(no subject)

[alexmegami]

So I'm reading I Will Teach You To Be Rich.

It's... like the love child of Patrick, Russell Peters, and Warren Buffet. I am so very afraid. *LOL*

Comments

[mistress-gwen.livejournal.com]

Let me know how that is please!

[alexmegami]

Common-sense, mostly? I summarized the first couple of "weeks" for roju below.

[roju.livejournal.com]

Does it boil down to "Spend less than you earn"?

[alexmegami]

No, it's a little bit more complicated than that. I mean, that IS the basics of pretty much all debt management, but. :P

You have to tweak a little to compensate for American-isms, but.

1) Get out of credit card debt. Negotiate for lower APRs if you can. Get a card with benefits you'll actually use.
2) Get a good savings account. Online is better as they tend to have better interest rates. Absolutely do not pay any fees for using the account.
3) Get a checking account. Again, no fees.
4) If your company has a 401(k) that they match funds in, invest in that up to the company match maximum. Set up for direct debit so you never miss the money.
5) Once that's done, invest as much as you can in a Roth IRA. You don't have to do anything with it just yet (at the point I am at in the book - eventually you'll have to invest it in something) - just make sure you've got it there. Again, direct debit if you can - figure out how much you can put in each month and pretend like that money never existed.
6) If you still have money left over, start filling your 401(k).

Then he's got some general tips and tricks for reducing phone, cell, internet, etc. bills.

Also, "figure out what you care about. Accept that you'll spend what seems exorbitant amounts to others on that. As long as you're able to pay the necessities each month (credit card in full, mortgage, etc.), don't worry about it. Save money on things you don't care about."