Cashing in on timely financial advice

REVIEWS BY STEPHANIE SWILLEY

Americans are the worst savers in the industrialized world, researchers say. The average American household has 14 credit cards with a monthly balance of $8,562. But in the wake of countless corporate screw-ups and the stock market nosedive, investors are wary of advice from brokers and CEOs. For a fresh look at personal finance, check out the down-to-earth, no nonsense advice in these four books. It's time to take charge of your budget and become a "committed born-again saver."

The Dolans dole out advice

Ken and Daria Dolan, the creators of the most popular syndicated financial radio talk show in America, cover every aspect of family finance in Don't Mess With My Money: The Dolans' No-Nonsense Lifetime Money Plan. The Dolans, who have been married for more than 30 years, offer smart, easy-to-follow wisdom on 200 topics—and they don't hold back their opinions. ("We hate the word ëbudget.'" and "We HATE model-portfolio percentages.") The authors reserve special scorn for debit cards: "They should be used only by people who are so undisciplined they can't possibly handle credit cards." Even if you don't agree, the candid advice is refreshing.

The Dolans show families how to create a saving "success plan" (the concept formerly known as budgeting) and say both spouses should know and understand their investments. Monthly "board meetings" allow couples to talk about where the money is going and vote on major purchases under consideration. The Dolans have more good tips on bringing up money-savvy kids. They suggest teaching activities and weekly allowances based on age ($3 for ages 6-8 and $30 for 16-19) and cover how to choose and set up tax-deferred college plans.


Talking taxes

Albert Einstein once said, "The hardest thing in the world to understand is income tax." And if Einstein himself couldn't decipher the tax code, where does that leave the rest of us? If you have tax troubles, the first book in the new "just plain smart" Advisor Series from H&R Block, The Tax Planning Advisor, should clear up some of your problems. It gives taxpayers straightforward, practical guidance on everything from how long to keep tax records (six years) to common audit triggers (big deductions for charitable contributions and home office expenses).

H&R Block will help you cultivate a year-round tax mind-set so you can identify ways to save January through December. Admittedly, talking taxes can be dry, but The Tax Planning Advisor spices things up with scenarios from real-life tax situations and quick tidbits in sections such as "Fast Facts," "Smart Steps" and "Plain Talk." The H&R Block expertise is key in deciphering deductions, because 2.2 million people overpay each year by claiming the standard deduction rather than itemizing. Wouldn't you like to have an extra $438 (the average overpayment) rather than giving it to Uncle Sam?

    The Tax Planning Advisor
    By H & R Block
    Random House Reference, $14.95
    244 pages, ISBN 0375720170

Love and money

Money and emotions are intertwined, and Conscious Spending for Couples: Seven Skills for Financial Harmony by Deborah Knuckey covers both topics with a unique blend of practical steps and psychological insights. The author of The Ms. Spent Money Guide explores how men and women feel about money, examines their different attitudes and beliefs, and lays out three rules, seven skills and four decisions to help balance the "mine, yours, and ours" goals.

Conscious Spending is an interactive book that uses practical quizzes, checklists and other resources to teach couples to become "conscious spenders." Knuckey's seven skills include planning together, getting help when you need it and creating a simple financial structure that both parties can follow. Then couples can tackle the four decisions: where you live, what you drive, whether you have children, when you retire. Knuckey stresses communication, noting that money has become a taboo topic that many people find hard to discuss, even in an intimate relationship. A perfect book for newlyweds or any couple mired in debate over whether to spend or save.


Say goodbye to debt

Author Deborah McNaughton shares her own personal experience with debt in The Get Out of Debt Kit. She owed $300,000, and soon after canceling her family's medical insurance, her daughter needed emergency brain surgery. After much stress and worry, she triumphed over the bills by negotiating with creditors and is now eminently qualified to share common sense advice on what to do when you feel overwhelmed by debt.

The Get Out of Debt Kit deals mainly with credit card debt, because Americans owe about $700 billion on their charge cards. The book includes worksheets for recording expenses, budgeting and keeping track of credit card balances. McNaughton advises paying off low-balance cards first and explains how to deal with harassing creditors. McNaughton isn't anti-credit. In fact, she strongly recommends having two or three open accounts in your own name, even if you are married. Just don't use them if you can't pay off the balance when the bill comes. "Remember the ideal is to have credit without debt," she says. An important concept that's easy to forget.


Getting a grip on your golden years

A regular on National Public Radio's Marketplace Morning Report, Jordan Goodman wants you to know that it's OK to dream big for retirement. In fact, stop reading and take a minute to visualize your best-case scenario. Think golf, grandkids and great vacations. Now ask yourself two questions: When do you want to retire? How long do you expect to live? Those are two big pieces of the retirement puzzle, and Goodman's Everyone's Money Book on Retirement Planning is a good place to start finding the answers.

Whether your want to save for your children's college fund, understand real estate investing or create a great financial plan, the six titles in Goodman's Everyone's Money Books series cover a multitude of financial topics in a concise, readable format. It's easy to feel overwhelmed by all the different options for your money, but Goodman devotes each book to explaining a single topic and never sends the reader into information overload. He compiles a great list of resources—worksheets, Web sites, newsletters, consumer groups and government agencies—to help you put the advice to immediate use.

Do you still have that dream of retiring at 50 and moving to Tahiti? Good, because you'll need it to recover from the shock of calculating how much moolah it will take to finance those golden years. Wisely predicting that most Americans come up short in the saving department, Goodman gives tips for playing catch-up in Retirement Planning. Whether you're self-employed, contributing to a 401(k) ("the greatest thing since sliced bread") or hoping for a pension, you need to understand your choices and responsibilities. If you want to retire in style, dream big and start planning today.


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