The Total Money Makeover

Library · Personal finance

• Author: Dave Ramsey
• FinSimLab rating: 3/5
• Reading: Easy
• Finance level: Beginner
• Published: 2003

A step-by-step plan to get out of debt, build a cushion and start saving for the long term.

What it covers

Ramsey sets out seven steps in order: a small emergency fund, pay off every debt except the mortgage with the snowball method, complete the emergency fund and then invest. His stance against all debt is strict and debatable in some cases, but the order of priorities is useful for anyone in debt.

What you will learn

• In what order to tackle debts with the snowball method.
• How much to keep in an emergency fund before investing.
• How to build a budget where every dollar has a job.

Who it is for

People with outstanding loans or credit cards who need a clear order to get out.

Concepts

Debt, Emergency fund, Budgeting

What you will not learn

Investment strategy beyond contributing regularly, or when cheap debt can make sense.

Related Academy guides

• Debt avalanche vs snowball: which method eliminates debt faster
• Emergency fund: how much you need and where to keep it
• The 50/30/20 rule: how to budget your money

Put it into practice

• Loan calculator

More personal finance books

• The Richest Man in Babylon
• Your Money or Your Life
• I Will Teach You to Be Rich
• The Millionaire Next Door
• Rich Dad Poor Dad
• Die With Zero

Descriptions written by FinSimLab for educational purposes. They do not summarise the books and are not investment advice.