Dave Ramsey How to Save Money Tips Like a Pro

Do you want to know all about Dave Ramsey how to save money tips?

Well Dave has common money saving tips like all other financial gurus

But what set him apart is his tremendous effort teaching his students how to fight debt

Also Dave knows how challenging it is to stick to a budget and build emergency fund

That's why in his book Total Money Makeover, Dave received a lot of thank you letters from students who decided to follow his money saving steps

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Dave Ramsey how to save money

So, I decided to cover only Dave Ramsey‘s tips on how to save money and I'll begin with the below

1- Get rid of your debt with snowball

Snowball is not a game it is a method by Dave Ramsey

Simply snowball effect starts with paying small debt amount first

When this debt gets fully paid you move on with the same momentum to the next debt in line

2- Dave Ramsey save money automation

Best Dave Ramsey how to save money tip is to pay yourself first

It means to build a habit to save money first once you get paid

Then start using your remaining income to cover your spending

Nowadays you can ask your bank to deduct an amount or percentage on every paycheck

3- Cut spending on discretionary expenses

When it comes to discretionary items you have to be honest to yourself

If you buy something you can reduce or cut and still have no impact on your life

For example if you are into buying cosmetics

Or non essential grocery items plus alcohol and cigarettes

4- Save money on grocery bills

Not only Dave Ramsey discussed how to save money on grocery

Actually so many financial experts talked about this topic

That's why I collected a huge 38 tips of how to save money on grocery

I am sure you will get a lot of different smart ideas to save on your grocery

5- Buy generic product

Most of the time buying generic brand will save you money without sacrificing quality

You need to understand something these generic brands are packaged by the same companies selling the brand products

Usually all supermarkets make agreement with manufactures to pack their grocery products in their own packaging that reflect the grocery stores brands

For example Walmart uses a generic brand called Great value

6- Resist clearance/on sale – know your needs vs wants

If you receive an offer by email for 70% discount on shoes

Are you going to rush to the store and look for shoes?

Do you really need a new shoe?

That's why Dave Ramsey suggest to save money by unsubscribing from all emails

Also you have to know difference between your needs and wants

Your needs are all things that keep you alive like shelter, food and transportation

While your wants are luxurious thing you add to your life

7- Cut cables and use IPTV

Cutting cable is a wise decision to make

Especially you can save $100 minimum a month

According to Dave Ramsey's tip to save money for at least $217 a month

This includes taxes and other fees so it is around $2,604 a year

By the way you can replace your cable TV with IPTV

I pay around $40 a year

Yes the above amount is not a typo you pay around that value

8- Spend your bonus wisely

Some companies give bonuses every quarter

At least if you are not lucky you will get a bonus once at end of the year

The issue is not having a plan of what to do with your bonus

Dave Ramsey's tip on how to save money is to look for bonus as a way to kill debt

9- Cancel automatic subscriptions

Do you have automatic subscriptions?

Before you rush to answer, think again

I found 2 unused subscriptions I was not using at all

Definitely think about magazine subscription as a typical example of wasting money

10- Reduce utility costs

Dave Ramsey discussed many times how to save money on electricity

With the use of today's technology like smart thermostat and plugs you can save a lot

Actually to discuss it in details I recommend to read how to save on electricity post

11- Negotiate your insurance

Always compare many insurance companies for the best rate

If your insurance company has an app to track your driving habit then go for it

Also Dave Ramsey's tip on saving money is coming through his ELP (Endorsed Local Provider) organization that gives better insurance premium rate

12- Ask about special discounts and look for coupons

Always remember to ask in all stores for special discounts and search for coupons

Nowadays this is not hard by using mobile apps like Rakuten, Mr Rebates and MyPoints

By downloading these apps not only you will stay on top of discounts in all stores

But also you will get cash back on all purchases you make

13- Eat your left over dinner at lunch

In fact Dave Ramsey recommends to save money by eating leftover dinner at lunch

I know a lot of people order food at work and they never estimate how much they pay

14- Maximize your retirement saving plan

Check if your employer is matching your RRSP (Registered Retirement Saving Plan) in Canada

Or matching your 401K plan in the US up to certain percentage

If so, seize the opportunity to the maximum

Keep in mind, if you have debt with the exception of mortgage then pay your debt first

Then work on building up your emergency fund

Make sure you have 3-6 months of emergency fund to cover your expenses

Finally work on your retirement saving plan

15- Negotiate your cell phone bills

We have AskTrim, BillSmart, BillCutterz, BillFixers and Bill Shark available in US

While Bill Busters is available in Canada

16- Try 30 days no spending challenge

I discussed earlier the 52 weeks money saving challenge

Here in this no spending challenge that takes 30 days

You are not asked to save money but you are asked to stop spending money

Just spend on your needs only and challenge yourself for all your wants

Ask yourself on everything you are going to spend money on

Is that essential to keep me alive?

For example, spending money on entertainment like restaurants and movie theaters

What do you think? it is hard right that's why it is only for 30 days

17- Try DIY at home

Before you pay cash for any handy man think about if you can DIY

I know there are so many things that you can watch YouTube and do it yourself

For example, I painted 2 rooms all by myself

18- Skip morning coffee

I will speak about myself I know it is hard to stop buying morning coffee

Dave Ramsey suggest to save money and do your coffee at home

You can buy few days coffee outside but don't turn it into daily routine

19- Check public library before buying books

If you buy books online or from book stores check your public library first

Any new books released within a month can be found at your local library

I am sure you don't need to own all books which you can borrow and read

20- Look for cheap vacations

Dave Ramsey's way to save money is to replace international vacation trips with local destinations you can enjoy and pay less

In my opinion, I will tweak the above phrase by suggesting to mimic travelling to overseas places every year to once every 3-4 years

If you plan on visiting many places in Europe you can consolidate many places in one travel

Just use a car to move to different Europe countries

21- Refinance your mortgage

I myself experienced switching my mortgage to a lower rate

I found that I will save $250 for the next 5 years

Although I paid around $2,000 as a penalty but it is worth doing that

Always keep an eye on current market interest rate

22- Sell what you don't need

Selling what you don't need doesn't mean you are broke

It is a practice that would turn you into conservative person

Go through all your rooms starting from your door entrance

Move in every room and look up and down

Definitely you will find many things you don't need

You can list all these items on Facebook Marketplace and eBay


Michael launched Wealth of Geeks to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.