Finance Guru Dave Ramsey's Best Money Advice
Finance Guru Dave Ramsey's Best Money Advice
Finance podcaster and guru Dave Ramsey went from a millionaire to broke in his twenties, and then regained his financial status in his thirties. Find out how the host of The Ramsey Show on YouTube and national radio got back to his financial best and how it could work for you by adopting some of Dave Ramsey's best financial advice.
Gaining Control Of Your Money
Sometimes, it can feel like our money is circling the drain—it's just going, going, gone and we don't know where it went. One of Ramsey's first tips is to gain control of your money by making a financial plan. This means sitting down and figuring out where you want your money to go and where it's going currently. Doing this gives you a much greater sense of control over your finances.
Set Yourself A Monthly Budget
Once you've gained control over your money by figuring out where you want it to go, the next step is to create a monthly budget.
A month is generally short-term enough for most people to grasp, but long-term enough so that the figures aren't abstract. By giving yourself a monthly budget, you'll be able to make financial decisions within the right time frame.
Give Every Dollar A Name
This is a great piece of advice from Ramsey. By giving every dollar a name—whether it's groceries, utilities, car payments—you'll be able to see exactly where your money is going. This will enable you to make course corrections if necessary and funnel money into what you want to spend it on.
Begin An Emergency Fund
Almost nobody is prepared for life's emergencies, but you can be a little more prepared by starting an emergency fund. It doesn't need to have $5,000 in it, or even $2,000. Just $1,000 will do to start with. Save up $1,000 and put it into an emergency savings account—this way, it will grow with interest.
