Self-growth
Business & Career
Success
Communication
Healing
Relationships
Psychology
HappinessYou’ll learn
- What is a healthy budget
- Why cooking at home is profitable
- How to invest with minimal income
- The best conditions to rent housing
Table of contents
first KEY POINT
Your financial decisions can build or destroy your financial success
Do you know anyone who wants to be caught in a financial crisis? Probably not. Although people don’t want to have financial struggles, many of them act as if they don’t care about their finances. People spend without a thought about their debts and how they’ll survive the next month. It is also not uncommon to find people living above their means. This financial nonchalance must stop if we are going to build a world of financially stable people.Almost every successful process has a guide or a set of principles to follow. Your finances are no different; you must learn to be disciplined, spend wisely and create wealth. Tips and concrete action algorithms will be helpful hints to improve your financial situation. They will also contribute to reviewing the overall picture of life and possible changes in your priorities.According to Fagan and Hage, you cannot go on this journey alone. It would be best if you had the support and help of decent individuals who understand the importance of a healthy financial life and building money. These people will also hold you accountable for your goals and catch you when you fail.
Financial wisdom isn’t only about keeping money in your bank account; it also includes your habits, thoughts, and the ability to increase your wealth.
It doesn’t matter how broke or old you are. The following information will change your life and ideas about your finances. It reveals the secrets to help you navigate the success path and make more money. Are you ready to discover how to get good with money and develop better financial habits?
second KEY POINT
To be good with money, you need a personal budget
How often have you bought things you didn’t need or couldn’t afford? We usually make these wrong financial decisions because we do not have a budget. A personal budget is necessary because it will impose the financial rules you need to live by. It will also offer you insights, bring bad money habits to light, and save you from making unsuccessful financial decisions.Four rules will help you create a successful budget:• Don't create any debt you cannot pay back within a month
• Don’t make buying expensive things a habit
• Check your account balance at least twice every week
• Don’t assume savings will happen automaticallyAlso, you need a pyramid of bank accounts in place. At the top is your checking account, where you keep $1,000 for day-to-day expenses. Your savings account comes next, and it houses your emergency fund. In the middle of the pyramid is a semi-liquid savings account which would be useful for saving up to buy a house in a few years. Lastly, an account for longer-term investments is at the bottom of the pyramid.When you have these accounts, you are ready for actual budgeting. First, record all your post-tax income values in the appropriate column in the budgeting tracker. Total these incoming amounts and record the sum in the appropriate box at the bottom of the column. This is your income after tax for the month. Next, record all your expenditures ― rent, groceries, utilities, dog food, cell phone billing, shopping, and the like ― in the appropriate column in the budgeting template. Total these outgoing amounts and record the sum in the appropriate box at the bottom of the column. Lastly, calculate the money left over in your budget after you've paid all your expenditures. This amount is your financial flexibility for the month.
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first KEY POINT
Learn a few basic rules and become a good investor
second KEY POINT
You are doing the right thing when you bring your “A” game to any job
third KEY POINT
Remember that you have food at home
fourth KEY POINT
Your home is your sanctuary — you can be your true self there
fifth KEY POINT
There is nothing wrong with setting money rules in relationships
sixth KEY POINT
Conclusion
Related summaries
Frequently asked questions
What is The Financial Diet: A Total Beginner’s Guide to Getting Good with Money about?
The Financial Diet: A Total Beginner’s Guide to Getting Good with Money, authored by Chelsea Fagan and Lauren Ver Hage, is a comprehensive guide aimed at helping individuals develop healthy financial habits. It focuses on practical budgeting advice, smart saving strategies, and the importance of understanding one’s spending patterns.
What are the key takeaways from The Financial Diet: A Total Beginner’s Guide to Getting Good with Money?
Key takeaways from The Financial Diet include the significance of tracking your expenses, setting achievable financial goals, and the psychological aspects of spending. The book emphasizes the importance of cultivating a money mindset that fosters financial wellness and informed decision-making.
Is The Financial Diet: A Total Beginner’s Guide to Getting Good with Money worth reading?
Yes, The Financial Diet is worth reading for those new to financial literacy, as it provides accessible insights and practical tips that can empower anyone to take control of their finances. Its relatable approach makes financial concepts easy to digest for beginners.
How many pages is The Financial Diet: A Total Beginner’s Guide to Getting Good with Money and when was it published?
The Financial Diet: A Total Beginner’s Guide to Getting Good with Money spans 304 pages and was published on April 10, 2018. This length provides enough depth while remaining engaging for readers seeking straightforward financial advice.
Who is the author of The Financial Diet: A Total Beginner’s Guide to Getting Good with Money?
The authors of The Financial Diet are Chelsea Fagan and Lauren Ver Hage, who bring their expertise in personal finance and media to help readers improve their money management skills. Their relatable writing style and real-world examples make financial topics approachable.