Karla Karcioglu, Contributor Ω
“Many young adults of today are better educated than their parents,” said Lise Andreana, author of No More Mac ‘n’ Cheese!: The Real-World Guide to Managing Your Money for 20-Somethings. “Education takes time. This means that today’s young adult is entering the job market later in life and more often is graduating with student loans and credit card debt.”
As a certified financial planner for more than 15 years, Andreana has helped more than 1,200 clients with their finances. She is a retirement planning expert who graduated from Sheridan College.
Published in 2011, No More Mac ‘n’ Cheese is a valuable book for young adults of any age from high school graduate to university graduate. The book is short and simple but it will help guide readers through the big financial decisions of their twenties.
The book explains to readers to consider finances thoroughly. It discusses the benefits of living at home, the reward-to-cost-ratio of post-secondary education, navigating the job market, total compensation, how to set goals, how to budget, calculating net worth, how to begin saving money, the differences between bad debt and good debt, investing, buying a home and how to manage relationship finances.
There are several accompanying exercises found on the book’s CD-ROM.
The book helps you consider how money spent in the past and present can dramatically impact your future.
For example, by skipping a $4 latte each day and adding another $1 to those savings, one would be able to save $150 a month. By year 10, at an inflation rate of two per cent, that saved money would amount to $32,000.
Student loan debt should not exceed half of your future annual income, according to Andreana. If you expect to earn $40,000 annually, you should not borrow more than $20,000 in student loans.
If you are earning $40,000 annually and are able to make monthly payments of $166, it would take you 20 years to pay off $20,000 at an interest rate at eight per cent.
“By establishing goals and developing a long-range strategy to achieve your goals, you will be amazed at the results that can be achieved in one short decade,” Andreana said.
The book is written to accommodate both Canadian and American readers with financial references to resources in both countries.
For an investment of $14.40 at Chapters Indigo, this book has the potential to save you money now that can amount to a small fortune in the future.