Book Review : The Total Money Makeover by Dave Ramsey
Dave Ramsey has an entertaining manner to teach basic concepts of good money management. Even he explains that there is nothing new in his program, it is the wisdom of how grandma lived. He includes giving to others, as a tithe, which is taught in the Bible. Paying yourself is also an important principle, and that the necessities must be met before paying off debt.
He breaks down the process of getting out of debt into baby steps. Succeeding in small goals help keep the people doing his program motivated to continue. The final step is a reward much bigger than just getting out of debt; you find peace, strength in your marriage and build a foundation to change your family forever.
The Total Money Makeover includes many personal experiences that offer inspiration in addition to the nitty gritty details for success.
The Basic Baby Steps
1 – $1,000 in an emergency fund (Christmas is NOT an emergency, this fund is for true emergencies)
2 – Debt snowball, eliminate the smallest debt first and then move to the next until all debt, except the house, has been paid off
3 – Finish building an emergency fund, 3 – 6 months of living expenses
4 – Save for retirement, 15%
5 – Save for college funds for kids
6 – Pay off your mortgage early
7 – Build wealth, invest and give
There are many classes available that teach Ramsey’s program in greater depth and offer support. It is difficult, but it is worth it. The workshops are called Financial Peace University and are well worth the price for the support.
I highly recommend this program regardless of how much money your family earns, it will improve how you work with money. I really enjoy Dave Ramsey’s common sense. This approach has changed our lives. The Total Money Makeover, or Ramsey’s other programs, are also easily understood by children. When kids are taught young they will have an easier time staying out of debt and being financially responsible as adults.
5 out of 5 stars