Tuesday, January 17, 2012
The Total Money Makeover by Dave Ramsey
So some of you may be sick of me talking about this book already :p I know some of my family and friends are sick of hearing about it, but dammit! I'm more excited about this book than I've been about anything in a long time. And I can't thank my dear friend, Carl enough for telling me about it. This is the year that I'm giving my debt the finger. I have three main goals this year: Get my LPC (can almost check this one off the list), get rid of my debt (or start to), and buy a house.
I always looked at my debt as something I would just always have. It's horrible. I HATE debt. I've had it since I was 18 and signed up for my first stupid ass credit card. But after reading The Total Money Makeover, I have not just hope, but assurance that I don't have to have debt forever and I can live comfortably on an income that I never thought would allow me to.
The thing about Ramsey's book is, it's all common sense. Things that you slap yourself in the head for not doing already. It's also highly motivational featuring stories from other people who have gone through his plan. The plan is really simple. The basics of it are set aside a $1000 emergency fund, budget yourself using a written system with envelopes involved. Pay off your debt from smallest to largest. Put aside a 6 month emergency fund. Pay off your house. Invest. Spend. Give.
Of course he has a precise method in which to do all of this that makes a ton of sense. You read what I wrote and probably think "if only it were that easy." The thing is...it is. I've only been doing this for a week now and see big changes already. First of all, my credit card is cut up. I've budgeted my money I can spend on food and gas and other things so I am more aware of what I'm doing.
The book is really well written too. There was never a time where I thought "what the hell is this guy talking about." I'm not the brightest when it comes to finance, but I understood AND enjoyed this book a lot! One thing to note is that Dave Ramsey is a Christian and he's a preacher. I know a lot of people (like myself) are wary about books written by preachers, but he DOESN'T preach in this book! There are some bible quotes throughout, but I never thought that I was reading a Christian book or having religion shoved down my throat.
I posted my financial goals a week ago and plan on continuing to post once a month about where my finances stand now....Hopefully if you're not convinced by my review that this can work, the numbers I post can show you :) And trust me...I don't make all that much money. But I can still see how this can work! Needless to say, I highly recommend this one!