Dave Ramsey’s Keys to Saving Money

Commitment to our readers

The GOBankingRates editorial team is committed to bringing you unbiased reviews and information. We use data-driven methods to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. Learn more about our editorial guidelines and our product and service review methodology.

20 years
We help you live richer

Trusted by
Millions of readers

Money expert Dave Ramsey wasn’t always rich. He made it big as a real estate investor in his twenties, but had built his fortune on debt. He went bankrupt in 1988.

Ramsey and his wife spent the next few years trying to regain control of their money. They learned a lot about saving and spending wisely, and Ramsey has dedicated his life to helping others do the same.

In a recent interview with Tennessee’s Knoxville News Sentinel, he talked about one of his favorite topics: saving instead of spending. Here are his top tips.

Look for insurance savings

Insurers offer various discount programs that policyholders are not always aware of.

You may be eligible for a good driver or safe vehicle discount on your car insurance, or a recent renovation discount on your home insurance.

First, contact your agent if you have one, or the insurance company directly if you don’t have one. If that doesn’t work, you can always look around.

Simplify your phone plan

A recent study by JD Power shows that the average wireless customer spends $141 a month on service. Ramsey believed it was possible to pay less.

He urged subscribers to lower their bills by “eliminating extras like expensive data plans, phone insurance and useless warranties.”

First, look at your bill and determine what you don’t need. If you can’t live without something, call the provider to negotiate – or switch to another provider.

Prepare food and coffee at home

There’s a reason you see this advice everywhere. According to a numbers analysis by CNET, you can save between $307 and $736 per year by replacing your favorite coffee shop order with a homebrew option.

CNET also crunched the mealtime numbers. On average, making your favorite meals at home costs 50% less than ordering them to-go [7]. If you add shipping costs, it costs 75% less.

Simply eliminating two weekly delivered meals from your budget could save you $1,440 annually.

Switch from cable to streaming

Replacing cable TV with streaming services can save you hundreds, provided you choose your subscriptions strategically.

Subscribers in major U.S. cities spend an average of $74 per month on basic cable, or $147 per month if you add premium channels.

In comparison, ad-supported versions of basic streaming services like Netflix, Hulu, and Disney Plus cost $10 or less. If you don’t need ad-free experiences or live TV, you can get four services for under $40.

The key is to find out which services offer your favorite shows and only subscribe to the shows you need.

Tidy up your home

“Get rid of things you don’t need and are willing to let go of for the sake of your financial future,” Ramsey told Sentinel readers.

Yes, getting rid of things you already own can save you money! If you sell your unwanted possessions online or at a garage sale, those proceeds can be transferred directly to your savings account.

Your newly organized home will make it easier to see what you have. You’re less likely to spend money on something you “lost” only to find it again a week later!

More importantly, decluttering will make you a more conscious shopper.

Reimagine your vacation

Ramsey encouraged would-be savers to cancel their vacation to “find fun close to home.”

Since the average cost of a hotel room is $158 and the round-trip domestic flight is $382, it’s easy to see the benefits of cutting back.