I wish I could be his obnoxious, female equivalent
Almost everybody knows who Dave Ramsey is. No, he’s not Jon Benet’s father. I’m talking about Dave Ramsey, financial expert and advisor extraordinaire. He is the financial world’s equivalent to Dr. Phil. He is able to convey financial and money matters in a way that all who hear it can understand it.
I wish I could be the female version of Ramsey. But, alas, I am not eloquent and I like to party a little too much. So, in his honor, I would like to share my favorite Dave Ramsey tips.
1. Open, fill, and maintain an emergency fund in case you lose your job or a catastrophe happens. This is typically three months of living expenses.
2. The power of focusing. Pay off one small debt at a time instead of trying to do all of them or multiple ones at once. This is called, according to Dave, a debt snowball. It is a lot less stressful and a lot more feasible than trying to pay off everything at one time.
3. Use cash to pay for everything. If you can’t afford to pay cash, you can’t afford it. Credit should be saved for emergency situations.
4. Invest 15% in retirement. Unfortunately, I cannot allocate that much, but I hope to be able to get there soon. I would love to go back and slap younger me for not starting earlier.
5. Live poor now so you can live rich later.
6. Never, ever buy a new car. They depreciate as soon as you drive off of the lot. This is just not a smart move at all, financially. In all fairness, my dad taught me this long before Ramsey did.
7. Pay off your mortgage early. That’s one less debt you will have upon retiring.
Dave Ramsey is a favorite of mine because he doesn’t over complicate things. Sometimes, it really is as simple as it sounds.
You can see from the above tips how easily you can change your life and your finances. After taking the first step in the right direction, the next steps come much easier. Take the first step towards being debt free.