The Total Money Makeover: A Proven Plan for Financial Fitness

The Total Money Makeover is a nonfiction personal finance book authored by the American radio personality Dave Ramsey and originally published in 2003. In the book, Ramsey offers a practical plan—called the Total Money Makeover—for personal financial recovery that emphasizes escaping debt and making long-term investments through the “Seven Baby Steps.” The Total Money Makeover is the successor to Ramsey’s book Financial Peace, self-published in 1992. Both books express Ramsey’s financial philosophy as conveyed elsewhere through his self-syndicated radio program The Dave Ramsey Show, begun in 1992, and his popular nine-lesson course, Financial Peace University, which debuted in 1994. The Total Money Makeover has sold millions of copies and is a New York Times bestseller.

This study guide refers to the revised third edition published by Thomas Nelson in 2009.

Summary

The Total Money Makeover consists of an Introduction, two preface chapters, and 13 main chapters, with some miscellaneous content interspersed throughout. The Introduction and preface chapters function primarily to situate the book in relation to the then-recent 2008 Great Recession. Chapters 1 through 13 comprise a fast-paced journey from the emotional lows of financial insecurity and disaster; to the hope of discovering a solution; to the empowerment of implementing that solution; and to finally achieving peace of mind, wealth, and fulfillment.

The Total Money Makeover plan is a seven-step process for escaping debt, saving money against emergencies, planning for the future (retirement, helping children pay for college), and ultimately having fun with wealth. This plan is the one idea Ramsey takes credit for—otherwise, he insists that all the wisdom and information included in the book is derived from others—Grandma and God, most notably. These seven steps are “Baby Steps,” intended to be simple enough for anyone to apply.

Ramsey’s writing is informal and motivational, not intellectual or dry. He wants to persuade everyone, not just finance fanatics and professionals, to experience the Total Money Makeover, and so he writes in an engaging, personal voice. The personal testimonies included throughout the book—stories of ordinary people making progress toward financial wellbeing by implementing Ramsey’s principles—reveal the broad scope of Ramsey’s intended audience.

Overall, while the book’s subject matter remains predominantly financial, its tone and its tactics of persuasion suggest those of a life coach or motivational speaker. The Total Money Makeover crosses over into the self-help genre by discussing money in relation to emotional, social, and even spiritual matters. Though the book does contain financial information, Ramsey mainly intends to inspire and encourage readers to make empowered financial choices.