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Rating: 9.5/10
Quite simply, Dave’s principles on finances that he shares in this book have changed our futures, and most importantly, lifted our marriage. After Lauren and I took “Financial Peace University” last year, we were finally on the same page financially, and we had a PLAN. We started on a monthly “zero-based” budget, saved a short-term emergency fund, and began to eliminate all of our debt.
I can’t recommend this book enough, as the principles are simple to apply, teaching about the power of compound interest, tackling debt, saving for your child’s college. Total Money Makeover provides a step-by-step process to attaining financial freedom, and it’s working for us!
Emergencies: After you start an emergency fund, you’ll find that there are a lot less “emergencies” financially.
Debt: The borrower is ALWAYS slave to the lender. Just because it’s a low monthly payment doesn’t mean that it’s best for long-term.
Compound Interest: $7500 at 4% interest will be $30,000 in 36 years. At 8%, it will $120,000 in 36 years. At 12%, over 36 years, it’s $480,000. The power of compound interest is amazing, and after reading this book, I’m convinced that we can arrive to a place financially where our money is working for us, rather than “us” working for our money. If we can understand the power of compound interest, we can realize that we don’t need to make a “boatload” of money to attain financial freedom.
Again, I can’t recommend this book (Total Money Makeover), Financial Peace University, and Automatic Millionaire by Steven Bach enough.
Book Review: Total Money Makeover by Dave Ramsey