Coupons give me panic attacks. They seriously do. Just the thought of taking a cart full of groceries, and a fist full of coupons up to the cash register makes me ill. The checkout lane suddenly becomes a battleground. Fighting tooth and nail with a distraught, overworked cashier just to save 30 ¢ off my box of Capn’ Crunch makes me want to pull my hair out and run screaming in the other direction.
Nevertheless, I like my money, and I have no desire to spend more of it than I have to. After all, I don’t want to make Proctor and Gamble rich, I want to make my family rich!
So the idea of learning to use coupons correctly has been “sharking” me for a while. (Do you know what “sharking” is? It’s when you get an idea into your head that you’re not quite comfortable with. You really wish the idea would go away, but there it is…swimming around in your brain, circling you, accompanied by scary music… until you just know it’s going to pounce on you and rip you to shreds.)
Well, that’s me and coupons. I know I can save my family money by using them. I know that it really shouldn’t be all that difficult either. I also know that the amount of money I’ll save might actually make it worth my time.
So, in an effort to believe that coupons are not, in fact, intended for use in psychological warfare, I sat down and read the “Greatest Secrets of The Coupon Mom” by Stephanie Nelson.
There were some really good, and really bad parts to this book. As far as the really bad parts, there were two.
The book was basically a large advertisement for her website - No, don’t click away yet! There were some redeeming qualities. (I’ll explore them in detail just a little further down)
The examples she gave within the book might as well have been in Swahili - They reminded me of those aptitude tests that we all had to take in school:
Mary had 7 apples. She split three apples in half and gave two apples plus one half of an apple to John. Then Mary gave 3 half-apples to Margret and one more apple to Sam. How many apples did Mary have left?
No, that’s not real example from the book, (thankfully). But the books example’s were all like that: Just this side of being immediately understandable. You can figure them out, with a little thought and patience. Just like I know I can figure this whole coupon thing out, with a little thought and patience.
So, that’s the bad stuff. Let’s talk about what the Coupon Mom did right!
She gave excellent, clear resources to sites besides her own too - Instructions for where to go to get printable coupons, a brief overview of UPromise, BoxTops for Education, and tons of other ways to stretch your dollar ever further are covered.
Waiting for a “sale price” and then using your coupon is clearly explained - If you save 50 cents off of a $1 item, great! But if you wait until that $1 item is on sale for 60 cents, and then use your 50 cent coupon, even better!
She spends a lot of time explaining why you need to know your store’s policy on coupons and sales - She gives a list of simple questions that you can take with you to ask someone at your store. Then she goes on to show how knowing each of the answers will help you save even more money on your everyday purchases.
Nelson (The Coupon Mom) does not believe that you should change what you shop for in order to save money - Instead she believes that you should change how you shop, and when you shop for those items. That was good news for me, since I’m a little bit snobbish about my “choice” brands. I like what I like!
The thing that I liked most about this book wasn’t that it made me any more comfortable with coupons (because it didn’t). No, the thing I liked most is that she spends the entire last half of the book talking about how you can buy food for pennies and donate it to a local food bank - to help out in your own community.
As it turns out, The Coupon Mom.com (her website) is completely free to use. She has created a charity called Cut Out Hunger where she’s taken the food bank donations to a whole new level.
So, I have to admit, the thought of cutting as much as 50% off my own grocery bill, and being able to give to charity at the same time - without paying for her service - well, it sounded too good to be true.
“I’ll just see about this!” I thought. And like a good little lemming, I went to check out her website. I just wanted to see if she was the “real deal” or if there was some sneaky back door subscription service she was trying to wrangle me into.
And there it is - the front page of her site. Hey! She’s been on Oprah! She must be legit!
Uh-oh. I have to sign up to get to see any of the “deals” in my area. Ok. I signed up, and immediately had to click through three affiliate offers. Right now though, I am still giving her the benefit of the doubt. She does say in the book that they way she keeps her website service free is by placing ads on her site. So…let’s press on.
Hey a free E-book that tells me how to cut my grocery bill in half. That’s a nice bonus right off the bat! I’ll have to save that one for another review, but it’s a nice freebie!
So, let’s get down to the nitty-gritty here. What exactly is the service that the Coupon Mom offers? And is it really free?
What’s the deal?
Well, with two quick clicks of my mouse, I got a list of every item that is on sale right now at the Kroger stores in Nashville, TN. The list also specified any coupons I was supposed to use along with the sale price in order to get the best deal. Pretty cool! And it was actually free.
Unfortunately, there was a tiny problem:
I live in Louisville, Ky, not Nashville TN. My city and state did not return any “deals” for me to look at. (Meaning that they have not yet been added to her database. ) There are a lot of places represented though - you may want to check to see if yours is.
The nice thing about having a list of what’s on sale is that it lets you make out your shopping list and prepare your coupons before you go to the store. Since you already know what’s on sale (including the “unadvertised specials”) you can plan to combine coupons with sales so that you save more money in less time.
So, eh, really cool feature! Wish I could use it. The good news is, that’s only half of the free service she offers.
The second part of the service:
The second half of The Coupon Mom’s free service is a real winner in my book! It’s a searchable coupon database! Basically this means that when I get my Sunday paper, I pull the coupons out, but I do not cut them out. Instead, I write the date on the front, and put the whole thing into a file.
Then, when I make out my grocery list, I go to her site, log in, and search the coupon database.
Let’s say I wanted to buy popcorn:
I would search “popcorn” in the database. I would then be shown a quick list of every popcorn coupon available in my area - the same coupons that arrived in my Sunday paper. If I see a coupon I like, I go back to my folder, pull out that circular, and only clip out the popcorn coupon!
Yup, I’m sold on that one. No more time wasted cutting out hundreds of coupons that I might never use? I can just take two seconds to search a database, grab the coupons out of my file, and only cut out what I really need right then. Yes! That I’m sold on. And I don’t even have to pay for it!
So, to finish up the review…would I recommend this book? Sadly, no. But I wholeheartedly recommend the website! And I am excited to check out that free E-Book. Even being a coupon novice I don’t really feel like I learned all that much from this book. The features I mentioned above; references to money savings sites, and a list of questions to take to the grocery store to clarify their policy, those I will use.
I will also definitely consider donating to a food bank with some of the money that I save, if I ever get over my fear of using coupons!
All in all, “Greatest Secrets of the Coupon Mom” was a quick inspiring little read. Just not one I would pay for again if I lost it…
For those who do want the free information and access to the sale and coupon databases, you can visit the Coupon Mom homepage. The website definitely will not disappoint you.
And for those of you who excelled on your aptitude tests….how many apples did Mary have left? Leave me a comment below!
The Complete Guide to Credit Repair by Bill Kelly, Jr. Is a very thorough, smartly written book with a ton of resources. Among other things it includes:
67 Unique Sample Letters and Forms and 14 Inserts
Complete Instruction on how to get and read your credit reports
How to stop collection agencies
How to avoid credit scams
How to start getting your finances back on track
Much of what is covered in this book we cover regularly on this blog. I had already known, and used, many of the steps outlined in this book, and I can tell you that they do work. Still though, I found a lot of new information that I do believe will help me on my own journey to excellent credit. This book was an wonderful reminder to me of one simple thing: Just because I know a lot about something doesn’t mean that there isn’t a whole lot more to learn!
I think the thing that struck me the most about this book is that it presents your credit report as a “hands on” type of thing. I think most of us just assume that our credit files are locked away somewhere, beyond our reach, and that we can only alter them through a lot of effort and a great force of will. The Complete Guide to Credit Repair has a different approach though.
The author, Bill Kelly, Jr. sees your credit report as something that you own, and must maintain - just like a car. Essentially he’s saying that what is in your credit report belongs to you, not the credit bureaus. It is an accounting of your past history, and it effects nearly every aspect of your lives. So he encourages you to own those reports, take an active hand in what appears there, and gives complete instructions on how to easily update your credit reports.
Bits of Wisdom from “The Complete Guide to Credit Repair”:
Kelly stresses throughout the book that any communication you have with lenders, creditors, or collection agencies should be in writing. This is simple advice, but it’s some of the best advice I’ve ever head with regard to fixing your credit rating.
Many, many people get themselves into trouble when dealing with collection agencies - I did at one point. You make a verbal agreement, and then keep your end of the bargain - only to find that the company goes back on their word and wants to change the terms, or that the rep you spoke with no longer handles your account. If you have things in writing, that does not happen. Kelly also suggests sending everything by certified mail so that you have a record of receipt.
Watch out for scams:
There are thousands of credit repair, credit counseling, and debt consolidation companies out there. Kelly gives a short list of ways to protect yourself from the scam artists so that you can weed out the legitimate companies. Ways to spot a rat include:
“900 Numbers” - If you have to call a 900 number to reach them, then it’s a sure sign of a scam.
Unspecified or misleading information - Be especially wary of any lender who offers a “gold” card that is really a secured credit card. This is unscrupulous advertising and it comes with a price: High fees, and unusually high interest rates.
Credit Repair Clinics - Many of these places offer their own cards to you because they are getting kickbacks from the credit card companies. Make sure that any credit repair counselor or clinic is accredited. You can find out more about that in our article “How to tell if a credit counseling service is legit.”
What I loved about The Complete Guide to Credit Repair:
The best part of this book for me, by far, was the chapter on how to read your credit report. Kelly covers the reports from each of the three main credit bureaus (Equifax, Experian and Transunion) and gives the most common codes and abbreviations for each report. I can tell you from my own experience trying to repair and correct things on my credit reports, they are not always easy to understand.
Most credit monitoring services do a great job of “dumbing down” the reports and giving you the edited versions. To really repair your credit though, you have to look at the actual reports, not just the summaries. This is where that list of abbreviations and explanations comes in very handy.
Kelly thoroughly covers every code, and clearly spent a great deal of time making sure that you have a complete and usable resource to refer to when you view your own report.
Kelly also offers specific and brilliant ways to deal with your creditors to get them to report things (or not report things) on your credit reports. Sample letters and instructions are included.
This is an awesome book, it really is. If you want to read a more entertaining, “theoretical” approach to credit repair, I recommend Liz Pulliam Weston’s book. But if you want a slightly dry, hands on, how to actually accomplish the nuts and bolts of fixing your credit report guide then you can’t beat this book - you just cant. All the information you need is here, clearly spelled out, in one place.
I bought it for $9.95 at Borders. I’m not sure what the price is at Amazon, but the information in this book is worth far more than that. I found some new techniques to use, and the book is written so well that its actually easy to use. It makes the entire process of understanding and repairing your credit report so simple that I am less intimidated than ever about what I still need to do to fix my own reports. All in all, this is highly recommended - If you truly intend to put the time and effort into updating and correcting your credit reports this is the book you want.
It’s not exactly light reading, I will say that! But it’s informative as it can be, and so full of real, workable letters and tactics that I will be referring to it over and over - I’ll check this book before I check any other when I need answers.
Healing Your Financial Soul was sent to me by one of our readers, David Hicks. David is a communications consultant, and an ordained minister. He wrote Healing Your Financial Soul to address the deep, underlying issues that force us to struggle with our money every day.
To me, this book is an excellent example of Teddy Roosevelt’s famous quote “Speak softy and carry a big stick“. This “big stick” in this book is the wealth of facts, and David’s excellent understanding of financial psychology. The “speak softly” part comes into play with the generous humor sprinkled throughout the book, and the realization that everyone has money problems, even the very wealthy.
Hicks gets right to the heart of the matter very quickly. In fact, I can honestly say that I learned a lot about myself in the very first chapter. Healing your financial soul is filled with exercises, and visualization tips, all of which have a proven track record in the field of psychology. It was during the first of these exercises that I learned something new about myself.
From the book:
Now, ask yourself this question: What characteristic describes my heart’s desire specific to finances? What quality of word names it?
Well, the first word that sprung to my mind was greed. So, to fill in the second part of the book I wrote:
I am rich in greed.
Well, let me tell you I almost fell out of my chair laughing, because it’s so very, very true! I will say that the author clearly intended me to come up with something positive here, something good that could be reinforced. But, my mind sure had other ideas!
I am rich in greed, I want. And that wanting is at the heart of most of my major financial mistakes. I don’t think wanting is bad per se, but greed is, and I’ve certainly been hit badly by the greed bug lately. I do want to say, “Thank you David, for helping me to learn something about myself, so that I can freely admit it and stop letting it control me!”
See, that’s the kind of book this is - the sort that gets you thinking, deep down, about what’s really going on with your money. Now, I’m not suggesting y’all are greedy (I’m from Kentucky, I’m allowed to say y’all with impunity!) Just that greed is apparently one of the challenges I am facing. The beauty of this book, is that it helps you come up with your own answers - the ones that fit you specifically.
Let me pull a couple of gems from Chapter Two as well:
If you struggle financially, it’s because deep down,
you were taught,
and you agreed to believe,
and made countless decisions to prove
that you’re supposed to struggle.
While doing research for his book, David ran across an interview with a financial planner. The financial planner had something similar to say:
“I wish some [people] would just get the notion to at least put part of [their money] somewhere they can’t get to it for a while…I don’t want to get too Freudian or whatever about this, but it’s almost as if people feel like they have to get rid of the money because they don’t really feel like they deserve it.”
I love these examples because I believe they are true as well. Many of us watch our grandparents, parents, or friends struggle financially. Somehow, somewhere, we picked up the message that we should struggle too. That you have to struggle for money - you have to fight claw, scrape, scrimp and save just to make ends meet.
But what if that’s really not true? What if the reason we struggle is because we believe we have to?
Hicks believes that the money isn’t the problem, our capacity is.
He sums up the money / capacity issue by explaining that it’s like taking a cup out into the ocean to collect water. Now matter how deep you swim, or how many times the waves break over your cup, you can only carry one cup of water out of the ocean. There are oceans of wealth out there too - money is plentiful. Our capacity to gather it is what we have voluntarily restricted.
I love this book, I truly do. I think it says in 264 pages what multitudes of financial books have skipped, or never even touched on. The power to be wealthy, satisfied and happy is ours. The power to tear down success, fail, and fall into an endless pit of despair is ours too. The difference between the two is determined by our beliefs.
You should know that the examples I am giving, they are just tiny bits from the first two chapters. Healing your financial soul is filled with positive, thought provoking passages all the way to the end.
If I could stress any one thing about Healing your financial soul, it’s that it is a fun book. It’s a happy book to sit down and read. It gives you pause for thought more often that it gives you direct instructions, and with each realization you gain that much more control of your own money - your own life.
This is not just a book I will keep and re-read. This is a book I will share with others, and give as a gift at birthdays and holidays, over the next several years.
If you’re interested in finding out more about this book, you can check out the website here. David has also agreed to be around to answer any questions, so you can chat with him directly by leaving a comment below.
Every Sunday we review a personal finance or credit book here on Ask Mr. Credit Card.com. I am pleased to be able to tell you that this week’s book, “The Richest Man In Babylon” by George S. Clason was a wise use of both my money and my time.
The Richest Man in Babylon is a collection of parables - stories of those who lived and died in ancient Babylon.
I never cease to be amazed each time I realize the laws of acquiring and growing money have not changed throughout the years. Indeed, the laws of borrowing money have not changed either, as one of the parables in this book illustrates clearly.
So, if the laws of money have not changed, and the laws of borrowing money have not changed, then it is a simple job to discover them, and put them to work in our own lives. The collected wisdom of our forefathers is there - in black and white - just waiting to be seized and put to good use.
The Richest Man in Babylon is not a long book, or a windy one. All told, it’s only 144 pages. Clason says his piece, and lets it rest, leaving the wisdom to sink in as it will. In fact, there is so much wisdom presented so simply on each page of this book, that I am going to be hard pressed to cover everything in a simple review.
The Man Who Desired Gold:
The Richest Man In Babylon opens with Bansir the chariot maker and his good friend Kobi the bard. Together the two men cannot even come up with two shekels, and they decide to go and speak with one of their old friends, Arkad, who is now the richest man in Babylon.
Arkad willingly agrees to share how he made his own fortune, and thus begins the book.
The first advice of Arkad:
“A portion of all you earn is yours to keep.”
By slowly and methodically setting aside one tenth of his income, Arkad began to grow his wealth. It was not always an easy process, but he persisted. Arkad lost his first year’s worth of savings to a bad investment and had to start over. Because he had already developed the habit of setting aside ten percent for himself, he found it easy to start over, and he learned from his mistakes.
The second advice of Arkad:
“Control Thy Expenditures”
In other words *cough* live on less and draw up a budget. Leave the tenth that you are keeping for yourself alone, and allow it to grow and multiply.
The third advice of Arkad: “Make thy gold multiply”
Arkad multiplied his gold by loaning a sum each year to a shield maker. Every year the shield maker would borrow money in order to buy the bronze that his shields were made from. As he made a profit throughout the year, he would faithfully pay Arkad back, plus interest.
Each year Arkad re-invested not only the initial sum he lent the man, but also the interest he had been paid. So not only did his original loan earn interest, but the additional interest he earned compounded to earn him interest as well.
The fourth advice of Arkad:
“Guard thy treasures from loss”
Arkad’s first investment was a simple plan. He loaned his first year’s savings out to a friend; a bricklayer who was traveling overseas to Tyre. The bricklayer proposed to buy some of Tyre’s famous jewels. Upon his return, he and Arkad would split the profits from the sale of the rare jewels in Babylon.
However, when the bricklayer returned, he found that the dishonest merchants he dealt with had sold him glass gems instead of real ones. Thereupon Arkad learned not to take advice on jewels from a bricklayer. Or, in other words, not to invest in anything that he (or his partner) was not familiar with.
The fifth advice of Arkad:
“Make of they dwelling a profitable investment”
Here, simply put is the age old advice of owning your own home rather than renting.
The sixth advice of Arkad:
“Insure a future income”
By this Arkad suggested not only setting aside a portion of your income to provide for you in your old age, but also to re-invest the dividends of your income so that they provide for your future as well.
The author, Clason, puts the lesson eloquently when he says:
Each penny that you keep becomes a slave for you. If you give it a job, it will work hard, and in time, it’s children, and it’s children’s children will work hard for you as well.
The seventh advice of Arkad:
“Increase thy ability to earn”
Arkad suggests having a definite desire, and working to achieve that goal. Decide on a set amount of money that you would like to earn, and find a way to achieve it. As one accomplishment builds on the next, you can soon find yourself earning far more than you could ever have previously dreamed of.
All in all, excellent advice, though I think it suffers a bit in the re-telling. If you are not currently reading books about money, finance, or credit, then this is the book you will want to start with. It is entertaining, not overwhelming, and it does an amazing job of driving the lessons home in an enjoyable way.
What is it about a well told story that sticks with us far longer than a rote recitation of facts? Maybe it is because, for a short while, we can step into the shoes of those who are having the same troubles we are, and watch as they accomplish their goals.
Maybe it’s because we can readily identify with the human problems of overcoming lust, greed, and ambition as they relate to our money, but we have problems when someone says to us directly “Just make a budget!”
Or, maybe that’s just me.
I do recommend this book to you, with all my heart. It’s one of the best I’ve ever read.
Have you read this book? Give us your opinion below!
Every Sunday here at Ask Mr. Credit Card we review a personal finance book. We give you the no-holds-barred lowdown on the top titles so that you can decide whether or not they are worth your hard earned money!
This weekend we’re reviewing a classic: “Think and Grow Rich” by Napoleon Hill. It’s sold over 15 million copies worldwide since it’s original release in 1937.
So what could a 70 year old book possibly have to say that’s worthwhile? Can it really make you rich? Can you actually “think” your way to wealth?
Honestly, I think that if you use the pattern laid out in this book, you can probably “think” your way to nearly anything you want. Whether your goal is wealth, a job, a situation – anything you put your mind to.
This is more of a book on the psychology of the mind than anything financial, but I did love it.
Let’s take a quick look at the different steps that Think and Grow Rich says you should take to achieve the riches you only dream about.
Decide what you want – The mind is like a guided missile, if you don’t give it a direction, it will never reach it’s goal. So the first step in this book is simple: Decide exactly how much money you want. Pick a specific number, write it down, and focus on it every single day.
Have a strong desire for your goal – Get your emotions involved, and visualize yourself achieving it, especially what it will feel like once you’ve reached your goal.
Have faith that you will reach your goal – Suspend your disbelief, and truly believe that your goal is possible for you. It’s harder than you think it will be, but then that’s what the author means by faith. The suspension of disbelief. Keep it in your mind that not only will you have the amount of money you seek, but that it is right, and normal for you to have it. Believe that you will have it.
Decide what you are going to give up to achieve your goal – Think and Grow Rich is very specific on this point. Nothing is free, and nothing is without sacrifice.
So, by deciding beforehand what you are going to give up, you make a willing sacrifice to move forward.
Draw up a plan of action – It’s hard to get anywhere without a map. Pick specific dates and actions that will help you along the path to wealth. Set road markers. For example, you may want to make a million in the stock market.
So, you would decide what you would have to learn to get there. You would have to pick specific types of investments, or carefully research a financial advisor. Basically set mini-goals within the larger goal.
Overcome Procrastination – If this one were easier, we’d all be successful! Seriously though, this is one of the most important steps in the entire book. Once you have decided what you want, and drawn up a road map, then the next step is just to start doing it. Regularly. Every day. No matter what.
Rinse, and Repeat until you get there – That’s it.
Parts of the book are frankly full of psychobabble, mumbo jumbo. Some of which I put more stock in than others.
Mostly though, Think and Grow Rich lays out an excellent plan of action for pretty much any goal. The author, Napoleon Hill does believe that by following these steps you unite your conscious and subconscious mind towards one goal. He believes that as long as you continue to do that, you will always achieve your goal.
I think that the book’s title is a tad deceptive “think” and grow rich, well, it all starts with the thinking, but it’s the hard work after the thinking that gets you where you are going.
If you enjoy reading about how to better harness the power of your own mind, and you aren’t put off by the idea that thoughts exist as real physical things (with vibrations and all!) then definitely pick this book up. Run, don’t walk – it’s that good.
If you’re not into all that, then take the recommendations above, and try them out in your own life before buying the book. It’s pretty much the standard plan for success of any sort, and it’s served me (and apparently 15 million others!) very well in the past. Enjoy!
“Debt Is Slavery” by Michael Mihalik is a short little read that is packed full of thought provoking concepts.
I wish that I could say I enjoyed reading it, but I didn’t. I really expected to like it. Especially since both Get Rich Slowly and The Simple Dollar gave it high marks. Unfortunately, I got aggravated halfway through and was barely able to finish it (it’s only 122 pages!).
So let’s give a quick rundown of what’s good, and what I believe went horribly, horribly wrong.
The good:
Debt is slavery. It’s an excellent concept. I love it in fact. If we could all think about this a little more before carrying a balance on a credit card, or signing a loan on a car we can’t afford, well, maybe it would help us.
Time is Not Money, But Money Is Time - I loved this concept too. Mihalik spends the better part of a chapter encouraging us to think of our purchases in relation to how many hours we will have to work to pay for them. (Or how much of our life we will have to give up to have that item.) For example, If I make $10 an hour, then I will have to work 8 hours, a full work-day, for an $80 item. And that is not even factoring in taxes.
Understanding that I am trading in a portion of my life just to have a designer purse, well, it makes that purse look a little less attractive to me. I’m at least going to try to get it on sale
The GMM is out to take your money - the GMM being the Giant Marketing Machine. You know the GMM I’ll bet. Anyone with access to a TV, computer, or radio does.
It’s the overall noise that is the background for our lives. Commercials that are constantly telling us to “buy this” “Obey our thirst/emotions/impulses” The ones that are continually and constantly drowning out our powers of reason. Ads like this one are definitely the GMM at work:
Mihalik does a credible job of trying to snap us to our senses by pointing out that we don’t really need all that stuff, and that we are probably better off putting it back into circulation or just giving it away.
Ok, so that’s the good part. Let’s take a look at the not-so-good parts.
The Bad:
In my opinion, there are a few sprinkles of VBFA here and there. VBFA would be Very Bad Financial Advice.
Here are a couple of examples:
Mihalik believes in “good” debt and “bad” debt. For someone who openly professes all debt to be slavery, I have to wonder, is there good slavery and bad slavery?
He believes that going into debt to finance your college education is “good debt” yet he encourages people with mortgages to sell their house and rent instead.
I’m telling you, parts of this book just didn’t add up to me. Personally, I don’t believe in good or bad debt. It might be better to phrase it as necessary and unnecessary debt. Mihalik would probably agree on that point, it was just phrased poorly several times throughout the book.
One other bit of VBFA was this little paragraph:
So what about stocks? Are they a good asset to own?
The can be. The right stocks can appreciate significantly and make you wealthy, but most stocks do not pay dividends and thus, do not qualify as income producing assets.
Huh? Well, I can honestly say that the stocks I own that do not pay dividends have still been real assets. I have my dividend paying stocks in a tax deferred retirement account at present, and they haven’t really produce all that much income anyway. Either he’s wrong or I am, but I definitely consider my stocks assets. Might be just a difference of opinion, but I respectfully disagree with his assessment, and his definition of an asset.
The Ugly:
The first half of this book I thought was really good. But as the book wore on, the tone began to grate on me. It just….reminded me of a young man who thought he had “everything all figured out” and was looking down on those that didn’t. You are all SLAVES…SLAVES I TELL YOU.
I’m not in debt personally, and it still got on my nerves.
I give Mihalik full credit for digging himself out of his own debt in a single year, and I know that he must have worked very hard to do it. However, he flippantly suggests that you sell your home and rent somewhere just to get out of your mortgage without batting an eye.
Now, let me tell you, I have rented all of my adult life and it’s no joy. Especially when you have a family. Sometimes people have to make tough decisions, and sometimes that means selling their homes.
It’s just that Mihalik suggests selling your home in the same tone you would use if you were to suggest going for ice cream. Just because you say something in a cheerful way does not make it less painful, or easier to take. Depending on your situation, it’s not necessarily good advice either.
I will be positive and say that I truly hope Mihalik will write another book in about ten years that delves even deeper into the issues of debt and slavery. I would love to read it. Mihalik is a great author, and he’s got his foundation in order. I think, season that with a little time, and you have a true recipe for success.
For now, I would actually recommend Debt is Slavery for all teenagers, and young college students. I think that this is the audience it is best suited for, and I think it has a much needed message. I do plan to pass it on to my nephew, and I sincerely hope that he reads it. It will be an excellent stocking stuffer for anyone in the 16 to 21 age group.
Debt is Slavery is also an excellent read for any adults out there who may have trouble with buying things on impulse. For everyone else, check it out at your library, or give it a skim in the bookstore to see if it resonates better with you than it did with me.
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The Prosperous Peasant by Tim Clark and Mike Cunningham is a fun, quick little read about the five secrets to fortune and fulfillment. Set in ancient Japan it is a series of stories that begin with two peasants who wish their lives could be different. They are not content to live out their time as farmers, sowing the fields, and bending their backs to the seasons.
One day they decide to take a small journey and seek out a notable samurai named Hideyoshi - an accomplished man who started out as a peasant like them. When they find him, they beg him to share his wisdom, and to reveal to them how he found success in life. Hideyoshi agrees, and the stories that follow each highlight one of his five “secrets” to fortune and fulfillment.
The Five Secrets of Fortune and Fulfillment:
1) Gratitude Attracts Luck - This is my favorite chapter in the entire book, and it includes one of my favorite quotes as well.
If you drink from a spring, remember the stream
This chapter focuses on working diligently with a glad heart. The story itself is enchanting. It speaks of a noble’s son who lost his wealth and suddenly found himself with no money, no skills, and no employment. It follows his journey as he learns to be grateful for newfound employment, and learns to work hard. He works for his master in the daytime, and for himself at night. He does find fortune and fulfillment through thankfulness. 2) Know Your Gift - This chapter is a different story, and focuses on knowing your own talents. Just because a person is born to a particular station in life does not mean that they must remain in that station for their entire lives. It deals with looking deep into yourself and finding what it is that you are meant to do.
3) Conceivable Means Achievable - If you can think it, plan it, and conceive of it - then you can do it. This chapter highlights the story of one of the most accomplished men in Japan’s history - Nobunaga. He started small, but with a plan, and perseverance, he nearly united all of Japan under his rule.
4) Effort Determines Results - No matter what your goal is, in the end it will be your effort that decides whether or not you will reach it. You can put forth average effort, and achieve average results, or you can put forth extraordinary effort and gain extraordinary results.
5) Collaboration Breeds Success - No man can accomplish greatness alone. The story in this chapter illustrates how working together as a team, and having one focus for the whole team, together you can literally overcome any challenge.
Now, please understand that these tenets, when they are laid bare like this sound almost trite - common knowledge right? But set as they are against the tapestry of feudal Japan, they come to life. The authors did an excellent job stepping into popular historical fables and really bringing them to life.
I think the book delivers exactly what it promises. These really are the secrets to fortune, fulfillment and prosperity. This is a book that I may re-read at some point, and I will certainly keep it around for the others in my family to read. It was relaxing, quick, and at times enchanting.
If you are looking for investment advice, or even direct financial advice, this isn’t it. What the Prosperous Peasant does do though is reach out and embrace the true tenets of success, whatever path you take to get there.
If you’re interested in this book, you can visit the official website, or read a sample chapter at Amazon.com
What do you think? Will following these principles help you to find fortune and fulfillment? Have you read the book yourself? Tell us about it below!
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After I read and reviewed “Rich Dad, Poor Dad” last week, I was itching to check out “Rich Dad’s Guide To Investing.” I looked it up online and found it to be $30, which I thought was too much. So, I checked out our local bookstores, and found it for $19.99.
Happily, the clerk had an additional coupon he was able to scan for me, so I got the book for just under $15 dollars – a 50% savings. Which, as it turned out, was a nice metaphor for the book itself. I got about 50% of the value out of this book than I did from “Rich Dad, Poor Dad.“
Rich Dad’s Guide to Investing isn’t a bad book, by any means, it’s just that I’m not at a point yet where I can use many of his ideas. So, I cataloged them in my head, and stored them for later. There were four main points near the beginning of the book that I realized I could use and act on now though, and I would love to share those with you today.
Time is Not Money, Money is Time:
Growing up, I have always heard people say “Time is Money” and frankly, I’ve just never been able to swallow it.
Kiyosaki has a different take on things though, he believes that money is time. I am probably taking things a little out of context here, but the point was loud and clear.
If you need to get from LA to New York, you have plenty of options: You can drive, take the bus, or take a plane. Each method of travel involves a different amount of money. You could possibly take the bus for less money ($100 or so) while a flight could cost you as much as $500. Taking the bus could cost you several days of time, but you would save money. Taking the plane would save a lot of time, but it would cost more.
The idea, to me, was simple. When you have more money, you can take advantage of things that save you time. You can outsource, delegate, and generally afford to pay other people to take care of things that take up too much of your time. The more money you have, the more of your own time you can buy.
Unfortunately, health care works the same way. If you get seriously ill, and you can afford the best treatment, you can possibly buy yourself more time. If you cannot afford that treatment, or those medicines, then you lose time, and health. Please do not take this statement to mean that I am advocating government managed health care – I am not! I’d far rather have the option to get the best treatment I can afford, than be told what treatment I am going to get whether I like it or not.
This was a pretty new thought for me – the more money you have, the more of your own time you are able to control. That alone is a good enough reason to learn to be wealthy in my book.
Have A Financial Plan – In Fact, Have Three of Them:
Kiyosaki’s “Rich Dad” advised him to create not one but three financial plans.
1) One for comfort
2) One for security
3) One to be rich
His Rich dad told him in no uncertain terms to put the first two plans into action before attempting the third. This involves sitting down, concentrating, and deciding what the words “comfort”, “security” and “rich” mean to you. How much money do you need to be each of those things? What steps do you have to take?
Kiyosaki believes that most people (if they get this far at all) simply aim to be comfortable, or at best, secure. I have to admit that I’m at a point in my life where simply being comfortably wealthy, and secure would be an enormous blessing. I am with Kiyosaki on the third one though, I don’t just want to settle for the first two – but they are the right place to start.
Get A Financial Advisor:
Along with creating those three types of financial plans, Kiyosaki recommends hiring a financial advisor. This is something that I have put off doing for a while now. I’m a bootstrapper, I do things on my own, learn the hard way, and I’m suspicious of new things until I have worked through them and understand them. Even with all those negative traits, I am still going to take Kiyosaki’s advice. I am going to get my plans together, and hire a financial advisor. Why?
Because I don’t know how to manage my own money yet. I’m about as fresh off of the turnip truck as they come. Fresh out of bankruptcy. Fresh out of mismanaging our money so badly that when the medical bills started rolling in, my husband and I simply had no money to pay them. At the time, we made $30,000 dollars together, each working full time.
Things are a little different now. After the bankruptcy, we sought out education, second jobs, and a chance to give ourselves a fresh start. But, guess what happened? We worked like crazy, and still had no money saved. We had no money out there working to earn us more money, so that someday we might have more control over our own time.
Now that we are recovering from the bankruptcy, and ready to begin a new life, we are still working on our financial education. It will probably take us years to get to the point that some of you are already at. Frankly, I don’t want to waste that much time that could be spent investing. Yes, I am going to learn everything I can about finances and money management, and investing – but I’m not there yet.
So, the right thing for me to do is find someone who is there, and let them help me manage my money until I reach that point. Reading the passages in this book that deal with financial advisers really did help me to see that it’s time to go ahead and take that step so that I can focus on the bigger picture.
Teach Your Children To Manage Their Money:
Teaching your children about money is a recurring them in both “Rich Dad, Poor Dad”, and “Rich Dad’s Guide To Investing”.
Kiyosaki points out numerous times that the rich groom their children to manage their money when they are older. Poor and middle class people do not talk about money, especially with their children. He also points out that schools do not teach children to manage money, either. So if the parents are not teaching, and the schools are not teaching, then where are our children supposed to learn?
This is something that I really took to heart. I do not want my children to make the mistakes I did. For a long time I blamed the healthcare system for causing our bankruptcy. But you know what? It had nothing to do with it. Stuff happens.
We were managing our money so badly that if it hadn’t been medical bills, it would have been something else. I was the problem, and I can be the solution.
I think that Rich Dad’s Guide To Investing is a good book, and certainly one that I will continue to refer to and re-read as my own knowledge grows. I think that why I love Kiyosaki’s books so much is because he deals directly with the psychology behind being rich, and being poor.
Before anything can become a reality, we first have to change the way we think. We have to think, dream plan, learn, and practice new habits to truly become different than we are. Kiyosaki’s books do help me to do that, and they have rightfully earned a spot in my library.
As a final note, if you are looking for a book that is going to spell out a simple, concrete method of investing, this isn’t it. Instead it deals much more with how to think and behave, and it helps you create your own guidelines and habits based off of your unique goals.
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I think it’s safe to say that reading this book has forever changed my view of money and personal finance. I refused to read it for a long time because I’d heard a lot of negative things about it’s author, Robert Kiyosaki. Namely, that there was no “real” rich dad, or poor dad. I’m glad that I did finally read it though, because I learned so much that it’s going to be difficult to fit it all into one review.
You see, I spend a lot of time reading personal finance blogs. The big ones, the small ones, the in-between and bite sized ones. I always do my best to absorb, and walk away with something that will help me manage my money, and be a little better off at the end of the day.
It’s funny; when I finally got ahold of something that did make an impact, it was like finding a shiny new nickel in the middle of a bunch of lead slugs! No offense to my fellow pf writers is intended here. It’s hard to write truly revolutionary articles day in and day out, we do the best we can.
It’s just that I see a whole lot of articles focusing on how to spend less, cut back, or how to do without. In other words: how to be frugal. After reading Rich Dad, Poor Dad, I now understand that being frugal is not at all the same as acquiring and building wealth. Being frugal and managing your money are two different things as well. Living within a frugal mindset can actually help to keep you poor. To paraphrase a line from the book here;
Do not think “I can’t afford it.” Instead think “How can I afford it?” The one is an admission of failure, the other, a challenge.
We are constantly bombarded with articles about why we should not spend $6 on a cup of coffee, and how to live on a shoestring budget. Well, let me tell you that I am tired of living on next to nothing. I’m tired of eating beans and rice, and doing everything I can to be frugal. Because you know what? It’s not working. For all the doing without, I’m not a penny better off.
I want those six dollar coffees. I want a nice car that I don’t have to worry about breaking down when I take my child to school. I want more than I have, and I don’t think that’s such a bad thing. That’s what we read all these articles for, isn’t it? We want an answer, a way to make things better. I did find that answer in this book, and I hope you will too.
The Rich Don’t Work For Money – They Have Money Work For Them
In his book, Kiyosaki recounts his first job. His rich dad paid him ten cents an hour to take cans off of store shelves, dust them, and put them back. The young Kiyosaki quickly grew angry with the situation. It was mindless work, and he was paid a pitiful wage. When he took his complaints to his rich dad, he told him this:
He also goes on to say that most people allow life to push them around, and instead of learning from it, they get angry. Angry with their boss, for not paying them enough, angry with their spouse, angry with everyone but themselves.
His advice? “If you realize that you’re the problem, then you can change yourself, learn something, and grow wiser. “
It is easy to blame someone – anyone else for our money problems. Just like it’s easy to sit back and expect to collect a pension, or a social security check, or even a welfare check. But if we never take responsibility for our own financial problems, then we never really have control of our own lives. It will be necessary for us to go to work every day, mindlessly doing what we have to do to get our next paycheck – which will almost certainly not be enough to meet our needs.
Pay Yourself First
Pay yourself first is a concept that I have seen many times around the personal finance blog-o-sphere. Nearly everyone, it seems, agrees that you should pay yourself first, but they don’t have too many suggestions as to what you should do with the money that you pay yourself. Me? My first inclination is to go buy a new TV, or an iPod. I’m not really getting ahead that way though, am I?
Kiyosaki puts it better: The “rat race” as he defines it, goes something like this: Go to work. Get paid. Pay bills, buy food, possibly save a little. Buy on credit, pay it back, rinse, repeat.
Breaking out of the rat race: Go to work. Get paid. Invest money. Pay bills. Rinse, repeat; until you no longer have to go to work unless you want to, because your investments are paying your bills.
Now this isn’t a revolutionary idea, but it is certainly one that I have never been taught. I was told to go to school, study hard, get a good job, work hard, save money. Nowhere in that picture was investing even mentioned.
Even to this day, my parents do not invest in the stock market (other than through employer controlled and sponsored retirement accounts.). When I asked them why they said, “We just don’t have the money right now.”
Never mind that with the economy down it’s been like dollar days at the stock market. They aren’t investing in themselves first. They don’t own any income generating real estate. They have no money coming in every month that they did not have to work a 9-5 job for, and neither do I. But I can tell you this, after reading this book I am certainly going to figure out a way to make that happen.
I wish that I could tell you that this book lays bare the complete path to wealth – but it doesn’t. What it does do is challenge every basic assumption that I have ever had about money and how to manage it. I think that I have finally reached a point in my life where I am adult enough to look at my finances and say, “Hey, this isn’t working. I’m no better off from one week to the next, and it’s going to be that way forever unless I change things.”
Kiyosaki does have other books that look like they go into much more detail on how to acquire wealth, but it all starts with Rich Dad, Poor Dad. This book is the one that taught me a new way of thinking about money, work, and building wealth.
I am very excited to read his other books soon, and I will review them here for you. Rich Dad, Poor Dad is a book that I will keep for years. I will read it, and re-read it until it’s message has completely sunk in for me. I will keep it around to turn to when I need a reminder about what my motivations should be, versus how I am living my life.
If you are at a point in your life where you have realized that what you are doing is not working, then Rich Dad, Poor dad might be able to help you make some sense out of things too. It is certainly different, and more straightforward than a lot of the information out there.
If you have read Rich Dad, Poor Dad (and it’s a #1 New York Times Best Seller, so I know you’re out there!) please leave me a comment and tell me what you thought. Did he challenge the way you thought about money and wealth? Did you learn anything you did not already know? Have you managed to break free of the rat race? Leave me a comment and tell me about it!
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I am a huge fan of Liz Pulliam Weston, so when I came across her book, “Your Credit Score: How to Fix, Improve, and Protect the 3-Digit Number that Shapes Your Financial Future” I had to buy it.
We spend so much time talking about how to build your credit score here at Ask Mr. Credit Card, and I’ve done so much research on the subject, that I wondered, “Will I actually be able to learn anything new from this book?” As it turns out, I did learn a few things, and I’d love to share them with you.
Why Your Credit Score Matters:
The most fascinating information by far in this chapter was a side-by-side comparison of two different credit score scenarios:
In the first example, the woman had a 750 credit score, while the second woman had a 650 credit score. The example tracked them throughout their lives and noted their interest rates each time they got a loan.
Even though this was a fictional example that showed the women getting loans at the same time, and in the same amounts, the woman with the lower credit score ended up paying $320,000 more in interest over the course of her lifetime. Got that number? $320,000. There’s your retirement money, right there! What would you do to avoid paying nearly a third of a million dollars in interest?
Now, obviously the specifics of this scenario do not apply to everyone, but seeing it spelled out really drove the point home – Over time having a lower credit score will force you to pay far more each time you borrow money, whether it is for your house, your car, or your credit cards.
How Credit Scoring Works:
I had no idea that there were more than one hundred different credit scoring systems out there today, and they are nearly all being sold to consumers, or used by lenders.
Liz does a good job of going over the basics that make up your score (no matter which system you use). They are:
Your payment history – Making your payments on time is the most important part of your credit score.
How much money you owe – This takes everything into account, your mortgage, car payments, credit cards and loans. Even if you never carry a revolving balance on your credit cards, you should still be sure that you never charge more than 30% of your available balances in any given month.
How long you’ve had credit – The average age of all your credit accounts, and the age of your oldest credit account are what matter here.
Your last application for credit – This takes into account how much time has passed since you opened your last account, and whether or not you have opened up several new accounts at once.
The types of credit you use – FICO considers a good mix of credit to be a mortgage, a car loan, and several major credit cards.
Also discussed is the Vantage Credit Scoring System. This is the credit score model that is embraced by the three credit bureaus, TransUnion, Equifax and Experian. Vantage Score is a little stricter than FICO, and if lenders ever do pick it up there may be quite a few people who find themselves suddenly unable to get credit! However for now, lenders don’t seem to be in a rush to ditch FICO, so if you are going to purchase your credit score, it is probably best to just pay FICO to see it, rather than the three credit bureaus.
Improving Your Credit Score the Right Way:
All the basic advice is here, and clearly explained:
Check your credit report and dispute any errors.
Pay your bills on time
Pay down your debt
Do not apply for credit very often
Do not close your accounts out, even if you no longer use them
Now all of these things we have covered here at Ask Mr Credit Card, in detail. However, the was one revolutionary bit of advice that made me want to stand up and cheer:
When you focus on paying down your credit card debt, pay down the card with the balance closest to the limit first, and not the card with the highest interest rate.
Now, does this make sense financially? Well, that depends. Normally you would want to pay down the card with the highest interest rate first, to avoid paying the additional interest. However, when you put your credit score above your bottom line, this makes perfect sense.
You might be saying “No, that doesn’t make any sense – why would I want to pay more in interest just to raise my credit score?” Well it goes back to the example from chapter one. Yes, you might pay more in interest for a couple of years until you get your cards paid off – but over the course of your lifetime, you will pay far less than you would if you had not put raising your credit score first.
It really falls under the umbrella of the old Credit vs. Finances debate, and think it’s a pretty brilliant idea.
Besides, if you get your credit score up quickly, then you can always balance transfer cards that have high interest rates, and you will still be better off than you were before.
Credit Scoring Myths:
Liz highlights the ten most common credit score myths, but I want to focus in on just one here:
The myth that you have to carry a revolving balance to raise your credit score.
When I worked for the now-defunct Providian financial, I worked in their collections department. I was instructed to tell people that the correct way to raise their credit score was to carry a balance on their card, and pay the interest every month. At the time, I believed it – now I know better.
Your credit score sees no distinction between carrying a balance on your credit card and paying it off month to month. What gets reported is the amount you charge each month and how close to the limit you are, not the amount you pay down. This is why you should never charge more than 30 percent of your available balance, even if you plan to pay the balance in full the same month.
Rebuilding Your Score After A Credit Disaster:
There is a wealth of information in this chapter. The most important points deal with your rights as a consumer, and Liz Pulliam-Weston goes into great detail on the following topics:
Rehabilitating a troubled credit account – Many lenders will give you the option of “rehabilitating” your account. This means that if you make a certain number of on-time payments they will voluntarily remove past negative information from your credit reports. This is an excellent strategy for people who have fallen on tough times, made a few late payments, and need that information removed from their credit reports.
Understanding your right to dispute information on your credit reports , and the best way to do it – including your right to sue a company that continues to place inaccurate information on your credit report. If you have ever been a victim of identity theft, or had a collection account that was sold to several different collection companies, then it’s good to know that you do have legal rights that protect you, and your credit score.
What you need to know about the statues of limitations – The statues of limitations vary by state, and they determine how long a company is able to sue you over a debt.
How to get positive accounts put into your credit files – This is something that we will probably talk about here on Ask Mr. Credit Card in the future. Right now, I have one credit card that only reports to two of the credit bureaus. Since I am actively re-building my score, it would benefit me to have it reported to the third credit bureau as well. It turns out the best strategy is to ask your lender to report the account. There is no legal way to force them to report it, but there are times when asking does actually work.
Get it all in writing – Now, this may seem like basic advice, but it is still sound. Since it’s the electronic age, many of us prefer to use the internet, or a telephone to dispute, or make arrangements with our creditors. Remembering to get all of your important documents in writing will save you a lot of trouble, and money, down the road.
Keeping Your Credit Score Healthy:
This chapter focused not only on good credit practices, but on good personal finance practices as well.
The tips included things like not buying more house than you can afford, having an emergency fund, carrying enough insurance, and keeping your fixed expenses as low as possible. All in all this chapter was not particularly revolutionary, but then, good sound financial advice rarely is.
Many of us roll our eyes when we hear things like “Work hard, keep your expenses low, and pay your bills on time” yet we transfer our money from savings account to savings account just to gain a point or two on our interest rates.
The truth is, if we would follow that time tested advice more often, instead of looking for the magic pill to make our finances better, Liz wouldn’t need to write a book on the subject, and I would probably be out of a job!
Would you recommend this book?
Yes. 100% Yes. I will keep it, and refer to it often as I rebuild my own credit score. There are lessons in this book that are relevant no matter what your financial situation is, but it is an especially good book for anyone who is in the process of paying down their debts, and re-building their credit score. I highly recommend it.
What about you? Have you read this book? Did you like it?
What is your favorite personal finance book? Leave us a comment below!
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Coupons give me panic attacks. They seriously do. Just the thought of taking a cart full of groceries, and a fist full of coupons up to the cash register makes me ill. The checkout lane suddenly becomes a battleground. Fighting tooth and nail with a distraught, overworked cashier just to save 30 ¢ off my box of Capn’ Crunch makes me want to pull my hair out and run screaming in the other direction. 
The Complete Guide to Credit Repair by Bill Kelly, Jr. Is a very thorough, smartly written book with a ton of resources. Among other things it includes:
Every Sunday we review a personal finance or credit book here on Ask Mr. Credit Card.com. I am pleased to be able to tell you that this week’s book, “The Richest Man In Babylon” by George S. Clason was a wise use of both my money and my time. 
Every Sunday here at Ask Mr. Credit Card we review a personal finance book. We give you the no-holds-barred lowdown on the top titles so that you can decide whether or not they are worth your hard earned money!
“Debt Is Slavery” by Michael Mihalik is a short little read that is packed full of thought provoking concepts.
The Prosperous Peasant by Tim Clark and Mike Cunningham is a fun, quick little read about the five secrets to fortune and fulfillment. Set in ancient Japan it is a series of stories that begin with two peasants who wish their lives could be different. They are not content to live out their time as farmers, sowing the fields, and bending their backs to the seasons. 
After I read and reviewed “Rich Dad, Poor Dad” last week, I was itching to check out “Rich Dad’s Guide To Investing.” I looked it up online and found it to be $30, which I thought was too much. So, I checked out our local bookstores, and found it for $19.99. 
I think it’s safe to say that reading this book has forever changed my view of money and personal finance. I refused to read it for a long time because I’d heard a lot of negative things about it’s author, Robert Kiyosaki. Namely, that there was no “real” rich dad, or poor dad. I’m glad that I did finally read it though, because I learned so much that it’s going to be difficult to fit it all into one review. 
I am a huge fan of 
