The Total Money Makeover: A Proven Plan for Financial Fitness

I cannot completely disagree with the people who have given this book 2, 3, and 4 stars. This book truly does state the obvious. I started from the introduction and Mr. Ramsey definitely highlights that a lot of what is in this book has already been preached by other "experts" and the vast majority of what he puts out there is common sense for a great many people. These are all points that have been argued by those who are not so pleased with the book. I figured it behooved me to point that out just in case anyone read my review anticipating the reasoning behind my giving this book five stars had to do with some amazing new revelation of how to save money. You could probably place me in the category of the people who know what to do and how to go about doing it, but never ACTUALLY do it. Am I uncormfortable? Not at all. I have a respectable job with very fair compensation, and my wife does well too. However, we have also done well to accumulate debts over time: many of the debts are as old as our relationship (which is pretty young...six years). It wasn't until recently that I realized something. While we have money saved aside for the imminent rainy day, we could be doing so much better if we were saving without the concern of applying those savings to our debt. Like I said, for many of you this is obvious. I was in denial for quite some time. I didn't want to admit that I was horrible with money because I didn't want to sacrifice control of my own money. When I came across this book, I did research on the author, and determined that this would be a solid investment. Upon reading the first few pages, I was immediately hooked! The part that got to me the most was looking in the mirror and realizing where our financial woes were originating from. I know, it sounds like a 12 step program: it kind of is! It's a program for binge spenders! I realized that I was financially intoxicated, or financially overweight (Mr. Ramsey correlates the Total Money Makeover with working out...pretty good tie-in considering that I need to get in shape too!). I probably could have finished this book in a day if it wasn't for my obligations to work and family. Instead it took two whole days to get this book finished! Since then (four days ago) I have already created an Excel sheet listing all our debts from smallest to largest, and have created an allocated spending plan for our upcoming paychecks in two weeks. The first step is to come up with $1,000 dollars, but we already have that covered, and are prepared to get a head start on our debt snowball by depleting our savings accounts. I have even set a target date for us to be debt free. While I read the whole book, I sometimes think I should have stopped reading at baby step 2, which deals with clearing your debt. I don't necessarily want to get ahead of myself. Anyway, the point of this review is simple: it is not so much knowing what it takes to clear your debts and live a life of financial freedom; it is about DOING what it takes with a "gazelle like intensity". Again, there are no crazy new revelations or revolutionary ideas. Mr. Ramsey makes no claims to being an expert. He simply puts out what everyone already knows. Besides, it's also good to know that he was in a position - becoming rich, filing for bankruptcy, only to become wealthy again - to employ these methods. As with any other review, take mine with a grain of salt. Determination and sacrifice will ultimately lead to true freedom in the future. "If you will live like no one else, later you can live like no one else." Awesome and uplifting read.

Golly, I am a bit surprised by the hostile tone of some of the negative reviews I read here. Boiled down, Dave simply says, "make your money work for you, not the other way around". My husband and I have always been cautious about money, but after listening to Dave, we actually began paying attention, paying off debts, and paying off our home. I almost feel guilty it was as easy as it was for us, after listening to other peoples' stories, but it was the repeated advice to pay attention to where our money went and to establish six months savings that finally got our ears, and I'm ever grateful it did. Yes, the advice is simplified, and is hammered home repeatedly, but look around you. Nearly everyone you know and pass in the street is living in the hole, and needs to hear this. I run a business in an inner city neighborhood, and it breaks my heart to see otherwise good people, who could be successful, living paycheck to paycheck, renting furniture, buying cars from tote-the-note lots. There are a lot of people in this world who have never been taught to handle money, and an awful lot of us who have been taught, who still don't handle it well. And there are people lining up to take advantage of this inexperience, stupidity, and laziness to make our money their own. Dave presents his material in a gentle, humble, funny and, above all, compassionate format. Some reviewers complain about his testimonials. They're there for a purpose. "Me, too!", so readers can relate, whether to Dave's own personal trials, or those of others. One reviewer commented that he had a degree in Finance, and thought the material was overly simplified. Well, sugar, yes, it IS, for the benefit of those of us who don't have that Finance degree. And I might remind you that the average reading level in the US is, what, third grade? Who cares if the book reads simply and repeats itself? The key thing is to get the material to as many people as possible, in a clear, digestible, and (dare I say?) fun format. I particularly respect Dave's consistent advice to invest in something you understand, rather than exotica, something our Finance whiz appeared to look down his nose at. I'm happy for ya, hon, but I'm happier knowing where, what, why and how my money's working for me. You can finish the race first, but I'll be finishing right on your heels, and that still puts me head and shoulders above most the population. Thanks again, Dave. Another reviewer mentions the "cultish" feel of the Dave Ramsey movement. Good grief, if wanting to support one another towards an ultimate goal of security and success in life is cultish,without trying to get someone to tout soap or long distance cards and other such dreck along the way, then give me a sip of that there Kool-Aid. All the man is asking you to do is stop and think about the dollars in your pocket. For those that feel uncomfortable with the Biblical references, I felt that way myself at first, but he never preaches, throws them in your face, or comes off as "holier than thou". I admire a man with strong beliefs, who is willing to adhere to those beliefs, even if it puts others off, or causes him to lose sales (i.e. refusing to accept credit cards on his website). Don't like the man or his principles, then don't buy the books, don't listen to the show. But, you'll be missing some solid, down home, sensible advice. 100% thumbs up from a grateful reader and avid listener.

This is a great book. The majority of financially successful people in the U.S. are frugal. Learning to be frugal, really learning the value of money, is what this book is all about. For those that are wasteful with money, like many NFL athletes or lotto winners, the majority lose their savings in the future. 88% of NFL athletes are broke five years into retirement. There are rules that govern money -- obey them and financial success will follow. Dave's book teaches each of us the rules. I think this book is the critical first step to financial success. After people have had time to apply the Total Money Makeover, they must learn to invest wisely. That is step two. Dave stresses the importance of investing in mutual funds. Mutual funds are great, particularly low-cost funds (think Vanguard, Fidelity), but I would consider adding hard assets as well. Rental properties and tillable farmland are assets that are not too difficult to understand and will generate cash flow indefinitely. Just owning one duplex and one farm over a lifetime would provide two other sources of income. I think investing in stocks is important, but I believe it is wise to hold several types of assets. Some straightforward books that help to simplify investment ideas -- The Little Book of Big Dividends by Charles Carlson, and the Millionaire Real Estate Investor by Gary Keller. As for learning about farm land, Farm Credit can be an excellent resource. To find local land values, contact a local auctioneer. You can get a list of recent sales prices. You can also probably find a local person who has experience with rental properties or land. Many people will share information with you when you are just trying to learn. When buying rentals or land, always have the sales contract reviewed by your attorney prior to signing. It's a small fee that can save you thousands of dollars. Also, many local libraries carry the Value Line Investment Survey. It's simply the best source of information on stocks. It also contains 4 model portfolios that you can follow. The Wall Street Journal and Barron's are also great resources. Visit the library and learn for free. Building wealth takes time and effort, just like everything else. The Total Money Makeover is the first and most important step.

If you're looking for detailed investment strategy and advice, this book is not for you. But, if you're looking for a practical and systematic plan to eliminate debt and build wealth, then this is a must read. At the heart of the book are Dave Ramsey's seven "Baby Steps" to financial peace - 1) create an emergency fund, 2) systematically eliminate debt, 3) build cash reserves, 4) Invest for retirement, 5) fund college for your kids, 6) pay off your mortgage, 7) build wealth and give. The nice thing about Ramsey's approach is that it follows a sequence. And, while it may not be easy to work your way through the seven steps, the system itself is a simple one. That's where this book is better than many wealth building books -- it is practical and simple to understand. Ramsey starts the book by examining several hurdles to financial fitness: denial, debt and money myths, and the desire of many Americans to "keep up with the Joneses." He then lays out his seven baby steps. Throughout the book he shares stories of a number people who have followed the plan to turn their financial lives around. If I have one complaint about the book, it's Ramsey's brash style. He can be at times condescending. All-in-all, I would rate this book a must read for anyone who feels they need a little help in the financial circle. The Total Money Makeover was the January, 2012 read in the Life on Purpose Book Club. Among the other books we've read this year: Unstoppable: 45 Powerful Stories of Perseverance and Triumph from People Just Like You Takin' Care of Business: The BIG IDEA for Small Business Tribes: We Need You to Lead Us The Life on Purpose Book Club motto is: Read. Learn. Improve. If you'd like to join us, we'd love to have you. It's fun and it's free. You can join us here: [...]

Dave Ramsey's The Total Money Makeover took me 2 days to read it. It was an easy read and he really opened my eyes to the pitfalls of credit and debt. I, like millions of others, have been taught that credit card debt is normal and good. People with no credit cards are looked down on and made fun of. Luckily, I have been credit card free for years but I was thinking about getting a secured card to rebuild my credit so that I can get a REAL credit card again. Thanks to Dave Ramsey's sage advice, I have nixed that idea in favor of paying off my husband's outstanding student loans, tackling my own student loans when they come due, building a fully-funded emergency fund, buying a house with 100% cash, investing, and giving. It is impossible to be debt free with credit cards. I refuse to get back into that snake pit ever again. Dave's ideas are common sense with a dash of financial genius. You don't need a college degree or a high IQ to understand and live the 7 steps that make up his plan. As far as investing is concerned, there are some naysayers that say his plan lacks sense in that area. I am below novice status in the world of investments so I will leave that up to the professionals to bicker over. In the meantime, his plan seems to have helped thousands of people so I will stick to his advice unless I see with my own eyes that it is not working for me. As with any financial plan, you need to tailor it to your particular situation and Dave does an amazing job at that in his book. The anecdotes really helped me believe his plan can and will work in my situation. I will never have to borrow money from friends and family for emergencies. I will never have to worry about my FICO score to buy a house. Best of all, I will never have to toss and turn every night worrying about my future because I know I will be okay.

Dave Ramsey lays out common-sense advice, such as to live within your means, as part of a straightforward seven-step plan. The plan is a good, basic, and as easy to follow as a personal financial plan worth the paper it's printed on can be. The one major flaw is the advice to pay off one's smallest debts first, regardless of the interest rate. No matter how big the debts in question, it is always cheaper to pay off the highest-rate debt first. Dave is absolutely correct that his advice is the right advice for people whose basic problem is behavioral -- just getting started on a debt-reduction plan. His advice provides great, immediate, positive reinforcement. It is not good advice, however, for people who are basically responsible, but have significant debt either because of past medical emergencies or student loans, nor is it good for someone who has debts with a large range of interest rates. For example, assume you have a $20,000 car loan at 4% and a $25,000 home equity line of credit at 8%, each has a five-year term, and you have an extra $400 per month to pay down your debts. Following Dave's advice would cost you $865.04 in additional interest and take a month longer than if you had paid off the HELOC first. If you have the discipline to pay off debts either way and can handle not getting immediate results from paying off small debts faster, you would always be better off paying off higher-interest debts first. If you lack that discipline, well, then, Dave's plan is excellent. I am a big Dave Ramsey fan. I think the preceding paragraph is a necessary footnote to my enthusiasm, since there is a lot of confusion about interest and debt these days. That said, this is a good read for anyone.

Initially I was given this on CD by a friend who has recently become a "disciple of Dave". I listened to it twice over and even hit the repeat button quite a lot. When I got home I ordered his book and have read and re-read this so that it has come to live on my nightstand. Why? Well, for starters, I, like far too many of us had hit a financial sinkhole about 15 years ago and then spent more than a decade digging myself out. Much of what Dave has to say is common sense: Save, pay cash, budget, avoid consumer debt (ie. if you can't afford it don't buy it.) and rather than compete with the Jones' live the life you can afford and eventually you will live like no other. To do so we must be willing to avoid peer pressure and remain focused on our reality - Not the fantasy. My own personal sinkhole occurred when I was a college student. Dave brings up a very important argument for higher education. College is a luxury NOT a necessity. Higher education only plays a role in the success of an individual in only 15% of the population. 15% is NOT very much, which means a great deal of parents are needlessly sending their children to college, many like myself are either disinterested or academically unqualified for college yet too many of us are willing to throw money at an ultimately empty quest which becomes a money pit. Tho my family & I saved for my education we were still short and even with pell grants I had to take out student loans. I actually took out a modest sum in comparison to my schoolmates but tie that in with the credit card that practically came in a goodie-bag, and NO immediate job when I graduated the end result was disasterous. Had I been more knowledgeable about finances and unafraid to ask for help I actually would have cleaned my mess up more quickly. Instead I took the first piece of advice from an individual who appeared to be knowledgable based on his profession - he was a lawyer. He might be great in a trial but the man was ignorant of financial matters & my situation only got worse. Ironically, had I talked to my dad, who did bring me up on many of Dave's principals (save, if you can't afford it than earn it, pay yourself first and pay your bills off ASAP) and I taken the very basic, but good advice of a very good accountant I could have been on Dave's path earlier. I have struggled, but I have also improved and I now have no consumer debt, I eliminated my credit cards, I am now saving for an emergency fund, I also have a savings and I can now feel excited about the future rather than fear it. Since I did this for the most part without Dave before hand you might wonder why I champion his book. Because I realize that despite Dave and I eventually having the benefit of commonsense advice from previous society as a whole our nation has lost touch with the reality of financial responsibility. There is no quick fix but there is truly salvation to be had if we are willing to be smart and earn it. I have also found Dave's book to be useful in fine tuning my plans. Now it is time to learn how to make my money work for me and make proper investments. It's good to have Dave there to explain it all in a language that neither bores me or goes over my head. Quite frankly I intend to start giving this book out as gifts to, unfortunately, too many people I know and particularly to all future Highschool graduates in my acquaintance and hopefully prevent future financial sinkholes.

Amazing book. This book is very inspirational. Most of us probably have at least one area we could be doing better in financially. This book can really give you the drive and inspiration to begin to tackle any financial pitfalls you continually fall into, or any simple fine tuning your finances need. Whether you are in major debt, living pay check to pay check, or just need to prepare better for the future or save more, this book really has something to offer to anyone. The principles are simple ones that are good to try and live by. This book made sense to me. It's helped me make better decisions and think more before I make purchase decisions. I still have a lot more I can apply to my personal situation and plan to re-read this book eventually as it's a quick read and a good reminder to stay in control of spending and balancing need against want. Quite humbling and inspiring. Live like no one else so you can live like no one else is Dave's tag line that really does help keep things in prospective if you say it to yourself when considering a splurge, or unnecessary purchase, or just a general unwise financial decision.