The Complete Idiot's Guide to Managing Your Money
New + Pristine
!!! A Perfect Gift !!!
This
book was a gift that was immediately packed away in an air-tight
container during a move, and then forgotten about by my parents
The binding is tight
No shelf wear
The original price tag is on the lower back cover; it can probably be easily removed
The Complete Idiot's Guide to Managing Your Money, 4th Edition: Solid advice on getting out of debt and making the most of your money, by Robert K. Heady and Christy Heady, with Hugo Ottolenghi, (Alpha, a member of Penguin Group, USA, Inc.) Fourth Edition.
Useful stuff can come in small packages! In 94 small pages (I read the "digest version" which I purchased for $2.95 at the grocery store checkout) with lots of white space, section divisions, bullet points and icons, you can cover a lot of ground with very little effort. When tackling a new subject, I often like to read small books before the big ones, just to familiarize myself with the territory.
Author Robert Heady was the founding publisher of Bank Rate Monitor. His daughter Christy is a financial columnist who writes nationally syndicated columns.
It's divided into six chapters:
Chapter 1: Financial Planning Made Simple
Commit yourself to doing something about your finances. Make financial decisions regularly. Learn to enjoy making decisions! Right or wrong, you learn something as you go. Go ahead, do your homework and make those financial decisions that you've been putting off.
Set some short-term and long-term goals and stick to your plan.
Example Short-Term Goals:
Pay off your credit cards
Build up an emergency fund
Buy a house
Save for a European Vacation
Example Long-Term Goals:
Pay for your kids' college
Retire wealthy
Beside each goal, write how much money it will take to accomplish that goal.
Chapter 2: Managing the Debt Monster
Determine your net worth by subtracting your liabilities (what you owe) from your assets (what you own). Rules of thumb:
"Current assets should be approximately two times greater than current liabilities."
"...your monthly debt should not exceed 36 percent of your monthly income."
Find out where your money is going on a monthly basis in categories such as Housing, Cars, Clothing, Food, Medical, Education, Gifts, etc.
Create a spending plan (budget) and stick with it! This is the way to take control of your finances!
If you're overspending, find ways to cut back. For example, the average American spends around $5,000 a year eating out!
Establish an emergency fund of about three months of living expenses so that you don't have to get into debt to bail yourself out of a crisis.
If you're over your head in debt:
Contact your local Consumer Credit Counseling Service. 1-800-388-CCCS. Or, the National Center for Financial Education.
If you're talking to deal with another company, make sure they're a member of either the National Foundation for Credit Couseling or the Association of Consumer Credit Counseling Agencies. Also, the local Chamber of Commerce. The best ones are nonprofit corporations. Don't go if its phone number isn't listed or you can't visit its offices. Make sure it will provide a complete list of its fees and charges.
Paying a minimum amount on your credit card each month is a raw deal over time. Example: You've got a $3,000 balance on your 18 percent credit card. Each month, you pay 2 percent of the balance. At that rate, you'll pay $7,587 over 36 years!
Some ways to escape the debt trap:
Stop ignoring your debt. It won't go away by itself. Start dealing with it now, before the problem gets worse.
Track your spending to find out where your money is going.
Cut back where you can. Cutting back on those small, regular expenses, like eating out, can make a huge difference.Many creditors will reduce their rates and fees if you ask.
Always pay more than the minimum amount due on your credit cards.
Save toward expenses that don't occur every month, like insurance, vacations, birthdays and Christmas.
Borrowing more money to consolidate your debts often leads to worse debt. Most people return to their bad habits once they get their new loan. A home equity loan puts your home at risk.
Don't dip into your retirement, like your 401 (k).
Realize it will take some time. Be patient. You probably didn't get in debt over night. It will take some time to get out of debt as well.
Bankruptcy is a last resort, not an easy alternative.
Some ways to stay out of debt:
Don't buy now and pay later.
Don't get cash advances. Some charge up to 32 percent, plus a transaction fee!
Pay your bills on time. Always.
Chapter 3: Everyday Money Language You Should Know
Know where to go for accurate financial information.
Newsletters and Websites
Hulbert Financial Digest, at www.marketwatch.com .
More specifically:
http://www3.marketwatch.com/Store/products/hfd_profile.aspx?dist=top10hfd&cat=mf
Let's say that a friend told you that you ought to subscribe to somebody's financial newsletter to get good advice about your investments. Mark Hulbert has done a tremendous service by reviewing the advice of over 160 financial newsletters, showing how their forecasts, predictions and recommendations turn out over time. Cost: $25 for a report on one newsletter. Potential savings from bad advice and bad investments: megabucks.
Choose your advisors carefully. According to Hulbert, "over 80% of advisory letters fail to beat the market over the long term." (From Hulbert site)
Always from a non-smoking + pet-free place
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