Why every one of your dollars during coronavirus needs a name: Dave Ramsey

Your income is your biggest wealth-building tool

Editor's note: Money expert Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including "The Total Money Makeover." His radio show "The Dave Ramsey Show" is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Each week he answers a question about personal finance in his "Dave Says" column. 

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Dear Dave,

With COVID-19 and all the resulting economic problems, do you have any advice for what a young person can do to prepare for the future?

Kyle

Dear Kyle,

Regardless of the coronavirus or any economic situation that might arise, there are always a few smart, simple things people can do to protect themselves financially.

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The No. 1 thing is to live on a written, monthly budget. When you give every dollar a name and write it down on paper, you’re telling your money what to do, instead of scratching your head and wondering where it went.

Staying out of debt and saving as much money as possible are two other great ideas.

When you give every dollar a name, and write it down on paper, you’re telling your money what to do, instead of scratching your head and wondering where it went.

Remember, your income is your biggest wealth-building tool.

If you’re saddled with a bunch of debt, your money goes to creditors — not into your pocket.

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Saving prepares you for the future and all the unexpected things, both good and bad, life will throw at you.

Even though you’re young, investing is a key component in creating a stable financial outlook for yourself.

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In your twenties, just $100 a month invested properly in good growth stock mutual funds can make you a millionaire by the time you’re ready to retire.

Like I said, these are all simple things. But they’ll make a huge difference in your financial situation now and in the years to come!

—Dave

Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

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