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Book Review: Total Money Makeover

February 25, 2012
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Total Money Makeover  Let me say that Dave Ramsey and I agree on so many points. The author not only presents a way to rid yourself of debt, but supplies the philosophy behind it. From his personal rags to riches story (not once, but twice) we learn that he has been on both sides of the debt issue.  

Printed on every page in this book is his mantra:  “If you live like no one else, later you can live like no one else. “

The book is filled with personal testimonies of those that have followed his plan. I found the book to be very encouraging rather than judgemental.

Here are his steps in a nutshell, but you really need to get the book to find out the “hows and whys” of freedom from debt.

1. Save $1000 for emergency cash. (Then use it in an emergency – not a credit card.)

2. Pay off debt except your home. If at any time you use the emergency fund, use every extra penny to get it back up to $1000.

3. Finish your emergency fund. He recommends saving 6 -10 months of expenses – what it costs you to live. (Remember, you have no debt now.)

4. Save for retirement. The book lists different options for the reader. Get the book. 🙂

5. Save for college if this applies to your family. Dave recommends using a ESA for most people.

6. Pay off the mortgage.

7. Give. He waits until the end of the book to say that we should all be generous throughout the process, even if that means you can only your volunteer time in the beginning. When you reach this point of the Total Money Makeover you are encouraged to “really” give.

You can listen to The Dave Ramsey Show on the radio. He uses a call-in format to give financial advice to listeners. He has a webpage with tons of resources and information.

This is the first of the Dave Ramsey books I have read. It was full of practical ideas and down to earth language.

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