Debt!

[newyorkblork]

Does anyone have some reliable books or other learning tools that they use for financial planning? I have no finance background, so nothing too advanced, but wandering from thread to thread asking other, similarly clueless, pre-dents "How do I handle my debt!?!?" doesn't seem to be the way to go.

---

Members don't see this ad.

 

[The Hammer]

Does anyone have some reliable books or other learning tools that they use for financial planning? I have no finance background, so nothing too advanced, but wandering from thread to thread asking other, similarly clueless, pre-dents "How do I handle my debt!?!?" doesn't seem to be the way to go.

I married an MBA so I don't know if I can help you but you really should read "Rich Dad, Poor Dad". It will really help you to understand the differences between good debt and bad debt. Also I would think that your school's financial aid department should be able to provide you with some financial counseling or at least point you in the right direction

 

[SugarNaCl]

I have found in dental school, you will meet a lot of people who complain of the high cost of education, yet have parent footing the bill. Personally, I'm in your situation... kind of. I am married but we just make enough to get by. First year cost 36K and I took out 42K, 2nd was 44K and I took out 46K, 3rd was 52K and I took out 58K and next year will likely be 58K and I will take out 65K or so. This is a HUGE 211K!!!! PLUS INTEREST!

That said, the best budget technique in my opinion is just writing down or monitoring your finances. Personally, I didn't read any books. I charge nearly everything on one credit card so I can keep track of my purchases (too lazy to write it down). The end of the month, I pay it off in full. Easy to see how much you are draining and if you need to cut back.

Good luck.

 

[Daurang]

A better book to read and live your life by is "The Millionaire Next Door."

The book mentioned doctors and dentists as typically among the under accumulator of wealth due to their high consumption lifestyle despite their very high income. Most of the millionaire households that is profiled and analyzed did not have the extravagant lifestyles that most people would assume.

 

[newyorkblork]

Hmm. Thanks for the replies, people! Personal finances aside, though, I was hoping for something a little more mathy. The psychology of making or keeping your money... well, it's great these people found a way to turn a buck selling that sort of thing to hopeful Americans, but after reading a few pages of RDPD, I definitely wouldn't buy it.

Does anyone have a suggestion that would get a little more into the actual mechanics of debt - explaining compound interest, different types of loans and how they work, etc.? Or do I have to ask bankers themselves? I don't know where to begin, even with the rudiments like "How to take out a loan", "Where to look for a loan", "What to look for in a loan", "How to figure out which loan is better", etc...

 

[Daurang]

fatwallet.com finance forum.

 

[The Hammer]

A better book to read and live your life by is "The Millionaire Next Door."

The book mentioned doctors and dentists as typically among the under accumulator of wealth due to their high consumption lifestyle despite their very high income. Most of the millionaire households that is profiled and analyzed did not have the extravagant lifestyles that most people would assume.

I've read both. They are both good books for learning financial responsibility. I like the Millionaire's term "Financial life support" for parents supporting the life styles of their adult children.

 

[Mcglock]

Definitely read The Millionaire Next Door.

 

[Buckethead]

Definitely read The Millionaire Next Door.

Could not agree more; fantastic book that changed the way I think about money. Also, pay off your debt as fast as reasonably possible, and limit your debts to only your dental school loan and (potentially) your practice purchase loan. Interest is a killer and is one of the few expenses that doesn't actually help you generate more money at all. Over the course of a loan's life, interest is an astronomical waste of money that could have otherwise gone into money-producing endeavors like investments or bonds. Resist the urge to buy beyond or even at your means (this means no expensive home or car) and instead live below your means, and you can't help but become wealthy and financially independent if you invest the money you will have saved.