Getting Started: The Financial Guide for a Younger Generation
Getting Started: The Financial Guide for a Younger Generation
– by Brian T. JonesThis book is 10 chapters of standard financial guidance written specifically for the 20-something crowd. In less than 200 pages, it covers cash flow and debt management, marriage and children, buying a home, insurance coverage, retirement and estate planning, and wrap up with divorce and inheritance.
Like most personal finance books, it includes worksheets to use for your personal situation. But unlike most personal finance books, it also provides case studies of real life people who have made decisions (good or bad) that you can learn from.
What Did I Like?
I get a kick out of peeking into other people’s finances, so I really enjoyed the case studies. Assuming the case studies were true stories, they reinforced the intended message in each chapter. Even though the families weren’t perfect, their decisions often showed you what NOT to do.
I also enjoyed the author’s tone and his attempt to connect with his readers. For example, he wants the younger generation to think of retirement as two 6-month vacations. Jones states, “Imagine sleeping until 10am, then eating a big bowl of Lucky Charms before heading to the golf course”. For young adults who think retirement planning is for old people, that’s an interesting way to paint a picture. Then Jones provides 4 rules to prepare for retirement that’s 20-30 years away:
Rule #1: Max out contributions
Rule #2: Invest for the long haul
Rule #3: Rollover retirement plans when changing employers
Rule #4: Don’t compare yourself to others
Solid advice. I can dig it.
What Did I NOT Like?
Obviously, I didn’t fit the intended target audience, so I tried to keep that in mind while reading – it didn’t work. I was immediately turned off. The very first chapter feeds into the notion that financial responsibility means depriving yourself of things you want. You’re given “Six Keys to Positive Cash Flow”such as: control your lifestyle, clip coupons, don’t buy xyz, don’t eat out, set limits on your vacations, etc, etc. I was thinking to myself “well dang, if that’s the FIRST thing you’re going to hit me with, then what CAN I do!?”
I think the “deprivation” mentality is what drives a person to incur debt. If you’re forced to live a life pinching pennies and clipping coupons, eventually you will reach a threshold and feel compelled to spend – A LOT. In my opinion, the FIRST key to positive cash flow is MAXIMIZING INCOME. I mean, isn’t that why young adults compete for entrance into those hifalutin schools and graduate with tens of thousands in student loan debt? If you’re going to get what is presumed to be a top notch education, then use it to earn a top notch salary and create multiple streams of income. Hmm…what a novel idea!
But who am I to say? I’m no financial expert. I don’t even work in the financial industry. I’m only an early 30s single mom with an MBA from an average school, debt free with a six figure salary and a six figure net worth, a home owner who contributes the max to her retirement accounts, shops too much, hates clipping coupons, dine out often, and planning a trip to Paris this summer. *shrug*
The following chapters came across as more of the same old run of the mill advice, so I put the book down and forgot all about it. That is, until I received a gentle email reminder that I promised to write a book review. Oops! So I forced myself to read the remainder of the book. Unfortunately, my opinion didn’t change.
Also, maybe it’s just me, but the book doesn’t “look” very appealing either. I found it odd that the target audience is Gen X and Y because it doesn’t ring “young” in my opinion. As I read each chapter, it made me think of an old, worn out copy of the Wall Street Journal. I know, I know…you’re not supposed to judge a book by its cover, but all writers know this a risk. Whoever designed the illustrations dropped the ball. Even a book should make a first impression.
Fabulous Financial Rating
2 out of 5, not quite fab. Standard financial information, interesting delivery, but lacks substance. Like a jack of all trades but master of none, “Getting Started” tried to pack in too many topics but failed to hit the mark on any of them.
Would I recommend it? No. If you’re still interested, read about the author or purchase the book. Better yet, check it out from the library.
Next Sunday, I’ll discuss Body Drama – book review written by BabyGirl.
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Maybe you should add that of your THINGS TO DO LIST You should write a book. You have a grasp on what is important. Anyone reading the first chapter of that book is going to throw up their hands in defeat soon enough. You need to reward yourself sometimes.
I agree with you that deprivation isn’t the key and it does drive you to spend more. Like saying no meat or carbs for x amount of days and AS SOON as you smell a burger and fries you are all over it…LOL. I’m glad I read this review because I actually have this book on hold at Borders. I guess it will stay there.
SM,
Thanks for the book review. I have read a lot of these types of book starting in my late teens, early 20s.
It was very few that get it right by stressing what I think it really the issue with “deprivation”: spending money on things that are not really important to you so that in the end, you don’t have the money for the things that do matter to you.
Because you don’t have the money for what is important to you, (or you go into debt to get it) you feel deprived. I almost never feel deprived because I spend my money on what is important to me. Not spending money on something that is not important to me is not deprivation.
Maximizing imcome is as important as getting value for every dollar spent, but I think ultimately people need to decide what matters to them and then spend and earn accordingly.
I really enjoy reading your blog and find it full of astute information. I think the reasons you listed for you not being a financial expert are just as accurate for reasons you ARE an expert. There is a big difference between being a “Real life” expert and someone with “Book learning”. I would much rather get support and ideas from someone who has the “real life” perspective!
I have a 21 Yo daughter whop is just starting to travel this tangled maze to good finances and adult living. She is trying to read more books on the subject, so this won’t be one we seek out! But I did send her a link to your web page.
…sigh…oh well…
…guess I’ll keep looking for a book for me and my fellow Generation X’ers… :(
Rule #1: Max out contributions.
Rule #2: Invest for the long haul.
Rule #3: Rollover retirement plans when changing employers.
Rule #4: Don’t compare yourself to others.
I take it the author is not familiar with the lifestyle of a ramen-eating minimum-wage worker with student loan debt.
And why shouldn’t you compare yourself to others? Potential dating partners and mates compare you to others.
This book sounds SO middle class.
Hmmm… Minimum wage worker with student loan…I don’t think MANY people fall in that category. And if they do…they aren’t making very wise choices/decisions.
@ anon 3:43 – If I added everything people recommended to my “to do” list, I wouldn’t have time to sleep. LOL Thanks for the vote of confidence though.
@ MDgyrl – If you really want to read the book, check it out at the library.
@ nofear – Deprived is defined as “to keep from enjoying…” Therefore, I think most people would argue that everything they want/buy is important to THEM and doing without would make THEM feel deprived. So I’m not sure if your message would make it any different.
@ on my way – I’m far from an “expert” but I really appreciate your kind words. Thanks for sending your daughter a link to my site.
@ shan – When you’re just starting out, you want to read read read anything you can get your hands on. Whatever book(s) you choose, check ‘em out from the library and you’ll have nothing to lose.
@ minimum wage – Thanks for the comic relief. I’m beginning to like having you around. :-)
@ MD again – pay him/her no mind. LOL
Hmmm…minimum wage worker with student loan…I don’t think MANY people fall in that category. And if they do…they aren’t making very wiose choices/decisions.
Please explain. I don’t know what bad choices/decisions I am making, can you elaborate?