I recently read The Money Book for the Young, Fabulous & Broke, Suze Orman's book directed at what she calls "Generation Debt." As the first post to this blog, I feel compelled to comment on Ms. Orman's advice because some of it is spectacularly ill-advised. At first, I didn't quite believe what I was reading. Suze Orman is a famous financial guru, right? So I slogged my way through, hoping to find the nuggets of wisdom. But eventually I started to feel like the enthusiastic but misguided little girl who digs through a huge pile of horse manure because she's just sure there's a pony under there somewhere. Aside from being preachy and somewhat insulting (as in, "You are fabulous, right?"), this book is horribly focused on minutiae. Take the first chapter's mind-numbing emphasis on knowing your FICO score and all that this esoteric little number entails. The book's focus on FICO is about as ridiculous as an emergency-room doctor lecturing an accidental amputee on his low blood pressure. In both cases, the problem with focusing on the number is that the number isn't really the problem. It's the hemorrhaging that's causing all the trouble. In other words, in times of crisis, it's a good idea to keep your eye on the big picture. For most Americans, an ailing FICO score is the symptom of a much larger problem (namely, that they are bleeding cash with no tourniquet in sight). This leads me to the book's main problem, which is that it presupposes debt among younger Americans as a universal and acceptable condition. This pandering stance may sell more books to those of us who are predisposed to think it's perfectly okay and reasonable to live off credit cards, but it has no basis in cold, hard reality. The fact is that if you take the position, as Ms. Orman does, that debt is inevitable, you will inevitably find yourself in debt. Consider her advice that it's perfectly reasonable and admirable to subsidize a low-paying job with credit cards when you're young because it's very important to get started on the career you really, really want. After all, you are fabulous, right?Of course, she cautions that you must only use credit cards to buy the things you need and not the things you want. This concept seems nice in theory, but it's highly problematic in its application. What do we really need in life? Food, clearly. But what kind of food? Beans and rice? Mac and Cheese? When was the last time you pulled out the plastic to cover a couple bucks' worth of subsistence groceries? And if you've found yourself doing this recently, is it because you spent all your cash on stuff you definitely didn't need (i.e. that great blouse at Bergdorf's or a few too many drinks at your favorite martini bar)?The other problem with following Ms. Ormans' advice (i.e. borrowing against tomorrow's earnings to make your dues-paying years a little more tolerable) is that it could easily lock you into a situation that might not look so good in a few years. What if you discover that this job/career isn't really your bag and what you really want to do is bake cupcakes for fancy weddings on Martha's Vineyard? What if you want to quit working and travel or have kids or spend time with your parent who is dying of cancer? What if you suddenly realize there are more important things in life than paying back the money you borrowed to subsidize a career that seemed so brilliant and lustrous and important back when you were twenty-two and didn't really know all that much about the world or yourself?In other words, what if your first career wasn't really your dream career after all? Well, if you live within your means during your early years, it's a lot easier to make a change later on. And it's very silly to assume that the career you choose when you're twenty or even thirty will be the one you want when you're forty or fifty or sixty. The bottom line is there will be no time in your life when what you want today doesn't seem far more tantalizing than what you might want tomorrow. So there is never a good time to borrow against tomorrow to finance your life today. But some times are worse than others, and the worst time to borrow against tomorrow is when you're young. Credit card debt is much like tobacco, alcohol and other drugs. If you build up a tolerance for it when you're young, you can easily develop a seductive addiction that will haunt you for the rest of your life. Also, in your twenties, the time value of money works more strongly for you now than it ever will. If you save now, you will have enviable freedom and security later, when everyone else is panicking because of the mortgage crisis and the looming recession and wondering why the hell that micro-fiber furniture they're still paying for (but which is totally out of style now) seemed so damn important.Now, when you're young, is the best time to learn that you must spend less than what you make if you're going to be happy and free to pursue your life's interests. If you learn this one little trick, you will be rich because you always will have more than you need. This advice may not sell a lot of books, but it's all that works in the long run.This is a great gift for high school graduates. It's my standard gift and I often get great feedback from the kids.not to bad. not a lot of info i didn't already know. anyone whose in financial trouble i.e. prospective buyers likely already have the knowledge they would get from the book. want to skip the book? pay off your highest damaging loans asap. if you've done that...get a roth ira. not bad though, and it's only what 15$? cheap...although it's my thinking like that that is likely the cause for me needing financial planning books...I'm a college junior and only on the second chapter and am already impressed with this book. My mom's a Suze fan and I needed to learn more about my finances, so this book was a perfect fit. The only reason I gave it a 4/5 instead of 5/5 is because it seems to be geared perhaps a little more towards people who have already graduated and already having to deal with mortgages and debt etc instead of people like me who are simply trying to get a head start. However, that being said, this book really is amazing. It's a step-by-step financial process with an online supplement to boot. It also has a glossary with a lot of financial terms, just to make sure the lingo isn't over your head.It's really a great investment, I would recommend it to anyone wanting to learn more about money who's looking to safeguard their finances...oh, and who's young, fabulous, and broke.Suze Orman's book is about teaching young people how to value and respect money, a common theme throughout all of her work. She uses real-world examples to show why it's so important to a) get into a career that we love,and b) use this knowledge to move into a job that we can be happy with so we are not job-hopping. She also talks about the necessity of saving for retirement right now and not waiting until we are much older. At the end, I could definitely see where I didn't value money or myself.The best thing that I could you as to why you should read this book is that you will find yourself questioning your financial decisions and if you follow Suze's advice, you should do all right and hopefully be content someday with your money.
|
adam-recommended.com - The Money Book for the Young, Fabulous & Broke - Comparison Shopping and Read Reviews Index | Sitemap
