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A review by inkerly
The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey
4.0
The first financial book that I ever read was Robert Kiyosaki's "Rich Dad Poor Dad", so it's safe to say I didn't go into this book with bright hopes. Kiyosaki and Ramsey are both very well known, very well off financial coaches who at times preach the opposite things when it comes to financial peace and dealing with debt. But I unfortunately did not have a lucky hand throughout my college career, and despite knowing the dangers of consumer debt, I still wound up with much student loan debt, so I picked up Dave Ramsey's book to get a different perspective.
This book didn't disappoint. It takes you through his famous 7 Step Plan to Eradicate Debt and Build Wealth -- from creating a starter emergency fund to paying off your home early and investing in growth mutual funds. I'm already a follower of the Boglehead's Guide to Investing, so Ramsey's investing advice did not really "click" with me --- for his readers, I don't think his advice to just pick up growth mutual funds for long term gains will be received adequately. But I do think that his debt advice is solid, and the plan is decent. What would have been better is if each chapter was named after the steps, so I could wade through all the sob stories and extra book fluff and just get to the tips, but alas! At least he doesn't peddle his Financial Peace University tool every 5 pages.
So what do I think of the Dave Ramsey methodology compared to Robert Kiyosaki's?
I see it as Dave Ramsey's advice is great for the average Joe Schmoe who doesn't know much about how to manage money, or most importantly curb debt. His advice is more practical. Robert Kiyosaki's advice on other hand, feels good for the long term --- for people who have stable incomes, who know what it is they want, and who want to BUILD WEALTH. I often joke to myself that I had Kiyosaki's mindset with a Ramsey portfolio during college because I had so much debt, that "Starting my own business" was a feat that wouldn't change my debt situation overnight or give me the psychological motivation I needed to keep pushing. I think where I'm at, I can incorporate both of their philosophies.
This book didn't disappoint. It takes you through his famous 7 Step Plan to Eradicate Debt and Build Wealth -- from creating a starter emergency fund to paying off your home early and investing in growth mutual funds. I'm already a follower of the Boglehead's Guide to Investing, so Ramsey's investing advice did not really "click" with me --- for his readers, I don't think his advice to just pick up growth mutual funds for long term gains will be received adequately. But I do think that his debt advice is solid, and the plan is decent. What would have been better is if each chapter was named after the steps, so I could wade through all the sob stories and extra book fluff and just get to the tips, but alas! At least he doesn't peddle his Financial Peace University tool every 5 pages.
So what do I think of the Dave Ramsey methodology compared to Robert Kiyosaki's?
I see it as Dave Ramsey's advice is great for the average Joe Schmoe who doesn't know much about how to manage money, or most importantly curb debt. His advice is more practical. Robert Kiyosaki's advice on other hand, feels good for the long term --- for people who have stable incomes, who know what it is they want, and who want to BUILD WEALTH. I often joke to myself that I had Kiyosaki's mindset with a Ramsey portfolio during college because I had so much debt, that "Starting my own business" was a feat that wouldn't change my debt situation overnight or give me the psychological motivation I needed to keep pushing. I think where I'm at, I can incorporate both of their philosophies.