If you grew up with parents who were responsible with money and taught you how to manage that money and perhaps even how to invest, count yourself lucky. Unfortunately, many kids grow up watching their parents mismanage money, and then as adults they do the same thing.
Barb Friedberg, who is a portfolio manager and university finance instructor as well as author of the personal finance blog, Barbara Friedberg Personal Finance, seeks to educate people about personal finance. On her blog, she breaks down personal finance into small manageable pieces of information, and at the end of each blog post, she gives action steps readers can take.
Her new book, How to Get Rich: Wealth Building for the Financially Illiterate, is just as easy to understand. At only 108 pages, it’s a quick read. However, it’s also filled with vital information.
Key Points in the Book
The two biggest takeaways I got from the book are that if you want to be wealthy, you must get rid of debt (and stay out of debt after you’re debt free) and make saving a regular practice.
We all know that debt is bad for our finances, but Friedberg does an excellent job driving home this point. Too many people just look at the monthly payment instead of the overall price of the item that they are purchasing. Have you considered how much the interest will add to the purchase overall? Chances are you’ll be shocked if you did the math.
To save regularly, Friedberg recommends having automatic withdrawls taken out of your paycheck. We did this with my paycheck before I quit my full-time job, and I can honestly say that we missed the money at first, but then I didn’t even notice it was gone. Meanwhile, the money grew in our savings account. This is the easiest way to save.
Another important chapter in the book is on spending. Friedberg says it’s okay to spend as long as you spend intelligently. Look for discount codes. Buy expensive items during seasonal clearances and save 75% to 90% off. You can dress just as nicely as the Jones’ and drive a nice car comparable to theirs, but buy smart and you’ll have more money in your wallet.
Is This Book Right for You?
I wouldn’t consider myself financially illiterate, but I did enjoy reading this book. Friedberg rejuvenated my desire to pay down our debt and get out of debt forever. I also found encouragement that it’s not too late for us to be rich, or at least comfortable in our retirement.
If you’re struggling with your finances, this is the book for you. Friedberg gives advice in simple, understandable terms, and she is also encouraging.
With graduations right around the corner, this would also make a great gift for a high school or college graduate as well as a newly married couple. Getting on the right financial track at a young age makes it easier to become wealthy.
Barbara Friedberg has agreed to give two lucky Mom’s Plans’ readers a hard copy of her new book.
To enter, simply like Barbara Friedberg on Facebook and then leave a comment here stating that you did so.
This giveaway, which is open to U.S. residents 18+, will end on May 16th at 11:59 p.m. CST. The winner will be chosen via random.org.
I received one copy of the book for review purposes only. No other compensation was given. All opinions are my own.