Dollars and Sense

     Alexa Von Tobel is a financial guru who runs a web business( http://www.learnvest.com/) that offers a program to the masses to get themselves out of debt and on a firm financial footing.  Her basic advice, "You gotta have a plan."  Once you set up a 3-5 year plan, you employ Ms. Von Tobel's five financial principles:

Live by a budget
Prioritize debt repayment
Have six months of emergency savings
Start saving now for retirement
Negotiate your salary  (Huh??)


Ms. Von Tobel will share the basics for free, but you have to pay for a customized strategy to solve your individual financial mess.  A cynical person might say that the only person getting richer here is Ms. Von T.  

http://finance.yahoo.com/blogs/daily-ticker/5-keys-financial-success-142148289.html

     Another of Von Tobel's charges is that financial literacy is not taught in school.  At this point, I puffed up and felt proud of my Hainesport School primary education.  Mr. Seiler, Hainesport's seventh and eighth grade math teacher in the mid to late 1960's, taught us how to manage a checking account.  We learned how to write checks, record them, make deposits, deduct account fees, and balance our accounts.  If Mr. Seiler could have followed us to high school, I'm sure he would have taught us about household budgeting, financing cars, and buying houses.
     The last bit of information Ms. Von Tobel drove home was that 61% of Americans live from paycheck to paycheck.  She probably has dollar signs flashing in her eyes thinking about the sheer numbers who could subscribe to her plan.
     I have another suggestion.  Everyone should read a book titled The Wealthy Barber by David Chilton.  This very readable book will teach you pretty much everything you need to know about personal finance.  The book's main character asks his successful father for some financial pointers.  The father says that he learned how to manage money from the town barber.  He takes his son to the barber for a haircut and some pecuniary advice.  The son returns regularly for haircuts which also include a monetary lesson.  The barber covers Ms. Von Tobel's first four principles and much more.  He does not touch on negotiating salary, though.  I'm thinking that most of us don't have much room to negotiate in the salary department.              
     Along with money for college, I gave this book to my niece and nephews as a high school graduation gift.  June is approaching.  I suggest including a copy of The Wealthy Barber with your gift to the graduate.  It might be what keeps them from being in the 61%.