12 Incredible Dave Ramsey Secrets to Help you Save Money

If you made $250,000 a year at age 26, what would you do with it? Would you save money if you earned that much? What would you do if you lost everything after a couple of years? I do not know what you would do but the thought of it scares me. Do people really suffer such fate? Yes, this is Dave Ramsey’s story. In trying to get back to his feet after losing it all, he realised that the solution to regaining control of his finances was right before him- managing his character and response to issues of money.

Dave Ramsey is one of the best people in the world to give financial advice because he has been to the bottom and back. He has interacted with rich people on money and has experienced the world of money and how it works.

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If you want to get out of debt, save money and be empowered, this is the guy you should be listening to. Good thing is, Dave Ramsey has documented a straight-forward game plan to transform your money habits in his New York Times Bestseller The Total Money Makeover. Also, if you are unsure about how to manage money, I am convinced you will love his book, Complete Guide to Money.

Let’s head over to why you are here.

If you are looking for the best ways to save money and put your finances in a better place, these 12 tips by Dave Ramsey will help you.

1.  Automated Savings

You can set your account for a percentage of your salary or payments to be deducted into a savings account. This may reduce the money you get on-hand, but it is a smart thing to do. Automated savings help you save money in a way you may not even realise. You reap its benefits in the long run.

2.  Get rid of debt

Is your debt preventing you from saving money? The best way to start saving money is to make sure you get out of debt as soon as you can. You can start by adjusting your lifestyle such as giving up luxuries and other things you can do without.

Dave suggests what he calls the debt snowball, a method to help you save money. This debt reduction strategy helps you pay off your debts in order, from the smallest to the largest. Whatever you do, get rid of debt if you really want to save money and have an amazing life.

3.  Don’t get carried away by brand names

This tip from Dave Ramsey is one of my favourites. I know that sometimes there is a good feeling associated with using products from popular brands including designer outfits and more. However, it is important to buy generic products if you want to save money because they cause far less than their brand names.

4.  Make budgeting a priority

Before you spend money, plan how and what you intend to spend it on. This prevents you from wasting money you otherwise could have saved or used for a different purpose. Budgeting helps you to prioritize, keep track of your expenses and avoid spending on impulse.

There are useful personal finance apps that can help you budget and keep track of where your money is going. While preparing your budget, set aside money you will save, and try as much as possible to stick to the plan.

5.  Be wise about extra and unexpected income

I am guilty of this sometimes. When we get money unexpectedly, the first thing we do is to hang out with friends and have fun, buy new clothes or engage in fancy actions that cost us money. Unfortunately, that is not a wise thing to do if you want to save money and live your best life. When you get extra or unexpected income, save it,  pay your student loan, credit card balance or any other pressing need.

6. Pack Lunch and save money

In the past year, I packed lunch to work and it saved me a great deal of money. Buying food all the time can be a lot of expense. Fix something the night or morning before work or prepare left-over food to eat for lunch and save money. When you pay for lunch five or six days a week, you may be spending a lot of your income on food.

7. Reduce the bill on your cell phone

I am not sure about you but for me, this is a personal weakness. I spend a lot of time and money on data plans and phone call bills, so I am working to cut down how much I spend. Cut down call costs, data plans, phone insurance and other phone related expenses. Plan appropriately and spend less time on things that make you unproductive and lose money.

8. Ever tried a spending freeze?

Make a conscious decision not to spend money within a period. For a week, do not buy items that are not important to you. Avoid impulse buying and stay away from places you know you will end up spending money unnecessarily. Try as much as possible to put a freeze on spending and save money.

9. Cancel subscriptions and memberships

How many subscriptions are you on? Are they relevant to you? Cut down on your subscriptions and memberships and save money. Most of us are members of clubs, organizations and groups we are not active in, yet we pay membership dues. If you pay for Netflix, Spotify and many other subscriptions, it is time to cut them down. Keep only those you actively use.

10. Consider unsubscribing from some emails

If you cannot resist the urge to buy a new product whenever you receive an email about it, unsubscribe. We subscribe for products and services without even knowing, sometimes. When you realize you are always buying products advertised in your email, it is time to unsubscribe from such emails and save money.

11. Cut down on groceries to save money

Do you record how much you spend on groceries? This may be a lot of money than you imagine. Cut down on groceries, junk food and unnecessary sweets and snacks you do not need. Again, you waste money when is when you waste food or buy groceries that go bad eventually without being used. There are so many ways you can cut down on money spent on groceries such as buying in bulk and saving a ton of money.

12. Borrow, don’t buy

When I read this tip from Dave Ramsey, for a second, I was like what? On second thought, it made complete sense. When you have close friends or family around you, why not borrow something like a cake mixer or trimmer instead of making a trip to the shop to buy one?

If you can afford to borrow and not spend money, borrow. However, it is important to keep things you borrow safely and return them in good shape even if they belong to your parents. That said, there are some things must never borrow or share.

No matter how much you earn, it is important to save money for a rainy day. Dave Ramsey is one of the most admirable people who can give you great financial advise which will make a difference in your life. That is why I am completely in love with The Total Money Makeover: A Proven Plan for Financial Fitness. Get yours and transform your finances.

PS: There’s an amazing self-improvement challenge that is helping people make significant improvements in their life. If you haven’t tried it yet, click here.

You may be interested in:

13 ways to manage you finances after overspending

6 Ways to shop in bulk and save a ton of money

8 Best personal finance apps for budgeting and saving money

5 Smart ways to avoid impulse buying and save money

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