Sunday, December 6, 2009

Book Review: Suze Orman's Money Book for the Young, Fabulous and Broke

I disagree with the central idea of the book although a lot of it has to do with its 2005 copyright. Market and job stability back in the early aughts was much different than it is today.

After the usual "spend less, earn more advice we've all heard thousands of times, Orman encourages young, broke, "fabulous" people to rely on credit to support their early lifestyles. While she doesn't advocate using credit for nonsense like fancy shoes, she doesn't appear to be bothered by a person in their 20s who is charging groceries and expecting to pay them off once their financial situation improves in their 30s.

Of course in '09 we're all in a recession/depression/bad financial spot and anyone who follows this advice today is dumb. Yep, there isn't a tactful way of saying this. Using credit and expecting to pay them off in the future is dumb.

Still, there sound advice I thought Future Anny should have so I'm going to type it out:

- When applying for a loan don't stress over perfecting three credit reports. Most lenders rely on one bureau's report so figure out who they leech from and work on impressing that company. If the lender uses the Beacon Score, fix your Equifax. Empirica means TransUnion and Experian is the obvious Experian/Fair Isaac Risk Model.

- Click here to see how much a bond is worth.

- Car Insurance: "The typical minimum amount of mandatory coverage is often expressed as 30/50/20. This means you have 30k worth of bodily injury liability coverage for each person with a 50k limit per accident, and then 20k in coverage for personal property."

Clik here to read the first chapter of Suze Orman - The Money Book for the Young, Fabulous & Broke over at Amazon.