Book Review

The Total Money Makeover by Dave Ramsey

The author presents a total money makeover in a few "simple" steps.

1. Save $1000 for emergencies
2. Create a debt snowball plan - make minimum payments on all debts and focus on paying off the smallest debt first.
   
3. Save a 3 to 6 month emergency fund (based upon monthly expenses)
4. Invest 15% of gross income
5. Save for college (ESA plan first, then 529 - $2000 per year)
6. Payoff Mortgage
7. Have fun - invest - give

Those are essentially the steps. Follow each one in order and don't move on to the next until you complete each step.

Overall, I agree with the author. There is no better plan for personal finances. However, that doesn't mean there aren't other plans that are equally as good. I do believe that if you follow his steps, you will eventually be debt free and living a healthy financial life.

One thing I didn't like about the book was the number of times the author said he was a millionaire, lost if all and is now a millionaire again! Seems a little egotistical to me.

I also found the customer testimonies annoying. They all seemed to praise the author, how great he is and how much they love him. Blah Blah Blah. I realize some testimonies are good and necessary, but I think most of them simply feed the author's ego and fill his book!

Overall, I would recommend this book and this plan for anyone wishing to get in shape financially.