The Total Money Makeover: A Proven Plan for Financial Fitness [Hardcover]

Dave Ramsey (Author)

Book Description

Release date: February 6, 2007

The success stories speak for themselves in this book from money maestro Dave Ramsey. Instead of promising the normal dose of quick fixes, Ramsey offers a bold, no-nonsense approach to money matters, providing not only the how-to but also a grounded and uplifting hope for getting out of debt and achieving total financial health.

Ramsey debunks the many myths of money (exposing the dangers of cash advance, rent-to-own, debt consolidation) and attacks the illusions and downright deceptions of the American dream, which encourages nothing but overspending and massive amounts of debt. "Don't even consider keeping up with the Joneses," Ramsey declares in his typically candid style. "They're broke!"

The Total Money Makeover isn't theory. It works every single time. It works because it is simple. It works because it gets to the heart of the money problems: you.

Editorial Reviews

About the Author

Dave Ramsey, a personal money management expert, is an extremely popular national radio personality, and author of the New York Times bestsellers The Total Money Makeover, EntreLeadership, Financial Peace, and More Than Enough. 

Product Details

• Hardcover: 272 pages
• Publisher: Thomas Nelson; 2 edition (February 6, 2007)
• Language: English
• ISBN-10: 0785289089
• ISBN-13: 978-0785289081
• Product Dimensions: 7.4 x 0.9 x 9.6 inches
• Shipping Weight: 1.7 pounds (View shipping rates and policies)
• Average Customer Review: 4.7 out of 5 stars  See all reviews (360 customer reviews)
• Amazon Best Sellers Rank: #4,815 in Books (See Top 100 in Books)
  • #7 in Books > Business & Investing > Personal Finance > Credit Ratings & Repair
  • #12 in Books > Business & Investing > Personal Finance > Budgeting & Money Management

Most Helpful Customer Reviews

94 of 111 people found the following review helpful

2.0 out of 5 stars A lot of bad advice for many people May 24, 2010

By J. M. Parsons

Format:Hardcover|Amazon Verified Purchase

I bought Ramsey's book because he has so many raving fans (my daughter among them), and the loyalty they express is often literally evangelical in nature. Offering any criticism of Dave Ramsey's advice can draw fusillades of righteous indignation. Any negative comments about Dave Ramsey, Financial Peace University or any of the many products he sells may be answered by, "You obviously love debt," and "why are you so against living by Biblical principles?"

As a financial professional, I can legitimately claim to be an expert in matters of debt and credit. So I bought his book so I could see just what it was about Dave Ramsey would cause these extreme reactions. After reading it carefully, I have come to some conclusions.

First, I must acknowledge that there is a lot to like about Dave Ramsey. His basic teaching can be boiled down to this:

1. Don't buy stuff on credit that you can't afford
2. Set aside money for emergencies and the future
3. If you are in trouble with debt, stop incurring it (we could also state it as, "When you're deep in a hole, stop digging.")
4. Make a plan to retire your debt systematically

He offers a step-by-step method for getting out of debt and onto a better financial footing. He teaches that you should pay attention to your finances and work from a written budget.

These are all good things.

My first concern is that Mr. Ramsey teaches that All Debt Is Evil (with the possible exception of a 15 year mortgage). Others here have mentioned his assertion that "responsible use of a credit card is not possible." His audience is urged not only to pay off their debt (a Good Thing), but to cut up the cards and close the accounts....

As a mortgage lender, I can attest that this will destroy an individual's credit score and make securing a mortgage very difficult and expensive. Mr. Ramsey's simplistic answer to getting a mortgage without a credit score (or, more accurately, without any active accounts) is to "find a lender who does manual underwriting." The simple fact is that ALL mortgages are manually underwritten. It is possible to get a loan using "alternative credit" (rent receipts, cell phone bills, utilities, etc.), but these loans are, without exception, far more expensive than conventional loans. At a minimum, a borrower without any open accounts will have to resort to a government-insured FHA loan, which carries an up-front mortgage insurance premium of 2.25% of the loan amount, plus .55% additional insurance, paid monthly.

There are many instances of bad, even dangerous advice from Mr. Ramsey, often couched in terms similar to those found in 12-Step programs, expressed in his avuncular, folksy style. He makes liberal use of logical fallacy and outright false statements to advance his points.

I believe Dave Ramsey's appeal (and the vehicle that is earning him a reported $40 million annually) is to those who are desperately in debt, primarily because of their own bad habits. They are looking for any lifeline, and he offers them not only a method, but also encouragement to stick with their plan.

But for people who are NOT in dire straits, simply looking for a way to improve their financial lives, there are far better places to seek guidance than Dave Ramsey's simplistic, one-size-fits-all advice. Borrow one of his books or check them out at the library, read them critically and decide for yoursef whether my comments have any merit. Read more ›

19 of 20 people found the following review helpful

5.0 out of 5 stars Common sense for your dollars and cents. July 29, 2007

By Jennifer Kydd

Format:Hardcover|Amazon Verified Purchase

Although Dave Ramsey is becoming more widely known around the nation, I can still mention his name here in Chicago and get a "Who's that?" response. I first found out about Dave while living in Kentucky through a co-worker. This discovery turned my life around.

Two years ago, my husband and I were a little over $36,000 in debt including credit cards, cars, and student loans. Today, we are completely debt-free, saving an emergency fund like Ramsey strongly advocates in the book, and we will be able to purchase a home on a 15-year fixed rate mortgage (also something he advocates in the book).

The philosophy is incredibly simple, and a few other reviewers have already listed his "baby steps," so I won't rehash that again. "Baby steps" actually came from the Bill Murray flick "What About Bob?", in case you're wondering. Not only are the steps easy to follow, but you'll want to channel Homer Simpson and have a "Doh!" moment when you read it. On his widely syndicated talk radio show, Ramsey uses the opening line, "Teaching you the same advice your grandmother would, only we keep our teeth in." That line is in deference to the fact that he realizes he is teaching people common sense money management.

If you're in love with your FICO score or looking for a financial expert to help you improve your credit, Ramsey's book is the wrong one for you. Be forewarned that he cares NOTHING about a credit score. The only debt that he "allows" you to keep is a mortgage, and he's not crazy about that. If you're looking for a way to get out of debt, stay out of debt, and learn to make the most of your hard-earned wages (possibly become a millionaire in the process), then you need to read this book. It may change your life; it changed mine.

8 of 8 people found the following review helpful

5.0 out of 5 stars Changed My Financial Life! June 7, 2007

By D. Samuelson

Format:Hardcover|Amazon Verified Purchase

Reading this book has become a turning point in my family's financial life. I can admit now that when I first picked it up I thought that I might find a few pointers, but otherwise I considered myself pretty savvy. Well, it was like a splash of cold water in my face, waking me up from financial laziness and busting so many money myths that I didn't even realize I had bought into. Emboldened by the knowledge from this book to reevaluate my insurance arrangements -- I now have much better coverage for much less cost. I realized that the debt for a new car I had my eye on would ultimately cause me to delay reaching so many other goals! By following Dave's common-sense, no-magic-formula principles, we're on the way to "Living like no one else!" Instead of burdening my family with more and more payments, we are now debt-free except for the house, we have 6 months expenses in an emergency fund (so great to have when an ER trip happened and didn't have to worry about where the money would come from!), are actively contributing to retirement and college funds, paying a little extra on the house each month... and should be able to take the kids to DisneyWorld next summer: with cash! Thanks, Dave, for giving me the confidence, the knowledge, and the inspiration to get on the right track. I bought a copy just to loan out to friends! I can't reccommend it highly enough!

8 of 8 people found the following review helpful

5.0 out of 5 stars It changed my life June 26, 2008

By E. Tidwell

Format:Hardcover

Sometimes you find yourself in the middle of something, and realize that what you're living right now is a turning point in your life. Reading the Total Money Makeover was one of THOSE awesome times for me.

I was initially skeptical about this book, but last summer some girls on a mother's board I'm a member of were really excited about Dave Ramsey. So in late August I picked up a copy, and started to read. Then I picked up a highlighter and read it again. I started listening to the radio show and I dragged my husband to Dave Ramsey's 12-week financial class.

A year ago, I figured we'd be living in our tiny starter house forever and wondered how we'd be able to afford pre-school and still come up with money for a down payment for a 2nd car.

Today, in the midst of this "economic recession", we are happy, confident, and have hope about the future, because thanks to Dave's inspiring stories and simple plan, we have now eliminated all our debts, bought a house, and realized that we really can afford to send our kids to college in 16 years AND retire comfortably. We're planning to buy that 2nd car in cash next year.

You really can summarize this book in just a few paragraphs, but you can't substitute a description of the plan for the amount of motivation you can get from the inspiration that's inside.