In Dave Ramsey's book, The Total Money Makeover: A Proven Plan for Financial Fitness
, he helps readers learn how to get out of debt and reach full financial freedom. A friend in college gave me this book because it changed his life. After reading it I have loaned it out to several people and have even bought it for a gift.
Ramsey's financial advice really changed mine and my husband's view of money. After college we had a lot of debt and decided to followed Ramsey's 7 simple baby steps, as he calls them, and have paid most of our debt off. We pay cash for everything except purchases online, which goes against Ramey's philosophy but we pay the balance in full before it's due. We even sold one of our cars so we could pay off our debt faster. Many of our friends and family thought we were crazy when we only had one car. Small "sacrifices" now can change your financial future in ways you cannot even imagine. Since following Ramsey's baby steps we have had more financial freedom than we ever thought possible. When you live within your means you are able to give and enjoy life so much more than living pay check to pay check.
Although I didn't agree with everything in the book, for instance we paid off our highest interest loans first and are paying more extra on our mortgage than my student loan because my student loan has such a small interest, I did find the book very helpful. A few things that I found encouraging were all the testimonies in his book. Money is a sensitive topic for many people that it was refreshing to read stories of how people went from being in a lot of debt to having more than they ever thought possible. This is one of my favorite financial books. Ramsey's steps to financial freedom are simple enough that anyone can do them. This is a great book for anyone who wants to learn how to get on the road to financial freedom.
Dave Ramsey's Seven Baby Steps:
1. Save $1,000 to start your emergency fund;
2. Pay off all debt using the debt snowball (everything but your mortgage);
3. Save 3-6 months of expenses in savings;
4. Invest 15% of household income into Roth IRAs and pre-tax retirement;
5. Start saving for your children's college fund;
6. Pay off home early; and
7. Build wealth and give.
Although I didn't agree with everything in the book, for instance we paid off our highest interest loans first and are paying more extra on our mortgage than my student loan because my student loan has such a small interest, I did find the book very helpful. A few things that I found encouraging were all the testimonies in his book. Money is a sensitive topic for many people that it was refreshing to read stories of how people went from being in a lot of debt to having more than they ever thought possible. This is one of my favorite financial books. Ramsey's steps to financial freedom are simple enough that anyone can do them. This is a great book for anyone who wants to learn how to get on the road to financial freedom.
Dave Ramsey's Seven Baby Steps:
1. Save $1,000 to start your emergency fund;
2. Pay off all debt using the debt snowball (everything but your mortgage);
3. Save 3-6 months of expenses in savings;
4. Invest 15% of household income into Roth IRAs and pre-tax retirement;
5. Start saving for your children's college fund;
6. Pay off home early; and
7. Build wealth and give.
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