Your Path to Financial Freedom: Dave Ramsey Budget

How to Fit Health Insurance Into a Dave Ramsey Budget

If you're following the Dave Ramsey budget, you're probably laser-focused on sticking to the Baby Steps, paying off debt with the debt snowball method, and building lasting financial peace. But according to Ramsey Solutions, there’s one expense that can throw even the most disciplined budget off track: health insurance.

Whether you’re self-employed, between jobs, or just trying to make the smartest financial decisions for your family, figuring out how to fit health insurance into your Dave Ramsey-style budget can feel overwhelming—but it doesn’t have to be.

Let’s break it down.

What Is the Dave Ramsey Budget, Really?

At its core, the Dave Ramsey budget uses zero-based budgeting, meaning every dollar has a job before the month begins. You tell your money where to go—including essentials like food, housing, transportation, and yes—insurance, as well as tracking your monthly expenses to avoid living paycheck-to-paycheck.

Ramsey recommends four financial priorities for your budget before anything else:

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

After those are covered, he emphasizes getting proper insurance coverage, including health insurance, to protect your household income and financial future. Utilizing analytics can help you better understand your spending habits and improve your overall website experience as you adjust your budget accordingly.

“Going without insurance is like driving without a seatbelt—you're just hoping nothing bad happens.”

Why Health Insurance Is Non-Negotiable in a Dave Ramsey Budget

One unexpected medical event can wipe out your emergency fund—or worse—push you back into debt.

That’s why Ramsey teaches that health insurance is a must, even if you're still in Baby Step 1 (building your starter emergency fund). The key is to find coverage that aligns with your values and your budget. Health Trust Financial is RamseyTrusted - and that's a big deal!

5 Smart Ways to Fit Health Insurance into a Dave Ramsey Budget

Here’s how to make it work—even if money is tight.

1. Compare Plans (Every Year!)

Health plans and prices change yearly. Don’t auto-renew your current plan. Use a health insurance advisor or comparison tools to explore all your options. Look for high-deductible health plans (HDHPs) with lower monthly premiums if you’re healthy and rarely go to the doctor.

2. Consider a Health Sharing Ministry

If you're in good health and want a faith-based alternative, health sharing ministries can offer affordable options that align with Christian values—and often cost far less than traditional insurance. Health Trust Financial agents can help with this too!

Bonus: They typically meet Dave Ramsey’s requirements for basic health coverage.

3. Use an HSA (Health Savings Account)

Pair an HDHP with an HSA to cover out-of-pocket medical costs tax-free. It’s one of the few tax-advantaged accounts Dave Ramsey actually endorses!

4. Build It Into Your Zero-Based Budget

Treat your premium like rent or groceries. If it’s not in your budget, it’s not sustainable. Use Dave’s EveryDollar app or a simple spreadsheet to take control of your money by planning for it monthly—before you plan for restaurants or subscriptions. Consider the interest rate when using the envelope system along with budgeting forms for budget management.

5. Avoid Over-Insuring

Don’t pay for more than you need. Skip unnecessary add-ons or excessive coverage. Instead, insure yourself wisely based on your actual needs and stage of life.

Real-Life Example: The Smith Family

The Smiths are a family of four, following Baby Step 2 and working hard to get out of debt. They were spending $1,100/month on health insurance—eating into their snowball.

They switched to a health sharing ministry for $550/month, kept an emergency fund for medical bills, and used their freed-up budget to pay off a credit card in just 3 months.

Now they’re protected and progressing toward debt freedom.

Health Insurance the Dave Ramsey Way: Final Thoughts

You don’t have to choose between being insured and being financially free. By following a Dave Ramsey budget and making smart, strategic choices, you can protect your family’s health and your wallet.

Remember: health insurance isn’t just a monthly bill—it’s a shield against the kind of emergencies that can wreck your financial progress.

If you’re unsure where to start, consider working with a trusted health insurance advisor who understands Dave Ramsey principles and can help you find a plan that truly fits your financial goals.

Need help finding health insurance that fits your Dave Ramsey budget?
Schedule a free consultation with a Ramsey-endorsed health advisor today.