The Money Coach’s Guide to Your First Million is written by New York Times bestselling author Lynnette Khalfani. Khalfani knows all about the struggles of wealth and debt, having herself racked up (and then repaid) over $100,000 in credit card debt in three years! Her book is the first step in mentally preparing yourself to have the mindset of a millionaire.
The premise for The Money Coach’s Guide to Your First Million is simple and straightforward. The first important points are savings and budgeting. Nearly every financial author agrees that you have to know where your money is going in order to change how it is spent. Khalfani has specific instructions regarding writing out personal goals and creating a Financial Policy Statement- a statement that reflects your beliefs about money and your promises to yourself and your family regarding your changing attitude toward it. Khalfani also warns against her list of “don’ts”- don’t let laziness, procrastination, wasting money, ignorance, or lack of discipline sabotage your financial goals. Like a professional athlete, Khalfani suggests you practice daily discipline when going over your finances and working toward your goals
After you have discovered how much money you actually have and taken the steps to budget for savings and emergencies, Khalfani suggests you tackle any debt you have. The first step to getting out of debt is being totally honest with yourself. Knowing specifically how much debt you have is hard for a lot of us to own up to. We keep those numbers buried in the back of our mind for a number of different reasons, but need to let them out for one million reasons.
The Money Coach’s Guide to Your First Million also takes time to explore WHY you have so much debt and helps you come up with ways to curb your spending or save enough to be able to buy the things you want straight up, without having to borrow. Khalfani also talks a great deal about your credit score and credit history, and the way it directly impacts almost every aspect of your life, from your house payment to your insurance premium to helping or hindering you from getting a job or raise. Tackling credit issues is a tough issue for most Americans, but again, Khalfani says that it is a must if you are serious about getting out of your financial rut and moving toward your financial goals.
Finally, after you have a decent budget and now a matching great credit score (with little or no debt), Khalfani talks about different types of investments- real estate and the stock market. Both of these words are almost taboo right now, but Khalfani makes good points for both. We all know these markets won’t be down forever. If you aren’t interested in investing right now (or are scared to do so), listen to her advice and implement it in the future, when the markets have rebounded and you are more comfortable.
The Money Coach’s Guide to Your First Million is a great read for anyone who is serious about changing their financial status. Don’t read this book if you want a quick fix, most of these points really make you look at your financial life and make tough decisions, but the reward will definitely be worth it!