Dave Ramsey: 9 Non-Emergencies You Should Not Be Wasting Money On

Emergencies are, like taxes and death, a fact of life. You will probably encounter many expensive situations

Being fiscally smart means realizing when you need to spend money and when you don’t, and saving for that proverbial rainy day.

But how do you classify an emergency versus a non-emergency? Dave Ramsey breaks it down into expected and non-expected expenses. Expected are your monthly bills, routine maintenance, and taking care of your children’s needs. Not expected? Spur-of-the-moment vacations, the latest gadget, and losing your job. These tips come straight from Ramsey’s website.

Who Is Dave Ramsey?

Dave Ramsey is an American radio personality and money guru who helps people make smart financial decisions through simple steps. He has published several books and is a former Fox News show host.

Ramsey has been offering actionable advice for decades, detailing how to ditch the debt and start saving for a secure future. He also cautions people how not to spend their money. A recent post on Ramsey Solutions defines emergencies vs. non-emergencies.

1. Newer Technology

It can be tempting to upgrade your phone or tablet to the latest and greatest new release when they come out, but the reality is it’s not an “emergency.” Even if your phone starts acting up or dies outright, that doesn’t mean you need to get the newest model.

If you’re looking to save money, don’t touch your emergency fund for this purpose. Instead, buy a refurbished or lower model. It may not offer the most up-to-date features, but how often do you really use those anyway?

2. Upgrading Your Vehicle

At a certain point, you may find that your car needs replacing. Perhaps it costs more to fix than it’s worth, or it simply cannot be fixed. This is a good reason to use your emergency fund.

What’s not a good reason? Simply upgrading your already decent car because you want something newer and shiny, with all the workings of a spaceship inside.

3. Vacation

After working hard for months, or even years, you may find that you want to go on vacation. And that’s fine, you should. But not if it means dipping into your emergency fund. Even if it’s the deal of the year? Even then.

Instead, set up a savings account and establish a reasonable timeline that you can save enough to take the vacation of your choice.

4. Regular Monthly or Maintenance Expenses

The rule of thumb is to avoid spending your emergency fund on expected expenses. Your regular monthly bills — rent, utilities, insurance — are not considered emergencies. Neither is your regular car or home maintenance.

Barring the loss of a job, which is an emergency situation, you should never dip into your savings to pay for these items.

5. Concert Tickets

Oh, my God! The artist whose music you love more than any other has just announced a concert in your area. Of course, you’re going to dip into your emergency fund, right?

Don’t do it. It might only seem like a few hundred dollars to you, but when a real situation arises, you’ll be up the creek.

6. Shopping Steals

Shopping can be a very impulsive habit and many people think nothing of taking a few bucks out of their savings to do so. Yet, even if something you have had your eye on for months — the latest electronics, an expensive pair of shoes — is now on sale, it’s best not to buy it unless you absolutely need it.

And if you do, don’t touch that emergency fund. Seriously. You’ll need it one day and it’s not for shopping.

7. Holiday Shopping

One of the most significant expenses of the year happens to be holiday shopping. Sometimes, people just spend much more than they ever anticipated and think it’s no big deal to cover the rest with their savings.

Instead, be smart. Outline exactly what you’re going to buy for your children, family, or friends, and stick to that list. More importantly, stay within your means. There’s no reason to go broke during the holidays.

8. Doctor Visits

Medical emergencies notwithstanding, a routine visit to the doctor should be planned and accounted for financially. Typically, wellness checks are 100% covered by insurance plans, but there may be a few that are not.

Do your best to pay these expenses out of pocket or arrange for an interest-free payment plan, where available.

9. Back-To-School Shopping

Like all of the others, back-to-school shopping is considered an expected expense. You know your kids will be starting school and they will need clothes or school supplies. This is something you should prepare for ahead of time.

And pro tip? You don’t have to buy them all new clothes for the upcoming year. A few new outfits, if you choose, will suffice, unless they went through a crazy growth spurt over the summer.

Importance of an Emergency Fund

An emergency fund is so, so, so important, because when life smacks you in the face, it does so with little to no warning. Having cash on hand to handle these situations can make them less dire.

The general rule is to have at least three to six months’ worth of your typical expenses saved up. If you find that you can’t reach this milestone, you might want to take a look at your budget and see where you can divert funds.

Evaluating Your Budget

Your budget depends on your monthly expenses. Most people tend to live a little outside their means and may not have much left over at the end of the month. However, it pays to live simply sometimes.

Look at items on your budget to see where you can pay down debts, especially those credit cards, and make more room to save. Chances are you’re paying for some added expenses you aren’t even aware of and eliminating them is just one more step to financial freedom.