Take Control of Your Finances With These 23 Dave Ramsey Tips
Managing your money can feel overwhelming—especially if you’re dealing with past mistakes or bad habits. But with the right approach, it can also be incredibly empowering. Financial expert Dave Ramsey knows this firsthand. After climbing out of serious debt himself, he’s helped countless others do the same.
His practical advice can transform your financial life, moving you from living paycheck-to-paycheck to building real security. Here are 23 of his best tips to get you started.
1. Make a Budget (and Stick to It)
- Budgeting gives you control over your money instead of letting it control you.
- Use tools like Ramsey’s EveryDollar app to track spending weekly/monthly.
- A clear budget helps you reach goals without derailing progress.
2. Build a $1,000 Emergency Fund
- Save for real emergencies (car repairs, medical bills—not birthdays).
- This prevents falling back into debt when unexpected costs arise.
3. Use the Debt Snowball Method
- Pay off smallest debts first, then roll payments into larger ones.
- The quick wins build momentum to tackle bigger balances.
4. Save 3–6 Months of Living Expenses
- After clearing debt, build a bigger safety net for job loss or health crises.
5. Do “Plastic Surgery” (Cut Up Credit Cards)
- Switching to cash-only spending keeps debt from creeping back.
- You’ll spend more mindfully when you see money leaving your wallet.
6. Shop Smart: Lists & Generic Brands
- Plan meals ahead and stick to a grocery list.
- Opt for store brands—they’re often just as good as name brands.
7. Cancel Unused Subscriptions
- Gym memberships, streaming services, etc. add up fast.
- Pause non-essentials until debts are paid.
8. Only Buy What You Can Afford in Cash
- Borrow or rent items for short-term needs instead of financing.
- If you must buy, save up first—no new debt!
9. Pack Lunches & Brew Coffee at Home
- Daily takeout and coffee breaks drain your budget.
- This temporary sacrifice speeds up debt payoff.
10. Get Essential Insurance Coverage
- Protect yourself from financial disasters with:
- Health, auto, and life insurance
- Long-term disability coverage
- Homeowners/renters insurance
11. Buy Used Cars With Cash
- Avoid leases and loans—save up and pay upfront.
- This frees up money for other financial goals.
12. Unsubscribe From Tempting Emails
- Retail promotions tempt you to spend unnecessarily.
- Silence the noise while you focus on debt freedom.
13. Invest 15% for Retirement
- After building emergency savings, prioritize retirement.
- Use Roth IRAs or 401(k)s—increase contributions if starting late.
14. Start a Side Hustle
- Freelancing, reselling, or gig work boosts income.
- Extra cash accelerates debt payoff and savings.
15. Learn About Money Management
- Take financial courses (like Ramsey’s Financial Peace University).
- Read books or use employer-offered resources.
16. Coupon Wisely
- Only clip coupons for items you already buy.
- Avoid buying unnecessary things just because they’re on sale.
17. Save on Kids’ Clothes
- Shop secondhand or hand down outfits between siblings.
- Kids outgrow clothes quickly—don’t overspend.
18. Ditch Cable TV
- Streaming services are cheaper (or free at the library!).
- Cutting cable saves $50–$150/month.
19. Cook at Home More
- Restaurant meals strain your budget.
- Host potlucks or game nights instead of dining out.
20. Borrow Movies & Books
- Libraries offer free entertainment—no theater tickets needed.
21. Practice Saying “No”
- Skip impulse buys by pausing before spending.
- This simple habit protects your financial progress.
22. Pick Low-Cost Hobbies
- Swap expensive pastimes for hiking, reading, or DIY projects.
23. Teach Kids Budgeting Early
- Involve them in saving/spending decisions.
- Helps them develop smart money habits young.
24. Audit Your Spending
- Review bank statements for hidden expenses.
- Cut frivolous spending (e.g., Target runs, brunch splurges).
TL;DR: Small changes add up. Focus on needs, ditch debt, and build savings to create lasting financial freedom.
