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From time to time I will review books, podcasts, or other media related to personal finance. I’m hoping to expose you to a wide array of resources that will help you in your financial journey. Today I’m reviewing Money Rules: The Simple Path to Lifelong Security by Jean Chatzky.
About the Book
This was an extremely easy read. When I read Money Rules for the first time, it took under an hour to get through, even with checking Facebook, munching on a snack, etc. So you can definitely set aside enough time to get through this book. Take it to a park while your kids play, or read it over lunch. Even if you stop to look up some of the things she talks about, you can still get through the entire book quickly.
Each page is set up as a short maxim related to personal finance. Some are just the money rule itself, while others add a couple sentences of explanation.
If you are looking to really understand personal finance, this is not the book for you. You’ll need much more in depth analysis for that. This book is not intended to make you a financial expert. It is a list of easy-to-digest ideas to help guide your financial life.
About the Author
Jean Chatzky is not a financial advisor, accountant, or any other type of financial planner. She is a journalist who reports on, as she puts it, “real people and their real money.” She is a pretty big name in the personal finance world. Jean has written a number of books, is featured on TV often (currently on TODAY), plus she has a blog and a podcast.
What I like about Jean is that she approaches personal finance from the same mindset I, and probably you, do. I’m not necessarily thinking about what is the absolute best, most efficient financial choice. I want the financial advice that fits into my life, and that’s what she gives.
What I liked about Money Rules
I agree with the vast majority of Jean’s rules. I particularly like:
- 10. Live below your means. Period.
- 12. Save more with every raise.
- I have a post coming up on this!
- 23. Aim for progress, not perfection.
- 29. Use your emergency savings for emergencies.
- But if you’ve been following along, you already knew this.
- 59. Nobody cares about your money as much as you do.
I also like that the rules are broken up into sections, so you can quickly get to the advice you are looking for if you have a particular section. Want to know more about investing? That’s Part 5. Do’s and Don’ts? Part 7. Simple!
What I didn’t like
There are a few of the Money Rules that I didn’t agree with.
- 18. You will spend more with credit than with debit and more with debit than with cash.
- I can believe this is true for people who don’t pay much attention to their money, but I think once you have a good handle on your budget and are used to sticking to it, this truism becomes….less true.
- 63. If you can’t explain it, don’t buy it.
- There is some truth to this. You should understand the basics of personal finance. But can you imagine if I told you not to buy any investments until you knew everything about them? Remember, the greatest thing you have going for you when it comes to investing is time. The longer you wait to invest, the less time you have for compound interest to work its magic. So yes, definitely keep learning, but don’t not do smart financial things because you aren’t an expert yet!
Overall
I would recommend this book for anybody that wants a handy checklist of things to do and isn’t too worried about the details. Or at least, doesn’t need them to be quickly at hand. It would make a great present for a new high school or college graduate. It’s also a good choice for somebody struggling with the basics of finance who wants to establish some foundational knowledge.
If you are looking for a quick reference of financial principles, check out Money Rules! If you are looking for something with a little more information, standby…I’ll be back with more later.
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