Wealth Habits: Six Ordinary Steps to Achieve Extraordinary Financial Freedom

Title: Wealth Habits: Six Ordinary Steps to Achieve Extraordinary Financial Freedom

Author: Candy Valentino

Hardcover: 256 pages

Publisher: Wiley

Publishing date: Nov. 15, 2022

Who is this book for? 

  • Anyone lacking connections and/or an education who’s wanting to build wealth.
  • Seasoned entrepreneurs, young adults and everyone in between who is looking for financial guidance. 

What’s inside this book?

  • Candy’s own story of how she opened her first store at age 19 (without the benefit of a college education) and built it into a 7-figure business before most of her friends had even completed college.
  • The six key habits to building wealth:
  1. Long-term investing strategies
  2. How to recession-proof your life
  3. Ways to keep money out of the IRS’ hands
  4. What to teach your children about money
  5. How to establish financial protection and security
  6. The secrets to keep more of the money you make (so you can invest more of it)

4 questions this book will answer for you:  

  • Can I get ahead in life without having a formal education?
  • What are the key habits needed for building wealth?
  • Is it too late to turn my money story around?
  • How can I overcome obstacles to my financial freedom?

What people are saying about this book: 

“I love the way Candy thinks. She shows you how to collapse time in a way the most successful people I know have done: breaking wealth down to the simplest form of the game to create success. This book should be required reading for every high school student, aspiring entrepreneur, or anyone who wants to turn the tables on their current financial situation.” – Rick Steele

“People that build wealth do things differently. Not only does Candy understand this from her own experience, but she does a masterful job of giving the reader actionable steps to immediately put them on the path to financial freedom and generational wealth. She has cracked the code, and if you’re looking to change your financial reality, this book is for you.” – Todd Davis

“Candy Valentino is the real deal! She’s overcome massive obstacles and built practical systems to help anyone achieve massive wealth. I highly recommend this book!” – Rory Vaden

“Candy Valentino is an Entrepreneur’s Entrepreneur! By researching and interviewing the various stages of wealth creation from industry leaders, Candy has really done a masterful job of simplifying the complex. This book is a must read!” – Tom Hatten 

Your Turn: What did you think of Wealth Habits? Share your opinion in the comments.

Broke Millennial: Stop Scraping By and Get Your Financial Life Together

Title: Broke Millennial: Stop Scraping By and Get Your Financial Life Together 

Author: Erin Lowry

Paperback: 288 pages

Publisher: TarcherPerigee

Publishing date: May 2, 2017

Who is this book for? 

  • Cash-strapped 20- and 30-somethings who are always stressing about money.
  • Anyone looking to take control of their financial health.

What’s inside this book?

  • A step-by-step guide to take you from broke to financial master.
  • Tips and tricks for tackling every kind of money situation, in addition to basics, like investing, credit card debt and budgeting.
  • Anecdotes from Erin’s own journey from a debt-crushed millennial to a money master who successfully negotiated a 40% raise.

 4 lessons you’ll learn from this book:  

  1. How to understand your personal relationship with money.
  2. How to manage student loan debt without falling into a panic.
  3. How to successfully navigate social outings in which you’re the only broke one among your friends.
  4. How to find out about your partner’s true financial health.

4 questions this book will answer for you:  

  1. Should I treat money more like a Tinder date or a marriage?
  2. Is it possible to conquer a mountain of debt without getting a massive windfall?
  3. How can I learn about money on millennial terms?
  4. How can I get on the same money page as my partner?

What people are saying about this book: 

“Broke Millennial takes the typical preaching and finger-wagging out of money lessons and replaces them with humor, empathy and a fun, pick-your-financial-path twist, while offering helpful and practical advice to successfully navigate all the financial questions you’ll face in the real world.”— Farnoosh Torabi

“Rich with specific advice to guide readers on the path to financial wellness. Millennials who may be overspending because of #FOMO need to read this book stat!”— Bobbi Rebell

“Thinking about money, especially when you don’t have much, can be painful. But Erin Lowry shows that you don’t need to be a mathematical genius to get on the right track. She makes it easy for people to build a financially healthy plan for life. Spend some time with this book, and your financial decisions and confidence will improve, no doubt.”— Nicholas Clements

“If you’re looking for a book to give to a recent grad, your friend who has no idea what a budget is, or just want to read a personal finance book from someone like you who’s been there…you absolutely need to grab a copy of Broke Millennial.” — Jessica Moorhouse

Your Turn: What did you think of Broke Millennial? Share your opinion in the comments. 

Financial Lessons You Can Learn from Fantasy Football

As summer winds down with autumn creeping closer, it’s time to start thinking fantasy football! Drafting the best team and guiding them toward the championship takes knowledge, dedication, skill and real talent. Do you have what it takes to be a fantasy football champ?

Whether you do or do not, know that fantasy football is so much more than just a super-absorbing hobby. You can actually learn a lot about money management and growing your wealth from the game. Here are five financial lessons you can learn from fantasy football.

  1. Do your research

Every fantasy football aficionado can tell you that your team’s performance throughout the year significantly depends on that one day (typically) in August: Draft Day. Knowing which NFL players to “draft” to your team is crucial to its success. If you sail into this uber-important day unprepared, you’re essentially setting yourself up for failure. Instead, in the weeks leading up to draft day, the true fantasy football pro knows to listen to podcasts from training camps, research potential trades and learn about past performances of various players. Come prepared for draft day and you will make better decisions. 

In personal finance, the rules are similar. When choosing a place or company to “draft” for sinking your money into, you’ll want to do as much research as possible and ask lots of questions: Is this investment secure? Is this company projected to experience growth over the next few years and beyond? What kind of annual gains can I expect to see from this stock? What values drive this company’s culture? Find out as much as you can about any potential investment before forking over your money.

  1. Diversify

In fantasy football, it’s important to diversify your team and to draft players who excel at various positions in real life to ensure the most wins. In finance, diversification is even more important. You’ll want to spread your investments over a mix of whole-market funds, securities and savings accounts. The more exposure your portfolio has among various asset classes and markets, the more protection it has against market volatility and inflation.

  1. Keep your investments private

To a true fantasy football manager, there’s no conversation topic as exciting as the team they’ve drafted and the wins they’ve scored. But to the uninitiated, there’s no conversation topic that can put them to sleep faster than your fantasy football league. Find like-minded fans to talk shop with, but otherwise, you’re best off keeping your observations and insight on the game to yourself.

Investments are similar. You don’t want to be the drag of the party, the office or the block. Talk about your stock performance with your partner, your financial advisor and maybe your mother. Otherwise, keep it to yourself.

4.   Don’t let personal biases impact your investments

It’s hard to leave your personal feelings and opinions behind when drafting players for your fantasy football team. You might want to pick your favorite quarterback, even though there may be one that’s more likely to put up massive stats available to draft. Or maybe you’ll plan to pick players from your favorite team, no matter what they are likely to produce during the season. Or maybe you’ll pass on a top-tier player simply because he’s on the rival team of your favorite. However, the real fantasy football pro knows to ignore personal biases like these and to focus on the skill of each individual player when drafting your roster. 

This rule parallels perfectly in the world of investing. Investors sometimes let their own biases get in the way of making sound financial decisions. For example, they may choose to keep their money in a stock that’s performing poorly because they’ve always loved the company. Or, they may feel personally invested in a stock they’ve purchased, but have a hard time letting go when it is clearly time to sell. To be a successful investor, it’s crucial to leave all personal biases behind when making decisions. 

  1. Assess your financial health throughout the year

While the decisions you make on draft day will have the biggest impact on your team’s performance throughout the season, the fantasy football pro knows how important it is to continuously monitor the performance of each player in real life. There will always be players who get injured, teams that change their strategies or don’t use your chosen player much and players who simply have unproductive seasons. You’ll need to keep an eye on what’s happening so you can make the best decisions regarding potential players on the waiver wire (players who are not on anyone’s team and generally available for any team to add) going forward. 

Financial health is never a set-it-and-forget-it affair. To achieve and maintain true financial wellness, you’ll need to monitor your budget, savings, spending habits and more throughout the year. It’s not enough to give your financial wellness a check-up at year’s end; review and assess your money management every few weeks for the best results. 

Fantasy football–it’s so much more than an addictive hobby! Fantasy football can teach you financial lessons for life. 

Your Turn: Which financial lessons have you learned from fantasy football? Share them with us in the comments.

Buy This, Not That: How to Spend Your Way to Wealth and Freedom

Title: Buy This, Not That: How to Spend Your Way to Wealth and Freedom 

Author: Sam Dogen

Hardcover: 336 pages

Publisher: Portfolio

Publishing date: July 19, 2022

Who is this book for? 

  • Financial Samurai fans looking to learn more.
  • Readers of average economic status who want to learn how to build wealth and achieve financial freedom.

What’s inside this book?

  • The Financial Samurai’s unique approach to money management, which has been absorbed by an audience of 90 million over the past 13 years.
  • The Financial Samurai’s innovative 70/30 framework for optimal financial decision-making.

4 lessons you’ll learn from this book:  

  1. How to tell the difference between good debt and bad debt.
  2. The best way to invest on your own terms.
  3. How to create your own rules for spending.
  4. How to take the guesswork out of financial planning.

4 questions this book will answer for you:  

  1. Can I invest in real estate if I can’t afford to buy property?
  2. How can I build passive income streams that work with my goals and risk tolerance?
  3. What’s the best way to pay down debt?
  4. How do I optimize every dollar I earn so I can maximize my wealth?

What people are saying about this book: 

“Financial Samurai and this book have prepared me for life after basketball! A straightforward guide to live a balanced, financially free life. – Shaun Livingston

“A no-nonsense guide to living your best life now while also ensuring a financially independent future.” – Emily Chang

“A one-of-a-kind book! Bold advice from someone who’s not just done the math, he’s lived it. A must read!” – Kumiko Love

“Step-by-step, chapter-by-chapter, Sam shows how to make optimal money choices that focus on wealth building—not just saving for saving’s sake, but for living life on your terms.” – David Mcknight

Your Turn: What did you think of Buy This Not That? Share your opinion in the comments. 

Cash, Credit or Debit–How Should I Pay?

Q: With inflation soaring, I want to spend my money in the best way possible. When paying for various everyday and occasional purchases, should I be using cash, credit or debit?

A: There’s a time and place for everything. Some purchases should be paid for with cash, some with a credit card, and others with a debit card. Your lifestyle and personality may influence this choice as well. Let’s take a closer look at each payment method and when they should be used.

When should I use cash?

Between P2P payment platforms, mobile payment wallets and the growth of cryptocurrency, the world of commerce is becoming increasingly cashless. In fact, some consumers barely touch cash at all. 

However, there can be times when you’d be better off using cash. First, some gas stations charge less per gallon when the driver pays in cash. The difference is usually modest, up to 10 cents a gallon, but with gas prices soaring, it can add up to substantial savings over the course of a month. Next, if you have trouble sticking to your budget when you shop, it can be helpful to take only the amount of cash you need and leave your cards at home. This way, you’ll be forced to stick to your budget. Finally, some small businesses, like food trucks or independently owned stores, only accept cash payments or offer discounts for paying cash.

On the flip side, there are many disadvantages to using cash. First, cash provides no purchase protection. Consequently, it’s best not to use cash for very large purchases. Next, cash leaves no paper trail and it can make tracking expenses difficult. It’s best not to use cash if you’re trying to get a clear picture of where your money is going. Finally, cash always carries the risk of being lost or stolen. 

When should I use my credit card?

Credit cards are the double-edged sword of personal finance. On the one hand, credit card debt is one of the leading causes of consumer debt in the country. On the other hand, owning credit cards and using them responsibly is a crucial part of one’s financial health. 

In addition to the impact to your credit score, responsibly used credit cards offer two primary advantages: rewards and purchase protection. Using a rewards card for purchases you’d need to make anyway, such as paying utility bills or subscription fees for a service, can help you earn cash back, airline miles or another reward. The second big advantage to using a credit card – the purchase protection it offers – makes it the ideal choice for paying for large purchases or when buying something from a newer retailer. Knowing you can always dispute the charge or even cancel it if the product turns out to be different than expected, can help you shop with confidence. In addition to these advantages, paying with a credit card and making on-time payments can help boost your credit score while making expense tracking easy. 

Ideally, credit cards should only be used to cover fixed or steady payments, such as monthly bills, and for purchases you know you can pay for in full when the bill becomes due. It’s never a good idea to swipe your card for a purchase you cannot pay for today or within the next few weeks. Use your cards responsibly to ensure a healthy credit score and to stay out of debt. 

When should I use my debit card?

In many ways, debit cards offer the best of both worlds. You can always track your spending by reviewing your checking account statement, and you generally can only spend what you have. This helps minimize the risk of falling into debt. In addition, if your card is lost or stolen, you can cancel it and/or close the associated account. 

Debit cards can be a great choice for everyday purchases of any kind. However, since they  typically don’t offer rewards or the same level of purchase protection as credit cards, they may not be the best choice for large purchases, or for paying for products from a new retailer. 

Life is expensive, and you want your money to go as far as possible. Use this guide to help you choose the right payment method in every situation. 

Your Turn: When do you use cash, credit and debit? Tell us about it in the comments. 

Cashing Out: Win the Wealth Game by Walking Away

Title: Cashing Out: Win the Wealth Game by Walking Away

Author: Julien Saunders, Kiersten Saunders

Hardcover: 272 pages

Publisher: Portfolio

Publishing date: June 14, 2022

Who is this book for? 

  • African Americans who find it challenging to build their wealth despite following all the right rules.
  • Anyone struggling with money management and career growth.

What’s inside this book?

  • A roadmap to financial freedom that makes wealth possible despite a broken economic system. 
  • A financial and career path that breaks free from corporate America’s rules so you can build wealth on your terms. 

4 lessons you’ll learn from this book:  

  1. Which goals to prioritize at each stage of your career so you can plan for an early retirement.  
  2. How to talk about money with your partner without every conversation ending in an argument.
  3. Practical strategies to grow your wealth without a large investment of time and energy. 
  4. Why the mantra of “Black Excellence” is an unsustainable form of motivation for building wealth. 

4 questions this book will answer for you:  

  1. I’m following the same script as my white colleagues; why am I only seeing half the results?
  2. Is financial freedom really within my reach?
  3. Why am I always being passed up for career opportunities?
  4. Do I have to sacrifice my time and mental health to maximize my income?

What people are saying about this book: 

“Cashing Out feels like the talk you desperately needed from the big cousins you’ve always looked up to. It’s filled with gems about money, navigating your career and most importantly — relationships — from people who’ve done it successfully. You can literally feel the love and wisdom they’ve poured into every single chapter.” –Anthony O’Neal

“Read this book. Read it for the cool stories. Read it for the cool concepts. But mostly read it because it just might nudge you toward a far freer, richer and more rewarding life.” –J.L. Collins, author of The Simple Path to Wealth

“The ideas in this book have the power to change the wealth trajectories of Black folks everywhere.” –Jewel Burks Solomon

“An honest and encouraging approach, with a dash of tough love, to help you determine what it takes to be financially, emotionally and mentally wealthy.” –Erin Lowry

“Kiersten and Julien know their stuff, but they never put themselves on a pedestal. Instead, they nudge you along to your best financial life like your favorite older siblings, sharing their own vulnerabilities, acknowledging the many systemic barriers that exist, and never making you feel bad for your past choices.” –Tanja Hester

Your Turn: What did you think of Cashing Out? Share your opinion in the comments. 

12 Steps to Financial Wellness Step 7: How to Pay Yourself First

[Now that you’re managing your money well and you’ve even learned to share the gifts you’ve been given, it’s time to start perfecting the art of saving.]

“Pay yourself first” is a catchphrase that means prioritizing your personal savings above other expenses. Savings should not be an afterthought or an extra that only happens if there’s money left over at the end of the month. Putting aside money should be a fixed line on your budget that happens every month without fail. 

Here’s how to successfully pay yourself first.

  1. Review your spending

Take a clear look at your spending. If you already have a budget, this will be as easy as reviewing the column that lists all of your expenses, including your discretionary spending. If you don’t already have a budget, track your spending over several months to identify your primary expenses and to find the average amount of money you spend monthly. A budgeting app, like Mint or YNAB, can make this step super-simple.

  1. Set short- and long-term saving goals

Before you start setting aside money each month, you’ll want to have a clear picture of your saving goals. 

Short-term savings, or funds you want to be able to access in the near future if necessary, can be allocated to an emergency fund. Experts advise having three to six months’ worth of living expenses set aside in an emergency fund in case of a sudden, large expense and/or loss of employment. Some people also build a rainy-day fund, or a slush fund that can be used to pay for anything at all, such as a spontaneous vacation or a large discretionary purchase like a new phone. 

Long-term savings should include funds you can afford not to touch for several years or more. Your long-term saving goals can include funding your retirement, as well as a downpayment on a home, a new car, a sabbatical from work or any other super-big expense.

Narrow down your short- and long-term goals until you have a realistic picture, then attach a number to each savings category.

  1. Set a timeline for each savings goal

Now that you have a number for the amount of funds you want to save, you’ll need to determine a realistic timeline for meeting those goals. You’ll want to give first priority to your emergency fund, but at the same time it’s best not to neglect your future and to start saving for retirement today. This allows time to let compound interest work its magic. To that end, you may want to allocate the bulk of your monthly savings to your emergency fund until you meet your goal. Once your emergency fund is full, you can divide your savings more evenly between your short-term savings and long-term savings. 

While you work through this step, you may want to reach out to an HR rep at your workplace and/or your accountant to discuss your options for a 401k, IRA or another retirement plan. 

  1. Calculate how much you’ll need to save each month 

You’re ready to determine how much money you’ll need to put into savings each month to reach your goals by their deadlines. Take your total for each goal, and divide it by the number of months in your timeline. For example, if you’ve decided you want to have an emergency fund of $24,000 set up in four years’ time, you’ll divide $24,000 by 48 months to get $500 a month. This is the amount you’ll need to set aside each month to reach your goal in time. Do this for each of your goals. 

As you work through this step, don’t forget to account for any interest you’ll accrue for your long-term savings. Also, remember to prioritize your short-term savings for emergencies and adjust your savings allocation once your emergency fund is set up. Without the funds to get you through an emergency, your savings can be depleted as soon as any unexpected expense crops up.

  1. Automate your savings

Once you’ve got your savings plan ready to go, it’s best to make it automatic. You can set up a monthly transfer from your credit union checking account to your credit union savings account [or share certificate]. This way, your savings will grow even when you forget to feed them. Think of this money like taxes – it’s not actually part of your take-home pay, because it gets skimmed off the top before it even hits your wallet. But unlike taxes, all of this money (and the dividends or interest it earns) will land in your pocket one day, with some extra, too!

  1. Monitor and tweak as necessary

Life is dynamic, and your savings plan should be, too. If you find the system you’ve set in place is not working anymore, you can always tweak and come up with one that better meets your lifestyle. If you find that you’re short on the funds you need for paying yourself first, consider trimming your discretionary spending in a budget category or freelancing for extra cash before lowering your monthly savings goal.

Congrats–you’ve mastered the art of paying yourself first!

Your Turn: Do you pay yourself first? Share your best saving tips and advice with us in the comments. 

The Best Way to Spend Your Paycheck

Everyone loves payday, but too many employees don’t know how to allocate their paycheck in a way that best serves their financial needs. Use the tips outlined below to learn how to manage your paycheck responsibly. 

1. Automatically deduct contributions

Your first step in managing your paycheck is making sure you are deducting the optimal amounts. Your employer will likely deduct funds for your health care plan and taxes, but you can determine how much tax is withheld by changing a few elections on your W-4. If you receive too large a tax refund for the prior year, or you’re stuck with a big bill when you file, consider adjusting the amount withheld on your W-4. Also, be sure to take full advantage of any employer-matching offers for your retirement funds — don’t give up free money! 

2. Budget for necessities 

After your contributions are deducted from your paycheck, you’ll be left with your take-home pay, or net income. You’ll use this money for covering expenses until the next payday, so it’s best to budget first for necessities, such as your mortgage or rent payments, utility bills, insurance premiums, etc. You can use the “envelope system” to actually put cash away for necessities or set up a detailed old-fashioned budget, which prioritizes your needs. You can also choose to use the “50/30/20 budget” that sets aside 50% of your income for needs. 

  1. Budget for wants

Once you’ve set aside money for your needs, you can use some of the remaining funds for wants, or discretionary expenses. This can include entertainment costs, dining out and clothing, in addition to what you really need. Here, too, you can put away the cash you need for a spending category into an actual envelope, mark down the amount you can spend in that category on a paper or in an app budget, or simply keep in mind that 30% of your paycheck can be spent on these expenses. 

  1. Pay yourself 

Now that you’ve taken care of your needs and wants until the next paycheck, it’s time to think about the future. Put a percentage of the remaining funds into savings, including IRAs, college saving plans, CDs, investments, emergency funds and the like. Use your predetermined amounts, or 20% of your take-home pay, if using the 50/30/20 budget. If you have any outstanding consumer debt, be sure to pay toward it as well. 

  1. Don’t feel forced to spend it all

Many people mistakenly think they need to spend all of their paycheck before the next one arrives. If you’re left with extra money at the end of the month, there’s no need to waste it. You can beef up your savings, get ahead of your debt or stash some cash away for an expensive time of year, like the holiday season. 

Learning how to wisely manage a paycheck can take some time, but once you’ve got the hang of it, it will be easy and almost happen by itself. 

Your Turn: Do you have any tips on paycheck management? Share them with us in the comments.