Book – The millennial generation is the largest living cohort in recent history. They are high in debt, low on jobs, and full of so-called ‘entitlement’. It’s no wonder millennials are so uncomfortable talking about money or the lack of it. Because my personal goal for this year is to set up and successfully fund an investing account, I have been reading a great deal of personal finance books. Erin Lowry’s book Broke Millennial: Stop Scraping By and Get Your Financial Life Together is by far the best I’ve read so far.
Erin Lowry’s book does a good job of helping readers identify and work around their money hang-ups and take control of their personal finance. Erin lays out her chapters in a DIY guide format that gives you the option to read only the sections that are applicable without making you feel like you skimmed half the book. The majority of the issues she presents will be pertinent to the millennial generation. She dedicates an entire chapter on how to cope with student loan debt— an inevitability today—without going mad. She presents solid money saving and budgeting techniques and doles out advice on how to enact a plan to rid yourself of debt. A strong point for this book is the easy to understand language. You definitely won’t feel like you are being talk down to and you’ll appreciate Erin’s humor as she shares her own financial woes.
This book will definitely resonate well with the 20-30 year old crowd who are confused about money and aren’t quite ready to admit they’re not doing so well in the finance department. It will also benefit those who are doing just fine (those with an existing budget and savings account) and are ready to do more with their hard-earned cash.
Book – The One-Page Financial Plan: A Simple Way to Be Smart About Your Money discusses overall strategies for setting up a personal financial plan. Richards emphasizes letting go of the past and the need for perfection that often paralyze the process. Your plans should fit your goals and lifestyles; there is no one-size-fits-all plan. He guides you through analyzing your spending values and gives examples from his own life and clients. I liked his focus on examining your personal motives and setting your goals to reflect them. One person may have travel as their primary financial expenditure, while another person may direct their finances toward saving for a college fund. Richards also asserts that analyzing your spending habits will help you determine if you need to to redirect your funds. He stresses that this exercise is not to make you reduce money toward what you enjoy doing, but to identify and reduce spending on items you deem non-essential. This book inspired me with its emphasis on setting up a financial plan that makes sense for today and that takes the ups-and-downs of life into account.
Book – Personal finance Editor and syndicated “Funny Money” Detroit News columnist O’Connor moved to Detroit with his family shortly before the Great Recession of 2007. As his personal financial situation declines, he is looking for ways to save more, invest more and spend less. He makes a mission to cut his family’s expenditures by $1,000 a month over the course of ten weeks, and record their progress in a series of newspaper columns. He sets up ten categories to target for savings, such as transportation, groceries, entertainment and groceries. Devoting a chapter to each category, he discusses ways to free up cash, make ends meet and “pinch pennies so hard that Lincoln gets a headache.” I liked his approach, although I found his humor a bit monotonous. I didn’t find many new specific ideas, but was intrigued by the idea of setting a specific family budget challenge and methodically working through categories to explore possible savings.