The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness

Excerpt. © Reprinted by permission. All rights reserved. THE TOTAL MONEY MAKEOVERA PROVEN PLAN for FINANCIAL FITNESSBy Dave RamseyThomas NelsonCopyright © 2013 David L. Ramsey IIIAll rights reserved.ISBN: 978-1-59555-527-4ContentsIntroduction...............................................................ixWhat This Book Is NOT......................................................xiiiFlying Turkeys and Skinny-Dipping..........................................xxi1. The Total Money Makeover Challenge......................................12. Denial I'm Not That Out of Shape.......................................93. Debt Myths Debt Is (Not) a Tool........................................164. Money Myths The (Non)Secrets of the Rich...............................495. Two More Hurdles Ignorance and Keeping Up with the Joneses.............746. Save $1,000 Fast Walk Before You Run...................................887. The Debt Snowball Lose Weight Fast, Really.............................1048. Finish the Emergency Fund Kick Murphy Out..............................1249. Maximize Retirement Investing Be Financially Healthy for Life..........14010. College Funding Make Sure the Kids Are Fit Too........................15211. Pay Off the Home Mortgage Be Ultra-Fit................................16512. Build Wealth Like Crazy Become the Mr. Universe of Money..............18113. Live Like No One Else..................................................196Meet the Winners of The Total Money Makeover Challenge.....................201About the Author...........................................................205Total Money Makeover Worksheets............................................207Index......................................................................229 CHAPTER 1The Total Money Makeover Challenge"As lost as a ball in tall weeds!" That is exactly how I felt. Although itwas decades ago, I can still taste the emotion as if it were yesterday. Outof control, lost, no sense of power, I felt dread creep across the room likethe afternoon shadows on a cold winter's day. Sitting again at the kitchentable with too much month left at the end of the money, I was not havingfun. This "adult" stuff where a wife looks to you to provide and kidsexpect to be fed and kept warm was not exactly working. I didn't feel likesome powerful adult; instead, there was a little boy inside me who wasvery afraid—afraid of this month's bills, afraid of this month's mortgage,and absolutely terrified when I considered the future. How was I to sendkids to college, retire, enjoy life, and not live at the edge of money worries?The "Normal" American FamilyIt seemed every month I sat at that same table with the same worries,fears, and problems. I had too much debt, too little savings, and no senseof control over my life. No matter how hard I worked, it seemed I couldn'twin. I was to forever be a slave to some banker, to the government, and tothe "needs" of my family. When Sharon and I "talked" about money, weended up in a fight, leaving her feeling afraid and me feeling inadequate.The next car purchase, the next house, the kids' college—our entire futureseemed out of reach.I didn't need a get-rich-quick guy to pump me up or tell me to bepositive. I didn't need a secret formula to riches. I wasn't afraid of hardwork or sacrifice. I didn't want to "feel" my way into being "positive."I was positive of only one thing: I was sick and tired of being sick andtired. I was tired of sitting down to "do the bills" and having a heavinesscome over me. The hopelessness was overwhelming. I felt like a gerbil ina wheel—run, run, run, no traction, no ground covered; maybe life wasjust a financial illusion. All the money came in, all the money went out,and only the names were changed to protect the innocent. I owe, I owe,so off to work I go. You know the drill and all the clichés that go withthe drill.Oh, some months everything seemed to work, and I thought maybe wewere going to be okay. I c