THE TOTAL MONEY MAKOVER By Dave Ramsey
(A proven plan for Financial Fitness)

A short summary of the book, and useful quotes. Tens of thousands of ordinary people have become debt-free – here’s how you can too…Please read the book for full details, examples, and real-life storeis by the author.

MOTTO: IF YOU LIVE LIKE NO ONE ELSE, LATER YOU CAN LIVE LIKE NO ONE ELSE

I had too much debt, too little savings, and no sense of control over my life.
Winning at money is 80% behaviour and 20% head knowledge.
Savings without a mission is garbage. Your money needs to work for you, not lie around.
Co-signing of loans = broken hearts and broken wallets
We buy things we don need with money we don have in order to impress pple we don like
Debt is not a tool, it is a mtd to make banks wealthy, not U
We worry about our health & focus on our money only after they r gone
Don’t ever consdier to keep up with the Joneses. THEY ARE BROKE!!

MYTH vs TRUTH
M: If I loan money to frens and relatives, I am helping them
T: If you loan money to frens and relatives, the relationship will be strained or damaged.
M:Debt is a tool & shld be used to create wealth
T:Debt adds considerable risk, most often doesn’t bring prosperity & isn’t used by wealthy people as much as we are led to believe

M:You can get agood deal on a new car at 0% interest.
T:A new car loses 60% of its value in the 1st 4 yrs, that isn’t 0%

M:If I do a will, I might die.
T:You R goin to die – so do it with a will

M:U should get a credit card to build up credit.
T:You won’t use credit with yr Total Money Makeover, except maybe for mortgage, & U don need a credit card for that.

M:If no one uses debt, our economy will collapse
T:Nope. It will prosper.

BABY STEPS TO FINANCIAL FITNESS…
Step 1:Save $1000 cash as a starter emergency fund
- hide it
- keep it liquid

Step 2:Start the Debt Snowball: Lose weight FAST, really.
- list all yr debts (fr smallest to biggest)
- clear small debts first

Step 3:Finish the Emergency Fund
(should be enough for 3 – 6 mths’ expenses)

Step 4:Invest 15% of yr income in retirement
- mutual funds
- learn about investing to overcome the fear

Step 5: Save for college

Step 6 Pay off your home mortgage
- shorter terms matter
Sample:
Purchase Price - $130,000
Downpayment - $20,000
Mortgage - $110,000
Mthly Total
30 yrs $732 $263,520
15 yrs $988 $177,840
Difference$256 $85,680

Step 7 Build wealth like crazy
“Wealth is not an escape mechanism. It is instead a responsibility.”
3 reasons to build wealth: HAVE FUN, INVESTING, GIVING


For more, read book by Dave Ramsey or visit his website www.daveramsey.com