Despite Amazon’s best efforts to delay our Christmas festivities, one of the presents I received was a copy of Jim Cramer‘s “Stay May For Life” Apparently he’s an investment guru whom my mom has been following for a while. Despite the criticisms he’s received (see the Wikipedia link above) I’m inclined to hear what he has to say. Why not, right?
I’ve decided to share some of the highlights of his book as I read through it.
In chapter two, he mentions three important things:
- Create a budget for daily, monthly, and annual expenses.
Okay, so far, I’m with him on this. Although I’ve rarely budgeted my personal expenses, putting together a budget is something I’ve wanted to do for a while now, so this seems as good an excuse as any.
- Carry health insurance.
This is also a timely piece of advice. Given that we are seeing another double-digit (18%) increase in health insurance premiums this year, I asked my wife to investigate alternatives such as self-funding insurance or a health savings account. Unfortunately, it appears that the best course of action is to pay somewhere around $800/mo. for health insurance, with a $10,000 deductible. Crisis? Maybe. Ridiculous? Definitely.
- Carry no balances on credit cards.
This one’s a no-brainer for me. I can remember once in my life when I carried balances on a credit card intentionally, and that was to get me into college when I showed up to find that financial aid hadn’t come through as planned. I paid them off within a year, but other than that, I am well aware that carrying 20%+ interest rates for a short-term cash loan is insane. If you need short-term loans, seek out your local credit union. I know, (from experience, as I’m a member of my local credit union‘s board of directors) that they are there to help you.
Assuming the book continues to hold my attention, I’ll post updates as I read through it.