5 Things to Spend Money On to Be Happier, According to Dave Ramsey

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Most people think happiness is just a credit card swipe away. A shiny new gadget, the latest car, or another splurge you hope will finally make you feel good. But according to personal finance expert Dave Ramsey, buying more stuff doesn’t create lasting peace—it often just creates more stress.

Ramsey teaches that how you spend your money is just as important as how much you have. When your spending aligns with your values and goals, you experience a kind of satisfaction that no impulse buy can match.

In this article, we’ll walk through five key areas where Ramsey believes spending can make you happier. These aren’t random purchases; they’re intentional investments in your future, your freedom, and your peace of mind.

1. Invest in Experiences That Reflect Your Values

It’s easy to assume buying more things will fill the gap when life feels dull or stressful. However, research consistently shows that experiences bring more lasting satisfaction than possessions. They create memories, deepen relationships, and reinforce who you are and what matters most to you.

Dave Ramsey agrees but with an important caveat. According to New Trader U, Ramsey acknowledges that while money can buy fun, it can’t buy true happiness. What it can do is help you invest in experiences that align with your values and strengthen your bonds with family and friends.

Whether it’s a family vacation, an educational trip, a weekend spent volunteering, or simply taking a class that feeds your curiosity, the key is planning. Ramsey is clear that these experiences should be purchased debt-free and within a budget you’ve set in advance. That way, you can enjoy them fully without worrying about how you’ll pay for them later.

A 2014 study published in the journal Psychological Science reinforces this idea, showing that people feel happier when they spend money on experiences rather than material goods. Positive memories last longer and contribute to your overall well-being.

Quick Tip: Set aside a small monthly fund dedicated to experiences. Even $50–$100 a month adds up to a meaningful adventure or learning opportunity every year—without sabotaging your financial stability.

2. Make Smart Long-Term Investments for Lasting Freedom

One of Dave Ramsey’s core beliefs is that true financial peace starts with thinking long-term, not chasing quick wins. Instead of gambling on trends or trying to time the market, Ramsey recommends a steady, disciplined approach to investing that transforms anxiety about money into confidence about the future.

Ramsey’s strategy is simple but powerful: consistently invest a percentage of your income into retirement accounts and growth-focused mutual funds. The goal isn’t overnight wealth but the freedom that comes from knowing your financial future is secure.

Some of the most common vehicles he recommends include:

Roth IRAs (tax-free growth)
401(k) accounts with employer matches
Simple index funds that track the market over time

This method harnesses the power of compound growth, so even modest contributions can grow into substantial assets over decades. And it does more than build wealth; it reduces financial anxiety because you know you’re taking action today that will protect you tomorrow.

Ramsey often points out that the psychological benefits kick in immediately. When you have a plan and stick to it, your relationship with money shifts. You feel more in control, more optimistic, and less pressured to spend impulsively.

Action Step: Automate your investing. Set up an automatic transfer, say 10–15% of every paycheck, into your retirement or brokerage accounts. This simple habit keeps you consistent without requiring constant willpower.

3. Buy Books and Learning Tools to Grow Your Financial Knowledge

Dave Ramsey has always been clear on this point: your income is your most powerful wealth-building tool, and the surest way to grow it is to invest in knowledge. Rather than spending on things that fade or break, Ramsey recommends directing money toward education and personal development.

According to New Trader U, he sees books, courses, certifications, and other learning resources as some of the highest-return purchases you can make. Unlike material possessions, knowledge compounds over time, expanding your earning potential and your confidence.

When you spend intentionally on education, you gain:
Clarity about where you stand financially
Competence in managing money and making better decisions
Confidence to pursue bigger goals without fear

Ramsey often points out that learning isn’t just about financial literacy; it’s about creating options and opportunities that would otherwise stay hidden. From self-paced online classes to deep-dive podcasts, every new skill becomes a permanent asset no recession or crisis can erase.

If you want to start small, consider his bestseller: The Total Money Makeover by Dave Ramsey. It’s a clear, step-by-step guide to getting out of debt and building wealth, perfect for beginners and seasoned savers alike.

Tip: Set aside a small monthly budget for books or courses. Even $25 a month adds up to a library of resources that can transform your mindset and your money.

4. Choose Reliable Used Cars You Can Afford Outright

Dave Ramsey doesn’t mince words about car payments: if you can’t buy the car in cash, you can’t afford it. His philosophy challenges the cultural obsession with shiny new vehicles and the massive debt that usually comes with them. Ramsey frequently highlights that even wealthy people typically drive paid-off, reliable used cars, not luxury models fresh off the lot.

Why does he care so much about this? Avoiding car loans provides:

Freedom from monthly payments—more money stays in your pocket
Less stress about repossession or job loss
Lower insurance premiums since you’re not financing
Total control over your vehicle—you can sell or trade anytime without asking a lender

He also warns about the depreciation trap: the minute you drive a new car off the lot, it can lose up to 20% of its value. When you finance, you’re often paying interest on something that’s dropping in worth faster than you’re paying it off.

Tip: Start a sinking fund today: a dedicated savings account where you set aside a fixed amount every paycheck. Over time, this fund grows until you can pay cash.

Reliable used models to consider:

Toyota Corolla or Camry
Honda Civic or Accord
Mazda3
Ford Fusion

These cars have reputations for long life, low maintenance, and strong resale value. A paid-for car doesn’t just get you from point A to B. It gives you peace of mind knowing you own it outright, no matter what life throws your way.

5. Own Your Home Free and Clear for Real Peace of Mind

Dave Ramsey has a saying that perfectly sums up his view on housing:

“Debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice.”

Why? Because owning your house outright isn’t just about saving money. It’s about total freedom and security.

A paid-off mortgage:
Eliminates your biggest monthly expense, freeing up cash for investing, giving, or enjoying life.
Reduces stress, because no bank can ever take your home away.
Creates emotional stability—the pride of knowing you own every brick and beam.

According to Ramsey, nothing compares to the peace of mind that comes from knowing your family’s shelter is secure no matter what happens in the economy. Homeowners without a mortgage often report significantly lower stress and greater confidence about their future.

Strategies to get there faster:

Make extra principal payments every month. Even a small amount chips away at the balance.
Switch to a biweekly payment schedule, which results in one full extra payment per year.
Consider refinancing if you can lock in a lower rate and shorten the term.

Imagine your life without a mortgage payment: No more worrying about rising interest rates. The ability to pivot careers or retire early. Extra cash each month to fund experiences, give generously or invest for the future. For Ramsey, paying off your home isn’t just a financial move; it’s the ultimate step toward lasting peace of mind and real wealth.

Final Reflection: Spend with Intention, Live with Purpose

Lasting happiness doesn’t come from impulse buys or trying to impress other people. It comes from spending with intention—directing your money toward what matters most to you and your family.

Dave Ramsey’s philosophy is simple but powerful: when you align your spending with your values and your goals, you create a sense of peace that no luxury purchase can match.

Which of these five areas speaks to you most?
Maybe you’re ready to finally invest in learning, start paying extra on your mortgage, or set aside money for meaningful experiences. Take one small step today. Pick a category to focus on this year, and commit to making choices that build security, freedom, and joy.