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當代財經大師的理財通識課：21招理財建議教你過上一個不缺錢的人生
金錢和人際關係、感情一樣，被視為人生最大的幾個焦慮來源之一，從日常生活的食衣住行，到結婚基金、孩子的教育經費、退休金的準備，大多數人每天總是在為缺錢而煩惱，而金錢更幾乎與快樂畫上等號。但克雷蒙將在本書為你打破這層連結，重新建構與金錢的關係，且提供21條理財通則幫助你穩定達成財務自由。
你有以下的理財困擾嗎？
●我完全不懂理財，一開始該做什麼？
先想一想：你為什麼想要理財？是想要買房、結婚、或為孩子存學費，還是養老？
你可以這樣做：首先要設定理財目標，至少要了解，我大概需要在什麼時候存到多少錢。其次，要弄清自己目前的財務狀況，像是目前的收入、存款、以及平常的生活開銷，這樣才能擬訂合適的理財策略。但，更重要的是，假若你發現自己無法滿足所有的財務目標，作者建議你：一定要先以存退休金為首要目標！
●我身背負債，根本沒有「財」可以理……
先想一想：這些債是怎麼來的？我能不能減少這些開銷？
你可以這樣做：先別管投資或儲蓄了，馬上從利息最高的債務開始依序還起，不這樣做的話只會愈來愈窮，只要消除這些債務帶給你的「負利效應」，將大大改善現金流與財務生活。
●我薪水很低，每個月房租跟生活費就占掉一半以上了，根本存不到錢……
先想一想：這些生活費，哪些是不必要的？
你可以這樣做：每次都是到月底才把花剩下的錢存起來嗎？從現在起，不如拿到薪水就把該存的存起來，剩下的即可放心花用，多存20%比投資多賺2%還強十倍。
●我想要投資，該買什麼呢？
先想一想：你有多少可支配的金錢和時間？
你可以這樣做：沒太多錢或是沒時間可以做研究的話，就別買個股了，直接買低成本、便宜的指數基金，可以省下大筆的手續費和交易費；同時用分散投資創造多元的投資組合，可以有效降低風險與提高長期獲利。
●我必須賺更多錢，才能過得幸福……
先想一想：你現在有立即的辦法可以賺更多錢嗎？
你可以這樣做：如果你現在沒辦法立即賺更多的錢，那你可以藉由改變用錢的方式來增加幸福感，像是(1)把錢花在購買體驗，而不是物品；(2)把錢花在朋友跟家人身上；(3)把錢用來幫助其他人。透過改變對錢的使用方式和想法，你將會對金錢產生感謝，而不是恐懼！
不論是青年、中年、還是老年，本書的21條理財通則可以在人生的任何階段為你提供明確的指引。這21條通則可以幫你減少支出、提高收入與儲蓄，並讓生活的各種層面更有保障，更重要的是，讓你的財務生活與快樂人生可以有效連結。
適合讀者
1.剛出社會，還不知道如何理財與投資的年輕人。
2.在社會打滾一段時間，仍存不了錢或被負債、房租追著跑的月光族。
3.不想讓子女為金錢所困，想為他們打好理財基礎的爸爸媽媽。
本書特色
1.面面俱到的21堂理財課，負債、儲蓄、花費、投資，一本書涵蓋全部你需要知道的理財知識。
2.簡單、務實的執行方式，每天花點時間閱讀、按照書中建議，即可有效打點財務生活。
3.不限年齡，本書的理財建議涵蓋人生的每一階段，任何讀者都能從中受益。
你有以下的理財困擾嗎？
●我完全不懂理財，一開始該做什麼？
先想一想：你為什麼想要理財？是想要買房、結婚、或為孩子存學費，還是養老？
你可以這樣做：首先要設定理財目標，至少要了解，我大概需要在什麼時候存到多少錢。其次，要弄清自己目前的財務狀況，像是目前的收入、存款、以及平常的生活開銷，這樣才能擬訂合適的理財策略。但，更重要的是，假若你發現自己無法滿足所有的財務目標，作者建議你：一定要先以存退休金為首要目標！
●我身背負債，根本沒有「財」可以理……
先想一想：這些債是怎麼來的？我能不能減少這些開銷？
你可以這樣做：先別管投資或儲蓄了，馬上從利息最高的債務開始依序還起，不這樣做的話只會愈來愈窮，只要消除這些債務帶給你的「負利效應」，將大大改善現金流與財務生活。
●我薪水很低，每個月房租跟生活費就占掉一半以上了，根本存不到錢……
先想一想：這些生活費，哪些是不必要的？
你可以這樣做：每次都是到月底才把花剩下的錢存起來嗎？從現在起，不如拿到薪水就把該存的存起來，剩下的即可放心花用，多存20%比投資多賺2%還強十倍。
●我想要投資，該買什麼呢？
先想一想：你有多少可支配的金錢和時間？
你可以這樣做：沒太多錢或是沒時間可以做研究的話，就別買個股了，直接買低成本、便宜的指數基金，可以省下大筆的手續費和交易費；同時用分散投資創造多元的投資組合，可以有效降低風險與提高長期獲利。
●我必須賺更多錢，才能過得幸福……
先想一想：你現在有立即的辦法可以賺更多錢嗎？
你可以這樣做：如果你現在沒辦法立即賺更多的錢，那你可以藉由改變用錢的方式來增加幸福感，像是(1)把錢花在購買體驗，而不是物品；(2)把錢花在朋友跟家人身上；(3)把錢用來幫助其他人。透過改變對錢的使用方式和想法，你將會對金錢產生感謝，而不是恐懼！
不論是青年、中年、還是老年，本書的21條理財通則可以在人生的任何階段為你提供明確的指引。這21條通則可以幫你減少支出、提高收入與儲蓄，並讓生活的各種層面更有保障，更重要的是，讓你的財務生活與快樂人生可以有效連結。
適合讀者
1.剛出社會，還不知道如何理財與投資的年輕人。
2.在社會打滾一段時間，仍存不了錢或被負債、房租追著跑的月光族。
3.不想讓子女為金錢所困，想為他們打好理財基礎的爸爸媽媽。
本書特色
1.面面俱到的21堂理財課，負債、儲蓄、花費、投資，一本書涵蓋全部你需要知道的理財知識。
2.簡單、務實的執行方式，每天花點時間閱讀、按照書中建議，即可有效打點財務生活。
3.不限年齡，本書的理財建議涵蓋人生的每一階段，任何讀者都能從中受益。
208 pages, ebook
First published January 1, 2009
28 people are currently reading
470 people want to read
About the author
Jonathan Clements
10 books44 followersJonathan Clements is the author of "How to Think About Money" and editor of HumbleDollar.com. He was born in England, graduated from Cambridge University and now lives just outside New York City. He wrote for Euromoney and Forbes before joining The Wall Street Journal, where he worked for almost 20 years. He also spent six years at Citigroup as Director of Financial Education for the bank's U.S. wealth-management business. Jonathan has written seven books -- a novel and six guides to personal finance. For additional information, go to HumbleDollar.com. You can follow Jonathan on Twitter @ClementsMoney or on Facebook at Jonathan Clements Money Guide.
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October 13, 2025
Source : Hoopla Audiobook. My review is that this is a solid book with common sense ideas .
The following is a bunch of notes from the book and from other sites.
Financial Philosophy
Money is a means to an end, you need to know what your goals are.
Don’t neglect today while saving for tomorrow.
Think harder about how we spend our money and time.
Money is emotional, settle for a strategy that you can stick with along the way.
Financial management includes our debts, homes, children, and income-earning abilities.
Focus on the things we can control (e.g. savings, investment cost, risk taking).
Simple is better.
How to Squeeze More Happiness from Dollars
Buy experiences, rather than things.
Count your blessings. Go out and celebrate, put up photos, admire what you have. This gives more happiness for your buck.
Strive for a sense of control, avoid uncertainty (e.g. large debt, long commute).
Find a purpose. You want to feel you’re making progress each day. You will likely be far happier than lazing around the rest of your life.
Give a little, it makes us feel good.
Make time for friends and family.
Portfolio Management
If you have a steady, bond-like, income, consider diversifying by buying stocks.
Set target portfolio percentages for each asset class (e.g. U.S. small caps, U.S. large caps, commodities, etc.) and regularly adjust your portfolio to bring it in line with those targets. The exact portfolio percentages are far less important than your willingness to stick with them (i.e. do not lower the % in a crisis).
Budgeting
Budgeting doesn’t work for most people. It is better off forgetting the budget and instead simply sock away money as soon as we get our paycheck. Sock away 10-15% of your salary and force yourself to live on whatever remains, “pay yourself first”.
Keep core living expenses to 50% or less of pretax income. Core living expenses include mortgage/rent, utilities, food, and insurance. The other 50% is for entertainment, savings, and taxes.
Housing
Buy a home that is the right size for you and your family, and no larger. That way, you won’t be wasting rent which you could have earned if the money is spent on another property.
Historically, average home price appreciation over 30 years is 4.7%. Subtract the property tax, maintenance cost, insurance (adds up to ~3% or more of the home value), your home investment is not even keeping pace with inflation (~3.8% a year). There is also the cost of 5-6% commission for buying and selling a house.
Early gains on the home price when your leverage high is set against high interest costs at the start. Later gains on the home price when you have paid down most of the mortgage means the debt leverage is lost.
Real estate market is less volatile because owners don’t get daily price information, they have to live somewhere so they don’t easily sell their homes, and during real estate downturns they hang on to their homes and make the monthly mortgage payments.
Retirement
You don’t have to own a big house, and you don’t have to pay for the kids’ college, but one day you will have to retire. Deal with retirement early. Don’t deal with house, kids, and retirement sequentially (in your 30s, 40s, 50s).
In retirement, hold a cash reserve equal to 5 years of spending money (can be placed in short-term bond funds, money market funds, and CODs) so you reduce the risk you’ll need to sell stocks during a bear market.
Living off bond income does not counteract inflation, you need to hold stocks or buy perpetuities. Delay getting your Social Security benefits.
Taxes
While mortgage interest helps to reduce taxes, the money to pay the mortgage needs to come from somewhere. If it comes from selling investments, it can create additional taxable income.
Tax deduction for retirement account contributions is enormously valuable. The initial tax deduction often pays for the eventual tax bill when you withdraw the money.
To defer taxes for as long as possible, hold stocks (diversified, tax-efficient, low-cost funds) in your taxable account and bonds in your retirement account. This will defer the tax bill on the bond interest, and tax-efficient stock funds will keep the tax bill modest. People may think that bonds should be in a taxable account because it is less volatile and it can be sold if money is needed in an emergency, however what you can do is to sell the stocks in taxable account, and in the retirement account, move the same amount from bonds to stocks which will not incur taxes.
If you lost your job, just retired, or have very little taxable income, consider deliberately realizing gains to take advantage of being in a lower tax bracket.
Insurance
Forget about extended warranty, trip cancellation insurance, it is not a financial disaster.
Policies with low deductibles is more costlier, and may cause people to mistakenly shorten the protection period. You can likely afford the initial payment if you are working, if not you can create a separate emergency reserve with 3-6 months of living expenses.
Life insurance with cash-value comes with high premiums, and may cause people to mistakenly shorten the protection period, term insurance is better. The money that goes into cash-value insurance also does not get tax-deferred growth, better to put the money in a retirement account.
The best way to cut insurance costs is to amass a decent amount of savings so you need less insurance. When your children grow up, you may not need insurance since you no longer have financial dependents.
Children
It costs more then $200,000 for a middle-income family to raise a child through to his 18th birthday (U.S. Department of Agriculture). College costs are on top of that.
Raise money-smart kids who know how to live within their means. Give them an allowance and force them to live within that budget.
Death
A Will may not apply for most of your assets. Check the rights of survivorship for your home, the beneficiaries of your retirement account and life insurance.
Check whether a living trust (your assets placed in the trust) will have a lower legal bill than going through a Will / court.
A bypass trust will allow your estate to flow into a trust and avoid estate taxes up to $3.5M a spouse.
Draft a letter of instructions on the sort of funeral you want, where key documents are located, who should get your personal effects.
Draw a living will that specifies your wishes concerning life-prolonging medical procedures, health care power of attorney, durable power of attorney for financial decisions, should you become incapacitated.
If you are distributing your assets unevenly, set expectations with your family so that they do not contest and fight over your will.
Life
Focus on the things we can control: looking after our health, keeping spending habits modest, raising money-smart kids, etc.
Don’t feel badly about things we can’t control: employer in financial trouble, parents are poor, etc.
You don’t need large income or portfolio to squeeze a heap of happiness out of what you have.
Strive to ensure money is enhancing your life, rather than getting in the way.
Good Examples
If your goal is to have more time with family, ditch the high-spending lifestyle so you don’t have to worry about getting the next pay raise, and go for the smaller house closer to work so you save commuting time.
If you really want to quit your job and do something more fulfilling, stop shopping as much and start saving like crazy.
If you are fearful that your family cannot cope without you, get a will, buy life insurance, and check the beneficiaries on your retirement accounts.
If you are saving diligently for a 30-year retirement, spend time looking after your health so your body can last as long.
Quotes from Bill Bernstein’s Forward:
“When you invest you are squarely in Pascal’s Wager territory. You could be wrong.”
“Reaching for higher returns has sent many an investor to the poorhouse.”
“Remember, the name of the game isn’t to get rich; it’s to not become poor.”
Quotes from Jonathan Clements:
“Money is a means to an end. It isn’t an end in itself.”
“Let’s stop worrying about the things we can’t control and focus on the things we can.”
“Simpler is usually better, because it will often involve lower costs and less chance for foolishness.”
“Social Security, in its current form, is like owning a big inflation-indexed bond, delivering a stream of income that rises along with inflation.”
“You don’t have to own a big house and you don’t have to pay for the kids’ college, but one day you will have to retire.”
“If you don’t start saving for retirement by your thirties, it can be awfully tough to amass enough by age 65.”
“We often find ourselves running on the hedonic treadmill, desperately pursuing happiness, but never making much progress.”
“Research suggests that commuting is terrible for happiness, often ranking as the worst part of our day.”
“Volunteering isn’t just good for community. It also makes us feel good.”
“Looking for a good way to spend your money and your time? Try spending it with friends and family.”
“Give me a choice between some savvy investors and some diligent savers, and I’d bet on the savers every time.”
“Carrying a credit card balance, and paying the often onerous financing charges, ranks as one of the most foolish financial mistakes.”
“We are better off forgetting the budget and instead simply socking away money as soon as we get our paycheck.”
“The best day to start is today.”
“If we can get through those discouraging initial years and accumulate a modest portfolio, the rewards can be immense.”
“If you’re aiming to amass $1 million by age 65, you would need to sock away a hefty $2,423 a month if you start saving at age 45. But if you begin at age 25, the required monthly sum drops by roughly three quarters, to just $653 (assuming a 5% annual return).”
“Start with this brutal truth: No investment is free of all risk.”
“Unfathomable things happen in the financial markets with surprising frequency.”
“You can’t be sure how the various markets will perform—but you can control how much risk you take.”
“If investments offer high returns, they must involve high risk.”
“Be leery of alternatives, stick with the simplicity of plain-vanilla, low cost mutual funds.”
“Mentally divide your portfolio into growth money and safe money. Expect a rough ride from the former and comfort from the latter.”
“The basic asset-allocation decision—how we divide our money between stocks, bonds, and cash investments, and hard assets—is one of the most crucial financial choices we make.”
“Nobody should be all stocks.”
“You probably shouldn’t invest in the stock market unless you have a minimum of seven or eight years to invest.”
“It’s easy to be big and brave during rip-roaring bull markets. It is a lot harder during those relentless bear market declines.”
“You probably shouldn’t invest a high percentage of your money in stocks until you’ve lived through a 20 percent-plus stock market decline.”
“Why rebalance? It’s about controlling risk.”
“Every year or so, look to rebalance by bringing your stocks, bonds, hard assets, and cash investments back into line with your target percentages.”
“Expect world economies to continue growing? With any luck, stocks will go along for the ride.”
“While tumbling share prices typically cause investors to turn cautious, the rational response is to become more optimistic.”
“Rising interest rates can hurt your bond portfolio’s value in the short term, while simultaneously raising its expected long-run return.”
“Getting it (wealth) is one thing. Keeping it is another.”
“Many people pay precious little attention to investment costs and taxes. This partly reflects investors’ single-minded focus on performance.”
“Picking winners isn’t easy. Most fund managers don’t perform well enough to recoup the fees they charge.”
“Over a five-year stretch, each bond and money fund category’s top performers are almost always the funds with the lowest annual expenses.”
“Aiming for average is the only sure way to win. – If we try to beat the stock market, we also run the risk of lagging behind.”
“The more we spend trying to beat the market, the tougher it is to succeed.”
“Unlike investors who try to beat the market, index fund investors enjoy what’s called relative certainty.”
“Whenever you’re tempted to speculate on individual stocks, think about the folks on the other side of the trade and whether you really know more than they do.”
“A globally diversified portfolio often provides scant comfort during major market meltdowns, when all assets tend to sink simultaneously.”
“Any strategy that involves predicting returns, especially short-term returns, is likely to be a dud.”
“If you lose 50%, to make yourself whole, you need 100%."
“Unless you are in poor health when you retire, you should probably err on the side of caution and plan for a retirement that extends to age 90 and maybe beyond.”
“Forget the traditional approach favored by retirees, which is to buy bonds and live off the income.”
“If you want to lock up additional lifetime income, look into immediate fixed annuities.”
“Investing is simple, and yet it sure isn’t easy.”
“Sensible money management is pretty straightforward: We need to save regularly, control risk, buy a few funds, hold down costs, and keep half an eye on taxes.”
“If an investment is highly popular, there is a good chance it is overpriced.”
“If you agonize over each investment you own, consider mutual funds that provide one-stop investment shopping (target/life -cycle) funds.
“Be sure to buy a house that is the right size for you and your family—and no larger.”
“Sometimes paying down debt is the best investment we can make.”
“Ignore the naysayers and make the most of 401(k) and other retirement accounts.”
“How can you postpone paying taxes? First, you could fund tax-deferred retirement accounts. – Second, you can hold off selling the winning investments you own in your taxable account.”
“You want diversified, tax-efficient, low-cost funds whose fortunes don’t hinge on the success of one or two fund managers. That, of course, is pretty much the definition of an index fund.”
“Forget the extended warranty that the salesperson tries to get you to buy, right after he or she has told you how wonderful the product is.”
“If you don’t have financial dependents, you probably don’t need life insurance.”
“If you never updated the beneficiaries on your life insurance (and IRA), and it still lists your ex-husband, there’s a good chance he’ll get the last laugh.”
“Make sure your financial affairs are well organized and talk to your family about what they can expect from your estate.”
“According the U.S. Department of Agriculture, it cost more than $200,000 for a middle-income family to raise a child through to his eighteenth birthday. Parents then have college costs on top of that.”
“The richest family in the neighborhood may live in the smallest house with the oldest cars.”
“Neither spendthrifts nor misers deserve our admiration.”
“Look after your health, so you last almost as long as your savings.”
“If we’re thoughtful about how we manage our money, we could grow wealthy over time—and maybe more important, we’ll have some financial peace of mind along the way.”
The following is a bunch of notes from the book and from other sites.
Financial Philosophy
Money is a means to an end, you need to know what your goals are.
Don’t neglect today while saving for tomorrow.
Think harder about how we spend our money and time.
Money is emotional, settle for a strategy that you can stick with along the way.
Financial management includes our debts, homes, children, and income-earning abilities.
Focus on the things we can control (e.g. savings, investment cost, risk taking).
Simple is better.
How to Squeeze More Happiness from Dollars
Buy experiences, rather than things.
Count your blessings. Go out and celebrate, put up photos, admire what you have. This gives more happiness for your buck.
Strive for a sense of control, avoid uncertainty (e.g. large debt, long commute).
Find a purpose. You want to feel you’re making progress each day. You will likely be far happier than lazing around the rest of your life.
Give a little, it makes us feel good.
Make time for friends and family.
Portfolio Management
If you have a steady, bond-like, income, consider diversifying by buying stocks.
Set target portfolio percentages for each asset class (e.g. U.S. small caps, U.S. large caps, commodities, etc.) and regularly adjust your portfolio to bring it in line with those targets. The exact portfolio percentages are far less important than your willingness to stick with them (i.e. do not lower the % in a crisis).
Budgeting
Budgeting doesn’t work for most people. It is better off forgetting the budget and instead simply sock away money as soon as we get our paycheck. Sock away 10-15% of your salary and force yourself to live on whatever remains, “pay yourself first”.
Keep core living expenses to 50% or less of pretax income. Core living expenses include mortgage/rent, utilities, food, and insurance. The other 50% is for entertainment, savings, and taxes.
Housing
Buy a home that is the right size for you and your family, and no larger. That way, you won’t be wasting rent which you could have earned if the money is spent on another property.
Historically, average home price appreciation over 30 years is 4.7%. Subtract the property tax, maintenance cost, insurance (adds up to ~3% or more of the home value), your home investment is not even keeping pace with inflation (~3.8% a year). There is also the cost of 5-6% commission for buying and selling a house.
Early gains on the home price when your leverage high is set against high interest costs at the start. Later gains on the home price when you have paid down most of the mortgage means the debt leverage is lost.
Real estate market is less volatile because owners don’t get daily price information, they have to live somewhere so they don’t easily sell their homes, and during real estate downturns they hang on to their homes and make the monthly mortgage payments.
Retirement
You don’t have to own a big house, and you don’t have to pay for the kids’ college, but one day you will have to retire. Deal with retirement early. Don’t deal with house, kids, and retirement sequentially (in your 30s, 40s, 50s).
In retirement, hold a cash reserve equal to 5 years of spending money (can be placed in short-term bond funds, money market funds, and CODs) so you reduce the risk you’ll need to sell stocks during a bear market.
Living off bond income does not counteract inflation, you need to hold stocks or buy perpetuities. Delay getting your Social Security benefits.
Taxes
While mortgage interest helps to reduce taxes, the money to pay the mortgage needs to come from somewhere. If it comes from selling investments, it can create additional taxable income.
Tax deduction for retirement account contributions is enormously valuable. The initial tax deduction often pays for the eventual tax bill when you withdraw the money.
To defer taxes for as long as possible, hold stocks (diversified, tax-efficient, low-cost funds) in your taxable account and bonds in your retirement account. This will defer the tax bill on the bond interest, and tax-efficient stock funds will keep the tax bill modest. People may think that bonds should be in a taxable account because it is less volatile and it can be sold if money is needed in an emergency, however what you can do is to sell the stocks in taxable account, and in the retirement account, move the same amount from bonds to stocks which will not incur taxes.
If you lost your job, just retired, or have very little taxable income, consider deliberately realizing gains to take advantage of being in a lower tax bracket.
Insurance
Forget about extended warranty, trip cancellation insurance, it is not a financial disaster.
Policies with low deductibles is more costlier, and may cause people to mistakenly shorten the protection period. You can likely afford the initial payment if you are working, if not you can create a separate emergency reserve with 3-6 months of living expenses.
Life insurance with cash-value comes with high premiums, and may cause people to mistakenly shorten the protection period, term insurance is better. The money that goes into cash-value insurance also does not get tax-deferred growth, better to put the money in a retirement account.
The best way to cut insurance costs is to amass a decent amount of savings so you need less insurance. When your children grow up, you may not need insurance since you no longer have financial dependents.
Children
It costs more then $200,000 for a middle-income family to raise a child through to his 18th birthday (U.S. Department of Agriculture). College costs are on top of that.
Raise money-smart kids who know how to live within their means. Give them an allowance and force them to live within that budget.
Death
A Will may not apply for most of your assets. Check the rights of survivorship for your home, the beneficiaries of your retirement account and life insurance.
Check whether a living trust (your assets placed in the trust) will have a lower legal bill than going through a Will / court.
A bypass trust will allow your estate to flow into a trust and avoid estate taxes up to $3.5M a spouse.
Draft a letter of instructions on the sort of funeral you want, where key documents are located, who should get your personal effects.
Draw a living will that specifies your wishes concerning life-prolonging medical procedures, health care power of attorney, durable power of attorney for financial decisions, should you become incapacitated.
If you are distributing your assets unevenly, set expectations with your family so that they do not contest and fight over your will.
Life
Focus on the things we can control: looking after our health, keeping spending habits modest, raising money-smart kids, etc.
Don’t feel badly about things we can’t control: employer in financial trouble, parents are poor, etc.
You don’t need large income or portfolio to squeeze a heap of happiness out of what you have.
Strive to ensure money is enhancing your life, rather than getting in the way.
Good Examples
If your goal is to have more time with family, ditch the high-spending lifestyle so you don’t have to worry about getting the next pay raise, and go for the smaller house closer to work so you save commuting time.
If you really want to quit your job and do something more fulfilling, stop shopping as much and start saving like crazy.
If you are fearful that your family cannot cope without you, get a will, buy life insurance, and check the beneficiaries on your retirement accounts.
If you are saving diligently for a 30-year retirement, spend time looking after your health so your body can last as long.
Quotes from Bill Bernstein’s Forward:
“When you invest you are squarely in Pascal’s Wager territory. You could be wrong.”
“Reaching for higher returns has sent many an investor to the poorhouse.”
“Remember, the name of the game isn’t to get rich; it’s to not become poor.”
Quotes from Jonathan Clements:
“Money is a means to an end. It isn’t an end in itself.”
“Let’s stop worrying about the things we can’t control and focus on the things we can.”
“Simpler is usually better, because it will often involve lower costs and less chance for foolishness.”
“Social Security, in its current form, is like owning a big inflation-indexed bond, delivering a stream of income that rises along with inflation.”
“You don’t have to own a big house and you don’t have to pay for the kids’ college, but one day you will have to retire.”
“If you don’t start saving for retirement by your thirties, it can be awfully tough to amass enough by age 65.”
“We often find ourselves running on the hedonic treadmill, desperately pursuing happiness, but never making much progress.”
“Research suggests that commuting is terrible for happiness, often ranking as the worst part of our day.”
“Volunteering isn’t just good for community. It also makes us feel good.”
“Looking for a good way to spend your money and your time? Try spending it with friends and family.”
“Give me a choice between some savvy investors and some diligent savers, and I’d bet on the savers every time.”
“Carrying a credit card balance, and paying the often onerous financing charges, ranks as one of the most foolish financial mistakes.”
“We are better off forgetting the budget and instead simply socking away money as soon as we get our paycheck.”
“The best day to start is today.”
“If we can get through those discouraging initial years and accumulate a modest portfolio, the rewards can be immense.”
“If you’re aiming to amass $1 million by age 65, you would need to sock away a hefty $2,423 a month if you start saving at age 45. But if you begin at age 25, the required monthly sum drops by roughly three quarters, to just $653 (assuming a 5% annual return).”
“Start with this brutal truth: No investment is free of all risk.”
“Unfathomable things happen in the financial markets with surprising frequency.”
“You can’t be sure how the various markets will perform—but you can control how much risk you take.”
“If investments offer high returns, they must involve high risk.”
“Be leery of alternatives, stick with the simplicity of plain-vanilla, low cost mutual funds.”
“Mentally divide your portfolio into growth money and safe money. Expect a rough ride from the former and comfort from the latter.”
“The basic asset-allocation decision—how we divide our money between stocks, bonds, and cash investments, and hard assets—is one of the most crucial financial choices we make.”
“Nobody should be all stocks.”
“You probably shouldn’t invest in the stock market unless you have a minimum of seven or eight years to invest.”
“It’s easy to be big and brave during rip-roaring bull markets. It is a lot harder during those relentless bear market declines.”
“You probably shouldn’t invest a high percentage of your money in stocks until you’ve lived through a 20 percent-plus stock market decline.”
“Why rebalance? It’s about controlling risk.”
“Every year or so, look to rebalance by bringing your stocks, bonds, hard assets, and cash investments back into line with your target percentages.”
“Expect world economies to continue growing? With any luck, stocks will go along for the ride.”
“While tumbling share prices typically cause investors to turn cautious, the rational response is to become more optimistic.”
“Rising interest rates can hurt your bond portfolio’s value in the short term, while simultaneously raising its expected long-run return.”
“Getting it (wealth) is one thing. Keeping it is another.”
“Many people pay precious little attention to investment costs and taxes. This partly reflects investors’ single-minded focus on performance.”
“Picking winners isn’t easy. Most fund managers don’t perform well enough to recoup the fees they charge.”
“Over a five-year stretch, each bond and money fund category’s top performers are almost always the funds with the lowest annual expenses.”
“Aiming for average is the only sure way to win. – If we try to beat the stock market, we also run the risk of lagging behind.”
“The more we spend trying to beat the market, the tougher it is to succeed.”
“Unlike investors who try to beat the market, index fund investors enjoy what’s called relative certainty.”
“Whenever you’re tempted to speculate on individual stocks, think about the folks on the other side of the trade and whether you really know more than they do.”
“A globally diversified portfolio often provides scant comfort during major market meltdowns, when all assets tend to sink simultaneously.”
“Any strategy that involves predicting returns, especially short-term returns, is likely to be a dud.”
“If you lose 50%, to make yourself whole, you need 100%."
“Unless you are in poor health when you retire, you should probably err on the side of caution and plan for a retirement that extends to age 90 and maybe beyond.”
“Forget the traditional approach favored by retirees, which is to buy bonds and live off the income.”
“If you want to lock up additional lifetime income, look into immediate fixed annuities.”
“Investing is simple, and yet it sure isn’t easy.”
“Sensible money management is pretty straightforward: We need to save regularly, control risk, buy a few funds, hold down costs, and keep half an eye on taxes.”
“If an investment is highly popular, there is a good chance it is overpriced.”
“If you agonize over each investment you own, consider mutual funds that provide one-stop investment shopping (target/life -cycle) funds.
“Be sure to buy a house that is the right size for you and your family—and no larger.”
“Sometimes paying down debt is the best investment we can make.”
“Ignore the naysayers and make the most of 401(k) and other retirement accounts.”
“How can you postpone paying taxes? First, you could fund tax-deferred retirement accounts. – Second, you can hold off selling the winning investments you own in your taxable account.”
“You want diversified, tax-efficient, low-cost funds whose fortunes don’t hinge on the success of one or two fund managers. That, of course, is pretty much the definition of an index fund.”
“Forget the extended warranty that the salesperson tries to get you to buy, right after he or she has told you how wonderful the product is.”
“If you don’t have financial dependents, you probably don’t need life insurance.”
“If you never updated the beneficiaries on your life insurance (and IRA), and it still lists your ex-husband, there’s a good chance he’ll get the last laugh.”
“Make sure your financial affairs are well organized and talk to your family about what they can expect from your estate.”
“According the U.S. Department of Agriculture, it cost more than $200,000 for a middle-income family to raise a child through to his eighteenth birthday. Parents then have college costs on top of that.”
“The richest family in the neighborhood may live in the smallest house with the oldest cars.”
“Neither spendthrifts nor misers deserve our admiration.”
“Look after your health, so you last almost as long as your savings.”
“If we’re thoughtful about how we manage our money, we could grow wealthy over time—and maybe more important, we’ll have some financial peace of mind along the way.”
February 3, 2022
i read this book in one sitting not because i was interested but because i was required to write a paper about it AND THE DEADLINE WAS LAST WEEK (:
October 9, 2009
Mostly common sense stuff, but a great overview of your financial future. Some good information, but it won't make you are market millionaire.
October 5, 2015
Great advice on saving money, paying off debt, and building your future wealth. This is stuff everyone should know.
Read
October 24, 2019Simple and short. Nothing too surprising, but made me rethink a few things. So maybe it's 4 stars...
July 20, 2020
📚 Rating: 3.75/5
|| BOOK REVIEW || - 🍁 The book, The Little Book of Main Street Money by Jonathan Clements, has twenty-one chapters. Each chapter depicts a simple truth which definitely helps in money management in your life. It mostly, talks about investment and debts. But also has the powerful lessons on savings. The book tells importance of timely investments and how much and where to invest the amount you have saved. The book has an important learning on whether to raise the standard of living. The book comprises of simple but profound truths and these shall help you to be more aware about how and where to spend your hard earned money.
🍂 🍂 🍂
🍁 Retirement plannings and some other mentioning of investments is there, which if you are layman, you would not understand but keep reading. You would still be benefitted through the implemention of what an author has shared in the book.
🍂 🍂 🍂
|| PERSONAL INSIGHT || - 🌸 The book, The Little Book of Main Street Money, is something you must read if you want to learn Personal Finance. And as always, " Investment in attaining mastery of your mind and money always pays best interest." The book tells about importance of savings. Gone were the days when only necessities were bought. But nowadays, every other luxury item seems like it must be bought as soon as possible. The book is intelligently framed. If you read this book and implement the concepts written in the book then you would probably never have to read another book on how to manage your money. Each chapter is conscise in nature. The book has the magic ingredient, which is author's strategies on different money matters.
🍂 🍂 🍂
🌸 It was a delight for me to read the book as am an MBA finance. But this book is free from jargons. Hence, any layman can read and understand the book concepts. Do implement whatever is written in the book.
|| BOOK REVIEW || - 🍁 The book, The Little Book of Main Street Money by Jonathan Clements, has twenty-one chapters. Each chapter depicts a simple truth which definitely helps in money management in your life. It mostly, talks about investment and debts. But also has the powerful lessons on savings. The book tells importance of timely investments and how much and where to invest the amount you have saved. The book has an important learning on whether to raise the standard of living. The book comprises of simple but profound truths and these shall help you to be more aware about how and where to spend your hard earned money.
🍂 🍂 🍂
🍁 Retirement plannings and some other mentioning of investments is there, which if you are layman, you would not understand but keep reading. You would still be benefitted through the implemention of what an author has shared in the book.
🍂 🍂 🍂
|| PERSONAL INSIGHT || - 🌸 The book, The Little Book of Main Street Money, is something you must read if you want to learn Personal Finance. And as always, " Investment in attaining mastery of your mind and money always pays best interest." The book tells about importance of savings. Gone were the days when only necessities were bought. But nowadays, every other luxury item seems like it must be bought as soon as possible. The book is intelligently framed. If you read this book and implement the concepts written in the book then you would probably never have to read another book on how to manage your money. Each chapter is conscise in nature. The book has the magic ingredient, which is author's strategies on different money matters.
🍂 🍂 🍂
🌸 It was a delight for me to read the book as am an MBA finance. But this book is free from jargons. Hence, any layman can read and understand the book concepts. Do implement whatever is written in the book.
January 16, 2023
This is a little book, quite literally. It contains 21 small chapters about the aspects of personal finance by taking lessons from the investors whom the author came across during his time in financial journalism.
Over time, if you do financial planning, you will come across the topics like asset allocation, retirement funds, debts, savings etc. This book broadly explains your approach while dealing with all this stuff.
Some helpful things are the diversification in equities and bonds to appreciate and conserve wealth. The author tells you to get rid of debts as soon as possible. Get insured. The summaries at the end of each chapter are actually important.
For mutual funds and investment in equities, an index fund is your saviour. Want to diversify in the money and bond market? Pick up an index fund. Wish to invest in foreign markets? Choose an index fund. Have some exposure in small and mid-cap? You know the answer now.
Basically, play with index funds because they track the broader market and are cheap.
The book is written in such a language that it would be helpful for beginners. To those who are already well-versed in the markets and finance, this book will not give you unknown details. All in all, 3.5 out of 5.
Over time, if you do financial planning, you will come across the topics like asset allocation, retirement funds, debts, savings etc. This book broadly explains your approach while dealing with all this stuff.
Some helpful things are the diversification in equities and bonds to appreciate and conserve wealth. The author tells you to get rid of debts as soon as possible. Get insured. The summaries at the end of each chapter are actually important.
For mutual funds and investment in equities, an index fund is your saviour. Want to diversify in the money and bond market? Pick up an index fund. Wish to invest in foreign markets? Choose an index fund. Have some exposure in small and mid-cap? You know the answer now.
Basically, play with index funds because they track the broader market and are cheap.
The book is written in such a language that it would be helpful for beginners. To those who are already well-versed in the markets and finance, this book will not give you unknown details. All in all, 3.5 out of 5.
October 27, 2017
This book exemplifies the series of "Little Books" on investment and finance. These short, easy to read and understand books address investments without all of the jargon and obfuscation that's all-too-often used to separate a fool from his (or her) money.
Jonathan Clements was the personal finance columnist at The Wall Street Journal for nearly two decades (and now writes at HumbleDollar.com). He's skilled at demystifying the world of personal finance, and he's seen it all. This book is simple, easy to understand, and designed for the average person. There are no "get rick quick" schemes here: just commonsense approaches to build wealth over time, with a minimum of risk. The "Wall Street" crowd can have their derivatives and synthetic collateralized debt obligations and all the other drama. Clements encourages the "Main Street" crowd to avoid speculating, use index funds to match the market returns, keep your costs and fees low, and live peacefully within your means. That's all we need, and that can be more than enough.
Jonathan Clements was the personal finance columnist at The Wall Street Journal for nearly two decades (and now writes at HumbleDollar.com). He's skilled at demystifying the world of personal finance, and he's seen it all. This book is simple, easy to understand, and designed for the average person. There are no "get rick quick" schemes here: just commonsense approaches to build wealth over time, with a minimum of risk. The "Wall Street" crowd can have their derivatives and synthetic collateralized debt obligations and all the other drama. Clements encourages the "Main Street" crowd to avoid speculating, use index funds to match the market returns, keep your costs and fees low, and live peacefully within your means. That's all we need, and that can be more than enough.
April 1, 2021
- Wall Street is tough to love.
- If we take care of today, we will likely find we are also taking care of tomorrow.
- We Can’t Have It All. And That Means We Need to Make Tough Financial Choices
- EVERYTHING’S A TRADEOFF.
- No investment is free of all risk.
- Aim to buy a home that’s the right size for you and your family—and no larger.
- Family Can Be Our Greatest Asset—and Our Greatest Liability
June 3, 2021
This book is brilliant. I listened to the audiobook in one day doing chores around the house shopping for groceries and going for a walk. It was very thought provoking. Although slightly out of date, the information is still relevant and agrees with updated material I have read. Very concise and helpful. Must read.
October 14, 2024
Mostly common sense information. The author advises to invest in global index funds, diversify the portfolio and be sure that all investments are inclined with risk. Paying off debts (credit card debts) with high interests is the most important thing. Many tips are made from an american perspective, so as a swede the information is less relevant. Start investing early; the younger, the better.
February 13, 2020
Great book! Dense content, so I had to rewind and re-listen to several parts. But great overview of macro personal finance.
December 5, 2020
Short, solid, sound.
October 7, 2022
金錢可以讓你藉之達成某種目的，但它卻並非目的本身。
我們不應當忽略眼前。如果我們能把眼前的事照顧好，多半就能處理好未來的事。
我們應當要好好地思考一下自己要的究竟是什麼。
金錢其實是一種頗為情緒的東西。
我們應該專注於自己可以控制的事。
單純化始終是理財的最佳策略之一。因為通常這樣做的成本會較低，犯錯的機率也較小。
我們不應當忽略眼前。如果我們能把眼前的事照顧好，多半就能處理好未來的事。
我們應當要好好地思考一下自己要的究竟是什麼。
金錢其實是一種頗為情緒的東西。
我們應該專注於自己可以控制的事。
單純化始終是理財的最佳策略之一。因為通常這樣做的成本會較低，犯錯的機率也較小。
This entire review has been hidden because of spoilers.
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November 25, 2024Generic book on money management. Does a better job than many sophisticated books on the same topic.
Use this as a guide or reference- good for all experience levels.
Use this as a guide or reference- good for all experience levels.
June 7, 2013
Jonathan Clements is my all-time favorite personal finance writer. His approach is fact-based and sensible, he's a lively writer who can untangle the most confounding issues, he has a fluid and engaging writing style, and he's not in the least pretentious. Clements delivers the truth succinctly and memorably. For example: "We associate wealth with the trappings of wealth, including the designer clothes and the luxury cars. But these trappings aren't a sign of wealth. Rather, they are a sign of money spent--and the people involved are poorer for it."
Interestingly, Wiley's Little Book Big Profits Series, while generally solid, has some troubling inconsistencies. Another title in the series, John Bogle's The Little Book of Common Sense Investing (which I've read with profit, if you'll excuse the pun), is rightly described in a blurb as explaining why "outperforming the market is an investor illusion," an truism that Jonathan Clements heartily endorses. Yet the blurb for Joel Greenblatt's The Little Book That Beats the Market claims to reveal a "magic formula" that will "[enable] you to successfully beat the market and professional managers by a wide margin." Think about it: spend a few hours reading and you can outperform people who have spent their lives analyzing the market. Such an absurd statement casts serious doubts on the integrity of Wiley.
Interestingly, Wiley's Little Book Big Profits Series, while generally solid, has some troubling inconsistencies. Another title in the series, John Bogle's The Little Book of Common Sense Investing (which I've read with profit, if you'll excuse the pun), is rightly described in a blurb as explaining why "outperforming the market is an investor illusion," an truism that Jonathan Clements heartily endorses. Yet the blurb for Joel Greenblatt's The Little Book That Beats the Market claims to reveal a "magic formula" that will "[enable] you to successfully beat the market and professional managers by a wide margin." Think about it: spend a few hours reading and you can outperform people who have spent their lives analyzing the market. Such an absurd statement casts serious doubts on the integrity of Wiley.
December 17, 2013
This was a practical book on investing and life goals. It had no insights on how to beat the market. Rather it treated the market as a beast of its own and how best to maneuver in it. Being in the middle of my work career, reading this book was quite timely as this is a period when you have more than a little but not enough. So, this has some practical insights to ensure you are headed in the right direction. It comes at a time when it makes sense to start planning rather than just dumping money into accounts. I highly recommend it to anyone who has an interest in gaining a bit of control in one's financial life.
April 18, 2010
This book helped us thinking about money and investing, giving a broader view than just the stock market. While it is a US book, most of the advice is applicable to anyone, and with a little knowledge of our own tax code much of the rest is easily translated into the local situation. Highly recommended for those who do not have time to spend hours each week (or day!) to follow the economic news and the stock markets, but still want to know what to do with their money
July 12, 2016
A lot of good advice and out of the box thinking about money. It is essentially a book about looking at money holistically.
Don't just think of price appreciation as being the only benefit of home ownership, look at the imputed rent as being a dividend. Etc.
Don't just think of price appreciation as being the only benefit of home ownership, look at the imputed rent as being a dividend. Etc.
November 26, 2009
Nice little reminder of how to be successful
June 28, 2010
Very good book which urges you to focus on bigger picture of investing.
Want to read
August 13, 2011Tom Rinderle Recommendation.
January 23, 2012
I like the "Street Smarts" portion at the end of every chapter. It gives the key points of each chapter.
January 20, 2013
Some good tips and not overwhelming to read.
March 28, 2015
Thoughtful, but simple (once you've read them) ways of thinking about money and investing. Can be read by a novice, means more to someone with a real financial stake. Worth re-reading periodically.
August 14, 2016
It is really street smart and this smart is really useful
February 7, 2017
Good simple overview. Reiterates a lot of basics of personal finance but in an easily accessible way.
Read
February 8, 2015Great book! One of the best books about personal finance that I have read.
March 28, 2017
I highly recommend this book to anyone who wants a basic primer on money management. I have given it as a gift to others. It's very short. The chapters are very short. It clearly and concisely explains what we all need to know about managing our money. Read it -- really!
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