Monday, October 4, 2010

Dave Ramsey's The Total Money Makeover

Even though we aren't in debt, Tyler and I read this book and thought it was AWESOME. I don't know if any of you listen to the Dave Ramsey Show on talk radio or whatever, but we really like his approach. We got a great plan of what we want to do with our money for the next couple years--his mantra is if you will live like no one else, later you can live like no one else! how true is that!
He takes people through 7 Baby Steps:
1. Save $1000 cash as a starter emergency fund
2. Debt snowball
3. Finish emergency fund ($5000-10,000)
4. Invest 15 percent of your income in retirement
5. Save for college
6.Pay off your home mortgage
7. Build wealth

The part that we took away was on investing in retirement. He gave a really easy breakdown of how to easily invest for retirement:
"Invest 15 percent of before-tax gross income annually toward retirement...when calculating your 15 percent, don't include company matching...invest 25% in growth and income funds, 25% in growth funds, 25% in International funds, 25% Aggressive growth funds."
"Always start where you have a match. When your company will give you free money, take should next fund Roth IRAs."

I also really loved that he says giving is the biggest reward! I totally agree. Tyler and I always find that we have more when we give more. His three purposes for building wealth are to have fun, invest and give.

If you haven't read this book yet GO READ IT! it is totally worth the couple of weeks waiting on the library hold list...even if you and your spouse don't have any money problems it is a great read.

Go check him out at to get additional details!


Kami said...

I was a Finance major at BYU and my favorite classes were personal and family finance, and all I can say is ... YES YES YES! I have friends who have no concept of saving or budgeting and it drives me bonkers because they are SO on the edge all the time about money.

I definitely approve of this message, and the book! This makes me ridiculously excited, Carissa!

Grace Hart said...

I LOVE Dave Ramsey! I just went to his Live Event here in Phoenix and loved it. He teaches everything the church does and I love his steps outlining exactly what to do and when.

Thanks for sharing!

Jessi said...


Anonymous said...

You are quite the reader, Carissa. I meant to comment on your previous post about all those books you had read recently! I have never read Dave Ramsey's book but I know his approach well and wish more people would practice what he preaches.