The Wealthy Barber Chapter Summary

The author of this book, Dave Ramsey, is a man who has gone through many struggles in his life. Throughout his book he talks about the times when he went bankrupt and couldn’t provide for his family. Dave Ramsey sat down and wrote a plan on how to be smart with your money. Ramsey says, “The principles are not mine. I stole them all from God and your grandmother” (xi). He talks about how these are not new ideas and that these are not theories because they are proven to work every single time. The central concept of this book is to help people succeed in life with money but also their personal relationships. Ramsey wants to give people hope and happiness by playing a small role in their financial freedom.

They allocate their time, energy, and money efficiently, in ways conducive to building wealth. Millionaires budget and also plan their investments. They begin earning and investing early in life. The authors note that “there is an inverse relationship between the time spent purchasing luxury items such as cars and clothes and the time spent planning one’s financial future”. In other words, the more time someone spends buying things

Nothing can prepare a family for an unexpected death. The toll it takes has devastating emotional consequences. To make matters worse, there are practical problems that often arise. The deceased may have incurred large medical bills before they died. The death requires a burial which can cost the surviving family members more than expected. Also, if the deceased provided income for the family, the struggle to keep their lives going can be almost impossible. When the death was caused by an act of negligence, there are terms for the surviving family members to bring forward a wrongful death claim.

According to Document A it says that if you get married at age of twenty-three and you save fifteen dollars a month and anyone could do that or try to save up 15 dollars a month then he keeps saving for over twenty years and at the end of that he would have four hundred dollars a month. He would be rich. Anyone could save 15 dollars if they would try hard and not spend the money they are saving at the end they will have a very good amount of cash every month and it would be worth all the saving.

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.

In the article, Advisors Involved in Financial Planning, authors Mendlowitz and Kess talks about how financial advisors are people oriented and want what is best for their clients. The authors prove that the difficulty of the financial advising processes is typically overlooked by others by stating, “The different kinds of financial advisors and their role in the overall financial planning process is difficult” (Pg.66). Many might think that financial advisors have an easy job, but there is more to it than telling people to save small amounts of money here and there. Advisors must go through several specific steps to figure out the exact amounts their clients must save. The author of this article talks about situations that a financial advisor might go through as well as how the advisor should

The main point of this video is the magnitude of participating in estate planning. One important aspect is making a will. The You Tube video I chose was from a law firm called, “Argon Law”. The speaker emphasized the advantages and disadvantages of making a will, so your wishes for the distribution of your assets at death/tragedy will be meet. “This includes Assets held by companies, assets held in trusts, and proceeds of life insurance are a few of the processes you must think about. One important statement he made. The law allows for your spouse, child or dependent to challenge your will after you die.”(Gallagher, 2014).

Sometimes the state may limit or prohibit an inheritance. This would be done for public policy reasons. For instance, two or more potential heirs die at the same time (perhaps in the same event of accident). The difficulty of providing which of the two potential heirs died first, second, third, etc. will often result in the state’s adoption of the Uniform Simultaneous Death Act. Under this Act, if one potential heir does not clearly survive the other potential hear by a certain amount of time, both will be treated as having predeceased the other. This results in equal shares of their jointly owned property being distributed to the heirs of both potential heirs. In addition, public policy could limit or prohibit inheritance of a person who was involved in an intentionally killing that left them benefitting from the act, i.e. if the killer would benefit from the victim’s death. In this situation the potential heir or “killer” would be treated as predeceased. Public policy can also block inheritance by an illegal alien unless there is a treaty in place between the United States and the appropriate foreign country that would allow the

We usually think of a person’s will as a financial document used to make sure his or her estate is distributed according to his or her wishes. The will can also be used as a constructive tool or a destructive weapon to reach other goals, which often do not involve money. Eddy M. Elmer, in his article, “The Psychological Motives of the Last Will and Testament” describes the use of wills. Used positively, a will can be used to foster a sense of continuity for the survivors and to preserve family relationships. Used negatively, through imposed conditions, disinheritance, unequal treatment, and attaching “strings,” a will can be used to control from the grave and continue dysfunction in a family.

I do have a will. It was kind of awkward asking my brother about it being my children's guardian. After we started talking, he said he was going to ask me the same thing. That was a relief. It is nice to finally have something on paper just in case. It's hard to talk about, but a fact that most adults put off.

Making a will is important because it keeps a person financially responsible of what happens to their estate once they pass away. Death is a part of the human experience. There is no way any person can escape death. Instead of staying in a fearful place about creating a will, it is best to work through the financial preparations ahead of time. There's nothing worse than leaving loads of debt for a grieving family to take care of. It's not only inconsiderate, but it is also

A living will also allows a person to state with particularity the forms of treatment are wanted and not wanted. For example, if a one does not want artificial life support, then sign the living will stating that desire. It is also important to discuss your beliefs and wishes with you family, spouse and other people whose opinions you respect, such as clergy,

Drafting a will or trust to distribute your wealth is a crucial first step in creating an estate plan. Without one, your estate will be divided in probate, which can be a long and costly process. However, not all assets must be distributed through a will. Specifically, a retirement account affords the retiree the ability to name account beneficiaries who will receive immediate access to the accounts upon the retiree’s passing. If a beneficiary is not named to these accounts, they will land in probate.

When preparing a will, it may seem like things are as simple as writing down how you want to split your assets once you die. Wills, though, are not that simple. There are actually a variety of different types of wills. Although a will prepared with the assistance of an attorney works best for many people, some people choose to prepare a will on their own or in a less conventional way. When that is the case, it is important to know if the will has legal value in the state where the will was prepared or where it will be carried out. If considering a less-traditional will, consider the legality of the following three types of wills.

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.