Reference Librarian Buffy McDonald recommends The Total Money Makeover by Dave Ramsey.
If you have been thinking about your finances lately, you may want to read The Total Money Makeover by Dave Ramsey. He has a seven-step system that has helped many people find their way out of the turmoil of financial instability.
To begin with, he says, you will want to save $1,000 as quickly as you can to get a starter emergency fund in case unforeseen financial events occur. This is a way to give yourself a buffer so that you don’t have to go into credit card debt when something unexpected happens—as it always does.
The second step is to work your way out of credit card debt, car loans, etc. The idea here is to pay off high-interest debt, so you keep more of that money for yourself and for your future. To do this, Dave recommends paying off the loan with the lowest amount first. It’s called the snowball debt repayment method, and you can learn more about it here.
After you have paid off your high-interest debt, the third step is to save enough money to have a three-to six-month emergency fund. Read more here about how to save up your emergency fund.
After you have paid off your credit card debt and saved up a three-to-six-month emergency fund, you should be feeling a lot more peaceful about your financial situation.
At this point, you can start investing (step four). At this stage, you will want to invest 15% of your gross income. This will help you build wealth. JL Collins wrote a book The Simple Path to Wealth where he describes a well-respected path to building wealth. You can read the book if you want more or learn more about his recommendations here.
The next steps are to save for your kids’ college and pay off your home. You do this with any extra savings you have above the 15% you are already investing.
The final step is giving. Watch what Arthur C. Brooks has to say about giving here.
I hope this helps. The book is available in both English and Spanish. I wish you a happy and stress-free fall! Happy reading!
Find The Total Money Makeover in our collection here.
