The Total Money Makeover Summary

What would you do if you had $15,000? Perhaps you donate money to charity, or perhaps buy a new car? Maybe you could finally get that watch or purse that you’ve always wanted. The issue is that many people thought they had this much money. Unfortunately, they paid with credit and are now paying 18% extra on their purchases; in some cases, it’s even as high as 26%. That equates to paying roughly $18,000 dollars for something that only cost $15,000. Many Americans are regrettably faced with these bills today, but there is hope. There are people out there who want to get us out of debt, and back on our feet. This essay will look at two of those people, Dave Ramsey and Suze Orman. Of course, you will have to decide which will work best for you. Hopefully this will help you find your way to being debt free.

In David Bach’s book The Automatic Millionaire, he reveals to readers a plan that could help them prosper in life financially and retire early without any financial stress. In the first chapter of his book his introduces to us the McIntyres, a normal married couple looking to retire early. After talking to the couple, Bach discovers that this is no regular couple financially. He finds out that this couple owns two homes without any mortgages, have absolutely no debt and have a net worth of almost two million dollars. He then investigates why this is so. He finds that the McIntyres have some guidelines that help them. They have goals instead of budgets, they pay themselves first, watch their latte factor or spending and make their savings automatic.

The presentation that I saw during the preparation of this discussion board post is entitled, “The 7 Baby-Steps” by Dave Ramsey. In this presentation, Dave Ramsey utilizes seven baby steps that will help individuals get out of debt and start a savings account. The question that was being answered in this research report is no matter what your income level is, Dave Ramsey will utilize your earnings in slowly chipping away at your debt. Dave Ramsey is very serious about his study and has used his teaching in his own life. Once a millionaire, Dave Ramsey had lost it all and was in crippling debt. However, using his research he developed a plan that not only allowed him to get out of debt, but to also become a millionaire once again.

Herbert A. Simon, a Nobel laureate, suggested that a decision maker did not always make the best financial decision because of limited educational resources and personal inclinations. Because of this, we seek the advice of others to make better financial decisions. In David’s Chiltons The Wealthy Barber Returns, he explains why saving first, spending less, and investing your money now will help secure your financial future. In my opinion, the advice he gives are simple but well founded. After reading this book, I will put my credit/debit cards in the freezer, set up an automatic savings plan with Tangerine, and invest 5% of my pre-tax income. Even though you are probably confused as to why I’m doing this, hopefully everything will be clear

their way out of debt, wrote on his blog (www.daveramsey.com/blog) that “Getting a credit card for your teenager is an excellent way to teach him or her to be financially irresponsible". He goes on to say, "You are not teaching your 16-year-old child to spend responsibly when you give him or her a credit card any more than you are teaching gun responsibility by letting him sleep with a loaded automatic weapon with the safety off". Ramsey is a debt expert; he holds seminars around the country, has a radio show, and is even a New York Times bestselling author. He has seen the tragedy that has befallen many families in debt. However, Ramsey is having to deal with younger

Whew, where to start? The personal finance class through Dame Ramsey’s Foundations in Personal Finance textbook and video series really had a lot of useful information, and it is hard to pick out the most impactful chapters and topics. However, I think the most important stuff for me was his five foundations for financial success, which were reinforced throughout the course. I am not downplaying the other important stuff in the course, including learning about the history of credit, budgeting, consumer awareness, investing, insurance, and taxes, but I think that mastering the fundamentals is important, which is why I am choosing to highlight them in this paper.

The concepts throughout this book are simple but they test self-control and patience, which in our world is uncommon because of the “want it now” attitude. Ramsey talks about how “personal finance is 80 percent behavior and only 20 percent head knowledge” (ix). This main idea is something Ramsey talks about and references throughout the whole book. Another main idea or as Ramsey calls it a “motto” that’s on each page at the bottom is “If you live like no one else, later you can live like no one else” (5). This is the theme that he refers back to on

In his book “The Total Money Makeover,” financial guru, Dave Ramsey tells readers that they need to have an emergency fund. Ramsey suggests that everyone save a thousand dollars to put into their emergency fund.

My own financial health resonates well with the above quote from Daly and Farley, not because I’ve thought about money, but because I know nothing about it. As a young student still breaking ties from home, I have to navigate the intricate world credit, lease contracts, financial aid, and investments seemingly to no avail. In his chapter titled “Enough Debt,” Dietz alludes to this complex world that is the American financial system that I and every other American are currently dealing with. With any complex system, there are misconceptions tied to it that can provide a simpler understanding to those analyzing it. Dietz provides three of the most prevalent misconceptions, how their true function actually debunks them, and then systemic changes

First, I found a partner who I plan to spend all my days with , hoping to never be a single mother. Second, we have a bill book and a very strict budget, that help keep us in our spending limits, allotting a portion to be put back into savings. However, that may not always happen. Last, we have learned using coupons, and straying away from name brand items help save money and dramatically increase our bank account. By being so firm with our finances; we can go out to eat occasionally, take our son to different activites, and most importantly, we do not have to worry or stress about

For the first half of the year, I became engulfed in a program called Financial Peace University. For those who haven't heard of it, Dave Ramsey teaches the course via video. For nine weeks, you join a small group and go through course work and lessons regarding financial freedom in a biblical way. I took the course in Feb/March and then facilitated the course for a group through April/May. The graduation was in June. I truly loved how much I learned and am so glad I took it. It's really transformed the way I approach my money. The course has also been extremely influential in my desire to become debt-free much sooner than later. I always had an understanding (in the back of my head) that debt would always be around and I'd never be in a position

Part of the issue as displayed through this book is that families truly have no since of fear with money. If they make money then continue to spend poorly and loose their money, they are back to where they started. This is what they know and what they are comfortable with. If a wealthy person, or even middle class family looses their money, they are in a new place, a place of fear. They have never lived this way before and all of their expenses are above what they have lost. There is also no since of saving with in the working poor community. When you are living on a minim wage pay check living week to week, you are putting all you have to support your family and to put food on the table, not to put money away

Although a budget is one part of this process, we must learn to save money first. Specifically, in this book it says to set aside one-tenth of what we earn and save it (ch.5). Setting aside one-tenth of what we earn allows us to make more suitable decisions on what we do with the other nine-tenths to live our daily lives. After a certain point, the one-tenth that we save every time we earn grows more and more to be able to buy the things we want or even really need.

Second principle is teach are children young about saving. If we are willing to teach are children young about saving this will help them thru their life. One way we can teach them about saving is giving them chores to make money. The Ramsey doesn’t like the word allowance but they will use commission to teach the children the value of money. With giving children jobs that they earn money to spend save and give. This is

“The average American owns 3.5 credit cards and $15,799 in credit card debt… totaling consumer debt of $2.43 trillion in the USA alone.” (Beckner). Debt forces many people into depression and worrying lives. People struggle to discover happiness through financing goods, but struggle even more to find a way out of debt. Through consumerism, people lose their finances in department stores, car dealerships, and much more. Most of the possessions people buy with credit cards become impractical within a few months. The void they search for is never really filled. Consumerism is just a way to get the economy going, without thinking of a person’s individual finance