Money Sense Tips

If you are lucky enough to fall within the age bracket of between 20 to 35years old and want to learn more about how you achieve personal freedom, i.e. managing your personal finances appropriately, this book was written for you. The author, Ramit Sethi, provides you with a six week, step-by-step program and a wealth of sound advice on how to get started on your way to financial security.

I like that he doesn’t preach, instead he brings his ideas across in an entertaining, easy-to-read, but very practical and down-to earth style. He talks about the important parts of achieving financial independence, banking, saving, budgeting and investing, and how to do it wisely.

The book - I Will Teach You To Be Rich can be read in conjunction with his website, iwillteachyoutoberich.com, where he provides you with the latest and up-to-date information, a financial blog, and more advice on how to build your own personal wealth.

Overall, I like the fact that the author writes in a clear and to-the-point language on how to implement his many suggestions on conscious budgeting and spending. Learn how to manage your student loans, the low-down on credit cards and bank fees, how to be frugal without being cheap and other invaluable advice.

One of the Customer Reviews By Susan Roberts

5 stars: Not your parents’ money management book, March 23, 2009
This review is from: I Will Teach You To Be Rich (Paperback)

First, here’s what this book is not: It’s not your parents’ money management and investing book, although as a parent I wish I had done in my twenties what Ramit Sethi tells the twenty-somethings they should be doing right now.

Ramit starts with the premise that most people are so overwhelmed by the sheer amount of financial information available that they just shut down and do nothing. So Ramit tells you exactly what to do with your money and why. Want to know whether it’s smarter to pay extra on your student loans or put that money into your 401(k) instead? Ramit will tell you. Want to know some specific financial companies that offer the low-cost index funds you should invest in through your Roth IRA? Ramit will tell you. Do you not even know what the heck an index fund is? Ramit will tell you!

Ramit also tells the truth about brown bagging your lunch and curbing your latte habit; and the truth is that these actions on their own are virtually pointless. Instead, you should go after the big wins, like getting the lowest interest rate and the best price on your next car because you have impeccable credit and negotiated “like an Indian” (negotiation scripts included).

Ramit maps out exactly how to get from where you are now to where you want to be financially, including how to create a personal money management system that practically manages itself. Ramit’s system starts with a no-fee checking account and an online high-interest savings account. (He even tells you which online bank he uses.) He then walks you through setting up automatic bill payments and regularly scheduled transfers to your investment accounts. Throughout, he includes easy-to-understand charts, as well as short pieces by other personal finance bloggers.

I wish I could quote some of the passages that I found especially useful or entertaining–Ramit writes with an appealing, if oddball, humor–but I have already mailed my copy of the book to my 24-year-old son, who called me last night to tell me it never would’ve occurred to him to ask his bank to waive an overdraft fee. (That gem is in chapter 2, I think.)

Thank you, Ramit! I hope this enthusiastic review by an “old person” will not stop the young people from buying your book!

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One of the best ways you can save money every month is on food. However, this is easier said than done. Here are six of the top strategies to get started:

#1) Have a list

Many people walk into the grocery store without any clear plan, and wind up spending money on all kinds of food they do not need. When you have a list and stick to it, you avoid the “impulse buys” the stores encourage.

#2) Eat fruit in season

Again, this is no big secret, but it will save you a lot of money. During apple season, eat as many apples as possible. When they are out of season, either buy more bananas or another fruit. This is a simple idea, but it works.

#3) Use coupons

This is another easy strategy that works. Where do you find them? Make sure to check online.

There are plenty of coupon-specific sites on the internet. Another great method is to join the mailing lists for companies you purchase from often. For instance, if there is a certain brand of rice you buy a lot of, then get on their list. Most companies offer periodic coupons, so you can really save money by using this tip.

What if you don’t want a lot of advertisements in your inbox? Then get a separate email to use solely for getting coupons. This strategy takes a bit of effort, but it will be well worth it.

#4) Eat less meat

In general, all meat is very pricey. You can really save by eating more vegetarian foods. If you stick with eating meat once or twice a week, or cut it out altogether, you will really save a lot.

#5) Plan ahead

Figuring out your meal schedule on Sunday night is advised. This will help you know what you are eating, and therefore map out your shopping plan accordingly.

#6) Avoid sweets

These foods do not fill you up at all, and yet are the most expensive things you buy. Therefore, you are essentially throwing money down the drain. Focus on purchasing filling but healthy foods.

The reality is, saving money on food isn’t that hard. When you go to the grocery store with a plan, and make sure you only buy the foods on your list, you will save money. However, when you go without knowing what you want, you could end up just buying whatever looks good. This is how those shopping bills skyrocket in a hurry. So have a plan, and stick to it at all costs.