Today I’m reviewing The New Parents’ Guide to Financial Independence, a book by my fellow blogger Matt Becker from Mom and Dad Money. Full disclosure: Matt provided be an advanced review copy at no cost, but I don’t make a penny if you buy the book.
Financial Independence is a hot topic in the personal finance world.
However, outside of this tight knit community, many people confuse financial independence and retirement.
Luckily, people can become financially independent long before they retire.
Matt’s book explains just that, as well as how you can turn financial independence into a reality for you.
The first section of the book is the most inspiring.
Matt explains financial independence and how you can dream up your ideal financially independent lifestyle.
What’s great about this book is it doesn’t just stop at selling you the dream.
In fact, the dreaming part of the book is over rather quickly.
Matt then spends most of the book explaining how you get to the point where you can achieve the dream of financial independence.
Figuring Out How Much To Save
Investing is the main path most people take to achieve financial independence and Matt covers it very well in the book. However, before he even gets to investing, he talks about how your savings rate is easily the biggest factor in determining how soon you could become financially independent.
Once you realize the importance of your savings rate, Matt helps you figure out how much you’ll need to save to reach your goal. The process involves lots of variables, but he breaks it down step by step and walks you through it.
Picking investments is very important, but before you even go down that path you’ll need to understand the types of accounts you can hold investments in and in which order you should fund them. Luckily, Matt has this covered at the beginning of his investing section in much detail.
Next Matt covers what he considers to be the five fundamental investment truths, all of which I pretty much agree with. I won’t spoil them, though, you’ll have to buy the book to find out what they are.
These investment truths help you figure out what types of investments you should be investing your money in, but after this section he summarizes his thoughts on investing strategy. The summary isn’t short. He explains why he believes what he believes and how it works.
Eight Step Action Plan
Matt wraps up his book by giving you an eight step guide to putting your plan to reach financial independence in place. Since getting started on such a massive goal is well over half of the battle, this book and eight step plan help you figure out exactly what you need to do to get started.
Finally, Matt discusses that not everything goes according to plan. Your investments won’t provide an even return. In fact, your returns may look more like a roller coaster than a gradual climb. However, Matt shows us some great statistics to help keep things in perspective.
Who Should Buy This Book
Not everyone should buy this book, but first let’s discuss who should. Anyone who is new to the concepts of financial independence and how investing works should definitely consider buying this book.
Matt does a great job explaining many concepts that new investors find confusing. He even lays out some general guidelines so you don’t have to get stuck in analysis paralysis due to all of the investing options available today.
Who Shouldn’t Buy This Book
If you are obsessed with financial independence and already have a firm grasp on investing, this book may not be for you. While it provides a great foundation, there aren’t many advanced strategies and most of the book is spent explaining the very important basics of investing that you probably are already familiar with.
If you’d like to pick up a digital copy of Matt Becker’s book, The New Parents’ Guide to Financial Independence, head over to his site to purchase it today.
If you have any questions about his book, let me know and I’ll do the best I can to answer them. Additionally, I can always forward along any questions you have directly to Matt.