Unlike many of the personal money management books out there, this book is a quick, easily digested read that focuses more on the qualitative side than the quantitative side of personal money management. The principles are not from a text book. Rather, they are practical principles learned by the author as he navigated through his financial life. Many are unorthodox in order to be memorable and provoke deeper thought by the reader.
LIFE LESSON
1: Marry the “financially right” person
2: Stay married to the “financially right” person
3: Having and raising children costs lots of money
4: Always live below your means
5: Take care of your “stuff”
6: Expand your circle of friends/associates and keep in touch with them
7: You take away more from your first couple of jobs than you give
8: Spend just one hour each week learning about personal finance
9: Get rich slowly
10: Set (realistic) short-term financial goals
11: Set (realistic) long-term financial goals
12: Always know the score—your net worth
BUDGETING AND SAVING LESSON
13: Develop a written budget and evaluate it every single month
14: Give yourself an annual financial physical
15: Save/invest 50 percent of every salary increase
16: Save 90 percent every bonus (or nonplanned income)
17: Understand your employee benefits; they are worth significant dollars
18: Always have an emergency fund
19: Have an emergency month every January
20: Coupons make $ense
21: Shop around for discounts on all products and services
22: Make sure you mail in your rebate offers right after your purchase
23: Have a saving versus a spending mind-set
SPENDING LESSON
24: Don’t try to keep up with the Joneses; they’re going bankrupt
25: Don’t underestimate the cost of ownership
26: Prioritize your spending
27: Stay away from “great deals” that really aren’t
28: Stay away from “small bargains” that really aren’t
29: Determine what everyday products and services are important to YOU
30: Make sure the luxuries you afford yourself are truly important to YOU
31: Before you buy anything expensive, STOP and think about whether you really need it
32: Drop “unhealthy” spending habits
33: Know what your monthly bills are, and take action when they are increased
34: Pay all your bills ON TIME every single month
35: Don’t forget to pay the government—on time
36: It’s OK to overpay the IRS (by a little) over the course of a year
37: Check every bill you get, especially those for health care
38: Review and keep all your receipts
39: Buy a car that fits in your current budget
40: Purchase last year’s model on high-ticket items
41: Negotiate everything
42: Spend now to save later
DEBT AND CREDIT CARD LESSON
43: Debt is bad
44: If you are in debt, get out of it quickly
45: Just say no to credit cards; do not get a credit card in college
46: After college, have a maximum of only one credit card
47: If you have to have one credit card, pay the balance every month
48: Develop and maintain a good credit rating
49: Maintain a good FICO score
50: Understand the time value of money
INVESTING LESSON
51: Manage your own money
52: Don’t fall for “get rich quick” schemes
53: Don’t look for the financial home run; singles and doubles result in the long-term win
54: Don’t invest in just a few stocks (or investments)
55: Don’t play “hunches” in the stock market and don’t invest in a friend’s “can’t miss” tip
56: Easy investment management at a young age: purchase three or four stock index mutual funds
57: Always buy no-load rather than load mutual funds
58: Invest in your 401K—at least to the company match
59: Don’t invest with family and friends (or loan them money)
HOUSING LESSON
60: Renting—Rent, don’t buy (until you’re settled)
61: Renting—Budget 25 percent of your gross salary (maximum of 30 percent)
62: Renting—If you have paid one month’s security deposit, don’t pay your last month’s rent
63: Buying a house—Buy less house than you can afford
64: Buying a house—The top two considerations are location and price
65: Buying a house—Evaluate the house using specific criteria
66: Mortgage—Make sure your down payment is at least 20 percent of the purchase price
67: Mortgage—Make sure your monthly payment doesn’t exceed 28 percent of your gross salary
68: Mortgage—Shop around for interest rates
69: Mortgage—Get a fifteen-year mortgage
INSURANCE LESSON
70: Always choose the highest deductible for home and automobile insurance
71: Renter’s insurance—Don’t forget to get it
72: You must have health insurance
73: Term life insurance works best for young adults
QUICK TIPS
74: If it’s offered, take the house down payment (or the big check) versus the big wedding
75: Don’t invest your time and money in multi-level marketing programs
76: Drive your car until it drops
77: Read your automobile manual cover to cover
78: Don’t purchase extended warranties on cars, electronics, appliances, and televisions
79: Don’t buy premium gas for your car—it’s just not worth it
80: Don’t ever do “rent-to-own”
81: It’s OK to buy grocery/drug generic products, and doing so saves you lots of money
Principal 82: Bring your lunch to work as often as possible
83: Don’t purchase the first generation of a product; wait until the second, third, or fourth
84: Invest in surge protectors for your expensive electronics
85: Invest in a fireproof safe
86: Set up a home filing system to keep track of all your financial records
87: Manage your electric bill
88: Learn how to fix “things”
89: Read every line of every contract you sign
90: Avoid lawsuits unless absolutely necessary
91: Make no oral agreements for any significant purchase or sales
92: Get your books at the library
93: Reconcile your checking account every month, don’t bounce your checks, and use only your bank’s ATM
94: Set up both a checking and a savings account
95: There is no such thing as free checking
96: Get a good accountant (whom you can trust)
97: Use cash as often as possible
98: Approach your job following the three P’s: passion, politeness, and persistence
99: Successful personal money management is all up to you
