Total Money Makeover Summary

Introduction

This is a short post about my summary of the Audiobook “Total Money Makeover” by Dave Ramsey. It is not meant as a guide to follow, just my personal notes I made while listening.

The 7 Babysteps

1. Save 1000€ cash as emergency
2. Start the debt snowball (list all debts ordered by debited amount incl private except home, pay off smallest to largest. Each interest saved pays off the next debt. Radically sell stuff if needed)
3. Finish Emergency Fund (3-6 Months of expenses, at least 5000)
4. invest 15% of your income into retirement (don’t include any external bonuses)
5. save for kids education „college fund“
6. Pay off home debt (completely debt free)
7. Build Wealth. . This is where you start spending. When your money generates more money than your job, then you’re done. Money is for fun, investing and giving. Now is the time to do that.

Note

In the Audiobook Dave has stated a “Step 7b”. I merged that with Step 7 as it was not a step but a milestone.