If you will live like no one else, later you can live like no one else.
Build up your money muscles with America's favorite finance coach.
Okay, folks, do you want to turn those fat and flabby expenses into a well-toned budget? Do you want to transform your sad and skinny little bank account into a bulked-up cash machine? Then get with the program, people. There's one sure way to whip your finances into shape, and that's with The Total Money Makeover Revised 3rd Edition!
By now, you've heard all the nutty get-rich-quick schemes, the fiscal diet fads that leave you with a lot of kooky ideas but not a penny in your pocket. Hey, if you’re tired of the lies and sick of the false promises, then take a look at this—it’s the simplest, most straight-forward game plan for completely making over your money habits. And it’s based on results, not pie-in-the-sky fantasies. WithThe Total Money Makeover Revised 3rd Edition, you'll be able to:
- Design a sure-fire plan for paying off all debt—meaning cars, houses, everything
- Recognize the 10 most dangerous money myths (these will kill you)
- Secure a big, fat nest egg for emergencies and retirement!
Where Financial Peace gave you the solid saving and investing principles, this book puts those principles into practice. You’ll be exercising your financial strength every day and quickly freeing yourself of worry, stress, and debt—and that’s a beautiful feeling.
The Total Money Makeover Revised 3rd Edition—complete with additional material and new personal success stories—is the one financial workout that guaranteeseverything will work out.
The TOTAL MONEY MAKEOVER
A Proven Plan for Financial FitnessBy Dave RamseyThomas Nelson
Copyright © 2009 Dave Ramsey
All right reserved.ISBN: 978-1-59555-078-1Contents
Introduction..................................................................................ixWhat This Book Is NOT.........................................................................xiiiFlying Turkeys and Skinny Dipping.............................................................xix1. The Total Money Makeover Challenge.........................................................12. Denial: I'm Not That Out of Shape..........................................................93. Debt Myths: Debt Is (Not) a Tool...........................................................174. Money Myths: The (Non)Secrets of the Rich..................................................525. Two More Hurdles: Ignorance and Keeping Up with the Joneses................................776. Save $1,000 Fast: Walk Before You Run......................................................937. The Debt Snowball: Lose Weight Fast, Really................................................1098. Finish the Emergency Fund: Kick Murphy Out.................................................1339. Maximize Retirement Investing: Be Financially Healthy for Life.............................15110. College Funding: Make Sure the Kids Are Fit Too...........................................16811. Pay Off the Home Mortgage: Be Ultrafit....................................................18312. Build Wealth Like Crazy: Arnold Schwarzedollar, Mr. Universe of Money.....................20313. Live Like No One Else.....................................................................219Meet The Winners of The Total Money Makeover Challenge........................................225About the Author..............................................................................229Budgeting Forms...............................................................................231Index.........................................................................................251
Chapter One
The Total Money Makeover Challenge
"As lost as a ball in tall weeds!" That is exactly how I felt. Although it was twenty years ago, I can still taste the emotion as if it were yesterday. Out of control, lost, no sense of power, I felt dread creep across the room like the afternoon shadows on a cold winter's day. Sitting again at the kitchen table with too much month left at the end of the money, I was not having fun. This "adult" stuff where a wife looks to you to provide and kids expect to be fed and kept warm was not exactly working. I didn't feel like some powerful adult; instead, there was a little boy inside me who was very afraid-afraid of this month's bills, afraid of this month's mortgage, and absolutely terrified when I considered the future. How was I to send kids to college, retire, enjoy life, and not live at the edge of money worries?
The "Normal" American Family
It seemed every month I sat at that same table with the same worries, fears, and problems. I had too much debt, too little savings, and no sense of control over my life. No matter how hard I worked, it seemed I couldn't win. I was to forever be slave to some banker, to the government, and to the "needs" of my family. When Sharon and I "talked" about money, we ended up in a fight, leaving her feeling afraid and me feeling inadequate. The next car purchase, the next house, the kids' college-our entire future seemed out of reach.
I didn't need a get-rich-quick guy to pump me up or tell me to be positive. I didn't need a secret formula to riches. I wasn't afraid of hard work or sacrifice. I didn't want to "feel" my way into being "positive." I was positive of only one thing: I was sick and tired of being sick and tired. I was tired of sitting down to "do the bills" and having a heaviness come over me. The hopelessness was overwhelming. I felt like a gerbil in a wheel-run, run, run, no traction, no ground covered; maybe life was just a financial illusion. All the money came in, all the money went out, and only the names were changed to protect the innocent. I owe, I owe, so off to work I go. You know the drill and all the clichs that go with the drill.
Oh, some months everything seemed to work, and I thought maybe we were going to be okay. I could tell myself then, "Oh well, this is how everyone lives." Those times offered enough wiggle room that I could continue to lie to myself that we were making headway, but deep down, I knew we weren't.
I Did It My Way, and My Way Wasn't Working
ENOUGH! THIS STINKS! I finally decided that this nonplan wasn't working. If you have ever had any of those feelings, you are going to love this book, and, more important, you will love your Total Money Makeover.
More than 20 years ago, my wife, Sharon, and I went broke. We lost everything due to my stupidity in handling money, or not handling it, as the case may be. Hitting bottom and hitting it hard was the worst thing that ever happened to me and the best thing that ever happened to me.
We started with nothing, but by the time I was twenty-six years old, we held real estate worth over $4 million. I was good at real estate, but I was better at borrowing money. Even though I had become a millionaire, I had built a house of cards. The short version of the story is that we went through financial hell and lost everything over a three-year period of time. We were sued, foreclosed on, and, finally, with a brand-new baby and a toddler, we were bankrupt. Scared doesn't begin to cover it. Crushed comes close, but we held on to each other and decided we needed a change.
So after losing everything, I went on a quest, a quest to find out how money really works, how I could get control of it, and how I could have confidence in handling it. I read everything I could get my hands on. I interviewed older rich people, people who made money and kept it. That quest led me to a really, really uncomfortable place-my mirror. I came to realize that my money problems, worries, and shortages largely began and ended with the person in my mirror. I realized also that if I could learn to manage the character I shaved with every morning, I could win at money. That quest, the one that ended with me staring at myself in the mirror, led me on a new journey over the last twenty years: the journey of helping others, literally millions of others, take that same quest to the mirror. Live Events, Financial Peace University, The Dave Ramsey Show (talk radio and TV show), and the New York Times best-sellers Financial Peace, More Than Enough, and The Total Money Makeover have enabled me to tell millions of Americans what I have learned-the hard way-about money.
The Big Challenge: Find a Mirror
I have a challenge for you. Are you ready to take on the guy or gal in your mirror? If you are, you are ready to win. I rediscovered God's and Grandma's simple way of handling money. Wealth building isn't rocket science, which is a good thing for me (and probably you). Winning at money is 80 percent behavior and 20 percent head knowledge. What to do isn't the problem; doing it is. Most of us know what to do, but we just don't do it. If I can control the guy in the mirror, I can be skinny and rich. We will let other books work on the skinny, and I will help you with the rich part. No, there are no...
