Money Milestones

This month I would like to talk a little bit about the thought process behind my new book “Money Milestones: A twelve-month personal finance journey”. It’s a short book (142 pages) really meant for people first starting their journey into budgeting, investing, saving, and building a career. It’s filled with some of my own anecdotes, stories of other people, and examples of how small changes during your life add up to huge savings closer to retirement. In my experience, many personal finance books are too formulaic, and I wanted to write something that was more relevant to most people. My solution was to make the different topics relevant to the time of year. For example, in January I talk about self-motivation, New Years resolutions, and the commitment required to really stick to a detailed financial plan. I started my career as an academic in a technical field, which generally means writing very boring, jargon filled journal papers for others in your field. This was one of my first attempts at writing something that is (hopefully!) more broadly interesting.

What is a money milestone?

A financial plan is like a highway. It provides the path that you need to get to your destination. But how do you know what your destination is? Those are your life goals, and they represent where your car is going on the personal finance highway. If you do not have specific destinations in your plan, you are destined to drive around aimlessly with no place to stop and enjoy your progress. Money milestones are the important markers you pass along the way, showing your progress towards your destination. They are the place where you can stop, say “I did it”, and give you the motivation to continue your plan. Those milestones can be long-term, like saving a certain amount for retirement, paying off your mortgage, or paying for your children’s education. But they can also be short-term milestones that you reach throughout the year. For example, in the book I talk about building a budget for the first time and picking a career path.

Is Money Milestones for everybody?

I don’t think so. Money Milestones is going to most relevant to younger people that are first starting to think about their financial situation and how to improve it. In some cases, my suggestions might not be relevant to everybody (especially when dealing with cutting expenses), but I provide some examples, in case you’re somebody that wants to make serious changes. Financial advice is never one size fits all, and Money Milestones is the same. Some of my suggestions might sound extreme to a family with a high income and a large amount of discretionary income. However, to somebody that is just barely getting by and is struggling to control where their money goes each month, some of the suggestions in Money Milestones could make a world of difference.

The Big Picture

When I was younger and before I started working in financial planning, I made many of the same mistakes that I often see people making today. So, this book is really an attempt for me to give some guidance that I think could help people avoid some common financial traps. For example, in the book I discuss how when I was younger, I went along with the “default” retirement plan at my new job, and how in the end that decision ended up costing me thousands of dollars in investment gain if I had made another choice. Hopefully, I can point some readers into the right direction, so they avoid similar mistakes.