Top 15 Financial Lessons from “The Total Money Makeover”
Key lessons from Dave Ramsey’s “Total Money Makeover” present timeless insights for today’s changing world. Attaining financial freedom and stability is natural for some people, but many are struggling when it comes to financial literacy and intelligence.
Your life could come to ruin when your finances are mismanaged due to a lack of financial awareness or wisdom. That’s why, on Date A Book, we are excited to introduce to you “The Total Money Makeover” by Dave Ramsey.

Quick Review on Dave Ramsey’s “The Total Money Makeover”
It is a fantastic book that offers practical steps to help you take control of your finances and transform your financial situation. It focuses on getting out of debt, budgeting effectively, and building wealth for the long term.
Dave Ramsey’s straightforward advice and motivational approach make it a great resource for improving your financial literacy and achieving financial freedom. Give it a read, and you’ll be on your way to a better financial future.
This book is also recommended among our Top 10 Money & Finance Books in our recent articles.
About the Author: Dave Ramsey
According to Wikipedia, David Lawrence Ramsey III (born September 3, 1960) is an American radio personality who offers financial advice. He hosts the nationally syndicated radio program The Ramsey Show. Ramsey has written several books, including The New York Times bestseller The Total Money Makeover, and hosted a television show on Fox Business from 2007 to 2010.
15 Smart Lessons From “The Total Money Makeover” By Dave Ramsey
In our quest to help increase your financial intelligence through reading, here are 15 smart lessons embedded in “The Total Money Makeover” by Dave Ramsey:
1. Set clear financial goals
Dave emphasizes the significance of setting clear and conceivable financial objectives. You could do this by having a well-defined set of objectives. Setting achievable and realistic financial goals will help you attain the level of financial freedom you wish to have.
2. Create a budget and stick to it: “The Total Money Makeover” Financial Lessons
Budgeting is one of the most crucial aspects of personal financial management. This book enlightens you on how to create a zero-based budget (everything you give, save, or spend should add up to your total income).
#FUN FACT: Every dollar/ cedi/ naira/ pound/ rupee/ cent or dime counts and should be assigned a purpose.
3. Save for your starter emergency fund
Your emergency fund will cover those unforeseen circumstances of life you can’t plan for. Dave strongly recommends you save at least $1000 for your starter emergency fund.
4. Build an emergency fund for unexpected expenses
If you lose your job, you won’t have to worry too much because you’ve saved enough to last you about 3–6 months until you find a new job. Should your car break down, your home gets destroyed or faulty, or medical bills, you’ll be able to pay for the necessary repairs and fix the problems rather than living with them.
5. Pay off all debt using the “Debt Snowball Method.”
Clear all debts, smallest to largest, as quickly as possible. The author has an amazing 4-step formula for paying off debts.
- Step 1: List your debts from smallest to largest, regardless of the interest rate.
- Step 2: Make minimum payments on all your debts except the smallest, which you will pay in full.
- Step 3: Pay as much as possible on your smallest debts.
- Step 4: Repeat until each debt on the list is fully paid.
6. Save for retirement and invest wisely: Smart Lessons from “The Total Money Makeover”
Once your debts are cleared and the emergency fund is taken care of, Dave Ramsey recommends you take 15% of your gross monthly income to fuel your retirement fund monthly. Nobody knows what the future holds for your old age. But it is your sole responsibility to make plans for that moment.
7. Save for your children’s education
Avoiding student loan debts can be one of the greatest factors in staying out of debt as a young adult. Dave recommends various investment options, such as 529 plans and Educational Savings Accounts (ESAs). Helping your children have enough funds reserved for their education is one of the best foundations you can build for them.
8. Pay off your mortgage early: Timeless Lesson from “The Total Money Makeover”
To achieve complete financial freedom, set aside additional money to clear your mortgage as soon as possible. Dave Ramsey is a strong advocate for paying off your mortgage early. He believes that being debt-free, including your home, provides financial freedom and peace of mind. Ramsey recommends using the debt snowball method to pay off your mortgage faster by making extra principal payments each month. This approach can save you thousands of dollars, cedis, naira, and pounds in interest over the life of the loan and help you achieve true homeownership.
9. Build wealth and give generously
At this stage, you can do what the “big boys” do because you are debt-free. Calculate your net worth as often as possible and be outrageously generous. In doing all these, don’t forget to build and leave an inheritance for your kids (build generational wealth). Avoid unnecessary debt and live within your means.
10. Communicate your finances openly with your spouse.
It’s important to have open and honest conversations with your partner about finances. This means discussing your income, expenses, and financial goals together. It helps build trust and allows you to make informed decisions as a team.
11. Reduce credit card usage.
He believes that using cash or a debit card helps individuals stay within their budget and avoid accumulating debt. By using cash or a debit card, you can better control your spending and avoid the temptation of overspending or relying on credit. It promotes responsible financial habits and helps you live within your means.
12. Increase your income: Key Lessons from Dave Ramy’s “The Total Money Makeover”
Increasing your income through side hustles means finding additional ways to make money outside of your regular job. It could involve starting a small business, freelancing, or taking on part-time gigs. Side hustles provide an opportunity to earn extra income and can help you reach your financial goals faster. It’s all about leveraging your skills and interests to create additional sources of income, and Dave highly recommends this in his book.
13. Practice gratitude
The author emphasizes the importance of practicing gratitude for what you have. He believes gratitude helps shift your focus from what you lack to what you already have, fostering contentment and reducing the desire for excessive spending. By appreciating what you have, you can develop a healthier relationship with money and make wiser financial decisions.
14. Avoid unnecessary expenses and prioritize your spending
To avoid unnecessary expenses and prioritize your spending, you should be mindful of where your money goes. You have to distinguish between wants and needs and make conscious choices about how you allocate your funds. By prioritizing your spending, you ensure that your money goes towards the things that truly matter to you, such as saving for goals or investing in experiences that bring you joy and fulfilment.
15. Stay motivated and committed to your financial journey
According to Dave Ramsey, staying motivated and committed to your financial journey means staying focused on your goals, tracking your progress, and making intentional choices with your money. It’s about being disciplined and making sacrifices now for a better financial future.
Conclusion: Financial Lessons from “The Total Money Makeover”
These are just a few of the valuable lessons you’ll find in the book. Enjoy exploring them further and putting them to use. Remember, financial freedom is possible for you too, and you can achieve it. Yes, you can!
Written By:
Linda Esinam Amagatsey
Edited By:
Arthur Kwame Philip