I was lucky enough to get this book as a gift from a friend. It’s one of the books I’ve walked by one hundred times but never actually picked up to buy. I’m glad I received it when I did!
David Bach, who invented the Latte Factor is a personal finance guru with a number of different books written. Prior to this one his best selling books include: The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich, Start Late, Finish Rich: A No-Fail Plan for Achieving Financial Freedom at Any Age (Finish Rich Book Series) and of course Smart Couples Finish Rich: 9 Steps to Creating a Rich Future for You and Your Partner.
This is another of those books that I read through the night to finish. By the time I was done I had made 5 or 6 pages of notes and realized that there’s a lot more to personal finance than budgeting!
What I liked the most about this book was that Bach took the focus off the end goal of “having a million dollars” and directed me to focus on my personal and family values rather than the cash. He transforms your thoughts from the normal, “I want a million dollars, in cash, by December 31, 2025″ and makes you look at your financial goals from the Do-Be-Have mentality. Do-Be-Have meaning that you start with who you are and what you like then what you want.
I also really liked the entire section on organizing your life. He helps you create your filing system, organize your financial papers, personal information and prioritize your next steps. This part of the book also really helped me to focus on getting my financial information and accounts in order.
For a quick summary of the book:
- Couple need to BOTH plan their futures together
- Couples need to fully understand the ins/outs of their financial situation
- Base financial goals on Values (Be-Do-Have) rather than just monetary
- Get your insurance and wills in order
- Debunks the Myths and reveals the Facts about Couples and Money
- Determine the true purpose of Wealth and Money in your life (as a couple)
- Focus on planning as a couple – integrating both your goals
- The Couples Latte Factor – little things you buy that put you in debt
- Money Basket # 1 – Retirement
- Money Basket # 2 – Secutiry
- Money Basket # 3 – Dreams (another great one!)
- The ten biggest financial mistakes a couple can make
- How to increase your income by 10% in 9 weeks
The last one is a little out there. Basically he says that you should be getting a 10% increase in your income or either accept your fate (poor and destitute) or find a new job. This chapter is one that I first questioned (and then successfully implemented) so it was definitely worth the read.
I would suggest this book to anyone interested in getting their financial house in order. I really believe that you need to be organized before you can ever hope to achieve great wealth.