9 Essential Dave Ramsey Tips You Need to Try
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3. Protect the Four Walls of Home
What happens when you don’t make enough money to cover all your expenses?
You make sure to take care of the most important things — the four walls.
Ramsey describes the four walls as:
- Food: Make sure food is on the table.
- Utilities: Keep the lights on.
- Rent/mortgage: Maintain a roof over your head.
- Transportation: You will need to find a way to work.
Here are a few tips to save money on these 4 walls:
Ibotta – Save Money At the Grocery Store
Wall #1 is food. Obviously eating out costs more than cooking at home.
So since you will be cooking at home more often, you cannot skip Ibotta for savings at your local grocery store.
Ibotta offers cash back on the items you’ll need, like meats, grocery staples and condiments.
Simply open the app, snap a photo of your grocery receipt, and Ibotta money goes straight into your account.
Redeem your money for cash in the bank or gift cards to your favorite retailers and restaurants.
Your meal plans will be sent to your inbox each month, along with shopping lists and tips.
Save about two hours a week.
Each serving is around $2.
Lower Your Home and Auto Insurance
On to walls #3 and #4.
But before we learn how to lower your home and auto insurance, have you thought about lowering your home and auto expenses?
Can you live with one less car?
Or can you sell a car (drop that car payment), and buy a cheap car in cash?
Can you downgrade your home?
Can you move to a cheaper city?
Or move to a cheaper state?
Don’t let your ego get in the way of your financial progress.
If lowering an expense will make your life better and easier, swallow your pride and do it.
So how do you lower your home insurance and auto insurance expense?
You switch providers.
Make the transition easy with Insurify.
Enter your information, and pick the coverage at the price that is perfect for you.
What’s more, the quotes are free.
You have nothing to lose by trying Insurify, and a lot of money to save.
4. Don’t Go Further into Debt
While we don’t share Dave Ramsey’s same view of credit cards, that doesn’t mean his message is wrong.
Credit cards are dangerous!
If you struggle with credit card debt, take scissors to them today. Do not wait.
Dave Ramsey’s baby steps say to put $1,000 in the bank, and then put everything you can towards your debt.
This is sound advice.
High interest rates are draining your finances.
Ramsey says to pay down debt using the debt snowball.
That advice is okay…
Our advice: consolidate your debt, pay less in interest, and get out of debt faster while spending less money.
Get Out of Debt Faster While Spending Less Money
Ever heard of debt consolidation?
Here’s how it works: a consolidator will buy all of your credit card debt and consolidate it into one single payment with a lower interest rate.
Why would you do this?
Because the consolidator is going to give you a very lower interest rate!
A lower interest rate = less money lining the pockets of your lender = more money paying down your debt.
When your interest rate is lower, you pay down debt faster and spend less money in the process.
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5. Have an Emergency Fund
Dave Ramsey’s first step of his “7 baby steps” for financial peace is getting $1,000 into an emergency fund.
That money is strictly for emergencies.
If you budget you can plan for irregular expenses like holidays and birthdays so that the emergency fund is only used for emergencies.
He suggests keeping this money in a different account than where you normally bank, so it is that much harder to get to, unless you have a real emergency.
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CIT offers interest rates that are typically 11X the national average or greater.
The money in your bank should be growing faster.
6. Use Cash
Did you know shoppers who pay with a credit card spend more than those who use cash.
It’s easier to overspend with plastic than if you are paying with cold, hard cash because you only have so much money in your pocket.
Dave Ramsey recommends using the cash envelope method.
As long as your envelope has cash in it, you can spend it.
But when it is gone, it’s gone.
Want to earn cash-back on your purchases *without* a credit card?
7. Attack Debt
If you pay the minimum on your debt it will be nearly impossible to pay it off.
Attack your debt as quickly as possible.
Dave Ramsey suggests the snowball method.
You make minimum payments on everything but the smallest debt.
Pay as much as possible on the smallest debt to knock it out fast.
Take all of the money you paid on the small debt and apply it to the next one.
Keep rolling that money over … like a snowball.
Lower Your Credit Card Interest Rate
Have multiple credit card debts?
Did you know you can combine your debts into a single payment AND pay less in interest.
It’s called Debt Consolidation (or debt combining), and it allows you to get out of debt faster while paying less money every month.
Here’s how it works: Let’s say you’re in debt $15k across 4 different cards.
A credit card company will pay off that debt (you’re not in debt to those 4 credit card companies anymore), and give you their card with a $15k debt.
This is called a Balance Transfer Credit Card.
Why would you do this?
Because this new card’s interest rate is a fraction of what it was before.
Balance Transfer Cards offer down to 0% APR (interest) for 12-18 months (your rates will depend on your credit score).
Lower interest EVERYTHING in terms of paying down your credit card faster and for less money.
8. Avoid Temptation
If you have a weakness for spending money on “deals” when you shop, then limit the number of times you shop.
If you tend to overspend on groceries when you are hungry, then eat before you go.
Learn what your weaknesses are and then avoid places that may cause you to slip.
9. Give
Giving plays an important part of Dave Ramsey’s budgeting process.
Whether it is to a church, a charitable organization or to someone who has need, make giving a part of your financial routine.
Nothing feels better than knowing you had a hand in helping someone else.
Remember These Tips to Improve Your Finances
Ibotta – Save on Groceries + $20 Welcome Bonus
Ibotta is giving their users cash back on the food you buy every day (over $600M and counting).
You can earn cash back nearly every time you visit the grocery store with this app, and you get to turn that into free gift cards to your favorite stores (Yes, that includes Amazon).
Start saving money when you take a picture of your grocery receipt.
Trim Down Your Internet Bill
If you’re willing to negotiate, internet service providers are likely to lower your rate.
But what price do you ask for?
Trim is a professional service who specialize in negotiating bills down.
You will keep 66% of the savings the first year and 100% of your savings every year after.
Lower your Electric Bill
Lowering your power bill can be as simple as switch providers. Electricityrates.com makes it simple.
Lower your electric bill after you enter your zip code at electricityrates.com.
Destroy Your Credit Card Interest
Transfer all of your credit card debt onto a Balance Transfer Credit Card.
Get down to 0% APR for 12-18 months (your rates will depend on your credit score).
Head over to Credit Land and pick out the balance transfer card perfect for you.
Stop Eating Out – Get $5 Meal Plan And Save
You’d be surprised by how much you’d save if you ate out one less time per week.
Sign up for $5 Meal Plan because you will save money cooking flavorful meals at home.
