Your Money Ratios book review and giveaway

January 19, 2010

in books,money

As a personal finance blogger I get sent many books, 1/2 of which completely put me to sleep (or maybe that’s the late night blogging?). I received Your Money Ratios: 8 Simple Tools for Financial Security and was expecting a very dry read, but I found Charles Farrell’s writing style accessible, and more importantly the information in the book was interesting to me. (might be the math geek in me)

Your Money Ratios: 8 Simple Tools for Financial Security is about giving you tools to gauge how you are doing financially. Using the 8 tools Charles explains you can find out whether you are saving enough for retirement, spending too much on housing, and insured well, among other things.

I found the book to be very useful for providing me with an idea of where we “should” be. I do take some of the recommendations with a grain of salt, though. 2 times your income for housing is a great goal, but unrealistic in some areas of the country.

I also felt that the short paragraph on credit card debt which basically said, “Don’t do it,” would leave a reader who is new to personal finance in the cold. That’s why I would recommend this book for those who are already on the path to mastering their personal finances.

I would also suggest that you take the recommendations with a grain of salt. If you are “supposed” to have $100,000 in a retirement account, but only have 1/2 that, it should encourage you to save more, but not panic. You may choose instead to work longer, increase your earnings, or live off less as you age.

I did like that the back of the book had a section for “special circumstances,” such as couples of varying ages (more than 5 years difference), and a spouse who doesn’t work full time.

The book is very straightforward, which I like, but I would remind anyone reading it that personal finance is often personal. So while you may not be saving the 10-12% of your income that Charles recommends, you shouldn’t give up on the ratios altogether. The Money Ratios are a tool to help you understand your financial situation, and help lead you to financial security.

your money ratios

The publisher (Penguin Group) is offering a copy of the book to one lucky reader. (US/Canada only)

To enter to win: Leave a comment telling me 1 aspect of your personal finances you are working to improve this year. One entry per person.

Good luck!

For more info on Charles:
Read Charlie’s blog on CBS Money Watch.com
Kelly

© 2010, Whalen Media LLC. All rights reserved. To repost or publish, please email Kelly.

About Kelly


Kelly Whalen is the founder of The Centsible Life, a blog where motherhood and money meet. Her goal is to help readers live well on less. Kelly is a mom to 4, and loves that she can stay at home with her kids, and still pursue her passions for writing, personal finance, and social media. You can often find her on twitter and Facebook talking money and motherhood.

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  • Pingback: Charles Farrell, author of Your Money Ratios, on tour January 2010 | TLC Book Tours

  • alison

    We are hoping to save some more money towards a down payment on our house, and of course get rid of our debt!

  • alison

    We are hoping to save some more money towards a down payment on our house, and of course get rid of our debt!

  • Sheila

    I want to make sure I have account numbers, passwords and other financial information written down so that my husband has access to that information. I take care of all the finances so he has no idea where the money is or how to access the accounts.

  • Sheila

    I want to make sure I have account numbers, passwords and other financial information written down so that my husband has access to that information. I take care of all the finances so he has no idea where the money is or how to access the accounts.

  • Jane H.

    Build savings first, then pay off my credit cards – I'm in graduate school and there's no point in paying everything off if I have no safety net to fall back on!

  • Jane H.

    Build savings first, then pay off my credit cards – I'm in graduate school and there's no point in paying everything off if I have no safety net to fall back on!

  • http://sweatingthebigstuff.com Daniel

    I am trying to save MORE. I save plenty but I never am able to say "I can't afford that." I'd like to pay off my student loans faster (at a very low 2.8%) but struggle to send that check in the mail instead of let the money sit in my 2% savings account.

  • http://sweatingthebigstuff.com/ Daniel

    I am trying to save MORE. I save plenty but I never am able to say "I can't afford that." I'd like to pay off my student loans faster (at a very low 2.8%) but struggle to send that check in the mail instead of let the money sit in my 2% savings account.

  • KristyT

    We just cleared out our credit card debt, so this year we're going to focus on (re)building our savings. Emergency fund, then college tuition (husband is currently enrolled), then computer-replacement fund.

    ~Kristy

  • KristyT

    We just cleared out our credit card debt, so this year we're going to focus on (re)building our savings. Emergency fund, then college tuition (husband is currently enrolled), then computer-replacement fund.

    ~Kristy

  • Chris

    Saving seed money to start a business.

  • Chris

    Saving seed money to start a business.

  • http://futurehousefarm.blogspot.com Meg

    We are working to figure out a balance between savings, fun stuff, and debt payment. Our only debt is a student loan and mortgage payment, but we also have some home improvement projects that need to be completed (we're counting this as fun stuff). We also would like to keep building our emergency fund … maybe we need to concentrate on one project at a time, here.

  • http://futurehousefarm.blogspot.com/ Meg

    We are working to figure out a balance between savings, fun stuff, and debt payment. Our only debt is a student loan and mortgage payment, but we also have some home improvement projects that need to be completed (we're counting this as fun stuff). We also would like to keep building our emergency fund … maybe we need to concentrate on one project at a time, here.

  • Pingback: TLC Book Tours TOUR STOPS for the week of January 18th-22nd | TLC Book Tours

  • http://tlcbooktours.com Lisa Munley

    Great review, Kelly. Very fair and balanced. I'm glad you enjoyed it and didn't find it too dry! Thanks so much for the time you put into reading and reviewing Your Money Ratios. We really appreciate it!

  • http://tlcbooktours.com/ Lisa Munley

    Great review, Kelly. Very fair and balanced. I'm glad you enjoyed it and didn't find it too dry! Thanks so much for the time you put into reading and reviewing Your Money Ratios. We really appreciate it!

  • Brittany

    Rebuild the emergency funds.

  • Brittany

    Rebuild the emergency funds.

  • Ernest S.

    I am really trying to stick with my budget and build my emergency savings. In the past, my emergency savings seemed to always rescue my budget when I would have a shortfall. Starting this month, I've budgeted it much finer detail, so I'm hoping that it will keep on course to build my emergency savings.

  • Ernest S.

    I am really trying to stick with my budget and build my emergency savings. In the past, my emergency savings seemed to always rescue my budget when I would have a shortfall. Starting this month, I've budgeted it much finer detail, so I'm hoping that it will keep on course to build my emergency savings.

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