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C's Reviews > I Will Teach You to Be Rich: No Guilt. No Excuses. No BS. Just a 6-Week Program That Works
I Will Teach You to Be Rich: No Guilt. No Excuses. No BS. Just a 6-Week Program That Works
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This is one of my favorite personal finance books. It's a logical, step-by-step, practical handbook for financial success, specially written for those in their 20s and 30s, but also useful for others. The book gives fairly in-depth explanations of personal finance fundamentals, but also contains plenty of examples of actual accounts and funds. I know Sethi tries to sound casual and irreverent, but I dislike his profanity. The book is full of quotes from Sethi's followers, which add little value, and I'd rather do without.
The book is written in the form of a 6-week action plan. Each chapter describes the tasks and reasoning behind them, and ends with a checklist of steps to take. Here are the weeks:
1. Set up credit cards, pay off debt, master credit history and credit rewards
2. Set up bank accounts
3. Open 401(k) and investment account
4. Figure out what you're spending, make spending plan
5. Automate transfers between accounts
6. Invest in stock market
Sethi gives advice on “automatically enabling yourself to save, invest, and spend - enjoying it, not feeling guilty … because you’re spending only what you have.” His main point: automate your finances so you effortlessly save and invest, leaving you money to spend on things you love without feeling guilty. Automatic saving and investing helps overcome psychological barriers and laziness.
In addition to his emphasis on automation, I agreed with Sethi’s recommendation for long-term, passive, buy-and-hold investing instead of speculative, market-timing investing. I also liked Sethi’s 85 Percent Solution, which states that it's better to act and get it 85% right than to do 0%; sometimes good enough is good enough, and it’s always better than doing nothing.
Another message is "spend extravagantly on the things you love and cut costs mercilessly on the things you don't." That's valuable because everyone defines being "rich" differently, and it's not all about money. Money is just the tool we use to acquire the material possessions and experiences we want. That's the difference between being cheap and being frugal; being cheap is trying to cut spending on everything, and being frugal is cutting costs on the things you don't care about so that you can splurge on the things you do.
I liked the concept of making a Conscious Spending Plan, which lets you spend a certain percentage of your money on whatever you want, without feeling guilty, since you’re paying yourself and your bills first.
I don't like that Sethi waits until the last chapter to mention donating, and he says to do it after meeting other financial goals. I wish he would've mentioned it earlier, and advocated giving throughout one's life.
Notes
Would You Rather Be Sexy or Rich?
Focus on the big wins: the 5-10 things that give disproportionate results (automate, saving and investing, find job you love, negotiate salary).
There's a limit to how much you can cut, but no limit to how much you can earn.
Optimize Your Credit Cards
If you're booking travel or dining out, use a travel card (Sethi likes Chase Sapphire Reserve). For everything else, use a cash back card (Sethi likes Alliant).
For business, Sethi uses a Capital One cash back card. For extra benefits, he uses an Amex Platinum.
A month before a card's annual fee hits, ask card company to waive it.
When you want a fee removed, don't ask, "Can you remove this?" Say, "I'd like to have this removed." If they resist, say, "I've been a customer for X years, and I'd hate for this one fee to drive me away from your service."
Sethi no longer recommends credit unions because they don't deliver solutions people care about.
Beat the Banks
Recommended banks
• Checking: Schwab Bank Investor Checking with Schwab One Brokerage Account, and/or local bank if you need to deposit cash Latest recommendations
• Savings: Capital One 360 Savings, All Online Savings, Marcus by Goldman Sachs, American Express Personal Savings Latest recommendations
Sethi recommends avoiding Bank of America and Wells Fargo.
Leave 1.5 mos living expenses in checking account, and put rest in savings.
Get Ready to Invest
People are afraid of possibly losing money in stocks, when they should fear certainly running out of money if they don't invest.
Ladder of Personal Finance
1. Invest enough in 401(k) to get company match (if there's no match, skip to Rung 4)
2. Pay off debt (other than student loans)
3. Invest as much as possible in Roth IRA
4. If you have money left, invest as much as possible into 401(k)
5. If you have money left, invest as much as possible in non-retirement (taxable) account, pay extra toward mortgage, invest in yourself (start company, get degree, etc.)
Even though you could make more money by investing than by paying off debt, pay off debt (besides student loans) to remove barriers to becoming rich.
You can withdraw principal from Roth IRA penalty-free, and there are exceptions for home down payments, education, and emergencies, if account has been open over 5 yrs.
Save, don't invest, money needed in under 5 yrs.
Recommended discount brokerages: Vanguard (Sethi's choice), Schwab, Fidelity
Sethi says robo-advisors are good options, but not the best, because they're not worth the costs and use marketing gimmicks.
Conscious Spending
Cheap people care about costs; conscious spenders care about value. Cheap people try to get lowest price on everything; conscious spenders try to get lowest price on most things, but spend extravagantly on things they care about. Cheap people's cheapness affects others; conscious spenders' frugality affects only them. Cheap people think short-term; conscious spenders think long-term.
2010 study found that "emotional well-being" peaks at $75k, but "life satisfaction" has no plateau. There's data that the more you earn, the more satisfied you are with life. People who spend to buy themselves time report greater life satisfaction.
À La Carte Method
1. Calculate what you spent over last month on discretionary subscriptions.
2. Cancel those subscriptions, and buy what you need à la carte. This forces you to be conscious about spending.
3. In 1 month, see how much you spent on those items.
4. Try to reduce spending.
Conscious Spending Plan recommended percentages
• Fixed costs: 50-60% of take-home pay
• Investments: 10%
• Savings goals: 5-10%
• Guilt-free spending: 20-35%
When calculating fixed costs, add 15% for unexpected expenses. Reduce that number over time, as you get more accurate.
Conscious Spending Plan is designed for young people who spend a lot on going out, but have lower housing costs than older people.
60 Percent Solution (Richard Jenkins, MSN Money)
• Basic expenses (food, bills, taxes, etc.): 60% of gross income
• Retirement: 10%
• Long-term savings: 10%
• Short-term savings: 10%
• Fun money: 10%
Each month, focus on 2-3 Big Wins that will make large change. They're expenses you cringe at, and say, "I probably spend too much on X."
Envelope system can help with conscious spending. Envelopes can be literal or figurative (categories in a system). You can transfer money from one envelope to another, but not increase total spending for month.
When you get unexpected income, use 50% for fun, as a motivation to do things that could result in more unexpected income. Save or invest the other 50%.
Save While Sleeping
Save 3-6 mos of expenses in emergency fund. As you get older, get to 6-12 mos.
If self-employed, get Solo 401(k) or SEP IRA.
The Myth of Financial Expertise
Most people don't need a financial advisor, but you may if you have complex financial situations (e.g., inherited or accumulated over $1 million; complex transactions involving kids, retirement, taxes), or are truly too busy to handle your own finances. Find a fee-only advisor who's a fiduciary at napfa.org.
1% fee can reduce returns by 28%. 2% fee can reduce returns by 63%. You should be paying 0.1% - 0.3%.
If considering actively managed fund, look at after-tax, after-fee returns for last 10, 15, 20 yrs.
Actively managed funds must outperform passive funds by at least 1-2% to compensate for high expense ratios.
1993-1998, less than half of actively managed funds beat market. 1998-2003, only 8% did. Only 2% of all large-cap funds beat market in both time periods.
Returns over 90 yrs
• Stocks: 11.5%
• Bonds: 5.2%
• Cash: 3.4%
Investing Isn't Only for Rich People
Add bonds to portfolio when in your 30s.
Asset allocation by age (based on Vanguard target date funds)
35: 90% stocks, 10% bonds
45: 90% stocks, 10% bonds
55: 69% stocks, 31% bonds
55: 53% stocks, 47% bonds
Use target-date fund. If you want more control, use index funds.
David Swenson's Yale Endowment portfolio:
• 30% US stocks
• 15% developed international stocks
• 5% emerging market stocks
• 20% REITs
• 15% government bonds
• 15% TIPS
Recommended institutions for index funds: Vanguard, Schwab, T. Rowe Price
Create a portfolio of 3-7 index funds that includes US stocks, international stocks, REITS, maybe small amount of Treasury bonds.
Choosing index funds
• Low expense ratio (~0.2%)
• Fits asset allocation (start with David Swenson's portfolio above)
• Good returns over last 10-15 yrs
Sample portfolio (Vanguard funds)
• 30% Total Market (VTSMX)
• 20% Total International (VGTSX)
• 20% REIT (VGSIX)
• 5% Short-Term Treasury (VSBSX)
• 5% Intermediate-Term Treasury (GSIGX)
• 5% Long-Term Treasury (VLGSX)
• 15% Short-Term Inflation-Protected Securities (VTAPX)
Lump-sum investing beats dollar-cost averaging 2/3 of time.
If you want to have fun investing (including cryptocurrency), allocate no more than 10% of money you can afford to lose, after setting up rest of portfolio.
How to Maintain and Grow Your System
Rebalance annually by investing more in underperforming assets. Alternatively, you can sell outperforming assets and reallocate into underperforming assets, but this can involve fees and paperwork.
Hold tax-inefficient (income-generating) assets like bonds in tax-advantaged accounts.
Hold tax-efficient assets like index funds in taxable accounts.
Before saving for kids' education, get out of debt and invest for retirement. Then, use 529.
A Rich Life
Decide how quickly to pay off debt based on its interest rate compared to investment returns. Consider that investing benefits from compound interest, and retirement accounts are tax-advantaged. If debt has low interest rate, pay off as slowly as possible. However, if debt keeps you awake at night, pay off as quickly as possible. An alternative is 50% toward debt, 50% invested.
Telling spouse not to spend on something will cause resentment. To avoid that, talk about your goals and how much you need to save to reach them. Next time you have an argument about spending, put focus on that plan, not on spouse's spending.
Most people don't need a prenup. It could be worthwhile if one person has a disproportionate amount of assets or liabilities, or owns a business, or has an inheritance.
Buying & owning car
1. Set budget
2. Choose reliable car
3. Maintain it
4. Drive it as long as possible (10+ yrs)
Leasing is usually worse than buying, unless you always want newest car and are willing to pay for it, or are business owner who leases for tax benefits.
When car shopping, if you don't negotiate well, bring someone who does.
Dealers are more willing to negotiate at year end.
fightingchance.com tells how much dealers pay for cars.
Contact multiple dealers and tell them what car you want, that you want to buy within 2 weeks, and will choose lowest price.
Don't buy a house until you have 20% down payment and enough to cover monthly expenses, including mortgage, property taxes, insurance, maintenance. These expenses should be less than 30% of your gross monthly income.
Don't buy a house unless you'er willing to live in it for 10+ yrs, because of high costs of real estate transaction fees, taxes, moving.
Your primary residence is a poor investment. If house is your largest investment, you may not be adequately diversified. Real estate offers poor returns for individual investors, when considering maintenance and property taxes (0.6%/yr 1915-2015). Net house prices haven't increased when you factor in inflation, taxes, homeowner fees.
Get a 30-yr fixed-rate mortgage because it's more flexible than 15-yr. It's almost always better to invest than to pay off mortgage early.
Look for benefits for first-time home buyers from state and local governments, credit unions, alumni associations, teachers' associations, other associations, and Costco.
Bonus resources
The book is written in the form of a 6-week action plan. Each chapter describes the tasks and reasoning behind them, and ends with a checklist of steps to take. Here are the weeks:
1. Set up credit cards, pay off debt, master credit history and credit rewards
2. Set up bank accounts
3. Open 401(k) and investment account
4. Figure out what you're spending, make spending plan
5. Automate transfers between accounts
6. Invest in stock market
Sethi gives advice on “automatically enabling yourself to save, invest, and spend - enjoying it, not feeling guilty … because you’re spending only what you have.” His main point: automate your finances so you effortlessly save and invest, leaving you money to spend on things you love without feeling guilty. Automatic saving and investing helps overcome psychological barriers and laziness.
In addition to his emphasis on automation, I agreed with Sethi’s recommendation for long-term, passive, buy-and-hold investing instead of speculative, market-timing investing. I also liked Sethi’s 85 Percent Solution, which states that it's better to act and get it 85% right than to do 0%; sometimes good enough is good enough, and it’s always better than doing nothing.
Another message is "spend extravagantly on the things you love and cut costs mercilessly on the things you don't." That's valuable because everyone defines being "rich" differently, and it's not all about money. Money is just the tool we use to acquire the material possessions and experiences we want. That's the difference between being cheap and being frugal; being cheap is trying to cut spending on everything, and being frugal is cutting costs on the things you don't care about so that you can splurge on the things you do.
I liked the concept of making a Conscious Spending Plan, which lets you spend a certain percentage of your money on whatever you want, without feeling guilty, since you’re paying yourself and your bills first.
I don't like that Sethi waits until the last chapter to mention donating, and he says to do it after meeting other financial goals. I wish he would've mentioned it earlier, and advocated giving throughout one's life.
Notes
Would You Rather Be Sexy or Rich?
Focus on the big wins: the 5-10 things that give disproportionate results (automate, saving and investing, find job you love, negotiate salary).
There's a limit to how much you can cut, but no limit to how much you can earn.
Optimize Your Credit Cards
If you're booking travel or dining out, use a travel card (Sethi likes Chase Sapphire Reserve). For everything else, use a cash back card (Sethi likes Alliant).
For business, Sethi uses a Capital One cash back card. For extra benefits, he uses an Amex Platinum.
A month before a card's annual fee hits, ask card company to waive it.
When you want a fee removed, don't ask, "Can you remove this?" Say, "I'd like to have this removed." If they resist, say, "I've been a customer for X years, and I'd hate for this one fee to drive me away from your service."
Sethi no longer recommends credit unions because they don't deliver solutions people care about.
Beat the Banks
Recommended banks
• Checking: Schwab Bank Investor Checking with Schwab One Brokerage Account, and/or local bank if you need to deposit cash Latest recommendations
• Savings: Capital One 360 Savings, All Online Savings, Marcus by Goldman Sachs, American Express Personal Savings Latest recommendations
Sethi recommends avoiding Bank of America and Wells Fargo.
Leave 1.5 mos living expenses in checking account, and put rest in savings.
Get Ready to Invest
People are afraid of possibly losing money in stocks, when they should fear certainly running out of money if they don't invest.
Ladder of Personal Finance
1. Invest enough in 401(k) to get company match (if there's no match, skip to Rung 4)
2. Pay off debt (other than student loans)
3. Invest as much as possible in Roth IRA
4. If you have money left, invest as much as possible into 401(k)
5. If you have money left, invest as much as possible in non-retirement (taxable) account, pay extra toward mortgage, invest in yourself (start company, get degree, etc.)
Even though you could make more money by investing than by paying off debt, pay off debt (besides student loans) to remove barriers to becoming rich.
You can withdraw principal from Roth IRA penalty-free, and there are exceptions for home down payments, education, and emergencies, if account has been open over 5 yrs.
Save, don't invest, money needed in under 5 yrs.
Recommended discount brokerages: Vanguard (Sethi's choice), Schwab, Fidelity
Sethi says robo-advisors are good options, but not the best, because they're not worth the costs and use marketing gimmicks.
Conscious Spending
Cheap people care about costs; conscious spenders care about value. Cheap people try to get lowest price on everything; conscious spenders try to get lowest price on most things, but spend extravagantly on things they care about. Cheap people's cheapness affects others; conscious spenders' frugality affects only them. Cheap people think short-term; conscious spenders think long-term.
2010 study found that "emotional well-being" peaks at $75k, but "life satisfaction" has no plateau. There's data that the more you earn, the more satisfied you are with life. People who spend to buy themselves time report greater life satisfaction.
À La Carte Method
1. Calculate what you spent over last month on discretionary subscriptions.
2. Cancel those subscriptions, and buy what you need à la carte. This forces you to be conscious about spending.
3. In 1 month, see how much you spent on those items.
4. Try to reduce spending.
Conscious Spending Plan recommended percentages
• Fixed costs: 50-60% of take-home pay
• Investments: 10%
• Savings goals: 5-10%
• Guilt-free spending: 20-35%
When calculating fixed costs, add 15% for unexpected expenses. Reduce that number over time, as you get more accurate.
Conscious Spending Plan is designed for young people who spend a lot on going out, but have lower housing costs than older people.
60 Percent Solution (Richard Jenkins, MSN Money)
• Basic expenses (food, bills, taxes, etc.): 60% of gross income
• Retirement: 10%
• Long-term savings: 10%
• Short-term savings: 10%
• Fun money: 10%
Each month, focus on 2-3 Big Wins that will make large change. They're expenses you cringe at, and say, "I probably spend too much on X."
Envelope system can help with conscious spending. Envelopes can be literal or figurative (categories in a system). You can transfer money from one envelope to another, but not increase total spending for month.
When you get unexpected income, use 50% for fun, as a motivation to do things that could result in more unexpected income. Save or invest the other 50%.
Save While Sleeping
Save 3-6 mos of expenses in emergency fund. As you get older, get to 6-12 mos.
If self-employed, get Solo 401(k) or SEP IRA.
The Myth of Financial Expertise
Most people don't need a financial advisor, but you may if you have complex financial situations (e.g., inherited or accumulated over $1 million; complex transactions involving kids, retirement, taxes), or are truly too busy to handle your own finances. Find a fee-only advisor who's a fiduciary at napfa.org.
1% fee can reduce returns by 28%. 2% fee can reduce returns by 63%. You should be paying 0.1% - 0.3%.
If considering actively managed fund, look at after-tax, after-fee returns for last 10, 15, 20 yrs.
Actively managed funds must outperform passive funds by at least 1-2% to compensate for high expense ratios.
1993-1998, less than half of actively managed funds beat market. 1998-2003, only 8% did. Only 2% of all large-cap funds beat market in both time periods.
Returns over 90 yrs
• Stocks: 11.5%
• Bonds: 5.2%
• Cash: 3.4%
Investing Isn't Only for Rich People
Add bonds to portfolio when in your 30s.
Asset allocation by age (based on Vanguard target date funds)
35: 90% stocks, 10% bonds
45: 90% stocks, 10% bonds
55: 69% stocks, 31% bonds
55: 53% stocks, 47% bonds
Use target-date fund. If you want more control, use index funds.
David Swenson's Yale Endowment portfolio:
• 30% US stocks
• 15% developed international stocks
• 5% emerging market stocks
• 20% REITs
• 15% government bonds
• 15% TIPS
Recommended institutions for index funds: Vanguard, Schwab, T. Rowe Price
Create a portfolio of 3-7 index funds that includes US stocks, international stocks, REITS, maybe small amount of Treasury bonds.
Choosing index funds
• Low expense ratio (~0.2%)
• Fits asset allocation (start with David Swenson's portfolio above)
• Good returns over last 10-15 yrs
Sample portfolio (Vanguard funds)
• 30% Total Market (VTSMX)
• 20% Total International (VGTSX)
• 20% REIT (VGSIX)
• 5% Short-Term Treasury (VSBSX)
• 5% Intermediate-Term Treasury (GSIGX)
• 5% Long-Term Treasury (VLGSX)
• 15% Short-Term Inflation-Protected Securities (VTAPX)
Lump-sum investing beats dollar-cost averaging 2/3 of time.
If you want to have fun investing (including cryptocurrency), allocate no more than 10% of money you can afford to lose, after setting up rest of portfolio.
How to Maintain and Grow Your System
Rebalance annually by investing more in underperforming assets. Alternatively, you can sell outperforming assets and reallocate into underperforming assets, but this can involve fees and paperwork.
Hold tax-inefficient (income-generating) assets like bonds in tax-advantaged accounts.
Hold tax-efficient assets like index funds in taxable accounts.
Before saving for kids' education, get out of debt and invest for retirement. Then, use 529.
A Rich Life
Decide how quickly to pay off debt based on its interest rate compared to investment returns. Consider that investing benefits from compound interest, and retirement accounts are tax-advantaged. If debt has low interest rate, pay off as slowly as possible. However, if debt keeps you awake at night, pay off as quickly as possible. An alternative is 50% toward debt, 50% invested.
Telling spouse not to spend on something will cause resentment. To avoid that, talk about your goals and how much you need to save to reach them. Next time you have an argument about spending, put focus on that plan, not on spouse's spending.
Most people don't need a prenup. It could be worthwhile if one person has a disproportionate amount of assets or liabilities, or owns a business, or has an inheritance.
Buying & owning car
1. Set budget
2. Choose reliable car
3. Maintain it
4. Drive it as long as possible (10+ yrs)
Leasing is usually worse than buying, unless you always want newest car and are willing to pay for it, or are business owner who leases for tax benefits.
When car shopping, if you don't negotiate well, bring someone who does.
Dealers are more willing to negotiate at year end.
fightingchance.com tells how much dealers pay for cars.
Contact multiple dealers and tell them what car you want, that you want to buy within 2 weeks, and will choose lowest price.
Don't buy a house until you have 20% down payment and enough to cover monthly expenses, including mortgage, property taxes, insurance, maintenance. These expenses should be less than 30% of your gross monthly income.
Don't buy a house unless you'er willing to live in it for 10+ yrs, because of high costs of real estate transaction fees, taxes, moving.
Your primary residence is a poor investment. If house is your largest investment, you may not be adequately diversified. Real estate offers poor returns for individual investors, when considering maintenance and property taxes (0.6%/yr 1915-2015). Net house prices haven't increased when you factor in inflation, taxes, homeowner fees.
Get a 30-yr fixed-rate mortgage because it's more flexible than 15-yr. It's almost always better to invest than to pay off mortgage early.
Look for benefits for first-time home buyers from state and local governments, credit unions, alumni associations, teachers' associations, other associations, and Costco.
Bonus resources
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Reading Progress
Finished Reading
Started Reading
July 9, 2009
– Shelved
July 9, 2009
–
Finished Reading
July 21, 2009
– Shelved as:
finance
July 26, 2009
– Shelved as:
non-fiction
Started Reading
April 20, 2024
–
Finished Reading
Comments Showing 1-38 of 38 (38 new)
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message 1:
by
Dante
(new)
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rated it 3 stars
Feb 19, 2014 07:58PM
I saw your comment on the book of Suze Orman and I decided to buy this book I will trust you.
reply
|
flag
Dante wrote: "I saw your comment on the book of Suze Orman and I decided to buy this book I will trust you."I hope you enjoy it, Dante! Good luck on your personal finance quest!
i like your reviews, first saw you on david ramsey's "the total money make over" and now this - for someone who is very weak at personal finance, which one do you recommend as a start to control the financial side, and investing for retirement plus the habit of having a healthy life balance that lasts? thanks in advance.
Shady wrote: "i like your reviews, first saw you on david ramsey's "the total money make over" and now this - for someone who is very weak at personal finance, which one do you recommend as a start to control th..."Start with these, in order:
I Will Teach You To Be Rich
Money Girl's Smart Moves to Grow Rich
The Bogleheads' Guide to Investing
The Little Book of Common Sense Investing
thanks a lot, Chad. will look into them and add them to my library. very helpful of you!
Raymond wrote: "Are you rich yet?"Raymond, I'm not as financially well-off as I'd like to be, but this book (among many others) have helped point me in the right direction. I should also say that I don't believe being "rich" or wealthy is the primary goal in life; my goals are more about faith, family, and relationships, and money is simply a tool for supporting those.
Thanks for adding your notes. I listened to the audiobook, so I didn't write down some things!
Anuja wrote: "Thanks for adding your notes. I listened to the audiobook, so I didn't write down some things!"You're welcome! I do a lot of my "reading" via audiobook, so I know what you mean. Sometimes for nonfiction I just need to read with my eyes for the sake of taking notes.
I second Anuja's comment. Thank you Chad!
Luca wrote: "I second Anuja's comment. Thank you Chad!"You're welcome!
Interested... waiting to receive the book and start reading it. the main goal is to get on the right track, hopefully this one with get me some ideas
David wrote: "Interested... waiting to receive the book and start reading it. the main goal is to get on the right track, hopefully this one with get me some ideas"Thanks for commenting, David. I hope you find the book helpful!
Wow, what a thorough review. Thanks for the notes.
Christina wrote: "Wow, what a thorough review. Thanks for the notes."You're welcome, Christina!
Totally agree, thank you for sharing the notes!
Paras wrote: "Totally agree, thank you for sharing the notes!"You're welcome, Paras!
Lahari wrote: "Such a good review."Thank you, Lahari!
Great Review! Well summarized! I will get the hard copy as it seems financial books are better read that way vs. audiobook.
Nigel wrote: "Great Review! Well summarized! I will get the hard copy as it seems financial books are better read that way vs. audiobook."Thanks for the compliment, Nigel! I hope the book helps you.
thank you for your amazing notes!
Gabrielle wrote: "thank you for your amazing notes!"You're welcome, Gabrielle!
You just did Blink’s job for them! (Have you heard of that app?$
Excellent notes! Thank you!
Nina wrote: "Excellent notes! Thank you!"You're welcome, Nina!
Trân wrote: "Thank you for the notes!"You're welcome, Trân! I hope the notes helped you.
Hi chad could you explain the “Rebalance every 12-18 months -invest more in underperforming assets“ cause it logically doesn’t make any sense
Shanelle wrote: "Hi chad could you explain the “Rebalance every 12-18 months -invest more in underperforming assets“ cause it logically doesn’t make any sense"Shanelle, it means that every 12-18 months, you rebalance your portfolio. Rebalancing causes you to buy (invest in) more assets that have fallen in price, so you're essentially buying them "on sale"; getting more of them than you would if they had a higher price. That means you stand to gain more as the price of those assets rises. Here's an article that describes rebalancing.
I wish I was as enthusiastic as you on this book. For me it was dreading and an annoying read. Mid paragraph starts an entire page of customer quotes.I'm also not a fan of the arrogant title. All the advice I found in this book is aimed at long term wealth, so by the time you're rich you're in your retired ages.
My favorite personal finance book is rich dad poor dad. I find that book too be more of a mind set change to take risk to get the reward. Vs. this author stays far away from risk to reap benefits of very very long term rewards
Johnny wrote: "I wish I was as enthusiastic as you on this book. For me it was dreading and an annoying read. Mid paragraph starts an entire page of customer quotes.I'm also not a fan of the arrogant title. All..."
Thanks for sharing. Yes, Rich Dad, Poor Dad has good mindset advice. For personal finance, you can also check out Money Girl's Smart Moves to Grow Rich.
For investing, I like the following:
1. The Bogleheads' Guide to Investing
2. The Little Book of Common Sense Investing
3. The New Coffeehouse Investor
Thank you! Heard about this book on Mel Robbins’ podcast and it’s checked out for the next 21 weeks at my library! Wanted to see if it was worth it to buy and I’ve read a lot of your other finance book reviews and have a lot to go on already :)
Briana wrote: "Thank you! Heard about this book on Mel Robbins’ podcast and it’s checked out for the next 21 weeks at my library! Wanted to see if it was worth it to buy and I’ve read a lot of your other finance ..."You're welcome. I'm glad you were able to get it through your library, and I hope it helps you.
