June Book Review: The Money Book for the Young, Fabulous & Broke

Under the Oaks blog : June Book Review

Inspired to have a profitable week, I found myself at the library seeking out a means by which I could channel my inner Suze Orman. What I left with was a valuable read that I wish I’d read when I graduated college years ago, but feel just as smart having had a chance to finally read it. I picked up finance guru, Suze Orman’s, The Money Book for the Young, Fabulous & Broke.

Goodness, when did I turn into such an adult?

By no means am I broke. However, I spent a long time being a broke college student, which turned into a broke graduate. So, I understood the first portion of the book in which Orman reviews how to live as a broke young adult. Orman covers 10 broad topics regarding the basics of personal finance that all young people should be aware of. Although I am 1 year shy of 30, I can honestly say most of the topics Orman reviews were enlightening for me.

Orman reviews FICO scores, making smart career moves, managing your credit and student debt, saving for the now and retirement, smart investing, buying a car and home, and handling finances as a young couple.

I personally made quite a few notes which at first made me feel like an idiot, but then empowered me. I have a strong desire to be good with money and as Orman boldly points out, anyone that is considered a Millennial or younger, is on their own for retirement. Ever hear about Social Security from your grandparents, or see the deduction from your paycheck? Yeah, go ahead and forget about that, because it will mean nothing to us when we retire.

A couple of my top notes:

On FICO scores …

“Your genes and sparkling personality aren’t all that you can pass along to your kids. You can also give your kids your FICO score simply by adding them to your credit card account as authorized users.”

Who knew?

On career moves (loved this chapter, lots of great advice for the youngins’) …

“Your goal [early in your career] is to work so hard and be so productive that your boss and your colleagues become totally dependent on you. Don’t just do what is expected of you. Anticipate what needs to be done and just go for it.”

Suze spoke of being a waitress until she was 29, before she got her first adult job. I was inspired by this because it reiterates working hard and not settling for just anything.

On purchasing a home …

“I think that after you’ve maxed out on the company match in your 401(k), and after you have your credit card debt either paid off or declining, it’s smart to focus on buying a home. As lousy an investment as your car is, a home is flat-out the best big-ticket purchase you will ever make. Just like your student loans, mortgage debt is truly good debt.”

On love & money …

“Before you agree to loan money to a family member or friend, make sure you understand the emotional and financial risk you are taking. If you can’t afford (emotionally or financially) for the loan not to be repaid, just say no.”

Overall I give Orman 3-and-a-half “Grace Faces” (if you understand this you and I would probably be best friends) on her tips for the young & broke. This probably would have been a better read for me in my early 20’s, but overall I learned some other simple lessons about being smart with money and already have a laundry list of items to look into.

Any financial lessons you would love to go back and share with your 20-year-old self? xoxo ‘n lols, crystal

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