by Patricia Gilliam

Created on: October 22, 2008   Last Updated: February 23, 2010

A Review of "The Total Money Makeover"-One Reader's Story

Five years after my graduation, I still get credit card offers with my college's logo on it.  It brings back memories of walking across campus, avoiding the tables where people try to get students to sign up for a credit card in exchange for a "free" t-shirt.  I thought I was smart to at least avoid the 28% interest rate of those particular cards, but like everyone else I knew I still ended up with a credit card for emergencies.  I didn't know any better, and college, high school, and my well-intentioned parents had taught me that debt was a normal part of life.  In fact, my college even makes money from selling student and alumni information to the credit card companies.  So becoming an adult in this kind of environment, how does a person find real answers on how money works?

My husband came across Dave Ramsey's radio show about four years ago, and I got hooked on it a few days later.  We purchased tickets for a live event when Dave came to Knoxville, and I was impressed at how entertaining and clear he was able to make topics that were boring to me in a traditional school setting-if they were even taught at all.

We bought "The Total Money Makeover" shortly after attending that event.  I think it's important to explain this because Dave puts out a lot of information for free on his shows and website, and this book is an in-depth template you can follow step-by-step.  These seven "Baby Steps" as Dave has coined them are as follows:

1)  The Baby Emergency Fund ($1,000)

2)  The Debt Snowball (Pay off debts based on amount smallest to largest, not by interest rate)

3)  3-6 Months Expenses in Savings

4)  15% Investing Into Retirement

5)  College Tuition for Children

6)  Pay Home Off Early

7)  Build Wealth and Give

In putting the detailed advice of the first two steps into practice, my husband and I no longer have credit cards and car payments.  We're now working on our student loans, and our house is going to be paid off before I'm 35.  Like many people who get focused on this plan, our incomes also went up as our desire to get out of debt motivated us to look for opportunities.  I'm excited about what we can do with our lives now that we have a direction and a goal we're moving toward.

I would recommend this book to anyone who is looking for a plan to get out of debt and become financially stable.  If you're in high school or college, reading it will help you gain an advantage before you have to make a lot of major decisions.

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