"Money Rules"

The Book

Money Rules – The Simple Path to Lifelong Security

Jean Chatzky

What It’s About

In this book the word “Rules” is a noun not a verb.  Chatzky states that there are things just as important or more important than money, (“More money won’t always make you more happy,”) but that if we don’t follow some simple guidelines, lack of money will make you unhappy.  In this short and easily understood book, Chatzky offers 94 rules for handling money well.  Some of the ideas are common sense to most people and have bee stated elsewhere (89.  Don’t lend money to friends and relatives.), but it’s nice to have all these ideas in one place.  This book is definitely for the layman, thought I imagine most financial experts would agree with most of Chatzky’s ideas.

The book is broken into eight sections:

1.     Make Money

2.     Save Money

3.     Avoid (Most) Debt

4.     Spend Wisely

5.     Invest for Tomorrow

6.     Cover Your Assets

7.     Do’s and Don’ts

8.     The Last Word

In addition to money itself, she discusses how money relates to our jobs, our future, and even our personal lives.

Why I Picked This Book

Besides being a quick read, there is some very practical advice.  Though not a technical book, I understand insurance and stocks and bonds just a little better now. 

How This Can Help You

The philosophical bent makes the book accessible to the layman.  Chatzky’s humor also helps.  There’s a philosophical undercurrent behind the principles that I wished I had learned years ago.

Quotes from the Book

                                    1.  Your job is your most important investment.

2.  Your education is your second most important investment.

16. The best way to be comfortable is to be slightly uncomfortable.

21.  Save for something.

24.  Saving is more important than investing.

59.  Nobody cares about your money as much as you do.

80.  Life insurance is (usually) a lousy investment.