Book Review – Financial Peace Revisited

Dave Ramsey’s latest major book, “The Total Money Makeover,” has been a bestseller for several years. It is the best book of his today. Plus, it’s one of the best personal finance books out there. Before that book, the book “Financial Peace” was created as a self-published book. Then, it became a bestseller and has been reviewed and revised.

There is something soothing and calming about the title, “Financial Peace.” Everyone has a financial life, be it good or bad. Everyone (if they want to admit it) wants to have peace in their financial life. As Dave Ramsey constantly mentions, personal finance is more personal than financial. There are a lot of emotions (and some logic) evoked when talking about personal finance.

It seems that most people handle their personal finances the same way they handle everything else in their lives. There are many complications, confusions, even negligence, indifference, good intentions and other mixed emotions and feelings.

This book addresses many of those topics, especially how money affects our relationships (and how our relationships affect our handling of money). The principles may seem simplistic, like KISS (Keep It Simple Stupid), but they are crucial to being successful in your personal finances. The Simplicity Principle (or KISS) is primarily a matter of dealing with cash and not credit. When we live on cash, then we don’t have to worry about interest rates, finance charges, fees, etc. We have simplified our lives for the better. As Dave Ramsey would say, we don’t have to worship at the altar of the almighty FICO score. This also applies to co-signing loans. When we co-sign a loan, we are practically taking on the burden of paying someone else’s debt. By keeping our personal finances simple, we are respecting the other person as much as ourselves.

Another key principle that the book addresses is the power of contentment. Contentment allows us to refrain from spending on things we don’t need or even care about. Being happy would allow you to have fewer things you don’t need but have more cash. The book discusses this principle extensively and vividly to enable you to be successful in your personal finances.

Also, money affects our relationships. It is critical and crucial not to borrow from anything or anyone, especially (and very especially) friends or family. The close relationship; the most important thing is not to borrow from that person. Owing someone money changes the entire dynamic of that relationship.

This is a good book to read about personal finance. When you apply the principles, you will gain that elusive financial peace of mind.

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