Dave Ramsey?

Question

Dave Ramsey's "Total Money Makeover"?
Have you read his book or followed his advice and if so, has it helped? And how could you apply it if you are in the middle of a bankruptcy- I have no choice.

Answer 1

I haven't read through all of it, but I listen to his podcasts regularly and am following his plan.

Essentially, Ramsey's teaching have been around for a long time. Look at other financial books and you'll see a lot of the same stuff.

So what's the secret?
The power of Ramsey's "baby steps" is that they're simple, and they provide you with quick psychological wins that reinforce your desire to continue to the next steps.

We're doing them now and they're working for us. So far we've paid $20,000+ in debt over the last 8 months, and put aside an emergency fund (and we're far from making big bucks)

For those of you that don't know what we're talking about, here are the steps to debt freedom and wealth building that Ramsey promotes. I've added some well needed pre-steps as well.
If you do these steps - you won't only get out of debt, you'll get really rich too. Can you do it?

Pre-steps
-get current on your CC and other debts - that means at least be paying minimums up to current month
-but stop paying extra on all your debts too, including extra mortgage payments (we were doing this one)
-do a simple budget to spend less and save more. This means temporarily stopping spending on wants like going out to dinner, shopping, the movies, etc.
-stop contributing to retirement (like 401Ks) temporarily or any other savings or investment accounts (we had some little savings accounts for our kids that we stopped contributing to too)
After this, you'll be amazed how much money you can gather to create your "debt snowball"

Then (in sequence)
1. Put $1,000 into a savings or MM account as an emergency fund (EF).

2. Sort all your debts from smallest to largest. Pay the minimum on each debt except the smallest one. That one you attack with all the money you've scraped up (except for your 1,000 EF money and your necessities (food, shelter, trasportation)).

Once you've paid the smallest, use what your were just paying on the first one to get rid of it, plus the second debt's minimum payment to attack the second debt. This is known as the "debt snowball" as it keeps getting bigger as you go (like rolling a snowball big enough to make a snow man). Keep it going until all your smallest debt are paid. Living frugally is key, during this period. Then tackle the big ones like the cars, school loans, second mortgages. Again, from smallest to largest.

3. Now beef up your $1000 EF to 3-6 months of expenses (not income)

4. Next, resinstate future and retirement investing to at least 15% (1st match your companies IRA contribution, and then put the rest of the 15% into a Roth IRA - check with your bank on this.)

5. Invest in college funds for the kids if you have them

6. Pay off the home early (make sure to send separate payments marked "apply to principle" to make sure your bank applies it properly)

7. Build more investments (growth and diversified Mutual Funds, buying a rental property, investing small businesses) and retirement wealth (we're aiming for 25% of our income at least on this) and start giving what you can. (give to charities you believe in that give at least 80% directly to the needy, and give to your elderly family, like your grandparents if they need it)

I know this is a lot to digest - but really works. We're going to be millionaires. I hope the same for you!

Good luck!

Answer 2

hi! we had not MAJOR debt, but were in a huge house & wracking up some pretty hefty expenses. we got the book, followed the instructions, and live in a nice but affordable house (we're not "house poor" anymore) and are debt-free except for the mortgage, which we're working on. We celebrated each step--debt free, emergency fund, etc. It will change your view of finances and even though it seems like rules at first, it's actually QUITE FREEING! even if you have to continue with the bankruptcy thing (which, do what you gotta do, OK?) you ought to read it so that you can start over again the right way. to us, it changed our lives. we even refer to times in our lives as "before dave ramsey" or "after dave ramsey" !!!

Answer 3

i admire him! I unquestionably have examine Orman, Dayton, etc. I unquestionably have listened to 3 distinctive interior of sight financial advisers on debt, making an investment & budgeting and that they do no longer touch what Ramsey does (they weren't his ELPs- this become in the previous I knew approximately Ramsey). Orman is a good distance too technical, Dayton says the comparable element Ramsey says yet is purely too severe high quality (i admire Dayton, examine him in the previous Ramsey yet his books did no longer inspire me like Ramsey.) he's the 1st financial consultant that lays out a funds in elementary words and the why at the back of it. i admire Ramsey's no nonesense, do purely it suggestions-set. i admire the reality he's mushy to callers that choose it and gives you a sturdy fast kick interior the pants while the caller desires it. I unquestionably have been by FPU, a stay journey and look at the whole funds makeover. i want to propose any and all his products to everyne i be attentive to. i won't be able to look ahead to the day we "qualify" to bypass to wealth coach stay!

Answer 4

my cousin did it. she went strictly by the book. she now owns her own home, no car note, she seems to be doing well...she also went to local meetings in town for the money makeover.