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The Total Money Makeover: A Proven Plan for Financial Fitness
If you will live like no one else, later you can "live" like no one else.
Build up your money muscles with America's favorite finance coach.
Okay, folks, do you want to turn those fat and flabby expenses into a well-toned budget? Do you want to transform your sad and skinny little bank account into a bulked-up cash machine? Then get with the program, people. There's one sure way to whip your finances into shape, and that's with "The Total Money Makeover: Classic Edition".
By now, you've heard all the nutty get-rich-quick schemes, the fiscal diet fads that leave you with a lot of kooky ideas but not a penny in your pocket. Hey, if you're tired of the lies and sick of the false promises, take a look at this--it's the simplest, most straightforward game plan for completely making over your money habits. And it's based on results, not pie-in-the-sky fantasies.
With "The Total Money Makeover: Classic Edition," you'll be able to:
Design a sure-fire plan for paying off all debt--meaning cars, houses, everything
Recognize the 10 most dangerous money myths (these will kill you)
Secure a big, fat nest egg for emergencies and retirement!
Build up your money muscles with America's favorite finance coach.
Okay, folks, do you want to turn those fat and flabby expenses into a well-toned budget? Do you want to transform your sad and skinny little bank account into a bulked-up cash machine? Then get with the program, people. There's one sure way to whip your finances into shape, and that's with "The Total Money Makeover: Classic Edition".
By now, you've heard all the nutty get-rich-quick schemes, the fiscal diet fads that leave you with a lot of kooky ideas but not a penny in your pocket. Hey, if you're tired of the lies and sick of the false promises, take a look at this--it's the simplest, most straightforward game plan for completely making over your money habits. And it's based on results, not pie-in-the-sky fantasies.
With "The Total Money Makeover: Classic Edition," you'll be able to:
Design a sure-fire plan for paying off all debt--meaning cars, houses, everything
Recognize the 10 most dangerous money myths (these will kill you)
Secure a big, fat nest egg for emergencies and retirement!
229 pages, Hardcover
First published January 1, 1994
About the author
Dave Ramsey
207 books2,276 followersDave Ramsey is America’s trusted voice on money and business. He’s a #1 National bestselling author and host of The Ramsey Show, heard by more than 18 million listeners each week. Dave’s eight national bestselling books include The Total Money Makeover, Baby Steps Millionaires, and EntreLeadership. Since 1992, Dave has helped people take control of their money, build wealth, and enhance their lives. He also serves as CEO of Ramsey Solutions.
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Displaying 1 - 30 of 6,711 reviews
January 20, 2020
Ramsey presents some sound financial principles in the book, but it came across as a sales pitch because he mentions his other books and live events, and practically every other page contains a lengthy testimonial from people gushing about their Total Money Makeover. I skipped all of these since I'm looking for practical financial advice, not feel-good stories.
I respect Dave Ramsey as a person and agree with many (maybe most) of his financial principles, but I didn't like Ramsey's strict no-debt stance. The only exception he allows for is a 15-year fixed-rate mortgage. Although I agree that most people are better off avoiding credit cards because they can't resist the temptation to abuse them, I like to use cash-back and other rewards cards to pay for the things I'd be purchasing anyway. I don't think I spend more money simply because I charge purchases rather than dropping cash or using my debit card. For example, I paid my college tuition on my credit card and earned 1% cash back on thousands of dollars. I also charge all my gas purchases, and make 5% cash back. Did I spend more on tuition or drive more than necessary because I had charged those purchases instead of paying cash? I didn't perform a scientific experiment to determine that, but I'd guess not.
I've also reviewed the abridged audio version.
The Steps of the Total Money Makeover
1. Set up a $1000 emergency cash fund
Sacrifice, work extra hours, and sell stuff to get the money.
Keep as paper bills or in a savings account.
Don't put it in checking or any other account or investment.
2. Pay off your debt snowball
List your debts, smallest to largest.
Pay them off.
3. Finish the emergency fund
Must cover 3 - 6 months of living expenses. 3 months if you have a truly steady job, otherwise 6 months.
$5,000 - $25,000
Put in Money Market with no penalties and check-writing abilities
4. Invest 15% of gross income in retirement
Don't count any company-matched funds.
Don't count on Social Security.
Use these accounts, in this order:
1. 401K if company matches.
2. Roth IRA.
3. growth-stock mutual funds:
25% large cap
25% mid cap
25% international
25% small/emerging
5. Save for college for your kids
Use these accounts, in this order:
1. Educational Savings Account (ESA) in a growth-stock mutual fund
2. If you want to save more, use a flexible 529 that allows you to choose your funds
3. Scholarships
6. Pay off the house mortgage
Spend every extra dollar you have left after setting aside for living, retirement, college, and mortgage.
Don't keep a low-rate mortgage just so you can invest at a higher rate. After you pay taxes on your investment returns, and factor in the additional risk that the mortgage debt brings, it's not worth it. In the long term, you'll come out ahead by being debt-free.
7. Build wealth
At this point, you're completely debt-free.
The next step is the Pinnacle Point: when your money makes more than you do.
There are 3 good uses for money:
1. Fun
Guilt-free enjoyment, if you can afford it.
2. Investing
Think long-term.
Don't try to time the market.
Choose simple mutual funds and debt-free real estate.
3. Giving
Giving it away can be the most fun you have with your money.
Additional advice
Winning at money is 80% behavior and 20% head knowledge.
"If you will live like no one else, later you can live like no one else."
Debt brings risk, not prosperity. You can't leverage debt to build wealth.
You don't need to build credit because you won't use it if you follow the Total Money Makeover.
Credit card rewards aren't worth it. You end up spending more in unnecessary purchases and interest payments than you make back in rewards. No one ever became rich from credit card rewards.
Choose high deductibles for auto and home insurance.
Make a will.
Choose a term policy, not Whole Life or Universal Life insurance.
Don't prepay your kids' college expenses. You'll make higher returns by putting this money in mutual funds.
Buy a house for 100% down, or if that's absolutely not possible, get a 15-year fixed-rate mortgage.
You don't have to wait until retirement to do what you love. Get a job that you enjoy.
A college education improves the quality of your adult life and career. But, it doesn't ensure a job or success.
If you have cash or a scholarship, go to college. But pay cash; avoid student loans.
Don't get a 30-year mortgage with the intention of paying it off in 15 years. You'll find other things to spend your money on. Having a 15-year mortgage forces you to pay off your home in 15 years.
Don't pay points on your mortgage, since you're just paying interest up front.
Your house payment should be less than 25% of your take-home pay.
Don't lend to friends. If you must give your friends money, give it as a gift. Loans ruin friendships.
"Wealth will make you more of what you are", whether you're a jerk or a generous person.
"The love of money, not money, is the root of all evil." You have a duty to possess wealth to ensure that it's used properly.
Recommended percentages for allocating your money
Charitable Giving 10-15
Saving 5-10
Housing 25-35
Utilities 5-10
Food 5-15
Transportation 10-15
Clothing 2-7
Medical/Health 5-10
Personal 5-10
Recreation 5-10
Debts 5-10
I respect Dave Ramsey as a person and agree with many (maybe most) of his financial principles, but I didn't like Ramsey's strict no-debt stance. The only exception he allows for is a 15-year fixed-rate mortgage. Although I agree that most people are better off avoiding credit cards because they can't resist the temptation to abuse them, I like to use cash-back and other rewards cards to pay for the things I'd be purchasing anyway. I don't think I spend more money simply because I charge purchases rather than dropping cash or using my debit card. For example, I paid my college tuition on my credit card and earned 1% cash back on thousands of dollars. I also charge all my gas purchases, and make 5% cash back. Did I spend more on tuition or drive more than necessary because I had charged those purchases instead of paying cash? I didn't perform a scientific experiment to determine that, but I'd guess not.
I've also reviewed the abridged audio version.
The Steps of the Total Money Makeover
1. Set up a $1000 emergency cash fund
Sacrifice, work extra hours, and sell stuff to get the money.
Keep as paper bills or in a savings account.
Don't put it in checking or any other account or investment.
2. Pay off your debt snowball
List your debts, smallest to largest.
Pay them off.
3. Finish the emergency fund
Must cover 3 - 6 months of living expenses. 3 months if you have a truly steady job, otherwise 6 months.
$5,000 - $25,000
Put in Money Market with no penalties and check-writing abilities
4. Invest 15% of gross income in retirement
Don't count any company-matched funds.
Don't count on Social Security.
Use these accounts, in this order:
1. 401K if company matches.
2. Roth IRA.
3. growth-stock mutual funds:
25% large cap
25% mid cap
25% international
25% small/emerging
5. Save for college for your kids
Use these accounts, in this order:
1. Educational Savings Account (ESA) in a growth-stock mutual fund
2. If you want to save more, use a flexible 529 that allows you to choose your funds
3. Scholarships
6. Pay off the house mortgage
Spend every extra dollar you have left after setting aside for living, retirement, college, and mortgage.
Don't keep a low-rate mortgage just so you can invest at a higher rate. After you pay taxes on your investment returns, and factor in the additional risk that the mortgage debt brings, it's not worth it. In the long term, you'll come out ahead by being debt-free.
7. Build wealth
At this point, you're completely debt-free.
The next step is the Pinnacle Point: when your money makes more than you do.
There are 3 good uses for money:
1. Fun
Guilt-free enjoyment, if you can afford it.
2. Investing
Think long-term.
Don't try to time the market.
Choose simple mutual funds and debt-free real estate.
3. Giving
Giving it away can be the most fun you have with your money.
Additional advice
Winning at money is 80% behavior and 20% head knowledge.
"If you will live like no one else, later you can live like no one else."
Debt brings risk, not prosperity. You can't leverage debt to build wealth.
You don't need to build credit because you won't use it if you follow the Total Money Makeover.
Credit card rewards aren't worth it. You end up spending more in unnecessary purchases and interest payments than you make back in rewards. No one ever became rich from credit card rewards.
Choose high deductibles for auto and home insurance.
Make a will.
Choose a term policy, not Whole Life or Universal Life insurance.
Don't prepay your kids' college expenses. You'll make higher returns by putting this money in mutual funds.
Buy a house for 100% down, or if that's absolutely not possible, get a 15-year fixed-rate mortgage.
You don't have to wait until retirement to do what you love. Get a job that you enjoy.
A college education improves the quality of your adult life and career. But, it doesn't ensure a job or success.
If you have cash or a scholarship, go to college. But pay cash; avoid student loans.
Don't get a 30-year mortgage with the intention of paying it off in 15 years. You'll find other things to spend your money on. Having a 15-year mortgage forces you to pay off your home in 15 years.
Don't pay points on your mortgage, since you're just paying interest up front.
Your house payment should be less than 25% of your take-home pay.
Don't lend to friends. If you must give your friends money, give it as a gift. Loans ruin friendships.
"Wealth will make you more of what you are", whether you're a jerk or a generous person.
"The love of money, not money, is the root of all evil." You have a duty to possess wealth to ensure that it's used properly.
Recommended percentages for allocating your money
Charitable Giving 10-15
Saving 5-10
Housing 25-35
Utilities 5-10
Food 5-15
Transportation 10-15
Clothing 2-7
Medical/Health 5-10
Personal 5-10
Recreation 5-10
Debts 5-10
July 5, 2017
Recently, a good friend of mine who knew that I had read this book asked me whether or not I found it helpful. This friend has struggled with managing her personal finances and is drowning in credit card debt. She was feeling pretty hopeless and was worried that she'd never be able to take care of her bills and set enough aside for retirement.
Rather than go into the ins and outs of the book, I downloaded the audiobook version and we listened together while working on paperwork during the work day. Honestly, I just didn't think I could communicate the underlying message of the book without coming across kind of "preachy". This provided a nice way to share the major concepts of the book with her, while providing a strong reminder for me.
As you can imagine, personal finance isn't exactly the most entertaining topic. That is especially true when the take away message is to exercise restraint and behave responsibly. Nobody wants to face the fact that we are to blame for our own financial situations. It is far less painful to blame somebody else for the damage we do to ourselves.
That being said, I really like Dave Ramsey's common sense approach. He tells some hard truths and forces you to take a long, hard look in the mirror. If you're looking for excuses or a pity party, you won't find it here. He is brutally honest.
Sacrifice today for wealth tomorrow is idea. There is no get rich quick scheme presented, just old-fashioned wisdom. Essentially, his advice is to turn back the hands of time and handle money the way my grandparent's generation, and the generations before theirs, did. Don't spend money that you don't have. Save for future expenditures. Quit trying to keep up with the Joneses. It's that simple.
Of course, he does provide guidance for how to get out of debt if you've already accumulated it. His personal story of bankruptcy and how he was able to turn around his finances was inspirational. He made it clear that anyone could do it, but they had to be willing to work hard and make some sacrifices. Most importantly, they would have to evaluate their attitudes toward money and be willing to make some changes in their behavior.
Although I'm not a very religious person, I wasn't bothered by the bible verses that were interspersed throughout the book. Some people might be put off by that, but it wasn't an issue for me. Clearly, his religious views are an important piece of his identity. For people that are more spiritual than I am, this might prove to be a great source of inspiration. It was neither here nor there for me.
All in all, I think that this is a great book. It didn't feel gimmicky or too good to be true. There were no promises or schemes presented. It was just good, sound advice for eliminating debt and living within your means.
In fact, I'll probably make my children listen to this as they get older. I'm planning to purchase the book he wrote with his daughter that is geared toward children as well. Might as well start early.
Check out more of my reviews at www.bookaddicthaven.com
Rather than go into the ins and outs of the book, I downloaded the audiobook version and we listened together while working on paperwork during the work day. Honestly, I just didn't think I could communicate the underlying message of the book without coming across kind of "preachy". This provided a nice way to share the major concepts of the book with her, while providing a strong reminder for me.
As you can imagine, personal finance isn't exactly the most entertaining topic. That is especially true when the take away message is to exercise restraint and behave responsibly. Nobody wants to face the fact that we are to blame for our own financial situations. It is far less painful to blame somebody else for the damage we do to ourselves.
That being said, I really like Dave Ramsey's common sense approach. He tells some hard truths and forces you to take a long, hard look in the mirror. If you're looking for excuses or a pity party, you won't find it here. He is brutally honest.
Sacrifice today for wealth tomorrow is idea. There is no get rich quick scheme presented, just old-fashioned wisdom. Essentially, his advice is to turn back the hands of time and handle money the way my grandparent's generation, and the generations before theirs, did. Don't spend money that you don't have. Save for future expenditures. Quit trying to keep up with the Joneses. It's that simple.
Of course, he does provide guidance for how to get out of debt if you've already accumulated it. His personal story of bankruptcy and how he was able to turn around his finances was inspirational. He made it clear that anyone could do it, but they had to be willing to work hard and make some sacrifices. Most importantly, they would have to evaluate their attitudes toward money and be willing to make some changes in their behavior.
Although I'm not a very religious person, I wasn't bothered by the bible verses that were interspersed throughout the book. Some people might be put off by that, but it wasn't an issue for me. Clearly, his religious views are an important piece of his identity. For people that are more spiritual than I am, this might prove to be a great source of inspiration. It was neither here nor there for me.
All in all, I think that this is a great book. It didn't feel gimmicky or too good to be true. There were no promises or schemes presented. It was just good, sound advice for eliminating debt and living within your means.
In fact, I'll probably make my children listen to this as they get older. I'm planning to purchase the book he wrote with his daughter that is geared toward children as well. Might as well start early.
Check out more of my reviews at www.bookaddicthaven.com
September 7, 2007
Buy it, live it! An amazing system that's not a system--just living within one's means. Worth the investment many times over!
February 9, 2022
I read Financial Peace years ago. We tried to live the plan, but looking back we could have done a lot better. The Total Money Makeover takes the same plan and breaks it down into more detailed babysteps. This REALLY works! We've had our $1000 emergency saving account for years now and have hardly had to dip into it because we really think through what an emergency is. Most of the time we have been able to wait a few weeks until the "extra paycheck," tax return or a bonus comes through instead of using our savings. The debt snowball really works. I was amazed when I saw how much money is going toward our last debt! It will only be a few more months to get it paid off. Yes, we did stop retirement for the past year--it was a simple form to fill out at work and only took a couple minutes. The money that was previously in our IRA is still growing, but we're not adding to it right now. When that debt is gone and we have our 3-6 month savings we'll start it up again. What doesn't make sense is having debt when you retire and using your money from your 401K/IRA to pay off the debt.
This book is just common sense in a big way! There is so much peace in being in control of our money and our marriage is so much better because we have GOALS that we plan together.
This book is a great gift for college graduations and weddings! We buy it on Dave Ramsey's website when it goes on sale for $10 a copy.
Update: June 2018.
I wrote the original post Jan 2008. We still follow this plan. We've been debt free for the past 10 years. no credit cards for even longer. My husband started his own company--debt free and has never borrowed money for it. We paid for six vehicles in cash (a "dave" car for my husband, a family van, then a truck to replaced the "Dave" vehicle, one replaced the worn out family vehicle, the others are the high schoolers and a college car. Currently have 4 good running, paid for vehicles). We have paid college tuition, missionary support and cash flowed a wedding. Our only debt is our house. It will get more attention after our children are grown. We've been amazed at what we can do by being intentional and planning large purchases, vacations and budgeting!
This book is just common sense in a big way! There is so much peace in being in control of our money and our marriage is so much better because we have GOALS that we plan together.
This book is a great gift for college graduations and weddings! We buy it on Dave Ramsey's website when it goes on sale for $10 a copy.
Update: June 2018.
I wrote the original post Jan 2008. We still follow this plan. We've been debt free for the past 10 years. no credit cards for even longer. My husband started his own company--debt free and has never borrowed money for it. We paid for six vehicles in cash (a "dave" car for my husband, a family van, then a truck to replaced the "Dave" vehicle, one replaced the worn out family vehicle, the others are the high schoolers and a college car. Currently have 4 good running, paid for vehicles). We have paid college tuition, missionary support and cash flowed a wedding. Our only debt is our house. It will get more attention after our children are grown. We've been amazed at what we can do by being intentional and planning large purchases, vacations and budgeting!
August 15, 2015
This book is great for those who are in debt because of overspending. Unfortunately Dave Ramsey groups everyone in the same category with the undisciplined, regardless of their background. He uses unrealistic examples of people having a mortgage of $50,000, or someone paying $250/month for a small apartment while paying off debt. He uses examples of young people in their mid-twenties making $50,000 a year. These are completely unrealistic numbers in most regions of the country.
He proudly says that his business is debt-free. Dave Ramsey is not a dentist or a chiropractor or a manufacturing business owner who would need expensive equipment to run his business.
He fails to understand that many people grow up in poverty and are always just barely keeping up with their bills. They may have a mentally ill spouse or child. People face unfair lawsuits, unemployment, death, and other tragedies in life. His self-righteous response is that you should have had your emergency fund in place before these things happened.
Many of us are college-educated, frugal, and self-disciplined. We don’t pay for manicures, we cut everybody’s hair in the family, we don’t buy meat, our vacations are mini-vacations within an hour’s drive from our home, we drive 15-year-old cars, and we live in a small condo.
Perhaps his most arrogant statement is that “there is no excuse to retire without financial dignity in the United States today.”
If you are educated, hard-working, disciplined, and understand how money works, you will waste your money on this book. You can learn a lot more about money and compassion from Suze Orman than from Dave Ramsey. Buy a book by Suze Orman instead.
He proudly says that his business is debt-free. Dave Ramsey is not a dentist or a chiropractor or a manufacturing business owner who would need expensive equipment to run his business.
He fails to understand that many people grow up in poverty and are always just barely keeping up with their bills. They may have a mentally ill spouse or child. People face unfair lawsuits, unemployment, death, and other tragedies in life. His self-righteous response is that you should have had your emergency fund in place before these things happened.
Many of us are college-educated, frugal, and self-disciplined. We don’t pay for manicures, we cut everybody’s hair in the family, we don’t buy meat, our vacations are mini-vacations within an hour’s drive from our home, we drive 15-year-old cars, and we live in a small condo.
Perhaps his most arrogant statement is that “there is no excuse to retire without financial dignity in the United States today.”
If you are educated, hard-working, disciplined, and understand how money works, you will waste your money on this book. You can learn a lot more about money and compassion from Suze Orman than from Dave Ramsey. Buy a book by Suze Orman instead.
November 23, 2008
This book is an insult to the intelligence of any rational human being who has even the slightest notion of what personal finance is all about. Full of filler, fluff, weak-sauce stories trying to be inspirational.
Let me tell you in one sentence what this book took over 200 pages to tell:
Take personal responsibility for your finances and start living within your means; you'll be happy and wealthy eventually because of it.
Don't read this book!
Let me tell you in one sentence what this book took over 200 pages to tell:
Take personal responsibility for your finances and start living within your means; you'll be happy and wealthy eventually because of it.
Don't read this book!
May 30, 2016
*Listened to the audio version of this book*
November 18, 2007
This book is a great step by step plan to help you get control of your finances by walking you through the 7 baby steps.
1. Small Emergency Fund of $1000
2. Pay off all debt except house with debt snowball
3. Fully Fund Emergency Fund to 3-6x of living expenses
4. Invest 15% of income for retirement
5. Fund kids college fund
6. Pay off mortgage
7. Have fun, give and invest
Definitely a must read and the companion website www.mytotalmoneymakeover.com is hands down the best most practical website I've ever seen from making a budget to tracking all your goals to forums and plenty more.
1. Small Emergency Fund of $1000
2. Pay off all debt except house with debt snowball
3. Fully Fund Emergency Fund to 3-6x of living expenses
4. Invest 15% of income for retirement
5. Fund kids college fund
6. Pay off mortgage
7. Have fun, give and invest
Definitely a must read and the companion website www.mytotalmoneymakeover.com is hands down the best most practical website I've ever seen from making a budget to tracking all your goals to forums and plenty more.
February 20, 2008
I probably should have given this book more than three stars, because it's a good start to figuring out a critical piece of the financial puzzle; getting out of debt. This book is debt-centric, so, if you're in debt, then yes, you really should read this book.
However, while focusing on getting out of debt is a crucially important step of freeing up your income (because if the money you make every month is spent every month, you're not financially fit), there are many aspects of your financial self that are not addressed in this book. And, while Mr. Ramsey would probably tell you that these aspects of your financial self can wait until you're out of debt, I don't think it's wise to procrastinate an awareness of your financial whole.
This is not to say that you should rationalize being in debt and/or put off getting out of it; and Mr. Ramsey has a sure-fire way of doing that. So, to the person in debt, the book does contain a money makeover plan; just not a total money makeover plan.
If you want a money makeover that is total, you can combine this book with others ... or my sister, Taibi, has recommended a book called "Making the Most of Your Money," and she says it is a "total" guide to managing money. I'm going to read it myself, soon, and I'll let you know how I like it.
Other books I would recommend about money; "Money Harmony" by Olivia Mellan, and "Secrets of the Millionaire Mind." I'll post reviews of those separately.
However, while focusing on getting out of debt is a crucially important step of freeing up your income (because if the money you make every month is spent every month, you're not financially fit), there are many aspects of your financial self that are not addressed in this book. And, while Mr. Ramsey would probably tell you that these aspects of your financial self can wait until you're out of debt, I don't think it's wise to procrastinate an awareness of your financial whole.
This is not to say that you should rationalize being in debt and/or put off getting out of it; and Mr. Ramsey has a sure-fire way of doing that. So, to the person in debt, the book does contain a money makeover plan; just not a total money makeover plan.
If you want a money makeover that is total, you can combine this book with others ... or my sister, Taibi, has recommended a book called "Making the Most of Your Money," and she says it is a "total" guide to managing money. I'm going to read it myself, soon, and I'll let you know how I like it.
Other books I would recommend about money; "Money Harmony" by Olivia Mellan, and "Secrets of the Millionaire Mind." I'll post reviews of those separately.
March 29, 2017
If you like animated religious sermons, Fox News infomercials and make payments on your Lexus with payday loans then this book is for you.
I'm still on the hunt for a book that will teach me how to invest.
I'm still on the hunt for a book that will teach me how to invest.
November 8, 2011
After hearing about Dave Ramsey from a number of people, I decided to pick this up out of curiosity. I skimmed this book quickly, partly because it is mostly fluff. His crams the book full of testimonials about other families who have gotten out of debt- that's for the outside of the book, not the inside of it. Most of his actual advice (pay for things with cash, don't buy what you can't afford, live below your means, start investing for retirement early) consists of things my parents have been telling me since they started giving me an allowance. Ramsey is also vague about the actual saving of money- he suggests that everyone can get together $1000 in less than a month for their emergency fund. If people could find instantaneously $1000 of their income they weren't using elsewhere, wouldn't they have avoided falling into debt in the first place? I am glad other people have been able to use this system to get out of debt and put their finances in order, but this book did pretty much nothing for me. I would like to find a book that's more explicit about budgeting and investing, and one that doesn't tell me being in debt is like being fat, or that our government is completely incompetent at every opportunity, or one that doesn't belittle my chosen career path.
January 16, 2008
This guy's claim is basically that the key to accumulating a lot of money is to (1) become debt free, (2) save a sizeable nest egg (3-10k)for the big emergencies that typically send people into debt in the first place, and (3) put the rest of your savings in mutual funds. He's particularly insistent that you suck it up and drive old cars that you've paid cash for rather than make payments on a new car.
Good advice, but it would help if he offered more insights on how to follow it, especially since he seems to think that even those deeply in debt can achieve steps (1) and (2)in a year or two. He uses a lot of catch phrases like "live like no one else!" and "save with gazelle-like intensity!" but some more details would go a long way.
Good advice, but it would help if he offered more insights on how to follow it, especially since he seems to think that even those deeply in debt can achieve steps (1) and (2)in a year or two. He uses a lot of catch phrases like "live like no one else!" and "save with gazelle-like intensity!" but some more details would go a long way.
February 10, 2024
“We buy things we don't need with money we don't have to impress people we don't like.”
The total money makeover is one of my favorite finance books of all time. It's filled with lots of practical advice that anyone can implement to become wealthier.
If you plan on reading this, make sure to get the audiobook. It's hilarious listening to Dave go off on tangents and rants about people going into $100k of student debt for an "underwater basket weaving class."
Five stars.
The total money makeover is one of my favorite finance books of all time. It's filled with lots of practical advice that anyone can implement to become wealthier.
If you plan on reading this, make sure to get the audiobook. It's hilarious listening to Dave go off on tangents and rants about people going into $100k of student debt for an "underwater basket weaving class."
Five stars.
March 2, 2016
I can not believe that I've spent the last 12 years working in the Accounting field being such a good steward of my employers money but could never get a good grasp on my own money. The Total Money Makeover book has helped me go from paycheck-to-paycheck-thinking to wealth-building-thinking. Once my eyes were opened (I read the book in 2 days) I knew my financial life would never be the same. I asked my husband to read the book and when he started sending me texts like: Do you know that if we invest X dollars in a good mutual fund from age 30 to age 70 that it will be around 5.5 million dollars?!! I knew Dave had him hook, line & sinker. A good percentage of our marital issues surrounded money but there are no arguments on that subject anymore. We understand what the short term goal is (get debt free) and what the long term goals are (remain debt free & build wealth) so most of the decisions have already been made. Once we saw what "keeping up with the Joneses" does to your greatest wealth building tool (income), we decided that we could cut our life down to "rice & beans" for 2 to 2 1/2 years, clean up the massive mess we had made, and reclaim the nearly $2,000 per month we were paying on debt. I sure wish we had this book as teenagers/ younger adults, I can only imagine where we would be now. But even still, my son will never remember how his parents where up to their eyeballs in debt. We still have about $35k (down from 73k) in consumer debt to go, but thank God our financial family tree has been changed forever.
March 14, 2008
This is a pretty decent plan for getting out of debt and starting to invest. In the time-honored tradition of such self-help books as How To Win Friends and Influence People, Ramsey uses personal stories from other people to drive his points home.
But in essence, the plan is like this:
1) stop buying things, sell off everything you don't need, stop using credit cards, etc.
2) save up a $1000 emergency fund
3) throw all possible cash toward paying off your smallest debt
4) once the first debt is paid off, throw all possible cash toward paying off your second smallest debt, and so on until all you have left is your mortgage (if you have one)
5) save up a 3-6 month emergency fund
6) start a college fund (if you have kids) and pay off your mortgage
7) invest, have fun, etc.
Oh, and while Ramsey uses some Bible quotes here and there, it's pretty easy to ignore the parts about "God's plan for you" and other religious nonsense, and focus on the financial advice.
But in essence, the plan is like this:
1) stop buying things, sell off everything you don't need, stop using credit cards, etc.
2) save up a $1000 emergency fund
3) throw all possible cash toward paying off your smallest debt
4) once the first debt is paid off, throw all possible cash toward paying off your second smallest debt, and so on until all you have left is your mortgage (if you have one)
5) save up a 3-6 month emergency fund
6) start a college fund (if you have kids) and pay off your mortgage
7) invest, have fun, etc.
Oh, and while Ramsey uses some Bible quotes here and there, it's pretty easy to ignore the parts about "God's plan for you" and other religious nonsense, and focus on the financial advice.
November 24, 2009
This book is so helpful, straightforward, and inspiring. I have spent my twenties in the misery of consumer debt and student loans.
I am now credit card debt free and am busting up my student loans.
I like his advice. The very first thing you do is to get 1,000 dollars together BEFORE you start tackling your credit cards. Be aggressive, take a second job, sell your prized possessions, whatever, but get that $1,000. This is not $$ to keep in a checking account but in a savings account and with drawn ONLY FOR AN EMERGENCY.
Now you have a buffer for emergencies. Now when the car breaks or a pipe breaks you don't have to break out the credit card, and it is the first step from freeing you from the shackles of debt.
Then you order your debts smallest to largest. Once you pay off the smallest, you can take the $$ from the minimum payment and use it to pay off the next smallest debt. It snowballs.
I'm a substitute teacher and make a small salary. To be free of the unrelenting hundreds of dollars of credit card debt is the best thing that has happened to me in so long.
I am being over dramatic, but I truly feel hope for my financial future since I was about 14.
You gotta buy this book. He has a radio show too but I've never listened.
I am now credit card debt free and am busting up my student loans.
I like his advice. The very first thing you do is to get 1,000 dollars together BEFORE you start tackling your credit cards. Be aggressive, take a second job, sell your prized possessions, whatever, but get that $1,000. This is not $$ to keep in a checking account but in a savings account and with drawn ONLY FOR AN EMERGENCY.
Now you have a buffer for emergencies. Now when the car breaks or a pipe breaks you don't have to break out the credit card, and it is the first step from freeing you from the shackles of debt.
Then you order your debts smallest to largest. Once you pay off the smallest, you can take the $$ from the minimum payment and use it to pay off the next smallest debt. It snowballs.
I'm a substitute teacher and make a small salary. To be free of the unrelenting hundreds of dollars of credit card debt is the best thing that has happened to me in so long.
I am being over dramatic, but I truly feel hope for my financial future since I was about 14.
You gotta buy this book. He has a radio show too but I've never listened.
June 14, 2007
I love Dave Ramsey. We have been doing the Total Money Makeover since Jan 1 of this year (we started after reading Dave's book "Financial Peace") and we are already seeing plenty of success with our baby steps. We pay for everything in cash now and if we don't have the cash, we don't buy it. We've got an emergency fund in place and have used it when things came up - auto repairs, etc. And best of all, we are in debt reduction mode - we had cut up all the credit cards Jan 1 and now we only see balances getting smaller or eliminated.
I highly recommend Dave's book. Wish I had found it as a younger person. He writes in an very straight-forward, easy to understand way, without being dry or dull.
I highly recommend Dave's book. Wish I had found it as a younger person. He writes in an very straight-forward, easy to understand way, without being dry or dull.
March 20, 2008
Let me preface this by saying that I'm a HUGE fan of Dave Ramsey, so of course I'm a bit biased. I listen to his talk radio show every day without fail, and I'm an active member of his subscription website called MyTMMO (http://www.mytotalmoneymakeover.com).
My husband and I began working the baby steps in September 2005. It took us 22 long months of discipline and sacrifice to become completely debt-free. We don't own a home yet, so yes, we really are living the debt-free life. We paid off more than $36,000 and our income jumped up dramatically during that period of time using Ramsey's baby steps. The last debt was paid off on June 15, 2007 (it was my student loan). I can't even describe how good that felt. We called the talk radio show on July 13, 2007 to proclaim our debt freedom to all of America. Dave does something he calls "Debt Free Fridays" where callers who've paid off all their debts can call in and scream. The show has become a bit famous for it.
The principles in Ramsey's book really are simple. And the people who listen to his radio show or watch his TV show on FBN are incredibly loyal to him. What inspires such loyalty? Well, I'd say it's the bluntness, directness, and authenticity of Dave's personality. His slight Tennessee drawl is an effective "I'm just a good ol' boy" tool. He says what he means and means what he says.
Yes, Dave is a Christian, and he certainly won't hide it. He isn't "preachy," as someone else said, but if someone asks a question about tithing, he's not going to shy away from it. There are mentions in the book about his Christian roots, but that's just part of his character. And if you're curious about the "baby steps," the name comes from the movie What About Bob? Ramsey often declares his financial principles as God's and Grandma's ways of dealing with money. And he's right. Generations before us really did use these principles. We've just forgotten them as credit cards and loans have become the popular way to pay for things.
When Dave says that normal is broke, he isn't kidding. I'm happy to be called "weird."
My husband and I began working the baby steps in September 2005. It took us 22 long months of discipline and sacrifice to become completely debt-free. We don't own a home yet, so yes, we really are living the debt-free life. We paid off more than $36,000 and our income jumped up dramatically during that period of time using Ramsey's baby steps. The last debt was paid off on June 15, 2007 (it was my student loan). I can't even describe how good that felt. We called the talk radio show on July 13, 2007 to proclaim our debt freedom to all of America. Dave does something he calls "Debt Free Fridays" where callers who've paid off all their debts can call in and scream. The show has become a bit famous for it.
The principles in Ramsey's book really are simple. And the people who listen to his radio show or watch his TV show on FBN are incredibly loyal to him. What inspires such loyalty? Well, I'd say it's the bluntness, directness, and authenticity of Dave's personality. His slight Tennessee drawl is an effective "I'm just a good ol' boy" tool. He says what he means and means what he says.
Yes, Dave is a Christian, and he certainly won't hide it. He isn't "preachy," as someone else said, but if someone asks a question about tithing, he's not going to shy away from it. There are mentions in the book about his Christian roots, but that's just part of his character. And if you're curious about the "baby steps," the name comes from the movie What About Bob? Ramsey often declares his financial principles as God's and Grandma's ways of dealing with money. And he's right. Generations before us really did use these principles. We've just forgotten them as credit cards and loans have become the popular way to pay for things.
When Dave says that normal is broke, he isn't kidding. I'm happy to be called "weird."
May 29, 2019
I'm temporarily - I hope - departing from my usual review style while life is crazy and we're in the construction zone. I'm trying this rather than no review at all. I'm basically going to make occasional notes as I read, which is not as satisfactory to me, but hopefully they'll still be helpful.
5/28/19: I'm not the financial manager for my home. My husband is. But I decided to listen to this book because I've heard good things about Dave Ramsey and his Financial Peace University course. We didn't take the course at our church because we didn't want to get rid of our credit cards and because we were decently happy with our financial system. However, right now money is a stressor for my husband because we're putting an expensive addition onto our house. So I decided to listen to it. I'm finding it very entertaining, and I am understanding what he's talking about. Which is great, because I've often been confused by the information finance managers have shared with us when we've had meetings with them in the past. I love how Mr. Ramsey outlines a plan with simple (in concept), concrete steps which he insists must be followed in order, no matter where you are in life. I'd recommend this book for anyone with an income. Period. I think I'm going to give it 5 stars because I think it's that good. But I'll be fair and wait until I'm done. Thomas Nelson is a Christian book publisher, but I think it's worth noting that the author rarely makes Christian references, and when it is it's usually a brief verse from the book of Proverbs. Proverbs does have a lot of wise things to say about money, so I think any non-Christian would not be turned off by this book. Now that I'm listening to this book, I'm eager to start our family financial meetings again (with my husband and two oldest children).
5/28/19: I finished this today. I think my notes above pretty well sums up my thoughts on the book. I'd like my oldest son, who is nearly 16, to listen to it.
5/28/19: I'm not the financial manager for my home. My husband is. But I decided to listen to this book because I've heard good things about Dave Ramsey and his Financial Peace University course. We didn't take the course at our church because we didn't want to get rid of our credit cards and because we were decently happy with our financial system. However, right now money is a stressor for my husband because we're putting an expensive addition onto our house. So I decided to listen to it. I'm finding it very entertaining, and I am understanding what he's talking about. Which is great, because I've often been confused by the information finance managers have shared with us when we've had meetings with them in the past. I love how Mr. Ramsey outlines a plan with simple (in concept), concrete steps which he insists must be followed in order, no matter where you are in life. I'd recommend this book for anyone with an income. Period. I think I'm going to give it 5 stars because I think it's that good. But I'll be fair and wait until I'm done. Thomas Nelson is a Christian book publisher, but I think it's worth noting that the author rarely makes Christian references, and when it is it's usually a brief verse from the book of Proverbs. Proverbs does have a lot of wise things to say about money, so I think any non-Christian would not be turned off by this book. Now that I'm listening to this book, I'm eager to start our family financial meetings again (with my husband and two oldest children).
5/28/19: I finished this today. I think my notes above pretty well sums up my thoughts on the book. I'd like my oldest son, who is nearly 16, to listen to it.
July 28, 2018
This is my review of the unabridged audiobook. Here's my review of the full book from a few years ago.
My main objection to this book and Ramsey's approach is his anti-debt stance. I understand that he's trying to help people who struggle with debt, and that stance achieves his goal. You'd give different advice about drinking to an alcoholic than a non-alcoholic. I like that he's helping people, and I agree with many of the principles in this book. It's just not for me because I'm more logical than emotional when it comes to money. Ramsey says,
Ramsey presents this as a system to become debt-free and wealthy in 20-40 years.
Notes
Motto: "If you live like no one else, later you can live like no one else." If you will the make sacrifices now that most people aren't willing to make, later you can live like those people can't.
Debt
Debt isn't a tool to create prosperity. It adds risk, usually doesn't bring prosperity, and isn't usually used by wealthy people. The additional risk of debt offsets any leverage it could bring.
75% of Forbes 400 said best way to build wealth is to become and stay debt-free.
If you must have a mortgage, get a conventional 15 year fixed with payment no more than 20% of take-home pay.
You don't need credit to get a mortgage, if you "live right" and find a mortgage professional who knows how to do underwriting.
Visa's regulations require banks to give same theft and fraud protections to debit cards as credit cards. [I've always heard from financial sources that credit cards have better protection than debit cards; see articles at CreditCards.com, NerdWallet, Clark.com - Chad]
Insurance
Get 20-year level term life insurance equal to ~10x your income.
Get long-term disability insurance. Can usually get coverage that equals 50-75% of income.
If you're self-employed, get an MSA.
If you're over 60, get long-term care insurance.
Investing
Invest 15% of gross income into retirement.
Invest in mutual funds:
25% growth and income
25% growth (mid-cap or equity; e.g., S&P index)
25% international
25% aggressive growth (small cap, emerging)
College
You or your kids should go to college only if you have the cash or the scholarships to avoid student loans.
Fund college, or at least first step, with ESA in growth-stock mutual fund.
Mortgage
It's not wise to invest rather than pay off mortgage. Don't use lower-interest debt to invest in higher-return investments. After adjusting for taxes and risk (carrying a large amount of debt and not owning your home), you come out ahead by being debt free.
Don't take a 30-year mortgage and promise to pay it in 15 years. Unexpected expenses will come up wrong and you won't be able to stick to the 15-year schedule. 97.3% of people don't systematically prepay.
If you must have a mortgage, pretend only 15-year mortgages exist.
Families that stay "gazelle intense" pay off mortgage 7 years from date they set that goal.
My main objection to this book and Ramsey's approach is his anti-debt stance. I understand that he's trying to help people who struggle with debt, and that stance achieves his goal. You'd give different advice about drinking to an alcoholic than a non-alcoholic. I like that he's helping people, and I agree with many of the principles in this book. It's just not for me because I'm more logical than emotional when it comes to money. Ramsey says,
Personal finance is 80% behavior and 20% head knowledge. … we are more concerned with modifying behavior than correct mathematics. … the math does need to work, but sometimes motivation is more important than math.I cringed when Ramsey said,
As for building credit for other stuff, leave that to the losers. With your Total Money Makeover, you won't be taking on that kind of debt.Ramsey overlooks or disregards all the ways your credit score can affect your life, such as auto insurance rates, home insurance rates, employment options, and utilities rates.
Ramsey presents this as a system to become debt-free and wealthy in 20-40 years.
Notes
Motto: "If you live like no one else, later you can live like no one else." If you will the make sacrifices now that most people aren't willing to make, later you can live like those people can't.
Debt
Debt isn't a tool to create prosperity. It adds risk, usually doesn't bring prosperity, and isn't usually used by wealthy people. The additional risk of debt offsets any leverage it could bring.
75% of Forbes 400 said best way to build wealth is to become and stay debt-free.
If you must have a mortgage, get a conventional 15 year fixed with payment no more than 20% of take-home pay.
You don't need credit to get a mortgage, if you "live right" and find a mortgage professional who knows how to do underwriting.
Visa's regulations require banks to give same theft and fraud protections to debit cards as credit cards. [I've always heard from financial sources that credit cards have better protection than debit cards; see articles at CreditCards.com, NerdWallet, Clark.com - Chad]
Insurance
Get 20-year level term life insurance equal to ~10x your income.
Get long-term disability insurance. Can usually get coverage that equals 50-75% of income.
If you're self-employed, get an MSA.
If you're over 60, get long-term care insurance.
Investing
Invest 15% of gross income into retirement.
Invest in mutual funds:
25% growth and income
25% growth (mid-cap or equity; e.g., S&P index)
25% international
25% aggressive growth (small cap, emerging)
College
You or your kids should go to college only if you have the cash or the scholarships to avoid student loans.
Fund college, or at least first step, with ESA in growth-stock mutual fund.
Mortgage
It's not wise to invest rather than pay off mortgage. Don't use lower-interest debt to invest in higher-return investments. After adjusting for taxes and risk (carrying a large amount of debt and not owning your home), you come out ahead by being debt free.
Don't take a 30-year mortgage and promise to pay it in 15 years. Unexpected expenses will come up wrong and you won't be able to stick to the 15-year schedule. 97.3% of people don't systematically prepay.
If you must have a mortgage, pretend only 15-year mortgages exist.
Families that stay "gazelle intense" pay off mortgage 7 years from date they set that goal.
April 25, 2010
My husband & I have come up with a budget & decided to follow Dave Ramsey's 7 step plan to become completely debt free, including our mortgage! We are very excited about it! Our goal is to get to the point where we can pay cash for everything, build wealth & plan for retirement by investing, have fun, & give to others.
The great thing about this plan is that it is NOT a "Get-Rich-Quick Scheme". It will take a lot of hard work and sacrifice, but it will be worth it in the end! It is basic, common sense principals. I like the fact that there's a plan for an emergency fund. You can have a safety net while you are eliminating your debt.
First, you have to change your mind-set. Credit cards, student loans, car payments, & even a 30-year mortgage do not have to be the norm. Debt, any debt, is bad. Self-reliance, security, & FREEDOM is something that few people have achieved.
ANYONE can do this! It does not matter how much income you have. It does not matter how much debt you are in. You CAN make the change! Make a plan & follow it with "gazelle-like intensity". :)
"If you live like no one else, later you can live like no one else!"
The great thing about this plan is that it is NOT a "Get-Rich-Quick Scheme". It will take a lot of hard work and sacrifice, but it will be worth it in the end! It is basic, common sense principals. I like the fact that there's a plan for an emergency fund. You can have a safety net while you are eliminating your debt.
First, you have to change your mind-set. Credit cards, student loans, car payments, & even a 30-year mortgage do not have to be the norm. Debt, any debt, is bad. Self-reliance, security, & FREEDOM is something that few people have achieved.
ANYONE can do this! It does not matter how much income you have. It does not matter how much debt you are in. You CAN make the change! Make a plan & follow it with "gazelle-like intensity". :)
"If you live like no one else, later you can live like no one else!"
February 8, 2017
Giselle wanted the two of us to listen to this, and I got a few things out of it for sure - but much of it doesn't apply to every situation, regardless of how much the author wants you to think it does. Also the audiobook was kind of hilarious because it's just a guy yelling at you - literally - for 4 hours, haha.
October 25, 2020
There a number of money focused books that address the whole financial picture while specializing in a particular area such as investing, money psychology, or early retirement. This book touches on a broad array of topics, but the central theme is debt. Dave Ramsey has had challenging experiences with debt causing him to offer advice, which in my opinion, is an overcorrection: “to live debt free.” While the idea of living without debt of any kind is a protection to those with problematic spending personalities, the average person will benefit more from its responsible use than from its avoidance.
His tone comes across as demeaning and he seems to assume his audience is uneducated and incapable. He treats the reader like a child needing a hyped-up, zealous commitment in order to not mess up his plan. He uses cult-like imagery by saying that people will judge your abnormal behavior, but to just press forward knowing you’re right (which as a rule I find problematic even if it is effective). He creates this level of religious mysticism to make you feel like participating would make you one of the special few. Since the majority of Americans have very little Emergency/ Retirement Funds, there is truth in this mentality but I’d rather it were motivated by something less prone to abuse by corrupt leaders.
That being said, Ramsey doesn’t seem to be pushing too self-interested of an agenda. It’s refreshing to hear someone talk about one of the main reasons for getting rich is to have the means to give and help others. I love that he slams financial products that do more harm than good like: get rich quick schemes, payday loans, credit card abuse, buying new cars, whole life insurance, spending to impress people, and more. Many of his altruistic motivations seem to stem from his religion, which I respect. But some of the connections to Christianity seem contrived (depending on how you feel about religion). For example, it feels out of place to hear that: "god sent a Jaguar back into my life. He returned what the locusts had eaten, but he only did so when it was not my idol."
There are areas that I find EXTREMELY problematic that I would recommend getting a second opinion on before following:
-He frequently quotes getting a standard "12% average annual return" which seems optimistic, if not misleading. While that is a possible figure, it is unlikely to be reached while using the broad mutual funds he suggests. One would be better served assuming the commonly quoted average of ~7.5% and then being ahead if that number is surpassed. I worry about people planning their lives with that as the baseline.
-He recommends paying off debts before anything else, even before taking advantage of company 401k matching. While it's nice to focus on the emotional benefit of seeing debts disappear, missing out on free money is irresponsible. You lose a guaranteed 100% return in order to avoid an interest rate that is surely less than 100%. While there are situations where paying debts should be the priority, the blanket statement of “paying debts first no matter what,” can do more harm than good.
- He also says that if your net worth gets to a point that you can live off 8% of your savings, you can retire. This feels like an unsafe metric to live by. Most voices in the finance world preach aiming to live off 4% of savings, which is a safer route. To confidently expect 8%+ gains every year seems dangerous. For someone so pessimistic about debt, he is very optimistic about market returns which could lead to problems for someone mapping out their retirement.
Overall, this is not a book I’d recommend. I’m sure he has helped countless people and I love that he has an emphasis on charitable giving. But there is simpler, more helpful advice for the average person out there.
His tone comes across as demeaning and he seems to assume his audience is uneducated and incapable. He treats the reader like a child needing a hyped-up, zealous commitment in order to not mess up his plan. He uses cult-like imagery by saying that people will judge your abnormal behavior, but to just press forward knowing you’re right (which as a rule I find problematic even if it is effective). He creates this level of religious mysticism to make you feel like participating would make you one of the special few. Since the majority of Americans have very little Emergency/ Retirement Funds, there is truth in this mentality but I’d rather it were motivated by something less prone to abuse by corrupt leaders.
That being said, Ramsey doesn’t seem to be pushing too self-interested of an agenda. It’s refreshing to hear someone talk about one of the main reasons for getting rich is to have the means to give and help others. I love that he slams financial products that do more harm than good like: get rich quick schemes, payday loans, credit card abuse, buying new cars, whole life insurance, spending to impress people, and more. Many of his altruistic motivations seem to stem from his religion, which I respect. But some of the connections to Christianity seem contrived (depending on how you feel about religion). For example, it feels out of place to hear that: "god sent a Jaguar back into my life. He returned what the locusts had eaten, but he only did so when it was not my idol."
There are areas that I find EXTREMELY problematic that I would recommend getting a second opinion on before following:
-He frequently quotes getting a standard "12% average annual return" which seems optimistic, if not misleading. While that is a possible figure, it is unlikely to be reached while using the broad mutual funds he suggests. One would be better served assuming the commonly quoted average of ~7.5% and then being ahead if that number is surpassed. I worry about people planning their lives with that as the baseline.
-He recommends paying off debts before anything else, even before taking advantage of company 401k matching. While it's nice to focus on the emotional benefit of seeing debts disappear, missing out on free money is irresponsible. You lose a guaranteed 100% return in order to avoid an interest rate that is surely less than 100%. While there are situations where paying debts should be the priority, the blanket statement of “paying debts first no matter what,” can do more harm than good.
- He also says that if your net worth gets to a point that you can live off 8% of your savings, you can retire. This feels like an unsafe metric to live by. Most voices in the finance world preach aiming to live off 4% of savings, which is a safer route. To confidently expect 8%+ gains every year seems dangerous. For someone so pessimistic about debt, he is very optimistic about market returns which could lead to problems for someone mapping out their retirement.
Overall, this is not a book I’d recommend. I’m sure he has helped countless people and I love that he has an emphasis on charitable giving. But there is simpler, more helpful advice for the average person out there.
February 1, 2011
This book was highly recommended on several websites I read, so I figured I'd give it a shot. I was...very disappointed.
I have to give credit to Mr Ramsey for taking absolutely obvious, common sense money advice, and turning it into a multi-million dollar business. Spoiler alert: if you spend less than you owe for long enough, you'll be debt-free and have money in the bank! If you've never thought about budgeting, or even tracking what debts you have, there's some valuable stuff in here; although at that point you might want to start with a straight-up basic personal finance book.
What's more troublesome is some of the other aspects of the book, like the fatphobia spread all through it; his ongoing metaphor is saying that being financially 'fat' is like being physically fat, and then uses a series of contradictory examples and body-shaming to get through it.
If his system works for you, great. I've been living a somewhat modified version of it for a few years now, which is part of why his book seemed so obvious, I guess; however, I don't believe in obsessing over money to the exclusion of all other aspects of your life.
I have to give credit to Mr Ramsey for taking absolutely obvious, common sense money advice, and turning it into a multi-million dollar business. Spoiler alert: if you spend less than you owe for long enough, you'll be debt-free and have money in the bank! If you've never thought about budgeting, or even tracking what debts you have, there's some valuable stuff in here; although at that point you might want to start with a straight-up basic personal finance book.
What's more troublesome is some of the other aspects of the book, like the fatphobia spread all through it; his ongoing metaphor is saying that being financially 'fat' is like being physically fat, and then uses a series of contradictory examples and body-shaming to get through it.
If his system works for you, great. I've been living a somewhat modified version of it for a few years now, which is part of why his book seemed so obvious, I guess; however, I don't believe in obsessing over money to the exclusion of all other aspects of your life.
April 14, 2011
I'm always cautious about books or products which supposedly save you money. What's the old adage? "How do you make a lot of money? Write a book about how to make a lot of money"
This book did that annoying thing where it spends the first few chapters telling you how great the system works, but doesn't give the system out until the second half of the book. I'm not a fan of that particular literary device.
Also, I felt like many pages of "success stories" were overkill. A few would have been great, but there are so many as to make them superfluous.
That said,
His principles are sound and anyone encouraging people to get out of debt is fine with me.
This book did that annoying thing where it spends the first few chapters telling you how great the system works, but doesn't give the system out until the second half of the book. I'm not a fan of that particular literary device.
Also, I felt like many pages of "success stories" were overkill. A few would have been great, but there are so many as to make them superfluous.
That said,
His principles are sound and anyone encouraging people to get out of debt is fine with me.
April 7, 2017
I won this book as part of a prize from a radio quiz contest.
Dave Ramsey is a radio talk show host of The Total Money Makeover. It's on every weekend.
This book basically repeats everything he says on his show: Invest your money wisely, stay out of debt, etc. A lot of the advice is just common sense, but some of it is pretty handy.
If you like his radio show, you'll like the book. If not, you pay your money and take your chances.
Dave Ramsey is a radio talk show host of The Total Money Makeover. It's on every weekend.
This book basically repeats everything he says on his show: Invest your money wisely, stay out of debt, etc. A lot of the advice is just common sense, but some of it is pretty handy.
If you like his radio show, you'll like the book. If not, you pay your money and take your chances.
April 1, 2019
This book contains very helpful steps regardless of what your income is or how much debt you have. I also appreciated the plethora of stories from regular people with a variety of backgrounds explaining how the Total Money Makeover worked for them. I’ll definitely read this again and implement this system!
December 8, 2019
I'm currently obsessed with Dave Ramsey. I think everyone should read this book!!! And listen to his podcast and together we can change the culture of spending and consuming to one of living and giving like no one else!
May 7, 2018
6 years, 3 months
--Pre review --
I'm very familiar with Dave Ramsey (I was introduced to him by my husband). I like both him and Suze Orman (but for different reasons).
This is more of a twofer for me: I get a refresher course on not spending all my damn money AND I knock this book off Mt. TBR. Win/Win.
When I first started listening to Dave's radio show + podcasts (20years+), I was certainly part of his target audience: someone who was never taught about finance and made bad financial decisions. The only financial knowledge I received prior to college was instructions on how to write a check (no, I didn’t know how to balance a checkbook). When I got to college, credit card companies (they were set up outside the student union and dorms like vultures) quickly taught me more than I wanted to know about finance. I was told that I could get a credit card because my scholarship was the equivalent of income. *headdesk* I had somewhere in the nature of 5 credit cards before I was finished with my first semester of college.
Yeah, I had a shitton of debt.
Using Dave's very basic and commonsense tools (he says that it's the same advice you'd get from your grandma but he keeps his teeth in, lol), I was able to dig myself out of all my debt.
There are somethings he suggests that I do not do - but it's more about personal convenience/laziness rather than a belief that he's incorrect. I have a 30-year mortgage and I use a debit card rather than cash. The emergency fund? I think it is THE MOST IMPORTANT thing he can suggest to anyone, especially humans who live in the world. ;-) The very first year we bought our house we had to replace my car, replace the roof AND replace the A/C. Can you imagine?? We JUST bought the house - can you imagine what it would have been like without an emergency fund? What could have turned into a financial nightmare ended up being an[major] inconvenience.
This is not a book or a system for those who want complicated or sophisticated. This is simple math and simple concepts that work. I know for a fact that they work because I've seen my life changed because of them. I know I could do better, though. *whispers* I stop listening to Dave when I want to spend money.
Note: I really loved the debt free phone calls Dave takes on his show. I miss that here in the book. Those calls - so full of excitement for the future - used to make me a little misty eyed.
--After Reading Review –
So, I feel a little embarrassed reading this book. We should be firmly in the wealth building stage of our lives but I have a spending PROBLEM. I like stuff – I like the act of buying stuff and I don’t have a saver’s spirit. My husband does but I need a portable budget and constant reminders. CONSTANT.
Example: I have a tiny bit of business debt I seriously need to get rid of. It’s bothering my husband like nobody’s business so I really need it gone. But what did I do on Friday? I went to Sephora and bought Illuminator and a lip gloss. $60!!!! That same $60 could have been put towards my debt. Hubby has not a clue I bought it, either. What’s worse is that I didn’t NEED the illuminator or the gloss. I have plenty of illuminator – just not in the shade I wanted (And I’m thinking of taking this back for a different shade but that would be ridiculous because all sorts of complicated makeup reasons).
Maybe I need to start listening to the podcast again…
--Pre review --
I'm very familiar with Dave Ramsey (I was introduced to him by my husband). I like both him and Suze Orman (but for different reasons).
This is more of a twofer for me: I get a refresher course on not spending all my damn money AND I knock this book off Mt. TBR. Win/Win.
When I first started listening to Dave's radio show + podcasts (20years+), I was certainly part of his target audience: someone who was never taught about finance and made bad financial decisions. The only financial knowledge I received prior to college was instructions on how to write a check (no, I didn’t know how to balance a checkbook). When I got to college, credit card companies (they were set up outside the student union and dorms like vultures) quickly taught me more than I wanted to know about finance. I was told that I could get a credit card because my scholarship was the equivalent of income. *headdesk* I had somewhere in the nature of 5 credit cards before I was finished with my first semester of college.
Yeah, I had a shitton of debt.
Using Dave's very basic and commonsense tools (he says that it's the same advice you'd get from your grandma but he keeps his teeth in, lol), I was able to dig myself out of all my debt.
There are somethings he suggests that I do not do - but it's more about personal convenience/laziness rather than a belief that he's incorrect. I have a 30-year mortgage and I use a debit card rather than cash. The emergency fund? I think it is THE MOST IMPORTANT thing he can suggest to anyone, especially humans who live in the world. ;-) The very first year we bought our house we had to replace my car, replace the roof AND replace the A/C. Can you imagine?? We JUST bought the house - can you imagine what it would have been like without an emergency fund? What could have turned into a financial nightmare ended up being an[major] inconvenience.
This is not a book or a system for those who want complicated or sophisticated. This is simple math and simple concepts that work. I know for a fact that they work because I've seen my life changed because of them. I know I could do better, though. *whispers* I stop listening to Dave when I want to spend money.
Note: I really loved the debt free phone calls Dave takes on his show. I miss that here in the book. Those calls - so full of excitement for the future - used to make me a little misty eyed.
--After Reading Review –
So, I feel a little embarrassed reading this book. We should be firmly in the wealth building stage of our lives but I have a spending PROBLEM. I like stuff – I like the act of buying stuff and I don’t have a saver’s spirit. My husband does but I need a portable budget and constant reminders. CONSTANT.
Example: I have a tiny bit of business debt I seriously need to get rid of. It’s bothering my husband like nobody’s business so I really need it gone. But what did I do on Friday? I went to Sephora and bought Illuminator and a lip gloss. $60!!!! That same $60 could have been put towards my debt. Hubby has not a clue I bought it, either. What’s worse is that I didn’t NEED the illuminator or the gloss. I have plenty of illuminator – just not in the shade I wanted (And I’m thinking of taking this back for a different shade but that would be ridiculous because all sorts of complicated makeup reasons).
Maybe I need to start listening to the podcast again…
February 22, 2017
I didn't read this whole thing. I've read it before. I just read about 1/2 of it and skimmed the rest so I could re-motivate myself in the area of my finances. I didn't read most of the personal stories, but think they're great in helping people to see that Dave Ramsey's plan really works. I like how the "baby steps" are very practical and make the idea of being debt free seem an achievable goal. I'm in!
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