Learning Dave Ramsey Budgeting Principles

A post about Dave Ramsey budgeting principles and intentional money management.

I started following Dave Ramsey budgeting principles to create my monthly written budget. A budget, simply put, is a plan for how I am going to spend my money – with purpose.

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What is Zero-Based Budgeting?

Dave Ramsey advocates for zero-based budgeting: giving every dollar a job to do. Whether it’s spending, giving, saving or paying off debt. each dollar has a purpose. He calls it “being intentional with money“.

I find this idea intriguing. I’m a competent saver but I’ve often struggled with what to do with the money I save. It used to sit in a low-interest bank account. When I try to invest, impatience led me to poor choices. Now, I’m getting money goals based on the Baby Steps I’m on – hoping to steward what God gave me more wisely.

Household Budget Percentages

Another key principle is assigning percentages of my income to specific categories. For example:

10% for giving
15% for retirement savings

These percentages shift depending on which Baby Step I’m on. Someone paying off debt will allocate differently than someone saving for retirement or a house.

I’ve always tithed 10%, but for other expenses, I used price caps – like a daily lunch budget. Planning by percentages feels more balance and intentional.

How to Make a Budget in 5 Steps

Here’s how I apply Dave Ramsey’s method:

Step 1: List Your Income

Track all net income – what comes in after mandatory deductions. In Singapore, we don’t have withholding tax, so I budget for taxes as an expense. I also include my employer’s contribution to my Central Provident Fund (CPF) as an income because I want to tithe it, even though I can’t access it.

Step 2: List Your Expenses

Include both fixed and discretionary expenses. My categories look like this:

Tithing – 10%
Gifts – 2%
The Four Walls (top bills to cover)
- food – 5%
- utilities – 1%
- shelter – 10%
- transportation – 2%
Health – 5%
Insurance –
Extras – Entertainment, fun money, restaurants, etc. – 1%
Month-specific expenses – Birthdays, anniversaries –
Sinking funds – Vacations, seasonal purchases, annual bills –

Creating this list took time. I revised it multiple times in the first month. I suspect I may have to adjust again when I start work. I’ve also added an annual budget to:

Remind myself of once-a-year expenses
See annual totals across categories

Step 3: Subtract Expenses from Income

Once expenses are listed, subtract them from income. If there’s extra money, reallocate it toward my goals. – vacation, big purchase, debt repayment, or investment. The goal is to assign every dollar a job, so nothing sits idle or gets spent impulsively.

Step 4: Track Your Transactions

A written budget is just a plan. To implement it, I track every income and expense. It is not easy to do this month after month. I’ve simplified by limiting payment methods – no credit cards unless necessary. I use debit cards, cash, bank transfers, and GIRO.

I built a Google Sheets tracker that updates my budget sheet automatically. It’s mobile friendly, so I can log spending on the go. Tracking brings awareness – and helps me adjust.

Step 5: Make a New Budget Before the Month Begins

Each month deserves a fresh budget. It’s usually a quick update, but it allows from month-specific expenses. I’ve scheduled time in my calendar for this revision.

Free Download: Dave Ramsey Budgeting Checklist

Want to put these steps into action? I’ve created a printable checklist to help you build your zero-based budget each month. It’s simple, mobile-friendly, and designed to keep you intentional with every dollar.

Dave Ramsey Budgeting Checklist PDF Download

My Budgeting Setup

I use Google Sheets for both budgeting and tracking. My tracking sheet feeds into the budget sheet, so I can see if I’m on track. It’s simple, mobile friendly, and saves me from hoarding receipts.