Your Ad Here

The Total Money Makeover

The Total Money Makeover by Dave Ramsey. This book was the first I read. I want to re-read it. It features lots of practical advice, including the concept of the "debt snowball" I mentioned earlier. Here are Ramsey's steps to a "total money makeover":

Step #1: Save $1000 as an emergency fund.

Step #2: Pay off debts, starting with the smallest first (ignore interest rates).

Step #3: Increase the emergency fund so that it will cover three to six months of expenses.

Step #4: Invest 15% of income in growth-stock mutual funds.

Step #5: Pay off the mortgage.

Step #6: Build wealth.

Your Ad Here