SPEND YOUR RAISE
Pub Date: Spring
A concise, practical guide of rules to follow to
make--and keep--you rich. Written by one of America's leading
authorities on finance, the Director of the Jump$start Coalition in
Chosen by The Washington Post as the June pick of the month in
"I picked these books because all three are in paperback, each costs
less than $13, and all are small enough to fit in a tote bag. The books also
contain easy-to-understand, nugget-size chapters. Trust me, despite the
subject, they are perfect beach books. To be certain, you won't find them to
be the typical trashy novel or crime thriller many vacationers like to read
while catching some rays, but with these books you'll actually come away
with information you can use.
write more about the July and August selections in the coming months, but
for now let me discuss "Don't Spend Your Raise" by Duguay, the
executive director of the Jump$tart Coalition for Personal Financial
Literacy, a nonprofit organization that seeks to improve the personal
financial literacy of young adults.
reminds me of the common-sense financial advice I got from my grandmother,
Big Mama. Whether you're a financial pro or someone just graduating from
college, you will learn something from "Don't Spend Your Raise."
In her book, Duguay comes up with 60 rules about money that are simple but
tried and true. Here are just a few:
does not always mean free. "Try to figure out any related costs that
may occur as a result of getting something for free. If the item is used,
will there be repair costs? If you win a vacation, what costs are covered?
Questions such as these need to be seriously considered before you accept
anything for free."
spend your raise. "Try not to spend your raise or any bonus you
receive. Since you are not used to receiving this extra money, you won't
leave home too soon. "It is normal for young adults to want to assert
their independence. But if they are not prepared for the financial realities
of the marketplace, they may falter and end up moving back to the
have more than two credit cards. "There is this mistaken notion that
you need lots of credit cards to build a credit history. This notion is
false. You only need one or two that you pay on time and preferably in full
every month. As Ann Landers once said, 'The easiest way to get a fatter
wallet is to take out your credit cards.' " As Duguay told me in an
interview, if you leave home without your credit cards you'll find you have
more money to save.
start your married life with excessive wedding debt. "Just keep in mind
that the money you and your spouse-to-be spend at the start of your life
together is money that will then not be available for your immediate or
hide from the bill collector. "The best course of action is to always
call the creditor before the creditor has to call you."
look at this list and say to yourself, "Duh." Who doesn't know
that you should save your raise or cut back on your credit-card usage? Well,
many people may know the rules that Duguay lists, but they sure don't follow
should know. She spent six years as director of education for Consumer
Credit Counseling Service in Los Angeles. She's seen what happens to people
who overspend or fail to save for an emergency.
summer while you're soaking up some sun, immerse yourself in this book (no
chapter is longer than four pages). Duguay's rules will no doubt help you
make fewer financial mistakes."
--The Washington Post
Rights: Contact Contemporary
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