Trivium Academy Posted December 30, 2008 Share Posted December 30, 2008 I want to get a money management how to book and I know a lot of you love Dave Ramsey. Is Total Money Makeover the book to get or is there a better title or even possibly a different book/author that I should get. I have a gift card burning in my pocket...lol. I'm clueless when it comes to this stuff. Quote Link to comment Share on other sites More sharing options...
Mandamom Posted December 30, 2008 Share Posted December 30, 2008 I've read several and grew up with the DR way of living before he publlished it and I have to say that it really works. That being said, some do his way very hardcore and are unaccepting of any modifications to the plans, and are better off than those who do not manage their money at all. Things that DR emphasizes: eliminate all debt including student loan and mortgage debt. There is no good debt. live on a budget -- what I think is the most importan thing you do no matter which author you read. create an emergency fund which allows you to live without credit cards. if you have an emergency you tap the fund rather than the handy dandy credit card I've kind of gone blank on my point of this but you might even be able to pick up The Total Money Makeover at the library leaving your gift card available for another purchase :) Quote Link to comment Share on other sites More sharing options...
Trivium Academy Posted December 30, 2008 Author Share Posted December 30, 2008 Unable to get it through the library. :( Thanks for responding! :) Quote Link to comment Share on other sites More sharing options...
Colleen in NS Posted December 30, 2008 Share Posted December 30, 2008 I want to get a money management how to book and I know a lot of you love Dave Ramsey. Is Total Money Makeover the book to get or is there a better title or even possibly a different book/author that I should get. I have a gift card burning in my pocket...lol. I'm clueless when it comes to this stuff. Wealth, Riches, and Money by Earl Pitts and Craig Hill. I knew Earl when I was in YWAM. He's a solid guy. Quote Link to comment Share on other sites More sharing options...
Hillary in KS Posted December 30, 2008 Share Posted December 30, 2008 I think maybe it depends upon what you were looking for? As I understand it, you're in the "getting out of debt, then build a savings" mode, right? If so, his book would definitely be encouraging. I've read TMM and really loved it. Ramsey is very step-by-step methodical. He explains the "Baby Steps," and gives lots of information about how to accomplish each one. His book is filled with examples and positive stories, so it's a very encouraging read. For me, I love a plan. When we were in debt, I really appreciated having a plan. I could visibly measure when we met each goal, and that gave us motivation to continue on. I must say, however, that if you're a regular listener to the program, most of what's in the book you'll also get from his radio show. I appreciated having the information ready and at my fingertips when I wanted it, though, rather than waiting for someone to call with my question. :tongue_smilie: Quote Link to comment Share on other sites More sharing options...
Joanne Posted December 30, 2008 Share Posted December 30, 2008 It's a great book and approach. Whether it's where you should spend your gift card depends on your particular money issues. Quote Link to comment Share on other sites More sharing options...
rafiki Posted December 30, 2008 Share Posted December 30, 2008 . Quote Link to comment Share on other sites More sharing options...
mama2girls Posted December 30, 2008 Share Posted December 30, 2008 We have both Total Money Makeover and Financial Peace. My DH and I love them both and they have really changed the way we think about money. Quote Link to comment Share on other sites More sharing options...
Lori C- Texas Posted December 30, 2008 Share Posted December 30, 2008 We also love Dave. After reading his book it really made us focus! But I agree you can get most of what is in the book from his radio program and now even his TV show! Quote Link to comment Share on other sites More sharing options...
LaxMom Posted December 30, 2008 Share Posted December 30, 2008 We have both Total Money Makeover and Financial Peace. My DH and I love them both and they have really changed the way we think about money. :iagree: Though, if I was going to get just one, it would probably be Financial Peace. The same concepts are in both, but FP has more practical, checklist type of things. Quote Link to comment Share on other sites More sharing options...
phathui5 Posted December 30, 2008 Share Posted December 30, 2008 Unable to get it through the library. :( Thanks for responding! :) What about interlibrary loan? Quote Link to comment Share on other sites More sharing options...
Scarlett Posted December 30, 2008 Share Posted December 30, 2008 I think it is worth the money...especially if you have a gift card. Also check out the free forums at http://www.livinglikenooneelse.com Quote Link to comment Share on other sites More sharing options...
hornblower Posted December 30, 2008 Share Posted December 30, 2008 I like David Bach's stuff more - his website is http://www.finishrich.com/pages/home.php & his books are the Automatic Millionaire series & Start Late, Finish Rich. I think his books for couples are esp. good. I like the quizzes he gets the couples to take separately & then compare answers to see how your goals and values are meshing. It will show quite clearly if you're not on the same page which causes couples a lot of problems with money..... Quote Link to comment Share on other sites More sharing options...
Melmc Posted December 30, 2008 Share Posted December 30, 2008 I bought TMM off the DR website a couple of weeks ago. We're starting the program on the 1st of January. I really like what he has to say. It makes sense and I like the step by step process. We also got Financial Peace Jr. for the three kids. It's not easy though. The $1000 emergency fund got established due to a year end bonus which was a blessing, but coming up with a budget has been so hard. Just when I think I've got it all down, I'll remember something else. But I do think the envelope system will really help us. I usually just use my debit card on everything, but never really keep track of what I'm spending. I think there are lots of different ways so it's whatever calls to you. His just calls to us. Quote Link to comment Share on other sites More sharing options...
Melmc Posted December 30, 2008 Share Posted December 30, 2008 One more thing, all the forms from the book can be downloaded from here: http://www.thebyrdsnest.net/?page_id=20 Much easier than having to copy or make your own! Quote Link to comment Share on other sites More sharing options...
laylamcb Posted December 30, 2008 Share Posted December 30, 2008 My favorite personal finance basics book to share with others is The Wealthy Barber. I've given it as a gift so many times that, really, David Chilton should recognize me in his acknowledgments section. ;) Quote Link to comment Share on other sites More sharing options...
Trivium Academy Posted December 31, 2008 Author Share Posted December 31, 2008 really, David Chilton should recognize me in his acknowledgments section. :lol: Thanks for the laugh! I feel this way about a few books myself! Quote Link to comment Share on other sites More sharing options...
Trivium Academy Posted December 31, 2008 Author Share Posted December 31, 2008 I'm working on paying off my highest interest debt first and I'm unsure if I should ALSO be trying to build a savings or just focus on paying off the debt as fast as possible. I have a hard time trusting money books, esp. when there are promises of wealth if you just follow my program, lol. I need to learn about this stuff so I can maximize what I can do with what I have and set solid goals to work towards. Currently I have no health insurance, 401K or anything and I need them or at least have them in the near distant future b/c I'm not getting any younger. I just don't know how to structure finances to accomplish what is needed plus a little of what is wanted, like affording a vacation or long distance field trips. Quote Link to comment Share on other sites More sharing options...
LaxMom Posted December 31, 2008 Share Posted December 31, 2008 The Ramsey books don't promise wealth. (I don't think any mentioned make the wealth promise) They promise no debt, if you follow the program. One of the things he stresses is it's "simple, not easy". I suspect that the big difference between all of the programs is mostly personality and how they approach the payoff - lowest balance versus highest interest first, etc. There's no magic, just methodical, hard work with a purpose in mind. Whatever method you end up using, that's the key. I know DR would tell you to first get health insurance and, while you're doing that, start an emergency fund of $1000. He points out regularly that, when you start getting debt free, you need that cushion or you're only one emergency away from racking up the credit card debt again. If you have more time to listen than read (like in the car), Total Money Makeover is $7.95 through iTunes. I'm sure some of the others are in there, as well, and may be less than the cost of the book. Quote Link to comment Share on other sites More sharing options...
Colleen in NS Posted December 31, 2008 Share Posted December 31, 2008 I'm working on paying off my highest interest debt first and I'm unsure if I should ALSO be trying to build a savings or just focus on paying off the debt as fast as possible. I have a hard time trusting money books, esp. when there are promises of wealth if you just follow my program, lol. I need to learn about this stuff so I can maximize what I can do with what I have and set solid goals to work towards. Currently I have no health insurance, 401K or anything and I need them or at least have them in the near distant future b/c I'm not getting any younger. I just don't know how to structure finances to accomplish what is needed plus a little of what is wanted, like affording a vacation or long distance field trips. If it were me, I'd prioritize like this: - set in place food, utilities, housing, then.... - obtain health insurance, then.... - pay off all debt (except maybe a mortgage that you might already be in, if it's long term), then.... - build emergency savings, then.... - somehow split saving up for future and saving for the "wants" This is what we did a few years ago (although we have free health care here in Canada). We paid off a huge (to us) debt by cutting EVERYTHING else to the bone. We ate healthily during that time, it was just a very cheap healthily. :) And we had no extra wants while the debt was being paid down and then the savings being built up. It was worth it for the peace of mind. We also learned a lot of valuable skills in frugality that will come in handy for the rest of our lives. Quote Link to comment Share on other sites More sharing options...
Ria Posted December 31, 2008 Share Posted December 31, 2008 We read TMM; our problem was finding a workable and user-friendly budget system. Writing stuff down wasn't working, and messing with Excel was a pain. The envelope system just isn't for us...we wanted something on the computer that we could work with easlily. We ended up purchasing the YNAB Pro software and I can't tell you how pleased we are! http://www.youneedabudget.com/om We've paid off the car loan and are in no debt at all except for the mortgage. We're saving more money each month than I ever thought we could. I'm so encouraged! I know I sound like a commercial, but this really did work for us. We use our credit card instead of a debit card (and pay off the balance in full each month) and this software works fine for that method, too. Ria Quote Link to comment Share on other sites More sharing options...
rafiki Posted December 31, 2008 Share Posted December 31, 2008 . Quote Link to comment Share on other sites More sharing options...
sweetbaby Posted December 31, 2008 Share Posted December 31, 2008 (edited) I had the pleasure of attending a free Dave Ramsey mini-seminar which was given by church members who had completed his regular seminar. They shared with the rest of us what they had learned. Some of my notes... 1. Budget every month 2. 7 Baby Steps a. Keep $1,000 or more in bank for Emergency Fund b. Pay off debt- list your debts in order from smallest to largest with the smallest payoff or balance first. Do not be concerned with interest rates or terms unless two debts have similar payoffs, then list the higher interest debt first. Paying the little debts off first shows you quick feedback and you're more likely to stick to the plan. c. Save or Set aside 3-6 months living expenses (for layoffs etc) d.Invest 15% of income into Roth IRAs and pre-tax retirement e. Start a College Fund f. Pay-off home early g.Build wealth and give 3.Know what types of insurances you carry and make sure you have enough. a. Health b. Term life (should be 8x yearly income) c. Auto d. Homeowners/Renters ( should to have 'replacement' cost) e. Disability f. Identity Theft Insurance (www.zander.com) g. Long Term Care 4. Know what types of investments you have. Don't invest in what you don't understand. a. 401k/403b (taxed after withdrawal) b. Roth IRA (taxed already as interests) c. Watch for insurance investments and stay away from cash value insurance and anything like it. d. Find a trusted friend who can direct you into the right direction (mutual fund/investment co.) 5. Give a. Proverbs 3:9-10 "Honor the Lord with your wealth, with the firstfruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine." b. Tithe til it hurts and be cheerful about it. 6. Get financial guidance. Other notes: Have a Monthly Cash Flow Plan Sheet listing subtotal, total, actually spend and % of take home pay across the top for Charitable Gifts and Savings (Emergency Fund, Retirement Fund, College Fund) Housing (1st Mortgage, 2nd Mortgage. Real Estate Taxes, Homeowners Insurance, Repairs and Maintenance fees, Replacement furniture, Other) Utilities (Electricity, Water, Gas, Phone, Trash, Cable) Food (Grocery, Restaurants) Transportation (Car Payment1, Car Payment2, Gas and Oil, Repairs and Tires, Car Insurance, License and Taxes, Car Replacement) Clothing (Children, Adults, Cleaning/Laundry) Medical/Health (Disability Insurance, Health Insurance, Medical Bills, Dentist, Optometrist, Prescriptions Meds) Personal (Life Insurance, Child Care, Baby Sitter, Toiletries, Cosmetics, Hair Care, Education/Adult, School Tuition, School Supplies, Child Support, Alimony, Subscriptions, Organization Dues, Gifts-including Christmas, Miscellaneous, and BLOW $$) Recreation (Entertainment and Vacation) Debts ( Visa1, Visa2, Mastercard1, Mastercard2, American Express, Discover Card, Gas Card1, Gas Card2, Dept. Store Card1, Dept Store Card2, Finance Co.1, Finance Co.2, Credit Line, Student Loan1, Student Loan2, Other) List grand total of bills at the bottom of the page then list your total household income. Recommended Percentages your income should go towards: Charitable gifts 10-15% Saving 5-10% Housing 25-35% Utilities 5-10% Food 5-15% Transportation 10-15% Clothing 2-7% Medical/Health 5-10% Personal 5-10% Recreation 5-10% Debts 5-10% Write down your Actual and compare it with the Recommended. You could start Spending Sheet should for two weeks. Jot down everything that is spent, even a candy bar, in order to get a picture of outgoings in your home. This was provided FREE to us so I'm passing it along. I hope it helps. http://www.daveramsey.com Edited December 31, 2008 by sweetbaby Quote Link to comment Share on other sites More sharing options...
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