Resolve to fix your financial woes

REVIEWS BY STEPHANIE SWILLEY

Are January's credit card bills an unwelcome reminder of Christmas excess? If so, several new guides can help you take those sometimes painful first steps on the path toward financial stability.

Tough love, tough work

In The Total Money Makeover best-selling author and radio talk show host Dave Ramsey provides tough but achievable goals for the "fiscally flabby." The first five chapters are a wade through Ramsey's typical rants against denial (things can't be that bad, can they?) and his biggest enemy—debt. Then readers are introduced to his "baby step" program. Step one is socking away $1,000 cash for the inevitable rainy day, while step two involves a "debt snowball" that pays off the smallest debt first for a quick morale booster. Everything but the house must be paid off before putting away more emergency cash and investing for retirement. The next steps are starting an education fund and turbocharging your mortgage payments. Ramsey admits his plan is ambitious; he expects the first two steps to take at least two years. Waiting this long to start investing may not be a great idea, and his opposition to debt is sometimes unrealistic. However, dozens of followers share stories in the book of how Ramsey's no-nonsense plan has worked for them. His tough-love approach is perfect for cutting through excuses and may be just the push you need to whip your personal balance sheet into shape.


The laziest investors in America

At last, there's a how-to book for the "procrastinators, the financially challenged, and everyone who worries about dealing with their money." In The Lazy Person's Guide to Investing, CBS MarketWatch columnist Paul Farrell offers a low-maintenance mantra that is easy to understand and fun to read. He identifies three "lazy" portfolios—the Couch Potato Portfolio, the Coffeehouse Portfolio, and the No-Brainer Portfolio—that outperform the market. All three plans boil down to two basic concepts: manage your own money to save on fees and buy Vanguard index funds. Farrell includes a detailed explanation of how his lazy strategies work and outlines options for investors without access to Vanguard's funds. He also includes a handy list of more books for novice investors, but if you're buying this book, I doubt you'll bother.


For better or worse . . .

If family financial disputes are ruining your romance, then pick up a copy of The Family CFO: The Couples Business Plan for Love and Money. Financial experts Mary Claire Allvine and Christine Larson have created a clear and direct process to take the emotional turmoil out of money matters. First, convene a Board of Directors to define the family's goals, appoint a Cash Manager to handle day-to-day operations and name an Investment Manager to deal with debt and retirement planning. From there, the authors outline a five-step plan to take you through the process of financial decision-making. A lot of number crunching is required, but don't be discouraged—the book provides worksheets and tools. A rational approach to money problem-solving is worth the effort, and it just might keep you out of marriage counseling.


Sorry, wrong number

And finally, if you could use a little comic relief after facing up to your financial shortcomings, you'll appreciate the hilarious advice in JJ's Business Bullets. For example, consider these signs that you've picked the wrong bank:

• Backfiring ATMs
• "Remember, you're just a number" telephone greeting.
• Overdraft notices delivered on a brick through your living room window.

Vanderbilt business professor Fred Talbott (a.k.a. Professor Pinhead) aims his humor at the jerks of the business world—from cranky receptionists to wacky bosses. The perfect antidote to taking yourself (or your job) too seriously.


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