Tuesday, November 18, 2008

Book Recommendation--The Total Money Makeover by Dave Ramsey

I have just been rereading this book after reading it a few years ago. This really is a must read book for everyone age 16 and older. It explains beautifully how to be financially solvent throughout one's life.

Dave Ramsey outlines what he calls the "Seven baby steps" to financial freedom. His first baby step is starting an emergency fund with $1000 cash.

We learned this principle when my husband was in dental school. We had a pile of dental school student debt but my husband and I both felt strongly about having emergency cash on hand for emergencies only. We had no money but we squeaked by for several months until we had $500 in savings to only be touched for an emergency. So, when our brakes went out on our 1985 Honda Civic, we had the money on hand to fix it. Once we used the money, our top priority was to build it back up once again ,going back to dinner of rice and beans until we had the emergency fund full again. It saved us more than once while in dental school and has continued to so. The emergency fund is a true lifesaver.

Anyway, I won't go into all of his baby steps (read the book) but I can tell you that I can't recommend this book enough.

4 comments:

Carrie said...

Hi Janice!

It was fun to see you (and a lot of the Israel gang) on facebook. You have a darling family. I hope you don't mind if I "blogstalk" a little. It's fun to see us all grown up!

-Carrie

eped said...

I have to say that this guy's radio show rocks!

Janice said...

Eped: I agree. I love his radio show. "You have got a pile of stupid you have to get rid of."

Motherboard said...

I drank the Kool-aide about 2 years ago. I've been a faithful follower ever since!

I love his radio show! My favorite line of his? If you don't prepare your crazy cousins dumb, broke and stupid will move in!