Summary of The Total Money Makeover

Introduction to Total Money makeover summary

The writer, having in his mind speaking and addressing peoples,actually targeted the American audience and readers,had started TV shows and Radio programs.

He self-published a book named Financial Peace which was nominated bestsellers in the New York Times . The Total Money Makeover is the second issue regarding Financial Fitness.

Let’s discuss briefly.

Savings without a mission is garbage. Your money needs to work for you, not lie around.

Money being piled up after savings is pointless. It’s useless too. The saved money has to have a purpose. What to do with it. It should have a purpose. To use it. Use it in a productive way.

For your own good, for the good of your family and your future, grow a backbone. When something is wrong, stand up and say it is wrong, and don’t back down.

The backbone is either through savings,investing on a suitable platform which can bring along the best results in the future.

Few people have the courage to seek out change.

Change that most people dread. It’s the uncertainty,the risk and the unknown circumstances that are going to be faced in the future. A very few of the fortunate and brave ones can stand and face the challenges. They are the heroes.

It is human nature to want it and want it now; it is also a sign of immaturity.

For having the fruit of savings and investment,one has to wait and have patience. This is the sign of maturity. This is not a timed game like football and cricket. This is reality and to face life you shall have to face life With sportsmanship. Either you lose and win,you shall have to admit and accept it.

Myth: If I loan money to friends or relatives, I am helping them. Truth: If I loan money to a friend or relative, the relationship will be strained or destroyed. The only relationship that would be enhanced is the kind resulting from one party being the master and the other party a servant.

This is a universal reality. There is a sure chance that your given loan turns into bad debts in a large figure and without having recovered and there is a strong logic and reason that you can’t ask strongly from your friend to repay the money. One can’t risk that in fear of strained relationships or losing the friendship.

Myth: By cosigning a loan, I am helping a friend or relative. Truth: Be ready to repay the loan; the bank wants a cosigner for a reason, which is that they don’t expect the friend or relative to pay.

By cosigning for a friend or relative,you have made a guarantee for your friend or relative. It’s really true that there is almost a 100% chance that you shall have to repay the loan for them,that is,you are sure to incur loss.

Myth: Make sure your teenager gets a credit card so he or she will learn to be responsible with money. Truth: Getting a credit card for your teenager is an excellent way to teach him or her to be financially irresponsible. That’s why teens are now the number-one target of credit-card companies.

That’s 100% true. When teenagers are on the verge of reaching adulthood,slowly and surely they should be taught how to mature and attain the feeling of independence so that in different times they can make their decisions by themselves.

Myth: Borrowing more than my home’s value is wise because I’ll restructure my debt. Truth: You are stuck in the house, which is really dumb.

It’s rather foolish to loan more than the mome value because your home value is less than the borrowed value. And after borrowing you can’t put it in a safe or saving. It shall be spent now or tomorrow. So there is no way you can repay against any guarantee.

I am not against the enjoyment of money. What I am against is spending money when you do not have money to begin with.

You can blow out the money in large amounts available. It’s easier by spending it in gambling and on nonsense. If you want to have some money in your savings,you have to spend it calculatively and productively. That’s the best way to use money.

Myth: I can’t use cash because it is dangerous; I might get robbed. Truth: You are being robbed every day by not using the power of cash.

If you keep cash in your hand or in your pocket,you’re surely to get robbed. But what if you spend productively,it shall bear fruit in time,having the best results in time.

Hurdle #1: Ignorance: No One Is Born Financially Smart

To know about handling financial transactions one who does not be a scholar,but do have a basic knowledge of how to use it properly so that it reaps the benefit and how it shall be used. After gaining sufficient knowledge and some practical experiences,one can be able to go ahead on a long expedition to the future.

Hurdle #2: Keeping Up With the Joneses: The Joneses Can’t Do Math

Afamil who didn’t study finance appears to be prudent while using money in households. How is it possible ? They just adds up the money along with the previous balance they had the month before. They know what fixed expenses they have to pay. If they have sufficient balance after calculation,they could keep some money for an unexpected purpose. If not so,they shall try to curtail usages,if possible.

Keywords

Format of maintaining Debt payment format

THE DEBT SNOWBALL

The processes showed how to keep the record of the balance after deducting payments such as Minimum Payment,New Payment for each item which showed the clear picture of the Debts remaining to be paid.

To make more money, you have to plan to make more money. Some people’s problem is income, not spending.

The author shows us another way of making more money in a new process. It is wrong to assume that of getting money and getting more income. It becomes stable because if you put that money in small businesses,it shall fetch money and keep the Cash Inflow and Cash Outflow in order.

Next Stop: Serious Wealth Building

For thinking about serious Wealth Building one needs to have a stable planning. To start on the planning is for a short term with small investment and savings. Gradually,step by step,noticing the result,one should proceed in order. One has to watch closely over the spending structure and curtail spending unnecessary expenses.

The good thing about principles is that they make life easy

If you stick to your principles all throughout your life,you can sail through all the difficulties which come to you. You can make decisions calmly and stay cool. The thing to keep in mind is that sometimes you shall have to be flexible depending on the circumstances,the type of emergency you are facing.

Simple maintenance will keep your money muscles maintained

What is the meaning of money muscles ? That depends upon the money you have got. The important part is maintenance. How to do it ? To keep accounts,make a budget before a Week,a month,or on a large scale,before the start of a year. Any discrepancies shown,you shall have to study minutely and act according to it.

If you hate your career path, change it.

Not in every stage you can act on it. When you have reached a certain point and feel that you shall lead a more comfortable life and add to your earnings,You shall move on to other careers,but after a thorough study,its benefits and demerits.

It is your job to take care of you and yours

Always keep in mind this because your survival depends on other people whom you deal and mix up with. A healthy relationship,to be honest,punctual and be smart in meeting their needs. As for the people who are dependant on you,in the household you shall watch over their comforts and needs and then they shall survive, be happy and have confidence upon you.

The reason you are afraid of investing is because you do not know what you are getting into. Learn about investments

Of course. Because Investment is a delicate matter which requires a thorough research. When it involves stocks and shares,one has to study the current marketing trends and the company performance and its position in the Stock Market. As regards real estate or property required its location and the company for its authenticities and also its financial conditions.

Myth: If I do a will, I might die. Truth: You are going to die—so do it with a will

It is reported that most Americans don’t make a will. Th Will insures for the future. It is for the future generations and the person who shall inherit and my stating clearly the person making the Will does his for the betterment of his dependents.

It is never too late to start

So,don’t think about early in life. After studying for long years you shall be matured enough to do things your own Way,whether to invest,starting a new business or the like. For starting business,you shall be cautious and start on a very small one and then proceed following the result.

You are going to win

Whatever obstacles comes in front of you,you shall stand like a wall and be confident that you shall proceed with firm steps and keep in mind that you shall Win despite all difficulties and obstacles.

Understand The Purpose of a College Education Before You Fund It

As a parent, you shall look to the future for the education of your children regarding College Education. You shall sum up the total years of college and break it up and budget in session,yearly and if possible,put up a Fund for that purpose and add it up.

College degrees do not ensure wealth

Yes,it’s 100% right. A mere college degree does not bring wealth and make you wealthy. After getting through the rough path and gaining more and more experience through much study and having earned maturity,one shall get Wealthy. But most of the wealthy persons don’t have academic degrees. Farsight and foresight along with the courage and boldness to accept any risk is their main virtue and to stay calm and cool while making decisions,they are worthy of being wealthy.

Stay away from loans; make plans to avoid borrowing

Taking loans means taking a burden on one’s shoulder. To shirk off such a tendency one has to strictly follow th rules to avoid borrowing. It eats up te meagre or sufficient savings through interest or otherwise a pressure also eats up your mental peace.

Getting Creative When You Don’t Have Much Time

There is creativity in everyone. You shall believe that you’ve the capacity and intelligence to being creative. Through utilizing your creativity,you can expand your income and also can make friends and create your goodwill.

91% of families have saved nothing— or close to nothing—toward their child’s college education

That is the clear picture in America. How can the people save such a large amount to clear the college education of their children ? it is knoWn all around the world that colleges and Universities provides the quality education and the expenditure is the highest which the middle class or lower middle class families can’t afford.

If you aren’t really careful, “The Good Enough” can become the enemy of “The Best.”

Most of us are content with being ‘Just Good Enough’ which are not comfortable enough in difficult times. One shall put up with the effort to be ‘The Best’. But to do that,one should have a clear picture of that state,the lifestyle and the expenditures required. One has to build up around themselves ‘Financial Shield’ so that it doesn’t hamper progress.

80% of Americans believe their standard of living will go up at retirement. Talk about living in a fantasy!

HoW can that be ? Because after the age of 35, the productivity and the capacity to make decision and brainwork is not sharp enough. So,continuous effort to keep one’s own mind cheerful and positive minded shall help to keep himself smart in decision making till his age of retirement.

Wealth is not an escape mechanism. It is instead a tremendous responsibility

What wealth is not assets. It also includes cash,bank account, the liquidity of Cash,stock,real estate investments. I don’t include debt because it is a burden which disturbs the balance of wealth.

Always manage your own money

Once you ave obtained your adulthood,when you are a student, be self dependent. Don’t depend on others for money. Don’t be a burden on your parents depending on them for money. Use your own effort to obtain and use it to make more money and once you get established,you shall settle down easily in the next stages of your life in the future.

Separate checking accounts mean one of two things, either ignorance or problems.

While getting the main balance and clear picture of your finance you shall keep the earning,investment and expenditure in the same sheet so that one can’t get complicated and it shall be a simple easy process of Accounts you shall have.