Easy Money: How to Simplify Your Finances and Get What You Want out of Life

This is a book to come back to, there’s too much to take advantage of from a single reading. Nevertheless, I found I could write down items immediately that I could take advantage of soon. One excellent advice I hadn’t seen before was to take my earnings record from my annual Social Security Statement to get my lifetime earnings (to date), add up my total (taxed Medicare) earnings and compare that to my net worth. Liz suggests aiming for my net worth to be 100% of more of my lifetime earnings by the time I am ready to retire. Whoa, trouble! I can see that I am going to have to read this book carefully as I must be in need of Liz’s help.

“Easy Money” is well-organized and seems thorough. Each section is succinct and practically oriented. Some of the advice I’ve learned over time: the value of an alphabetical filing system, the value of index funds , and whether umbrella liability insurance might be, as Liz puts is, “a good idea”. Liz places emphasis on the advice of John Bogle, the founder of Vanguard Funds and explains her recommendation of index funds. She lists a book by Bogle in the “Resources and Recommendations” section of this book. She also discusses why mortgage prepayment might not be wise. She provides what seems to be excellent advice about use of financial planners and when to use a tax professional (tax software just may not handle your situation as well as a professional might). There’s a good section on planning for college, something those with young children might not want to delay for too long.

There are some tips I haven’t considered. One is the idea of a “buy-nothing month” during which one only purchases true necessities. The intent is to get a feeling for how many and how often one buys non-essentials. Another idea is having a “pause button”, i.e. keeping a list of things to buy and having a some “cooling off” period, say 3 days, before considering whether to really buy something one has placed on that list.

Web sites are suggested for “savvy shoppers”. For example, the benefit of the Consumer Reports web site, which is relatively inexpensive for a year’s access. I’ve used this web site for several years and refer to it often enough and for major enough purchases that it has been a great value to me.

I’d suggest keeping this book out, perhaps with your dictionary, so that you are reminded of it and can browse through it periodically to see if there is something you can put into practice. Do I really want to keep track of my spending with personal finance software? I did that once and it helped me find a great deal of needless spending, enough in one year to pay for the personal computer I’d just bought. But it does take commitment to keep track of everything … and a personal computer that one has ready enough access to!

Look at the price of this book here at Amazon, go to Search Inside and at least look at the Table of Contents to see how much Liz covers and how much would be useful to you anytime soon (it might well be a lot). It’s not just the thorough coverage that I recommend this book for (there are other books on personal finances I’ve seen with that), it’s the sharp organization, succinctness and practicality. If you know of a better book on personal finances, let me know. For now, I plan to get what value I can out of this one: Liz’s “pause button” idea is something I can implement immediately.

Rating: 4 / 5

I sometimes wish that self-help and money management and business books would take on realistic titles — that didn’t promise something bigger than they can deliver, something that is not so obviously a publisher ploy to attract readers. In the case of this book, though, the title fits — Ms. Weston has a very simple strategy for dealing with what can seem to be an overwhelming set of considerations. It won’t bring in new income but will help make the most of what you’ve already got, and makes things about as simple as they can be without resorting to unhelpful platitudes.

The basic strategy of the book falls under a few simple headings: (1) develop a system that lets you track exactly where you are and where you need to be; (2) make this system as simple as possible and as automatic as possible — the book has completely left behind the old check register system and enthusiastically endorses online banking and automatic bill pay as much as and wherever possible (and she reminds us that it is possible with so many banks that you really should just find one that lets you do what you need); (3) get clear about your essentials and priorities, and see where you can shave costs off of ongoing and enduring and essential expenses; (4) after that, there isn’t much to say about saving change here and there by substituting cheap coffee for an expensive latte (though she does mention a few opportunities to stockpile small change in order gradually to build a savings buffer), since when you are clear about essentials, and have a system that tells you exactly how much you have and how much you need to take care of your priorities, then frivolous expenses appear as such. It’s easier to focus on priorities when you are aware of what it takes to reach them.

I read books like this for the same kind of feeling as I get when I hear a good sermon or a good lecture or see a good movie. It doesn’t tell me anything really all that new but puts what I know in a new perspective and serves as a kind of call to action and call to change — a call to do the things I always like to say and think I ought to do but don’t always do as well as I like. Where this adds is offering a clear strategy for going about that change. There is no magic pill in this book, and “easy” may be too strong of a word — but she does keep things as simple as can be to help you keep things as real as can be.
Rating: 4 / 5

I am a Certified Financial Planner® who works for a firm that handles very rich people. I have managed my personal finances well enough that my net worth is far higher than that of most people of my age and earnings history. In short, I haven’t had the financial problems that would make me part of the target audience for this book, nor have the clients whom my firm serves. On the other hand, I do know a good deal about personal finance. I give you this background so that you can better evaluate my review.

If you have trouble budgeting or saving, this is the book for you; at the very least, it’s one of the books that you should read. Ms. Weston’s advice is correct, clear, and, provided you have the will-power, easy to follow.

Friends who have trouble managing their money frequently ask me for advice. From now on, I’m simply going to recommend this book, which has it all in one place.
Rating: 5 / 5

How to simplify your finances, is how this book is billed, yet the appendix lists 18 books to consult for further information/insights/ideas/strategies. Moreover, this book’s 173 pages (160 if blank pages aren’t counted, or about 100 if the print wasn’t so huge) seems confused whose its audience is. A third or so of the book recommends how one ought to go about finding a certified financial planner (CFP) to help well-off folks with their investments, or to choose the right mortgage. But an even larger portion of the book addresses people who are probably totally clueless and without much if any net worth. You be the judge whether these “tips” will be of use to you. Everyone, Ms Weston states, needs to save more money and, if possible, spend less on housing costs. No more than a third of your income should be spend on housing, she posits. What to do if you’re spending more? Try getting a boarder! Or a roommate! That’s what the author suggests, or perhaps one ought to consider refinancing, she adds, or even move. Other ways to save money, according to the author, include the following: run your washing machine only when full; discontinue high-speed internet access or even cable TV; brown bag it for lunch now and then, or even plant a vegetable garden!; pay off your credit cards with the highest interest rates first. Interestingly too, concerning the latter “tip,” the author notes that only 1 out of 14 folks, on average, carry a credit card balance over $10,000. But then, oddly, she spends the next ten pages on people who might be in this situation. Shop for lower interest rates, ask your card companies for better rates, make a budget and try to stick to it, and finally, she suggests that folks should just stop using their high-interest cards. Put them on the shelf, she says. I expected a lot more from this book than that. Frankly, you’d be better off just buying one of the books she recommends in her appendix than reading this catalog of the obvious (buy index funds instead of individual stocks, do research before visiting a car dealer looking for a new car, do your banking online and link your various accounts, and so on).

The books she recommends (that I daresay you would be better off consulting than this book): Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independenceby Joe Dominguez & Vicki Robin; Personal Finance For Dummies, 5th editionby Eric Tyson; “Smart Couples finish Rich” by David Bach; “Plan your Estate” by Clifford and Jordan; “100 Questions Every First-time Home Buyer should ask” by Ilyce Glink, “Saving for Retirement” by Gail MarksJarvis, and “The Little book of Common Sense Investing” by John Bogle.

Or I’d add, just consult The Wall Street Journal. Complete Personal Finance Guidebook (The Wall Street Journal Guidebooks).

Good Luck!

Rating: 2 / 5

Money troubles plague people of all backgrounds, of all income levels, of all races and colors. It is usually the prime reason that couples split up. People routinely think “If I just had a little more money, everything would be all right.” Then they do make more money – and promptly their living expenses expand to use up that money as well. The solution is a sound financial plan.

Liz Pullman Weston’s book “Easy Money” has a gold seal on it claiming she is the “Internet’s #1 Personal Finance Expert”. I found this a bit extreme when I first began the book – I’ve read many books with similar claims. However, Liz really is what she claims. She handles thousands of questions on websites, on TV and radio. No matter how desperate your situation, she’s probably seen worse and has seen a solution. I don’t mean to unreasonably praise her, but to give you comfort. Really, even if you’re near bankruptcy, she probably has some suggestions that can help you out.

She starts from the beginning and goes step by step. First you have to get a handle on your current situation, no matter how bad or good it is. Get yourself financial software, a notebook, Excel, whatever it is that is going to work best for you.

Next, once you have a solid grounding on what your situation is, you need to start making small, tweaking changes to head in a positive direction. Switch your bank accounts to free accounts. Move to financial software (if you don’t have some already) and get it to auto pay. Set up electronic payments to save you stress and stamps.

Then come the larger changes. Work to set up a small “pad” in your checking account, to prevent costly bounces. Try to save a little each month so you can work up to having a savings of 3 month expenses, so that a hiccup like a job loss or injury does not destroy your finances.

Liz has both the concrete tips (how to set up your desk area to make bill paying easy) and more philosophical style tips (do a “buy-nothing-month” and see how much money you save if you only buy the real essentials).

It’s important to keep in mind that – despite news media hammering that the entire US is debt-ridden – that many people DO manage to live within their budgets. 1/4 of US households do not use credit cards. Another 30% of households use them, but pay in full every month. So there are a lot of people out there who have figured out how to do this, and do it successfully. I for example now pay my balances in full each month. It wasn’t easy – I used to have a lot of debt – but I followed a system very much like this and climbed out of that hole. It definitely is possible.

Liz offers step by step instructions, checklists, reminders. She provides information on getting credit cards, on buying a house. She tells you not to lease a car, and to really learn to be content with the life you have. More money doesn’t always help. Also, she encourages you to give yourself some kudos. We all make mistakes. Every person has made a “silly” financial decision or two. You own up to them, reevaluate and move forward.

That being said, she points out it is critical not to fall into the trap of saying “it’s not my fault”. Yes, we all have troublesome exs, unexpected illnesses and other situations hit us. However, a well laid out financial plan will handle those things. You need to really accept the situation, go through your finances with a fine tooth comb. Did you have a plan? Did you keep a savings buffer? Were you perhaps penny-wise and pound-foolish? There are always ways to save more, and thousands of websites to help you pinch those pennies. You need to buckle down and do it.

Finally, Liz points you towards the future. You have to sit down and take a solid look at your dreams. What is it that you really want to do? Not the “I want a mansion and a yacht” style stuff, but the “if I died tomorrow, what would I want to have as a legacy”.

She has a ton of sections in here – planning for college, renter insurance, investing and more. Not every section will apply to every person, but all the basics will. I honestly think this is a good review for any person, and there’ll always be SOME tip in here to help you improve your situation.

Highly recommended.

Rating: 5 / 5