Fabulous Financials

I’ve just finished reading the book So Many Shoes, So Little Money: A Girl’s Guide to Finance, written by Lisa Serwin.  It has 16 chapters that address the basics tenets of personal finance while associating each topic with something fashion-related. Check out the titles:

1. Budget Basics: What’s in Your Closet?
2. Advanced Budget: Tailor Made
3. How To Spend: Avoid Visible Panty Lines
4. How To Save: If The Bra Fits
5. Bank Accounts: It’s In The Bag
6. Debit Cards: Jeans & Tees
7. Credit Cards: Little Black Dress
8. Interest: Shoes
9. Time Value of Money: It’s In Style Today
10. Debt: Trendy Splurges
11. Investments: What’s The Event?
12. Net Worth: You Are Priceless
13. Big-Ticket Items: Marc Jacobs, Prada…
14. Insurance: Avoid A Bad Hair Day
15. Taxes: Face The Facts
16. Professional Help: Personal Stylists

Conclusion: Walk The Red Carpet
Glossary (defines basic personal finance terms)

Written for the shopaholic who needs divine financial intervention, each chapter includes a “Fashionista Fact” and ends with a summary recap that reminds the reader to “Organize Your Financial Closet.”  I commend the author for taking a boring topic, like personal finance, and writing a book that appeals to women who would rather be shopping at Nordstrom.

I have to be honest though.  This is a beginner’s book, so if you already have a basic understanding of budgeting, saving money for a rainy day and retirement, the perils of irresponsible credit card use, employment taxes, and car/health/renter’s  insurance, you may not find anything of substance.  But if you’re a reformed shopaholic who wants to learn the basics of personal finance and don’t know where to begin, this book may give you a few pointers to overcome the self-sabotaging behavior and finally take control of your finances.

And guess what?  I have two copies to give away for my fabulous readers!

If you want a copy, the only thing you have to do is leave a comment in this post anytime through Sunday.  Tell us where you are in your financial journey and what you’ve done so far to overcome the financial mistakes of your past.  Only 1 comment per person.  On Monday, I will choose two winners using a random number generator.

Good Luck!

ABC is airing a one hour special, titled UN-BROKE, on FRIDAY, MAY 29 at 9:00p.m. Eastern Time.  Combining humor and information, it will address everyday finances (i.e. credit cards, mortgages, stocks and bonds, investing, 401k) and feature Will Smith, Samuel L. Jackson, the Jonas Brothers, Christian Slater, Cedric the Entertainer, Seth Green, Sesame Street’s Oscar the Grouch, Rosario Dawson and the E*Trade Babies.  The topics will include:

• ” Will Smith, who gets down to basics with a boardroom full of corporate finance executives.
• ” Samuel L. Jackson, who appears as a bestselling author of self-help books and who is “Broke as Hell and Not Going to Take it Anymore!”
• ” The Jonas Brothers, who teach screaming teenage girls the mysteries of the stock market. ” Seth Green, who explains the fundamentals of a smart mortgage from his “crib.”
• ” Cedric the Entertainer, who talks back to credit cards.
• ” Christian Slater and Rosario Dawson, who visit an office workplace to explain the importance of investing in a 401(k) retirement plan.
• ” The E*Trade Babies, who meet Mellody for an online chat from their high chairs.

To advertise for the special, here’s a more responsible version of “Cribs” with Seth Green:

He’s a nut!  You know ‘genuine velour’ is what’s hot in the streets home decor! LOL!  This ABC special is expected to make people laugh while they learn about basic personal finance.  I bet Will and Ceddie are gonna cut the fool with a little 411, so I definitely plan watch.

Don’t forget, this FRIDAY, MAY 29 at 9:00p.m. ET.

Sorry I’m late posting this but there’s still time left.  Download Suze’s new book for free.  You have until 11:59pm CT next Thursday, Jan 15.  [h/t DAMF]

In this week’s Money 101 post, the Nuru Personal Finance deck brings us the Rule of 72:

Definition

The Rule of 72 is a quick way to determine how long it will take you to double your money at a given interest rate.

To Calculate

Divide the number 72 by the annual interest rate you expect to get on an investment.  The answer represents how many years it will take to double your money at that interest rate.

72 / interest rate = years to double

Application

Suppose you invest in an account that promises an interest rate of 6% compound annually.

72 / 6% (interest rate) = 12 (years)

It will take about 12 years for you to double your money at 6% interest.

Application – Part II

Now let’s alter the situation a bit.  Say you want to double your money in 3 years, but you don’t know what interest rate you need in order to do so.  You can use the same equation, this time dividing 72 by the number of years you’re willing to invest.

72 / 3 (years) = 24 (interest rate)

In this case, you will need to earn an interest rate of 24% to double your money in 3 years.

Double Your Money

Remember, if you want to achieve financial freedom, you need to be consistently doubling the money you’ve earned.  The Rule of 72 shows you what it will take to get there.

I think it goes without saying, but this concept assumes all things remain constant – consistent growth and no additional contributions.  Given our current economy, it’s probably easier to estimate how quickly you can lose half of your money. :-(

Here’s another personal finance sound bite, courtesy of the Nuru personal finance deck.

Questions to Ask Before Investing [in a mutual fund]

How long has the fund been around?

How has the fund performed historically?

Is it a load or no-load fund?

Is the expense ratio high or low?

How long has the fund’s management team been around?

Are there 12b-1 fees?  These are fees that funds tack on to cover some of their sales and marketing costs.

Man, I love these little cards.  Between these, the stack of investment books on my nightstand, my personal finance blog list, and current news articles, I’m going to be a lean, mean, investing machine. LOL  I’m just kidding.  Seriously though, what do you think of these Money 101 posts?

There’s a poll embedded so if you’re reading from RSS, you will have to click through.