Eric Tyson’s “Personal Finance For Dummies” can be considered as the bible of “Personal Finance” with some essential life lessons it brought on its way for us.
A lot has been written on the subject of personal finance management. This is because it grabbed the interest of many as its significance spread fastly in the financial world. Many wanted to know the essential principles associated with this concept which were able to make it an applicable ideal at the end.
KEY POINTS
- Personal Finance for Dummies by Eric Tyson is an interactive book on personal finance management.
- To date, eight editions of the book have made their part in the financial market.
- There are eight financial lessons that are still active for all to learn and resonate in all eight editions.
- All you need is your own active response towards personal finance management.
Personal Finance for Dummies
Eric Tyson, an expert on financial affairs and management processes, made the world surprised over their financial capabilities when Personal Finance for Dummies made its place in the financial world.
It was considered a source of the most validated and authentic information on the sensitive subject of personal finance management. This was because of its wider approach and involvement in a number of financial areas.
This book created its own place in the course of all other non-fictional financial literature because it was an interactive guide clearing many myths and laying many new foundations all the way to its origin. For this reason, the book reigned the throne of success and this led to the development of its current 8th edition.
Influence of Personal Finance for Dummies
Personal Finance for Dummies remains in the popular race till today because it has specific themes attached to every financial subject matter. You can always get knowledge at any required concept of the financial depth within it.
The most significant thing in that however is the writing style which is so unique and the author tries to tell you the concept completely with the help of real-life examples. This convenience is the reason that people are still mad after it even though so many years have passed since its original composition.
Purpose of New Editions of Personal Finance for Dummies
Every new edition of the book is a new set of codes and principles which are prepared keenly by keeping all the financial ethics in mind. You find out that Personal Finance for Dummies is active to pick up the changes of the financial scenario so the author moods the concepts in that particular direction.
The best part is that you don’t have to worry about sticking to the old concepts of business and financial security in these unpredictable times when the author completely gets your point and formulates new beliefs of personal finance in the field.
8 Life Lessons Which We All Learnt From Personal Finance For Dummies
Personal Finance for Dummies though remains unmatchable in its expression and knowledge about concepts that were once considered complex for the non-financial lot, still, it needs to be credited for something else as well. It is the lifelong lessons in the financial domain which it preached over time and the resonation of whom was felt equally in all the editions.
Grab up yourselves because we are going to tell you the lessons which we felt were the speciality of Personal Finance for Dummies
- Keeping an eye on and being in charge of the financial expenditures.
- Discussing the financial matters with family members.
- Saving and investing wisely.
- Trying to be the owner rather than the borrower.
- Specifying and working for the achievement of fixed financial goals.
- Staying ready for the financial challenges
- Managing and taking care of the “credited life”.
- Spending over the spendworthy.
Keeping an eye on and being in charge of the financial expenditures
The most essential principle which was taught by Personal Finance for Dummies was this one principle. You can never prosper in the financial domain if you are not considerate towards the way you spend. You know that a lot of your financial life is solely based upon the fact of how you manage it. If you are extravagant, it simply means that your financial life does create some problems for you at the end of each month when the expenditures exceed the overall expenses.
So, Tyson cleverly warns you against this habit of expense and gives logical reasons for doing so. A balance in expenditures and income helps you to grow slowly in both the personal and professional domains. You know that your expenditures are only yours and no one else is going to do you the favour of managing them without having a certain interest factor in that. So, why not try to become a bit more controlled and organised in that sphere?
Discussing the financial matters with family members
You know that man is a social animal who cannot live on his/her own. This also applies to your social life as well because there you are interdependent on the family as well. It is important that whatever financial decision you are going to take, you first consult with them for their approval and suggestion.
This will help you find out their perspective and opinion about that specific decision. Once you are going to consult with them over this, things will get better because they will proceed in the order of mutual benefit rather than the single one. Tyson explains that even if. You need to cut down certain expenses, the permission and agreement of all of the family members will produce the result you want otherwise it will be of no use if it’s solely done.
Saving and investing wisely
A stitch in time saves nine. This is exactly Tyson’s point of view when he brings your attention to the idea of saving for a bigger purpose than just for the troubled future. For him, investment is the real motive behind saving for a long time.
It helps you to strengthen yourself quickly according to the financial norms. You are easily able to escape the needy future if you have already planned your hows and whys. When you are keen on saving and then investing them in the right venture, you become financially self-sufficient.
Trying to be the owner rather than the borrower
You know that rents and mortgages or at least say the lease is not an easier pill to swallow, you have to save up a lot for the sake of keeping things in order.
You become financially strained when you are continuously spending a portion of your money on these aspects. It is therefore important, as Tyson calls it “crucial” that you try to move out of this boundary and leap towards owning your own property or business so that you don’t have to become a victim of financial strain on a regular basis.
Specifying and working for the achievement of fixed financial goals
Without goals, you are unable to fix your path in the specified financial order. There must be some goals already present in our mind which would, later on, help us devise our own financial plans on the way to success.
This can save you from a lot of hustle because Tyson prices that when there are fixed goals, the hopes are high and guard never gets down, things become favourable and you are able to make the most out of that.
Staying ready for the financial challenges
Life is a series of risks and you know that in the financial domain, these risks become innumerable each moment. The best thing to do according to Tyson is to keep yourself prepared for what possibly lies in future.
You know that you cannot escape the inevitable but you have this option of deceiving the unfortunate event because of your own skill and immediate decision-making sense. All this is possible if you have already an idea of the risks that can hinder your path.
Managing and taking care of the “credited life”
Many people are careless enough towards their credit life. They are less ignorant towards what lies ahead in terms of the monstrous credit aspect. Tyson suggests that people who do not know the trick to handle their credit debt should more or less avoid coming near to the very venture.
This is because relying too much on credit cards and not putting concern over the credit score can put you in serious financial jeopardy. So, proceed only at your own risk.
Spending over the spendworthy
Money is indeed a great blessing. It doesn’t need to be wasted foolishly over things that have logically no consequence at the end. The habits of extravagance are responsible for the financial demise of many. You know that not everything upon which you spend money is worthy of your expenditure.
Therefore, in Tyson’s words, never go for spending on things that are not essential for sustenance because first, the extravagance will swallow your income and the. The future debt will wait for you right at the doorknob.
Conclusion
Personal Finance for Dummies is a book that teaches you everything about financial management. However, all you need is your personal interest which will help you to grow financially. This is because there is no progress if you are not practically able to take a step in the financial domain.
The author is a software engineer by profession. Writing and reading both works as his prime passions. As an engineer by profession, he understands the market demands and knows the irregularities of the financial world. Being a geek, he prefers financial independence and is active in writing on financial affairs for a very long time. While contemplating upon the changing financial scenarios, the topics of discussion fluctuate but his clarity in expression never fades.