Thursday, March 26, 2009

Total Money Makeover Take 2

"Live like no one else, so later you can live like no one else."

That's the theme throughout Dave Ramsey's Total Money Makeover book. We need to get our finances in order now, so later we can have the wealth to retire and live like no one else. And the first step is to recognize the biggest problem in our financial lives: ourselves! Take a good look in the mirror and begin to admit that any financial problems you might face, any debt you might be in, is your fault. No one elses. Once you can admit that, you can move on to Dave's 7 baby steps to financial freedom. But more about that later.

All throughout Dave's book he debunks money myths that we all hear:

$ It's best to have a mortgage so you can have a tax write off

$ You need to have some debt so that you can "build credit"

$ Everyone has a car's just what you do. I'll always have one

$ Leasing a car is a good idea, especially if you own your own business

$ Credit cards are great for emergencies

And there are many more! Some of these I'll go into further detail about, but it's really worth it to buy this book and have it for yourself. There are financial tables, charts, outlines...all sorts of great things to help you take control of your money and not let it control you.

Don't try to keep up with the Jones's...the Jones's are broke! Don't listen to your friends when they laugh at the beat up car you're driving...they're idiots! His sarcastic, smart-alick, remarks will keep you laughing, but his book is also very biblically based. He uses bible verses all througout to make his points even more real.

So just what is wealth?? When your money is working harder than you are, then you are trully wealthy. When you can live off of your 8% interest from your investment income, then you'll have it made. And this book isn't all about "getting rich quick." It's about working hard, recognizing that God does NOT approve of our debt (no matter what society and our culture may say), that we are called to be good stewards of what God gives us, and working towards having a future retirement. Because if you're counting on Social Insecurity to be around when it's time to retire, you'll be living off a nice diet of Alpo along with your dogs (another sarcastic Dave remark).

More to come later! I want to share how he busts some of these money myths and also give you some AMAZING mathamatical calculations that will show you just how much you car payment is actually costing you. Lots of this is stuff we all learn in school, but this book really helps it hit home. I know it did for me and Dean. I loved being slapped around by the truthfulness and reality in this book. Not to mention God really spoke to both of us regarding some of these "myths" that we've fallen prey to!

more later!



Derek and Katie said...

Ha! Keep'em comming Tori. Your making me wanna go read this book!

Debbie said...

I loved this book when I read it. Most of it I had heard from my Dad who somehow managed to raise 12 kids on 1 salary, so you know ideas he gives work!


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