Don't ever pay a debt before buying food: Money guru's 4 rules for parents

A dad on $13.50/hr asked Dave Ramsey how to budget - and got a surprising response.

To millions, Money Man Dave Ramsey is the finance dad they never had.

Internationally known for his wise ways with money, the former bankrupt-now-millionaire regularly shares his hard-learned truths to help anyone who's struggling with debt and their budget.

This month, Dave heard from a single dad finding life very challenging on $13.50/hour.

Want to join the family? Sign up to our Kidspot newsletter for more stories like this.

RELATED: My problematic shopping habit saved my son from danger

"Worry about debt later"

Single dad, Marcell, 25, called into Ramsey's podcast with his dilemma. He shared that he is in regular employment of $13.50 (USD) an hour, but being solely responsible for two kids under four, it's simply not enough.

On top of that, Marcell has about $18 000 in student loan debt - and he doesn't know what to prioritise.

As usual, Dave was supportive, empathetic - but also practical, in his response.

"I think it's impressive if you just feed your kids, keep the lights on, keep the rent paid. Let's worry about the student loans later... You're a good man."

Dave then goes on to advise Marcell that to build a better life for himself in the long-run, he will need to work out how to increase his income. But for now, it's one foot in front of the other and owing money to others comes way behind caring for his family.

And he breaks it down into four main steps.

Introducing our new podcast: Mum Club! Listen and subscribe wherever you get your podcasts so you never miss an episode.

Dave Ramsey's budget advice. Image: iStock/Facebook

RELATED: Rich housewife says ‘don’t call me a stay at home mum’

Dave Ramsey's Four Walls

Dave consolidates his advice on clips of the conversation with Marcell.

He writes: 

"If you can’t pay all of your bills and are having a hard time making ends meet, these Four Walls should be what you spend your money on first (and in this order):

"1. Food 2. Utilities 3. Shelter 4. Transportation

"Then, if you have money left over, prioritize the rest of your expenses after those first four are taken care of."

Dave further explains, "I call these budget categories the “Four Walls.” Focus on taking care of these FIRST, and in this specific order... especially if you’re going through a tough financial season.

"Cover utilities before you pay your rent or mortgage. This is because in most cases, your lights or water risk being shut off before you’d be evicted or foreclosed on.

"During a tough time, you’ve got to prioritize your expenses. Don’t ever pay a debt before you buy food.

"Pause paying extra on debts and save money while you weather the financial storm. Once you get your income up, you can resume working on getting out of debt."

Finally, in true Dave-style, he offers emotional support, adding, "And always remember this: You DO have what it takes to get to the other side of whatever situation you’re facing."

Do you find Dave Ramsey's advice helpful? Tell us in the comments on Facebook. And if you're struggling, please reach out someone:

Originally published as Don't ever pay a debt before buying food: Money guru's 4 rules for parents