I'm giving a talk soon to Literacy Volunteers - people who volunteer to teach English, free of charge, to people who don't speak English - immigrants, typically. My talk will be on financial advice they might give to these people, who generally don't have high incomes.
Any further suggestions would be welcome.
1. The best book to read about personal finance is "Smart and Simple Financial Strategies for Busy People" by Jane Bryant Quinn.
2. As Bill Donoghue once said, if you can't live on your income now, you also can't live on 10 or 15% less. So save 10 or 15%.
3. Defer your gratifications; postpone your pleasures. Take a bus or ride a bicycle to work; don't buy a car. If you absolutely need a car, make it a used car. Bring a sandwich to work ("brown-bag it"); don't eat out. Don't eat out in the evening, either. (Ok, only occasionally.) Go to libraries - where you can rent books, CDs, and movie DVDs or tapes. Don't buy lottery tickets. Buy almost everything used. Forget about cell-phones, 48-inch HD TVs, and Starbucks coffee.
4. Don't try to get rich quick. Try to get rich slowly.
5. Trust everyone, as Mr. Dooley said, but cut the cards.
6. Remember that anyone who tries to sell you something is getting paid - and he or she doesn't get paid if you don't buy. And the more complicated the product or service, usually the higher the commission.
7. If you can't understand it, forget it.
8. Don't buy anything - ANYTHING - over the phone. "Hello, Mr. Boroson, how are you tonight?" "Busy!" (sound of phone slamming down)
9. There's an old saying: Anything that seems too good to be true... isn't true.
10. Want to hear some really dirty English words? Passbook savings account. Annuity. (Deferred variable annuity.) Permanent life insurance. Credit cards. (See below.)
11. If you have saved any money, you need health insurance. If someone depends on your income (spouse, children), you need life insurance. TERM life insurance, not whole life or permanent, which comes with a savings account that stinks in the nostrils of God.
12. You need an "emergency" fund. Spare cash. In case you have high medical bills, for example, or you lose your job. Money to tide you over for six months, say. Keep the money in a money-market fund, where you can get at it easily.
13. Some beautiful words in the English language: Vanguard Group. Mutual funds. Index funds. Once you have enough money, put it into a Vanguard money market fund. Once you have more than enough, buy a Vanguard index fund - perhaps a target-retirement fund. Phone: 877-662-7447.
14. Before you buy anything, read what Consumer Reports magazine writes about it - whether it's a car or a dishwasher.
15. Here's a word to add to your vocabulary: eleeomosynary. As in: Banks are not eleeomosynary institutions. A former U.S. President, Lyndon Johnson, was getting a heart transplant. He asked to have one from a banker. Why? He wanted one that had never been used. (Eleeomosynary means: charitable.)
16. If you're needy, get a second job. Look for clothing drop-offs. Ask your minister or priest for help.
17. Shop the sales. And, believe me, Wal-Mart really IS cheap.
18. Try to bargain. To win the bargaining game, the magic words are: Gosh, I can't afford that.
19. Learn English. Become a citizen. Go to school and develop special skills. Remember, there always is a better job somewhere. Just look before you leap.
20. The road to hell is paved with credit cards. Try never to use them. If you have one, always pay the charges on time. If you're ever late, call up the company and ask for forgiveness. Hell itself is inhabited by the people who run credit-card companies. Along with bankers. And full-service stockbrokers.
21. Stockbrokers, remember, service their clients the way Bonnie and Clyde serviced banks. The definition of a stockbroker: Someone who can make you a small fortune ... provided you started out with a large fortune.
22. The best use of your money: to learn new skills, like computer repair. And to give your kids the best education.
23. Get a mentor. Someone who can give you reliable advice, whom you can go to with questions.
Any further suggestions would be welcome.
1. The best book to read about personal finance is "Smart and Simple Financial Strategies for Busy People" by Jane Bryant Quinn.
2. As Bill Donoghue once said, if you can't live on your income now, you also can't live on 10 or 15% less. So save 10 or 15%.
3. Defer your gratifications; postpone your pleasures. Take a bus or ride a bicycle to work; don't buy a car. If you absolutely need a car, make it a used car. Bring a sandwich to work ("brown-bag it"); don't eat out. Don't eat out in the evening, either. (Ok, only occasionally.) Go to libraries - where you can rent books, CDs, and movie DVDs or tapes. Don't buy lottery tickets. Buy almost everything used. Forget about cell-phones, 48-inch HD TVs, and Starbucks coffee.
4. Don't try to get rich quick. Try to get rich slowly.
5. Trust everyone, as Mr. Dooley said, but cut the cards.
6. Remember that anyone who tries to sell you something is getting paid - and he or she doesn't get paid if you don't buy. And the more complicated the product or service, usually the higher the commission.
7. If you can't understand it, forget it.
8. Don't buy anything - ANYTHING - over the phone. "Hello, Mr. Boroson, how are you tonight?" "Busy!" (sound of phone slamming down)
9. There's an old saying: Anything that seems too good to be true... isn't true.
10. Want to hear some really dirty English words? Passbook savings account. Annuity. (Deferred variable annuity.) Permanent life insurance. Credit cards. (See below.)
11. If you have saved any money, you need health insurance. If someone depends on your income (spouse, children), you need life insurance. TERM life insurance, not whole life or permanent, which comes with a savings account that stinks in the nostrils of God.
12. You need an "emergency" fund. Spare cash. In case you have high medical bills, for example, or you lose your job. Money to tide you over for six months, say. Keep the money in a money-market fund, where you can get at it easily.
13. Some beautiful words in the English language: Vanguard Group. Mutual funds. Index funds. Once you have enough money, put it into a Vanguard money market fund. Once you have more than enough, buy a Vanguard index fund - perhaps a target-retirement fund. Phone: 877-662-7447.
14. Before you buy anything, read what Consumer Reports magazine writes about it - whether it's a car or a dishwasher.
15. Here's a word to add to your vocabulary: eleeomosynary. As in: Banks are not eleeomosynary institutions. A former U.S. President, Lyndon Johnson, was getting a heart transplant. He asked to have one from a banker. Why? He wanted one that had never been used. (Eleeomosynary means: charitable.)
16. If you're needy, get a second job. Look for clothing drop-offs. Ask your minister or priest for help.
17. Shop the sales. And, believe me, Wal-Mart really IS cheap.
18. Try to bargain. To win the bargaining game, the magic words are: Gosh, I can't afford that.
19. Learn English. Become a citizen. Go to school and develop special skills. Remember, there always is a better job somewhere. Just look before you leap.
20. The road to hell is paved with credit cards. Try never to use them. If you have one, always pay the charges on time. If you're ever late, call up the company and ask for forgiveness. Hell itself is inhabited by the people who run credit-card companies. Along with bankers. And full-service stockbrokers.
21. Stockbrokers, remember, service their clients the way Bonnie and Clyde serviced banks. The definition of a stockbroker: Someone who can make you a small fortune ... provided you started out with a large fortune.
22. The best use of your money: to learn new skills, like computer repair. And to give your kids the best education.
23. Get a mentor. Someone who can give you reliable advice, whom you can go to with questions.
