Author Topic: YMOYL-like beginner book?  (Read 7392 times)

Kira

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YMOYL-like beginner book?
« on: August 15, 2013, 12:24:00 PM »
I have a coworker that I think would really benefit from a book like "Your Money or Your Life" - she complains a lot about being 'poor' but spent her tax refund on a TV you could use as a rowboat. I think she just truly does not believe that saving money means you'll have more of it later. I want to give her something that will get her thinking, but I think YMOYL is way too detailed and technical for her (not particularly academically-oriented in the first place) - any recommendations for a book on a similar topic that is easy to read?

Kriegsspiel

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Re: YMOYL-like beginner book?
« Reply #1 on: August 15, 2013, 04:14:27 PM »
The Ultimate Cheapskate by Yeager.

pachnik

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Re: YMOYL-like beginner book?
« Reply #2 on: August 16, 2013, 09:04:40 PM »
Maybe Smart Women Finish Rich by David Bach. 

It is very readable and good basic information.  There is a chapter about goal setting in it as well. 

Zelda01

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Re: YMOYL-like beginner book?
« Reply #3 on: August 16, 2013, 09:24:13 PM »
Probably a Dave Ramsey book (Total Money Makeover) or Automatic Millionaire (David Bach) would be best for a newbie but even those they have to want it to help and a lot of people don't really want it
Seconded.

When I was reading the Automatic Millionaire 10 years ago, I told my sister about it, and she started saving 10% for retirement after reading it.  I didn't really tell her to read it, or expect her to read it.  I was actually kind of surprised she did.  But I think it helped that I was reading it and applying it to my own finances at the time, and she didn't want to be left out.

The point is, and I may be rambling, .... it helps to actually have read, or skimmed, the book you are recommending. 

Also, anything by David Bach is really reader friendly.

Zaga

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Re: YMOYL-like beginner book?
« Reply #4 on: August 17, 2013, 06:48:40 AM »
Be cautious about David Bach, he's ALL about buying real estate, living in it, and selling for a profit.  Reading those sorts of things in 2007-2009 really turned me off of him.  I figure, if the advice isn't good for hard times, it's not actually good advice.

I second The Total Money Makeover.  Ramsey isn't perfect, but his getting out of debt advice has stood through boom times and recessions as good advice.  And, for most people, being encouraged to have an emergency fund is truly a financial lifesaver.

avonlea

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Re: YMOYL-like beginner book?
« Reply #5 on: August 19, 2013, 06:41:31 AM »
Michelle Singletary's 7 Money Mantras for a Richer Life. 

I read this when it first came out ten years ago and it helped me start down the path of frugality and building up savings.  The author is a mother and her writing style is easy to follow as well as humorous at times.  I think your friend might like it. 

My favorite of her mantras:
If it's on your a**, it's not an asset.

OOBER

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Re: YMOYL-like beginner book?
« Reply #6 on: September 15, 2013, 10:04:32 PM »
I absolutely recommend The Automatic Millionaire. One of my top 5 favorite stories and the one that really started me into FIRE was chapter 1 of this book.

I actually just pulled it off the shelf next to my desk and read through chapter 1 again which is a story about a couple that is ready to retire at 51 and the advice that they have. I hope to be like them but much earlier (like 15 years or so).

Be cautious about David Bach, he's ALL about buying real estate, living in it, and selling for a profit.  Reading those sorts of things in 2007-2009 really turned me off of him.  I figure, if the advice isn't good for hard times, it's not actually good advice.

I second The Total Money Makeover.  Ramsey isn't perfect, but his getting out of debt advice has stood through boom times and recessions as good advice.  And, for most people, being encouraged to have an emergency fund is truly a financial lifesaver.

In my opinion, the key here is that if you wouldn't have read through the Bach's and the Ramsey's to begin with, you don't have perspectives to base your position on. The way I have done it is to read everything that I can get my hands on and cherry pick parts of the plans that make the most sense to ME and set my financial ship in that direction. Everybody has to start somewhere.

So, in response to the OP. I would suggest Automatic Millionaire as a starter book. I have personal experience in giving my copy away to a co-worker then buying a new one for myself. Before I left my position at that company the co-worker had read it, downsized vehicles, started automatic savings plans, started making monster payments on school loans, and almost eliminated their CC debt within a year. It even became a challenge where they would update me on their CC debt status and I would talk about extra payments on the mortgage, etc. I believe they also started listening to Dave Ramsey on the radio daily.


Mr.Macinstache

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Re: YMOYL-like beginner book?
« Reply #7 on: September 23, 2013, 12:32:21 PM »
So is there any other pertinent info from Ramsey outside of paying of smallest debts first and building an EF?

Mr.Macinstache

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Re: YMOYL-like beginner book?
« Reply #8 on: September 23, 2013, 02:47:07 PM »
So is there any other pertinent info from Ramsey outside of paying of smallest debts first and building an EF?
*Disclaimer* - I have yet to read his Total Money Makeover and Complete Guide to Money books which are his basic personal finance ones. I have read Financial Peace Revisited which is more the *why* instead of the *how* and Entreleadership which is for running a business as well as followed his site

Dave Ramsey is great for people who have no idea how to manage money. He goes over how to budget, points out stupid shit people waste their money on, and a his method of paying off the smallest debt first (which for people who need his advice, this is the way to do it despite hate on here). While I have disagreements with some of his advice (tithing while you're in hair-on-fire-get-out-of-debt mode, stopping all retirement plan contributions even if it means giving up a match until your debt is paid off and you have 3-6 months in savings)
Overall though I think it's a very good plan for people who don't know how to manage their finances at all and I'm actually trying to host a Financial Peace University course for some of my friends who I think would benefit from it

From the info I had, that is what I gathered from him too. Thanks for the feedback.

Cinder

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Re: YMOYL-like beginner book?
« Reply #9 on: September 23, 2013, 03:03:29 PM »
So is there any other pertinent info from Ramsey outside of paying of smallest debts first and building an EF?
*Disclaimer* - I have yet to read his Total Money Makeover and Complete Guide to Money books which are his basic personal finance ones. I have read Financial Peace Revisited which is more the *why* instead of the *how* and Entreleadership which is for running a business as well as followed his site

Dave Ramsey is great for people who have no idea how to manage money. He goes over how to budget, points out stupid shit people waste their money on, and a his method of paying off the smallest debt first (which for people who need his advice, this is the way to do it despite hate on here). While I have disagreements with some of his advice (tithing while you're in hair-on-fire-get-out-of-debt mode, stopping all retirement plan contributions even if it means giving up a match until your debt is paid off and you have 3-6 months in savings)
Overall though I think it's a very good plan for people who don't know how to manage their finances at all and I'm actually trying to host a Financial Peace University course for some of my friends who I think would benefit from it

From the info I had, that is what I gathered from him too. Thanks for the feedback.

Some good things that helps people follow his principals:

He teaches you to be frugal now so you can spend later.
- This helps people get into frugal practices now.  He presents a good perspective on what you can afford relative to how much or what income you have.  Hopefully, during the course of going without and living on Rice and Beans, you will realize that you don't miss most of your spendthrift ways and be a little smarter and wiser on the tail end.

He has become a millionaire, gone broke, and built himself up again...
- People may see this as 'walking the walk' and to them it shows that he has some street cred ;)

Strong focus on entrepreneurship
- If you can't find a job, make a job, don't settle for making less. 

Related to the snowball.. He says that for most people, being in debt/bad with money isn't a math problem, it's a behavior problem.  This is why he advocates for the snowball, people getting the 'little wins' of paying off the smaller debts first are more likely to see it as 'working' and keep on working at the program.

Other points:
- Focuses on having a mixed investment strategy with heavy emphasis on 'Good growth stock mutual funds'.
- Big on tithing (as mentioned above), though he doesn't tell anyone that they SHOULD tithe, that's just what he does and usually picks apart people who get to technical on it. (Should I tithe on gross or net? Before or after 401k?  On Gifts?)
- Act like what you want to be.  If you want to be broke, act like broke people, if you want to be a millionaire, do things millionaires do.

Jwilliamson22

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Re: YMOYL-like beginner book?
« Reply #10 on: September 23, 2013, 05:11:03 PM »
I think "I will Teach You To Be Rich" By Ramit Sethi is great starter book. It isn't necessarily mustachian, but it is a good first timer finance book that hits the basics. It focuses on automation, Starting investing in indexed funds, paying off debt etc.

NinetyFour

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Re: YMOYL-like beginner book?
« Reply #11 on: September 23, 2013, 06:49:08 PM »
I have not read YMOYL, so I don't know if this book is like it, but--I got this recommendation from another thread (or was it this one?)--sorry, it has been a long day.  I am enjoying The Elements of Investing, by Burton Malkiel.  The beginning of it actually isn't about investing, but about how to have money to invest--spend less than your income.  In that way, it might be good read for beginners.  It's also a quick read and mostly in plain language.

RetiredAt63

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Re: YMOYL-like beginner book?
« Reply #12 on: March 13, 2014, 07:22:26 AM »
Anything by Gail Vaz-Oxlade, but especially It's Your Money: Becoming a Woman of Independent Means and Money Rules.

Anyone who has seen her shows knows she  is pretty blunt and sensible

Metta

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Re: YMOYL-like beginner book?
« Reply #13 on: March 14, 2014, 08:28:34 PM »
In all honesty, I think of YMOYL as a beginner's book (an excellent beginners book). A much friendlier format (and it can be gotten for free) is "The Richest Man in Babylon". http://www.ccsales.com/the_richest_man_in_babylon.pdf