Top positive review
A Fantastic Resource for Beginners
Reviewed in the United States on December 1, 2017
This was a great book on personal finance for beginners.
If you're not familiar with the foundations of personal finance and want to start accumulating wealth: this is a fantastic book to get started with. It covers all the basic things you need to know to be successful at managing your money.
The main concept is this: you should save at least 1/8th of your total (pre-tax) income. If you have debt (other than a house), pay that off first. Then, in this order, stock your money away:
- In your 401k
- Roth IRA
- SEP IRA
- Taxable accounts
Use low-cost index funds (with a broker like Vanguard).
If you do this, you'll live well and build a significant pile of money.
The main idea of this strategy is that if you work a full-time job (and are doing 8 hours per day), you should be working at LEAST one hour per day for yourself (not your bills, etc.) -- this is where the 1/8th number comes from. If you can do more? That's great! If you can do less? Work on lowering your expenses or raising your income until you can make it happen.