The Total Money Makeover: A Proven Plan for Financial Fitness

by Dave Ramsey

book data

2,185 ratings, 4.37 average rating, 788 reviews (more data...)

rating	frequency	%
5		54%
4		31%
3		11%
2		2%
1		0%

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published

February 6th 2007 (first published 2003) by Nelson Books

binding

Hardcover, 272 pages

isbn

0785289089 (isbn13: 9780785289081)

description

The success stories speak for themselves in this book from money maestro Dave Ramsey. Instead of promising the normal dose of quick fixes, Ramsey offe

...more

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09/07/07

Laura rated it:

recommends it for: Everyone who's ever been in debt!

Buy it, live it! This book changed my life in a dramatic way. And, no, this isn't a paid advertisement! In fact, I believe in Dave's work so strongly that--if you live in the U.S. and have a serious desire to make a positive change in the way you handle money and look at debt--I will have a copy of this book sent to you. (Up to twelve people a year.) Just send me a message!

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01/25/08

Melissa rated it:

Read in January, 2007

recommends it for: Everyone

I read Financial Peace years ago. We tried to live the plan, but looking back we could have done a lot better. The Total Money Makeover takes the same plan and breaks it down into more detailed babysteps. This REALLY works! We've had our $1000 emergency saving account for years now and have hardly had to dip into it because we really think through what an emergency is. Most of the time we have been able to wait a few weeks until the "extra paycheck," tax return or a bonus comes th...more

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09/16/07

Cori rated it:

Read in August, 2007

recommends it for: people who don't have their finances in order

From my blog:

My friend Amanda was nice enough to buy me Dave Ramsey's book. It must mean it's pretty good if someone else is willing to shell out $25.00 to buy you a book on money management! This book was really repetitive, but I thought it was a fantastic planning tool for those of us who aren't making a gobzillion dollars doing...whatever Paris Hilton does, for example. I have a small bit of debt -- mostly due to 2007: The Year of Dental Nightmares -- and literally no savings. I h...more From my blog:

My friend Amanda was nice enough to buy me Dave Ramsey's book. It must mean it's pretty good if someone else is willing to shell out $25.00 to buy you a book on money management! This book was really repetitive, but I thought it was a fantastic planning tool for those of us who aren't making a gobzillion dollars doing...whatever Paris Hilton does, for example. I have a small bit of debt -- mostly due to 2007: The Year of Dental Nightmares -- and literally no savings. I had quite a bit saved up for a while, but my bills started to eat into my nice little nest egg and the next thing I knew it was gone. Anyway, I think Ramsey has some great ideas for getting back on the right track with your money.

One thing he does say, over and over again, is that it is not hard to follow his plan, but it's very difficult to actually pull it off. It's not complicated, but it takes determination and focus if you want to get out of debt and start controlling your money, instead of the other way around. He sets out baby steps for a Total Money Makeover, beginning with scrimping and saving until you have a $1,000 emergency fund (Ramsey notes that things like Christmas are not emergencies: "Christmas is not an emergency; it does not sneak up on you. Christmas is always in December, they don't move it, and therefore it's not an emergency." Heh.). Baby step two is to pay off all your debts using a Debt Snowball. Basically you list your debts from smallest to largest, and pay the minimum payments on all but the smallest, to which you devote as much money as you can possibly can. Then, instead of just moving on to the next debt when the first is paid off, you roll over the amount you were paying for the first debt in addition to the minimum payment for the second debt. And so on. It snowballs so that you are paying debts off faster. Seems easy, not sure how the life application will be. The third baby step is to increase the emergency fund to where it could sustain you for three to six months. Baby step four is to invest, which I do a little of right now, and probably won't stop, even though he recommends it. It's too much of a hassle when I'm pretty sure I can climb out of my mini-hole relatively quickly. The next two steps are to save for college (done and done, thank you Grandma), and to pay off the mortgage (which I don't have). But I'm sure they are helpful for parents who own a home.

Seriously, though. The people in this book really did some drastic things to get out of debt (they sold cars, houses, first borns, etc.). I'm not nearly in that kind of trouble, but I think using a watered-down version of his money makeover, I can get my credit card and dental bills paid off a lot sooner than I would have without having read this book. I want to be completely credit card free by the new year, and to the point where I am saving some money AND to where I am able to pay for my Scotland trip with cash. I am also going to attempt to budget October, so we'll see how that goes. It terrifies me to think how much I spend eating out. Yikes.

Ramsey is a Christian, but I wouldn't expect anyone who isn't to be turned off by anything he has to say. Basically he quotes a few Proverbs and the people in their testimonies thank God. That's about it. I think the book is totally reasonable if you're not a Christian -- it's not preachy at all.

I also checked out Ramsey's website, and was able to answer a few of my questions that weren't answered in the book, such as whether or not I should continue tithing while trying to get rid of the debt (answer: although he won't beat you up if you stop, he highly encourages tithing -- if you can't live on 90%, you can't live on 100%). So that was cool, and I think I'll find more info on there about other things should they come up. (less)

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03/19/08

Jennifer rated it:

bookshelves: finance

Read in September, 2005

recommended to Jennifer by: A co-worker and good friend
recommends it for: Everyone. The principles apply to the general population.

Let me preface this by saying that I'm a HUGE fan of Dave Ramsey, so of course I'm a bit biased. I listen to his talk radio show every day without fail, and I'm an active member of his subscription website called MyTMMO (http://www.mytotalmoneymakeover.com).

My husband and I began working the baby steps in September 2005. It took us 22 long months of discipline and sacrifice to become completely debt-free. We don't own a home yet, so yes, we really are living the debt-free life. W...more Let me preface this by saying that I'm a HUGE fan of Dave Ramsey, so of course I'm a bit biased. I listen to his talk radio show every day without fail, and I'm an active member of his subscription website called MyTMMO (http://www.mytotalmoneymakeover.com).

My husband and I began working the baby steps in September 2005. It took us 22 long months of discipline and sacrifice to become completely debt-free. We don't own a home yet, so yes, we really are living the debt-free life. We paid off more than $36,000 and our income jumped up dramatically during that period of time using Ramsey's baby steps. The last debt was paid off on June 15, 2007 (it was my student loan). I can't even describe how good that felt. We called the talk radio show on July 13, 2007 to proclaim our debt freedom to all of America. Dave does something he calls "Debt Free Fridays" where callers who've paid off all their debts can call in and scream. The show has become a bit famous for it.

The principles in Ramsey's book really are simple. And the people who listen to his radio show or watch his TV show on FBN are incredibly loyal to him. What inspires such loyalty? Well, I'd say it's the bluntness, directness, and authenticity of Dave's personality. His slight Tennessee drawl is an effective "I'm just a good ol' boy" tool. He says what he means and means what he says.

Yes, Dave is a Christian, and he certainly won't hide it. He isn't "preachy," as someone else said, but if someone asks a question about tithing, he's not going to shy away from it. There are mentions in the book about his Christian roots, but that's just part of his character. And if you're curious about the "baby steps," the name comes from the movie What About Bob? Ramsey often declares his financial principles as God's and Grandma's ways of dealing with money. And he's right. Generations before us really did use these principles. We've just forgotten them as credit cards and loans have become the popular way to pay for things.

When Dave says that normal is broke, he isn't kidding. I'm happy to be called "weird."(less)

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02/20/08

Tonya Aiossa rated it:

Read in June, 2007

recommended to Tonya by: Mom (Bonnie)
recommends it for: People in debt.

I probably should have given this book more than three stars, because it's a good start to figuring out a critical piece of the financial puzzle; getting out of debt. This book is debt-centric, so, if you're in debt, then yes, you really should read this book.

However, while focusing on getting out of debt is a crucially important step of freeing up your income (because if the money you make every month is spent every month, you're not financially fit), there are many aspects of your...more

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02/26/08

Tim rated it:

Read in March, 2008

recommends it for: people in debt (hi Meagan)

This is a pretty decent plan for getting out of debt and starting to invest. In the time-honored tradition of such self-help books as How To Win Friends and Influence People, Ramsey uses personal stories from other people to drive his points home.

But in essence, the plan is like this:
1) stop buying things, sell off everything you don't need, stop using credit cards, etc.
2) save up a $1000 emergency fund
3) throw all possible cash toward paying off your smallest d...more

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01/14/08

Angela rated it:

(review of isbn 0785263268)

This guy's claim is basically that the key to accumulating a lot of money is to (1) become debt free, (2) save a sizeable nest egg (3-10k)for the big emergencies that typically send people into debt in the first place, and (3) put the rest of your savings in mutual funds. He's particularly insistent that you suck it up and drive old cars that you've paid cash for rather than make payments on a new car.
Good advice, but it would help if he offered more insights on how to follow it, especi...more

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06/01/07

Sara rated it:

bookshelves: finance

Read in March, 2007

recommends it for: Everyone!

I love Dave Ramsey. We have been doing the Total Money Makeover since Jan 1 of this year (we started after reading Dave's book "Financial Peace") and we are already seeing plenty of success with our baby steps. We pay for everything in cash now and if we don't have the cash, we don't buy it. We've got an emergency fund in place and have used it when things came up - auto repairs, etc. And best of all, we are in debt reduction mode - we had cut up all the credit cards Jan 1 and now we o...more

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10/07/07

Shane rated it:

bookshelves: personal-finances

Read in November, 2007

recommends it for: anyone wanting to get out of debt and have financial freedom from that bondage

This book is a great step by step plan to help you get control of your finances by walking you through the 7 baby steps.
1. Small Emergency Fund of $1000
2. Pay off all debt except house with debt snowball
3. Fully Fund Emergency Fund to 3-6x of living expenses
4. Invest 15% of income for retirement
5. Fund kids college fund
6. Pay off mortgage
7. Have fun, give and invest

Definitely a must read and the companion website www.mytotalmoneymakeover.com ...more

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02/20/08

Jessica rated it:

bookshelves: personal-finance

Read in March, 2006

recommends it for: Everyone!!

Reading this book, and implementing Dave's financial strategy, has changed our life, and made it so much less stressful. We were able to do what we thought would be impossible, and pay off all our debt other than our home, plus, we are very close to completing baby step 3 (3-6 mths living expenses in savings). A couple years ago, I would have never thought it would be possible--and we even added another family member since then! So thankful we read this book!

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09/25/07

Evige rated it:

Read in April, 2007

recommends it for: everyone!!

I love Dave Ramsey. I first got stuck on his radio show. His listeners call in about financial questions and he tells it like it is with little to no tact, I think that's why I like it so much. Listening to eveyone's financial problems makes me feel so much better about myself. Search your am station for Dave Ramsey, I know you will love him and learn very uesfull info. The book is awesome with a gameplan you can live by.

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12/07/07

Diana rated it:

Read in January, 2007

recommends it for: anyone in debt

This book is great and I hope to be able to find that "gazelle intensity" to get our butts out of debt in the next 18 months!

Like this review? yes (2 people liked it)

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11/08/08

Morgan added it

Inspiring- live now like no one else, so later you can live like no one else!

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01/25/08

Jay Gowen rated it:

(review of isbn 0785263268)

Read in January, 2007

This book, and Dave Ramsey's philosophy changed my family's financial life. A year ago my wife found his radio show and we both read the book. Since then we have cut up all our credit cards, paid off our cars, and are three years away from paying off the last of our debt (my USC loans). In 15 years (or less, God willing) we will have built 6-months worth of savings and paid off the house. And during the whole process, we have never felt so confident in our ability to provide for our kids an...more

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03/01/08

Angineeki rated it:

Read in March, 2008

This is the most practical personal finance advice I've ever received -- and I've read Millionaire Next Door and am a big fan of Suze Orman. Those "top 10 ways to financial freedom" lists in which a key step is "giving up your daily latte," are cute. But they don't compare to Ramsey's well-thought-out, systematic approach to getting from under debt. Ramsey moves very quickly from the reasons why you can't get ahead (having a lackadaisical attitude when it comes to debt) into ...more

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02/18/08

Bradi rated it:

bookshelves: currently-reading

Read in February, 2008

recommended to Bradi by: Jasper Engines and Transmissions
recommends it for: everyone!

Nope; I'm not willing to sell/swap this book as it's become a textbook/workbook for our family. I'm on page 127 of this 223 page book and am loving learning from Dave Ramsey. Lest you think I'm some weirdo constantly on the prowl for the next "Get- Rich- Quick" scheme, I'll have you know: This is the first "money book" I've read (I don't even remember reading a money book in ECON.) and I'm thoroughly enjoying it. The book seems to have entered Ben's and my life at a very opp...more

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02/02/09

Nathan Tate added it

Read in January, 2006

Dave Ramsey changed my financial life. You MUST read this one. Easier to read than "Financial Peace", but they are both good reads.

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02/23/08

Nicole rated it:

bookshelves: currently-reading

Read in February, 2008

recommended to Nicole by: Emilka Kielanska
recommends it for: Anyone, and everyone! The younger the better, but its better to be late then never.

This book unlike most books on finances, and etc actually has specific steps to follow in order to get out of debt and create wealth. There are forms that help you with the process, and all through out there are stories from others that have followed this system. It will amaze you what others have been able to do in the short amount of time that they have, and the nice thing is that you can do it too.....just follow the steps. Its not complicated at all, we just tend to make things harder then w...more

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09/24/07

Paula rated it:

(review of isbn 0785263268)

Read in January, 2004

recommends it for: Everyone

I really enjoy Dave Ramsey and his process. I have never been a big spender but I always thought house and car payments would be forever. Well, he made me realize that I don't have to have payments!! We have 2 paid for new cars (sorry, I will always have a new car, but I paid cash) and in about 4 years we will have our house paid off and be debt free!!
Sometimes someone has to light a fire under your ass to get you going and you never thought you could do it but you can!!

IM A...more

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03/16/09

Janet rated it:

Read in March, 2009

First of all, Dave Ramsey is a Christian entertainer. Like Dr. Laura, Dave springboards his books from his talk radio shows and life experiences. His advice is simple and folks starting early in life do well to heed his advice on debt and that is….no debt. It all gets a bit murky for those of us who have learned essential money truths later in life, yet there are some embraceable suggestions to be found within the pages of both Ramsey’s “Peace” and “Makeover.” It is the advice my Gr...more First of all, Dave Ramsey is a Christian entertainer. Like Dr. Laura, Dave springboards his books from his talk radio shows and life experiences. His advice is simple and folks starting early in life do well to heed his advice on debt and that is….no debt. It all gets a bit murky for those of us who have learned essential money truths later in life, yet there are some embraceable suggestions to be found within the pages of both Ramsey’s “Peace” and “Makeover.” It is the advice my Grandparents would have given me.

Drop the popular cultural feeling of entitlement. None of us are entitled to more than God gives us each day via hard work and other non-monetary avenues. Live within your means. Do without. Save for tomorrow. Store up cash for rainy days (Dave recommends 1K to start with). Sacrifice.

Don’t go into debt for any reason (not for cars, not for college) other than your mortgage (this is especially challenging given the high cost of health care, career education, unexpected disasters, big family expenses, and current economic climate). Buy a reasonable house that you can afford, key words that lie at the heart of America’s housing crisis “house you can afford” (and don’t trust the realtor or the loan officer to be able to advise you honestly on this point) on a 15 year loan.

Never buy anything at full price. Always bargain. Shop estate sales, thrift stores, craigslist, garage sales and take the time to clip coupons, compare grocery ads, and look for bargains. Buy used v/s new. Eat at home. Ride the bus. Forgo the Starbucks (unless you buy it with a coupon, on sale, within your grocery budget).

Pay off the smallest debts first and then use the extra money to tackle bigger loans/debts until they are all paid off. Consider selling everything you own and working a second job (it is not suggested that mothers work outside the home) to make the pay off happen faster.

The Ramsey books I read were written prior to seeing gas prices hit $4 per gallon, prior to the job outsourcing impact, prior to corporate collapses, bank bailouts, and housing market plummets. Yet, the common sense advice of Dave Ramsey, and that of our Grandparents, to live differently may inspire positive change toward self sufficiency for all America.
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