SMART IS THE NEW RICH: If You Can't Afford It, Put it Down

Your personal economic recovery is at hand, but to succeed you’ll need to master the new rules of personal finance to rebuild your wealth again, says CNN’s Christine Romans in SMART IS THE NEW RICH: IF YOU CAN’T AFFORD IT—PUT IT DOWN (Wiley, October 2010; $24.95; Hardcover). The good news is that these new rules aren’t so new at all: They are the time-proven rules forgotten in the financial excesses of the past two decades. Even better, anyone can master the new rules. Romans says your time for prosperity has come again.

Everything has changed – the rules on the credit cards in your wallet, the way you pay for college, the security on the job, everything. With so much out of your control, Romans zeroes in on what readers can control in this New Normal. SMART IS THE NEW RICH shows readers how to live within their means and with less debt and at the same time, not go without. Ultimately, this new lifestyle will make consumers less vulnerable to the vicissitudes of the economy and the marketplace and better prepared for a rosy retirement.

SMART IS THE NEW RICH guides you through the New Normal in personal finance and reassures you that, yes, smart decisions today will help you build and prepare for retirement. Roman covers a vast array of issues—including job-hunting, debt, taxes, home  ownership, savings and investment, credit cards, and small businesses and entrepreneurship—and how they affect you and your future happiness.

Among the many recommendations SMART IS THE NEW RICH suggests:

• If you don’t need it, don’t buy it. If you can’t afford it, put it down. It’s as simple as that. Learn the three key questions you must ask anytime you part with your cash to make a purchase.
• Think of money like nutrition. Prolific and random spending is the financial equivalent of eating junk food. It might feel good at the time, but it hurts you in the long run and then limits your options later in life. Spend prudently, save wisely and you’ll be financially better-off in the long run—and happier, too.
• Always save first. SMART IS THE NEW RICH helps you figure out how much to save and more importantly, how to find the money in your budget. Discover dozens of ways to put away more of your hard-earned income and make it more productive.
• Become debt-free in three. If you’ve got credit card debt, it’s time to set the goal to be credit card debt-free in three years (or less). Learn what steps you need to take to make credit a powerful wealth-building tool instead of a crushing financial burden.
• Don’t deny yourself. Thankfully, this is not the Great Depression and we are not Depression consumers and don’t have to be. Smart consumers don’t live extravagantly. They know the difference between needs and wants. The key is to know what you can live without.
• Find, keep and excel at your job. Face it: it will be along time before all those jobs come back. SMART IS THE NEW RICH outlines which college majors have the most jobs and best pay, which careers offer six-figure income and don’t require a college degree, and which fields offer the best choices for retraining. You need to be smarter than ever to survive in today’s labor market. 

At the end of each of the ten short chapters, there is a summary called “The Payoff” for a quick read if you want the salient facts, the best advice, and a sharp perspective quickly. An appendix lists dozens of websites that can help you find the information you need to further help you turn your finances around. 

“My hope,” says Christine Romans, “is that SMART IS THE NEW RICH doesn’t end for you on the last page, but instead starts a running conversation between you and your spouse, your kids, and your parents about how to smartly prepare for a rich future.”