote, “If you’re looking at a big purchase, spend time checking prices, weighing the pros and cons, and thinking over if you really need the thing before you buy it. Sure, you wanted that new, genuine leather, flannel-lined laptop case the moment you first laid eyes on it. But will you still want it six months from now?”
Explore More: Mark Cuban Reveals Why He Keeps a Strict Budget Everyday
Or Better Yet, Try a Short-Term Spending Freeze
Ramsey believes that one way to break the habit of excess spending is to challenge yourself not to purchase anything you don’t truly need for a set time so you can see how much you’re wasting on wants.
His site wrote, “If you want to really challenge yourself, go on a spending freeze. This can mean taking a ‘no spending day’ challenge or jumping into a ‘nothing but the essentials’ week — or month!”
Delete Your Shopping Apps
It’s much easier to honor self-imposed spending freezes and purchasing delays when you’re not surrounded by temptation, which is why Ramsey says to delete the shopping apps from your phone.
“With those apps, your thumbs can just tap-tap-tap things you don’t really even need into your cart and into your mailbox,” his site wrote. “But you’ll think twice before getting on the laptop to buy that new sweater if you’ve got to get up off the couch to make it happen.”
Clear Your Cookies
Another source of temptation is the personalized ads that seem to follow you wherever you go online — but you can do away with them, too.
“Clear your cookies on your browser so you get fewer targeted ads,” Ramsey’s site wrote.
Buy Used
Ramsey suggests saving money by buying used when a previously owned item is as good or nearly as good as an expensive new version.
“Use common sense on this,” his site wrote. “Don’t buy used tires, toothbrushes or tacos.”
Check Out: How To Earn $750 a Week in Passive Income
Factor Inflation Into Your Spending Plan
Anyone can complain about inflation, but Ramsey would rather you prepare for it, instead.
His site wrote, “Yes, inflation is tough. But you (and your budget) are tougher! So, adjust that budget for inflation, and you can stand up to those rising costs.”
Never Count on Someone Else To Pay Your Debts
Millions of student borrowers were given false hope that the government would forgive their college debt last year, only to have those hopes dashed in the end.
Ramsey saw it coming.
“If 2023 taught us anything, it’s that you can’t count on the government to forgive your student loans,” his site wrote. “Instead of setting yourself up for disappointment, make forgiveness your job!”
Beware of BNPL
Buy now, pay later services let you string purchases out into payments without a credit check — a tempting option that Ramsey advises against.
His site wrote, “Klarna, Afterpay, Affirm — the list of companies pushing these digital installment payment plans keeps growing. And they all have one goal in common: jumping on the trend to entice people to buy stuff they can’t afford with ‘easy payments.'”
If You Get Married, Unify Your Finances
Many couples keep their financial lives separate even after they tie the knot. Ramsey thinks it’s the wrong move.
His site wrote, “When you get married, the two become one. And that includes your finances! This means living with an ours attitude, not dividing income and bills and payments. All that division with your money can create division in your marriage. But when you work as a team — you’ll win faster financially.”
Be Aware: 29 Best Games That Pay Real Money in 2024
If You’re Ready To Buy a Home, Buy a Home
Ramsey believes that trying to time the housing market is as futile as trying to time the stock market. If you have the cash, you’re debt-free, you have an emergency fund, you can pay the closing costs and all your other ducks are in a row, “Don’t wait on rates or prices to drop,” his site wrote.
Never Stop Investing
When investing, consistency is key no matter the market’s behavior.
“Ride the ups and the downs,” Ramsey’s site wrote. “Keep investing.”
Choose State Parks Over Theme Parks
When fair weather returns, theme parks beckon — but they come with triple-digit price tags for a single day. The good news is that you can have just as much fun for free or close to it.
“Amusem*nt parks are definitely fun, but you can save a lot of money by visiting a state park in the great outdoors instead,” Ramsey’s site wrote. “Many parks are free or only charge a small entry fee per carload.”
Turn Unused Stuff Into Cash
Spring is the season for converting clutter into cash — and Ramsey says you should start planning now.
“Truth is, we all have a ton of junk we haven’t used in years,” his site wrote. “So now’s the time to hop on that spring-cleaning train, dig through the attic, and start planning for a garage sale. And if you don’t feel like setting up tables and sitting in the heat all day, sell your stuff online!”
Read More: Tony Robbins: 10 Passive Income Ideas To Build Your Fortune
It’s Your Car — Wash It Yourself
A hose, bucket and sponge are not nearly as convenient as the local car wash, but according to Ramsey’s site, “Skipping the car wash six times this summer could easily save you close to $100.”
Turn Down Your AC in the Summer
The cool air that comes out of your AC on hot days might as well be blowing dollar bills out the window. That’s why Ramsey says to close interior doors to unused rooms when the AC is running, close your curtains and blinds during the day and caulk your windows and doors to prevent thermal transfer.
Save Big Purchases for Annual Tax Holidays
Some states offer end-of-summer reprieves from sales tax to make back-to-school shopping easier for families. Ramsey sees a golden opportunity.
“It’s pretty outrageous how much taxes can add to your total price tag,” his site wrote. “So if you can swing it, just hold off until tax-free weekend to make those big purchases.”
Use Coupons and Cash-Back Apps
Ramsey is always against paying full price when a coupon could lower your bill — and he wants everyone to cash in on cash back.
“Your local grocery store probably has digital coupons through their app,” his site wrote. “And there are about a million different cash-back apps out there that give you rebates for buying a certain brand of orange juice or tomato sauce. Then, after you rack up enough rebates, you can cash them out. It’s a pretty good gig.”
Discover More: Barbara Corcoran’s 5 Best Passive Income Ideas
Never Pay Full Price for a Vacation
Ramsey isn’t against going on vacation, he’s just against wasting money when you do.
His site wrote, “While you’re planning your summer vacation, you’re bound to find some great deals on hotels, flights and tourist hot spots if you do a little bit of digging. Those places will do all they can to try to seek out summer travelers, which means many of them offer big-time savings online. Search sites like Travelocity, Airbnb and Kayak to see how much you can save.”
Remove Food Stops From Your Road Trip Plans
Road trips are one of the great joys of spring, summer and fall, and they can be a cost-effective way to travel — but not if you have to reach for your wallet every time your belly growls.
“Don’t fall into the trap of stopping for snacks at a convenience store or fast-food restaurant while you’re on the road,” Ramsey’s site wrote. “Instead, head to your local grocery store or dollar store and stock up on snacks ahead of time.”
Treat Dining Out as the Luxury It Has Become
Food away from home outpaced inflation more than nearly any other category over the last few years, and has cooled slower than overall prices as inflation subsided.
“Save going out to eat for special occasions,” Ramsey’s site wrote, adding that the average family can save $200 per month by treating dining out as a luxury.
Find the Right Home for Your Emergency Fund
Ramsey’s site wrote that “you want to be able to access your money quickly and easily — but not too easily.”
Therefore, he suggests parking your emergency fund in a money market account instead of a savings account.
Learn More: 8 Ways To Make $200 (or More) a Day Working From Home
Start a Sinking Fund for Planned Purchases
Unlike an emergency fund, which you save for the unexpected, money in a sinking fund is for the expenditures you can predict.
Ramsey’s site offered the following example: “The new couch you’ve been eyeing is $600, so if you start setting aside $200 for the next three months, you’ll have enough to replace your old one.”
Pursue a Career With Your Future in Mind
Ramsey believes that your income is your most valuable wealth-building asset, which is why your career choice is so critically important.
His site wrote, “Don’t stay stuck at a dead-end job, especially if it’s making you miserable. Find a job you enjoy that also supports your goals of financial security so you can enjoy the journey.”
Live Below Your Means
Even the world’s biggest income won’t make you rich if you spend more than you earn.
“In other words, you’ve got to live on less than you make,” Ramsey’s site wrote.
Prioritize Your Health
Ramsey points out that diet and exercise are as important to your financial life as they are to your health.
His site wrote, “The annual cost of treating certain diseases caused by poor diet is about $300 per person, or $50 billion nationally. And about 1 in 10 adults in the U.S. now owe some kind of medical debt — that’s 23 million Americans with medical debt totaling close to $200 billion.”
Check Out: 6 Cheap Hobbies To Start in 2024 That Will Make You Extra Money
Make Extra Mortgage Payments Whenever You Can
According to one of Ramsey’s blog posts, “There’s a reason the average millionaire pays off their house in about 10 years. Think about it: What would your life look like without a mortgage payment? When you own your house (not the bank or your mortgage lender), the grass under your feet just feels different. That is freedom — financial freedom.”
Get the Right Insurance Policies in Place
Ramsey believes an investment in the right insurance policies can prevent financial catastrophe later down the road.
“When you look at sports teams that win championships, they don’t just focus on offense — they have a strong defense too,” his site wrote. “That’s what insurance is: It’s the defensive strategy that protects your finances.”
Get Help With Your Finances
Like insurance, Ramsey believes the advice of a money professional is an investment that can pay for itself many times over.
His site wrote, “Listen, you’ve worked hard to lay the right foundation, so don’t leave your financial future up to chance! You need the expertise of a financial advisor to help you navigate your investment options and brave the ups and downs of the stock market.”
Choose Time Over Money During the Holidays
When the seasons change once more, you’ll have countless opportunities to overspend — and also plenty to save. Your holiday budget will thank you when you decide that shared time is better than purchased merchandise.
Ramsey’s site wrote, “For some people, the thought of spending time together really is better than the joy of a physical gift.”
Find Out: How To Generate Passive Income With Just $1,000
Avoid Obligatory Gift-Giving Traditions
During the holidays, you’ll have more to spend on your loved ones and more to save for yourself if you politely opt out of gift-giving traditions based on social pressure.
Ramsey’s site wrote, “Here’s a hot Christmas tip: Put an end to the white elephant or junk-for-junk gift exchanges at your work, small group or book club. Christmas is expensive enough without these social pressures. Be kind, but just say no (thank you).”
Embrace Regifting
While regifting is frowned upon in many circles, Ramsey is all for it.
“Seriously, it’s okay to regift!” his site wrote. “But there are ground rules. You don’t want to hand Dad the motivational poster your great-aunt gave you. Mostly because she’s his aunt too. But the brand-new slow cooker your well-meaning in-laws gave you when you already have two could easily be regifted to your newlywed bestie.”
Write a Will
Ramsey has long advocated for planning for the inevitable, no matter how unpleasant it might be.
“We’re just going to come out and say it: You need a will,” his site wrote. “It’s part of getting your personal finances in order and part of being a responsible adult — not a fun part, but an important part.”
Don’t Spend More Than 25% of Your Pay on Housing
Common personal finance wisdom says to cap housing costs at 30% of your monthly income. Ramsey thinks that’s too much.
“Don’t spend more than 25% of your monthly take-home pay on housing costs,” his site wrote.
Explore More: ‘Rich Dad’ Robert Kiyosaki: Buy These 8 Assets To Get So Rich You Can Quit Your Job Forever
Cut the Standard 30-Year Mortgage in Half
Most mortgages span three decades, which Ramsey says is double the financially prudent timeline.
“Choose a 15-year fixed-rate conventional loan if you’re going to get a mortgage,” his site wrote. “You’ll literally save thousands overall compared to expensive FHA, VA and 30-year loans.”
If You Haven’t Saved a 20% Down Payment, You’re Not Ready To Buy
You might be able to buy a home with less than 20% down, but Ramsey thinks you shouldn’t even if you can — especially considering the cost of private mortgage insurance.
His site wrote, “First-time buyers can save a smaller down payment like 5% – 10% — but then you will get stuck with PMI.”
Protect Your Identity
In the digital age, your personal data is currency — protect yours as you would your money.
Ramsey’s site wrote, “Identity theft can happen to anyone and can take years to clean up on your own. You need identity theft protection! Make sure you get a plan that offers both protection and recovery services.”
Employer Matches Are Free Money — Take Every Dollar
Ramsey is a big believer in the wealth-building power of an employer-based retirement fund, particularly when the boss kicks in for your nest egg.
“See if your employer offers a 401(k) or 403(b) with a match,” his site wrote. “If they do, invest in your 401(k) up to the employer match to take advantage of that free money!”
Read More: I Earn Over $30K a Week in Semi-Passive Income on Amazon – Here’s How
Pile Onto Pre-Tax Savings With a Roth Account
If your company doesn’t offer a 401(k) — or even if it does — you can double up with an account that builds your nest egg with after-tax contributions.
Ramsey’s site wrote, “If you already have a traditional 401(k) through work (meaning you fund it with pretax money), the next move is to open a Roth IRA — which you fund with after-tax dollars, allowing your growth and withdrawals down the road to be tax-free!”
If You Get in Trouble, Talk To Your Creditors
Ramsey is against debt, but if you’ve already borrowed and can’t make your payments, never ignore the problem.
Ramsey’s site wrote, “Talk to your creditors. Work out a realistic repayment plan rather than ignoring the issue.”
Treat Bankruptcy as a Last Resort
The overwhelming stress of being in default leads some people to view bankruptcy as their only option when they still have other paths out of trouble. Ramsey wants you to stay in the pocket.
“Most people who think they’re bankrupt are actually just scared,” his site wrote. “Fight the fear, and treat bankruptcy as a last resort.”
Don’t Let Your Love for Your Children Lead To Overspending
Ramsey does not believe that material purchases enhance the parent/child relationship.
“Emotions have a way of directing our spending behavior,” his site wrote. “When it comes to our kids, guilt is a biggie. Overcome emotional spending. Don’t put anything above your family’s financial foundation.”
Trending Now: How To Make Passive Income Just By Moving Money In These Ways
Treat Adult Children Like Adults
Although it’s best to instill lessons of financial responsibility when children are young, you still have a chance to help them evolve into responsible adults when they’re grown — especially if they live under your roof.
“It won’t hurt your adult children to pay rent,” Ramsey’s site wrote. “It may actually inspire them to move out.”
Don’t Manufacture Emergencies
Finally, Ramsey reiterates the importance of emergency funds by stressing the importance of not finding excuses to dip into them by turning everything into an emergency.
His site wrote, “Understand what a true emergency is — it’s something unexpected, necessary and urgent. Christmas is not an emergency.”
More From GOBankingRates
In Less Than a Decade, You Won't Be Able To Afford Homes in These 20 Arizona ZIP Codes
These 10 Used Cars Will Last Longer Than an Average New Vehicle
Trying to Build Your Savings? Make Sure Your Account Does These 6 Things
5 Myths About Debt That Nobody Should Believe in 2024
This article originally appeared on GOBankingRates.com: 100 Top Money Tips From Dave Ramsey Over the Years
