| |

Money Management for beginners & dummies by Giovanni Rigters – My summary review and opinion

ByWealth Diagram

He goes over these 4 steps, budgeting, saving, debt repayment, Investing.

In order to archive financial independence you need to keep repeating these 4 money management steps

  • Budgeting (chapter one, long read)
  • Saving (chapter two, Medium read)
  • Debt repayment (chapter three, short read)
  • Investing (chapter four, short read)
  • Common mistakes (chapter five, short read). This one was like a bonus

He goes into each step deep, with a bunch of subcategory and examples, budgeting alone have like 10 steps, we won’t do that here, I’ll keep it simple. You can always get his book and read it yourself if you are interested it’s just about one hour read.

Budgeting

He goes over tracking, goal setting, saving 20% plus, automating, emergency funds, excel sheet, budgeting mistakes, etc…

Update:

He mentions that you can use online app and link your card to it, and it would keep track of the budget for you. I like that! it make things easy and simple.

At this moment, I don’t like the word budget, I like to keep things simple. Spend less than you earn or live within your means. Whatever you do , make it automatic, like instead of you tracking the budget, let the online app track it for you, That’s it. Let’s move on.

Saving

At this moment, I don’t like the word saving either, Lets keep simple, in order to invest, the money needs to come from somewhere, that’s where saving come into place

He talks about that there are two ways to increase your wealth.

Increasing your saving which I don’t like once again. Every time I hear the word saving, is like a part of me try to counter it by saying inflation, the dollar is losing value as time passes. No to saving. A penny saved is still a penny. Anyway,

and

Increasing your earning. Now we talking! that I support.

Increasing your earning is the fastest way to financial freedom.

Why I think that?

Well, now you are not saving a penny. Now, you are “saving” $100, $500, $1000, $10,000, $100,000. And now compound interest does make sense with huge amount.

I support Increasing your income also because our life style expenses has a limit, after you make certain amount money there is little that you can not do.

The huge amount of income will allow you, the lifestyle you want without cutting corner. And it will allow you to invest the extra income.

Debt Repayment

keeping it simple, pay your bad debts, and stay out of bad debts. Bad debt free life.

Investing

He goes over 4 things before investing, He says debt free or debt manageable before investing, this make sense.

I keep it simple. Investing, this is what make you rich in the long run. Just make sure to take calculated risk.

Conclusion

In order to archive financial independence you need to keep repeating these 4 money management steps budgeting, saving, debt repayment, Investing.

That’s it

Take a calculated risk

Now, start and adjust as you go.

Similar Posts