Dave Ramsey says: The more things change, the more they stay the same

Dear Dave,

My best friend from college and his wife are always talking about how much your teachings have helped them with their finances. I was wondering if you have any suggestions for single people when it comes to getting control of their money and managing it wisely.

Nate

First step to getting control of your finances is making a budget

Dear Nate,

Honestly? The first thing I’d say is the very same thing I say to married couples — spend less than you make, and live on a written monthly budget. This means sitting down at the end of each month and writing down all your expenses and income for the upcoming month on paper. Give every dollar a specific job to do, then spend everything, down to the last penny, on paper before the next month actually begins.

I know, a lot of folks hear the word “budget,” and their brains immediately turn off. They assume the process will be painful, boring and complicated. But when you stop to think about it, budgeting really isn’t difficult. All it takes is basic math skills and a few minutes of your time. Think about it. Some expenses, like your mortgage payment or rent, will be the same. If you have a car payment, it should remain constant, as well. Things like utilities and groceries may fluctuate a little based on the season, but you can estimate these pretty accurately by looking at past months.

I’d also recommend finding a mature family member or friend to help you along, and function as an accountability partner. This person should also be good with money, and your relationship should be strong enough that they’re not afraid to call you out, or hurt your feelings a little, if you start acting irresponsible with your cash. In your case, maybe the friend who turned you on to my principles for handling money.

Sit down, just the two of you, once a month and talk about your finances. You can even go over your income and budget line by line if it helps. The point is to get support from someone who cares about you, has experienced financial success and is willing to hold you accountable for the financial decisions you’re making.

Great question, Nate. You can do this!

— Dave

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