I want to recommend a book I've recently read that has helped me out considerably to better understand, and more importantly, take control of my personal finances and investments.
The book is called "I will teach you to be rich" by Ramit Senthi. Now, before you let the title of the book trick you into thinking this is some get rich quick scheme, you can throw that out right now. Ramit's personal definition of "rich" is varied and not based on literal money in the bank. You're "rich" when you have money for the things you want in life and money for your future, not by how many zero's are in your bank account.
If I ask you these series of questions, and you answer no or I don't know to most or all of them (or if yes is the bad answer, haha), then I am speaking directly to YOU when I say read Ramit's book and finally come to understand your finances and how you can take control!
Do you know the details of your checking\savings\credit cards?
- Are you paying yearly fee's on your checking account?
- Do you know the interest rate on your savings account?
- Are you paying yearly fee's on your credit cards?
- Do you know the APR on your credit cards?
Are you saving or investing your money?
- Do you know what a 401K account or a Roth IRA account is? If yes, are you investing into one?
- Do you think that "investing" means buying stocks? Do you think you can't invest?
- Do you know how to automate your accounts to invest in a "set it and forget it" fashion?
Do you know where your money is going?
- Are your high interest credit cards being paid reguarily?
- Do you keep a budget or do you know when all your bills are due?
- Do you know how to cut costs and save without having to be that guy that never buys Starbucks again or never goes out with friends?
And the most important question of all... are you actually doing something about your finances? Or are you like most of the rest of us and, rather than do at least something, you're not doing anything at all, or at least very, very little.
I can answer all of those questions about myself and my finances and feel very good about my answers. Since reading Ramit's book, I've had the APR on my two credit cards reduced (from 14% to 12.5% on one and from 12% to 5% on the other... and I made only one phone call to each credit card to get my APR reduced!), I've setup a high interest online savings account. I've started a RothIRA account and rolled my old 401K account (that is not receiving any more investment dollars) into it and will soon roll my other 401K account into that as well. I've cut costs in my daily life, but yet I have more money than ever. Ramit's book has taught me what I needed to know about personal finance... the different parts, the descriptions, the "how-to's", and the goods and the bads. I've learned, most importantly, that you don't need alot of money to save for your future and you don't need to bust your balls maintaining it. Save for what you want and cut out the rest!
I started reading Ramit's blogs on his website (same name as the book) and I was instantly interested because of his directness, his good advice, and the fact that Ramit talks like someone I feel I might know personally and about things that directly relate to my life. He doesn't talk or sound like some boring, stuffy old finance guy, and he knows what's happening in our, younger, daily lives. So when I saw his book was coming out, I pretty much knew I had to get it and finally get some understanding of what's happening to my finances... or I might say what was NOT happening to them.
If you're sinking in debt... if you're trying to invest for your retirement... if you're planning to save money for a wedding\downpayment for a house\vacations... then Ramits book "I will teach you to be rich" is the PRIMER for your financial future. This is the book for all of us who just want to know more about our money and how to make it work for us!
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