A Summary and Analysis of The 10 Commandments of Money by Liz Weston for Practicing and Aspiring Managers
This synopsis and review of the book, The 10 Commandments of Money: Survive and Thrive in the New Economy, was prepared by David Stell while a Marketing student in the College of Business at Southeastern Louisiana University.
The 10 Commandments of Money gives great advice to people who are just beginning life and or currently looking to improve their finances. Many people today are unsure how to manage their finances and often look to consolidation companies to fix their problems. This is not the best route according to the author Liz Weston. People need to take control of their own finances and explore their options. With today’s technology, people have many options when managing their debt and should take full advantages of these resources.
The old ways of budgeting no longer work in our society today. Many people thought saving for a rainy day was all they needed, when really they should be saving for a lifetime. With today’s unstable economy, unexpected expenses and disasters can happen on any given day. In order to be prepared, people must live within their own means and stop attempting to live the lifestyle of the rich. This is advice that needs to be stressed after the economic crash of 2008. Most Americans were living outside of their means when economy began to inflate, causing them to be stretched past their financial limit. Many ended up in bankruptcy or with a foreclosed home simply because they were stretched to the max with their finances. This is a lesson that many will never forget within their lifetime.
With this economy, companies have to rethink the way they advertise and do business. Consumers use to be loyal and did very little research before making purchases, although this is no longer true. Consumers are smarter than ever and spend time researching prices and quality before making a purchase. Consumers are still loyal to certain brand names, but are more subject to be persuaded by a competitor. People are tired of being ripped off and now are fending for themselves. This book makes some impressive points about the new trend of shopping.
The book even explains how marriages should be managed financially. Couples are beginning to manage their relationship like a business. They are watching what they spend and how they save. Back in the old days, couples had joint accounts where they deposited their weekly check. Now, couples still have joint accounts but also keep separate accounts. The idea is to keep tension off couples by allowing each individual a certain purchase limit and anything below that can be purchased freely. Finances can tear a couple apart faster than most any other obstacle. This is why the book stresses the importance of staying financially independent while being married.
The author explains the significance of preparing for your child’s education as well. College graduates should never obtain more debt than their expected first year salary. With college rates continuing to rise, it is important for parents to begin preparing as soon as the child is born. Parents do not want to struggle to put their children through college or force their child to take on extensive student loans. By following the budget plan that Liz Weston has created, people will find themselves more flexible and ready to take on life’s surprises.
Published in: Personal Finance