Looking for a few basic budget tips to improve your financial life? Then this article is just for you!
For those of you who aren’t familiar with him, Dave Ramsey kicks ass in the world of financial tips and advice.
This man has published some of the best financial books out there, and has lived the complete ups and downs of being rich and completely broke.
His website has a few million active followers, so he obviously knows what he’s doing!
So Who Exactly Is Dave Ramsey?
Dave Ramsey is the outspoken financial guru who really has some very clever ideas about personal finance, and how we all could improve in this department.
There’s a reason he has such a large following, so his advice should be listened to!
Dave Ramsey’s Top 5 Budget Tips
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Now Dave does have MANY financial tips that took hours to explain, but I have decided to just take some of his main points about budgeting, and how we can easily improve our budgeting skills.
Today’s article is a combination of his top FIVE budget tips for all of us to improve our finances just a bit!
1. Budget To Zero
This is quite a simple tip, and works well.
Basically you make sure that every cent you are earning in the next month is accounted for. So you basically want your total balance to be at ZERO by month end.
This doesn’t mean you should spend everything.
It just means you should account for everything, be it for your bills, savings, investments etc.
So at the end of the month your income less expenses equals zero.
2. Every Month Is Different
This really is true!
Some months have higher expected costs than other months.
For example, your kids might be going back to school next month which means new school supplies, uniforms etc.
Or other months you might be going away on holiday.
Be sure to make notes of all these occasions, and ensure you have cash stashed away for these more expensive periods!
3. Do The Budget Together
Are you married or in a relationship where you have one bank account?
If yes, then you should do your budget together!
Get on the same page about money, otherwise you will have some problems in the future.
4. Make A Buffer
Put a small amount of money aside every month for unexpected expenses.
Having an emergency fund is super important, as we all know those unexpected expenses love to creep up at the wrong times!
It doesn’t have to be much, but if you consistently put away a small amount fo cash for this purpose, it will slowly grow and be there to help you out when needed.
5. Cut Up Credit Cards
Credit card debt can be a real nightmare!
People love making excuses for them, saying how they help you out etc and how you need them for certain things.
But the truth is, if you are really trying to be committed to your finances and budget, then you have to get rid of these!
Just stick to debit cards, because the great thing about debit cards is the money you use is the actual money you have in your bank account!