“Total Money Makeover” by Dave Ramsey
Click here to download this audiobook
I’ve been reading reviewing a bringing you a new book each month that I think can help you in your personal and financial life. Here is one that I live and teach. I give a two day intensive seminar called “Certified Master Contractor” or CMC for owner operators or drivers looking to become owner operators. We spend two days learning as much as possible about how to make money as an owner operator and how to really be successful.
I cover all of these topics and more:
Operations
ROI (Return on Investment)
Proper Spec’ing
Equipment Financing
Contracts
Insurance
Business Entities
Record keeping and taxes
Income Tax
Fuel Tax
2290 Tax
Cost per mile (cpm)
Calculate and compare cpm and % of income
Reading Financial Statements
Controlling Costs
Financial planning
Investing and Insurance
Debt and Emergency Funds
Retirement Accounts
Goal Setting and Personal Development
I always finish the two days with a section on good solid financial planning for your personal life and a lot of the information I cover in my seminar is also covered in this book. This is a great financial plan and a good way to handle your money. It’s not easy but nothing worthwhile ever is. One thing to remember when reading this book is that it’s not a get rich quick scheme and you’re not going to fix your financial problems overnight, but if you have a plan and stick to it you will end up better off financially than 90% of the population.
Contents: The Total Money Makeover Challenge; Denial; Debt Myths; Money Myths; Two More Hurdles; Save $1000 Fast; The Debt Snowball; Finish the Emergency Fund; Maximize Retirement Investing; College Funding; Pay Off The Home Mortgage; Build Wealth Like Crazy; Live Like No One Else; More Total Money Makeover Stories; Budgeting Forms
The thing I appreciate most about this book is that Ramsey doesn’t try to present some “buy my 10 step program for $500″ pitch nor does he promise that getting out of debt is easy and painless. If it was, most of us wouldn’t have a problem. What he does do is lay out a series of “baby steps” that if followed with “gazelle intensity”, will work to get you out of the mess you might be in today. The first step is to get an initial emergency fund of $1000. Do whatever it takes… second job, garage sales, you name it. Just get a cash buffer so that you can get yourself off the credit card trap. Once that’s done, you list all your debts and start putting as much as possible towards paying off the first one. Once that’s done, then you roll that amount plus whatever else you can afford to the second. This “snowball” effect can quickly whittle down the number of creditors you have, as well as the amount you owe. Couple this with a budget and a hard look at things that have gotten you in debt (like that third car or the boat), and you’re well on your way to reducing the financial stress in your life. Or as he puts it… “Live like no one else now, so you can live like no one else later”. Each of the following steps builds upon the work you’ve already done, and it’s a very logical progression. The book is also liberally sprinkled with a number of stories from real people who have followed these steps and eliminated incredible amounts of debt… Totals that are truly jaw-dropping…
The Total Money Makeover is written in the same entertaining and witty style Dave Ramsey uses on his talk show. I equate this book to a sensible diet and exercise book. We all know the principles, but sometimes need a reminder and some motivation. This book does just that. It reminds us of the principles our grandparents used when managing their money, “If I don’t have the cash, I’ll pass”.
