What financial practice does Dave Ramsey highly recommend for avoiding debt?

Living within your means is a fundamental principle that Dave Ramsey promotes as a way to avoid debt. This practice involves spending less than you earn and prioritizing your expenses based on your income. By adhering to this principle, individuals can create a budget that aligns with their financial situation, making it easier to save for emergencies, pay off existing debts, and avoid the pitfalls of excessive borrowing.

When you live within your means, you focus on necessary expenditures and prioritize saving, which builds financial stability. This approach discourages reliance on credit cards or loans to finance lifestyles or unplanned expenses, which can lead to a cycle of debt that is difficult to escape. Additionally, maintaining a budget helps individuals make informed financial decisions and plan for future goals without accruing debt.