The Total Money Makeover: Classic Edition

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The Total Money Makeover: Classic Edition Page 24

by Dave Ramsey


  thirty-year vs. fifteen-year, 172–174

  Mortgage Bankers Association, 174

  mortgage industry, xxii

  underwriting, 36

  mortgage payoff, 165–180

  vs. tax deductions, 169

  motivator, fear as, 133

  mutual funds, 170

  for college savings, 160

  emergency fund and, 127

  for retirement investing, 145–146

  myths. See also Debt myths; Money myths

  about college degrees, 152–154

  N

  National Auto Dealers Association, 33

  National Guard, 163

  National Underwriter, 55

  negativity, xii

  nest egg, living off, 147

  net worth, form for, 222

  new car

  loss of value, 34–35

  warranty for, 35

  Nightingale, Earl, 59

  “Ninety days same as cash,” 28–30

  “No Credit Score,” 36

  “Non-Traditional Credit” process, 36

  “normal” American family, 1–2

  average earnings, 75

  debt, 105

  O

  obstacles, acknowledging, 74

  online purchases, 38

  origination fees, on refinanced mortgage, 173–174

  overdraft protection, 101

  overseas funds, 146

  overspending, xxvi

  P

  “par” quote, 174

  payday loans, 26–28

  paying it forward, 192–193

  peace of mind, 134

  emergency fund and, 131

  peer pressure, 78, 80

  Penney (J.C.), 22

  personal finance, behavior in, ix–x

  personal stories

  bankruptcy, L. & S. Hickman, 65–67

  budget

  W. & S. Frick, 77–78

  T. & T. Kiger, 91

  S. & J. Marsh, 92–93

  B. & T. McKinley, 84–85

  J. Morgan, 94–95

  D. & K. Schmidt, 81–82

  challenge winners, K. & C. Morrow, 201–203

  college funding, C. & K. Seymour, 157–158

  credit cards

  S. & A. Bledsoe, 99–100

  A. & L. Cluff, 40–41

  J. & T. Eller, 116–117

  D. & T. Jarrett, 42–43

  M. & K. Stolworthy, 6–7

  debt

  J. & T. Atwood, 129–130

  S. Hogenhout, 162–163

  M. & K. Reep, 10

  T. & M. Skinner, 69–70

  A. & M. Wessner, 20–21

  debt-free living

  S. & D. Howerton, 178–179

  K. & K. McGinty, 186–187

  M. & K. Stolworthy, 6–7

  Debt Snowball

  D. Dangerfield, 113–114

  S. & A. Farrar, 107–108

  J. & A. Hopkins, 110–111

  C. & J. Schubeck, 166–167

  gambling, T. Newman, 13

  giving to others

  R. & T. Brewer, 191

  L. & L. Lokietek, 195–196

  health issues, C. & K. Rhoads, 72

  investing

  A. & K. Ivey, 150–151

  L. & L. Lokietek, 195–196

  retirement, J. & K. Robinson, 142–143

  savings, V. & J. Smith, 160–161

  single mom

  R. Gonzalez, 125–127

  A. Key, 138–139

  student loans, M. & K. Stolworthy, 6–7

  Pinnacle Point, 187–189

  points, on refinanced mortgage, 173–174

  potential, 150

  prayer, 127

  prepaying college expenses, 57–58, 157

  pride, xxv

  principles, 139

  priority, 89

  emergency fund as, 136–137

  retirement fund vs. mortgage payment, 144

  Pro Rata Debt List, 227–228

  problem, recognizing, 9–15

  propaganda, 17

  prosperity, debt and, 19–22

  Pukke, Andris, 61

  Q

  quitclaim deed, 63

  R

  rate of return, xv–xvi

  on gold, 52

  real estate. See also home purchase

  investment, 53

  Recommended Percentages worksheet, 225

  recovery, xxiii–xxiv

  refinancing mortgage, 121–122, 173–174

  relationships, 153–154

  impact of loans, 22–24

  relatives, loans to, 22–24

  rent-to-own, 26–28

  rental properties, mortgages on, 122

  repeating mistakes, 87

  respect, need for, 83

  responsibility, 7–8

  for money management, 185

  of wealth, 198

  retirement

  defining, 141–143

  with dignity, 142

  expectation for standard of living, 142–143

  funds needed, 147–151

  insurance policy savings for, 55

  investing, 140–151

  in mutual funds, 145–146

  outlook, 50–51

  personal stories, J. & K. Robinson, 142–143

  saving for, 120–121

  time for planning, 58–59

  return on investment, on prepayment, 58

  rip-offs, lending examples, 26–28

  risk

  of debit vs. credit cards, 38–39

  debt and, 19–22, 171

  denial, 49–50

  and emergency fund size, 129

  Rivaroli, Antoine, 197

  robbery, risk of, 67–68

  Roth IRAs, 146

  S

  sacrifice, 177

  sales quota, and discounts, 29

  SallieMae, 156

  savings

  for college, 156–158

  for down payment, 137

  form for breakdown of, 221

  insurance policy for retirement, 55

  mission for, 8

  personal stories, V. & J. Smith, 160–161

  for retirement, 120–121

  using to accelerate Debt Snowball, 132–133

  savings account, for emergencies, 125

  savings bonds, college savings and, 157

  scams, 53

  scholarships, 164

  Sears, 22

  second mortgage, 46, 121–122

  Secret Santa, 192–193

  security, 141

  false sense of, 196–198

  women and, 133–134

  Seeds of Kindness, 192

  self-employment

  emergency fund for, 129

  Irregular-Income Planning sheet for, 94, 217–218

  SEPPs for, 146

  selling possessions, 115–116, 202

  SEPPs, 146

  The Seven Habits of Highly Effective People

  (Covey), 59

  short-term investing, vs. long-term, 145

  Sills, Beverly, 20

  simplicity of plan, xiv

  single mom

  with debt, 102–103, 120

  personal stories

  R. Gonzalez, 125–127

  A. Key, 138–139

  sinking funds

  form for, 221

  Lump Sum Payment form, 223

  small business

  debt of owner, 122

  ideas as scams, 53

  small cap funds, 146

  Smart Money, 32, 33

  Social Security benefits, 145

  Social Security number, getting new, 62

  spending, practical, 40

  The Spirit of the Disciplines (Willard), 198

  spiritual behavior, 199

  spiritual maturity, 197

  spouse

  agreement on financial plan with, 132–133

  budget agreement with, 95

  trust in, 119

  Standard & Poor’s 500 index, xv–xv
i

  standard of living, expectation for

  retirement, 142–143

  Stanley, Tom, The Millionaire Next Door, 78–79

  state college (529) plan, 159–160

  Stewart, Larry, 192–193

  stock market, 53–54, 145, 185

  straight-line depreciation, 34

  stress, health issues from, 66

  stress-tested theories, xxiv

  student loans, 43–44, 155–156

  personal stories, 6

  M. & K. Stolworthy, 6–7

  “underserved areas” programs for

  repayment, 163–164

  subprime loans, xxii

  success

  factors impacting, 153

  life principles and, xxv

  requirements for, 93

  summer sales jobs, 163

  T

  tax deductions

  vs. mortgage payoff, 169

  unneeded business expense for, 34

  tax on poor, lottery as, 56

  teenagers, credit cards for, 41–44

  term life insurance, 69, 71

  Thatcher, Margaret, 190

  thirty-year mortgage, vs. fifteen-year, 172–174

  time, for budget planning, 58–59

  timing for home ownership, 137–138

  Total Money Makeover. See also Baby Steps

  mentality, 49

  motto, 5–7

  winners of challenge, 201–203

  Tote-the-note car lots, 26–28

  Tracy, Brian, 93

  trailers (mobile homes), 56–57

  trust, in spouse, 119

  truth-in-lending statement, 32

  U

  “underserved areas” programs, for student

  loan repayment, 163–164

  underwriting, 36

  universal life insurance, 55

  UPS, 161–162

  USA Today, 143, 156, 158

  used cars, or car payments, 30–32

  V

  Visa, 38

  Zero Liability policy, 39

  vision, 119

  W

  Wall Street Journal, 11

  warranty, for new car, 35

  wealth

  building, 3–4, 138–139

  for retirement, 143–145

  fun from, 182–184

  giving to others, 189–191

  impact of, 182

  for investing, 184–189

  quest for easy, 50

  quick acquisition programs, 52–54

  reaction to, 196–198

  uses for, 182

  Wealth Builder, 142

  wealth team, characteristics of members, 186

  Whole Life for babies, 157

  whole life insurance, 55, 70, 73

  will, 73

  Willard, Dallas, The Spirit of the

  Disciplines, 198

  women, security and, 133–134

  work

  extra hours, 118

  joy from, 141

  work-study programs, 161

  worksheets

  Allocated Spending Plan, 212–216

  Breakdown of Savings, 221

  Consumer Equity Sheet, 222

  Debt Snowball, 219–220

  Income Sources Recap, 226

  Irregular-Income Planning worksheet, 217–218

  Lump Sum Payment form, 223

  Major Components form, 224

  Monthly Cash Flow Plan, 209–211

  Pro Rata Debt List, 227–228

  Recommended Percentages, 225

  Z

  zero-based budget, 94

  0 (zero) percent interest, on car loans, 34–35

  Ziglar, Zig, 12, 92

 

 

 


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