One of my new year's goals was to become more financially literate; this book is a great start.
Dates Read: 18/03/2023 to 12/05/2023
Star rating: ⭐⭐⭐⭐
Word to describe: Savvy
Genre: Non Fiction
I made the unlikely New years resolution of becoming better with money (and if my experience is giving any indication I am terrible with money). My credit card balance often hovers at zero - or in the negatives! - and I am checking my bank balance like a stalker making sure I don't become overdrawn. Money is a difficult subject. I was brought up in a family that didn't discuss money in a positive light. There were worries about bill affordability and the pressure of three teenagers wanting the hottest presents for birthdays and Christmas always added stress onto my parents already heady-loading money worries. Now that I'm older the topic of money is spoken about more often with my parents, but it is still in a negative limelight and still focuses on the affordability of necessities like heating bills, mortgages, and food. The UK is currently in a horrific recession and affordability for most families has become a number one priority.
I work full-time and make a decent enough wage that I should be able to afford my wants and needs. However, the rising cost of living means work travel is expensive and the idea of savings is a fleeting dream. I picked up this book as a solution to these problems. I want to be able to pinpoint why my spending habits, though short and few, are still leaving me with little money between each paycheck. What They Don't Teach You About Money is a no-fuss guide to learning the money basics. Interest rates, reasons for and against credit cards, to understanding how the way we handle money is cemented from our childhood experience with money, this book touches on all the must-read topics to ensure a successful and plentiful money future.
The one thing I particularly loved about this book is how the title perfectly encapsulates the lessons that are learned whilst reading. There were numerous points that I had no clue about. I had no idea that paying the minimum amount of any debt payment, whether this is a credit card or paying in an instalment means you can spend thousands more than the initial cost if paid upfront. To put this into context - only paying the minimum amount means buyers are only covering their interest rate and never actually touching the debt (I know it sounds insane). Another amazing point brought up was the benefits that are unclaimed by UK citizens, usually because people are too proud to ask for help or they are unaware that they are even eligible. It's maddening.
The carefree approach to introducing money basics (investing in crypto anyone?) makes this book incredibly easy to read and understand. My biggest pet peeve with non-fiction books is the heavy focus on jargon that makes the book entirely redundant if you are new to the topic. Claer Barrett takes talking easy money to a whole new level. Each point is broken down and explained with further recourse material and studies. Influenced by her personal life Claer Barrett uses several examples from her own poor experience with money in her youth to show readers how no one is bad with money they are simply unaware of the help they can receive and how to properly budget and plan for expenses.
There are numerous lessons I have taken from this book. The first few chapters gave me an insight into my money personality (hello frivolous spending for dopamine and reruns of the anxiety show) and how that can impact my ability to save and prepare my finances for the long run. It was certainly an interesting adaptation of personality types and it genuinely helped with taking in the information aimed at each personality type. The latter chapters gave fantastic guidance on budgeting, how to get out of debt, and how to begin investing (although not a keen interest of mine it was intriguing to read about).
One chapter that stood out with an undeniable level of brilliance was the chapter on mortgages and buying a first property. Being something that I am interested in doing within the next five years it was good to see what to do and what not to do when purchasing a first home on the market. My favourite unknown tip is buyers insurance - I would have never even known about it without this book!
Despite all my rambling, I can offer one last comment on this book. If you are looking to learn more about finances and what help is available to you with guides on saving money and several other things - this book is perfect for you.
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