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How Dave Ramsey’s The Total Money Makeover Book Transforms Finances: Review & Summary

At this point, you’ll have no debt besides your mortgage and $1,000 saved. But looking back twenty years earlier, Ramsey and his wife had their finances wiped away due to high debt, amongst other financial mistakes. The book, The Total Money Makeover by Dave Ramsey starts with a children’s story.

  • Moving beyond the basics, “The Total Money Makeover” by Dave Ramsey dives into investment strategies.
  • Whether it’s through continued education, acquiring new skills, or simply staying informed about the financial world, investing in yourself can yield the greatest returns.
  • It gives you the tools you need to change your life and make it happen.

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.

Build Wealth

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.

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.

There are also helpful tips and tools throughout the workbook to help you stay on track. In today’s ever-evolving financial landscape, personalized financial planning has become a necessity. While “Total Money Makeover” offers timeless advice, its principles need to be adaptable to modern finance. This adaptation involves considering current economic trends, inflation rates, and the increasing importance of asset allocation and risk tolerance in investment decisions. In this section, we’ll uncover the foundational principles at the heart of Ramsey’s money makeover program. Let’s explore the key tenets that set the stage for debt-free living and building wealth over time.

  • Dave Ramsey may believe in using only cash to pay for things but there are advantages to using credit cards and loans.
  • The Total Money Makeover is a great resource for beginners who are in debt and have no clue about money management.
  • Finally, this book is not for people looking for a way to get rich quick.
  • For most people, minimizing debts, saving money, and building wealth is going to be in similar places priority-wise.

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 total money makeover review 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.

Winter Reading

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 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 Six

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.

Simple Step by Step Appoach

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.

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.

Throughout the book, there are stories of people who have gone through Dave’s system. Some people were in similar circumstances to my own (at some point). Others were much farther in debt than I can imagine being.