Wellness
Wealth

Total Money Makeover Review

The The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness

The Total Money Makeover Review

If you are:

  1. Having money problems
  2. Don’t know how to manage your money
  3. All of the above

Then there is only one book I would recommend “The Total Money Makeover” by Dave Ramsey.

My review of the book will include the following:

  1. Pros of the book
  2. Cons of the book
  3. My overall assessment of the book

So let’s begin my review by giving you the pros of the book.

Pros of the Book

There are so many great aspects to the book that it’s almost impossible to mention them all here in this very brief book review. However, here are some highlights of what I believe are the best components of the book.

  • The book is easy to read
  • It talks about the mental and psychological aspects of managing your money
  • It provides a simple and easy step-by-step plan
  • Provides a game plan for completely making over your money habits
  • The book tells you how to get out of debt – one step at a time
  • Inspirational testimonials from real people who religiously followed the program
  • The book tells you how to stay “motivated” so you don’t “give up” on the plan
  • It helps “everyone” no matter what your current financial situation is
  • A proven plan for financial success
  • And finally, I firmly believe that the book is the “bible of money management”

As indicated, the book has so many positive aspects to it, they are too numerous to mention hear. However, the primary component of the book “The Seven Baby Steps” is the foundation of the book, and what makes the whole plan work. These seven baby steps tells you how to get out of debt the same way you learned to walk—one step at a time.

Here is a brief description of each baby step:

Baby Step 1

Save $1000 as a starter emergency fund

Baby Step 2

Pay off all debt (except your mortgage) using the debt snowball

Baby Step 3

Finish the emergency fund with 3 to 6 months of expenses in savings

Baby Step 4

Invest 15% of household income into Roth IRAs and tax-advantaged retirement accounts

Baby Step 5

Save for College Funding

Baby Step 6

Pay off your home mortgage early

Baby Step 7

Build wealth and give

If you would like a more detailed description of each baby step, then go directly to Dave Ramsey’s website at the following web link: https://www.daveramsey.com/new/baby-steps/

Cons of the Book

In baby steps 4 (start funding retirement) and baby step 7 (building wealth), Dave talks about using mutual funds as the vehicle to fund your retirement and build wealth – I could not disagree more! In my own personal opinion mutual funds were good investment vehicles back in the 1980’s, however, I believe they are now dinosaurs, in today’s modern investment world. I believe that there are far superior investment options available to generate income and build wealth in today’s modern investment world. I talk about these alternative investment options in chapter 12 (step 12: Financial Wellness) of my book “12 Simple Steps to Optimal Health and Total Wellness”.

And probably the only other part of the book that I may disagree with is his stance on the use of credit cards. In the book, Dave recommends that you use cash and debit cards, instead of credit cards. I am not going to go over the pros and cons of using debit cards versus credit cards – that’s for a whole other article. However, what I will say is that if you have the discipline (like myself) to pay the statement balance (or balance in full) every month, then the advantages to using credit cards far outweigh the advantages of using a debit card. The biggest advantage to using credit cards of course are the cash back and rewards. I have personally received 100’s of dollars in cash back rewards from both my American Express and Discover cards. However, I also have the discipline to pay the balance in full every month. But unfortunately for many people, they just do not have the discipline and/or fiscal restraint to use the credit cards responsibly.

Overall Assessment of the Book

I will begin my overall assessment of the book by telling you what this book is NOT about:

  • This is NOT a get rich quick scheme
  • This book will NOT provide you a quick fix to your financial problems
  • It is NOT some complicated, or convoluted book where you may have some egotistical author who tries to impress you with their supposedly superior academia credentials and/or prowess
  • For the most part, this book does NOT give you information that’s never been said or read about before in other money and finance books
  • And finally, this book is NOT just about math, statistics, facts, and figures

OK, now you know what this book is NOT about… which now leads us to the question “what exactly is this book about then”?

Well, the first thing you will learn is that this book is about life. As Dave states throughout the book, personal finance is only 20 percent head knowledge (math, statistics, facts, and figures); while conversely the other 80 percent – the bulk of the issue – is all about changing your poor habits and personal behavior.

Another very significant point you will learn after reading this book is that the total money makeover method is not easy. This is not some get rich quick scheme, as indicated earlier. It’s going to require hard work, dedication, and ultimately great sacrifice on your part. There is a price that must be paid. You will soon learn after reading this book that there are no shortcuts in life. They then go on to talk about how you must be willing to sacrifice the present for the sake of the future.

However, if you are willing to pay the price, and dedicate yourself to the plan that is laid out in the book, there will be a great reward for you at the end.

And on that note, I will end this book review with a direct quote from the book. This quote pretty much sums up what this book is all about, and is the motto of the book:

“The Total Money Makeover mentality is to live like no one else so later we can live like no one else.”

Well this concludes my review of “The Total Money Makeover”. As indicated, if you’re having money problems, and/or don’t know how to manage your money, then I highly recommend that you purchase this book. Once again you can buy the book at the following product link:

The The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness