Monday, July 30, 2012

Financial Peace Revisited by Dave Ramsey

     I stated as the purpose of this blog that I was going to look at books that I thought were important. I didn't state that they were all going to have the copyright of the present year.
    This is a book worth revisiting. In fact, Dave Ramsey even has now put his seminars on video tape for organizations that want to buy the program and go through the nine weeks, now it is nine weeks, it used to be thirteen.
    The essence of the program is here.
     Ramsey takes you through the program in twenty two chapters and an appendix. The appendix has the paper work you will need to do to follow the program.
     You start with the budget. You should be aware of where your money is going. You need to know where you are to start with and just how much you are going to allocate to each area. He also suggests you use an envelope system where you label each envelope (Food, Gas, Education, etc) and put money in each. When you need food money look in the food envelope. When it is all gone you can spend no more on food.
     When he takes about savings I wonder what he is looking at. He seems to think you can put away money in an account giving you 12% return. I don't know of any bank that is giving 12% interest on my savings. Maybe .01%
      He does that in his seminars also.. saying if you put away money in a saving account that yields 12% over time you can make x amount over time. In this I feel he is a bit out of touch. But if he is using exaggeration to make a point, than that is different.
      Ramsey wants to help people and I think this is a good addition to the genre of financial planning. I would recommend this for all.

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