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Quick Tips To Avoid Money Problems

While most people have a variety of concerns and questions regarding their finances, Dave Ramsey has found that there are a handful of tips that get at the root of most monetary issues.

Ramsey, who has been doling out financial advice on his radio show for the past 15 years, sat down on The Early Show to offer a few of his favorite tips.

To avoid finding yourself in debt, always use cash, he suggests. "When you pay cash, the cash hurts," Ramsey said. "You spend less, and you stay away from plastic debt." Ramsey suggests using a debit card, as you can do everything with a debit card that you can with a credit card — except go into debt.

Ramsey recommends staying on top of your finances. If you become "fired up," you will start to write down a budget for yourself and start setting goals. Be proactive and be deliberate with your decision-making.

Tackling financial goals is tough, and you shouldn't go at it alone. Ramsey said, "If you're single, you need an accountability partner, somebody that loves you enough to hurt your feelings for your own good. If you're married, that's kind of built in."

A common suggestion that Ramsey gives his radio-show callers is to sell their car — even if the family has two or three children. Most people never even consider selling their car. Sell the car you are making monthly payments on and either buy a used car that you can pay for in cash upfront or figure out a way to share a car or take public transportation.

Finally, Ramsey believes that you need to remember Murphy's Law: If it can go wrong, it will. "Keep three to six months of expenses in place," Ramsey said. "And that will keep the black cats away from the door."