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Saturday, 02.04.2012 |
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| I Will Teach You to be Rich |
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Product Details
Notes
written for people in their twenties
he writes in a very specific style, using curse words and jokes
but the general idea is similar to the Automatic Millionaire, by David Bach
Ramit doesn't like the idea of skipping a latte
but he essentially says the same thing, automate your finances
one of his main things is the 85 Percent Solution
focus on the big wins, don't try to get every detail right
use a lifecycle or target retirement fund as a simple solution
go ahead and spend money on things you like
as long as you've setup a good financial plan
then you can afford to buy things
you can focus on fun stuff instead of a detailed budget
this is what he calls a Conscious Spending Plan
the first part is to optimize credit cards
he has a lot of tips on negotiating like an Indian
basically ask them how you can work together
rather than trying to make it a yes/no situation
he hates the big banks, he likes online banks like ING
he believes in buy and hold, 401(k) and Roth IRA
get all accounts linked and automate bill payments and investments
don't pick stocks, focus on asset allocation
the professional investors can't beat the market
use a lifecycle fund, otherwise maintain your asset allocation
every year you may need to shift contributions to keep the right mix
don't do anything for tax reasons
a house is a not an investment, it's a place to live
renting is cheaper for most people
because of property tax, closing costs, insurance, maintenance
plus even though you write off interest, you still pay a lot of interest
once you do get a house, don't prepay mortgage, invest the money
you can earn more in the stock market than from a house appreciating
longer term, create an emergency fund, look into insurance
and invest into a 529 for children's education
learn how to negotiate salary when starting a new job
cut the biggest items to budget for a wedding
get bids from multiple car dealers by fax
then tell them all the lowest bid and get them to rebid
walk into the best priced dealer and buy the car
drive it for at least 10 years to maximize the total value
a few useful sites from the book:
catalogchoice.org to reduce catalogs in the postal mail
optoutprescreen.com to opt out of prescreened credit card offers |
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