The Total Money Makeover - Dave Ramsey

It can be difficult to admit, but we often use money irresponsibly. If you want to build a happy and fulfilling life, you must change the way you spend your money, and a good way to do that is by following Dave Ramsey's simple and straightforward plan, dealt with in the book "The Total Money Makeover".

Unlike cliché promises, like "become a millionaire in a short time", his advice is consistent and based on the financial education that really works.

Thus, your chances of getting your finances in order and becoming financially stable will increase.

Want to know more? So continue reading this PocketBook and start your own journey towards financial health!

About the book "The Total Money Makeover"

"The Total Money Makeover", released in 2013, was written by Dave Ramsey. This is the most popular personal finance book of all time, with over 5 million copies sold.

The work shows how to stop accepting the debt, eliminate it completely and build the financial future that you long for.

About the author Dave Ramsey

Dave Lawrence Ramsey III was born in 1960 in the United States. He is a businessman and radio host. He graduated in 1982 from the College of Business Administration at the University of Tennessee with a degree in Finance and Real Estate.

The radio show, "The Dave Ramsey Show", has a combined audience of more than 12 million people a week. The program is available on more than 575 radio stations and other channels.

Ramsey has several books on the New York Time bestseller's list, among them are: "Financial Peace", "More Than Enough" and "EntreLeadership".

To whom is this book indicated?

Debt will always be your worst expense, even if it is not your biggest expense per month. That's because it will always grow over time. With each passing day the debt will increase with the aggressive interest of the banks.

In "The Total Money Makeover", author Dave Ramsey offers us a project to reach wealth and get out of debt and credit cards.

If you want to re-educate yourself financially, this work is for you!

Main ideas of the book "The Total Money Makeover"

• You are not as financially secure as you think;
• Start by taking small steps;
• Create an "emergency fund";
• Pay for what you can afford;
• Do not take the lives of others as an example;
• Have fun with your money;
• How to spend the money you have earned so ambitiously.

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Overview: Time to act

If someone asked you, "are you financially comfortable?", what would your answer be? Many people feel secure enough in their finances, giving the impression that the difficulties seem very far away.

It doesn't matter if you feel safe or insecure at this point, insecurity is closer than you think. Maybe you have a house, a car, probably a job too.

Imagine now that suddenly you lose your job, could you keep paying your bills? Stability is an illusion, even if it doesn't seem like it sometimes. One way to avoid unpleasant surprises is to take action. Now.

Sometimes financial difficulties arise, and before you know it, it's too late. However, it is easy to leave things as they are and do nothing, just wait. This attitude is completely irresponsible, as things will continue to change until they go wrong, it is natural.

For this reason, author Dave Ramsey emphasizes in his book, "The Total Money Makeover", that taking the first step is essential. It's time to make a change!

Overview: The real face of debt

Currently, debt is part of our lifestyle, it is difficult to imagine living without it. Whether in the form of a loan, mortgage or credit card.

The book "The Total Money Makeover" explains that, although the credit card increases the purchasing power of its users, it will not lead them to financial happiness, on the contrary, in the long run it will only lead to instability.

According to the American Bankruptcy Institute, 69% of people who file for bankruptcy state that the debts were caused by credit cards. On the other hand, truly wealthy people are inclined to avoid debt altogether.

Another interesting fact is that 75% of individuals from Forbes 400 declared that avoiding debt is the best way to build wealth. Companies like Harley-Davidson and Walgreen are run without debt.

Author Dave Ramsey says that:

"If these individuals and companies can achieve success without debt, why can not we do the same?"

Overview: Setting up an emergency fund

Although you know that you need to adjust your financial situation, you cannot change everything at once. So, you need to take it one step at a time, that way, you will make a gradual advance and stay motivated, without radical changes in the short term.

Where to start? Author Dave Ramsey suggests in his book, "The Total Money Makeover", that the first step is to create an emergency fund.

According to Money Magazine, 78% of people experience a negative downturn in life, over an estimated 10 years. So, being prepared for it is essential.

A good initial value for the emergency fund would be $ 1, 000, however, this amount does not cover many things, but it is a start, and it will decrease the chances of getting into debt. Remember, the purpose of this fund is emergencies, if you take something out of it, replenish it as soon as possible.

Overview: Pay your debts and increase your emergency fund

It's time to take your payments seriously. Start by listing your debts, from the smallest to the largest. According to the author Dave Ramsey, as you liquidate the smaller ones, you get inspired to deal with the bigger and more complex ones.

Now that you have a plan to deal with your debts, it is time to increase the emergency fund. The goal now is to make sure that it can cover a period of 3 to 6 months of your expenses.

Everyone has different needs, so count your own and see how much you need to save. In doing so, you will gain confidence and security to continue your life path.

Overview: Building wealth

From now on you should be debt free and have already started saving for your future. This is the time to create your wealth. Surround yourself with estate planning experts, tax consultants and lawyers. Anyway, people who will give you good advice on what to do with your money.

Keep in mind that understanding about financial management does not mean that you must live like a miser. Have fun using your money as much as you can, after all fun is essential in the lives of all of us.

Should someone have a $ 30, 000 watch? A $ 200, 000 car? Of course, but only those who can afford it. The advice given by author Dave Ramsey in his book, "The Total Money Makeover", is: remember to spend your money on only what you can buy, and forget the rest.

What do other authors say about it?

For Robert Kiyosaki, author of the best-selling book "Rich Dad, Poor Dad", the journey to enrichment should begin as early as possible, and it consists of evaluating your finances, setting personal goals and pursuing the knowledge necessary to reach your objectives.

According to the author of "Think and Grow Rich", Napoleon Hill, the first step to becoming rich is to have a strong desire to be rich. It may seem simple, doesn't it? But that desire has to be a real "blood in the eye" and possess a good deal of persistence.

Finally, Paulo Vieira, author of the book "Enrichment Factor", says that the journey of enrichment is made of peaks and valleys. Be prepared and willing not to stop in the middle of the road.

Remember that not giving up is what will make you a millionaire. Make sure you have a successful mindset, be able to see adversity and move on, doing what has to be done.

Okay, but how can I apply this to my life?

For most people, financial stability is just a comforting illusion. However, you have the ability to change your financial situation through this work.

Following the advice of author Dave Ramsey, your life will remain debt-free and you will be financially successful.

Don't take other people's lives as a basis. You probably know some people who seem to be "well off". Don't worry, there are also those who are doing more than they really seem.

It is also important that you keep track of your personal finances, with information and details about your monthly income and expenses, as well as a list of all your expenses.

Did you like this summary of the book "The Total Money Makeover"?

We hope you enjoyed our summary and are able to apply the advice of the author, Dave Ramsey, to your financial life. Leave your opinion in the comments, your feedback is very important to us!

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