The Total Money Makeover: A Proven Plan for Financial Fitness [Abridged, Audiobook] [Audio CD]

 

 

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I must admit, I was pretty cautious when I first picked up Dave Ramsey's book The Total Money Makeover. It's not a particularly threatening book - it's just that the cover has a similar effect to receiving an unsolicited sales email. There is a picture of him staring into the camera with an all-knowing gaze. Everything is green and red and gold ' money, money, money. The caption, all-caps: "Hundreds of thousands of ordinary people have become debt-free ' here's how you can too." It's not exactly subtle.

Upon digging into the information, it's pretty useful stuff. It's not so much a technical manual for places to cut costs as it is a motivational book to refer to when times get tough. Dave writes in a refreshing, conversational manner, and begins by bringing the low-down on various "Money Myths." He discusses the reasons that playing the Lotto won't make you rich ("Lotto and Power Ball are a tax on the poor and people who can't do math"), why pre-paying anything isn't really worth it, and why bankruptcy is hardly ever a good option.

From here, Dave takes the reader through the extremely simple "Baby Steps" which make up the meat of the book:

Create a $1000 emergency fund while paying the minimums on every debt. Make sure it's liquid. Budget hard.
List all your debts ' every last one. Pay them off in order of smallest to largest, regardless of interest rates. This is to keep you motivated as you gather "small wins" on the road to being debt-free. Any mortgage shouldn't be listed here, but student loans should, according to Dave.
Finish your emergency fund. Bump that sucker up to three to six months (or more) of living costs. Ramsey says this value is $10,000 +-, depending on if your income is steady . If you're in a contract position, at risk of losing your job, or self employed, more money is better.
Invest 15% of your income in your retirement. Don't fatten your kids' college funds first. That was something I definitely thought about the second I saw my Student Line of Credit balance. Ramsey says, "your kids' college degrees won't feed you at retirement," and he's right.
Fund your kids' college. In this step, Ramsey talks about how the number one rule of going to college is to pay cash. He really rails against borrowing ("Student loans are a cancer") and at times even seems against the idea of going to college if you can't afford to pay up front. My parents had not set me up with a college fund, so I thought debt was the only way to do it.
Pay off the mortgage. Straightforward.
Get super rich. At this point, Ramsey says, "You are not Mastered by a Card, you have not Discovered bondage, American Excess has left your life." He urges us to use our money wisely ' have fun, invest and give.
Ramsey peppers the book with a bit of religious gospel coupled with the financial stuff. It's not intrusive at all and shouldn't be a deterrent to any open-minded individual. I do not count myself as a member of the Christian faith, but the Bible verses included were relevant elaborations on the concepts in Ramsey's book.

Some of the advice in the book directly contradicts the math of what's going to save you the most money - logically and on paper, that is. At first I thought this idea was preposterous, but upon further consideration I realized that the math doesn't really matter at all. If it's just a matter of math, all we need to do to be rich is simple subtraction, making sure our incoming money outweighs the outgoing money. Chances are, if you're reading this blog or this book, you know the math but haven't been keeping up so well on the motivation part. This book is a psychological push in the right direction for managing your finances, and as such it should take up a place on the bookshelf of anybody who cares about their finances.

I didn't learn anything particularly technical from the book, but it's all well-grounded common sense. Ramsey drives home the point that rich people don't get rich by knowing any well-kept secret. He says that having stable finances comes from being able to stay motivated while putting very basic concepts into practice. Total Money Makeover is a great place to start getting your finances in order.

This book changed the trajectory of my relationship and my life. It got my husband and I talking openly, and without judgment about our financial (and LIFE!) goals. Since starting on the plan one year ago we no longer fight about money. This isn't a get rich quick scam but a pragmatic look at our relationship with our money. The strategies are simple, they make sense AND they work!

Some readers may find Dave Ramsey's writing style a little too "preachy" for their taste, but, if you can get past THAT, you'll find that the steps he outlines in this money makever are good ones.

I enjoyed Ramsey's "Financial Peace", and I think this book repeats much of the advice he gave there, but he manages to do it in a way that is entertaining and engaging.

His Money Makeover steps are by no means easy or painless --you're going to have to work at these steps!-- but if you follow them, chances are good that you'll achieve the money makeover you're looking for.

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5.0 out of 5 stars fantastic
Total Money Makeover is a great book for people to follow to get out of debt and get saving. I bought one for each of my children as did my sisterinlaw.

Published 10 months ago by Becky Taylor

5.0 out of 5 stars Getting The Book is Money Well Spent - Ramsey is the Dr. Phil of Personal Finance
Occasionally for work, I travel around the city and have the opportunity to hear the Dave Ramsey Show on the radio. Read more

Published 12 months ago by Jeremy Choi

5.0 out of 5 stars A no-brainer, this works!
Dave's program isn't perfect. But it's extremely difficult to refute most of what he says. Eliminate debt (and don't keep using it), save for retirement, help the kids through... Read more

Published 17 months ago by K. Wilson

5.0 out of 5 stars Great down to earth advice
I listen to Dave Ramsey on WDCX 99.5 in Buffalo. His Total Money make over is an excellent tool to get out of debt. Read more

Published 23 months ago by S. Vanderstelt

5.0 out of 5 stars Totally amazing makeover
Wow, it is amazing. I was recommended this book by my mentor and can understand why, I have read it already 5 times, and already am a baby step 2. Read more

Published on Sep 13 2004 by Julie Paradis

5.0 out of 5 stars Great read! Awesome book!
I'd never heard of Dave Ramsey until about 6 months ago when my mentor suggested I read his book. I found out later that he also had a radio show. I know, I know... Read more

Published on July 9 2004 by Drew Kuespert

5.0 out of 5 stars It Works!! We Tested It!!
There are so many books on being financially set that you wonder if there can be another book that has the right principles. Almost like all those diet books out there. Read more

Published on Jun 11 2004 by Manuel Hernandez

5.0 out of 5 stars Get Back On The Right Track Financially
This book can definitely change lives. Dave Ramsey provides a step by step "real life" approach to tackling your financial woes. Read more

Published on Jun 2 2004 by Dan Blankenship

5.0 out of 5 stars This is truly a life-changing book.
Wow! What a life-changing book. Dave Ramsey hit the nail right on the head. Getting out of debt and building wealth requires more than knowledge of what we need to do with our... Read more

Published on April 22 2004 by Robert Wynkoop

5.0 out of 5 stars Good Points, Direct and I figure a lot won't like it.
I never heard of Mr.Ramsey before. I found this book at the library and read it. It is a quick read once you decide to skip all the testimonials. Read more

Published on April 4 2004 by R. Scott

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