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Dave Ramsey is an American author, motivational speaker, financial broadcaster, television personality, AND businessman. He was very rich, went broke, became rich again, and has helped millions of people improve their finances with the experience he has gained throughout his life.

So, here are eight of his best financial tips that change your financial life for good.

1. Know Where You are Headed 

On his website, Dave Ramsey described people who don’t plan their spending with the following quote: “The trick in most people’s lives is that they don’t even identify where they want to go, they don’t even know if they’re getting there. That’s called being a child. Adults devise a plan and follow it. Children do what feels good.”

Planning your expenses is just as important as earning the money.

2. Make Painful Changes

Once you are done with mapping out a clear plan for how to handle your money, then it’s time to start making some changes. According to Dave Ramsey, positive change is quite often a painful process. For a lot of people, he said, “Not until the pain of the same is greater than the pain of change will you embrace change.”

You have to prioritize your spending and do away with irrelevant buys, but this might affect your lifestyle significantly. But then again, it’s not smart to keep doing the same thing and expecting different outcomes.

3. Practice Serious Money Management 

Now your plan is set, and you have embraced change. But as soon as your money arrives, make sure you know where it’s going and stick to your written plan. About this, Dave Ramsey said, “You must gain control over your money or the lack of it will forever control you.”

4. Follow Dave’s Budgeting Process 

Dave Ramsey has broken down a budgeting process on his website that can help you give purpose to your every dollar.

I. Find your total income.

II. List all expenses, from regular bills to incidentals.

III. Adjust expenses until they are equal to or below your income.

IV. Track your expenses throughout the month and adjust behavior accordingly.

5. Do Not Bite More Than You Can Chew 

If you are trying to keep your lifestyle in check, you can always try harder. But if you are not, then this tweet by Dave Ramsey is for you: “Key to winning with money. Live on less than you make! Act your wage. Quit spending like you are in Congress.”

6. Embrace Frugality in Your Spending 

Unless it’s a matter of life and death, you should never buy something you can’t afford. Dave Ramsey said, “If you will live like no one else, later you can live and give like no one else.” Try hard to always resist the urge to spend carelessly.

7. The Borrower is a Servant to The Lender

On living on expenses that are beyond your income, Dave Ramsey said, “When people try to borrow their way into a position in life or an ownership of stuff in life that they really can’t afford, then they struggle the rest of their lives paying payments on stuff.” He also said, “If you can’t pay for it in cash, in total, on the spot, cash on the barrelhead, you can’t afford it — whatever it is, your car, your clothes, your groceries.”

8. Invest! Invest! Invest!

The most important part of every successful financial plan is an investment. Dave Ramsey supports this by stating clearly: “When you are investing, you are living your life more in the future than in the present.”

These tips have been proved to come in handy in every facet of life. It’s never too late to embrace them in your daily activities.

Now if you have any favorite Dave Ramsey tips, just let me know in the comments down below!