Dave Ramsey Says You’re Losing $5,000 a Year If You “Spend $13.70 a Day on Things You Don’t Need”

Financial expert Dave Ramsey has a clear message for anyone trying to figure out why they’re not making progress with their money: You could be wasting $5,000 a year on things you don’t need. In a recent tweet, Ramsey noted that spending just $13.70 a day on unnecessary purchases adds up to that much in a year.

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It may not seem like much at first glance; after all, what is $13.70 a day? Maybe it’s coffee, a packed lunch, or something you picked up online without a second thought. Ramsey’s point is that those small everyday expenses can quietly drain your bank account over time, preventing you from reaching bigger financial goals.

The impact of small spending

Ramsey’s tweet puts into perspective how easy it is to lose track of your spending when it’s done in small amounts. Many people don’t realize how quickly those “small” purchases can add up. $13.70 a day may not sound like much, but multiplied by 365 days, you’ve spent $5,000 on things you probably didn’t need.

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For someone struggling to save for an emergency fund, pay off debt, or build long-term wealth, that $5,000 could make a significant difference. Many people think that they are not spending much on a daily basis, but once they take a closer look, they realize how many small purchases are eating into their finances.

Simple changes, big results

Ramsey offers simple advice for cutting unnecessary expenses: Be determined. Make sure your money goes toward something worthwhile, like paying down debt, saving for a down payment on a house, or building an emergency fund. Create a budget, track your spending and keep it under control.

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What could you do with $5,000?

Think what an extra $5,000 a year could do for you. Maybe it’s the difference between living paycheck to paycheck and having a savings cushion. It could help you pay off high-interest debt, contribute to retirement, or allow you to take a vacation without incurring credit card debt.

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Ramsey often declares that “Your number one tool for creating wealth is your income,” emphasizing that true financial success comes from saving and investing wisely, not going into debt with lenders like Sallie Mae or Best Buy.

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Ramsey examines how common it has become to rely on debt to finance desires and investments, noting that “when you give your income to someone else, you no longer have it.”

He challenges the idea that debt is normal, particularly calling out the flawed thinking behind student loans and credit card rewards. Humorously, he says, “Oh, Sallie Mae has been with us for 15 years in our spare room,” highlighting how long student debt can weigh people down.

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This article Dave Ramsey Says You’re Losing $5,000 a Year If You “Spend $13.70 a Day on Things You Don’t Need” originally appeared on Benzinga.com

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