Dave Ramsey’s Complete Guide to Money by Dave Ramsey
Dave Ramsey’s Complete Guide to Money by Dave Ramsey is the handbook of Financial Peace University (FPU). The book is the basis of the seminars in Financial Peace University. The book teaches you how money works. The chapters include information on the following topics: saving, budgeting, dumping debt, understanding credit cards, buying decisions, the role of insurance, buying bargains.
This guide is really complete because it also covers the nuts and bolts of different topics not addressed by other financial experts. These subjects include investments, planning for retirement and college, working extra jobs to pay ahead, and real estate and mortgages.
Ramsey ends with his discussion about the power of generous giving. In this final chapter, he spends time sharing what the Bible says about giving. Ramsey’s emphasis is getting people to the point where they “give like no one else.” Many biblically based books spend time discussing biblical theology but don’t spend enough time telling people how to save and spend their money. Ramsey uses a eight-step process to give an overall picture on money management.
The most significant basis for the entire book is the seven step process. Ramsey calls this process “baby steps.” These baby steps are the road map to success. These are the baby steps:
- Put $1000 in a beginner emergency fund.
- Pay off all debt using the debt snowball.
- Put three to six months of expenses into savings as a full emergency fund.
- Invest 15 percent of your household income into retirement.
- Begin college funding for your kids.
- Pay off your home early.
- Build wealth and give.
The handbook is not just a financial handbook. Ramsey spends time explaining the types of people who use money. Every marriage has a Nerd, Free Spirit and every marriage also has a Saver and Spender. Ramsey addresses how these two different kinds of money managers should relate to one another. He also explains how parents can teach their children about money. The chapter on relating to money is worth the money alone.
If you have heard Dave Ramsey on the radio, he writes the same way he speaks. He has a no-holds barred, no-nonsense approach to helping people grow to financial peace. One might feel insulted by the way he addresses the reader. However, as Ramsey states in Financial Peace University, you have to hear what you need from your coach in order to win. As a coordinator for Financial Peace University, I highly recommend this book as well as the course. God will use it to help you experience financial peace.