I Saved Over $1,000 a Month by Following the Advice of Dave Ramsey

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Various financial experts could help you immensely if you apply their advice. The goal is to find a financial expert that resonates with you so that you can utilize their tips at the stage that you’re at with your money. Since personal finance is so personal, it’s essential that you find an expert who shares advice on a specific issue that you’re focusing on.

One expert who has helped many people pay off debt and save money is Dave Ramsey. GOBankingRates spoke to a couple who applied Ramsey’s advice to pay off debt and start building wealth.

Two Financial Coaches Followed Advice From Dave Ramsey

“The Ramsey Baby Steps helped us in a few different ways,” said financial coaches Haley and Justin at Price of Avocado Toast. The couple became financial coaches after they paid off their debt and realized they wanted to help others. The advice that they took from Dave Ramsey helped them pay down debt and change their lives.

Here’s what worked for Haley and Justin when they were consuming content from Dave Ramsey to get serious about their finances.

Have a Clear Plan for Your Finances

“The first way that Dave Ramsey helped us was with having a clear process to it all,” the couple said of the fact that Ramsey offers his supporters a clear plan so that they know what the next steps are. “Having a targeted step to tackle made it feel like we could just ‘stick to the plan’ and be alright through it all. We’re both goal-setters, so knowing what was next actually was really comforting.”

It can be intimidating to begin your financial journey, since you don’t know where to start and what steps to take. Dave Ramsey gives you clear steps to follow so that you know what to do if you’re trying to save money or pay down debt. When you have a clear plan for your finances, it eliminates the stress of constantly trying to think about what action to take.

Pay Down Debt With the Debt Snowball Method

“The second part of Dave Ramsey’s advice that helped was the debt snowball system.” The couple discussed the importance of finding a play for paying off debt to eliminate debt payments, save on interest fees and start building up your savings.

“We firmly believe that the behaviors and habits got you into debt, not the math issues. So, to get out of debt, we need to pick a path that is behaviorally driven. The snowball allows you to see and feel those small wins that drive momentum moving forward.”

Dave Ramsey is known for his advice on paying off debt, especially the debt snowfall method, which has become popular over the years. The system focuses on paying down your debt with the lowest balance first so that you can have a quick win and gain some momentum in your journey. Haley and Justin knew they needed a plan they could both follow and stick to when it was time to get serious about paying off debt.

Sell Your Stuff

“We appreciated how often [Ramsey] preached to sell things that don’t have value.” Haley and Justin took advice from Ramsey about selling stuff around the house to help find the funds for paying down debt. “As Americans, we tend to overconsume things, and we really don’t need it all. Selling stuff to get quick jolts of cash can be a game-changer on the journey.”

The biggest issue is that accumulating stuff can lead to credit card debt. It then becomes critical that you stop buying stuff, and you may even want to think about selling some of the items you no longer have a use for.

The couple saved over $1,000 a month by following the advice of Dave Ramsey, since they had a clear plan for their finances, got serious about paying off their debt, and then ended up selling stuff around the house for extra cash. It’s important to remember that every dollar counts on your journey to becoming debt-free.

What Are Dave Ramsey’s Seven Baby Steps?

If you’re unsure where to start with your financial journey, these are the baby steps you have likely heard about:

1. Build a $1,000 emergency fund. The goal is to get a starter emergency fund with cash on hand to handle any unexpected expenses.
2. Pay off all of your debt, excluding your mortgage, with the debt snowball method. Ramsey wants you to focus on paying off your debt so that you spend less on interest and can eventually focus on saving for your future.
3. Save up 3-6 months’ worth of living expenses in your emergency fund. You want to eventually have an emergency fund that has you covered in the event of the worst case.
4. Invest 15% of your income into your retirement. You want to start planning for your retirement as early as possible so that you have compound interest on your side.
5. Start saving for your children’s college education. Your next step involves saving money for your children’s college education to help them out with the rising costs of tuition and other school-related expenses.
6. Pay off your home mortgage. Ramsey wants you to pay off your mortgage early so that you free up your monthly expenses.
7. Build wealth and give. Ramsey suggests that you focus on building wealth and then giving back to charity when you’re in a position to do so.

Numerous followers of Ramsey have taken these steps over the years. While every single step may not apply to your current situation, there’s a takeaway that could help you save $1,000 per month.

What Advice Can You Apply From Dave Ramsey Right Now?

If you’re looking to save $1,000 per month or overhaul your finances, you can apply advice from Dave Ramsey right now. Here’s how you can start.

Make a Plan To Pay Off Your Debt

When you’re in debt, it can feel like you’ll never get out. This is why it helps to have a clear game plan to always know which step to take next. With the debt snowball plan, you’re focused on making extra payments on your lowest debt balance first to eliminate the balances from your life until you’re debt-free.

Use Ramsey’s Tips for Saving Money

Dave Ramsey shares advice in his content on how you can save money. While you may not be able to apply all of the tips, there’s likely something that you can apply to your life to save up to $1,000 per month.

Here are some of Ramsey’s tips for saving money:

• Automate your savings. Saving money is easier when it’s automated, and the money comes off your check without you even noticing.
• Buy generic items over expensive brand names. Ramsey preaches that you don’t have to spend money on premium brands if the generic will suffice.
• Cut out cable. If you’re struggling to save, you can start by cutting out cable.
• Pay down your debt. The sooner you pay off your debt, the sooner you can start saving up.
• Work on reducing your energy costs. If you want to save money, you have to look over all of your expenses. You can trim some money from your budget by making some tweaks to help save on energy fees.
• Look over your insurance rates. Chances are that you could save money on insurance costs by switching companies or asking for a discount.
• Use the library. Instead of spending money at Amazon, you can explore the options at your local library.

Closing Thoughts

If you follow the financial advice of Dave Ramsey, you could save up to $1,000 per month, depending on your situation. As always, it’s vital that you seek out financial expertise based on what you’re dealing with at the moment, since everyone is at a different stage of money management.

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