The Index Card-Why Personal Finance Doesn't Have to Be Complicated
The premise of this book is that all most people need to know about personal finance will fit on an index card. I'm all about simplicity so the idea is very appealing. Especially since financial matters can be intimidating.
According to the authors there are 10 rules, one of which is "Remember the Index Card." Most of the rules are common sense. That's not to say we follow them but it is likely that we are familiar with the ideas. Save Your Income, Pay Your Credit Cards in full, that kind of thing.
What was new to me was:
Rule 4-Never Buy or Sell Individual Stocks
Rule 5-Buy Inexpensive, Well-Diversified Index Mutual Funds & Exchange Traded Funds
Rule 6-Make Your Financial Advisor Commit to the Fiduciary Standard
I'm not a financial guru so I can't say if the 3 rules above are solid but based on the wisdom of the rules with which I am familiar, I'm reasonably confident they are good ideas. At the least, they are new terms and ideas I didn't have before. Now I can research them and increase my knowledge.
The other 6 rules are not new. But it's always good to be reminded. You know the idea that we are the average of the 5 people we spend the most time with? Well, I apply that concept to books. Frequently reading financial books helps me to stay on track with my finances.
The Index Card is not the only book we'll ever need to read about personal finance but it's a good place to start. It would be a great book for someone who is overwhelmed with the topic of financial matters, or someone who is new to the idea of money management.
What are your favorite money books? Let me know in the comments as I'm always looking to add to my TBR list.