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The Total Money Makeover by Dave Ramsey

 

            This essay will review "The Total Money Makeover" by Dave Ramsey. As the title suggests, the book is a how-to type of book on changing the way you budget your money, spend your money, and invest your money to be successful. I chose this book out of the three because I believe this is an area that could benefit me. Ramsey really breaks it down into steps on how to makeover your finances.
             The format of the book is built into 7 steps that Ramsey explains one by one that will lead you to financial success. His suggestion is to go step by step, not going onto the next step until that step is complete. One of the biggest tips he gives is to be honest with yourself, stating, "If I can control the guy in the mirror, I can be skinny and rich." His steps are as follows. Number one is to save a $1,000 emergency fund. Number two is to eliminate all debt except for house payment. Number three is to save a 3-6 month emergency fund saving. Number four is to save 15% of gross income towards retirement. Number five is to save for children's college via an Education Savings Account (ESA). Number six is to pay off your home. Number seven is to save money and live like no one else. One of the major principles he is suggesting in his book is debt free living. He also speaks a lot about investments, the different types, real estate and mortgages, and insurance. Ramsey also presents many inspirational tales of people who had many financial troubles and are now successful based on the use of his ideas and strategies. He gives many quotes throughout the book about financial success.
             I feel I could apply a lot of this information to my personal/professional life. I do not budget my money. I spend it pretty carelessly. There is no plan and if you asked me where my money went, I could not tell you. One quote that stuck out to me was, "A budget is people telling their money where to go instead of wondering where it went.


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