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What to Expect From “The Total Money Make-Over” by Dave Ramsey

It’s always difficult to choose what book to read and end up wasting time on some crap. Let’s say if you find some good book and not sure if you should read or not, then better look for the summaries. Let’s read the book “The Total Money Make-Over” in 10 minutes.

“We buy things we don’t need with money, we don’t have to impress people we don’t like”.

–  Dave Ramsey.

This is a topic which is too much of concern for most of the people now a days. People look for ways to earn much more and save much more all the time. Not everyone can manage all these tricks and tips on their own. A mentor can help but the effort one will have to make, depends on the person himself. There are a lot of sources that claim to teach you how to become rich in short period of time but not all of them can help all the time.

Every person lives with his own perks in life. Not all of them need to start from scratch but sooner or later all of them stands under same condition and need same mentor-ship and training.

Inside the Book

If you are really devoted to your aims and dreams then the book “The Total Money Make-Over” is the real solution for you. It shows you ways and helps you through the hurdles with Ramsey’s experience and tips. It’s the best personal finance book of all time. It was published in 2003 and sold over 5 million copes till now.

The book consists of 7 steps through. Every step help you leap farther and release on of your hurdle. Steps are listed below;

  1. Keep $1000 for your emergency funds.
  2. Take the leap and start paying your debts, starting with smallest.
  3. Emergency fund should be taken to be saved for minimum 3 months.
  4. Investment options and tips.
  5. How to pay your kid’s college tuition.
  6. How to relief yourself from your biggest mortgage.
  7. How, why and where to give your extra money for good.

 

Step 1: Keep $1000 for your Emergency Funds

Let’s say you find yourself stuck in a situation where you need instant money and you have spent all to your new idea. What will you do? This make sense right? So to tackle this situation, Ramsey proposed the idea of saving emergency fund for the first step.

According to Money Magazine, 78% people of this world experience a bad event once in every 10 years of their life. Nothing to be worried if you are saving.

Step 2: Take the leap and start paying your debts, starting with smallest

Ramsey calls this step the snowball step. Just like when you roll down a snowball from above, it grows bigger with its move. Pay your debts starting from the smallest, even if it’s just $10 of worth. List all your debts by ordering them from small to biggest. With the passing time, all your debts will be paid off leaving the biggest mortgage behind.

Step3: Emergency fund should be taken to be saved for minimum 3 months

Make sure you save your emergency fund that it can help you survive at least 3 months or more. Keeping in mind that if you lose your job or face a bog loss in your business, you would have that much saving for you that you can survive until you get another job or keep your business back on track.

The more you will read the book, the more it will help you live your big dream.

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