The Total Money Makeover - Book Review

The Total Money Makeover
A Proven Plan For Financial Fitness
by: Dave Ramsey

Dave Ramsey is the best-selling author of More Than Enough and the enormously successful Financial Peace. His radio program, The Dave Ramsey Show, is heard on more than 180 radio stations throughout the U.S. and transmits Ramsey's inimitable financial advice to more than 2 million listeners each week. Many national corporations as well as tens of thousands of individuals have benefited from Ramsey's Financial Peace University program and his many LIVE events.

Here is my chapter by chapter review.

Chapter One - The Total Money Makeover Challenge
In this chapter Dave tells you his story, how he became a millionaire by the age of twenty-six and then subsequently lost everything. He tells how the biggest challenge he faced in pulling himself back up was the man in the mirror, and that you too will have to face that challenge if you want to succeed. He introduces the Total Money Makeover motto: IF YOU WILL LIVE LIKE NO ONE ELSE, LATER YOU CAN LIVE LIKE NO ONE ELSE. There is a success story (one of many in this book) followed by Dave's promise to you, that if you will follow his program you can be debt-free, begin saving, and give as you've never given before.

Chapter Two - Denial: I'm Not That out of Shape
This chapter covers denial and the pain of change.

Chapter Three - Debt Myths: Debt Is (Not) a Tool
In this chapter Dave debunks common debt myths, and tells you the truth about those myths.

Chapter Four - Money Myths: The (Non)Secrets of the Rich
Another chapter in which Dave gives you the truth about common money myths.

Chapter Five - Two More Hurdles: Ignorance and Keeping Up with the Joneses
No one is born financially smart, so in order to be financially fit we have to learn about money and finances. We have to overcome our ignorance in order to succeed. Dave says "Don't even think about trying to keep up with the Joneses. They're broke!" Dave talks about how the Joneses are in debt up to their eyeballs, they just don't want us to know it. He also tells a story about himself, when he was broke but refused to give up his Jag until the day the bank said they were coming to take it away.

Chapter Six - Save $1,000 Fast: Walk Before You Run
This is where Dave introduces the Baby Steps from his Financial Peace book. The first step in his program is to save a mini emergency fund of $1,000, and that is what he talks about in this chapter. He also says that before you begin his program and start on baby step one you must get current with your creditors.

Chapter Seven - The Debt Snowball: Lose Weight Fast, Really
This chapter goes over Baby Step 2, the debt snowball, and how it works. Included are The Debt Snowball and Credit Card History forms. He also tells you how to get started, and what not to do while you are on this step (such as save for retirement or college, that comes later after you have paid off your debts).

Chapter Eight - Finish the Emergency Fund: Kick Murphy Out
Baby Step 3 is covered in this chapter, saving three to six months of expenses in your emergency fund. Dave tells you where you should keep your emergency fund, how to decide how much to save, and how to get it done. He also says that after your emergency fund is complete you should save 100% down for a home, if you do not currently own one, before moving on to the next baby step.

Chapter Nine - Maximize Retirement Investing: Be Financially Healthy for Life
This chapter is all about retirement and how much you need to save for it. Dave recommends saving 15% of your income, and he tells you where you should invest it as well. Included in this chapter is a Monthly Retirement Planning sample sheet and worksheet, and a Retirement Options form.

Chapter Ten - College Funding: Make Sure the Kids Are Fit Too
Dave talks about the need to understand the purpose of a college education, and that most people do not. He goes over his Rules for College, and Baby Step 5: Save For College. Dave discusses where you should and should not invest for college, and ways to get creative about college funding if you don't have a lot of time left to save. Included in this chapter is the Monthly College Planning form.

Chapter Eleven - Pay Off the Home Mortgage: Be Ultrafit
This chapter is about Baby Step 6: Paying Off Your Home Mortgage. Dave again goes over some common myths to beware of, and gives you the truth about them. Included in this chapter are the Addendum One, Addendum Two, and Addendum Three forms.

Chapter Twelve - Build Wealth Like Crazy: Arnold Schwarzedollar, Mr. Universe of Money
This is about Baby Step 7: Building Wealth. Dave talks about the importance of having fun, investing and giving to others. He says you can not claim Total Money Makeover status until you do all three.

Chapter Thirteen - Live Like No One Else
This chapter sums up the book and Dave's program. He talks about making sure wealth is a blessing and not a curse, and how that the LOVE of money is the root of all evil not money itself like some religions claim. He also talks about hope, and how he wants you to gain hope from the book and his program.

More Total Money Makeover Stories
Here are sixteen pages of success stories from people following Dave's advice.

At the back of the book are all the forms you need to get started on your own Total Money Makeover including: Major Components Of A Healthy Financial Plan, Consumer Equity Sheet, Income Sources, Instructions For Monthly Cash-Flow Plan, Monthly Cash-Flow Plan, Recommended Percentages, Instructions For Allocated-Spending Plan, Allocated-Spending Plan, Irregular-Income Planning, Breakdown Of Savings, The Debt Snowball, and Pro Rata Debts.

I really enjoyed this book and it got me totally fired up to start Dave's Total Money Makeover plan. I couldn't read it fast enough! I would totally recommend this book to anyone, as a matter of fact I have already gotten my husband and my mom to start reading it. I read the 2003 version, but you might want to look for the revised and updated 2007 version of the same title.

Should you buy it? Yes!