If you feel like the cost of groceries is high, you’re not wrong.
The U.S. Department of Agriculture indicated that from 2020 to 2024, the all-food consumer price index rose 23.6%. This staggering price increase was due largely to a shift in consumer consumption and supply chain issues. Today, grocery prices remain elevated, and it’s become more expensive to put food on the table.
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Dave Ramsey, personal finance guru and host of “The Ramsey Show,” has been dishing out money advice for years. Some of his latest words of wisdom on Instagram are his “rice and beans” approach. While his advice can be applied to your grocery shopping, he doesn’t necessarily mean eat only rice and beans. Here’s what he said he really means.
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Short-Term Sacrifices for Long-Term Wins
Rice and beans are often considered a cheap or low-cost meal. But what Ramsey really means to say is that eating on the cheap represents a sacrifice.
“What it represents is so much more than a low grocery bill. It’s about short-term sacrifice for the long-term win,” Ramsey said. “You can do anything for a few months, even a few years, to set yourself up for a lifetime of success.”
By cutting back on unnecessary expenses and prioritizing your spending, you can put yourself on the right track financially.
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Live Below Your Means
Eating rice and beans also represents living on less money. Just because you might be able to afford more expensive things in life doesn’t mean you should.
“You have to live on less than you make in order to pay off debt, in order to save and invest, in order to be generous,” Ramsey said. “You can’t spend more than you make and end up anywhere except bankruptcy court.”
According to Clever Girl Finance, there are many steps you can take to live below your means, including making a budget, setting a financial plan and curbing your spending.
By always striving to live below your means, you can save money, invest, eliminate debt and maybe have some left to be generous with others. Learning to live below your means can save you from a lot of financial trouble.
Be Disciplined
Ramsey is a strong believer that taking control of your actions and discipling yourself is absolutely crucial when it comes to financial success.
“You’ve got to decide you’re going to do it. Day in and day out … and you are not going back,” he said. “You’re taking control of your actions and your life.”
In fact, according to Medium, having discipline when it comes to finances can make it easier to achieve your financial goals, reduce stress and enhance your financial security.
Take these motivating words from Ramsey and figure out how you can apply them to your life.
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Sources
U.S. Department of Agriculture, “Food Prices and Spending.”
Dave Ramsey, Instagram post
Clever Girl Finance, “How To Start Living Below Your Means.”
Medium, “The Power of Financial Discipline: Why It Matters for Your Future.”
This article originally appeared on GOBankingRates.com: Dave Ramsey Says His ‘Rice and Beans’ Advice Is About More Than a Low Grocery Bill — Here’s Why
