The Little Book of Main Street Money: 21 Simple Truths that Help Real People Make Real Money
Posted by Stephen Cline on January 29th, 2010
Review
Street Smart Tips for Main Street Content from author Jonathan Clements 1. Don’t pay an insurance company to shoulder risks you can afford to shoulder yourself. 2. To make it easier to amass enough for retirement, aim to start saving no later than age 30 3. Make it a point to sock away tax refunds, year-end bonuses, overtime pay, and any other extra money you receive 4. Mentally divide your portfolio into growth money and safe money – and expect a rough ride fr… Buy The Little Book of Main Street Money: 21 Simple Truths that Help Real People Make Real Money at Amazon
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In a sense, Jonathan Clements’s new book was painful to read. Clements was the long-time personal finance columnist for the Wall Street Journal, and he has a real knack for explaining investment stuff. He wrote nearly 1,000 columns for the Journal and he’s forgotten more about personal finance than many brokers ever knew.
Mainstreet Money, 21 Simple Truths that Help Real People Make Real Money is an excellent book. I recommend it highly to anyone who needs a basic finance guide, or those who want a refresher course. In Clements’s usual style, it’s easy to read, understandable, and helpful. I’ll add this to our website’s recommended reading list.
Clements once famously noted that there are only seven real stories in personal finance, and he cites them in his introduction. I won’t list them all here, but one is “simplicity is a great financial virtue.” I agree with his other six, too, but as a practicing advisor, this one stands out as genuine wisdom. There are few absolutes in economics or finance, but that comes pretty close!
It tracks that his 21 Simple Truths follow this theme. He tackles everything from portfolio construction to the merits of saving. Each chapter illuminates a different topic, and offers explanations, ideas, and suggestions. All in that comfortable and engaging style he’s known for.
I especially like his tenth chapter, where he offers ten reasons why it’s so tough to beat the market. This is heresy in many hallowed halls of Wall Street, but he does a nice job of explaining why so many smart people abandoned that game. “The harder you try to beat the market, the more likely you are to fail, thanks to the investment costs involved.”
Why, then, was my reading painful? Another simple truth is that every thinking adult should already know much of this stuff. Seriously, folks, this isn’t nuclear physics and these truths aren’t obscure. These are the pots and pans of personal finance and every home should already have a basic collection. It just hurts to acknowledge (again) that – as a people – we’re rich in things, but poor in basic money knowledge.
People should already know the merits of diversification. They should already know that every investment (every single one) has risks. They should know that tax deferral is smart and that today’s retirement can last many decades. If they don’t, then this little book makes those powerful and productive points. And, in many ways, Clements makes them and others better than anyone else could. He has a gift.
I like Jon Clements and I recommend his book highly. I just wish that it wasn’t necessary.
In his new book, The Little Book of Main Street Money, Jonathan Clements provides readers with solid financial information in an easy-to-read writing style that’s been polished over years of writing his columns for the Wall Street Journal. The book covers investing and financial matters from A to Z in Jonathan’s usual clear and concise manner.
While this is not a “get rich quick” book, it is, nevertheless, a “get rich the old-fashioned way” book. Jonathan provides solid common sense information that’s too often overlooked or ignored by investors.
This book is a must read for young investors and it’s a great refresher course for all investors. Give a copy of this book to your kids and grandkids, and don’t forget to keep a copy for youself.
This is Jonathan Clements’ best writing yet, and I’ve been following his financial advice since 1992. Out of all the works of respected financial authors I’ve read, none have proved to be as provoking or as true over the years as his. There is something about his clear-headed approach and British wit that inspires me to keep doing better. (It’s one thing to know what to do; and then it’s a second thing to actually do it. This book helps the reader in both.) The bottom-line is that reading this book helped me firmly acknowledge my true priorities (financial and otherwise) and inspired me to sally forth with the gumption to stick to them. The book also clears up the thorny financial questions a typical investor has. I am giving copies of this book as gifts to people I care about, and I recommend it to everyone who wants to get ahead financially and otherwise. And after you read this book, you’ll see clearly what the “and otherwise” means in relation to your finances.