I received a complimentary copy of Getting Started: The Financial Guide for a Younger Generation by Brian T. Jones, CFP®. On the back cover it proclaims: “This is NOT your parents' financial planning guide.”
This book encourages young people (and slightly older people like myself) to think about financial planning considerations that don't really seem immediate, and it was a little bit embarrassing to see that I haven't taken a number of steps that I should have taken long ago. I'll admit that it took me a while to make it through this book. The first couple of chapters were things that I was already doing (controlling my spending, practicing basic frugality, and staying out of debt) so I lost interest in the book for a while. Then, as the disapproving stares of the book got too much to bear, I picked up the book and finished it. Things got serious pretty fast.
The chapters of the book:
- Cash is King. This for most purposes is pretty basic — spend less than you earn and be careful about overspending once “real money” starts flowing in with the first job.
- Debt: Seeing Red. Again, this chapter is pretty basic. Don't get into consumer debt if you can possibly avoid it. For additional reinforcement, check out what these folks are needing to go through to get rid of their debt.
- Saying “I Do.” The process of getting married is where the pedal starts to hit the metal. This chapter discusses spending on the wedding, choosing registry items, and figuring out how to merge finances. (I identified with “scanning my fiancee's butt” with the laser gun during our registry list assembly. “I'll take one of these.” She thought it was amusing the first seventeen times I did it.)
- Living with Rug Rats. This part is where things started to get pretty serious. Estate planning. Life insurance. College savings. Big serious things.
- Real Estate. Eventually the apartment just doesn't cut it, and this chapter contains a few smart moves on how to buy a home.
- Retirement Planning. If Social Security and pensions aren't enough, and your fortune cookies keep telling you the wrong numbers for the lottery, what do you do to plan for your retirement? (Hint: It's a four-letter word that starts with “save.”)
- Risk Management. As in insurance. Liability insurance. Life insurance. Disability insurance. Homeowner's insurance. Auto insurance. Special riders to your insurance. If you're not covered comfortably and you make a mistake — who doesn't? — then most, or all of what you own will go away. Or, your survivors will be in dire straits.
- Estate Planning. (This is the part that was a little embarrassing because of how little I've done.) The best time to plan an estate is right now, if not sooner. If someone has an accident, someone becomes disabled, or someone (or more than one someone) dies, the estate plans already need to be in place. Otherwise, it's probably too late. The estate plans should be updated with each new child and each new spouse and each new big change in what you own or what you owe.
- Divorce. This isn't something that anyone likes to think about, but if you are married and get divorced — and the odds are, unfortunately, that you will — this chapter has a number of wise things to do. Some only take a minute, like updating beneficiaries, while others take much longer.
- Inheritance. A number of good things in this chapter, but the main point is “don't do anything stupid with an inheritance.”
The book started out a little slow but it finished very strong. I recommend Getting Started: The Financial Guide for a Younger Generation especially if you're just out of college. Don't wait until your mid-30s to do some of the things recommended in this book.
With the way things are going, this needs to be placed on the reading list of pre-schoolers! Further sign of modern times is "Divorce" having it's own chapter. C'est la vie, I suppose.
This is a very nice to post for today's generation. This financial guide will surely help not only these youngsters but also to others who want to invest their bucks for future prospects. Good blog. Keep posting.
Definitely hot cash is the king, so saving while the money flows is a very meaningful action especially in early ages.
This sounds like a good book. I probably know all the information in it, but I could see it being beneficial for others. I would suggest people read it in middle school. I think the earlier you learn these things, the better off you are.
I was taught a lot of values when it comes to money and I think that it has paid off!
All you need is the knowledge for approaching this market like a buyer. This applies for would-be homeowners or investors. How to Buy a Home will help you identify many factors you should address when you are purchasing real estate.