All of this advice is helpful and eye opening, but what Ramsey really excels at is presenting inspirational tales of those who were once, but are no longer, in financial disarray. Their stories make up at least a third of the book, and the cumulative effect is that of a published pep rally designed to get people pumped up about saving money. I encourage readers to reflect on their own financial journey post-reading and how the book has influenced their financial decisions. Post “Total Money Makeover,” readers often find themselves on a path toward financial mastery.

• In other words, invest the funds held in your ESA into a  low-cost index fund made up of growth stocks.
• The book taught me five important lessons that changed my thoughts about money.
• Dave Ramsey is a big deal in the personal finance space in America.

Your best option is to avoid bankruptcy, debt relief programs, and debt consolidation. Instead, use the debt snowball method to pay off your debt fast and simultaneously improve credit scores. If you aren’t prepared to make massive changes, you won’t make as much progress following total money makeover review this method. It gives you the tools you need to change your life and make it happen. The letters come from people in all walks of life, with differing amounts of debt, and in various steps of the journey. You really feel like you can accomplish this with so many real life examples.

Baby Step 3: Finish the emergency fund.

I listen to the podcast because they are shorter and I can listen while on the move. “The Total Money Makeover” has a positive mindset that reminded me a bit of the Ant and the Grasshopper fable. Basically, it’s about avoiding flashy expenses and tackling your future problems today. As you successfully erase debt, it will inspire you to tackle the bigger ones. This is a very useful book, in the sense that it gets you all motivated to fix your finances, and the practical steps you can take to achieve your goals in small steps.

• Their stories make up at least a third of the book, and the cumulative effect is that of a published pep rally designed to get people pumped up about saving money.
• But when we use a credit card, it doesn’t feel like we’re spending real money.
• Readers learn not just to manage their finances but to make decisions that align with their long-term goals and values.

A job loss or large car repair would wipe that out in an instant. The Total Money Makeover is essentially a step-by-step guide for how to go about your own personal money makeover journey. These baby steps are based on Dave Ramsey’s key money philosophies. If finances overwhelm you, don’t worry because many people like me were in your shoes before reading this book. The choice is ultimately yours; paying off the mortgage provides peace of mind, but mathematically speaking, investing that money in the S&P 500 has more significant rewards.

Baby Step Six

Of course, you can join the baby steps at any point in your journey. If you’re fortunate enough to not have any debt, Dave explains what you should be doing with your money every step of the way as you work on becoming an everyday millionaire. He’s also a firm believer that anyone can be a millionaire. This method has worked for millions of people across America, so knowing that you have to say that yeah, his method works. If you have credit card debts, student debts, personal loan debts, Dave says you must pay them off.

Winter Reading

Dave Ramsey has gone on to write a total of 10 books and he has a radio show on more than 500 radio stations in the United States and Canada. In fact, this was how I got my introduction to Dave Ramsey. You can find clips from his radio show for free on Youtube. It was after more than a year of listening to his show that I finally decided to give The Total Money Makeover a read to see if it had anything more to add to the conversation.

When was the Total Money Makeover published?

Creating a budget is the first step to taking control of your finances. Once the written budget is created, you can better understand where your money is going each month. The book taught me five important lessons that changed my thoughts about money. In his mid 20’s Dave had used purchasing property to grow his net worth to over $1 million dollars by acquiring real estate worth $4 million dollars. The difference between these two numbers was a whole heap of debt and that is what came back to bite him and he was forced into bankruptcy, giving him a massive wake up call. With a wife and a young family to support he was at rock bottom.

By starting with the smallest debts first, this debt payment method designs a sure-fire way to pay down all your debts fast. He also recommends you save paying off your mortgage for last since your mortgage is likely to be the largest debt you have. We, the Biesinger’s, personally feel investing at a young age is important, and real estate is generally increasing in value over the years.

Spending with credit cards reduces the brain’s ability to feel pain. Ramsey suggests investing 15% of your household income into tax-advantaged accounts. Starting with the highest interest rate could save more money in the long run, but psychologically, this method was the best for me, and we had low-interest rates. This system also allowed me to pay off my debt faster because I put more money into the smaller debts first. A budget forces you to be mindful of your spending and helps you make better financial decisions. The first step to getting your finances in order is to create a budget.

They are based in Tennessee and employ hundreds of people with their primary focus to teach people to win with money. He hates debt and he learned the pitfalls of it the hard way. With that said, if you are someone who is just starting to learn the ropes of your personal finances, you will like this book. However, if you know how to manage your own finances, or a seasoned investor looking to expand your financial knowledge, you may find this book a little bit too fundamental. Dave Ramsey’s “Total Money Makeover” isn’t just a set of guidelines; it’s a foundation that complements modern financial strategies.

So, when you read this book, be prepared to gain a whole new outlook on the purpose of money, and break free from comparing yourself to others. I recommend this book to anyone who wants to get their finances in order. You won’t be able to turn your financial life around overnight.

The essence of this book lies in its ability to blend timeless wisdom with comprehensive financial strategy and adaptive financial planning. As the financial landscape evolves, the principles laid out in the book remain relevant, guiding readers to make informed decisions that resonate with contemporary practices. The Total Money Makeover Workbook by Dave Ramsey is a great resource for those who are looking to get their finances in order. The workbook provides a step-by-step guide to creating a budget, eliminating debt, and building wealth.