This book targets those who are debt burdened. It has some very good principles to live by and provides a good roadmap for people seeking to get out from under the burden of their debt. Dave Ramsey relies heavily on student success stories to keep the reader interested and motivated through the book. The back of the book provides even more success and motivational stories from all types of people.
His basic premise is that if you are willing to live like no one else, you will be able to live like no one else.
The basic baby steps he suggests in giving your finances a Total Money Makeover are as follows:
Step #1: Save $1000 Cash as a Starter Emergency Fund
Step #2: Start the Debt Snowball
-Payoff the smallest balance first. This gives you motivation to keep going as you see progress quickly.
-Use the extra you have left after paying off the smaller balance to payoff the next debt faster, creating a snowball effect paying off the larger debts faster as you pay of each debt.
Step #3: Finish the Emergency Fund.
-Create an account with 3-6 months liquid cash reserves to help you if/when job loss or other surprise expenses occur.
Step #4: Invest 15% of your income towards Retirement - 401k, Roth IRA, Mutual Funds
Step #5: Save for College - 529, ESA
Step #6: Pay off your mortgage - Buy with 100% down or take a 15 yr mortgage.
Step #7: Build Wealth
When you complete these steps, you will be able to live like no one else.
Will you read this book again? Not likely. This is recommended for folks needing to get their personal finances under control. The principles here are timeless for sustaining control over your personal finances.
Would you suggest this book be added to a personal library or leave at the public library? Personal, if you struggle with your finances. It is a great reference.
Reviewed By Mike W - Twin Cities, MN
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