Dave Ramsey is a bestselling author and host of “The Ramsey Show,” where he talks about crushing debt, saving for emergencies and building wealth. He’s also the creator of Financial Peace University.
He’s known for telling his callers to do anything and everything to avoid debt, make smart investment decisions and make sacrifices to achieve financial security.
Here are some frugal habits Dave Ramsey swears by, as well as a couple from us, that can help you meet your financial goals.
1. Buy store brands
Store-brand and generic items often offer the same quality as their name-brand counterparts for a lower price, especially right now when inflation is at a historically high level.
“Huge brands tend to spend an insane amount of money on marketing and advertising. Oftentimes, that means you pay more money for someone to be in a commercial during the big game,” according to Ramsey Solutions.
Items to try generic versions of include cleaning supplies, food staples, paper products and over-the-counter medicine, Ramsey Solutions recommends.
Examples of stores with effective store brands are Walmart, Target and Trader Joe’s.
2. Carry a packed lunch with you
According to the latest data from the Bureau of Labor Statistics, Americans spend an average of $3,933 per year on food away from home, which includes dining out and takeout.
You can avoid spending and unhealthy calories by bringing lunch to work or school with you.
To make it easier, bring leftovers, batch prep meals for the week or choose healthy frozen meals.
3. Stop eating out all the time
Food away from home spending also includes eating dinner and brunch at restaurants. This splurge is so costly that Ramsey suggests that people with debt cut it out of their budgets first.
Ramsey recommends creating your own takeout-inspired meals at home to prevent feeling like you’re being deprived.
When you do want to go out for dinner, skip the appetizer, dessert and alcohol, advises Ramsey. Those extras quickly run up your tab. Better yet, have an appetizer at home and split an entree at the restaurant.
4. Cut unused memberships and subscriptions
How many streaming services are you signed up for right now, such as Netflix, Hulu, Prime Video, Disney+ and HBO Max? Cancel some of them.
Ramsey Solutions encourages consumers to evaluate all of their memberships and subscriptions by asking themselves if each one changes their life and truly adds value to it. If not, cancel it.
5. Use less energy at home
Common energy-wasting habits include leaving lights on, running the dishwasher multiple times a day, leaving electronics on when not in use, not turning lights off when leaving a room and letting appliances run fruitlessly. You can reduce your energy bill by stopping these practices.
Additionally, shorter showers can help conserve water and lower your energy bill. Avoiding the dryer if the weather is accommodating and washing clothes in cold water can further help.
6. Plan clothes shopping in advance
Set a clothing and accessories budget and buy with specific purposes in mind, such as planned events and recreational activities. This ensures you don’t splurge on things you ultimately don’t need.
Further maximize your clothing purchases by shopping the clearance section first and only using coupons for preplanned purchases.
Better yet, look for needed clothes at consignment shops and resale sites like Facebook Marketplace, eBay, Poshmark and OfferUp.
7. Don’t pay full price for necessities
There are coupon extensions and apps that automatically apply coupons during checkout experiences online. Download one of them to always get the best possible price.
Likewise, download other apps that offer cashback rewards for both in-store and online purchases.
Before heading to the store for groceries, check store circulars to see what’s on sale. Plan your meals and grocery list around those items, especially those that have the steepest discounts or that you need to replenish often.
8. Celebrate birthdays frugally
You should celebrate birthdays but do so frugally, says Ramsey Solutions. Ramsey wants people to focus on experiences rather than things because memories are priceless. Ramsey Solutions shares examples:
- Surprising your birthday honoree with lunch at their office
- Finding a birthday gift for that person at a craft fair or consignment shop
- Having a pizza night at home and watching a free movie
- Making them a special dinner at home
9. Analyze your monthly budget each month
Pull the receipts out of your pockets, purse, wallet and handbag. While you’d save more by analyzing each receipt and comparing it to your budget throughout the month, doing so after is better than not at all.
Ask yourself:
- Where did you overspend?
- Where should you adjust your plans for next month?
- What circumstances prevented you from meeting your financial goals this month?
Also, congratulate yourself for staying on track with the occasional splurge. You’ve earned it!
Add a Comment