Sunday, July 25, 2010

Money Answer Book - Dave Ramsey

So I am on this money saving kick and I read another one of Dave Ramsey's books, "The Money Answer Book"!  Okay so perhaps I am becoming a little obsessed with budgeting and saving money.  My husband reluctantly told me this morning that he thought his drill was about to blow up.  I think he thought I would say, "No - you cannont buy another drill".   I surprised him and said, "I know you use it all the time, we can get another one."  He was shocked!

Anyways, this is another great book.  Dave tackles 100 tough questions on paying debt, budgeting, and spending.  It was a great, quick read filled with lots of great insight.  A couple of the things I learned:
  1. Dave does not ever recommend buying new cars because they lose so much value, you are much better off paying cash for a 2 year old+ vehicle.
  2. When buying life insurance, make sure to buy term life, not whole life policies!
  3. Everyone needs a will!! (I second that)!
  4. Make a budget to tell where your money goes, don't look back at the month and wonder where your money went!
  5. Invest 15% of your pay in retirement once you are out of debt and have a 3 -6 month Emergency Fund.
The book focused on the 7 Baby Steps laid out in his other book, The Total Money Makeover!

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