Dave Ramsey says you’re wasting $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 pointed out that spending just $13.70 a day on unnecessary purchases adds up to that much in a year.

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

The impact of small expenses

Ramsey’s tweet puts into perspective how easy it is to lose track of your spending when you’re making 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 multiply that by 365 days and 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 big difference. Many people think they don’t spend much every day, but once they take a closer look, they realize how many small purchases are eating into their finances.

Simple changes, big results

Ramsey offers straightforward advice for cutting unnecessary spending: Be intentional. Make sure the money goes toward something worthwhile, like paying off debt, saving for a down payment on a house, or setting up an emergency fund. Create a budget, track expenses and monitor it.

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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 cushion of savings. It could help pay off high-interest debt, contribute to retirement, or allow you to take a vacation without going into credit card debt.

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Ramsey often states that “your number one tool for building wealth is your income,” emphasizing that true financial success comes from prudent saving and investing, not debt to lenders like Sallie Mae or Best Buy.

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

He challenges the idea that debt is normal, specifically evoking the flawed thinking behind student loans and credit card rewards. He humorously says, “Oh, Sallie Mae’s been with us for 15 freaking years in our spare bedroom,” highlighting how much student debt can weigh on people.

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