“What to do isn’t the problem; doing it is. Most of us know what to do, but we just don’t do it. If I can control the guy in the mirror, I can be skinny and rich.” ~ Dave Ramsey
Greetings all!
Would you like some financial advice from a well-known money
expert? I enjoyed these suggestions from Dave Ramsey:
1. Eliminate debt before you invest: Ramsey does
exclude mortgage, which makes sense since most people cannot afford to buy a
home with cash.
2. Harness the power of the snowball effect: Eliminate
your debt in order of smallest to largest so you can build momentum, close
smaller outstanding debts, and boost your confidence. Side note: I think this also works as a productivity hack!
3. Build an emergency fund before you build wealth: Financial
experts recommend having at least 3-6 months of your living expenses as a
cushion. Totally agree with this advice!
4. Give 15% of every paycheck to your future self by
using a tax-advantaged account (e.g., 401k with employer match or IRA/ROTH in the United
States). I love the idea of having my future self thank my present self. Also, I like the advice I read elsewhere: if you get a bonus or a salary increase, invest or save it if you can. Since you were used to your previous level of earnings, can you allocate the extra to your future self? Wouldn't it be nice if our future selves visited us in the present to disperse life wisdom?
5. Keeping up with the Joneses is an unwinnable game – to
paraphrase, do not buy things you do not need with money you do not have to
impress people you do not like.
6. Utilize money-saving technology, such as budgeting and
coupon/cashback apps, automatic savings (e.g., weekly transfers from your
checking to your savings account), or lowering your thermostats.
7. Go low tech: I always balance my bank account and try to cancel and/or completely avoid unnecessary subscriptions and
gadgets.
8. Have a plan when shopping: The article talked about grocery-shopping but I think this is good advice for any kind of shopping. Be very careful with your impulses - shopping or otherwise - when you are excited, bored, sad, angry, and/or intoxicated! I did some research and did
you know that:- 84% of all shoppers have made impulse purchases.
- The average shopper will make an average of 3
unplanned purchases in 4 out of every 10 store visits they make.
- Almost 50% of all impulse purchases are regretted. I was actually surprised that this number is not higher.
9. Continue educating yourself financially, put into practice what you already know, and work with a financial
professional.
Reflecting on the quote in the beginning of this post - “What to do isn’t the problem; doing it is” - I thought it applies to so many areas of our lives. But for now, how about just balancing your checking account?
Sources:
What did you think? Drop me a line!
