To read the full PDF version, click here
To listen to the full audio version, click here
To purchase and/or read additional reviews, see Amazon page here
What do I love about: I will teach you to be rich?
Hitherto, I was hesitant about this book because of its name “I will teach you to be rich”. Books like this usually sound so cliché to me. Albeit, I had seen good reviews, I was still full of skepticism. Finally, I listened to my guts and purchased this book. And all I can say is I am elated. My guts were right. Although I still insist that the author did a horrible job with the name because the name undermines the power of this piece. This piece helps you make good financial decision in an economy where consumers are inundated with choices and bills. I only wished I had read this when I was a newly landed immigrant- I never had a credit card and when I eventually got one I made late payments. Trust me, I would have made better financial decision. However, as the saying goes: it is never too late. I have put my finances in order and am glad to be on track to financial freedom. This book gives great advice on better credit management, bank accounts, ROTH 401K and 401K, conscious spending and automatic investing. Please get your copy.
What do I not love about: I will teach you to be rich?
Zilch
Who should read: I will teach you to be rich?
If you are just starting out trying to understand finances at a fundamental level then this book is for you.
Who should not read: I will teach you to be rich?
This book may seem too basic for folks who already have a head start in the world of finance. However it is a great read to help reiterate the fundamentals.
Notes from I will teach you to be rich?
On Credit Card
- Pay off your credit card regularly
- Get all fees waved on your credit card
- Keep your card for a long time and keep them active
- Negotiate a lower APR
- Get more credit. Warning- Do this only if you have no debt
- Use your rewards
- The 85% solution: Getting started is more important than becoming an expert
Credit card mistakes to avoid
- Manage debt to avoid damaging your credit score
- Avoid closing your accounts usually
- Think ahead before closing accounts
- Do not play the zero percent transfer game
- Avoid getting sucked in the “Apply Now and Save 10 percent in just five minutes!”
- Don’t make the mistake of paying for your friends with your credit card and keeping the cash- and then spending it all
- Beat the Banks- Open high-interest, low hassle accounts and negotiate fees like an INDIAN.
5 shiny marketing tactics banks use to trick you
- Teaser rates such as 6% for the first two months
- Requiring minimum balances
- Up-sells with worthless services such as expedited customer service
- Holding out e.g by telling you that the no-fee, no minimum accounts are not available anymore
- Bundling a credit card: If you did not walk into the bank wanting a credit card, don’t get it
Get Ready to Invest
- Investing is the single most important way to get rich.
- Set up automatic payment
- Save while sleeping
- Be FEARFUL when others are GREEDY and GREEDY when others are FEARFUL.
- Do not put off until tomorrow what you can do today. Let others debate minutae- all you need to do is open an investment account at a discount brokerage
The ladder of personal finance
- If your employer offers a 401k match, invest to take full advantage of it
- Pay off your credit card and any other debt
- Open up a Roth IRA or RRSP
- If you have left over, go back to your 401(k) and contribute as much as possible
- If you still have money left, open a regular non retirement account and put as much possible there
Conscious Spending
- Too often our friends push us away from being frugal and conscious spenders
- Spend on what you love
- Set realistic goals
- Don’t just save, save for a goal
- When you receive a raise, don’t feel bad about celebrating- but do it modestly. A mere increase in your income is not a call to change standard of living
- I have never seen as many people make bad car decisions as when they are in car dealer’s office
The myth of financial expertise
Not only do most fund managers fail to beat the market, they charge a fee to do this
Investing isn’t only for rich people
- Leverage dollar cost averaging by setting aside an amount for investing periodically
- Since you cannot successfully time the market or select individual stocks, asset allocation should be the major focus of your investment strategy, because it is the only factor affecting your investment risk and return that you can control
Financial options for super achievers; make the 10 year plan that few others do
- Create an emergency fund
- Buy insurance
- Invest in children’s education
5 things you should never do in a salary negotiation
- Do not reveal your current salary
- Do not make the first offer
- If you have got another offer from a company that’s generally mediocre, do not reveal the company’s name
- Do not ask yes or no questions
- Never lie