About a year ago, I read The Total Money Makeover by Dave Ramsey. This book has been extremely helpful for myself and many others. I am all about knowledge sharing, so I felt it was only right to share this book with our readers.
Dave Ramsey is not one of them schemed out financial experts that you hear about. His methods to debt reduction and wealth building are very simple and effective. One of my boys hipped me to Ramsey’s book and told me that he and his wife were $75K in debt collectively and they paid it off within 2.5 years by using the methods described in the book.
To be honest, I was initially skeptical but I was willing to read the book and give it a shot. I had nothing to lose and everything to gain. Within 5 minutes of reading the book, I was hooked and eager to learn more about Dave Ramsey's philosophies and methods.
The Total Money Makeover covers an array of personal finance topics, from the myths about debt to establishing an emergency fund. One of my favorite things that’s covered in the book is the Debt Snowball, which is a debt reduction strategy that Dave Ramsey swears by and one of the 7 Baby Steps (I'm currently on baby step #2) to wealth building.
This particular strategy involves making minimum payments on all of your bills except the one with the smallest balance, in which you would increase your monthly payment amount by $100 - $250 for that bill until the debt is paid off. Once that debt is eliminated, then you would attack the next lowest balance by using the same method and repeat the process until you are DEBT FREE.
The book also includes various testimonies from people, who have utilized Dave Ramsey’s methods that are described in The Total Money Makeover. I truly enjoy watching the testimonies and hearing people’s stories about how they reduced their debt. It gives me the confidence and faith that I am able to do the same and ultimately have financial freedom, so that I can live the life that I want for my family and myself.
In addition to the book, Dave Ramsey and his team offers the Financial Peace University (FPU), which is a 9 week course that is held either online or at various places in most major US cities. Some of the lessons that are covered in FPU includes budgeting methods, debt reduction strategies, and insight to retirement planning. Click this link to see where FPU is offered in your city.
Check out these video clips for a few of my favorite testimonials from Dave Ramsey's YouTube page.