Total Money Makeover Financial Review

1057 WordsFeb 15, 20165 Pages
Total Money Makeover Book Review So, you’re making payments on your car, your furniture, your house and your credit cards. In other words, you’re a typical American…and you’re in trouble. You’re behind on your payments and see no earthly way to dig your way out of your miserable pit. You need Dave Ramsey. Dave Ramsey is direct, he doesn’t sugar-coat his advice. He’ll tell you what’s smart and what’s not so smart. He won’t tell you that the road out of debt is always easy. Ramsey gives a step by step approach to getting out of debt, saving and investing for the future, but he also gives you more. People in financial trouble, such as myself, need more than a method; they need hope. Ramsey offers hope by telling you from his…show more content…
Most people do not invest because of their lack of knowledge. In chapter three I learned over a dozen financial myths and statistics. Some of the truths to the myths are no brainers but millions of people fall into the ensnared traps leading them down the path of financial misery. President Gordon B. Hinckley tells us that being in debt is like becoming a slave working to pay it off. Set up a budget Your budget is where you tell your money what it will do next month. “...I assure you that virtually none of the thousands of winners I have seen did so without a written budget.” Don’t be causal. Get fired up! You can’t do it without focused intensity. All Is Safely Gathered in: Family Finances manual counsels us to simply “Use a Budget,” “Keep a record of your expenditures. Record and review monthly income and expenses. Determine how to reduce what you spend for nonessentials….discipline yourself to live within your budget plan.” Take baby steps toward financial freedom Step 1: Save $1,000 cash as a starter emergency fund. Step 2: Start the “Debt Snowball” where you begin with the small debts first, and pay off the debt except for your home. Step 3: Complete your emergency fund-It should cover three to six month of expenses, in case of lost income. Step 4: Invest 15% of your income in retirement. Step 5: Save for College. Step 6: Pay off your home mortgage, and Step 7: Build

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