Introduction
If you’ve ever struggled with debt or felt like your money is controlling you, you’ve probably heard of The Total Money Makeover by Dave Ramsey. It’s one of the most popular personal finance books in the world, selling millions of copies and inspiring countless people to get out of debt and build wealth.
In this post, I’ll share my honest review of the book, what I loved, what I didn’t agree with, and the key lessons you can apply right away.
What is The Total Money Makeover About?
The book is built around Dave Ramsey’s 7 Baby Steps — a simple plan to take control of your money, pay off debt, and build wealth. Ramsey’s philosophy is based on living debt-free, budgeting every dollar, and building long-term financial security.
The 7 Baby Steps (Key Lessons)
1. Save $1,000 for a Starter Emergency Fund
Life happens—cars break down, medical bills pop up. Ramsey emphasizes starting with a $1,000 safety net to avoid going further into debt.
👉 Takeaway: Even if you’re starting small, having a cushion helps you feel more in control.
2. Pay Off All Debt (Except the House) Using the Debt Snowball
Ramsey is famous for the debt snowball method: paying off your smallest debts first, then rolling that payment into the next largest. This builds momentum and motivation.
👉 Takeaway: This method focuses on behavior, not math—and it works for most people who need quick wins.
3. Build a Fully Funded Emergency Fund (3–6 Months of Expenses)
Once debt is gone, Ramsey advises saving enough to cover 3–6 months of expenses. This protects you from life’s bigger surprises like job loss or health issues.
👉 Takeaway: Peace of mind is priceless—this is your safety net.
4. Invest 15% of Income in Retirement Accounts
Ramsey encourages investing consistently in retirement accounts like 401(k)s and IRAs.
👉 Takeaway: Start early, invest consistently, and let compounding work for you.
5. Save for Your Children’s College Fund
If you have kids, Ramsey suggests preparing for their future to help them avoid student debt.
👉 Takeaway: Even small, consistent savings for education add up over time.
6. Pay Off Your Home Early
Ramsey is firmly anti-debt—even for mortgages. He suggests working to pay off your house as soon as possible.
👉 Takeaway: Imagine the freedom of owning your home outright.
7. Build Wealth and Give Generously
The final step: once you’re debt-free and financially secure, focus on building wealth and giving back to others.
👉 Takeaway: Financial freedom isn’t just about security—it’s about generosity.
What I Liked About the Book
✅ Clear, step-by-step plan (no confusion).
✅ Motivating real-life success stories.
✅ Focuses on behavior, not just numbers.
What I Didn’t Agree With
❌ Ramsey discourages almost all credit card use—even for those who can manage responsibly.
❌ His investment advice is basic and doesn’t dive deep into diversification.
❌ Some may find his tone too strict.
Who Should Read This Book?
This book is perfect if you are:
- Struggling with debt and need a simple, proven plan
- Looking for motivation and accountability
- A beginner in personal finance who feels overwhelmed
If you’re already advanced in investing or debt-free, you may find the book too basic—but it’s still inspiring.
Final Verdict
The Total Money Makeover is one of the best personal finance books for beginners. While you don’t have to follow every rule to the letter, the 7 Baby Steps provide a solid foundation for financial health.
👉 My Rating: ⭐⭐⭐⭐☆ (4/5)
👉 Worth reading if you want to start your debt-free journey today.
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