Sunday, July 24, 2011

Book of the Month Contest: Smart Women Finish Rich

Every month PF4TP is going to being holding a contest for the "Book of the Month". The winner will be the personal with the best answer to the month's contest question and will be choosen on the 15th of each month. To enter, Like our Facebook page and leave your entry on our wall.

This Month's Book:

Smart Women Finish Rich by David Bach


For me, this is the book that started this whole movement I am starting towards financial independence for the underserved. A good friend of mine suggested I read this book when I told her I was having financial trouble while I was in Grad School. After reading this book I started really getting into personal finance and reading as many blogs as I could. And the rest is history….lol…..

Things I learned from the book:

1. Spending a little bit on coffee or a bag of chips adds up. Bach calls this the “Latte Factor”. Cutting back on how much is spent on waste full things, which could be brought from home for much cheaper, can save a lot of money. You would be surprised. Think about it….if you spend $3.50 a day on coffee, in a week you have spent $17.50, in a month $70, in a year $840 on coffee that you could make at home. Now think about all those little things you buy daily and how much money you waste. The biggest waste of money, to me, is buying lunch instead of bringing it from home. I bring my lunch almost every day and notice a big difference in how much more money I spend on days I bring my lunch.

2. In the beginning of the book Bach told of his grandmother and how she taught him about investing. She told him to invest in things he liked, so his first stock purchases were McDonalds as a young boy. When I start investing, I know my strategy…

3. Taking the time to find out where your money is going will change how you spend your money. At the time I first read this book I was spending about $150 a week eating out in the campus fast food places. After noticing this is started cooking (I learned I love to cook also) and now have signature dishes that people request.

4. Trying to keep up with the “Jones’” is the best way to end up in a bad financial position.

5. You have to start somewhere in your journey towards financial independence, why not here? Now? Bach focused this book on women because women so often play no part in the financial aspect of their relationships, but the lessons can be for anyone.

The Contest Question for this month is:

What is the best advice (or example was set for you) you received as a child about money?

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