This book is by the man who did stupid with zeros (Dave Ramsey)
Summary:
"Most peopsle know Dave Ramsey as the guy who did stupid with a lot of zeros in his twenties- the wrong way- and then went bankrupt. That's when he set out to learn God's way of managing money and developed the Ramsey Baby Steps. Following these steps Dave became a millionare again- this time the right way"
What do I love about this book
I love that Dave makes the destinction between millionare and billionare, I agree with him that when most people think of millionare we actually think billionaire. We think of this person that can afford anything they could possibly desire and not have it hurt their bank account. This is not a millionaire that is a billionaire. Millionaires are all around us, they are on most streets, they are in your local grocery store, they are in the restaurants you are. Because we think of the Uberwealthy (the people with private jets, or multiple multimillion dollar homes, people who tend to live lavishly on social media) as only millionaires we think it is unabtainable. These people are in fact centimillionairs (100s of millions) if not billionaires. A millionaire is like you and me A Joe Shmo as I tend to say.
What I also love about this book is that Dave gives you the steps to become a millionaire and as he claims in his book they are boring. What is great about boring however is that it is easy! They are very passive and as long as you do the upfront work "live like no one else" then you will be able to "live and give like no one else". Dave talks about the sacrifice that is needed to make Steps 1-3 possible. I kinda have been following the steps before I even knew about them. I would save my money and only buy things when I could afford them, I was lucky enough that my parents had saved some money for my college (Step 5) that I left school with no debt, and I was paying down the loan that I had at the time (my car).
I love how Dave includes references of the bible to say this is how God intended life to be and to debunk any ideas that wealth is evil. Just like any inaminant object wealth is not evil it is evil people who are wealthy who do wicked things with their money. Dave continues on this topic of wealth being evil by saying "Generosity is a hallmark character quality of those who win with money. Seven in ten millionairs in our study say they set money aside each month to give to others. " (pg 98)
I want to share this last quote with you on what I love about this book. On pg94 Dave quotes from 1 Timothy 5:8 "But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever." Dave goes on to clarify this on pg94 with "First, they fill the cup, providing for their own needs. Then they keep pouring until the cup overflows and they have plenty to give to others" This is a fantastic quote! But notice how it says own needs it does not say desires or wants. This focuses on the necessities of life, yes you can save for the wants but they should not be a priority before giving to others.
Another thing there are a lot of in this book are stories, I am indifferent if these stories have added value or if they are starting to take away from the book. I would say a few stories is good but the amount in this book seems excessive. I understand the point that Dave is trying to make which is, it does not matter where you are in your life or where you came from. If you believe and have hope that you can do it then you can.
Overall I would give this book 4.8 stars out of 5 there is a lot of useful information in this book and most of the stories add value. I took 0.2 stars off due to the exessiveness of the stories. Like I said above I understand the purpose of all the stories they just seemed a tad excessive.
Here are the 7 Baby Steps millionaires in the book.
Step 1-3 Have to be completed in order, Steps 4-6 happen simultaneously.
Step 1: To save $1,000 for your starter emergency fund.
Step 2: is to pay off all debt, except the house, using the debt snowball. If you have any money above your $1,000 emergency fund that is not in a retirement plan, cash it out, and use it on Babystep 2, Also temporarily stop all investing to free up all cash to hit baby step 2 with a vengeance.
Step 3: save 3-6 months of expenses in a fully funded emergency fund.
Step 4: invest 15% of your pre-tax household income into retirement investments. (Match beats Roth beats traditional)
Step 5: is saving for your children's college fund.
Step 6: Pay off the house early.
Step 7: is to build wealth and give!
If you want to learn more of what Dave has to say his book or audiobook can be purchased Here
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