Dave Ramsey's Total Money Makeover

[becka]

I have been listening to Dave Ramsey on the radio for about a month and I bought his Total Money Makeover book a few days ago. I think we are going to give it a shot. Is anyone else following his plans? They seem to make so much sense and I really like his no-nonsense approach.

We already have the emergency fund and we are going to start our debt snowball this month. Looking at the numbers on paper it is pretty amazing what it looks like we can accomplish if we just focus on debt reduction instead of spreading our dollars around to debt reduction, retirement, savings, etc.. in a relatively short period of time.

Anyone else? Any helpful hints?

 

[EdiePA]

Hi, Becka,

I'm familiar with Dave Ramsey's book and haven't exactly followed it -- I'm more in line with Larry Burkett's work at crown.org, but they're similar.

My husband left me with a lot of debt and no savings two years ago. By really sticking to my budget and a lot of hard work, I have no credit card debt, own my own home, am helping two sons in college and finally have over $3000 in an emergency fund. It isn't easy, but it sure feels good to know that no matter what happens, I have the $$ to cover it.

I think a married couple would have to really choose to work on this together. Both of you would have to be committed to saving money and using it to pay down your debts. Well worth the peace of mind it brings!

Edie

PS -- I'll have enough saved for a trip to Disney for myself, DS#1, DDIL, and DS#2 by 2005!!

 

[pjlla]

Go to your local library and check out all of the "Tight Wad Gazette" books by Amy Dacyczyn (pronounced decision). There are three. While most of us wouldn't follow ALL of the ideas outlined in her books, I think you will be amazed at what the potential for savings is.

I own all three books and have owned them for about 10 years. I probably re-read them at least once a year. I certainly don't religiously follow them (or else we would have the $$ to go to WDW more often!!), but I have picked up a few ideas that have just become part of my normal routine now (like not paying more than .33/lb for pasta). ............................P

 

[Jenn Lynn]

becka- I read your other post and wanted to tell you that I watched Oprah one day and she had on man named David Bach. He talked about his book The Automatic Millionaire. It is really an easy read and a really simple plan to follow. He says to make all of your savings happen automatically by having it done electronically out of your checking into you investments and savings. DH and I started doing this last month and it is great! We would always say we were going to save, but then there is always "something" to spend that money on. Now it is treated more like a bill.

He also talks about the Latte Factor. If you were to take the $7 you spend everyday on a Latte and convert it to savings, and figure it out over a year or more you can see how much you actually spend on the small things and how much they add up. It really gets your attention to see it in black and white like that. This might help your DH.

I have to say that my Mom, Sister and I all watched the same show. And we ALL went out and got the book and we didn't even know that the others had done it!

Good Luck!

 

[mcnuss]

Here's my take on all of these books: Everytime you buy one, you are poorer and the author is richer. These people are not all that altruistic. If you are really serious about taking control of your finances, go see a Certified Financial Planner and have them review your individual situation and then develop a plan of attack for you to execute. The books are too general if you are really in a financial pickle. It will cost more than the books, yes, and I am not saying that the CFP isn't in it for a profit, but most people are more likely to stick to a plan that was developed just for them than to stick to generalized guidance from a book.

 

[Kermit]

That's too funny. I mentioned him on your other thread about your DH.

We're doing it right now. I do also like Larry Burkette (he passed away a few months ago, but his organization is still going strong), but DH likes Dave Ramsey because he can listen to him on the radio and get inspired.

I think that debt-free living is the absolute best way to accumulate wealth and rid yourself of stress. There are a lot of financial planners out there who would have you get wealthy by borrowing money, but that's just not a good idea.

I've also read the Tightwad Gazzettes. You can get a lot of good tips from those books. Many of the tips will be things you won't want to do, but you'll come away with a lot of things you can do, and it makes you think about ways to cut back. My absolute favorite book is Miserly Moms. The advice in there is more in line with the types of things I'm willing to do, and I like the author's spirit a little better. With any of those books, check and see if your library has them. If you end up liking one, you can always buy it so that you'll have it for reference. Buy it on Half.com and save even more money.

 

[Jenn Lynn]

Originally posted by mcnuss
Here's my take on all of these books: Everytime you buy one, you are poorer and the author is richer. These people are not all that altruistic. If you are really serious about taking control of your finances, go see a Certified Financial Planner and have them review your individual situation and then develop a plan of attack for you to execute. The books are too general if you are really in a financial pickle. It will cost more than the books, yes, and I am not saying that the CFP isn't in it for a profit, but most people are more likely to stick to a plan that was developed just for them than to stick to generalized guidance from a book.

That's why I sat in Borders for an hour and read it. It's a quick read. And I took some notes. The advice I got from the book was enough to put us on the right track of reducing debt and saving. And it confirmed that a lot of the stuff that we were already doing was great.

 

[Toby'sFriend]

go see a Certified Financial Planner and have them review your individual situation and then develop a plan of attack for you to execute. The books are too general if you are really in a financial pickle.

Just curious, have you ever read any of Dave Ramsey's books?

I find his steps to be quite detailed. I'm honestly not that fond of his advice on investing and saving once you are out of debt - at that point I would suggest a Financial Planner, but as far as motivating people to make a budget and stick to it in order to pay off their credit cards and other consumer debt, I feel he is one of the best. I also like Burkett. Most of these books are readily available at the library.

I think Ramsey's original book, Financial Peace, is great and the advice on his radio show centers around it. There used to be a Financial Peace workbook also, I'm not sure if it is still in print or not. But a good Excel spreadsheet can also help.

The only other thing that made me nervous about Dave Ramsey was the $1,000 emergency fund. I really feel more comfortable telling people to have at least $2 to $3,000 and then once their debt is more manageable to double that.

 

[disneygeek]

My husband and I have listened to Dave Ramsey for years. We are getting ready to facilitate our second Financial Peace University at our church. Dave Ramsey offers sound advice in an entertaining format. I would encourage you to visit daveramsey.com, listen to his sow, read his books, and attend Financial Peace University in your area.

Good Luck,

Lori