If there was ever a financial guru whose advice could be taken in any financial environment and still be considered sound, it is Dave Ramsey. For years through radio, TV, and as a bestselling author, Dave Ramsey has espoused the traditional values of living within your means, personal responsibility for saving, and building wealth slowly but surely.
One of his catchphrases, “If you will live like no one else, later you can live like no one else” should have been taken to heart by the geniuses who got the entire nation into the housing crisis of 2008. However, if all of those people who had bought into those horrible mortgage packages had taken this advice, the crisis could have been averted there, as well.
The Total Money Makeover has to be the crux of Dave Ramsey’s work. All of his financial philosophy is summed up in this book, and its advice rings true no matter what the larger market looks like. The Total Money Makeover works for the unemployed and the employed. The rich and the poor. The old and the young. Those who forgot to save for retirement and those who have been dutifully saving for years. Those who had their savings and lives rocked by an unexpected emergency, and those who have been living the life of Riley.
The main philosophy of The Total Money Makeover comes down to the following points:
Personal responsibility
The social programs set up in the past might have been good in the past, but they do not work today. Depending on Social Security is a one way ticket to financial ruin. Medicare is not to be trusted, either. People should become self insured, and the Total Money Makeover gives the process to becoming dependent only on oneself.
Becoming self insured is not a privilege that only an elite few get to have. With proper saving and budgeting, everyone can live a fully financially independent life style.
Getting rid of bad advice that keeps you broke
Car payments are a fact of life? Not at all. Mortgage payments until you retire? No, sir. The Lotto is something to spend just a few dollars on each week, because who cares about those few dollars? No; the Lotto is a poor tax, and with all the taxes you already pay, you do not need to pay another one.
There are so many false claims and limiting beliefs put on the average person by billion dollar marketing campaigns that the majority of people end up thinking that there is no way out of debt and high interest payments to companies. The Total Money Makeover turns this thinking on its head.
Credit card companies and automobile lenders can not get rich without selling you certain things, like buying a car you can not afford, or that you “deserve” all the luxuries of life right now, before you have the income to support or justify indulging those cravings.
You can certainly have all the luxuries of life, but there is a way to do it without going completely broke and putting your hard earned money, assets, and family at risk. This is what the Total Money Makeover is all about.
There is a way out
People who have made financial mistakes in the past often feel overwhelmed, confused, disappointed in themselves. They are no longer providers in their family, but takers, and this is often the blow that cuts the most.
The Total Money Makeover is there to show you that no matter how badly you have messed up in the past, there is always a way out, and you do not have to subject yourself to the underbelly of the debt industry to get out.
Financial philosophies are no good unless they work for the least financially able among us. This is where the Total Money Makeover shines the brightest, and it is the reason that the book remains a best seller to this day, with updated versions flying off the shelves. The Total Money Makeover works for those in awful financial situations. It gives people hope and a plan – neither means anything without the other.
Financial health is not complete unless total health in complete
The final large idea in the Total Money Makeover is what the actual use of money is, the reason that we should go through all of the admittedly difficult steps to keep ourselves financially healthy. It is not to stop the calls of creditors, or the weight of debt, although these things are good.
The purpose of being financially healthy is to be totally healthy. To be able to live freely. To have fun, to invest, and to give.
Money is no good if it is not used correctly after it is obtained. And after you have gone through the difficult steps to make yourself financially healthy, you deserve to know how to use the money that you have. The Total Money Makeover takes you all the way to success, and beyond.
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This post was contributed by Matt, a Dave Ramsey fan and writer for one of Australia’s leading websites offering an impartial comparison of credit cards from all the leading banks. If you want to follow Dave’s advice and get out of debt, check out the balance transfer deals currently available for English consumers.