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Welcome to Your Financial Life: A Guide to Personal Finance in Your 20s and 30s
For young people just beginning to plan for their financial future, this straightforward guide clearly explains the keys to success and how to avoid common pitfalls, like racking up debt, incurring unnecessary fees and penalties, and putting off investing. You will learn about every area of financial planning,
- GenresFinance
160 pages, Paperback
Published November 5, 2004
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April 26, 2013
I read this book because Diana bought some as gifts for some graduating seniors. She bought it because it is the book that a local charity buys for the people that it helps put through college.
Since I have unusually strong opinions about financial writing, I wanted to check it out and try to read it from the point of view of a young person just starting out in a career.
My feelings about this book are mixed. On the one hand there is a lot of information, but on the other hand there is too much information. So while there was clearly a lot of thought put into the content -- such as a two page spread about debit cards -- I can't imagine anyone in their early 20s sitting down to read all of it.
I would also like to see the text be a bit more opinionated. It's a lot to ask someone to absorb all this material and then extrapolate from that the best financial plan for them. This is especially hard in the face of the marketing and poor advice that they are bound to run in to.
For example, credit card companies set up tables on college campuses with the goal of getting incoming freshmen to buy their books on credit. The argument usually given is that it is a great way to build up your credit history so that you can buy a car. It would be nice to have a section on this type of marketing and explaining what everyone's motivation is.
Instead the tone is too neutral. Paying off your credit card is one option, paying the minimum is another option, paying somewhere in between is another option. Obviously #1 is the only good option if you want to survive your 20s without moving back home, so the book should state that flatly.
The part on investing was pretty weak too. Compounding investments is covered well, but there is some really crappy advice something like "set up a pretend portfolio online and see how good your analysis of companies is." That seems dangerous and somewhat conflicting with the advice on the same page to avoid day trading. And why even bring up derivatives? They get more space than index funds, which is a much much better investment option.
Ultimately, people starting out investing need a handful of guidelines and some idea of what to watch out for. And then several examples of typical budgets/plans that are likely to apply in different ways. Then an FAQ section for common questions and a glossary in the back. That would be a much more useful reference for someone in their 20s.
As for what book I would recommend, I don't know. I remember liking Andrew Tobias's Only Investment Guide You Will Ever Need a lot. It was opinionated and filled with a lot of practical tips. It might be too adult in tone though. The Elements Of Investing might be good but there isn't much on budgeting. Maybe Dilbert's guide to personal finance is all they need: https://retirementplans.vanguard.com/...
Since I have unusually strong opinions about financial writing, I wanted to check it out and try to read it from the point of view of a young person just starting out in a career.
My feelings about this book are mixed. On the one hand there is a lot of information, but on the other hand there is too much information. So while there was clearly a lot of thought put into the content -- such as a two page spread about debit cards -- I can't imagine anyone in their early 20s sitting down to read all of it.
I would also like to see the text be a bit more opinionated. It's a lot to ask someone to absorb all this material and then extrapolate from that the best financial plan for them. This is especially hard in the face of the marketing and poor advice that they are bound to run in to.
For example, credit card companies set up tables on college campuses with the goal of getting incoming freshmen to buy their books on credit. The argument usually given is that it is a great way to build up your credit history so that you can buy a car. It would be nice to have a section on this type of marketing and explaining what everyone's motivation is.
Instead the tone is too neutral. Paying off your credit card is one option, paying the minimum is another option, paying somewhere in between is another option. Obviously #1 is the only good option if you want to survive your 20s without moving back home, so the book should state that flatly.
The part on investing was pretty weak too. Compounding investments is covered well, but there is some really crappy advice something like "set up a pretend portfolio online and see how good your analysis of companies is." That seems dangerous and somewhat conflicting with the advice on the same page to avoid day trading. And why even bring up derivatives? They get more space than index funds, which is a much much better investment option.
Ultimately, people starting out investing need a handful of guidelines and some idea of what to watch out for. And then several examples of typical budgets/plans that are likely to apply in different ways. Then an FAQ section for common questions and a glossary in the back. That would be a much more useful reference for someone in their 20s.
As for what book I would recommend, I don't know. I remember liking Andrew Tobias's Only Investment Guide You Will Ever Need a lot. It was opinionated and filled with a lot of practical tips. It might be too adult in tone though. The Elements Of Investing might be good but there isn't much on budgeting. Maybe Dilbert's guide to personal finance is all they need: https://retirementplans.vanguard.com/...
Displaying 1 of 1 review