Achieving financial peace is hard. There’s no shortage of expenses that are necessary and even more tempting “non-essential” ways to spend your money. Thankfully, Dave Ramsey has dedicated his career to helping people navigate finances. While we could never do justice to his cannon of helpful tips in just one article, we wanted to spotlight some of great his great advice. Hopefully, you’ll be eager to dive deeper into Ramsey’s wealth of wisdom.
7 Baby Steps
Most people feel overwhelmed when they face their finances, often unsure where to begin. Dave Ramsey’s “7 Baby Steps” proves to be the perfect place to start. The steps are by no means easy, for example, Step 6 to “pay off house” certainly will take a lot of time to achieve. However, simply having a clear roadmap in place can be incredibly empowering.
The first three steps are the most important to create peace of mind. If you have no savings, trying to save six months of expenses is incredibly overwhelming. So first, Ramsey urges you to just save $1,000. Next, consider that it’s more important to tackle debt before you begin to swell your savings.
Every financial advisor will recommend eliminating debt. We all know that we need to be free from our debt in order to then build our wealth, but it’s hard to know how to conquer that debt.
Because the topic of money is so taboo, people rarely discuss their finances and often feel shame around their debt.
Ramsey’s Debt Snowball is a great approach! He knows that a sense of accomplishment can be a powerful motivator, which is why he encourages you to pay off one debt at a time, starting with the smallest debt. Prove to yourself that you are capable of systematically removing debts from your life; that psychological fortitude will help you continue in your journey towards financial peace!
To conquer your finances, you will likely need far more wisdom than this online article can cover. We recommend diving deeper into Dave Ramsey’s resources to further your education.
You may be interested in enrolling in his Financial Peace University (FPU). This is a well-established and beloved program with courses offered at churched nationwide. Although you can enroll in FPU online, we find that the accountability of attending classes in person can be very helpful. Search the FPU site to find the local churches near you offering the program. For more inspiration, you may also be interested in attending one of his live events.
Achieving financial freedom also requires daily resolve, so we recommend also adding small lessons from Ramsey into your regular lifestyle. We love the Dave Ramsey Show and find that listening to the podcast can fill your daily commute with wisdom and encouragement. He also has published a wide array of books, we recommend starting with Total Money Makeover, which is a #1 New York Times Bestseller.
Because the topic of money is so taboo, people rarely discuss their finances and often feel shame around their debt. In the Dave Ramsey community, you will often encounter stories of people rising above their debt. While the numbers are impressive, they make it clear that achieving these goals was hard. Follow his Instagram for a regular dose of inspiration. You’ll find the encouragement validating of your hard work.
The Freedom to Give
While Dave Ramsey’s financial advice mirrors that of many other financial leaders, we love that he comes from a Christian worldview. As Christians, we are commanded to be a generous and cheerful giver. When we worship money and greed, we hurt our relationship with God. We should care for the orphans and widows, and help our neighbor when they are suffering.
Unfortunately, some Christian leaders manipulate these Biblical commands, giving terrible financial advice to their congregation (often to grow their own personal wealth).
Ramsey knows that you desire to be generous and he helps to empower that generosity. Because you will have financial peace, you will also be able to give more and more often. When you are free from debt and begin to save, it’s then that you will best be able to give in a loving way to those in need.