Yahoo Finance Dave Ramsey: 12 Ways You Can Win With Your Money in 2024
Earlier this year, the popular personal finance expert Dave Ramsey shared advice on how to win with your money. If you’re ready to take control of your cash and want to get ahead financially, then keep reading –here are Ramsay’s 12 ways that you can win with your money in 2024.
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Create a Budget
While many people know they should be budgeting, it’s something that they may not get around to doing — but you can’t win with your finances if you don’t even know how you’re spending your money.
The good news is that there are numerous budgeting tools that you can use, and different types of budgeting plans that you can follow. The goal is to create a budget that works with your lifestyle.
Plan For Inflation
The Fed has raised rates aggressively to cool down inflation and restore supply and demand balance. However, there’s only so much that rate hikes can do, as prices on basic necessities have already significantly increased. As frustrating as that may be, when creating a budget, you have to factor in the reality that prices of most expenses will continue to increase.
Pay Down Your Student Loans
Ramsey urged readers to pay down student loans instead of waiting for student loan forgiveness announcements. As stressful as it may be, you have to continue making those student loan debt payments to ensure that you’re chipping away at your balance.
Pay Off All Of Your Debt
Ramsey has always been an ardent proponent of paying down all of your debt, suggesting that debt robs you of current and future opportunities. The sooner you pay off your debt, the sooner you can allocate more funds towards investing and planning for the future.
Ramsey has also become known for the debt snowball system, wherein you focus on paying down your lowest balance first to build some momentum in your journey. The goal is to find a debt payment plan that works for you so that you can commit to becoming debt-free in 2024.
Watch Out For Buy Now Pay Later Apps
With the rise of buy now, pay later (BNPL) apps, getting your hands on a high-ticket item is easier than ever. While these BNPL programs are often enticing, you have to remember that you’ll deal with these payments for a long time. You want to avoid picking up debt, even if it seems like a good deal, because you’ll be hurting your future finances.
Be Careful With Your Online Spending Habits
Ramsey warned readers to be careful with their online spending habits since spending online is easier than ever. Consider deleting shopping apps from your phone and removing your payment details from online retailers that tempt you often. If you don’t watch your online spending habits, you may continue spending money frivolously on purchases that are hurting your financial future.
Ensure That Your Emergency Fund is Healthy
Ramsey urged his readers to have a “starter” emergency fund with at least $1,000 to prepare for any unexpected expenses. Once you’ve started taking your finances seriously, Ramsey suggested building up a healthy emergency fund with anywhere from three to six months worth of living expenses. This money can be used to bail you out when life throws an unexpected curveball at you.
Keep On Investing
Ramsey wanted readers to keep on investing even if they feel discouraged because planning for retirement is a long-term game. You don’t want to give up on planning for your retirement just because the market isn’t as high as it used to be.
Buy a Home If You’re Ready
When in a strong and stable financial position, Ramsey doesn’t want you sitting on the sidelines regarding home ownership. If you’ve saved up a decent downpayment, cleared your debt and can afford the costs associated with home ownership, you shouldn’t wait too long to get into the market.
Get a Joint Banking Account With Your Partner
Ramsey urged married couples to get a joint banking account in order to combine dreams and resources, and to work towards those shared goals.
Find Your “Why” For Saving Money
Ramsey has suggested that write down your reason why you’re saving money, and to have a big dream for your future finances. If you want to win with your money in 2024, he instructed that it helps to have a bigger-picture reason for why you’re ready to get serious about your finances. Your “why” could be to gain control of your life, or to be more generous one day. Whatever the “why,” the goal is to figure out your big dreams so that you have a purpose behind taking your money seriously.
Don’t Lose Hope
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Even though the last few years may have been filled with discouragement and frustration, it’s essential that you don’t lose hope when it comes to your money. You want to do your best to remain optimistic, because better times may be approaching. The economy goes through cycles, and the bad times don’t last forever.
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This article originally appeared on GOBankingRates.com: Dave Ramsey: 12 Ways You Can Win With Your Money in 2024
