9 Money Rules by Dave Ramsey to Help You Get Rich

Dave Ramsey is one of the most recognisable, and well respected figures in the world of personal finance, helping millions of people get their lives in check with world class financial advice.

He’s famous for his…

• No B.S financial advice.

• Relentless distain for debt and hyperconsumerism.

• Epic rants and crashouts over terrible financial and spending habits.

Here are 9 money rules by Dave Ramsey to help you build wealth.

Eliminate Debt Before You Invest.

The number 1 rule of the Ramsey investing philosophy is to not invest a dime until you eliminate all of your toxic debt.

This debt, according to Ramsey, is pretty much everything but your mortgage.

Ramsey insists that you can’t build wealth when your primary wealth-building tool, your income, is tied up in monthly finance charges.

Harness the Power of the Snowball Method.

Eliminating debt is easy to talk about, but hard to do, which is why Ramsey is a longtime advocate of the snowball method.

This debt-reduction strategy requires you to attack your debts in order of smallest to largest, allowing you to chalk up quick wins that close outstanding accounts while boosting your confidence along the way.

Once it’s time to confront your truly scary debts, you’ll have momentum on your side.

Plus, you’ll be able to concentrate only on them, now your smaller debts are no longer nipping at your heels.

Build an Emergency Fund Before You Build Wealth.

The first half of Ramsey’s top investing rule is to get out of debt.

The second is to fully fund your emergency savings before you try to grow your money on the market.

Eliminating debt puts you on solid financial ground. But, without enough cash in the bank to cover three to six months’ worth of expenses, you’re just one emergency away from being forced to tap into your retirement account, or get into debt once again.

Give 15% of Every Paycheck to Your Future Self.

Once you’re free of debt and sitting on enough savings to survive at least a quarter of a year, Ramsey says the most important thing you can do with your paycheck is to save 15% of it, every month, in a tax-advantaged account.

Do some research on the best tax advantaged accounts based on where you live, and start taking advantage as soon as possible.

Keeping Up With the Joneses Is an Unwinnable Game.

Sometimes the most important thing isn’t what you do with your money, but what you don’t do.

In The Total Money Makeover: A Proven Plan for Financial Fitness, Ramsey wrote, “We buy things we don’t need, with money we don’t have, to impress people we don’t like.”

In today’s world, social media influencers literally bank on your willingness to part with your cash to show off for people you don’t even know, much less like.

Frivolous spending is the bane of wealth creation. Remember, every dollar you wear is one you can’t invest.

Utilise Money-Saving Technology.

Modern society has access to incredible gadgets and software applications that would have been unimaginable just one generation ago.

Many of them can save you money, and Ramsey wants you to take advantage of each and every one.

That includes…

• Smart thermostats for lowering utility bills.

• Banking apps that let you automate savings.

• Smart-shopping and coupon apps.

• Budgeting apps.

…and more.

Put What You Already Know Into Practice.

Remember that every hour you spend learning about new ways to manage and grow your money, is one you don’t spend building a budget, creating a spending plan and investing for your future.

Sure, you’d be wise to learn more as you go, but get started now with what you already know.

Ramsey once wrote, “Winning at money is 80% behaviour and 20% head knowledge. What to do isn’t the problem; doing it is. Most of us know what to do, but we just don’t do it. If I can control the guy in the mirror, I can be skinny and rich.”

Never Enter a Grocery Store Without a Plan.

On his blog, Ramsey cites USDA research that shows even the thrifty average family of four spends nearly $1,000 per month on groceries.

But you can shrink that number by eliminating what Ramsey calls “budget busters”.

Small, unplanned impulse purchases that add up to big money misspent. His solution is to shop only for the ingredients in a predetermined meal plan, and never to deviate from the plan no matter what.

He also recommends ordering online and picking up your groceries to avoid temptation.

Know What You Don’t Know and Work With a Pro.

According to his own blog, Ramsey still works with a professional advisor to help guide his investments and overall financial strategy.

No matter how much you keep up with news and trends, a good money pro will have greater insight and a better perspective based on their own experience and what you tell them about your goals, strategy and circumstances.

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