The author of, “I will teach you to be rich” by Ramit Sethi is a book we all must read before doing anything with your money. This book will walk you through step-by-step in saving money, how to beat the banks to investing. It is a finance 101 book that is easy to understand and literally you can setup your plans by reading each chapter. Here are some of the examples:
1. Week 1: You will setup your credit cards and learn how to improve you credit history (and why that’s so important)
2. Week 2: You will set up the right bank accounts, including negotiating to get no-fee, high-interest accounts.
3. Week 3: You’ll open a 401 (k) and an investment account (even if you have just $50 to start).
4. Week 4: You’ll figure out how much you’re spending. And then you’ll figure out how to make your money go where you want it to go.
5. Week 5: You’ll automate your new infrastructure to make your accounts play together nicely.
6. Week 6: You’ll learn why investing isn’t the same as picking stocks and how you can get the most out of the market with very little work.
According to the author, this book will help you figure out where your money is going and redirect it to where you want it to go. Saving for a vacation to Europe? A Wedding” Just wants to make your money grow? He shows you how to automate your money and all you have to do is keeping track of the process.
He also recommends some favorite readings on personal finance blogs:
Get Rich Slowly (www.getrichslowly.org/blog), by J.D. Roth who believes in long-term growth. He writes about managing money, investing, and even starting a side job.
The Simple Dollar (www.thesimpledollar.com ), by Trent Hamm. He covers the savings, investing, and debt sides of personal finance.
JLP at ALLFinancialMatters (http://allfinancialmatters.com ), by JLP who does excellent job of using charts and data to show how low-cost investing beats broker and is laid back, but occasionally he loses it when financial companies takes advantage of regular people.
Ramit Sethi’s list of personal-finance bookmarks (http://delicious.com/ramitsethi/finance )
When I read the book, I literally followed his step-by-step using his methods, now I have setup automated accounts using my money along with doing some side business. A must read for all people who is interested in managing their money and let it work for you while you are enjoying life.
Ramit also has additional information for negotiating a raise to other useful tidbits. – SjC