Wednesday, February 25, 2009

Book Review-Dave Ramsey-The Total Money Makeover

Dave Ramsey is a Christian man from Tennessee who has written several books on personal finance. He also has a radio talk show and a television show where he discusses personal finance. He has a system, that is a variation of many systems that I have read about before, that tells you how to become debt free. His method is pretty cut and dry, straightforward, and easy to follow. The most impressive thing to note s that it has worked for thousands of people. There are no easy ways, tricks, or schemes in the system he proposes. It comes down to hard work and determination. The following is the 7 baby steps plan he has put together!
  1. Save a $1000 emergency fund
  2. Debt Snowball-- write out all of your debt and start paying off the smallest debt owed first--continue on to the next lowest bill, repeat until all of your debt is paid off
  3. Now Finish the emergency fund- save from 3 to 6 months of expenses
  4. Invest 15% of your income for wealth building
  5. Save for college for kids--Use ESA'S or 529's
  6. Pay off mortgage!
  7. Build Wealth and give some money away

to be continued

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