Wednesday, November 14, 2007

The Total Money Makeover

I recently started reading "The Total Money Makeover" by Dave Ramsey. It was recommended to me by a leader in my business. Jeff said that our company had given it to the top leaders to read, and that he recommended it to everyone. It's a book that contains a lot of common sense, but also a plan for how to pay off debt and secure your financial future.

Last year at this time, I don't know if I would have been ready for this book. But over the past year, I have started to envision becoming financially free. I can truly see paying off car loans, student loans, and eventually our mortgage as well. Last year at this time, this probably would've sounded crazy to me. But I've seen that it can actually happen. I have friends in my business doing it, and I know I will be soon as well.

And I believe anyone can do the same. I definitely agree with Dave on several points. One, debt has become so common that we hardly blink when we take out a loan for something. We Americans tend to buy, buy, buy without thinking about the consequences. 90 days interest free, and we buy it. Bonus points, cash back, new credit card offers... the temptations are everywhere. Dave talks about how important it is that we stop using credit cards and use cash or your debit card instead.

Another point he talks about is paying down debt using the "snowball" method. He basically says to take everything you can and start paying off your smallest debt. Then add that payment to the next highest debt, etc. I am excited to start this and have already figured out how we can get rid of our non-mortgage debt in the next 2-3 years. I don't want to try and summarize his whole program in a few paragraphs, so I recommend you buy the book. I got it off of and actually got an additional discount thanks to my business.

If you decide to get the book, let me know. I'd love to know what you think!