I’m a Gen Zer: I Follow These Dave Ramsey Tips for Saving Money

Dave Ramsey might be a baby boomer, but the syndicated radio host and bestselling author has the ear of America’s youth. The celebrity personal finance guru launched his namesake radio show in 1992 — five years before the oldest Gen Zers were born.

But that doesn’t mean young adults are tuning out.

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A GOBankingRates survey of more than 1,000 adults found that nearly 1 in 5 Gen Zers trust Ramsey the most out of the top money experts. Grant Cardone, Ramit Sethi and Robert Kiyosaki barely even registered — none managed to attract even 3% of the study’s respondents. Just under 8% picked Suze Orman, and nearly 12% trust Warren Buffett. While “none of the above” took the top spot with more than 55% of the vote, Ramsey is Gen Z’s go-to source of personal finance knowledge .

GOBankingRates spoke with two Gen Zers who applied Ramsey’s advice to their own financial lives, and they explained how the tips and tactics from his books, radio show and podcast have helped them save money in real life .

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Caleb Dueck is the director of operations at Sperry Honey , a family-owned honey, beeswax and beekeeping company that has been in business since the 1920s. Dueck manages the business’s website and marketing channels, handles customer support, and writes for the website’s blog.

Born in 1999, Dueck has used Ramsey’s teachings to whip his own finances into shape.

“Dave Ramsey’s Baby Steps have given me structure within my finances, which I think is discounted when people critique Dave’s financial advice,” he said. “The topic of finances can be chaotic, and having a proven plan makes my debt-free goal more attainable.”

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Take Baby Steps To Eliminate Debt While Saving Money

Dueck’s goal was to save, but he couldn’t do that with the debt he’d accumulated hanging over his head. So he began following Ramsey’s “Baby Steps,” a seven-part plan to balance eliminating debt with saving for the future.

“Even though I disagree with some of his minute advice — e.g., mutual funds over index funds — using the Baby Steps has eliminated the mental gymnastics I would need to create my own financial plan,” Dueck said. “The significance of structure should not be understated, especially for those new to financial literacy.”

Here are Ramsey’s seven Baby Steps.

1. Save $1,000 for a starter emergency fund.
2. Use the snowball method to pay off all debt except your mortgage.
3. Fill out your emergency fund with three to six months’ worth of expenses.
4. Invest 15% of your household income into a retirement fund.
5. Put away money for your children’s college fund.
6. Pay off your house early.
7. Build wealth and give to charity.

An Entrepreneur Put 2 Classic Ramsey Systems to the Test

Ozzy Akpek is the CEO of Smile Art Design , which creates custom wall art from personal photos. Although the young Gen Zer managed to launch his own business, he needed some assistance managing his personal finances.

“I’m a 25-year-old following Dave Ramsey’s money-saving plan, and let me tell you, it’s been a game-changer,” Akpek said. “Dave’s tips are like cheat codes for my finances. Two things that have really helped me are his Gazelle Intensity approach and the envelope system.”

Sprint Away From Yesterday’s Debt To Start Saving for Tomorrow

Like Dueck, Akpek had to eliminate debt before he could begin working toward his savings goals, and he used a fast-paced Ramsey plan to get there.

“With Gazelle Intensity, I attacked my $8,000 credit card debt head-on, budgeting every penny and picking up extra shifts,” he said.

On the Ramsey Solutions blog, the concept is summed up with this: “When you’ve gone into debt, you’ve cosigned on a loan, or you’ve found yourself up to your eyeballs in money problems, you need to work as hard to get out of debt as a gazelle works to run from a cheetah hunting it down. And guess what? If the gazelle doesn’t run like heck to get away, then he’s going to be the cheetah’s lunch — yikes!”

For Akpek, it was a race that proved to be worth the sprint.

“It was intense, but in just 15 months, I was debt-free,” he said.

With that out of the way, he was able to pursue his aspiration to save money.

Stuff Cash in Envelopes To Meet Your Savings Goals

With his $8,000 high-interest debt in the rearview mirror, Akpek was ready to start building his savings, and he turned to Ramsey’s envelope system to do it.

“The envelope system might sound old-school, but it’s genius. I swapped my debit card for cash in labeled envelopes, like groceries and gas. This way, I’m mindful of every dollar I spend. Seeing my savings grow and debt shrink keeps me motivated,” Akpek said.

“Dave Ramsey’s advice might not be for everyone, but for me, it’s been like a financial jetpack. His emphasis on budgeting and his Baby Steps approach have given me control over my finances. Plus, living debt-free feels liberating. Did you know that 78% of people who follow Ramsey’s plan pay off all their debt within 18-24 months? And with 55% of Americans having less than $10,000 saved for retirement, I’m proud to be beating that statistic thanks to Dave’s guidance. I’m excited to see where these smart money habits take me next,” Akpek explained.

Methodology: GOBankingRates surveyed 1,008 Americans aged 18 and older from across the country between March 26 and April 1, 2024, asking 20 different questions: (1) Has a lack of financial literacy caused you to struggle with your money?; (2) Which current money hot topic is most confusing to you?; (3) Which money expert do you trust most for teaching you the basics of money?; (4) Since the pandemic started in 2020, do you think you have become smarter about your money?; (5) What poor money habits did you learn during your childhood? (select all that apply); (6) What poor money habits did you develop in your early adult years? (select all that apply); (7) What poor money habits have had an impact on your marriage/partnership? (select all that apply); (8) What poor money habits do you worry about passing on to your kids? (select all that apply); (9) What aspect of buying a car do you find most challenging/confusing?; (10) What aspect of buying a house do you find most challenging/confusing?; (11) What aspect of paying off debt do you find most challenging/confusing?; (12) What concerns you most about planning for retirement?; (13) What best describes your feelings about investing?; (14) How much have you saved in the last year?; (15) How much debt have you acquired in the last year, not including mortgage debt?; (16) Do you currently bring in enough money to cover your bills?; (17) How much do you think about your financial status?; (18) What best describes your feelings about managing your money?; (19) What is your monthly car payment?; and (20) How much income do you think is needed for a middle-class family to live comfortably?. GOBankingRates used PureSpectrum’s survey platform to conduct the poll.

This article originally appeared on GOBankingRates.com : I’m a Gen Zer: I Follow These Dave Ramsey Tips for Saving Money