★ Rockstar Book Review: "The Total Money Makeover"

This is part of our Rockstar Book Review series. Be sure to check out all previous books we’ve covered!

"The Total Money Makeover" by Dave Ramsey

Who it’s for: Anyone who has debt and is looking for both the motivation and the system they need to get it paid off.

Readability: HIGH. Ramsey's writing style, the book's clear objectives and organization, larger font size and the success stories it contains make it an easy read, despite clocking in at 200 pages. What I liked about it: Ramsey's TTMM offers a no-nonsense approach for household money management. His instructions are clear, as is the rationale for his recommendations. Dave takes the reader through his plan, baby step by baby step, from denial all the way to financial security, debunking money myths along the way. I also like that the advice he covers in this book is supported by a daily radio show that takes caller questions and shares success stories from families who have successfully become debt-free as a result of his program. What I didn’t like about it: The book is preachy in all senses of the word* (though he does offer a warning about that fact right up front) and includes tenets that few would appreciate, such as renouncing the use of credit cards, dismissing the value of a credit score and a strong focus on home ownership. I also dislike the lack of information about fee-only advisors and the strong focus on mutual funds vs. lower cost options, not to mention the stated belief that a steady 12% return is a realistic return for most investors, or even as a total market return, making it possible to live off 8% of the total investment base annually! *Ramsey's start in publishing was with a book called "Financial Peace." His marketing is strong with Church groups in North America, with many congregations supporting his program (including its strong focus on tithing, of course).

Find it @ Amazon for $14.99 || Free at the library :)

"The Total Money Makeover" - Solid Advice for Those of Us Who Seek Financial Security

The author is a straight shooter. Right from the start, he makes it clear what the book is and what it is not. He also acknowledges that there's something in it to offend just about anyone. I find that quite refreshing. Dave also writes as he speaks, which means that anyone who likes his style is likely to find this book entertaining. Here's an example:

Change is painful. Few people have the courage to seek out change. Most people won't change until the pain of where they are exceeds the pain of change. When it comes to money, we can be like the toddler in a soiled diaper. (pg. 14)

Beyond its edutainment value, TTMM is first and foremost a how-to type book, taking a reader through the stages of financial management from reality check to true financial wellbeing, often using physical fitness as a metaphor and real life success stories to help convince readers that financial freedom is achievable. This well-known Ramsey quote sums it up nicely:

If you will live like no one else, later you can live like no one else. (pg. 5)

The 10 Steps of "The Challenge"

The following are the steps you'll find explained and supported in this book, which he calls "The Challenge" and which are in line with his now-famous Baby Steps:

Addressing Denial
Rethinking Consumerism (a.k.a. addressing the need to "Keep Up with the Joneses")
Building a $1,000 Emergency Fund (Baby Step #1)
Eliminating Consumer Debt ("The Debt Snowball" a.k.a. Baby Step #2)
Building an Emergency Fund of 3-6 Months of Expenses (Baby Step #3)
Investing in Retirement Savings (Baby Step #4)
Saving for Kids' College Fund (Baby Step #5)
Paying off the Mortgage (Baby Step #6)
Building Greater Wealth & Prosperity (Baby Step #7)
Reaching the Pinnacle Point (ability to live off 8% of the household nest egg)

The steps and the advice listed above are sound for the most part (I've already noted some objections in the summary above). Anyone who follows this advice will find themselves well ahead of the Western norm for household financial management.

[I]f the Joneses (all the broke people) think you are cool, you are heading the wrong way. If they think you are crazy, you are probably on the right track. (pg. 100)

The Bottom Line

I would recommend this book for anyone who carries any amount of consumer debt. Its message is powerful and persuasive, and is supported by worksheets and other motivational tools. It offers everything we need to convince ourselves to take and sustain real action.

Where you can find the book: Amazon ($14.99) Where you can find the author: DaveRamsey.com

For other books in this genre, I would suggest "I Will Teach You to Be Rich" by Ramit Sethi, "Dear Debt" by Melanie Lockert, "Your Money or Your Life" by Vicki Robin and Joe Dominguez, "The Automatic Millionaire" by David Bach and "The Wealthy Barber" by David Chilton. ****** All book reviews include affiliate links to Amazon.com or other places they're sold. Thank you to all those who support our site by going through these links!