"Ramsey offers a bold, no-nonsense approach to money matters, providing not only the how-to but also a grounded and uplifting hope for getting out of debt and achieving total financial health. Ramsey debunks the many myths of money (exposing the dangers of cash advance, rent-to-own, debt consolidation) and attacks the illusions and downright deceptions of the American dream, which encourages nothing but overspending and massive amounts of debt. "Don't even consider keeping up with the Joneses," Ramsey declares in his typically candid style. "They're broke!" This book isn't theory. It works every single time. It works because it is simple. It works because it gets to the heart of the money problems: you"--Publisher's description.
Step 1: Set aside $1000 for emergencies
Step 2: Use the “debt snowball” method to payoff debt as quickly as possible
Step 3: Finish the emergency fund (3 – 6 months worth)
Step 4: Maximize retirement investing
Step 5: Build the kids' college fund
Step 6: Payoff the house
Step 7: Build wealth like crazy
Mr. Ramsey refers frequently to his financial failures and his use of this system to get him back on track. He also discusses that debt is a relatively new phenomenon and is largely the result of marketing of retailers and the marketing of lenders. It's a two-pronged front on your financial sanity. You're sold on the fact that you need more “stuff” and the lenders sell you on the importance of leveraging, loans, and using credit. His points are both interesting and convincing.
As someone with a little debt to get rid of, I'm sold on Mr. Ramsey's model. I'm implementing it now and I've just begun reading his earlier book, Financial Peace, to see what else he has to teach.
This is a book well worth reading to see if it's the right thing for you.
Many people hesitate to take the advice of financial experts because it is difficult to know if their advice works. Ramsey’s advice, however, has been field tested. Dave Ramsey has seen both the highs and lows of financial life. By the age of 26 he had created a rental real estate portfolio worth more than $4 million. His entire net worth had been built on debt, however, and when the banks came calling he was forced into bankruptcy. Since then, Ramsey has eschewed debt and has rebuilt his fortune many times over.
I am not going to go over every single step in the book. Instead, I will discuss the main themes of the book. Ramsey is an ardent believer in personal responsibility. Consider him the AA of personal finance. Until you are able to admit that your debt is the result of your actions and that only you can get yourself out of it, nothing else will work. The key, in Ramsey’s opinion, is the written budget. Everything he teaches begins there. You must know exactly where every dollar you make is going, before you even earn it. If you don’t plan this out, you will never be able to take control of your finances and take control of your life.
This book is not for advanced investors. Ramsey does not discuss specific investments much at all. This is a book about the theory and emotions of personal finance and is a simple and honest plan for taking control of your financial life. Highly recommended.
The book makes a great gift for family and friends.
This is not a get rich quick scheme, but a build wealth scheme over time. For those will to follow Dave's principles, you are encourage to cut up and close you credit cards, live on cash. Debit cards are fine to use as well. For many, this will seem foreign or impossible. For those that take the journey, you will be rewarded.
This book belongs on everyone's book shelf right along side the Millionaire Next Door!
This book has very little to offer anyone who is using their credit responsibly and are not already drowning in debt. The behavioral changes he recommends are likely very helpful for those who have irresponsibly over extended themselves already. A large portion of his advice seems like good advice; however, it doesn't really extend beyond common sense.
Perhaps my biggest complaint is simply a nit pick. The author translates the "college experience" into "they want to party" when discussing why there is no reason to not work during college. Since the author uses "intellectual" as an insult, I guess I shouldn't expect him to understand the many intellectual benefits of not having to work during college. I worked during my 3rd and 4th years; however, I worked far fewer hours than he seems to be suggesting. Not working during college gives one the ability to go to interesting lectures and seminars taking place in other departments, grapple with difficult material, read books and articles outside the required material, and attend art and cultural events. Obviously, not working (or working only a few hours) is not an option for everyone, but there are benefits to the "college experience" that were well worth taking on a bit of debt for. To claim that the "college experience" only consists of "partying" seems to underscore the author's singular focus on a portion of the population with severely misaligned priorities.
Perhaps I was simply hoping for a book that would go over the nuts and bolts of creating wealth.
Oh well, repitition is a good thing and reading the real people's letters was very helpful as well!