My Top 10 Key Takeaways From: The Total Money Makeover by Dave Ramsey

What is Harder; Making money or retaining wealth?

Both can be pretty difficult for sure.

Honestly, I didn't have a clue how crucial financial knowledge and understanding are.

If you'd asked me a few years back, I would have told you the hardest part was making money. But in truth, with all the endless possibilities of this time - the internet, and the innovations in Ai technologies, I take it back.

I think this is the easiest time to make money.

However, the true test comes after you've made some cash.
I talked about this in my last book review The Psychology of Money by Morgan Housel. Here Morgan Housel talks about how our ability to maintain wealth is more of psychology than intelligence. You can read the full review here.

Today though, I'll be leaning more toward the direction of financial freedom in its entirety. I will be sharing with you my Top 10 Key Takeaways from The Total Money Makeover by Dave Ramsey.

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About The Total Money Makeover

If you're looking for a step-by-step guide to achieving financial freedom, "The Total Money Makeover" by Dave Ramsey is definitely worth checking out.

Ramsey is a personal finance expert and radio host who has helped millions of people take control of their finances, and his book offers a practical and actionable plan for doing just that.

The book is divided into nine chapters, each focusing on a distinct topic of personal finance. Ramsey does not sugarcoat the hard work required to reach financial freedom, but he does provide lots of encouragement and practical advice on how to get there.

Ultimately, the book is all about taking action.

Ramsey's seven-step strategy serves as the book's foundation, and he emphasizes the importance of following it. He also provides plenty of tips for overcoming common financial roadblocks, such as debt and keeping up with the Joneses.

"The Complete Money Makeover" was a refreshing and practical approach to personal finance for me. It is not a get-rich-quick plan, but rather a strong basis for long-term financial success.

Whether you're just starting to take control of your finances or are a seasoned pro, this book has a lot to offer.

Here are my Top 10 Takeaways From The Total Money Makeover:

#1 Take responsibility for your financial situation

This means acknowledging where you stand financially and being willing to make changes to improve your situation. It also means taking charge of your finances and devising a plan for how you will spend and save it.

#2 Get out of debt as quickly as possible

Ramsey emphasizes the importance of becoming debt-free, as debt can be a major roadblock to achieving financial freedom. He recommends using the debt snowball method, which involves paying off your smallest debts first and then using the money you were paying toward those debts to pay off larger debts.

#3 Build an emergency fund

An emergency fund is a critical part of any financial plan, as it can help protect you from unexpected expenses, such as medical bills or car repairs. Ramsey recommends saving up 3-6 months' worth of expenses in an emergency fund.

#4 Live below your means

This means spending less money than you earn and being intentional about how you spend your money. Ramsey recommends creating a budget and sticking to it, and being willing to make sacrifices in the short term in order to achieve your long-term financial goals.

#5 Avoid car payments

One of the biggest expenses for many people is car payments. Ramsey recommends buying used cars that are reliable and affordable and avoiding the temptation to upgrade to a newer or more expensive car.

#6 Plan for retirement

Saving for retirement is a critical part of any financial plan, and Ramsey recommends starting as early as possible. He also emphasizes the importance of taking advantage of employer-sponsored retirement plans, such as 401(k)s, if they are available.

#7 Buy a home you can afford

Buying a house can be a major financial decision, and Ramsey recommends being conservative when it comes to buying a home. He recommends buying a home that you can comfortably afford, rather than stretching yourself too thin.

#8 Avoid debt consolidation and other quick fixes.

Ramsey cautions against quick fixes, such as debt consolidation or taking out a loan to pay off debt. Instead, he recommends sticking to a long-term plan and being willing to make sacrifices in order to achieve your financial goals.

#9 Give generously

Ramsey believes in the power of giving back and recommends giving a portion of your income to charity or other causes that you believe in. He believes that giving can be an important part of living a purposeful and fulfilling life.

#10 Stay committed to the seven-step plan

Ramsey outlines a seven-step plan for achieving financial freedom and emphasizes the importance of sticking to the plan in order to achieve your goals. He acknowledges that achieving financial freedom takes time and effort, but believes that anyone can do it by following his plan.

There you have it!

I hope you got a thing or two from my takeaways.