This is my biggest challenge folks…and I’m sure I’m not alone. The title of this book really jumped out at me “Stop Over-Thinking Your Money” by Preet Banerjee. It can feel overwhelming and intimidating to think about managing money and many people just tune out when someone starts talking about budgets and mutual funds. I love how simple and accessible this book is in its language and approach.
To me, the ultimate goal is to have freedom and options and I know the only way to achieve that is to start developing better habits! (it’s never too late)
- Disaster-proof your life – look at disability insurance (injury or health) , life insurance (protects your family), emergency fund (loss of employment or unexpected emergencies)
- Spend less then you earn – figure out a new budget, track your spending, save the savings (don’t spend it on something else), plan for non-monthly expenses (birthday, holidays etc…)
- Aggressively pay down high-interest debt – transfer high-interest balances to low-interest balances, develop a plan to pay down debt
- Read the fine print – don’t sign contracts at the door, read all contracts carefully (gym memberships, cell phone contracts, loan documents)
- Delay Consumption – you don’t have to keep up with the Joneses, avoid the monthly payment trap, don’t borrow money for things like vacations, limit yourself to one hobby, stick to your budget in home buying, decide if home renovations are really necessary if you have to borrow money to do them
Check out his website for more great information about investing: http://www.preetbanerjee.com/