TOTAL MONEY MAKEOVER BY DAVE RAMSEY
BOOK SUMMARY

The first half of the book sets you up to implement.

The 7 Baby Steps and covers off all the arguments you may have with yourself (or that your mates might have with you) about what you may believe to be true about how to handle money. It gets all the objections out of the way nice and early.

The second half gives you the steps to follow to get out of debt.

The steps are:
Baby Step One
Save $1,000 cash as a starter emergency fund. Having this money set aside will cover emergencies which will inevitably come along and it will prevent you from going further into debt

Baby Step Two
Pay off all debt (except the house) using the debt snowball. We are talking credit cards, store cards, student loans, After pay and money your Mum loaned you. List your debts smallest to largest. Make minimum payments on all but the smallest. Start aggressively paying off the smallest debt, when it is done then use that payment and move on to the next one – and the next one – and the next one

Baby Step Three:
With the money that you were throwing at your debt now finish the emergency fund by increasing it up to 3-6 months of living expenses

Baby Step Four
Invest 15% of your income into retirement

Baby Step Five
Save for kids college (not something we Kiwis typically tend to do, but worth considering given our rising levels of student debt)

Baby Step Six
Pay off your home mortgage early. This is the step that can take the longest but this is what sits between you and the freedom of having no debt

Baby Step Seven
Build Wealth – with no more payments this happens quickly and you can now really get into investing and building wealth to benefit your own whanau and others in your community. Its time to live and give like no one else!