The Total Money Makeover Summary

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The Total Money Makeover provides a straightforward plan for individuals seeking to regain control of their finances. 

Dave Ramsey focuses on eliminating debt through practical steps and behavioral changes. 

The core message is about building wealth and achieving financial freedom by avoiding common money myths and embracing disciplined financial habits.

Face the person in the mirror and take charge. Your money problems are your responsibility. Commit to changing your behavior and follow a proven plan to get out of debt and build wealth.

Start saying "no" to unnecessary expenses and embrace a life of sacrifice for a short time. By living differently than everyone else now, you will later enjoy a life that others can only dream of.

Look in the mirror and be honest with yourself. Are you really doing as well as you think? Break free from denial and face your financial reality to start making real progress towards a better future.

Don't wait for a crisis to force change. Embrace the initial discomfort of changing your habits now. By choosing change, you're securing a future of financial security and freedom.

Avoid the trap of wanting everything now. Delaying immediate gratification is maturity. Refuse the "I want it now" mentality. Stop borrowing money to buy things you can't afford. Build wealth by being patient and responsible.

Don't fall for the lies about debt being a tool. It's a way for banks to get rich, not you. Prioritize saving and investing your income. Remember, the borrower is always a servant to the lender.

Don't wait for a lucky break to solve your money problems. Avoid shortcuts and get-rich-quick schemes. The path to financial success is to work hard, live below your means, and get out of debt.

Protect yourself with insurance to avoid financial ruin from unforeseen events. Plan for the future by creating a budget, a retirement plan, and an estate plan. Take responsibility for your money.

Admit that you need to learn more about money. Commit to educating yourself. Ignorance is not stupidity, it's simply a lack of knowledge, so learn. Finish this book and make a commitment to continually learn about money.

Stop trying to impress others with your money. Be content with what you have. Your goal is to achieve financial security, not to keep up with the broke "Joneses." Stop seeking approval of stuff and start investing.

Create a budget each month. Give every dollar a job. The budget is the boss of your money. If married, agree with your spouse. Don't spend without consulting one another and your written plan.

Save $1,000 fast. This is your starter emergency fund. This keeps small problems from becoming debt. Stop everything else until you reach the $1,000 goal. Murphy is always waiting.

List your debts from smallest to largest, ignoring interest rates. Focus all extra money on the smallest debt while making minimum payments on the others. This will give you quick wins and motivation.

Get intense about paying off debt. Stop borrowing, sell stuff, and work extra hours. When your debt Snowball will not roll, do what it takes to get it moving. It is possible to turn your finances around.

Build a fully funded emergency fund. Aim to have three to six months of living expenses saved. This money is only for real emergencies. This account will become your Murphy repellent. 

If you don't own a home yet, wait. Save for the down payment after becoming debt-free and saving for your emergency fund. The new goal for saving becomes your down payment on a house.

Invest 15% of your gross income for retirement. Use growth stock mutual funds and split your money between growth and income, growth, international, and aggressive growth funds. The goal is long term wealth.

Make sure you start with any match you can get and then fully fund Roth IRAs. Remember, it's your job to take care of you. Now you're on track to retire with dignity and security.

Emphasize knowledge over prestige. If your kids need to use student loans, send them somewhere affordable, like the local state school. Focus on good degree programs. Prioritize staying out of debt.

Encourage the creative plan of saving. Look at scholarships and work study programs. The most important thing is to have them work. The goal is to keep your children's education from leading to more debt.

Pay off your home. Attack your mortgage with every extra dollar. Remember, you have run a great race but aren't done yet. Push through to the end and live debt free.

Avoid those misleading myths like tax deductions and low interest rates. With the home paid off you are free from making payments to your lenders forever. There is not any better feeling.

Build wealth. Have fun, invest to increase your net worth, and give generously. Live like no one else, so later you can LIVE like no one else.

Now you are free. Use your wealth wisely to help yourself and help others. The power is now yours. Enjoy it. What a blessing.

Wealth can be a blessing or a curse. Don't let money become your god. Make sure you have that all important spiritual balance by giving back. Be careful about materialism.

Use your wealth to have fun, invest wisely, and be incredibly generous. It is your spiritual duty to build wealth for the good of others. By doing so, you have truly made your world a better place.

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