The Total Money Makeover: by Dave Ramsey | Key Takeaways, Analysis & Review: A Proven Plan for Financial Fitness

By IRB Media

This companion to The Total Money Makeover includes:

• Overview of the book

• Important People

• Key Takeaways

• Analysis of Key Takeaways

• and much more!

• Language: English
• Publisher: IRB Media
• Release date: Oct 6, 2015
• ISBN: 9781943427987

IRB Media

With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

Book preview

OVERVIEW

The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey  is a book about how to go from debt ridden to financially secure.

The Total Money Makeover is a formula that consists of seven baby steps to help people reach financial security. The first baby step is to create an emergency fund of $500 to $1,000 so emergencies can be paid for without adding to debt. The second baby step is to pay off all debt, which includes credit cards and loans. This is done by creating a debt snowball by paying off the smallest debt, then the next smallest, and the next until all debt, with the exception of the debtor’s mortgage, is paid.

The third baby step is to create an expanded emergency fund that can cover three to six months of household expenses. This expanded fund is to keep from plunging into debt again if a job is lost, a person becomes disabled, or a person faces an large, unexpected expense, like a hospital bill.  

The fourth baby step is to devote at least 15 percent of household income to a retirement fund. The fifth baby