3 Interesting Books That Helped Me Reach Financial Freedom

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The Total Money Makeover by Dave Ramsey

This book is famous for a reason: it’s absolutely incredible. In it, Dave discusses ways to get out of debt, build an emergency fund, and create a financially prosperous future for both yourself and your family.

If you have no money (or very little), Dave recommends following these three “baby steps” to begin the process of building a better financial future:

  • Start your emergency fund with a balance of $1,000. Why? 40% of Americans can’t afford an unexpected $400 expense. So, by putting a percentage of your paycheck aside toward an emergency fund, you’ll already be ahead of millions of people.
  • Pay off all debt (except the house) using a debt snowball. Start with the smallest debt and work your way up. The aim of this strategy is to give you a feeling of momentum as you’ll be paying off one debt after another. As long as you put one foot in front of the other, you’ll eventually make a lot of progress over time.
  • Save 3–6 months’ worth of expenses in an emergency fund. This will protect you against unexpected expenses, such as losing your job during a recession or large medical bills.

If you only read one book on this list, allow it to be The Total Money Makeover. Even if you’re a member of the working class and living paycheck to paycheck, it’ll probably help to improve your financial situation.

“ Keep paying minimums on all the debts except the smallest until it is paid. Every time you pay one off, the amount you pay on the next one down increases. All the money from old debts and all the money you can find anywhere goes on the smallest until it is gone. Attack! Every time the Snowball rolls over, it picks up more snow and gets larger, and by the time you get to the bottom, you have an avalanche.” — Dave Ramsey

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