![]() He was shocked that most seemed identical, yet he saved $58 on groceries that month alone. Marcus was skeptical but tried Ramsey’s advice and switched to leading generics for 90 days. A box of crispy rice cereal will taste the same as a Malt-O-Meal bag or Kellogg’s. For example, 500 mg acetaminophen pain reliever is the same whether the bottle says Tylenol or CVS Health. In most cases, the quality and effectiveness are comparable. Food staples, over-the-counter medicine, cleaning products, and, more often, have generic versions that are 50% cheaper or more than the name brands. One of Dave Ramsey’s favorite frugal swaps is opting for generic store items over name brands. She immediately saved $350 monthly and paid off two credit cards in five months. On Ramsey’s advice, she limited restaurants to twice a month max. Jade ate out 4-5 times weekly and ignored her growing credit card debt. ![]() Brown bag lunches and avoiding daily Starbucks stops can save you $100+ each month. For example, eat out for special occasions only, or cap yourself at once per week. Ramsey advises being ruthlessly strategic about restaurant spending. Cutting back on dining out 1-2 times weekly can lead to huge savings. Restaurant meals typically cost 300-400% more than cooking at home. Limit Dining Outĭining out less is one of the easiest ways to slash expenses and save money fast. Just a year later, when finances got tight, she had to sell it for $22k, losing $10k instantly. Even buying used cars that are just 2-3 years old can mean savings in the thousands over brand new.įor example, when Emily’s old car died, she ignored Ramsey’s advice and bought a new $32k SUV. Ramsey especially preaches buying used cars versus new ones, as the depreciation on new vehicles as soon as you drive off the lot is massive. Quality used items are often nearly as good as new, at a fraction of the cost. This applies to everything from cars and furniture to clothes, books, sports equipment, electronics, etc. One of Dave Ramsey’s favorite frugal hacks is purchasing used rather than new items. ![]() Within eight months, Trent paid off all his cards and saved $3,000 in fees and interest. On Ramsey’s advice, he cut up his cards and switched to cash-only living. Impulse spending decreases dramatically when you pay with finite cash versus “invisible” credit.įor example, Trent had five maxed-out credit cards and $12,000 in debt. Ramsey says credit cards encourage overspending and raising interest charges, fees, and debt.īy getting rid of credit cards and living only on cash, you are forced to live within your means and be more thoughtful about purchases. While extreme, this tactic works very effectively. Cutting Up Your Credit Cardsĭave Ramsey famously urges people to cut up their credit cards and stop using debt altogether. ![]() This system prevents buying extra unneeded items. When the $100 is gone, no more grocery spending can happen until next week’s $100 is added. She puts $100 cash in the grocery envelope each week. This prevents overspending and helps you stick to predetermined budgets for each expense area.įor example, Amanda budgets $400 per month for groceries. Once the cash is gone from an envelope, no more spending can occur in that category until the next budget cycle. You take money directly from that envelope when you spend in a category. You put the money for each category in an envelope labeled for that expense. Here’s how it works: you allocate a set amount of cash for specific spending categories like groceries, dining out, entertainment, etc. The envelope system is one of Dave Ramsey’s top budgeting methods. The following eight habits represent some of his favorite go-to frugal recommendations. He provides easy, actionable tips that help families watch their spending, save money regularly, and get out of debt fast. Ramsey has coached millions to pay off debt, budget wisely, and build wealth through his books, radio shows, podcasts, and more.Ī central theme in Ramsey’s advice is embracing frugal living habits. Introductionĭave Ramsey is a famous personal finance advisor and author known for his simple money tips and a sincere focus on eliminating all consumer debt. Implementing just a few of these can lead to thousands in annual savings. This article highlights 8 of Dave Ramsey’s top recommended frugal living strategies. Ramsey’s advice often focuses on developing intelligent, frugal living habits that allow people to dramatically cut expenses and save money. Frugality guru Dave Ramsey is famous for his simple money tips that help people crush debt, budget appropriately, and build wealth.
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