I listened to the book because it is part of Sheila’s college course. I would like to thank my parents and my church for helping me live this in another form. This is what I got out of it.
The 6 steps:
1. Save $1,000 for an emergency (which does not include a killer sale).
2. Pay off your lowest monthly payment debts first and roll the payment to the next highest monthly payment when it is paid off.
3. Save 6 month’s of expenses in case you lose your job or have a true emergency (keep health insurance but don’t buy whole life insurance as an investment)
4. Save 15% of your income for retirement (I could do better at this)
5. Save for college, he was unclear as to how much. He said it is better to teach your children what is a need. He suggested a mutual fund. He said college is not a necessity.
6. Pay your house off (return on invested equity is not worth the risk)
7. When you have money, you can:
• Invest the money
• Enjoy the money
• Get fulfillment from donating (I liked this sentiment) or leave it for your children.
Don’t buy or lease a new car.
Never do payday or title loans.
Don’t use rent-to-own.
He had a lot of other cute sayings and advice but this is what it boiled down to for me.
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