The Lampo Group, Inc. 1749 Mallory Lane Brentwood, TN 37027 ...

The Lampo Group, Inc.
1749 Mallory Lane
Brentwood, TN 37027
Phone
615.371.8881
Toll Free
888.22.PEACE
Fax
615.371.5007

Welcome to the largest event
on personal finance in the
United States! Dave Ramsey is
a personal money-management
expert, an extremely popular
national radio personality and
best-selling author of The Total
Money Makeover, Financial
Peace, and More Than Enough.
Ramsey knows first-hand what
financial peace means in his own life—living a true rags-toriches-to-rags-to-riches
story. By age 26, he had established
a four-million-dollar real estate portfolio, only to lose it by age
30. He has since rebuilt his financial life and now devotes
himself full-time to helping ordinary people understand the
forces behind their financial distress and how to set things
right. Through his proven plan, Ramsey helps people eliminate
debt and credit cards, learn to budget, avoid bankruptcy, build
wealth, and find financial peace.
Ramsey founded The Lampo Group, Inc. to provide financial
counseling, through various means, to the public. More than
750,000 families have completed Financial Peace University,
with the typical family saving $2,700 and paying off $5,300
of debt. Over 650,000 people have attended a Dave Ramsey
Live event. Ramsey created Financial Peace Jr. and authored
six children’s books designed to help parents teach sound
financial principles to their children. Active in more than 5,000
schools in all 50 states, Foundations in Personal Finance
educates high school students on the importance of financial
planning and the dangers of debt. Ramsey’s syndicated
newspaper column, “Dave Says,” is read by over six million
readers weekly. The Dave Ramsey Show is syndicated to more
than 400 radio stations nationwide with more than 4.5 million
weekly listeners.
The Lampo Group, Inc.
Copyright © 1994, 2009
ALL RIGHTS RESERVED
First Printing Spring 1994
Updated July 2009, 5hr
This publication is designed to provide accurate and
authoritative information with regard to the subject
matter covered. It is sold with the understanding
that the publisher is not engaged in rendering legal,
accounting, or other professional advice. If legal
advice or other expert professional assistance is
required, the services of a competent professional
person should be sought.
—From a Declaration of Principles jointly
adopted by a Committee of the American Bar
Association and a Committee of Publishers
and Associations.
Published by The Lampo Group, Inc.
Our Mission Statement
“The Lampo Group, Inc. is providing
biblically based, common sense
education and empowerment which
gives HOPE to everyone from the
financially secure to the financially
distressed.”
For More Information
Please contact The Lampo Group, Inc.
at 888.22.PEACE or visit us online
at daveramsey.com

more resources available at:
The American Dream
Imagine if…
A 30-year-old couple made $48,000 a year and saved 15% ($7,200 per year or
$600 per month) in a 401(k) at 12% growth.
At 70 years old, they will have…
$7,058,863.50 in the 401(k).
Imagine if…
That same couple fully funded a Roth IRA at $5,000 each per year (a total of $10,000),
which would be $833 per month, at 12% growth.
At 70 years old they will have…
$9,803,937.87—TAX FREE!
What if…
That same 30-year-old couple, DEBT FREE, does both
At 70 years old, they will have…
401(k) $7,058,863.50
Roth IRA $9,803,937.87
Total $16,862,801.37
...and to think—this could be you.
3

Snapshots of America’s Finances
Wall Street Journal
Nearly 70% of consumers live paycheck to paycheck.
Gallup/Bankrate.com
68% of Americans could not cover a $5,000 emergency with
cash without having to go into debt for it.
U.S. Courts
Annual bankruptcy filings have almost doubled since the bankruptcy laws were
reformed in 2005, bringing us back over the one-million-per-year mark.
Federal Reserve and U.S. Census Bureau
The average American household has $91,000 in debt, and the total consumer
debt has doubled since 1980. In 1980, the total consumer debt was $1.3 trillion;
today, it is $2.6 trillion.
A Marist Institute Poll Published in USA Today
55% of Americans “always” or “sometimes” worry about their money.
Christian Financial Concepts
In 1929, only 2% of the homes in America had a mortgage against
them. By 1962, only 2% did not have a mortgage against them.
Multiple Studies
Conflict over money is still the leading cause of divorce today.
4 If you will live like no one else, later you can live like no one else

USA Today
Due to a lack of savings, 60% of the 77 million baby
boomers will not have the means to support their current
standard of living when they reach retirement.
AARP Poll
28% of Americans spent more time watching reality TV last month than they spent
planning and preparing for retirement over the past 10 years.
If you will live like no one else, later you can live like no one else.
5

Baby Step One
$1,000 in an Emergency Fund
“You must prepare yourself by previously
thinking out and practicing how to act on
any accident or emergency so you are
never taken by surprise.”
— Sir Robert Baden-Powell

Baby Step One
to start an “Emergency Fund.”
You must
money.
You must pay yourself .
Give, save, then pay .
$750,378
$1,000 One-Time Investment.
No withdrawal. Age 25 to 65 (40 years)
$400,000
$300,000
$200,000
Where you put your money
DOES MATTER!
$100,000
0
$10,285
$93,050
6% Return 12% Return 18% Return
8 If you will live like no one else, later you can live like no one else.

more resources available at:
Debunking the Myth
If you tell a lie or spread a
often enough,
loud enough, and long enough, the myth becomes accepted as
.
Debt has been
to us in so many forms and
so aggressively since the 1960s, that to even imagine living without
it requires a complete paradigm .
Myth: Car are a way of life, and
you’ll always have one.
Truth: Staying away from car payments by driving reliable
used cars is what the typical millionaire does. This is
they became millionaires.
Buy used! Check out used
car lots and look into repo
auctions, but the best deals
you can find are usually
from individuals.
Myth: You can get a good deal on a car.
Truth: A new car loses of its value
in the first four years. This is the largest purchase most
consumers make that goes down in value.
Do The Math
____.
A new car selling for $28,800 (2008 average) will lose about $17,280
of its value in the first four years, making it worth $11,520. You are
losing $360 per month in value!
If you will live like no one else, later you can live like no one else.
9

Myth:
your car is what sophisticated
financial people do. You should always lease things that
go down in value. In addition, there are tax advantages.
Truth:
Consumer Reports, Smart Money magazine, and a
good calculator will tell you that the car lease is the
most
way to finance and operate a
vehicle.
Myth:
You need to take out a credit card or car loan to “build
your
.” You must build your
FICO score to prosper.
Truth: The FICO score is an “I debt”
score. Why would you want to go into debt so you have
the opportunity to go further into debt
Myth: You need a credit card to a car, check in
to a hotel, or make a purchase over the phone or web.
There’s not a single
credit card that offers
anything near 12% to 18%
“cash back!”
Truth: A card will do all of that, except
for a few major rental companies. Check in advance.
Myth: “I pay mine off every , with no annual
fee. I get brownie points, air miles, and a free hat.”
Truth: Over 100 million Americans do pay
off the balance every month.
10 If you will live like no one else, later you can live like no one else.

Truth:
You spend more when you use plastic because
spending cash .
According to Sallie Mae,
82% of college students
don’t pay off their credit
card balances every month.
Myth: I’ll make sure my gets a credit
card so he/she can learn to be responsible with money.
Truth: Teens are a huge of credit
card companies today. Anyone with half a brain
realizes how stupid this myth is.
Myth: Debt is a and should be used
to create prosperity.
Truth: The borrower is to the lender.
How much could you
, invest, blow, and
if you had no payments
Survey Says...
When surveyed, the
Forbes 400 were asked
“What is the most
important key to building
wealth” 75% replied that
becoming and staying debt
free was the number one
key to building wealth.
Remember: Change is a Process!
Change is a , not an ,
and yet we worship the event in our culture.
We
the process.*
the event and we
* From John Maxwell’s The 21 Irrefutable Laws of Leadership, “The Law of Process”
If you will live like no one else, later you can live like no one else.
11

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CHANGE
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Budget forms you can personalize to learn to
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Baby Step Two
Pay Off All Debt with the Debt Snowball
“Do not accustom yourself toconsider
debt only as an inconvenience;
you will find it a calamity.”
— Samuel Johnson

Baby Step Two
Pay off all debt using the “ .”
Proverbs 6:4–5 (NKJV)
Give no sleep to your eyes, nor slumber to your eyelids. Deliver
yourself like a gazelle from the hand of the hunter, and like a bird
from the hand of the fowler.
So get Gazelle
! Then follow these…
Steps Out of Debt
1. You must money.
2. Quit more !
3. really works.
eBay has a huge following,
but also check out sites like
craigslist.org and kijiji.com
that don’t have a seller’s
fee. Of course, there’s
the old standby—the
garage sale.
4. something.
5. Take a part-time .
16 If you will live like no one else, later you can live like no one else

more resources available at:
The Debt Snowball
List your debts in order, from the smallest balance to the largest. Don’t be concerned with
interest rates, unless two debts have a similar payoff balance. In that case, list the one with
the higher interest rate first. As you start eliminating debts, you’ll start to build some serious
momentum. These quick wins will keep you motivated, so you’ll be able to stay on track.
The idea of the snowball is simple: pay minimum payments on all of your debts except for the
smallest one. Then, attack that one with gazelle intensity! Every extra dollar you can get your
hands on should be thrown at that smallest debt until it is gone. Then, you attack the second
one. Every time you pay a debt off, you add its old minimum payment to the next debt in the
snowball. So, as the snowball rolls over, it picks up more snow. Get it
The “New Payment” is the total of the previous debt’s payment PLUS the current debt’s
minimum. As these payments compound, you’ll start making huge payments as you work
Debt Snowball (Form 10)
down the list.
Total Minimum New
Item Payoff Payment Payment
____________________________________ ___________ ___________ ___________
____________________________________ ___________ ___________ ___________
____________________________________ ___________ ___________ ___________
____________________________________ ___________ ___________ ___________
____________________________________ ___________ ___________ ___________
____________________________________ ___________ ___________ ___________
____________________________________ ___________ ___________ ___________
____________________________________ ___________ ___________ ___________
____________________________________ ___________ ___________ ___________
____________________________________ ___________ ___________ ___________
If you will live like no one else, later you can live like no one else
____________________________________ ___________ ___________ ___________
17

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Insist that your church get
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Dave Ramsey’s Generation Change is a
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Baby Step Three
3 to 6 Months of Expenses in Savings
“Thatch your roof before rainy
weather; dig your well before you
become parched with thirst.”
— Chinese Proverb

Baby Step Three
months of expenses in savings.
According to a 2008 survey
by the National Foundation
for Credit Counseling,
roughly 76 million adults say
they do not have any
non-retirement savings.
Of those who do have a
cash fund, 61% don’t have
enough to cover three
months of income.
Emergency funds must be easy to access, or .
Market accounts are easily accessible,
often have no penalties for early withdrawals, and often have
check-writing privileges.
Remember...
A fully funded emergency fund is not a wealth-building tool.
It will rain, and this will be your umbrella.
Emergency Fund Savings
Men: “Boring, not sophisticated .”
Women: “Most
key to our financial plan.”
An emergency fund can turn a
an inconvenience.
into
You should save for three basic reasons:
1.
2.
3.
20 If you will live like no one else, later you can live like no one else

Baby Step Four
Invest 15% of Income into Roth IRAs and Pre-Tax Retirement Plans
“Preparation for old age should begin
no later than one’s teens. A life which
is empty of purpose until 65 will not
suddenly become filled on retirement.”
— Arthur E. Morgan

Baby Step Four
Invest
and pre-tax retirement.
of household income into Roth IRAs
The question isn’t at what
age I want to retire, it’s at
what income.
— George Foreman
It has been said that Albert Einstein called
interest the eighth wonder of the world.
$100 per month from age 25 to 65 at 12% = $ .
IRAs and
secret government formulas to wealth.
are
YOU MUST START !
And there are a million reasons why.
Why 15%
Don’t invest more than 15%. The extra money will help you with the
next two baby steps. But don’t invest less either. You’ll miss out
on some of the power of compound interest.
22 If you will live like no one else, later you can live like no one else

Age Ben Invests Arthur Invests
19 $2,000 $2,240 0 0
20 $2,000 $4,749 0 0
21 $2,000 $7,558 0 0
22 $2,000 $10,706 0 0
23 $2,000 $14,230 0 0
24 $2,000 $18,178 0 0
25 $2,000 $22,599 0 0
26 $2,000 $27,551 0 0
27 0 $30,857 $2,000 $2,240
28 0 $34,560 $2,000 $4,749
29 0 $38,708 $2,000 $7,558
30 0 $43,352 $2,000 $10,706
31 0 $48,554 $2,000 $14,230
32 0 $54,381 $2,000 $18,178
33 0 $60,907 $2,000 $22,599
34 0 $68,216 $2,000 $27,551
35 0 $76,802 $2,000 $33,097
36 0 $85,570 $2,000 $39,309
37 0 $95,383 $2,000 $46,266
38 0 $107,339 $2,000 $54,058
39With only a $16,000 0 $120,220 $2,000 $62,785
40investment, Ben 0 $134,646 $2,000 $72,559
41has saved over 0 two $150,804 $2,000 $83,506
42million dollars 0 for $168,900 $2,000 $95,767
43retirement!
0 $189,168 $2,000 $109,499
44 0 $211,869 $2,000 $124,879
45 0 $237,293 $2,000 $142,104
46 0 $265,768 $2,000 $161,396
47 0 $297,660 After investing $2,000 $183,004
48 0 $333,379 $78,000, Arthur $2,000 $207,204
49 0 $373,385 still never caught $2,000 $234,308
50 0 $418,191 up with Ben! $2,000 $264,665
51 0 $468,374 $2,000 $289,665
52 0 $524,579 $2,000 $336,745
53 0 $587,528 $2,000 $379,394
54 0 $658,032 $2,000 $427,161
55 0 $736,995 $2,000 $480,660
56 0 $825,435 $2,000 $540,579
57 0 $924,487 $2,000 $607,688
58 0 $1,035,425 $2,000 $682,851
59 0 $1,159,676 $2,000 $767,033
60 0 $1,298,837 $2,000 $861,317
61 0 $1,454,698 $2,000 $966,915
62 0 $1,629,261 $2,000 $1,085,185
63 0 $1,824,773 $2,000 $1,217,647
64 0 $2,043,746 $2,000 $1,366,005
65 0 $2,000
$2,288,996 $1,532,166
Ben & Arthur
Ben and Arthur both
save $2,000 per year
at 12%.
Ben starts at age 19
and STOPS at age 26.
Arthur starts at age
27 and STOPS at age
65 … and he never
caught up.
If you will live like no one else, later you can live like no one else
23

Give portions to seven,
yes to eight, for you do not
know what disaster may
come upon the land.
— Ecclesiastes 11:2 (NIV)
Understanding Investments
A. Diversification
Diversification means to .
Diversification
risk.
I’m putting all my money
in taxes. It’s the only thing
guaranteed to go up.
— Mark Twain
B. Mutual Funds
Investors pool their
to invest.
Professional portfolio managers manage the pool or
.
Your return comes as the
.
of the funds is
Mutual Funds are
term investments.
C. Diversify in Fund Types / Invest
25% in and funds.
25% in funds.
25% in funds.
25% in Aggressive funds.
24 If you will live like no one else, later you can live like no one else

...because at age 65, the adventure has just begun.
to purchase, visit:

Baby Step Five
College Funding
“The direction in which education starts a
man will determine his future life.”
— Plato

Baby Step Five
College
First Rule of College: .
Take the time to
attending college.
the cost of
The average college student graduates with
in student loan debt (includes graduate and undergraduate).
Student Loans
Finaid.org reports that 70% of all students—graduate and
undergraduate—borrow money for school expenses.
An Education Savings Account (ESA), or “Education
,” funded in a growth stock mutual fund is best.
According to a 2008 study
by Sallie Mae and Gallup,
only 9% of families use
college savings funds like
ESAs and 529s.
What about 529s
529s are less flexible and should be used only if you make more
than $200,000 annually and/or have maxed out your ESA.
and
tuition are not smart investments because the rate of return is low.
28 If you will live like no one else, later you can live like no one else

...because your kids deserve a debt-free start.
Baby Step Six
Pay Off Your Home Early
“A mortgage casts a shadow
on the sunniest field.”
— Robert Green Ingersoll

Baby Step Six
Pay off home .
The best mortgage is the
one you never have! But
if you must take one out,
your best option is a 15-year
fixed, and payments should
be no more than 25% of
your TAKE HOME PAY.
What could you do if you had
payments
Myth: It is wise to keep my home mortgage to get the
deduction.
Truth: Tax deductions are no .
Myth: Borrowing on my at low rates,
and investing to make more, is sophisticated and wise.
Truth: After adjusting for taxes and ,
there is no real net return.
A $200,000 Mortgage at 6% Interest
30 Years
15 Years
Cash
You pay back the loan amount, in addition
to $231,683 in interest.
You pay back the loan amount, in addition
to $103,797 in interest.
You pay 0% in interest.
30 If you will live like no one else, later you can live like no one else

Do Not Be Conformed
And do not be conformed
to this world, but be
transformed by the
renewing of your mind.
— Romans 12:2 (NKJV)
The Definition of Insanity
Doing the same thing over and over again,
expecting a different result.
People do not get the best use of their money and/or they have
money problems for two reasons:
1.
2. Reflection of character
The flow of money in your life and relationships represents the
you operate.
under which
Financial Problems
Men lose
is a .
because with men, money usually
Women face
, or even
, because usually with women money
represents .
32 If you will live like no one else, later you can live like no one else

Singles and Their Money
Time
(no time) and fatigue can lead to poor
money management.
Beware of
by
buying, which can be brought on
or the “I owe it to myself” syndrome.
Prevention—You Need a Personal Trainer!
Develop an
relationship.
• Someone to discuss major
with.
• Someone to discuss your
with.
Probably the world’s
greatest humorist was
the man who named them
easy payments.
— Stanislas
• Accountability friends must love you enough to be brutally
honest and promise to do so for your own good.
• Suggested possibilities: pastor, parent, relative, boss, etc.
For which of you, intending
to build a tower, does not
sit down first and count
the cost, whether he has
enough to finish it.
— Luke 14:28 (NKJV)
If you will live like no one else, later you can live like no one else
33

Written Workout Routine
You must have a written
plan.
A budget is when you say, “ me the money.”
Most people hate the word “budget” because it has a
and
connotation, and
they never had a budget that .
A good cash flow plan should be a
based plan.
A practical tool is the
system.
A written plan removes the “management by ”
from your finances so the money works harder.
How many marriages
would be better if the
husband and the wife
clearly understood that
they’re on the same side
— Anonymous
Important!
A written plan, if actually lived on and agreed on, will remove
much of the guilt, shame and fear that may now be part of any
necessity purchases like food and clothes.
A written plan gives the
person
empowerment, self-accountability and .
34 If you will live like no one else, later you can live like no one else

more resources available at:
A written plan, if actually lived and agreed on, will remove
many of the
from your
marriage, and add a new level of unity to your marriage.
The
likes the budget because it gives them
control, and they feel like they are taking care of loved ones.
The
can appear irresponsible to nerds.
spirit feels controlled (not cared for) and
If you will live like no one else, later you can live like no one else
35

Baby Step Seven
Build Wealth and Give!
“There is a wonderful mythical law of
nature that the three things we crave
most in life—happiness, freedom, and
peace of mind—are always attained by
giving them to someone else.”
— Peyton Conway March

Baby Step Seven
Build Wealth and !
The most powerful wealth-building tool is your .
Wealth is not an escape mechanism, it is a tremendous
.
Proverbs 13:22 (NKJV)
A good man leaves an inheritance to his children’s children.
Have , , and
.
Giving is possibly the most
with money.
you will ever have
No one would remember
the Good Samaritan if he
didn’t have money.
— Margaret Thatcher
A Paradox: Wealth will make you more of what you are.
Psalm 62:10 (NKJV)
If riches increase, do not set your heart on them.
38 If you will live like no one else, later you can live like no one else

...because this is the way life should be.
Emergency Fund
$1,000 to start your emergency fund
The Debt Snowball
Pay off all debt using the debt snowball
Fully Funded Emergency Fund
Three to six months of expenses in savings
Retirement
Invest 15% of household income into
Roth IRAs and pre-tax retirement
College Fund
College funding for children
Pay Off Mortgage
Pay off home early
Build Wealth and Give
Invest in mutual funds and real estate, and give money away

Answer Key
Baby Step 1
$1,000
Save
First
Bills
Myth
Truth
Marketed
Shift
Payments
How
New
60%
Leasing
Expensive
Credit
Love
Rent
Debit
Month
Not
Hurts
Teenager
Target
Tool
Slave
Save
Give
Process
Event
Over-estimate
Under-estimate
Baby Step 2
Debt Snowball
Intense
Save
Borrowing
Money
Prayer
Sell
Job
Baby Step 3
3–6
Liquid
Money
Enough
Important
Crisis
Emergency Fund
Purchases
Wealth Building
Baby Step 4
15%
Compound
1,176,477
Roth
401(k)s
Now
Spread Around
Lowers
Money
Fund
Value
Increased
Long
Growth
Income
Growth
International
Growth
Baby Step 5
Funding
Pay Cash
Research
$42,406
IRA
Savings Bonds
Pre-Paid
Baby Step 6
Early
No
Tax
Bargain
Home
Risk
Ignorance
Short Fall
Value System
Self-Esteem
Scorecard
Fear
Terror
Security
Poverty
Impulse
Stress
Accountability
Purchases
Budget
Cash Flow
Show
Bread
Water
Worked
Zero
Envelope
Crisis
Single
Control
Money Fights
Nerd
Free
Baby Step 7
Give
Income
Responsibility
Fun
Invest
Give
Fun
CHANGE
STARTS
HERE
TO YOUR COMMUNITY
PLACES LIKE:
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