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What about Dave Ramsey’s performance did you like? Metaphors used to describe steps or missteps are very memorable and applicable to most people. What was one of the most memorable moments of The Total Money Makeover?
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Gets to the point, gives good metaphors and easy to follow. Where does The Total Money Makeover rank among all the audiobooks you’ve listened to so far? Although his message may come across as simple, in my opinion it does a far better job taking into account human nature than any of the sophisticated financial and economic models I spent so much money learning. Trying this the Ramsey way, I already feel like I'm making progress and am motivated to do more. If I tried to pay it off first, I wouldn't see any impact on my cash flow for probably 14 years, making it discouraging to try to find extra dollars to put towards paying down debt. My larger student loan is the size and duration of a mortgage, and I'll treat it like it's one. Although that will cost me some in NPV, it means I can pay off my car loan in a few months (freeing up $250 per month in cash flow), and can pay off my smaller student loan in a few years. After listening to Ramsey, I'm going to do it in the opposite order.
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If I were to approach this according to the pure net present value financial principles taught in school, I would start with my big student loan (highest interest rate), then my smaller student loan, then my car loan (lowest interest rate). Furthermore, I have a better plan for paying down my debts. for next month's rent), and how much disposable income I have in my current checking account. for a wedding in the fall), how much will go to short-term savings (e.g. I know how much of each paycheck will get immediately transferred into long-term savings (e.g. Now, I have an Excel spreadsheet with a separate column for each upcoming pay check. After re-listening to The Total Money Makeover, I got a second savings account to hold my emergency fund and long-term savings, making it easier to separate between current accounts and short-term savings. Before, I always felt at a loss when it came to budgeting. Now, with a steady income (and some monstrous student loans) the lessons are relevant, actionable, and empowering. The first two times, I was still in school and had no income, so felt powerless to act on its lessons. I recently listed to The Total Money Makeover for the third time and it clicked. I have business degrees from Wharton (BS) and Stanford (MBA), but like most Americans from middle class backgrounds, I never got much training in personal finance and always felt bewildered by it. Those 4 books are fantastic reads for beginners aiming for financial freedom and early retirement. Stanley, Learn to Earn by Peter Lynch, and The Compound Effect by Darren Hardy. Some books that are MUCH more valuable reads are: Rich Dad, Poor Dad by Robert Kiyosaki, 4-Hour work week by Timothy Ferris, The Millionaire Next Door by Thomas J. Wish I could get a refund for this radio host's opinion. This book also has religious references and ridiculous, juvenile voice impressions that don't add any value to the points he is trying to make. This book might give you perspective to spend less and be more financially responsible, but this isn't a "money makeover" and it certainly won't help you get rich one day or help you retire. His interpretation of financial literacy is really about financial responsibility (not overspending on objects like cars, gadgets, and clothes). This man speaks from a view of once being bankrupt and scared to ever go into debt. (very subjective to reason and not correct) - Never go into debt except for a mortgage (also very stupid if you plan to ever retire rich without a high paying job) - Claims that successful businesses like Microsoft don't use debt (completely false, every major corporation utilizes debt to grow profits and equity) - Consolidating debt is always bad and only has "cons" (consolidation is common in the corporate world and is only a tool to reduce interest rates on debts, but apparently ALL debts are bad, according to this idiot). Never use credit cards, lines of credit, etc. (fair point, but common sense!!!) Okay, so here are some of the dumb things this person says in this book which are a bunch of BS: - Pay off smallest debts before larger debts, regardless of interest rates (doesn't make financial sense). Get out of debt and STAY out of debt (WRONG) 2) Be frugal, especially early in life, like owning a $4000 car instead of a $20,000 car. This book is summarized by 2 main points: 1) ALL debt is bad. This book will not make you rich and it will not make you retire earlier. This book is written for someone that is financially irresponsible and cannot handle their spending, not for someone trying to become financially literate. My mind is blown away how this book has such good reviews and people consider this a "must read".