Book review: I will teach you to be rich Part 2

Chapter 2 and 3: Optimize your credit cards and beat the banks

Use your credit cards to give you thousands of dollars and perks and rewards instead of your credit card companies using you for money (by not paying off your card every month). I agree with that, I have been flying business on points for years. Due to my health, I would not be able to travel long haul without being able to lie flat, so I appreciate being able to take advantage of that. And spending tens of thousands of dollars just for flights goes against my spending ethos. 

In these chapters, he talks about the fear and anxiety around debt that the media thrives on. But there is some debt that will help you accelerate your rich life. One example is student loans, as on average give you more monetary returns over a lifetime (not to mention the personal returns, such as making friends, and being exposed to new ideas). But honestly I didn’t find this chapter that helpful since credit card debt is not a problem for me. I did find it interesting that there’s a statistic that 70% of Americans carry a credit card balance. And the information about how evil some of the big banks are like Wells Fargo who opened accounts for millions of people without telling them resulting in $2 million in fees. We didn't choose them for our latest mortgage, maybe for good reason.

Chapter 4: Conscious spending: 

Conscious spending means you decide exactly where you’re going to spend your money and free yourself from feeling guilty about your spending. It makes total sense to me to spend money on what brings you happiness and to cut the spending on things that don’t add value to your life. For example, I subscribed to the Wall Street Journal pretty much because I wanted the points on offer, and they are banking on you forgetting you have a subscription (probably most of these subscription services do). It's only 4$ a month but am I getting 4$/month worth of enjoyment or benefit from it? 

In this chapter, he says if you’re meeting your financial goals including funding your 401(k) and Roth IRA and maybe even a taxable investment account, you don’t have to feel guilty spending on whatever you want. I have a big issue with not feeling guilty spending money, I'm sure it has to do with my immigrant mentality upbringing. I still remember how my father would brag about how he bought his shirt he was wearing at Sears for 50 cents. But there is also no point to not enjoying your life to the fullest and denying yourself or feeling guilt when you have the means. I really liked "Die with Zero" by Bill Perkins who talks exactly about this - enjoying your money while you can. It turns out the net worth of many saver types of  people, is highest when they die (due to compound interest). But when you are dead or really old, you can't enjoy activities like you did when you were young. And also, you may be leaving money to your children who are also past their prime and the phase when the extra money could have benefited them. I will try to review this book as well on this blog.