Book #9: "The Total Money Makeover"
by Dave Ramsey
So, my brother-in-law listened to this as an audio-book a couple of weeks ago and recommended it to me. I personally struggle with Dave Ramsey's message a little bit, but no one can deny that he has been VERY successful in helping hundreds of thousands of people pay of debt and become more financially stable. Since our next life stage is called "PAY OFF ALL DEBT!!!!", I figured reading the book could only help, so decided to give it a whirl.
I have two struggles in general with Dave's message. 1) His main message is "Live like no one else now, so that you can live like no one else later." While I understand why these principals could be considered godly, I also wonder if that's only our "American-version" of Christianity. Anyone that's stuck with me over the last year or so knows that I've read/processed/struggled through "Radical" by David Platt. The BIGGEST thing I took from that book is the question: "Is materialism our blind spot (like slavery was in the past)? In 100 years will Christians look back at Americans today and ask, "How could they have known what was going on in the world and still have kept so much for themselves?" Is our Americanized version of Christianity actually Christ-like, or would we just really like it to be? I guess I like the first part of Dave Ramsey's main statement, but wonder if the "why" that comes afterwards should be amended. (don't claim to have an answer, these are just my thoughts right now!)
2) My natural and learned behavior is to live in the "now". A while ago when we were trying to decide whether or not we should to go to India, someone told me the story of a couple that had saved and been financially responsible their whole lives. They were planning and dreaming and waiting for retirement so they could travel and see the world, but a few years before retirement the wife got sick and they never got to live their dreams. The moral of that story - if an opportunity presents itself, take it and don't look back. I really like that perspective, and have tried to live like that ever since. HOWEVER, Dave's principals are all about preparing for the future, and those two perspectives don't mesh well together! Oh, struggle struggle.
SPOILER ALERT!!!
His Seven Baby Steps are:
1. $1,000 Emergency Fund
2. Pay off all debt using debt snowball
3. 3-6 months of expenses in savings
4. Invest 15% of household income into Roth IRAs and pre-tax retirement
5. College funding for children
6. Pay off home early
7. Build wealth and give!
I'm totally on board with #1-3. We're entering a year where that's exactly what we'll be doing, and I feel like this is SO wise. Debt puts a noose around your neck and makes it very difficult to pick up and leave when the Lord calls. This is also a clearly biblical principal, as the bible talks many times about being a slave to money, how we shouldn't owe anything to anyone, etc.
I could be persuaded to get behind the rest, but am just still processing things. After all, we do feel like we are significantly behind some of our friends who didn't have school debt, so the gift of a clean slate seems like a pretty great gift to give a kid. AND, if we buy a home (AFTER we sell the one we don't want anymore!), it will definitely be a goal to get it paid off. The thing is...it feels like we'll be ready to retire by the time these things have all happened, and then what? Was our whole life simply preparing for retirement? Will I have really lived life? And, haven't we just chosen to take control of our finances instead of giving them into God's hands? How would this path force us to depend on God for our finances, and to be willing to pour ourselves out like a drink offering? If everything is secure, do we ever really learn how to trust?
HMMMM......
All that to say, I'm still processing and struggling to figure out the balance, the Truth, what God has called us to. HOWEVER, we know and feel very confident that He IS calling us to pay off all our debt and gain financial freedom from this burden. So, that's what we're going to do!
My favorite part of this book was his term "gazelle intensity". He talked about how a gazelle can outrun a tiger (fastest animal in the world!), because of their ability to dodge in and out and avoid capture. He encouraged his readers to have "gazelle intensity" when paying off debt and do whatever needs to be done to get it GONE! So, we're moving in with my parents, taking extra side jobs (piano lessons for me, tech. gigs for Chris), and saying "no" a lot this year. Hopefully by this time next year I'll be able to write a celebratory post! But until then, this is our journey and I'll just keep processing. :)
5 comments:
Love, love LOVE this post. While in Malaysia I actually read Radical and Financial Peace at the SAME TIME. It was crazy. I was frustrated with Ramsey and the influence he has over so many Christians, helping them to feel okay about being "responsible" but ignoring our responsibility to the poor and oppressed? I can't see Jesus following such a program. The other thing that repeatedly bothered me as I read the book were multiple references to the fact that you will not have "peace" until your finances are in order. What? What is faith then if our peace comes from our own financial security?!?! I too agree with the wisdom of the general principals, but think it is scary if people listen to him instead of the Holy Spirit, who may have another plan.
Side fact- Dave Ramsey looks JUST LIKE our headmaster Ben Norton (:
Love you!
Dave's main thrust with "Live like no one else…" is NOT the hoarding of wealth and accumulation of loads of stuff. In fact, if you remember towards the end of his TMMO book, he talks a lot about giving — he says regularly that giving is the most fun you can have with your money.
I think you're reading into this too much. (And people listening to him over the Holy Spirit? That's silly talk.) Dave has never suggested that you blindly do what he says.
Going a step further, if you were to listen to Crown Financial (all their stuff is Scripture-based), you'd see they have a VERY similar message. The difference might be at the end where they say that once you've got enough (whatever that means for you), you are free to do whatever God wants you to do without encumbrance of employment. How wonderful would that be?!
p.s. When Dave talks about "peace," he's referring to the emotional and mental/psychological security that you have when you're not stressing about money. No where in any of his materials does he suggest a spiritual peace — that is, reconciliation with God through Jesus, which is the cornerstone of the Christian faith.
Christine, thanks for sharing! I was a little was responding too dramatically in my post-India state of mind, but you having that response helps. I hope we can keep processing this...I'm not sure how many people over here have the same thoughts, I need a processing buddy!
I would like to share that I wholeheartedly agreed with what the other anonymous said. Dave DOES NOT teach to become debt free and hoard all your money. His last step (and he always SHOUTS is the most important) ... so you can GIVE it away--- to needy causes or missions. As a fellow dave ramsey believer and follower & recently became debt free i can honestly say there is NOTHING like it and we have been able to GIVE like nobody's business because of it! A little sacrifice is totally worth it. Best of luck in your debt snowball, its incredibly hard but if you are focused on furthering HIS kingdom I think this personally is the best way to do it. God WILL bless that.
Hey Nicole,
I happened to come across this post and the topic of FPU/budgeting greatly interests me and I do have some thoughts!
Although I do not agree with Dave Ramsey EXACTLY, I do strongly support his main goal! The bible says the borrorer is a slave to the lender (prov. 22:7) and that verse is SO TRUE! I've lived and worked overseas as well, but I think it's also important not to generalize American christianity with materialism, just like how we need to be careful not to generalize other cultures as well.
I am so thankful for Dave and how God has given him a mission to inspire others to be wise financially and to GIVE! What a neat thing it is to not have to pay off debt, but instead, give that money to support others in need! What a TRUE JOY that will be for you guys!
I recently became debt-free and was COMPLETELY and UTTERLY humbled through the whole process and I pray you both will be as well!
-H
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