The Truth About Money (2nd Edition)

Rating:
Summary: Laugh your way to Financial Independence
Review: Whoever says money can't buy you happiness doesn't know where to shop. ~Gittel Hudnick

Ric Edelman is a top financial advisor who focuses on issues facing us all. This book began as a course he was teaching at Georgetown University. His work was first published in 1996. Since then, his firm, Edelman Financial Services Inc., has created and implemented financial plans for over 6,500 clients. This review is for the 3rd Edition.

Are you buying your first home, just starting to invest, sending the kids to college, considering retirement or making decisions about long-term care? There is a section for every major issue and tons of great tips and advice. I also love the comic strips throughout the book. Who knew you could laugh your way through a finance book?

The Truth about Money is divided into 14 main sections:

The Rules of Money Have Changed. Again.
Introduction to Financial Planning
Understanding the Capital Markets
Fixed Income Investments
Equities
Packaged Products
The Best Investment Strategies
The Best Financial Strategies
The Best Strategies for Buying, Selling and Owning Homes
Taxes, Taxes, Taxes
Retirement Planning
Insurance
Estate Planning
How to Choose a Financial Adviser

Ric often gets frank about life choices and I enjoyed reading his comments about how we make choices that lead us to our present lifestyle. The information on "Where American's Spend their Money" is enlightening. Housing is at 32%. In the past few years I was able to decrease our housing costs in order to increase funds in other areas and page 307 makes perfect sense to me. I've also watched friends struggle with this issue because they want to keep their lifestyle at such a high level, their income won't cover the luxury of living by themselves. Issues like Liquidating your assets, closing bank accounts, paying off high interest credit cards and borrowing money at a lower interest rate than your credit card interest makes complete sense. Cutting up all but one credit card also works wonders.

While reading the information about credit cards on page 309 I was laughing out loud. Ric is a real comedian. Hey, wait, but he is actually getting my attention in the perfect way. There are also quotes from famous people all through the book and here is a good example:

"If you can see yourself in possession of your goal, it's half yours." ~Tom Hopkins

I loved the: "How to Use This Book" section. There is a list of "If You Are" situations and "Then Read" these page numbers. You can choose from: In Debt, Single, Married, Retired, Female, Young, Old, Parent, The Child of Aging Parents.

Features within the chapters include:

The 11 Reasons You Need to Plan
Building Cash Reserves
Event Risk
Three Ways to Buy Stocks
Understanding Volatility
The Computer vs. The Money Manager
How to Get Out of Debt
Should You Buy or Lease Your Next Car?
How to Protect Your Identity
The American Dream
IRA Accounts
Your Will
Ten Taboos Between You and Your Planner
Four Tips for Working Successfully with a Real Estate Agent
How to Make Money by Giving it Away

If you only have time to read one book about money, "The Truth About Money" should be the book! You could really laugh your way to financial security if you take this advice seriously. This has to be the most enjoyable book about money I've ever read. Everyone in America should read this book in their 20s so they can make wise financial decisions throughout their entire life.

~TheRebeccaReview.com