In this series we take an article or book and explain a thought arising from “The Good Read”. This month, we look at the book “The Total Money Makeover” by Dave Ramsey. The book suggests that knowledge on financial matters does not, in isolation, help build financial fitness. The book seems to be part of a growing understanding that there is an “action gap” which needs filling between financial knowledge and financial decision making.

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One random thought arising is equating the “action gap” which currently exists between financial literacy and financial action, with the precedent which existed in fitness and health. In our article we look at how physical fitness filled the action gap creating an ingrained set of habits for people to choose to follow- or not. A similar pattern is developing as financial literacy is turned into financial fitness.

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