I just finished reading Total Money Makeover by Dave Ramsey. It was a recommendation by FishMamma. I trust her recommendations and I hadn't read a book on money, well... probably ever.
I grew up hearing about Larry Burkett. I used to listen to his radio show when I was driving to college and back. So most of the ideas that Dave espouses weren't new to me. I knew that it is good to have a budget, not have debt, save for things like college and retirement and give money away charitably too. What was fun about reading this book was his sense of enthusiasm. And he had some new ideas about how to put it all into practice that made sense to me.
FishMamma described him to me as the "hipper, cooler Larry Burkett." I'd say that's probably true. I like that he doesn't talk much about the past. Just start today where you're at and make some changes. It made sense to me to have some money in savings for "emergencies" before you try to tackle debt so you don't go backwards when those emergencies do hit. For a guy with degree's in finance, I'd say his real skill is in what motivates people. People don't like to go backwards; it makes them want to give up.
He uses lots of catch phrases. One of his favorite is the "debt snowball." This is where you line up all your consumer debt (including car loans, but not your mortgage) and systematically pay off the lowest loan first, cross it off, then use the money you were using to pay on that loan toward paying off the second loan. You don't pay attention to which loan has the highest interest rate. Smallest to biggest so you can see quick results and get motivated to move on. It reminded me of books on weight loss. My favorite line in the book talked about how the math may not add up, but if you were so smart with math you wouldn't be in debt now would you! He was much funnier, but I had to return the book to the library so I can't get you an exact quote.
The one thing that I didn't agree with was his world view in regards to money. He is a Christian, and yet I didn't see one reference to God's sovereignty or His grace in regards to money. It was all about my will power, getting motivated, and me, me, me. I have to take control. I have to plan for myself. And in the end, when my money is so secure that nothing bad can touch me, then I have a responsibility to give to others. There was a lot spoken about trusting in a fully funded emergency account, not much about trusting in the Lord.
However, if taken as a tool, it was a very good one I thought. Sean and I have had some great conversations about where our finances stood as a result of me reading this book. I'm sure he got tired of me always asking where we stood. (Sean does all our bills and planning so some things I had no idea about!) And it got me motivated to go back to paying with cash all the time, not just when it was convenient.
I had fun reading it and would recommend it to anyone.
1 comment:
I have one of Dave's books. He does seem good at simplifying the confussing. I agree that being together is SO important. My mom learned that the hard way because she let dad do everything and did not want to have to worry about it. Now she is having to learn some confussing stuff real fast!
Also, you hinted to this.... but you will find a close connection between debt reduction and weight loss. Spent too much, ate too much...now you pay! :) It takes the same stick-to-itness to eat away at debt and burn away at calories. I have done the best when thinking of my exercize or lessening of clories as "bucks" in the "bank" toward weight loss. You "save" up 3500 and you have "bought" a lb loss!
On both notes, I think you are exactly right...how can we do this w/o God? His Holy Spirit plays such a crucial role and cannot be ignored!
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