Practical Advice to Become Financially Independent
- Paperback: 111 pages
- eBook edition for Kindle on Amazon
- Publication Date: December 10, 2018
If you are looking for a get-rich-quick scheme, this book is not for you. On the other hand, if you are looking for a practical approach with real-world advice that you can start implementing today, then this is the book for you.
I divided this book into four sections: Cash, Credit, Investments, and Risk.
I wrote this book so that there would be something in there for everyone: Cash and Credit will be the most valuable if you are just starting out; Investments and Risk will be more valuable if you’ve established yourself but are worried about protecting what you have built.
The most important thing was to keep it light and honest. The best financial advice isn’t worth anything if it is so dense that no one follows through.
As an example, here is my favorite paragraph from the book:
“Well, I do not care about your feelings. This is not a book help you feel good about yourself by making bad financial decisions. This is a book to help you become good with money, stop living paycheck-to-paycheck, stop paying for money, and start getting paid for the money you have.”Part 2: Managing Credit
Inside the Book
1. Managing Cash: Being trapped living paycheck-to-paycheck is absolutely awful. Find out how to break the cycle by treating personal finances like a small business. Nobody likes budgets, and any personal financial advice that starts with “create an in-depth budget” is the worst. This approach does not require building a budget for groceries, lattes, or anything else! Instead, separate income from expenses and watch your savings grow.
2. Managing Credit: The interest rate you pay when you borrow money depends significantly on your credit report and your credit score. This book outlines a specific strategy to build a credit report with a step-by-step checklist to build your FICO score and lower the cost of borrowing money.
3. Managing Investments: Investing is not gambling. If your strategy leaves you hoping that markets go up and scared that they will go down, then you are gambling. Instead, learn how to build a strategy that works when the market goes up and when it goes down. You can build a portfolio that systematically and regularly pays you for having money. A strategy that will actually pay you more as you get older and further into retirement.
4. Managing Risk: When you have built up your savings, your credit, and your investments, then you have a lot to lose if something unexpected happens. To protect what you have built, it is important to have three kinds of insurance: Health, Property, and Life. But, what kind, how much, and for how long? This book has an approach to help you decide how much insurance is enough.