• a guide to getting out of debt

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.

Dave Ramsey, radio talk show host, author and all-around financial guru, is no stranger to this ostrich routine. After his own bankruptcy he came to the conclusion that the key to financial (and physical) fitness isn't knowing all the tricks of the money trade; it's being honest with yourself. "If I can control the guy in the mirror, I can be skinny and rich," he says in his new book THE TOTAL MONEY MAKEOVER.

In other words, you have to get your head out of the sand. Okay, I have to get my head out of the sand.

Leaving the skinny to other books, Ramsey is a prophet to those who want to be rich but would settle for being financially stable. It's clear that this is a large group, given the popularity of Ramsey's radio show and books. After reading THE TOTAL MONEY MAKEOVER, I can see why they flock to him for advice.

Ramsey's principles are simple and straightforward. Pay cash. Pay off debts from smallest to largest. Create an emergency fund. He provides easy-to-understand answers to many seemingly complex questions about budgeting, retirement funds, saving for college education, and more.

Large pullout quotes scattered throughout the book offer bite-sized financial advice and factoids in Ramsey's typically direct manner:

"A new $28,000 car will lose about $17,000 of value in the first four years you own it. To get the same result, you could toss a $100 bill out the window once a week during your commute."

"Looking to spend $100 per month on life insurance? You could pay $7 a month toward term insurance and invest the remaining $93. But go with a cash-value policy if you'd rather have someone else earn interest on your investments."

"49% of Americans could cover less than one months' expenses if they lost their income."

"If your mortgage payment is $900 and the interest portion is $830, you will pay that year around $10,000 in interest. What a great tax deduction! Right? Otherwise, you'd pay $3,000 in taxes on that $10,000. But who in their right mind would chose to trade $10,000 for $3,000?"

All of this advice is helpful and eye opening, but what Ramsey really excels at is presenting inspirational tales of those who were once, but are no longer, in financial disarray. Their stories make up at least a third of the book, and the cumulative effect is that of a published pep rally designed to get people pumped up about saving money. And it works.

This is a must-read book for anyone whose looking for a little basic financial information and a whole lot of courage to finally put away the ostrich suit.

--- Reviewed by Lisa Ann Cockrel

134 of 141 found the following review helpful:


Straight talk and a proven plan from this radio star!  Aug 29, 2003
If you're thinking about passing on this latest book from financial guru Dave Ramsey because you've already read his first New York Times bestseller Financial Peace, think again. Financial Peace is "what to do." Total Money Makeover is a step-by-step, nuts and bolts "how to do" kind of book. Dave takes the seven key principles of a healthy financial plan from Financial Peave and gives them a shot of adrenaline and a ton of muscle! He walks with you through each of the seven "baby steps" and shows you exactly how to accomplish each one. Along the way Dave shares dozens of stories from people who are working on or have completed their own Total Money Makeover. The result is a book that could replace all others on personal finance. Reader beware: If you're looking for the next "get rich quick" book from a guy with a calculator and no experience, this is not the book for you. But if you want an uplifting and encouraging book that will show you exactly how to build true wealth and will give you loads of stories from people who have done just that, pick this book up today! Dave knocks it out of the park with Total Money Makeover, and your personal finances could be doing the same very soon.

309 of 335 found the following review helpful:


Generally good advice, if you're really in a financial hole  Feb 04, 2010 By T. Scarillo "music snob"
"The Total Money Makeover" by Dave Ramsey, is the 3rd Edition of his popular book outlining personal finance advice and his "Baby Steps" method of righting your financial ship. I'm assuming that if you actively searched here under his name, you already know who Ramsey is - he and Suze Orman are probably the two most prominent personal-finance show hosts in the US. They have somewhat different styles - both can be pretty blunt to their callers when needed, but Ramsey tends to lean toward advising people to take more-drastic measures to get their debt down (`beans and rice, rice and beans' and his mantra of `Live like no one else, so you can someday Live like no one else') as opposed to Orman's "People first, then money, then things". She's a bit more empathic, but maybe he's a bit more hard-line because, at least from what I've seen (and I've watched both for several years), his audience generally seems to get themselves into bigger financial messes in the first place. If you think you've got it bad, tune into his show (on Fox Business Channel on cable) and you'll hear some REALLY bad stories of situations people have gotten themselves into, that will probably make you feel better about your own finances. Many of the `true stories' contained in the book are of people who got themselves in trouble by: 1) getting married/divorced too young, to/from someone who was as equally inept at handling money; 2) having lots of kids at a very early age (they're expensive, big surprise); and 3) appearing to have no education beyond high school, or majoring in something that is unlikely to yield a living income.

That said, the Ramsey book is a somewhat easy read - it runs around 250 pages, but the print is actually larger than I'd have expected, and the language is pretty colloquial, so it reads pretty quickly and is easy for even the financial newbie to grasp (I read it in around 4 or 5 sittings). The book is a codification of a lot of the advice you'll hear on his show on an ongoing basis if you watch regularly. His strong points are that he's no-nonsense in cutting to the bottom line, and debunking commonly-held `myths' of personal finance. If you're a loyal, diligent watcher of the show, though, this book may be redundant if you've been paying close attention, but for new initiates, it's an informative, if limited-in-scope, read that might provide a jumping off point for further reading. If you're totally behind the 8-ball financially, though, by all means get and read the book, because you've got to start somewhere, but if you've got your act together, and are facing more-advanced issues (such as trusts, estate planning, elder care issues, etc), then really you'd be better off reading Orman's books, which are more substantial and confront the more esoteric/complicated issues of personal finance. I've noticed from watching both, that Ramsey seems to specialize in getting people `back to zero and then on the right path' when they've really dug themselves into a hole (i.e. to get out of debt in the first place) - his advice is basically pretty on-the-mark and keeps it simple (if you're not averse to Bible verses sprinkled in there). I am an accountant, and while I can't say I agree with everything he says (he seems a little TOO wrapped up in the `pay cash for everything' mindset, to the point where I think he's not being realistic about effective ways to use credit in today's world, but I also think his recommendation of a 6-month emergency fund is not enough, given today's rotten economy - you really need 9 mos to a year), the bulk of the info he provides is pretty good (such as the "Debt Snowball" method of attacking your debt), if you can do the most important thing in following it: you need to impose self-discipline to break bad-spending habits. His methods require almost crash-financial-diet measures (such as taking on extra jobs, ceasing any and all unnecessary spending to the point of maybe not having much fun, selling your possessions, etc.), but if you can stick to it, it will probably yield results. There are some simple-to-use worksheets in the book, which you can copy and fill out, to start getting the lay of your finances and create a plan to address problems.

I DO have to say, though, that there were at least two ideas in the book that I heartily disagree with, to the point where I think they're maybe outright bad advice: 1) he says that if you're paying down your debt, you should stop contributing to your 401k plan altogether, even if you're being matched 100% up to a certain amount, in the interest of the psychology of paying the debt - this is questionable advice, because the match is free money that probably works out to an earnings rate far in excess of your interest rates on your debt - on the other hand, if you have oppressive debt, you might be better off paying the debt off, so you need to work the math in `real dollars' on that before you leap; and 2) on pgs. 39-40, he basically dismisses the `worth' of a good FICO score (saying it's an "I Love Debt Score"), and says that ideally you should have NO score - that sounds good on paper, but it's simply not workable in real life, as no bank will loan you money without one, for any purpose - and his entire philosophy is predicated on paying cash for everything, which is much easier said than done (unless you get a 15 year mortgage, which he recommends, but surprise - you'll need a high FICO AND down payment for that). Contrary to what he'd have you believe, it IS possible to have a very high FICO without incurring tons of debt. The FICO stance is where Ramsey and Orman diverge markedly (she preaches the virtues of having a high score, earned by prudent use of credit). And i won't even get into the fact that many prospective employers today WILL check your credit score before offering you a job, and jobs aren't easy to get nowadays in this economy. Nuff said.....

So, in my opinion: if you're REALLY in a hole financially and need to right the ship, then get one of Ramsey's books (this one is a good start); if you've got your act together, and have succeeded in getting out of dire financial straits, check out Suze Orman's books.

125 of 135 found the following review helpful:


Must-read for people with major problems and for those with little debt  Aug 15, 2005 By Jessica Lux
Finally, a book that speaks to everyone, from those who are complete financial disasters to those who pay their bills on time, but overpend and need to reduce their debt load. Too many books about debt focus only on paying your bills on time and reducing your interest rates, while ignoring the people who have too much debt and are too smart about it, never paying a late fee and keeping it all at low interest.

I have never heard Ramsey's radio show, but this book was a huge wake-up call for me. It is motivational and it will get you pumped to get intense about reducing your debt load and living only with the cash you have today. The strategies are excellent, the advice is solid, and people have turned their lives around under Ramsey's guidance. There are a lot of testimonials in this book, perhaps a few too many, but I enjoyed seeing the success stories and seeing the different kinds of people who turned to Ramsey's method.

This book has wide appeal and everyone should check it out once to give their finances a good sanity check.

57 of 59 found the following review helpful:


This book is life changing.  Aug 20, 2005 By Michael De Lazzer "Michael"
This is the first book I've read that thows away the fancy models, throws out all of the crappy advice your broke friends have given you, and simplifies financing down to easy, understandable concepts. This book isn't for people looking to get rich quick. If you're looking for a high-risk big payback scheme, move on. If you're looking to build a financial future based on solid, time-tested concepts, this book will change your life. It shows you a clear path to financial success based on debt reduction, saving, and, believe it or not, giving.

Dave was a millionaire by the time he was 30-years-old. Then he went broke, filed for bankruptcy and had to start over from nothing. His concepts are based on interviews he's done with millionaires and an autopsy on his financial failure. His plan is rooted in very sound financial concepts such as: there is no way to borrow your way to wealth.

He lays out a plan based on simple baby steps that walk with you from your current situation (buried in debt otherwise why are you looking at this review), to retirement with enough money to burn. No matter your income level, mine is quite high, this book will give you a path from debt to wealth.

Here's the catch. This plan requires you to change your habits. IT IS NOT FUN. IT IS NOT EASY. IT CAN BE DOWNRIGHT PAINFUL. But if you put yourself through this plan, within 5 years you will be out of debt, and on a path to some serious wealth. I will be completely debt free with money in the bank and a retirement plan going by June of next year. I can see how I will retire with millions of dollars in the bank. I have financial security for the first time in my life. Dave's plan simply works. Are you fed up with living paycheck to paycheck? Tired of CitiBank? Tired of GM Finance? Buy this book and get intense. Thank me later when you're rich.

See all 896 customer reviews on Amazon.com