“Financial Peace” by Dave Ramsey
Filed under: Book Reviews, Making Money
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Did you know that most Americans retire on an annual income below $10,000? Better yet, do you know why? If you can’t answer the question not too worry. Dave Ramsey’s book, “Financial Peace,” explains why this happens and tells us how to avoid landing on the wrong side of that statistic.
Financial Peace is a reference book, how-to book and biography all in one. Ramsey gives financial advice based on his personal experience instead of what he learned in a classroom. It’s the best “school of hard knocks” book around and his approach has proven so useful to so many that he presently conducts a nationally syndicated daily call-in radio program, regular seminars and a twelve week training program (Financial Peace University) all dedicated to financial health.
But it wasn’t always great for Dave.
Ramsey was on top of the world or so it seemed before going bankrupt at the age of 26. Following popular trends he used borrowed money to invest in more than $4 million worth of Nashville, TN real estate only to realize that unexpected events can change everything. He learned that “high on the hog” can be synonymous with “brink of disaster.” Jaquars, designer suits and even a good name didn’t help much when the banks called in his loans.
Fortunately, Dave didn’t roll over and die after plummeting to the most nightmarish place an investor can be. Through hard work, dedication to family and commitment to integrity he clawed his way back onto solid financial footing using basic, tried-and-tested wisdom that anyone can understand and apply: don’t carry debt and spend frugally. In the process he found himself faced with other people going through the same financial struggles asking for help and guidance. He was willing and ready to share.
- Have several categories of savings: emergency fund, retirement, future purchases, expected reparis and so on.
- Get out of debt and stay that way. His “Debt Snowball” approach for paying down debt is brilliant.
- Live down to get out of debt and accumulate wealth.
- Do everything possible to avoid buying retail. He shares lots of ideas.
- Mutual funds are a great resource for saving. He explains why.
- Accumulate wealth consistently rather than quickly.
- Learn to avoid advertising gimmicks and clever sales pitches.
There are many more useful bits in the book all supported with sound argument and solid instruction. It’s one of the few books that actually tells you how to deal with collectors. You will have a good idea what to do next once you finish the read.
He sites many frightening facts about the financial state of the American public and the negative effects it has on family. He also sheds light on just how much money we hand over to banks every year through respected credit products of all kinds, particularly credit cards, all well documented. Dave doesn’t like credit and shows the path to a better financial ground. Several forms are included in the appendix to help guide you to financial control.
If you have grown accustomed to commercials and convenience you need this book and the good part is you can get it here at a very good price. It is well worth the few dollars you invest.