Dave Ramsey Total Money Makeover
Dave Ramsey’s Total Money Makeover is an excellent book that provides you with a no nonsense comprehensive plan to get yourself out of debt and to increase your wealth. You just need to learn how to say NO.
1. Debt is bad. Don’t get into it. Buy with cash. Here are some of his key points:
2. Here’s how to payoff debt: Concentrate on the smallest debt first. Pay what you can on it, over the minimum payment. Once the smallest debt is gone, add that former payment to the next outstanding debt payment and so on. (The “debt snowball”) is what he calls it. Psychologically this will help you get your debt paid off. He says don’t concentrate on the interest rate, just the size of the loan.
3. After all debts are gone, set aside 3-6 months of expenses for your emergency fund.
4. After the emergency fund, start investing in mutual funds.