personal finance Archives - The Frugal Prof

The Best Personal Finance Books of All Time

March 5, 2018 by Frugal Prof

Best Personal Finance Books of All Time:

I believe that each one of these books has the potential to change your financial life.

Many people want to achieve financial independence

for their families,
to leave a job they hate,
or just to live a better life.

Whatever your motivation, these books can help you get there.

*Affiliate Disclosure: This page contains links to products and companies that I endorse. I may receive a fee, but the reader is never charged anything.

The Total Money Makeover by Dave Ramsey

The book has sold over 5 Million Copies.

This is the book to read when you get serious about getting out of debt.

Read How I paid off $17K in Debt last year here.

It provides a simple and straightforward game plan for completely making over your money habits. And it’s based on results.

With The Total Money Makeover: you’ll be able to:

Design a plan for paying off all debt—meaning cars, houses, everything
Recognize the 10 most dangerous money myths
Secure a big, fat nest egg for emergencies and retirement

Why it’s a great personal finance book: The book provides a game plan that’s worked for Millions of people to become financially free. Also, it’s really inspiring and motivational.

I recommend it all the time.

Rich Dad, Poor Dad by Robert Kiyosaki

In Rich Dad Poor Dad, the #1 Personal Finance book of all time, Robert Kiyosaki shares the story of his two dads:

Poor Dad: His real father, whom he calls his ‘poor dad,’
Rich Dad: The father of his best friend, the man who became his mentor and his ‘rich dad.’
Rich Dad’s education was “street smarts” over traditional classroom education and he took the path of entrepreneurship… a road that led him to become one of the wealthiest men in Hawaii.
Robert’s poor dad struggled financially all his life, and these two dads—these very different points of view of money, investing, and employment—shaped Robert’s thinking about money.”

Published in 1997, Robert Kiyosaki reflects on a mindset that many wealthy people adopt:

Financial success isn’t just about saving money, it is about putting money to work to actively grow.

He compares the approaches his two father figures took toward earning and saving money. While both had successful careers, his poor dad “left bills to be paid,” while the rich dad “died with tens of millions of dollars for his family, charities and his church,” Kiyosaki writes.

Ryan Broyles, formerly a wide receiver for the NFL Detroit Lions, wrote that the book changed his outlook as well.

The Poor Dad’s philosophy basically reinforced the way I already thought about money: Make money to live, and save some along the way,” Broyles writes.

“But the Rich Dad’s lessons — making your money work for you by investing it and acquiring income-generating assets — made me realize that I needed to make changes in how I thought about money if I ever wanted to be that Rich Dad and not have to work for somebody else.

The Millionaire Next Door:

The Surprising Secrets of America’s Wealthy by Thomas J. Staley

The investment classic that explores the seven traits necessary to become a Millionaire. This is an in depth exploration of the ordinary people who have achieved an extraordinary level of wealth and how they did it.

Truly inspirational for those on a debt free journey. More about my debt free journey.

Notable Reviews of The Millionaire Next Door:

… nearly anybody with a steady job can amass a tidy fortune. (Forbes)
A primer for amassing wealth through frugality. (The Boston Globe)

Imagine being able to sit down with 50 millionaires who made their wealth from a normal job.

And ask them how they did it.
What were their habits?
What was their mindset?
That’s what this book is.

How did you do it? If you want to be wealthy, this book is the answer to most of your questions. Learn more here

The Intelligent Investor by Benjamin Graham

I include The Intelligent Investor because investing is an important part of personal finance. Even if you intend to focus on passive investing, this investment classic is worth a read. It is the essence of the value philosophy both in business and in life. And if you intend to be an active investor in the stock market, this classic is simply a must read.

Legacy: Ben Graham is an investment legend. His book, The Intelligent Investor and Security Analysis have become a blueprint for investment success for generations of high profile Money Managers including Warren Buffett, Seth Klarman, Mario Gabelli, and Leon Cooperman.

Warren Buffett in 1962 and Benjamin Graham in 1947

“By far the best book on investing ever written.” — Warren E. Buffett

If you want to become an above average investor, this book is a great place to start. It is well worth the time and money. “The Intelligent Investor.

This is the book I re-read during the 2008 Financial Crisis. And it helped me tremendously.

You may want to read my post, Lessons from the 2008 Financial Crisis and How to Profit from the Next Crisis.

“The best known investing book and most likely to make you money is The Intelligent Investor.” — Andrew Tobias

Much More on Benjamin Graham, his books, and legacy.

Warren Buffett and Benjamin Graham:

After reading “The Intelligent Investor” at age 19, Warren Buffett enrolled in Columbia Business School in order to study under Graham, and they subsequently developed a lifelong friendship. Later, he worked for Graham at his company, the Graham-Newman Corporation.

One of the best in-depth profiles of Warren Buffett was done by Roger Lowenstein, a Wall Street Journal reporter. Buffett: Making of an American Capitalist. Here

The Richest Man in Babylon by George Clason

“The most inspiring guide to wealth ever written.”

“Hailed as the greatest of all inspirational works on the subject of debt, financial planning, and personal wealth.

At some point in all of our lives we realize that we’re making money, but our money never lasts. We have no control of our money. This book is about the conversation between fathers and sons (or daughters) about money.

How to succeed financially.

The principles are timeless. Our money problems are the same. The answers are straight forward and timeless. More on The Richest Man in Babylon here.

These are the Best Personal finance books of all time. Each one offers a practical guide to help you take control of your money. The reason they still sell millions of copies each year is because they work.

Hitting the Wall on my Debt Success Journey

May 30, 2017 by Frugal Prof

Did I hit the wall on my debt success Journey?

Nobody said change is easy. Especially when it comes to paying off debt, creating a budget, and cutting back on credit card spending.

When I began this journey, I started making tons of progress.

I got rid of my storage locker,
Reviewed my bad spending habits- see the dumbest stuff I bought last year,
Cut back on wasteful spending like my health club membership, expensive car insurance, XM Satellite service, and so much more.
I went so far that I cut pizza delivery out of my budget.

It was great. And I cut down on my debt substantially. I had tons of momentum.

My debt reduction plan was making progress. I even started this financial blog to keep me motivated. Which was a great decision too. And thank you all for your support! (And If you’re ready to launch a blog, read the 7 Golden Rules to a Profitable Blog here.)

So, what happened?

I hit the wall last week. I’m not sure exactly why. But, when I bought my new glasses (and got ripped off), I lost some serious momentum. Let me explain.

Adulting: noun. The practice of behaving in a way characteristic of a responsible adult, especially the accomplishment of mundane but necessary tasks.

Budgeting: I’m starting to budget and plan ahead, which is great. But, in all honesty, I was in the habit of doing whatever I wanted whenever I wanted with my money. Change is hard.

It requires patience and discipline to become financially free, debt free, and retire early. It’s a process.

7 Helpful Tips to Creating a Budget

9 Best Ways to Save $7K This Year

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Children do what feels good. Adults devise a plan and stick to it.” –Dave Ramsey

And that applied to money as well. So, the same day that I finally decided to get glasses, I realized that U2 was coming to town that same weekend. And I wanted to go.

One problem: the cheapest tickets were $250. The bad seats were $250. Ugh. And I had already spent a lot of money on a great concert earlier this year. However, this seemed like a total ripoff.

When did concerts get SO EXPENSIVE?

When did everything get so expensive?

Why is everything so expensive when I’m trying to cut back, get out of debt, and save money?

A few tips on spending less on Concerts:

Change Venue: Ticket prices can vary depending on the location of the concert — even for the same artist and the same tour. Compare prices at concert venues to find lower prices.
Check out the nearby shows: If you live in New York, you can do a quick weekend trip to Philly or a weekend trip to Boston.”
Sit solo: When searching resale options, you’ll generally see better deals on single tickets, says Jessica Erskine, a spokesperson for StubHub.
Attend shows at the fair: OK, maybe Taylor Swift still isn’t in your budget. If you’re not picky about who you want to see live, check the fair circuit. Some county fairs grant free admission to a concert along with paid entry to the fair, which usually costs less than a concert ticket.
Earn cash back: I use Ebates and they give me cash back for nearly all of my purchases including ticketing websites. Ebates gets a commission from stores you shop at and they share the commission with you. Average cash back is about 7%, which is great. Right now, they are offering a Free $10 Gift Card when you join and spend $25. More about Ebates Here.

Relevant Articles:

44 Ways to Create Extra Income

Getting Results: How I Paid Off $17K

The Best Personal Finance Books

Taxes come first: This year I decided that I was going to pay my quarterly business taxes on time. And not wait until April 15th and get hit with a huge tax bill again.

Well, my next quarterly payment is due soon. It’s on my calendar. Its next month. So, I know that I have to pay for taxes, glasses, my bills, savings, and investments. As well as Double car payments to have my car paid off in the next few months.

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5 Tips to Avoid a Ripoff

May 17, 2017 by Frugal Prof

I think that you’ll agree with me that even financially smart people can make bad financial decisions. What I am about to share is a bit embarrassing, but in this blog post I will give you the 5 signs that you’re about to get ripped off.

Here are the 5 signs of trouble that will prevent you from a ripoff.

rip off

5 Signs You’re about to get ripped off:

1. Procrastinate until something becomes a mini crisis.

I didn’t want to get glasses. Because eyeglasses are for old people and needing glasses would mean I am getting older.

So, I procrastinated doing the sensible thing. I have some inexpensive cheap glasses, but have known for a few months I needed real prescription eyeglasses. I waited until it was a mini crisis.

So, instead of researching glasses online or asking around, I scheduled a last minute appointment with a local optometrist and an eye exam. I wanted to see a reputable doctor to check out my eyes. And I was planning to buy glasses via Costco later on.

Relevant Articles:

44 Ways to Create Extra Income

Getting Results: How I Paid Off $17K

The Best Personal Finance Books

2. Don’t research before you head out. It was a mini crisis, so I made an appointment for the same day. The appointment went well and I wanted to support the Doctor by purchasing glasses from her boutique. I knew nothing about the pricing. I was a sitting duck because I hadn’t researched the online costs.

Value Investing

3. Listen to a sales person. I’ve never worn glasses, so I was astonished at how much they charged for the frames. And I kept asking the guy,

Are eyeglasses really this expensive? Don’t you have anything less expensive?

When you go to the upscale boutique, you’re gonna pay more. I was in a hurry and my goal was to check this off my list. “Got glasses.”

4. Go to an upscale boutique. Disaster. I was lazy and in a hurry. So, I got sold 2 pairs of eyeglasses that could pay a month’s rent in most of the country. They were much more expensive had I bought them online. More stupid tax. And lazy tax.

I always get cash back because I use Ebates and they give me cash back for nearly all of my purchases. Ebates gets a commission from stores you shop at and they share the commission with you. Average cash back is about 7%, which is great. Right now, they are offering a Free $10 Gift Card when you join and spend $25. More about Ebates Here.

Related Posts:

How I paid off $17K in Debt

How to Create Fast Cash with Ebay

Do I Regret the $600 COncert Tickets?

5. Stop thinking. I’m not sure where my brain went during this fiasco. It was at the end of a long day and I really wanted to cross “get glasses” off my list. After heading home and feeling like I had purchased two versions of the Brooklyn Bridge of glasses, I started regretting this disaster Big Time.

Trying to Minimize the damage:

I went online and did some research, which I should have done before making the purchase. I quickly called the boutique and told them I was willing to pay a little more than Costco, but not their ridiculous markup. They said they would get back to me.

What happened? I spoke to the manager and I basically said I appreciated the optometrist appointment, but couldn’t justify paying so much more than Costco.

She managed to find room in their pricing and reduced the bill by about 60%. This was acceptable to me because I liked the frames I purchased and I didn’t want to go to Costco and spend 2 more hours shopping for new glasses.

Tips to Negotiating here.

I reduced the damage, but I still got ripped off because I ignored these 5 signs.

Conclusion: I was really mad about this. I texted my cousin to check how much he paid for his glasses at Costco. I should have done this before being in the situation to make a purchase. I was dumb and in a hurry.

I made this happen.

I procrastinated.
Then, I was in such a hurry that I did no research.
I listened to a sales person.
I went to an upscale boutique when I didn’t need to.
And I simply stopped thinking.

Luckily, my brain came back and I fixed this disaster. But, I created the disaster.

Learn from my mistake.

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