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Total Money Makeover

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daveramsey.jpgA Proven plan for financial fitness (2009)

By Dave Ramsey

The author supports the debt snowball method, where debtors pay off the lowest balance debt first before paying off for the highest interest rate debt. Small victories give the debtors motivation.

He has certain myths and truths in his book.

Myth : Debt is a tool and should be used to create prosperity.

Truth : Debt adds considerable risk, most often doesn’t bring prosperity, and isn’t used by wealthy people nearly as much as we are led to believe.

Myth : If I loan money to friends or relatives, I am helping them.

Truth : If I loan money to a friend or relative, the relationship will be strained or destroyed. The only relationship that would be enhanced is the kind resulting from one party being the master and the other party being a servant.

Myth : Car payments are a way of life, you’ll always have one.

Truth : Staying away from car payments by driving reliable used cars is what the average millionaire does; that is how he or she becomes a millionaire.