Monday, June 19, 2017

Total Money Makeover

I have listened to this audio book at least three times now. Gauri and I like to watch Dave's video's on Youtube. To us Dave is a tough yet gentle grandfather, someone who doesn't shy to shout fraud when he sees it. 

Dave's baby steps are awesome habit forming tools, offering appropriate cue, routine and reward. Dave makes saving money sexy with his imaginative story telling. He lets you see proudly retire and being a useful member of the society. Many times we are reminded that being in control of our finances is a journey to be endured and enjoyed. Why it's a moral duty to take care of money and how enjoy, invest and give are the only three uses of money.

I don't agree with all of Dave's methods but I can see the reason behind them. Most of the times, razor sharp focus can make us do things which we don't think are possible. I have seen it happen while getting back in shape. And that's one of the reasons why many people with average intelligence, do great things in life. Compounding is the eight wonder of the world. Compounded knowledge and money become a huge pile over a period of time. Compounded bullshit does too, unfortunately.

As I think more about it, investing in retirement account, saving for kids college tuition, getting a term insurance and paying cash for all transactions except for mortgage are forms of delayed gratification. It's akin to working six days a week so that you are fit for life. Saying "NO" to things we can't afford, seems easy but takes courage and lots of thinking on our part. It's simple, but not easy. And Dave celebrates the hustle.

I am sure, I am going to listen to this book more soon. It's a good recommended read for someone starting career. Especially for the compounding part.


 

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