Book Review - The Total Money Makeover by Dave Ramsey
Category Book Reviews
I earn more than my parents *ever* did, and more than I ever dreamed possible growing up. But when I look at the bank accounts and bills, it certainly doesn't seem that way. I had the opportunity to read The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey. No gimmicks, no tricks, and it may be just what I need to get things in order...
Contents: The Total Money Makeover Challenge; Denial; Debt Myths; Money Myths; Two More Hurdles; Save $1000 Fast; The Debt Snowball; Finish the Emergency Fund; Maximize Retirement Investing; College Funding; Pay Off The Home Mortgage; Build Wealth Like Crazy; Live Like No One Else; More Total Money Makeover Stories; Budgeting Forms
The thing I appreciate most about this book is that Ramsey doesn't try to present some "buy my 10 step program for $500" pitch nor does he promise that getting out of debt is easy and painless. If it was, most of us wouldn't have a problem. What he does do is lay out a series of "baby steps" that if followed with "gazelle intensity", will work to get you out of the mess you might be in today. The first step is to get an initial emergency fund of $1000. Do whatever it takes... second job, garage sales, you name it. Just get a cash buffer so that you can get yourself off the credit card trap. Once that's done, you list all your debts and start putting as much as possible towards paying off the first one. Once that's done, then you roll that amount plus whatever else you can afford to the second. This "snowball" effect can quickly whittle down the number of creditors you have, as well as the amount you owe. Couple this with a budget and a hard look at things that have gotten you in debt (like that third car or the boat), and you're well on your way to reducing the financial stress in your life. Or as he puts it... "Live like no one else now, so you can live like no one else later". Each of the following steps builds upon the work you've already done, and it's a very logical progression. The book is also liberally sprinkled with a number of stories from real people who have followed these steps and eliminated incredible amounts of debt... Totals that are truly jaw-dropping...
Fortunately, I'm in much better shape than most everyone highlighted in the book. But it wouldn't take much to make it all go south. And I could be doing so much better from "finishing the emergency fund" on... My wife will be reading this next, and then I hope to make some definite changes to make sure that money and lenders don't become my master... A recommended read...
I earn more than my parents *ever* did, and more than I ever dreamed possible growing up. But when I look at the bank accounts and bills, it certainly doesn't seem that way. I had the opportunity to read The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey. No gimmicks, no tricks, and it may be just what I need to get things in order...
Contents: The Total Money Makeover Challenge; Denial; Debt Myths; Money Myths; Two More Hurdles; Save $1000 Fast; The Debt Snowball; Finish the Emergency Fund; Maximize Retirement Investing; College Funding; Pay Off The Home Mortgage; Build Wealth Like Crazy; Live Like No One Else; More Total Money Makeover Stories; Budgeting Forms
The thing I appreciate most about this book is that Ramsey doesn't try to present some "buy my 10 step program for $500" pitch nor does he promise that getting out of debt is easy and painless. If it was, most of us wouldn't have a problem. What he does do is lay out a series of "baby steps" that if followed with "gazelle intensity", will work to get you out of the mess you might be in today. The first step is to get an initial emergency fund of $1000. Do whatever it takes... second job, garage sales, you name it. Just get a cash buffer so that you can get yourself off the credit card trap. Once that's done, you list all your debts and start putting as much as possible towards paying off the first one. Once that's done, then you roll that amount plus whatever else you can afford to the second. This "snowball" effect can quickly whittle down the number of creditors you have, as well as the amount you owe. Couple this with a budget and a hard look at things that have gotten you in debt (like that third car or the boat), and you're well on your way to reducing the financial stress in your life. Or as he puts it... "Live like no one else now, so you can live like no one else later". Each of the following steps builds upon the work you've already done, and it's a very logical progression. The book is also liberally sprinkled with a number of stories from real people who have followed these steps and eliminated incredible amounts of debt... Totals that are truly jaw-dropping...
Fortunately, I'm in much better shape than most everyone highlighted in the book. But it wouldn't take much to make it all go south. And I could be doing so much better from "finishing the emergency fund" on... My wife will be reading this next, and then I hope to make some definite changes to make sure that money and lenders don't become my master... A recommended read...
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Comments
Posted by Ray "The Lion King" Bilyk At 08:16:48 On 09/03/2006 | - Website - |
Nice review. I pray that it does for you what it has for my wife and I.
Posted by Jamie Price At 06:19:44 On 07/03/2006 | - Website - |
Posted by SteveBTucAZ At 09:35:15 On 08/03/2006 | - Website - |