Personal Finance Favorites

A friend recently loaned me the book Financial Peace Revisited by Dave Ramsey. It has a lot of good advice, though I find the writing to be somewhat wordy, and there’s a contradictory part about Roth IRAs versus regular IRAs that I think must have happened in the revision to the original book. However, my friend had loaned me the book to advocate responsible saving, investing and avoiding debt. She wanted to help make sure I don’t make the financial mistakes that can be easily avoided. I felt inspired by her desire to help me. Therefore, I want to help others also know how to avoid financial mistakes.

It is my belief that everyone should:

  • Spend less money than they earn.
  • Have absolutely no consumer debt. This means not going into debt for anything except school or a house.
  • Have an emergency fund in a savings account to cover 3-6 months of income.
  • Save as much money as possible every month in a high-interest savings account and in a retirement account.
  • Everyone should START NOW!

First, there are a lot of great resources on the internet, but it’s sometimes hard to know if a website has good information. So, here are some of my favorite sites:

  • Bankrate.com: This site has great calculators for renting vs. buying a home, saving money, paying off your debt, etc. Here’s a fun one to motivate you to save money NOW . Just type in your age, some amount that you would like to save monthly, and an interest rate. Use a rate around 10%, which is a good estimate of the interest rate you could get in an investment. I used a lower interest rate as a sign of mourning that the economy has slowed down recently.
  • FreeMoneyFinance.com: This blog has a ton of information. Start with the “Best of FMF” links in the leftmost column. I read a post on this blog about how to make an extra $10,000 per year by selling your used items, starting a business based on a hobby, or talking your way into a raise. Looking at all the textbooks and other items we’ve sold and the income from my tutoring business, we won’t quite make an extra $10,000, but we’ve made more than you’d expect.
  • IWillTeachYouToBeRich.com: This blog has bit more on being an entrepreneur than Free Money Finance, and the author is not much older than I am, so it’s motivating to see how we can manage money while we’re young.

Some of my favorite books (and a pamphlet) on personal finance I’ve read are:

So anyway friends… I just felt like trying to motivate you to save money now, or get out of debt, or stop spending more than you earn.

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1 Response so far

  1. FMF said,

    July 7, 2008 @ 6:45 am

    Sounds like you’re on the right track! Good luck!

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