Total Money Make Over
About The Book
This is a masterpiece by the author Dave Ramsey. In this book, the author has shared seven baby steps to be financially free in short term.
Baby step 1) Save $1000 for Emergency Fund
In this first step, the author has said that your goal is to save $1,000 as fast as you can. Your emergency fund will cover those unexpected life events you can't plan for. And there are plenty of them. You don’t want to dig a deeper hole while you’re trying to work your way out of debt.
Baby step 2) Pay all your Debt
In this step, the author has said to pay all your debt except the house Debt because house debt has longer tenure. You can use the snowball effect to pay the debt according to the author you should pay the debt which is less in terms of money so that the momentum can be continued.
Baby step 3) Save 3-6 months of expenses in an emergency fund
According to the author now you have cleared all your debt now you should increase your emergency fund so that it can be sustainable for up to 3-6 months.
Baby step 4) Invest 15% of household income for Retirement
According to the author you need to get serious about your Retirement no matter your age. You need to Invest your 15%of household income in work so that you can get a continuous return. And make your Retirement secure.
Baby step 5) Save for your Children's College fund
Now you have paid all your debt (except the house) now it's time to save for your's children's education You can make the calculation and save for your's children education (Remember the inflation Rate it's average 4% per year)
Baby step 6 Pay off your home early
Now you have done all the necessary planning now it's time to pay the debt of your home and be debt-free.
Baby step 7) Build Wealth and Give
Now you are debt-free and have done all your planning and investment now it's time to enjoy the wealth and be financially free.
Who is Dave Ramsey
More than 25 years ago, Dave Ramsey fought his way out of bankruptcy and millions of dollars of debt. He took what he learned and started teaching people God's and Grandma's ways of handling money. Since then, Financial Peace University has helped nearly 6 million people take control of their money for good. Today, The Ramsey Show, formerly known as The Dave Ramsey Show, reaches more than 13 million listeners every week on the Ramsey Network radio show and podcast. And now Financial Peace.
Conclusion
The Conclusion of this book is to achieve financial freedom and to build wealth and enjoy it.
As said it is the summary of the book The Total Money Makeover
Thank you!!
Are You Ready to Be Financially Free?