Ramsey’s Approach to Money: Step-by-Step Ways to Grow Your Wealth

When you hear Dave Ramsey, you know a serious money talk is on its way – which we all need at some point in our lives. I originally discovered Ramsey a few years ago when my parents bought one of his books. At the time, I was early into my college career and completely ignored their concerns about managing and paying on my student debt before graduation. But after being graduated for over a year (and dreading the years of student loan debt ahead of me), I made the decision to pay it all off. Ramsey is has been a go-to financial guru for years. He also has multiple books, partnerships, programs, and extended resources to help people at any age solve their money management issues. Below are some of his top ways to eliminate debt and build a strong financial future. 

Debt Snowball

One of Ramsey’s tried and true ways to eliminate debt is through paying off your smallest amounts, then your largest. Through making smaller accomplishments over time, you’ll feel excited instead of overwhelmed when you finally reach the heaviest burden. While you focus on paying your smallest debt, make sure to still make minimum payments on all other debts. Then, once you finish one line on the list, mark it off and move on to the next! And before you know it, you’re debt free.

Financial Peace University

This is a little backwards, but paying $150 to enroll in Ramsey’s Financial Peace University really will change your life – it’s $150 now, but freedom down the road. In this program, he breaks budgeting and spending down in practical ways to help you reduce what you owe and build for your future. You’ll start with creating an emergency, then go through eliminating debt and establishing a retirement plan. As you go through the program, Ramsey provides additional resources, like books and apps, and even has small groups near you so you’re not on the journey alone.

7 Baby Steps

Among other pieces of free advice, Ramsey provides a basic plan to start managing your money. Similar to his Financial Peace University, this step-by-step plan starts with establishing an emergency fund – just a $1,000 in a savings account. Then, you’ll pay off debt, establish 3-6 months income in your savings, then eventually build your wealth. If you struggle with where to start saving, this list is a great way to get you on your feet.

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