I happen to receive a free copy of this book signed by the author last week.
This book give you the basics for Personal Finance 101. What interest me the most it gives you money rules to live by that can help you win with money.
The authors list her rules of thumb:
- Spend 25% or less of your gross income on housing (rent or mortgage), utilities, upkeep, house taxes, lawn care, etc.
This is the first I heard of this. I always felt that 25% was just for the house payment, not all household expenses. Smart, because when most people look for a house, they tend to concentrate more on the house payment than other little household expenses.
- Spend 10% or less of your income on car expenses, including your loan payment, gas, maintenance, etc.
I have to agree since cars go down in value. Therefore it should not take up a lot of your paycheck.
- Spend 10% or less on food and dining out.
I can agree with this also.
- Spend 10% or more for your financial freedom.
Not sure if this is short term or retirement savings.
Overall she list very details charts and expenses of where and how much should allocated. She gives good examples.
The book helps you get your entire financial life in order, from tithing to investing and understanding the mental aspects of money.
She discusses being on a spending plan and smart money strategies. She covers more on assets (hence the title) than debt. Although she does speaks about debt in the book, she speaks very little. She mainly concentrates on organizing financial practices and keeping it simple.
So if you are unorganized and need to get your finances in order. This books gives you simple practices for staying on track with your money.
This book is a very good read.
You can read more about the author Jan Dahlin Geiger here
Monday, October 22
Book Review: Get Your Assets in Gear
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3 cool comments:
Looks like the author needs a reality check. 25% on housing and 10% on food is unrealistic for someone earning minimum wage.
I agree that those types of percentage goals are not realistic--whether you're a low earner OR a high earner.
Take the car example. If you're young and/or a low earner your car insurance, car payment, and gas are almost certain to exceed 10% of your income, even if you have VERY good insurance and a VERY reasonable car payment. That's not necessarily a negative thing--you might need a car to get to your very good job which has huge potential for you. Who cares if you have to live with a roommate or not max out your Roth IRA for a few years in order to afford that car?
On the other hand, say you're a single, high earner who saves 25% of your income and has no dependents. Who cares if you want to spend another 25% of your income on your car collection?
There are just too many variables to broadcast those types of "spend 10% on this and 15% on that" rules. Everyone has different financial priorities and different circumstances that will make following any particular set of guidelines impossible.
Though I do enjoy looking at such parameters and comparing my spending to the recommendations. :-)
Personal finance is always "personal" it is know one size fits all.
I think she gives good basics to keep you organized with money. If you want to WIN with money those are the rules of thumb.
Car depreciate in value, therefore you do not want to go overboard unless you have the money to pay cash.
If you want a high net worth, you must be organized
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