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Owning The Power To Control Your Destiny
Spiegel & Grau 2007 ISBN #0-385-51931-1 The title will draw a crowd, but the subtitle says it all ... having the power to control our own destiny. Not just our financial destiny, but our personal destiny, and all that this entails. The reason this book works is because life is not meant to be lived in separate little spaces, all of life's nuances are meant to flow together. Orman writes with humor, from personal experience, and from the experiences of people that she has advised. The numbers in this book become part of a larger story, the story of living life in a conscious, informed fashion. The bottom line ... if we, as women, have the good sense and savvy to go out and make the money, then we owe it to ourselves to have the good sense and savvy to use this money to create a solid financial foundation for ourselves, and to allow our money to work for us. Money is always going to be a major factor in our lives. It is the difference between a life of security and comfort, and living with the fear of being a bag lady (my words, not Orman's!). What Orman came to find out is that women from all walks of life have the tendency to hand over the management of their money to other people in their lives. She goes on to say that money is a reflection of how we perceive and value ourselves. As we need to take better care of ourselves, we also need to take better care of our money. The premise of this book is that we need to develop a healthy, functional, respectful relationship with our money. According to Orman, repairing this relationship is three fold: acknowledging our mistakes, accepting responsibility for the present state of our finances, and resolving to act in a way that brings about change for the better. Orman describes controlling our financial destiny as having the ability to know what to do (and what not to do), and having the conviction and confidence to go out and do what we know needs to be done. The is not just a book to be read and put down, it is a book of action. The first action that we are asked to take is that of releasing any shame that we are holding on to in regard to our finances. Once we do that, we are free to rewrite the story of our lives. We are asked to set our expectations higher, and to not accept less. We are to place fair value on ourselves, our work, and our time. Orman sets out the eight qualities of a wealthy woman as: Harmony, Balance, Courage, Generosity, Happiness, Wisdom, Cleanliness, and Beauty. As you can see - this book is about much, much more than financial wealth! She goes into them in depth, so that we get a good idea of what they are, and how to place them in our own lives. Orman has developed a plan that she calls the Save Yourself Plan. She presents this plan, step by step, in this book. There is also an online section of Orman's Internet site that has specific articles available on topics related to this plan. The Plan is a five month plan. Month One deals with checking and savings accounts. At the beginning of the chapter Orman sets out actions she would like the reader to take in regard to their checking and savings accounts. I won't give anything away here, but this is highly pertinent, highly "doable" information and action steps, including information on different types of financial institutions, organizing bills, paying bills, ATM fees, overdraft charges, and more. It is in this chapter that Orman introduces her partnership with Ameritrade, and the offer that they make her clients: if someone invests a minimum of $600 over a period of one year (twelve months), Ameritrade will add $100 to that account. Month Two has to do with credit cards and FICO scores. These are scary subjects, and subjects that most of us do not know much about because we are scared to ask (or we do not want to admit that we don't already know). This is an incredibly empowering chapter, not the least of which was the explanation of a FICO score and how to obtain it. Month Three deals with retirement investing. Strategies will differ here depending on what part of life you are in - a twenty-something will have a very different game plan, and very different goals, than a fifty-something. The information presented in this chapter is very straightforward, in depth, and written in a format that can be readily understood by anyone. Month Four addresses "must have" documents. I expected to see wills here, and they are, but I also found the pot of gold at the end of the rainbow that I have been looking for - it is called a "revocable living trust". This is a lifesaver, and will guarantee that your money goes where you want it to go, and not to the state! Then there are other "little things", like the safest way to hold title to your home, and how to ensure durable power of attorney for health care. Month Five addresses protecting your family and your home. This is important for everyone, whether you are single, married, or in a relationship/partnership. Covered are issues of life insurance, home insurance, umbrella policies, renters insurance, and condo insurance (the whole thought of condo living sets me on edge!). These are all issues that we need to know about, but they are also issues that where we may not even know what questions to ask! Orman ends the book with more suggestions on steps that the reader can take to bring order to their financial life. She also references the Action Plan available on her site. There is an incredible amount of information packed into this book. It provides a wonderful, balanced approach to cleaning up debt and forging a healthy relationship with money. This is a must read for all women (and it wouldn't hurt men to read it either!).
Bonnie Cehovet
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