Should You Try Out These 5 Dave Ramsey Money Hacks?

Could these money hacks make a difference in your finances?

Figuring out the best way to manage your financial affairs is a challenge for many people. But finance expert Dave Ramsey has some advice. Specifically, Ramsey has recommended five money hacks he believes people should try out if they want to grow their wealth.

Here's what Ramsey suggests, along with some tips on whether you should follow his advice and how to do it.

1. Create a monthly budget every month

Ramsey believes that budgeting is the most important money hack of all, because without a plan for your money, you're not going to be able to take control over your financial life.

"Making a plan for your money (aka budgeting) is how you go from wondering where your money went to telling it where to go! It puts you in the driver's seat, calling the shots," Ramsey said.

This hack is a good one because it really is important to make conscious decisions about spending -- and your habits do have to change each month to account for special events or irregular expenses. So, making a monthly budget can allow you to use your money more wisely.

You can do this in a number of different ways, though. While Ramsey generally recommends giving every dollar a job, you can also adopt a simpler approach such as a 50/30/20 budget. That type of budget is easier as you simply keep fixed expenses to 50% of your income or less, save 20%, and spend the rest on wants. You don't have to account for each dollar if you don't want to.

2. Track all of your spending

Ramsey also recommends tracking every single transaction you make. "Every time you spend or make money during the month -- track it," he urged.

This is also a great idea, as tracking your spending both makes you more conscious of where your money is going and helps to ensure you are sticking to your budget. This is especially helpful when you're just starting to take control of your spending -- you may not want to do it forever.

There are apps that allow you to do this process easily by linking your credit card and bank account, but if you're finding you end up spending too much, try physically writing down each purchase as this will make you think more before you buy.

3. Make sure you're budgeting for your goals

Ramsey's third money hack is to make sure you prioritize your financial goals in your budget. This includes not just long-term and important goals like saving for retirement, but also things like budgeting for a vacation you want to take or new books you want to buy.

Following this advice can be very helpful because you should make sure you have room in your spending plan both for the things you need and the things you want. You can have a line item in your budget for whatever your favorite hobbies are so you can spend guilt free.

4. Avoid overspending on insurance

Ramsey recommends checking your insurance policies to make sure you have enough coverage but not too much. And he suggests getting insurance quotes regularly to avoid overpaying.

This is great advice too, because you need to have insurance to protect your assets but you don't want to waste money on premiums when you could find more affordable coverage elsewhere.

5. Reducing impulse spending

Ramsey's fifth hack has to do with not making impulsive purchases, and he offers a few tips to stop doing that like deleting shopping apps from your phone or setting a time that you will think about a purchase before you make it.

Following this suggestion can be a great money hack too. Impulse buys are often made based on emotion in the moment and you end up regretting them or they don't bring very much value to your life. To make sure you're using money as wisely as possible, consider taking Ramsey's suggestion and really taking the time to consider whether something is worth it.

A 24-hour rule is one way to do that -- you'll simply wait 24 hours when you see an item you're thinking about buying on impulse. If you still want it later, you can go back and buy it. But you may just find that it's no longer attractive after sleeping on it.

Each of these suggestions are pretty good ones, especially when modified to meet your specific needs. So, why not give these hacks a try and see if they make managing your money easier for you.