Books are a great way to escape from the doldrums of everyday living.  Contained within the pages of the latest bestseller or literary classic is a world completely unlike your own.  Each turn of the page offers insight into another person’s life, interests, successes, disappointments, and routine.  No matter what your circumstance may be, books can provide you with answers as well as a source of entertainment.

Even if reading is not your thing, there is probably at least one bookworm in your life.  Instead of purchasing another generic present for a special occasion or holiday, why not consult this list for inspiration and give book gifts instead?  From the latest electronic gadget to the hottest accessories on the web, there are a number of gifts for people who love books for sale online.

Here are a few items to check out:

• Electronic Book Readers. From Amazon’s Kindle DX with Global Wireless ($489) to Barnes and Noble’s Nook ($259) and Sony’s Reader Pocket Edition ($199), there is an electronic book reader to fit a person’s needs.  The latest bestsellers, the hottest magazines, and most informative newspapers can be downloaded to the devices which weigh a few pounds each and can be transported from one location to the next with very little effort.

• Mighty Bright Book Lights. Available in a variety of colors, the MightyBright XtraFlex2 Book Light ($16.99) is compact yet effective.  Although it may occasionally need a new battery, the bright LED never needs replacing.  The device’s sleek design makes it easy to carry in a purse or pocket and the secure clip attached to the base of the book light makes it work well with maps, books, and magazines.

• PostSecret: Confessions on Life, Death, and God by Frank Warren. Intended for a mature audience, PostSecret books ($21.99-28.99) are self-indulgent, intriguing, and often times liberating.  Containing hundreds of pages of postcard scrawled secrets sent in by readers and fans alike, the latest edition put out by Warren does little to disappoint.

• Librarian Pin. Great for any real or aspiring Librarian, this classic pin resembles the type worn by bibliophiles worldwide ($10).  Affixed to a frumpy cardigan, the accessory becomes that much more humorous and authentic.

• Noonie’s Masterpiece by Lisa Railsback and illustrated by Sarajo Frieden. An upcoming release from Chronicle Books ($18.99), the hardback children’s book explores what life feels like for a young artist whose vision doesn’t translate well to others.

Book gifts never go out of style.  From the most practical item to the downright bizarre, you can find the perfect present for the book lover on your list effortlessly. Are you a book lover? What kind of gifts do you like to receive? Did we leave anything out?

Charissa Arsaoui is a freelance writer for ChickSpeak, Buzzine, DisFUNKshion Magazine, Student Stuff, and a guest contributor for Wisebread.  She loves thrift related topics and can spot a bargain a mile away.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Fun Gift Ideas for the Book Lover in Your Life

Chances are you’re already familiar with Wise Bread since it’s among the finance blog elite, but you may not know that their book 10,001 Ways to Live Large on a Small Budget was released earlier this week. You might be thinking it’s just another personal finance book, but this book is different.

One of the best aspects of this book is that it’s a collaborative effort, just like their site. Some contributors include the likes of The Digerati Life, Get Rich Slowly, and The Simple Dollar. So instead of just one person firing off a bunch of financial lessons, you get a unique perspective from a wide array of contributors.

The Book

The first thing you’ll notice about the book is the amazing presentation. It’s just bursting with color and has easy to navigate headings and graphics. To be honest, it’s one of the most attractive finance books I’ve read. Usually you’re presented with dull pages, numbers, and tables of data that wear on your eyes, but you won’t get tired of looking at this book.

The second thing is that this is less of a traditional book and more of a reference manual to saving money. You don’t pick this book up and read it from cover to cover. You certainly can, but that’s not how it was designed. Think of it more like an encyclopedia where tips are broken down into different categories so that you can easy search out what you’re looking for. You’d be amazed at the variety of stuff that’s covered. From sections like getting the most out of all you can eat buffets to debt elimination and investing tips, it’s all in there.

This book couldn’t have come at a better time. We’re in the midst of a recession and everyone is looking for realistic ways to save money without sacrificing their lifestyle, and that’s where this book can help. Obviously, not every tip is going to be useful for everyone, but with over 10,000 different ways to safe a few bucks, I’m sure you’ll find something that applies to your life.

A Few Other Tidbits

If you buy the book through Amazon, you’re entitled to a free gift. They are giving away $15 Ebates credits. Once you buy the book, be sure to check out the instructions on how to submit your receipt to claim your $15 credit.

Also, I’m going to be giving away a copy of this book. Now, instead of doing the traditional contest here, I’m going to add this book to my big giveaway starting in a few days. Make sure you stay tuned for that, because it’s going to be big!

I know I handed this book a lot of praise, but it’s well-deserved. The Wise Bread crew and all of the contributors have built the foundation of the personal finance blog community, and it’s great to see their work in print so it can help even more people. And what can I say, they even included my quote on the back cover so my name is in print, too! So, check it out. It’s a really good book, it won’t set you back much money and in fact, if you take advantage of the Ebates offer you actually make money on the deal, so it’s a win-win.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Wise Bread’s 10,001 Ways to Live Large on a Small Budget

For anyone who follows personal finance, David Bach needs no introductions. He’s one of the best-selling financial writers of all time and his Finish Rich series includes eight consecutive bestsellers. With over 15 million copies of his books floating around, you’ve probably encountered one of them at some point.

I’ve always been a fan of David Bach’s books, although I haven’t read them all. What I like most is how he presents the material so that anyone can put it use. While a lot of books go into detail regarding specific tools or strategies, Bach focuses on concepts and strategies. While many of the concepts may be a bit rudimentary for more advanced readers, they really drive the point home for readers who are just getting started on their personal finance journey. The Finish Rich Dictionary takes financial education to the next step by providing a comprehensive resource filled with both familiar and unfamiliar financial terms.

The Finish Rich Dictionary

What surprised me right from the start is the content of this book. Unlike his other works, this book is literally a dictionary. So, you probably won’t sit down and read this book from cover to cover, but it does have 1001 financial words that you need to know. The main premise is that when you know the words, you can ask better questions. I think this is a very important tip. When you’re going through the fine print of a loan, or hear someone talk about a financial topic in the news, how much do you really understand if you’re not familiar with some of the words? How can you make an informed decision if you aren’t quite sure what a certain word means? And that’s where this book can help.

Unlike a traditional dictionary, you’re only going to get words that have something to do with finance. If you look up a word in a traditional dictionary, it may have multiple meanings including those outside of finance, so this book will only focus on how it applies to money. Not only that, but a lot of the words or phrases in this book won’t be in a regular dictionary. You’ll also get detailed pronunciations and other helpful information about the word.

For example, take the abbreviation COLA. If you look this up in a dictionary, you’re going to see a definition that refers to a type of soft drink. The Finish Rich Dictionary points out that this stands for Cost of Living Adjustment, and is commonly used to refer to an increase in wages or benefits to keep up with inflation. And in the back of the book, there is even a collection of common finance equations and a great list of additional suggested readings on personal finance.

All-in-all, I think it’s a handy little resource to keep on your desk. While you probably won’t read it cover to cover and memorize all the words, I’m sure you’ll find a lot of words you weren’t familiar with like I did. And even those words that are familiar, you may be able to expand on your understanding a bit. Knowledge is power, and the more you know, the more informed decisions you can make.

Check out The Finish Rich Dictionary at Amazon.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Review of David Bach’s Finish Rich Dictionary

If there is a book that highlights the importance of financial planning at any age, and makes it accessible to those who may not have many resources to plan with, this is it. Beyond Paycheck to Paycheck: A Conversation About Income, Wealth, and the Steps in Between was written by Michael Rubin of Total Candor. What really stands out is the conversational approach. You almost get the feeling that you’re sitting down and talking with Michael directly. I think this approach has many advantages over more conventional books that can come off as a bit preachy. I think this goes a long way in making sure that people who read it actually go on to take action.

Packed With Information Without Overloading the Reader

Financial topics are a bit dry and full of numbers by nature, and for the person who’s just getting their feet wet, it can easily turn them off or make them feel that it is just too much to learn. Michael strikes a balance between providing the essential information without boring you to death with every little detail or math formula. For example, you could write an entire book about IRA account, but how many people who are just getting started will have the patience for, or even care about everything there is to know about these accounts?

In this book, there is a lot of information pertaining to retirement, and IRAs are no exception. But instead of dragging on, it covers the topic of Traditional and Roth IRAs in just over ten pages, and covers everything the average person needs to know. The book does this because it continues the conversational approach throughout. When beginning the discussion on IRAs, the sub-topics are broken down by questions that the typical reader would ask. It reads as if you are asking the questions, and Michael is answering them. This is a great way to absorb a lot of information compared to most books that will just bombard you with facts and examples.

Dealing with Gary

One of the best aspects of the book is the occasional interjection in the conversation of someone named Gary. From the Total Candor website:

Gary is a commission-obsessed salesman playing a key role in the motivational personal financial planning book  Beyond Paycheck to Paycheck.  Preying on the lesser-informed, this unscrupulous villain sells you products first and asks you questions second.  Well, sometimes.  Other times, he never asks questions at all.

Although we hope you never meet Gary in the real-world, your best defense is a solid financial education.  Therefore, we are compelled to inform you about his habits, tell you the types of questions you should ask him, and always provide you an alternative source for the truth.

I think this is a great part of the book because the things that Gary says and does are exactly what people will come across when dealing with many so-called financial advisors out there. So, you not only get a lot of information, but you are faced with some real world examples of what to look out for if someone is trying to sell you something.

Going Beyond Paycheck to Paycheck

This book is a great resource for many people in Generation X, and the information and style of the book highlight that. If you ask the average 30-something about their finances, I bet a lot of people would say that they basically live paycheck to paycheck. They may still be saving and aren’t drowning in debt, but most people still feel that their money is only lasting from one check to another without much room to get further ahead. This book does a good job and showing people how they can get over that mentality.

Also, the style of the book really resonates with our generation. Let’s face it, we don’t want to be told how to do something, especially by older people that can’t relate to us. We’re entrepreneurial by nature and enjoy seeking out our own path with a hands on approach. Since this book is really just a conversation between you and the author (and sometimes Gary), it allows you to come to your own conclusions and see how to best utilize the techniques in the book for your own situation.

If you are thinking about getting serious about your finances, regardless of age, this book is a great starting point. It brings together the most important topics to consider as you get started without putting you to sleep, and without feeling like you’re reading a textbook. To learn more about the book, the author, and gain access to more financial resources, be sure to check out the Total Candor website.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Book Review: Beyond Paycheck to Paycheck – A Conversation About Income, Wealth, and the Steps in Between

If there is one demographic that needs to become interested in their finances, it is the under 30 crowd. Most young adults feel that they have plenty of time ahead to get serious about their finances, but the fact is, making a few good money choices as early as possible will be even more beneficial than making brilliant choices later. Whether it is getting out of debt, creating a budget, or saving for retirement, the earlier you can begin to make positive chances, the better off you’ll be. Rich by Thirty does a good job at bringing this message to those who need it most.

Lesley Scorgie has been writing and speaking about young adult finances for six years. She has made many television appearances, including The Oprah Winfrey Show and Montel Williams. She has had other writings featured in a number of publications such as Maclean’s and Cosmo Girl. She now travels across the country giving lectures on financial planning for young adults.

What You’ll Find in the Book

This book is structured in a very logical manner. It opens with a discussion about getting motivated. This is a key first step for anyone to become interested in taking control of their finances. If you aren’t motivated to make changes and don’t know why it would benefit you, you’ll never get serious about your money. Lesley does a good job at making the issue of money something that most people can relate with.

From there, the book follows a path that begins with the most basic money concerns of getting organized and creating a budget. These critical steps are the foundation in which you can begin to build upon and tackle the later chapters that discuss getting out of debt, saving money, and investing.

Would I Recommend It?

If you are under the age of 25, or know someone who is, then I think this is a great introduction to personal finance. The writing is easy to understand and most young adults should easily be able to relate with the examples in the book. It introduces some very important concepts without confusing you with a lot of new terms. I also think it helps that this story and book is coming from someone with a modest background. It is refreshing to know that a little education and hard work can go a long way at such a young age to create success. So, I would recommend this book for the young adult in your family as an introduction to money.

Rich by Thirty: A Young Adult’s Guide to Financial Success

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Review of Rich by Thirty: A Young Adult’s Guide to Financial Success

Yesterday I posted the answers to the first half of questions to the authors of On My Own Two Feet and today I present the remaining questions and answers. If you missed part 1 you can find it here, otherwise here are the remaining questions:

Wisely Sunshine asked: My company doesn’t offer any match for the 401K plan and that make most of my co-worker chose not to participate in the 401K. Is it still a good idea to participate in the plan even without a match?

We recommend saving at least 10% of your gross income for retirement and a 401(k) is a nice easy “set it and forget” it way to do that. You tell your employer what percent you want taken out of your paycheck and how you want it invested – and you’re on your way. You will still get the benefit of the tax-deferral and because the money is socked away before you ever see it, you won’t be tempted to spend it. If you are really into squeezing out the value of your retirement dollars, however, and don’t mind a little extra work – we’d recommend fully funding a Roth IRA first, and then doing your non-matching 401(k) contributions. On the margin, a Roth IRA is a slightly more attractive retirement vehicle than a non-matching 401(k) as you have more flexibility in terms of both investment choices and access to funds in the case of a true emergency.

MSMomsmoney asks: I am a single parent of three teenagers. My oldest is 17, and has type 1 diabetes and kidney disease. What is the best way for me to help her get her own health insurance when necessary (I plan to keep her on mine as long as possible).

Also what are some basics that all three of my kids should have–knowledge wise–before they leave the nest? My two daughters work, and have an ING account set up. Oldest daughter will be attending community college to start, other daughter wants to go to a University. Son is only 13.

Your children are very lucky to have such a loving, caring, forward-thinking parent! In terms of your oldest – the “rules” of insurance are complex and evolving (and enough to give any sane person a migraine!). Generally speaking, with serious pre-existing conditions, getting health insurance through a group program (i.e. if your eldest goes to college or works for an employer offering health insurance) is the most cost-effective way. So encouraging your eldest to really investigate these options when considering schools and/or jobs will be important. Because plans vary widely with regards to treatment of pre-existing conditions, you may also want to speak with an insurance broker who specialized in health insurance to investigate other options. Depending upon the state you live in there may be special programs available. You can contact your state’s insurance regulatory office for further information. One last thing, given your eldest condition, you will want to make sure she understands the benefits of COBRA (coverage that she can purchase on her own for up to 18 months if she leaves a job) and HIPPA (legislation which will enable her to get portability of insurance) so that she is never left without coverage.

In terms of general advice for your children, the three basic steps to good personal financial hygiene are: Save, Invest, and Protect. Probably the most important lesson you can impart to your children is the importance of starting to save as early as possible. The next most important step is to teach them the potential perils of credit card use. Explaining to your children that if they can’t afford to pay off their credit card bill at the end of the month, they should be charging that item on it will go a long way. Finally, encouraging them to open up Roth IRAs as soon as they start earning money and to participate in employer-sponsored retirement plans at work is a great way for them to create a solid financial cushion.

Brenna asked: What are some ways to better prepare financially for having a child when there’s only one income, school loans and some consumer debt?

Children are such a bundle of love and joy – but they definitely will put a strain on the pocket book! You are wise to prepare in advance. We’d recommend doing whatever it takes to pay down that consumer debt. For instance, before you have a child, you might take on a second job or really pare down your budget to sock away a little extra each moth towards reducing that debt. (Note, if your debt is $5,000 or less we recommend paying an extra $50 a month, if your debt is between $5,000 and $10,000 we recommend paying an extra $100 a month, and if it is over $10,000 we recommend paying an extra $150 a month). Once you’ve whittled away that consumer debt, we’d also strongly encourage you to save at least six months of living expenses to provide a financial cushion in case of job loss or illness.

Again I just want to thank everyone for taking the time to participate and I hope that the answers received are helpful to you. Another big thanks goes out to the authors for not only taking the time to respond to the questions but for putting together a great book that is sure to help many people with their finances.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Answers to Your Questions From the Authors of “On My Own Two Feet” Part 2

A while back I had done a review of the book On My Own Two Feet: A Modern Girl’s Guide to Personal Finance. I enjoyed the book so much that I was able to open the floor to readers where you could ask the authors of the book financial questions. You guys came up with some great questions and Sharon and Manisha came back with some fantastic answers. This question and answer session was also a giveaway and earlier this morning I announced the three winners, so be sure to find out who won.

With the number of questions and the length of responses I will break it up into two parts so the information is easier to digest. There is a ton of great information so I don’t want anyone to miss anything. So, the first batch of questions and answers are as follows:

KMC asked: In your opinion, what is the absolute best hedge against inflation?

Broadly speaking your investment options fall into three main categories: stocks, bonds, and real estate. Historically speaking, over the long-run, stocks have done the best job of fighting inflation amongst these three asset classes. When you think about this, it makes sense as stocks are pieces of ownership in underlying businesses – and businesses can raise their prices to keep up with inflation in order to maintain earnings growth. There certainly are more complex strategies to hedge against inflation (using options, derivatives, swaps, etc.). But if history is any guide, investing a portion of your long-term money in stocks is a keep-it-simple way to combat the corrosive effects of inflation.

A reader by email asked: Do you prefer a person to get out of debt first (regardless of how much the debt is) or invest in IRAs, 401K etc. I tend to do both, invest and debt reduction. I wanted to know your advice?

Our personal preference is for people to do both simultaneously. We recognize that from a purely financial standpoint, paying off your debt is clearly the most effective financial move. The reason we recommend doing both, however, is that saving – like flossing your teeth or drinking eight glasses of water a day – is a habit that builds on itself. If you wait until you are 100% debt free, you may never begin to save! As a result, we’d recommend a blend, based on your “sleep well at night factor.”

Tactically we recommend first making sure that you always pay your minimum monthly payments on all debt outstanding. After that, you can choose what is the right balance between debt pay down and savings for your psychological preference. In other words, for every $1.00 you have available you might put $0.75 towards paying down your debt and $0.25 towards savings. The precise split is up to you, and will be influenced by how high the interest rate is on your debt. Some people can’t sleep with any debt – for them the right mix is 100% to debt pay down. However, other people are comfortable gently building up their savings muscles while paying down debt. This is a bit of a “chicken & the egg” conundrum, and it gets asked a lot which is why we dedicated Chapter 10 of ON MY OWN TWO FEET to talking about this very subject.

TF asked: My younger sister (she’s 25) is desperate to buy a house. However, she’s not started her 401(k) at work, she spends on clothes like they’re going out of style (well, technically I guess they are), and she’ll be borrowing quite a bit from our folks in order to put a decent amount down on the house. In situations like this, is there a good way to talk to people about personal finance, or is it something that you just hope they come into on their own?

You sound like a very caring older sibling, and while your younger sis may not thank you right away – giving her some tough love is just what the financial doctor ordered! A house is no laughing matter. Just as with getting a puppy, it may sound all warm and fuzzy but there are serious upkeep requirements to home ownership. On top of this is the fact that house values don’t always go up! So many times when we meet people who are struggling to save money it is because they bought more home (or car) than they can afford. This is not a decision to rush into lightly. Our rough rule of thumb is to follow three rules of thumb for home buying: (a) put down at least 20% of the purchase price, (b) expect to live in your house or apartment for at least five years, and (c) estimate the total cost of home ownership – mortgage payment, insurance, property tax, maintenance, and upkeep AND aim to keep this figure to 25% or less of one’s gross income (30% if you live in a major metropolitan area). This subject of housing can be complex, and a one paragraph answer can hardly do it full justice. That’s why we devoted Chapter 11 of ON MY OWN TWO FEET to the subject.

Steve Austin asks: Perhaps a bit of an ornery question: how should one go about identifying whether an advisor or money manager is one of the best in the business (MBA degrees and CFA charters aside)?

Not an ornery question at all – in fact, it is very wise of you to ask! So wise, that we’d actually suggest you ask potential advisors that very question. Their reaction will tell you a lot. You want to work with advisors who understand your desire to have a quality professional assist you with your finances. If they bristle at the question, that’s a big warning sign right off the bat. Another qualification for a personal financial advisor that we admire greatly is the CFP designation (certified financial planner). A long track record and the willingness to provide other client references are also a plus. Finally, you want to make sure the advisor is very specific with you about how often and how you will communicate with each other in monitoring your finances. You’ll also want a clear understanding about how the advisor is being paid.

and a second question, less ornery I hope: how did the money management industry come to assess fees on % of assets under management, and what can be done (within the industry) to change that immoderate practice?

Not being financial historians, we cannot give the derivation of this practice. We would direct you to the writings of John Bogle, founder of Vanguard – who has much to say on the subject <smile>. We have a sneaking suspicion that you will enjoy reading his work!

Broke Now, Rich Later asked: Something that is rarely covered on personal finance blogs is managing retirment income. How should retirement income be taken out of retirement vehicles? I get 2 paychecks a month right now. Should I take out 2 paychecks a months in retirement? Once a year? Right after any jumps in the market?

You are so right, this is a very important subject that we wish would get more attention in general. Without knowing more about your personal financial situation, we can only give some general rules of thumb. To keep the odds that you will outlive your money in retirement to a reasonable level, it is wise to limit your annual withdrawals to no more than 5% of your assets a year (some advisors have even ratcheted that figure down to 4%). The total dollar amount you withdraw each year as a percent of your nest egg matters MUCH more than whether you take the withdrawals once a month, twice a month, or annually. In terms of how frequently to dip in to your nest egg, there are pros and cons to each approach. One school of thought is that you should set aside an entire year’s living expenses in advance in cash equivalents so that you are more “protected” from market vagaries. This approach has intellectual appeal to us – however it will require the discipline not to spend the money all at once. If you think the temptation will be too great, that is a reason to go towards monthly or twice a month withdrawals. Of course, in this more frequent approach, you will have greater susceptibility to market movements. A good book to read on this subject is Terry Savage’s THE SAVAGE NUMBER, which does a lovely job of discussing the challenges and joys of the “draw down” stage of retirement.

and also asks: Along the same lines, should any major changes be made in your 401k/ IRAs at the time of retirement (reallocation, etc.)?

The five years right before – and right after – retirement are the crucial ones. Often they are referred to as “the red zone.” This is typically the time to begin shifting to a more conservative mix in your portfolio. The specific asset allocation will, of course, be dependent upon your own personal risk tolerance and circumstance. But generally speaking, if you are female you want no more than 120 minus your age in stocks as you roll into retirement (so if you are 60 years old, no more than 60% in stocks) and if you are male no more than 110 minus your age in stocks (because men have shorter life spans, statistically speaking). The pros of having more stocks are that you have a greater chance of keeping up with inflation. The cons are that stocks are notoriously volatile. Alas, there is no magic formula for asset allocation – it is an artistic science. The key point for the vast majority of people is that as you near retirement, you want to reduce the risk levels in your portfolio.

Thanks again to those who asked questions and thanks to Sharon and Manisha for taking time out of their busy schedule to answer them. Don’t forget, this is just Part 1 and the remaining questions and answers will be posted tomorrow so make sure to check back.

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Answers to Your Questions From the Authors of “On My Own Two Feet” Part 1

On My Own Two Feet: A Modern Girl’s Guide to Personal Finance is a personal finance book that is in its own words: short, inviting, and easy to read. I have read plenty of personal finance books but this one really struck a chord with me and I’m not even a woman. The first thing that stood out to me were the authors themselves: Manisha Thakor, MBA, CFA and Sharon Kedar, MBA, CFA.

Manisha Thakor and Sharon Kedar both have extensive experience in the financial services industry. At various points in their careers they have worked as financial analysts, portfolio managers, and client servicing/marketing executives for leading investment management firms with billions of dollars in assets under management. Both Manisha and Sharon earned MBA degrees from Harvard Business School and are Chartered Financial Analyst (“CFA”) charterholders.

The combination of a strong education and financial experience put the authors a step ahead of many of the personal finance authors out there today. Throughout the book their experience in the industry shines through and is presented in a very easy to understand way.

The Book

The book itself is somewhat compact and easy to flip through. Instead of long chapters with pages upon pages of text it is broken down into small digestible topics with a liberal application of exampes, FAQs, and quick tips. The actual content of the book is broken down into three parts:

1. The five basic tools for financial success
2. How to invest your savings
3. Dealing with real-life situations

Part 1: Tools for Financial Success

This opening section begins by stressing the importance of saving and starting early which is the cornerstone to financial success. It continues on with credit cards and how to use them wisely, the importance of your credit score and how to make the most of it, and budgeting. It also covers an area that I think is often overlooked among many personal finance books and that is insurance. It goes beyond life insurance and gives examples of other very important types of coverage.

Part 2: Investing

In the second part of the book it goes through the path from saving to investing by covering topics on how important it is to invest and why you should invest. It does a very good job at presenting core investment topics without confusing the reader with too many details. This section utilizes a lot of examples and question and answer blocks that most people should be able to relate to.

Part 3: Strategies for Real-Life Situations

The final section of the book really ties everything together by presenting many real-life decisions that almost everyone will have to deal with at some point in their life. From buying a home or a car, to taxes and entering a committed relationship. It is through these real-world examples that I think most people can relate to and begin to see the importance of financial planning.

Recommendation

While the book is written for women the concepts that are discussed are applicable to everyone. What this book does extremely well is to tailor the information so that women can easily relate to the examples and see the importance of understanding their personal finances. The way the book is put together and filled with examples it is one of the easiest personal finance books I have read.

This would be a fantastic gift for a recent high-school or college graduate in particular but the concepts will be beneficial for anyone who wants to gain a better understanding of their finances. So with that I would highly recommend this book. Even if someone only takes away a few action items from the book it will clearly put them on the road to financial independence.

Title: On My Own Two Feet: A Modern Girl’s Guide to Personal Finance
Publisher: Adams Business
Price (paperback): $12.95
Publication Date: June 2007
ISBN (paperback): 9781598691245
Classification: Business/Finance
Website: http://onmyowntwofeet.com/

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Book Review: On My Own Two Feet: A Modern Girl’s Guide to Personal Finance