Should You Follow This ‘Helpful Tip’ From Dave Ramsey to Simplify Your Financial Life?

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You could effortlessly improve your finances with this Dave Ramsey tip. 

If you’re like many people and you find managing every aspect of your finances to be stressful and confusing, finance expert Dave Ramsey has a helpful tip for you. His suggestion could both simplify the process of managing your money and increase the chances you’ll be successful at accomplishing important financial goals.

Here’s what Ramsey suggested you do, along with some advice on why following this tip could be extremely helpful to your overall financial situation.

This Ramsey tip can make life a lot easier

Ramsey offered a “helpful tip” on the Ramsey Solutions blog, which relates to putting money away for financial goals.

“Set up a direct deposit for your savings,” he suggested. “If you’re putting money away for your emergency fund or retirement investments, it makes life a whole lot easier if you set up a direct deposit. No moving money over (and maybe forgetting about it). Just a streamlined, organized process for getting ahead on your savings goals!”

This advice is really easy to follow. If you’re saving money for emergencies or for purchases you’ll need to make in the next five years or so, you can sign into the website for your online savings account and arrange to have a set amount automatically transferred into your accounts on the day you get paid (or shortly after). If you’re saving for retirement, you can do the same with your brokerage accounts.

The money will move automatically to where it needs to be in order for you to accomplish your objectives and it will do so before you get the chance to use it for anything else. So, you can rest assured you’re on track for your goals as you won’t ever miss an automated contribution.

Here’s why automating your savings can be so successful

Ramsey’s advice is really great on this issue. Automating your savings really does make your life a lot easier, and it also makes it far less likely you’ll be derailed from your goals.

The reason is simple. Most people just stick with the status quo. If you’ve set up an automated investment to your savings account and your brokerage account, it takes a lot more work and effort to cancel that transfer and not contribute. Chances are very good you aren’t going to want to go through the hassle — especially since you’ll have lots of time during the process of changing your contributions to think about how doing so will cause you to get off track from your objectives.

It’s also pretty easy to get used to living on what you have left in your checking account if you’ve automated the process of saving for retirement, emergencies, and other purchases. You’ll just know you can spend whatever is left on other things and won’t have to worry about trying to save enough to move money to your brokerage or savings accounts at the end of the month.

If you haven’t already followed this Ramsey advice, do it now. Figure out what you need to invest and save to accomplish your objectives, and set up your automated transfers today. You’ll be very glad you did as you see your brokerage and savings account balances growing.

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