Scott’s Blog

I finally got my copy of I Will Teach You To Be Rich by Ramit Sethi and haven’t really put it down yet.  It is a financial planning book for people in their twenties and thirties and luckily for me it is written especially for the lay person.  I have a 401(k) and have kept myself out of debt, but I never learned how money actually works and how to manage it.  Right from the beginning this book promises to show you how to handle your money and prepare yourself for your future, not by jumping from one “hot” stock to another, but by automating your savings and getting your money to work for you.  I highly recommend this book for anyone who is looking for a practical, no bullshit financial program.  I am not going to review the whole book, there are plenty of those available on the Amazon.com link above, instead I want to keep a record of what I’ve done to get my finances in order.

Why do I want to be rich?  What does being rich mean to me?

To me being rich is what life is all about!  Money, relationships, experiences, I want to be rich in every aspect.  Being rich with money means having enough to support a stable life while allowing me to have and do all the things I want in my life.  I have dreams of traveling, being rich will allow me to see the world.  I love technology and gadgets, being rich will keep me up to date and current.  I want to support and provide for a family, being rich will enable me put money aside for my children’s education and retirement, as well as my own.  Most of all being rich means being prepared and secure so that I never have to go into debt or worry that I can’t afford the necessities.

Week One’s Action Steps

• Get my Credit Report and Credit Score

By going to AnnualCreditReport.com and MyFico.com I was able to see how credit card companies and other lenders view me.  Luckily I have always taken pretty good care of my credit cards (by doing simple things like paying my bills on time, and keeping myself out of debt) and I am only a 2% risk.  By keeping my credit score high I will save money in interest payments from my lenders in the future.

• Set up my Credit Cards

Though I have a few credit cards open, I have pretty much discontinued using them.  I saw them as a way to rack up debt and never understood the benefits.  Credit cards are an important part of your credit rating and by using them responsibly it will set you up for the future.  I decided to start carrying my American Express Blue card and open a Miles by Discover Card for the rewards.

• Handle my cards efficiently

The Miles by Discover Card is a fantastic card for travelers since it has a low APR (10.99% for good credit), no annual fee, allows me to earn 1 mile for each dollar spent and an additional 12,000 bonus miles the first year.  This card also allows me to book my travel arrangements on my own which is add flexibility I will enjoy.  Because these rewards help me to attain my travel goal I will be putting most of my spending on this card including my regular monthly expenses.  I will set up automatic bill pay so I never incur a late charge and will pay in full each month.  My American Express Blue card has a nice credit limit and will afford me security in case any unforeseen expenses present them selves.  I made sure that I pay no fee’s and I asked for a list of perks from each card so that I can take advantage of all my cards have to offer.

• Pay off my debt

I have been very fortunate in this. the only debt I currently have is from the Flip HD Mino camcorder I just purchased which is on a no interest account and will be payed off shortly.  I worked my way down from a high of over $7,000 and have never over spent myself again.

Mint!!

I have been raving about Mint to all my friends since I signed up last September.  Mint is a free (yep free) online finance tool that tracks all of my accounts and allows me to manage my personal spending in a flash.  I keep track of my budgets and my balances, it texts me when my bills come due and if I’ve spent too much money in any category.  It logs my interest on my Investment Accounts and even has a Financial Fitness program that gives you tips on how to keep control of your money by turning it into a game!  It is awesome and well worth a try!

This is the end of week 1 (It’s a six week program according to Ramit) and I am pretty excited to be getting this part of my life handled.  Please send in your comments and opinions especially if you are also reading I Will Teach You To Be Rich or have your own financial tips.