Product Description

The success stories speak for themselves in this book from money maestro Dave Ramsey. Instead of promising the normal dose of quick fixes, Ramsey offers a bold, no-nonsense approach to money matters, providing not only the how-to but also a grounded and uplifting hope for getting out of debt and achieving total financial health.

Ramsey debunks the many myths of money (exposing the dangers of cash advance, rent-to-own, debt consolidation) and attacks the illusions and downright deceptions of the American dream, which encourages nothing but overspending and massive amounts of debt. "Don't even consider keeping up with the Joneses," Ramsey declares in his typically candid style. "They're broke!"

The Total Money Makeover isn't theory. It works every single time. It works because it is simple. It works because it gets to the heart of the money problems: you.

Product Details

• Amazon Sales Rank: #96 in Books
• Published on: 2007-02-06
• Released on: 2007-02-06
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 272 pages

From Publishers Weekly
Radio talk-show host and bestselling author Ramsey (Financial Peace) is less a financial analyst and more of a preacher, which explains both his popularity and the appeal of this book, which just might gain a wide audience. The bedrock of his system is simple: work hard, pay what you owe and stay out of debt. His main commandment is "Pay cash." He first exhorts the reader to take "baby steps," which are designed to build on each other: first, save $1,000 as an emergency fund; then, pay off all debts from smallest to largest; save a larger three-to-six-month emergency fund; finally, start to save for college and pay off your home mortgage. Ramsey understands the difficulty in putting these steps into action, and therefore packs his book with personal testimonials from everyday people who have used his system and have become debt free, with obvious struggles. The key is what Ramsey calls "Gazelle intensity," which is to live a financial life the way a gazelle saves itself from an attacking cheetah-"outmaneuver the enemy and run for your life." While Ramsey provides some helpful charts and graphs so readers can keep track of their efforts to follow his steps, the strength of this book is that it is a straightforward motivational tool. He provides the brutally direct truth about the hard work it takes to become free of debt, and his directness is a great part of the book's charm.
Copyright 2003 Reed Business Information, Inc.

From Booklist
"Winning at money is 80 percent behavior and 20 percent head knowledge." So states Ramsey, author and radio show host, offering a comprehensive plan to get out of debt and achieve financial fitness. Our current financial position represents the sum total of the decisions we've made to this point, he tells us, and we must take personal responsibility for our financial problems. His seven-step plan includes paying off all debts except the home mortgage at an accelerated speed, creating a financial safety net that covers three to six months' expenses, investing 15 percent of income in a retirement fund, and saving for children's college expenses. He effectively shows how regular people can rid themselves of debt and grow their wealth using current income. While many of Ramsey's concepts are not new, his simple approach and client testimonials will resonate with a broad range of library patrons. This is important information in a society buried in debt, with unprecedented numbers of people facing bankruptcy. Mary Whaley
Copyright © American Library Association. All rights reserved

Customer Reviews

The Total Money Makeover
With the exception of the Bible, Total Money Makeover has made the biggest impact on my life. If you are tired of never having enough money and being in debt, this book is for you! Easy to read and easy to understand.

Dave Ramsey Offers Financial Advice and Motivation
When it comes to money and financial issues, Dave Ramsay has become one of America's most trusted and popular voices. He is a best-selling author, host of the wildly popular radio program, The Dave Ramsay Show, television host on the new Fox Business Network, and a recognized financial guru. Ramsay has become popular by combining humor and inspirational true stories with cold, hard number crunching. The fact that Ramsay is an outspoken Christian who is just as likely to quote a Bible verse as a money maxim makes his mainstream success all the more impressive.

In The Total Money Makeover, Ramsay outlines how ordinary Americans can get rid of their debt and build wealth. Stating that personal finance is 20% head knowledge and 80% personal behavior, Ramsay believes that being debt-free and rich is not as difficult as most people believe and should be a goal of everyone.

In the first few chapters of the book, Ramsay discusses different myths surrounding money and debt. In these chapters, Ramsay addresses such myths as, "You need a credit card to build credit," "Debt is a tool to create prosperity" and "Leasing cars is what sophisticated people do."

After Ramsay is finished dealing with an assortment of such myths, he starts with the essence of his book: how people can become debt-free and build wealth. Ramsay emphatically believes the first two steps in this process for the individual or family is to stop using credit and creating a budget (and sticking to it). If one doesn't have the money to purchase the product or service outright, Ramsay thinks people should save up their pennies and dollars until they do. This step is essential to Ramsay's money makeover plan and the rest of the book is built around this and other behavior modifications.

For the budget, Ramsay recommends using an envelope system. In this system the allotted cash is placed in labeled envelopes at the beginning in each month. When the envelope is empty no more money can be spent on the item until the next month. Ramsay admits the system is simple, but he also knows it will work. Using statistics and studies to back up his claim, Ramsay explains that psychologically it is much easier to overspend when using a credit card instead of cash.

As for sticking to a written budget, Ramsay writes:

"The dreaded B word enters the picture here. You must set up a budget, a written budget, every month. This is a book about a process that will enable you to win with your money, a process that others have completed successfully, and I assure you that virtually none of the thousands of winners I have seen did so without a written budget."

After the credit cards are forsaken and a written budget is made, Ramsay outlines his proven plan to financial success which is the essence of the book:

1) Save $1,000 Cash as a Starter Emergency Fund - Ramsay is a firm believer in the rainy day fund. When life happens, we need to be ready and, without using credit cards, this is the way to catch the little things life throws at us.

2) Pay Off Debt - Ramsay recommends listing all debts (excluding the mortgage) on a paper from the least to the greatest. He then states one should make minimum payments on all of them except the smallest debt which should be attacked with reckless abandon until it is paid off. Then one should move to the next smallest debt and repeat the process. During this phase, Ramsay recommends trimming all of the excess from your budget until you are completely debt-free. He even suggests taking part-time second jobs or overtime for a period until a family is debt-free.

3) Finish the Emergency Fund - When the big stuff happens, Ramsay states, you can't depend on credit cards. Instead, build up the emergency fund to cover three to six months of expenses.

4) Invest for Retirement - After you're debt free and have an emergency fund ready to cover any unpleasant surprises, start saving for retirement. Ramsay recommends setting aside 15% of your income for retirement. He evaluates a lot of different options concerning this point and lists the pros and cons for each.

5) Pay off the Home - A t this stage, Ramsay urges his readers to start making extra payments toward their house. If someone can pay off their home early they free up a huge portion of their income that can now be spent in a variety of ways.

6) Build Wealth - When people reach this stage of building wealth, Ramsay states there are three ways to spend your money: a) have fun; 2) invest; and 3) give.

Throughout the book there are worksheets and lists to help the reader organize assets, debts and income and to crunch numbers. For those incompetent at math, these sheets can really help.

Interspersed throughout the book are inspirational true stories, mostly in the forms of letters to Dave, by those who have used his advice to get out of debt and build wealth. Most of these stories are truly incredible. Reading about families who have climbed out of more debt than me on less of an income actually did motivate me a bit. The stories also helped the book read better by putting stories about real people behind the numbers.

This is not an advanced book on stocks and investing techniques for savvy investors; rather, it is an excellent book for ordinary people struggling with debt or looking for ways to maximize their money. I think it is especially useful for those who are willfully ignorant when it comes to personal finance or those who have never thought to examine where their paycheck goes each month. Ramsay does a good job keeping his advice straightforward and explaining complex financial issues in simple terms without speaking down to his audience. He also keeps the big picture in mind with personal finance, explaining it's not about having the most toys or having more than your neighbor but helping others.

Attention my fellow salesman: This book can be a game-changer for you!
As a salesperson who has made uneven, sporadic lump-sums of money on a commission basis for years, I had the tendency to believe that I will always be able to 'outearn my stupidity' (I borrowed that phrase from Dave's Radio Show). This never happened. I heard Dave's radio show and realized that I needed a change in my thinking. This book and Dave's philosophy is largely based around the wise saying that the borrower is servant to the lender (Proverbs 22:7). This book was very helpful in helping me realize what changes are necessary. We started the Total Money Makeover with piles of debt (cars, credit cards, etc.) after listening to the CD audiobook version of this book in January 2006. We did the plan and became debt-free (except for my home) by August 2008 and was able to call into his TV show in September and yell, "We're Debt Free!". Yes, I drank the Kool-Aid and am loving it!