Tuesday, July 13, 2010

I Will Teach You to be Rich

I'm reading Ramit Sethi's I Will Teach You To Be Rich, which is basically a primer on personal finance aimed at people in their 20's and early 30's. The material seems to be just as relevant to me even though I'm a little older than the intended audience.

Here is a link to his website: http://www.iwillteachyoutoberich.com/

Here is the 6 week plan, which is basically the structure the book is based on.

6 Week Plan (copied from page 12)

In Week 1, you'll set up your credit cards and learn how to improve your credit history. [Even though this is one of those areas where I've been pretty good, it's worth going through the process of optimizing my credit profile.]

In Week 2, you'll set up the right bank accounts, including negotiating to get no-fee, high-interest accounts. [Interested to read what he has to say here.]

In Week 3, you'll open a 401(k) and an investment account (even if you have just $50 to start).

In 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. [I've already started tracking my spending, so I'm one step ahead].

In Week 5, you'll automate your new infrastructure to make your accounts play together nicely.

In 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.

I really like his step-by-step, keep it simple approach. I wish I'd paid more attention to this sort of thing back in the late 90's when I first started making decent money.

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