Monday, July 2, 2012

Total Money Makeover

After finishing the last book [What a Husband Needs from His Wife], I decided to go ahead and read another.  This time around I chose this book, The Total Money Makeover by Dave Ramsey.  The reason why I am sharing this book with you is because  I am so thankful that someone shared it with me.  I learned from it and it truly changed the way I spend and think about money.

Anywhoo, the hub and I got this gift from my brother and sister in law when we graduated from college. It was one of the best gifts we could have ever gotten.  The main theme as I see it is get out of debt [other than your mortage] and start saving for the future [and of course Dave has a plan on how to do it].
I have to admit I wasn't all that thrilled with the Total Money Makeover because I love love love [oh love] to spend money.  I only thought about the now.

What Dave Ramsey's challenges readers is NOT easy and he down right tells you it is hard.  It is HARD to get out of debt when you're in deep.  From experience I know it is hard but completely worth it. 

So here are some quotes from the book that stood out to me: 

"I came to realize that money problems, worries, and shortages largely began and ended with the person in the mirror." 

"Personal finance is 80% behavior and 20% knowledge."

"Debt is so ingraned into our culture that most American's can't even envision a car without a payment, a house without a mortgage, a student without a loan, and credit without a card." [so true!]

"Larry Burkett says debt is not the problem; it is the symptom.  I feel debt is the symptom of overspending and undersaving."

"How much could you give every month, save every month, and spend every month if you had no payments?"

"A budget is people telling their money where to go instead of wondering where it went."

"A problem with debt management by someone else is that your habits don't change."

"I am not against the enjoyment of money.  What I am against is spending money when you do not have money to begin with."

"Continuing to do the same thing over and over again and expecting a different result is the definition of insanity."

"Getting older is going to happen!  You must invest now if you want to spend your golden years in dignity."

"Most of you will have well over $2 million pass through your hands in your working lifetime, so do something about catching some of that money."

"The typical American with a 40,000 annual income would normally have an $850 house payment and a $350 car payment with an additional $180 payment on the second car.  Then there is a $165 student loan payment; and the average credit card debt is about $12,000 making those monthly payments around $185 per month.  Also, this typical household will have other miscellaneous debt.... they pay an additional $120.  All these payments total $1,850 per month.  If this family were to invest that instead of sending it to the creditors, they would be cash mutual millionaires in just fifteen years!"

Do you get a glimpse of what Dave is saying?  He says to get out of debt and start saving/investing!  Next week I will share one of my favorite success stories and share some of the details of the plan.  Again, I am sharing this because I am thankful someone shared it with me and I hope it helps someone else out there reading this.  I am not in any way telling you how to handle your money or that this is the only way.  I am just saying if you don't know where to start, reading this book is a good starting point.


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