The Total Money Makeover - A Proven Plan For Financial Fitness by Dave Ramsey

Dave Ramsey calls his book "The Total Money Makeover" "A Proven Plan for financial Fitness" and that's exactly what it is. The book is simple, straightforward, and full of sound financial advice accompanied with motivating stories of people who followed Ramsey's advice and achieved financial success. Some have achieved greatness, while others are still on their way, but all are in much better shape than they had been, and all give credit to Ramsey and his common sense approach to getting out of debt and then building wealth.

This book is about getting out of debt first, and then building wealth through basic investments. That's it. I told you it was simple and straightforward. Right in the introduction, Ramsey says the book is not sophisticated or complicated. He also says it's not something that has never been said. Very true, you can find similar advice elsewhere. But I do think Ramsey does a very good job at providing the advice in an interesting and motivating manner.

The beginning of the book outlines the problem with debt and money than many people face. Ramsey encourages you to take stock of your personal situation and don't be in denial. He then discusses many debt and money myths that hold people back from achieving what he calls financial fitness. Besides these myths, he outlines two more hurdles that people need to overcome to reach their financial goals; you must get over ignorance and quit trying to keep up with the Joneses. He then tackles the ignorance problem with his plan of "baby steps."

First, he wants you to do everything you can to build up a $1,000 emergency fund as quick as you can. Then you will start on what he calls the debt snowball. This same method is found in other plans from other resources, and basically calls for a systematic way of paying off your smallest debts and rolling over the payments into the next debt until they are all paid off. Ramsey does a good job of explaining the plan, and provides a lot of examples for motivation. Once out of debt, he provides solid advice on building wealth, paying off your last debt, the mortgage, and then to live like no one else because you are financially able to.
Again, there is nothing earth shattering in this book. It is simple, solid advice. But guess what? Basics work! Simple works! Now remember, and Ramsey says this in the book too, it's simple but not easy. The concepts are simple to understand, but not easy to implement if you are in the habit of overspending and using debt for everything. It takes discipline.

Personally, I am not anti-debt as Ramsey is. I understand his position, and I agree with him on most of his points. However, I am one of those that does use the air miles I accumulate with my credit cards, and I always pay off the entire balance each and every month. I've also purchased items with 12 or 18 months zero interest and ensured that I paid them off before the period ended and the company zapped me with all that back interest. I say this, because I do believe you can implement Ramsey's principles and still not be totally anti-credit as he is. However, with the alarming statistics that he provides, for many people the best course of action would be to follow this book to the letter, 100%. In fact, some of the side bars of "Dum Math & Stupid Tax" examples were very eye opening, as well as little things to make you go "hmmmm."

Bottom line, if you are in debt and don't know where to turn because you pay checks just don't seem to be covering your bills, this book has some advice to help you get back on track and become financial fit. Read this book, and more importantly, follow its advice.