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So, to add to Dave’s point: let’s not borrow just to consume.
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The problem is that when people do this without knowing how to be productive, or they get over-leveraged, then they get destroyed. Yes, it’s wise to stay out of debt, but there are times when you use other people’s money to acquire assets like real estate or a business. More liabilities than assets equals debt. When you have more assets than liabilities, that’s called equity. On the right side, list your liabilities. Take out a sheet of paper and draw a line down the middle. Sure, they offer us 1% on our money, but then they turn around and sell that money to other people for 4% interest.īut let’s be clear about what debt is.
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Banks usually are the biggest buildings in town and we’re willingly giving them free interest. While I wouldn’t use the word “stupid,” he does have a point. #2: You must get out of debt.Īt one point, Dave says, “When you spend your whole freaking life giving your money to banks who fill up the skyline and have furniture nicer than yours, that makes you stupid.” It’s a limited, finite game that doesn’t lead to your ultimate destination: wealth. When that is your focus,it minimizes the real road to wealth, which is value creation. I believe in mindful cash management, knowing where your money is going, paying yourself first, automatically saving, and not spending more than what’s left over, but I do not think budgeting is the answer.īudgeting is all about reducing, restraining, and restricting. It sets that stage and gets the ball rolling for the rest of the book and the tools and techniques that you will need to implement.Dave makes the case that budgeting is biblical by quoting Luke 14:28-30, where Jesus talks about the importance of estimating the cost of building a tower so you don’t run out of money halfway through, opening yourself up to ridicule for not finishing what you started. These are all things that you will find in this section. How much debt to you have? What are the different types of debt that you have? How much are you investing? Do you have your financial priorities straight?
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You have to know where you are starting from in order to improve. It discusses your current financial situation and asks you to take a good, hard look at your finances. Part two talks about where you currently stand. Like Dave Ramsey’s book, you’ll also find chapters in this section that talk about your values and your life’s calling and how they intertwine into your finances.
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It walks the readers through goal setting and how to accomplish some of the many financial tasks that you will find throughout the book. Part one is a great opening to the book that sets the stage. Not only is Simple Money – A No Nonsense Guide To Personal Finance easy to read, but it also has great graphs, charts, and illustrations to make the point hit home with the reader. “ Simple Money – A No Nonsense Guide To Personal Finance” is broken down into five sections that make this book a great tool for people looking to take control over their finances. So, if you like Dave Ramsey, I think that you will really enjoy “Simple Money – A No Nonsense Guide To Personal Finance”. I can see many similarities between the two books and their philosophies. And, Tim Maurer’s book, Simple Money – A No Nonsense Guide To Personal Finance is another. Dave Ramsey’s “ The Total Money Makeover” is one. It’s rare that a book tackles both and tackles them well. Other books look to help you find your purpose and how money fits into that goal. Many personal finance books try to teach you about money. Last Updated: Simple Money – A No Nonsense Guide To Personal Finance Simple Money: A No-Nonsense Guide to Personal Financeįull Disclosure: We earn a commission if you click this link and make a purchase, at no additional cost to you. What choices are you making and why? What choices should you make about your finances and why? Tim Maurer breaks it down in clear, easy to read and practical advice. It is personal, and that’s what “Simple Money – A No Nonsense Guide To Personal Finance” is all about. He says, “Personal finance is more personal than finance.” And, a truer statement has never been said. Tim Maurer makes a statement in the beginning on the book that is very poignant. Why do we make the financial choices that we make? What motivates us to spend or save money? These questions and much more are discussed in detail in the book. The book makes people look at the “why” of their personal finances and money decisions. Tim Maurer walks the reader through his or her personal finance choices. In “ Simple Money – A No Nonsense Guide To Personal Finance” by Tim Maurer, the author breaks personal finance down into its simplest form. We get scared to make a decision for fear that we will do something wrong and make irrevocable errors. We tend to make it harder than it needs to be.