The Index Card: Why Personal Finance Doesn't Have to Be Complicated Hardcover – January 5, 2016

Olen and Pollack have written a quick easy to read book on personal finance. (This is ironic given that Olen previously wrote Pound Foolish, which lambast most of popular personal finance books.) In Pound Foolish, Olen criticizes personal finance gurus for overemphasizing financial gimmicks, such "The Latte Factor" or the "Dogs of the Dow." and financial advisors for selling overly-complicated self-serving investment and insurance products. After being so critical of other people's financial advice, one wonders what Olen would recommend people do with their money? Well in The Index Card, Olen joins with Harold Pollack (a social science professor, but not an economist, at the University of Chicago) to answer the question, "What should middle class Americans do with their money?"As the title indicates, Olen's and Pollack's answer fits on an Index Card. 1-Strive to save 10%-20% of your income. 2-Pay your credit cards off every month (and minimize other debt). 3-Maximize your 401(k) and other tax-advantaged savings accounts. 4-Never buy or sell individual stocks. 5-Buy inexpensive well-diversified indexed mutual funds and exchange-traded funds. 6-Hire a fee-based fiduciary (avoid commission-based financial salespeople). 7-Wait to buy only as much home as you can afford (remember homes are usually highly-leveraged investments with high maintenance costs). 8-Buy term life insurance, auto-insurance (especially liability), home insurance or renter's insurance, and disability insurance. 9-Support the social safety net (government programs, such as Social Security, Medicare, Medicaid, and student loans, because 96% of American depend on such programs for financial assistance, even though 40% deny obtaining help from the government.) 10-Keep doing the first 9.Much of this advice falls under easier said than done, but these are achievable goals for someone in a stable financial situation. The authors repeatedly tell readers how to take care of their money during good times, so that they will have money during bad times. The first principle, saving ten to twenty percent of your income will be difficult for people who have gotten used to spending what they make, which the authors acknowledge, but one should at least save as much as possible. Likewise with the second principle, payoff your credit cards every month, easier said than done, but the Olen and Pollack suggest that if you can't pay them off, then stop using them altogether. Psychologically cash is harder to spend than credit. Principle 3 harkens back to principle 1, save 10-20% of your income, only try to save as many pre-tax dollars as possible to reduce your taxes and you're less likely to miss what you never got. Principle 4 is simple, playing the stock market is like playing poker, unless you are exceptionally skilled and lucky (and rich) you will lose more often than you win. Instead, principle 5 suggest that you bet with the house and just try to match the market, since most stock-pickers and fund managers do worse than the market over the long run. The last two principles stress protection for disasters that are too big for you to self-insure with your savings. Finally, like staying in physical shape, staying in financial shape requires frequent repetition.Through trial and error as well as research, I have come to many of the same conclusions. Recently, I have been able to implement all ten principles. They work well for me, but I wish the Olen and Pollack had said more about costs that seem destined to set one back, such paying for college and home renovations. Nonetheless, I would recommend this book to recent high-school or college graduates just beginning their careers.P.S. I have taught college courses and published papers on the sociology of money. I have also obtained licenses to sell life and health insurance and mutual funds. Thus, I have been on both sides of the table.

I feel much more financially secure having read and used the advice in this book. This is a great read for newly independent adults who are just starting to save and later career folks who need to get their finances in order. I am just starting out in my first salaried job and I think this book has given me the advice necessary to set myself up for a secure financial future, buy this for every young person you know for their 23rd birthday or their college graduation!! I especially benefited from the investing and budgeting advice, and changed what my 401k is invested in based on the advice this book gave, and I am seeing better returns after 6 months.Anecdotes, subtle humor, and the occasional graphic made financial advice readable, comprehensible, and interesting. The Index Card is a must read for anyone who doesn't work in finance and wants to feel informed when making financial decisions.

This book as the title suggests is how to manage your finances in a simple way.from mortgages retirement accounts insurance. No need for fancy schemes or theories.

This book is a little gem. It's not the same recycled advice that can be found in nearly every article or most books about personal finance. It's written in a conversational tone and takes into account that most people don't inherit money or earn six figure salaries or live such an austere lifestyle that they forego every simple pleasure in life. It's a breath of fresh air in the stale personal finance advice realm. They don't give the ridiculous and impractical "pay off the mortgage while carrying zero consumer debt while saving four years worth of tuition for each kid while saving a million for your retirement" advice that is so disrespectful to average, hardworking Americans who deal with lagging wages and high health care costs and crazy high tuition and inflation in every area of expenditures. Excellent book and one I'll be buying and giving to others.

This book will empower you. Personal Finance is marketed to us with wild and entertaining stock-picking shows on Television and by the Big Banks as something that is complicated. And for us to just let these fancy-suited, power-tied "Financial Advisors" handle it. The vast majority of investors and retirees who use "Financial Advisors" at the big banks don't have a clue as to how these "Financial Advisors" are actually compensated (fees and commissions) let alone the tyranny of compounding costs on their life savings. Lured by "free lunches", "free seminars", and "free consultations" once you take out the higher expense ratios from the loaded Class A share funds, the portfolio turnover costs from jumping in and out of the market, the commissions, the taxes on the short-term capital gains, and inflation, investors are more often than not left with a portfolio that is far below the returns of the total stock market or S&P 500 no-load index fund. Thankfully, authors like Helaine have given us the tools to be more confident in making our own investment choices!

It's okay, mostly common sense topics that have been written and discussed extensively in the personal finance media. The book is well-wrtitten, evergreen, and provides excellent advice with anecdotes and facts to back them up. The index card concept is a bit of a gimmick. If you are looking for a first personal finance book, it is a worthy read. If you are looking for advanced topics, this is probably too elementary.It would be a good book to give to a young adult child--if you could get him/her to read it.

I’m from Brazil and I really liked the book. Of course that there are some things that doesn’t apply here (like the 401K account) but the ideia can adapted to similar services we have here. This is the first book about finances I have read that are not trying to sell finance products to you. Instead it gives you simple path to have a healthy finance life. Very recomended!

Für mich persönlich war nicht sehr viel Neues darin enthalten, weil ich mich vorher bereits in die Thematik eingelesen habe. Für Anfänger, die sich noch nicht wirklich mit ihren Finanzen beschäftigt haben ist es brauchbar. Es ist einfach aufgebaut, nimmt den Leser an die Hand und weist noch einmal auf Basics hin, die keiner wahrhaben möchte, die man allerdings braucht für stabile Finanzen.Ein Stern Abzug, weil das Buch nicht kritisch auf die Rolle des Staates eingeht und weil ungefragt suggeriert wird, dass Steuern/ staatliche Systeme allzeit und in jeder Höhe Berechtigung hätten, solange damit Anderen geholfen wird. Das macht in den USA ein bisschen Sinn (die Steuern dort sind je nach Staat niedrig, moderat oder hoch), allerdings nicht in diversen anderen Ländern, in denen Steuern weiter über dem internationalen Niveau erhoben werden um die Bevölkerung zu kontrollieren und einzuschränken, anstatt ihr zu helfen. Der Teil war mir also etwas zu einseitig.

Wish I had read this when I was younger

Excelente libro para gente como yo que no tiene ni idea de economía domestica

I was a Certified Financial Planner in a past life and like to buy one of these books every now and then. I am about 10 years from my own retirement now and thought it appropriate to update my knowledge. I have already bought one of these for my 23 year old son and his wife. Whether you are a Canadian or American, this book is applicable and where I would start. From there I would add Millionaire Teacher by Andrew Hallam and for Canadians about prior to being 10 years from retirement, get Daryl Diamond's Your Retirement Income Blueprint. Another eye opening book which got me thinking in a different direction was "Pensionize your Next Egg" by Moshe Milevsky and Alexandra MacQueen. Again another book that works regardless of what country you live in (that has government sponsored pensions). This book and Millionaire Teacher tell you all the things you should have been taught in school. They will get your children at any age off to a great start. If you really want detailed information, I also recommend (this is a Canadian version but the bulk applies conceptually to Americans as well) "Personal Finance" by Kapoor, Dlaby,Hughes and Agmad. This gets into real details on every aspect of financial planning and is great as a reference, not something you have to read from beginning to end all at once; more so as applicable.Getting back to The Index Card system, I am surprised I haven't seen a book like this offered before. It should have been out there a long time ago. The wisdom in this book is not ever going to be dated. This is a one size fits all book. If you have adult children, order a copy of this book for them.