Money ought to be spent frugally. Having been bankrupt once I realize the worth of every penny. In my view it is firstly important to understand the difference between “need” and “want.” Once this step is understood and inculcated in lifestyle then I think the book The total money makeover by Dave Ramsey will make more sense.

The book is only two hour long listen. I heard it on Storytel app. It is narrated by the author himself. The author pumps in a lot of energy as you go in listening to him. He motivates you and makes you sit up and draw a money map for yourself.

The foremost step he stresses on his overcoming self-denial. Fear and anxiety that the word “money” brings in us needs to be dealt with. Acceptance is the key here. Accept that you have a money problem and then begin solving it.

Next he says that spending on unnecessary luxuries. Simply put, show-off won’t get us anywhere. Opinions of others shouldn’t matter, prioritizing your financial goal should.

In a few logical steps he makes us understand what should be done and what shouldn’t when it comes to your earnings and expenditure.

Here are a few key takeaways from the book that will help you understand how to double your money.

1. Budgeting is important.
2. The author stresses that we have atleast $1000 as an emergency fund if you income is more than $ 20,000 and $500 if it is less than $20,000.
3. Make sure your emergency fund covers expenses atleast upto 6 months.
4. Clear your debts. Go in an ascending order, clearing the smaller debts first.
5. Invest 15% of your income for your retirement.
6. Save up for your or your kid’s education. If you can’t manage that, try getting scholarships.
7. Invest in mutual funds.

Though I have summarized the key points here but there is a lot to grasp from this book. One should give it a listen/read because adulting is difficult.

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