The Total Money Makeover - Dave Ramsey (4 of 5 Cut Up Credit Cards)

I recently finished Dave Ramsey's The Total Money Makeover. I was impressed with his no-nonsense approach to personal finances. The core principles of his book are debt elimination and practical preparation for the future. Unlike many other financial advice books, he quotes scriptures from the Bible to support his principles.

For the first third of the book, he openly tells the reader all the things that they are doing wrong with their money. Essentially, in these chapters he argues that all debt is bad and should be avoided like the plague. At times, his tone was a little too much for me, but it did get the point across.

His relationship with the reader becomes a bit more cordial when he begins his basic steps to financial success. They are:

1 - "With gazelle-like intensity" build a liquid $1,000 emergency account.
2 - Eliminate all debt (except for the house), starting with the smallest balances.
3 - Build a 3-6 month savings account.
4 - Secure college funds for your children.
5 - Pay off the house.
6 - Seek to reach the financial "pinnacle point" in which your money makes more then you do.
7 - Enjoy the rest of your life playing (within moderation), investing, and giving to others.

In his conclusion, Dave Ramsey declares that money is only good for the three things listed in step number seven. The most important of these is giving to others. He teaches that by balancing our own finances, we can better help bless the lives of others.

I enjoyed the book. It was straightforward and practical. I liked the religious elements scattered throughout the book, but I felt it was a bit heavy-handed at times.

Thanks Carmen, for your initial review of this book. I think everyone should read it. If you like the book you should also visit his website www.daveramsey.com and check out his radio show which is also available in podcast form.