The Only Investment Guide You’ll Ever Need– Book Summary
PART ONE: MINIMAL RISK
In Part One Of The Only Investment Guide You’ll Ever Need gives ways on how to save money, tax strategies.
A Penny Saved Is Two Pennies Earned
Some ways to save money given in The Only Investment Guide You’ll Ever Need by Andrew Tobias includes;
Fly now, pay now. The simplest, safest, most sensible way to earn 18% or 20% on your money is to pay off your credit cards. Not having to pay 18% or 20% is as good as earning 18% or 20% taxfree! risk-free! It’s folly to pay credit-card interest if you can possibly avoid it.
More than 60% of credit-card holders fail to pay them off within the grace period. In fact, many people keep money in a savings account, earning 1% or 2% after tax. At the same time they are paying 20% to buy on time. They’re earning 2 cents on each dollar with their left hand while paying out 20 cents with their right. That’s a loss of 18 cents on every dollar. Credit cards are great for convenience, but terrible for borrowing. If you have to use credit cards pay it on time or cut them up; or—if you can pay on time—make your credit cards pay you. Use cards that give you cash back at the end of the year or frequent-flier miles or some other goodie. Check out bankrate.com, to find out best deals.
Rent cars cheap. If you are going on a long road trip, consider priceline.com (yet again) for a bargain-priced rental to spare wear and tear on your own car, and so that in the event of a breakdown you’re not stuck 600 miles from home.
Vacation cheap– here priceline is your best friend.
Don’t finance your car. As with credit cards, not paying 5% on a car loan is as good as earning 5%. Risk-free! Tax-free! Can’t afford to buy a car for cash? Well, then . . .buy a used car.
Buy a used car. This is best way to save money if you want to reach your goals quickly. It could be really depressing to have to do this. But when it’s your decision, to reach your goals, that’s another story. And it will save you thousands of dollars. That “new-car smell” is the most expensive fragrance in the world.
Buy an economical car. Doing so ensures you save a lot of dollars on insurance, gas, maintenance as well as purchasing price. In all, the financial decision be “automotively frugal”
Finance your car (if you must) with a home-equity loan. One way to pay off your credit-card debt and your car loan is to borrow against the equity in your home, if you own one. You want to borrow as little as possible, as cheaply as possible, for a short time as possible
Stay cheap – avoid expensive hotel use expedia, orbitz or hotels.com to get cheaper hotels.
Resist the temptation to lease. – First off, it generally means a new car, so you’re paying for that smell. Second, it means financing almost the entire thing—but with a hidden interest rate.
Don’t be fooled by 1.9% financing. When you see one of those deals offering 1.9% financing—or “cash back” stuff—take the cash. Otherwise, you’re buying a $19,500 car for $21,000, albeit at a good low rate of interest. It’s just one more way to lull you into paying more than you should.
Drive smoothly. Rapid accelerations are murder on gas mileage; unnecessary braking converts energy, through friction, to heat. “Good driving habits,” properly inflated tires, and a well-tuned engine can save as much as a third of a family’s gasoline bill.
Beat traffic. That saves gas.
Skip insurance you don’t need that’s including life insurance for children (buy only if your child is a movie star and you depend on his or her earning power)
Phone free– It’s free when calling other Skypers, nearly free calling traditional landlines and cell phones—all over the world.
Use the Internet. If used well one can get cheaper stuffs almost on everything from insurance to clothes.