From the Author of the # 1 New York Times Bestsellers
The Automatic Millionaire and Start Late, Finish Rich,
A Powerful Action Plan for Personal Financial Recovery
START OVER, FINISH RICH:
10 Steps to Get You Back on Track For 2010
Author of Seven New York Times Bestsellers
With the economy showing early signs of recovery, 2010 will be the best opportunity for building wealth that we have seen in decades. And as the economy recovers, you must be set up to recover with it. So explains bestselling author and financial guru David Bach in START OVER, FINISH RICH: 10 Steps to Get You Back on Track for 2010 (December 29, 2009; Broadway Books; $9.99), a powerful, take-action plan that prepares readers to take full advantage of the brighter future ahead by arming them with new information, updated investment strategies, and a new way of thinking and acting in tune with our new reality.
“Recessions like the one we have just experienced are not fun,” says Bach. “They are gut shattering, and they take a long time to recover from. But we do recover. What’s more, the aftermath of a recession is the ideal environment in which to lay the foundation for a secure, financially independent future. Although the economy has already come a long way back from where it was in the winter of 2008-2009, both real estate values and stock prices are still way below the peaks they hit in 2006 and 2007. In other words, there are bargains-in some cases, phenomenal bargains-to be had. More important, recessions can be a great time to reset your financial life, your goals, and your values.”
Written in the same highly accessible, motivating style of Bach’s runaway # 1 New York Times bestseller The Automatic Millionaire, START OVER, FINISH RICH is designed to be read quickly and put right to work. Drawing upon tried-and-true principles of wealth building, Bach spells out the ten most crucial steps for putting a financially secure future squarely back in reach, including how to get out of debt, repair credit, rebuild savings, revitalize retirement plans, rebuild with real estate, and reorganize one’s financial life for the high tech age.
Now is the Time to Recommit to Wealth
The first step to getting back on track financially is to stay positive and recommit to wealth. “Don’t stop saving, don’t stop investing, and don’t give into fear and despair,” urges Bach. “There are as many, if not more, opportunities to build wealth during recessions and the recoveries that follow them as there are during boom times. But you won’t get anywhere if you are too scared-or feel too defeated-to do anything. You have to have a plan based on action! Doing nothing is the worst choice you can make. You have to hit the reset button and START OVER.”
Among the key steps to starting over in 2010 are the following:
FIND YOUR MONEY
ü Organize your financial records using Bach’s simple “Start Over” File Folder System, which will show you what you have and what you owe to whom. Throw away or shred your outdated document.
ü Track your spending for seven days using the Latte Factor Challenge worksheet. How much daily savings can you find? Remember that even $5 a day means more than a million dollars at retirement.
DEAL WITH YOUR CREDIT CARD DEBT
ü If you are drowning in debt, STOP USING YOUR CREDIT CARDS.
ü Use Bach’s DOLP (Dead on Last Payment) system to get out of debt quickly, paying the minimum on every card except one. Pay as much as you can on that one card until it is paid off. Repeat with the next card.
ü Determine what kind of interest rate you should be getting on your credit cards, from Super-Prime to Punitive, then go to www.finishrich.com/cardcompare to find out how your cards’ interest rates compare to the national average. Armed with this knowledge, contact the credit card companies and ask for the lower interest rate you deserve.
ü If you can’t afford to make your minimum payments, ask your credit card companies about their debt-management plan-and if they can’t (or won’t) help you, get credit counseling from a reputable nonprofit agency recommended by the National Foundation for Credit Counseling.
ü If your debt has been sold to a collection agency, prioritize this debt last and when you are ready, negotiate to pay a fraction of the debt.
FIX AND PROTECT YOUR CREDIT STORE
ü Find out your FICO score by going to www.fico.com.
ü Identify the factors that are keeping your score down. Take action on each one.
ü Recheck your credit score in six months and again at the end of the year. Remember your goal is a score of 720 or higher.
REBUILD YOUR EMERGENCY SAVINGS
ü Set a goal for your emergency fund that will let you sleep well at night-enough to cover a minimum of three months of basic expenses.
ü To fund your emergency account, temporarily give up something you really like (like premium cable or eating out) but that isn’t essential.
ü Fund your emergency account automatically by having a portion of your paycheck direct-deposited into a separate account or automatically transferred to that account from your checking account.
ü Keep your emergency funds in an account that is FDIC-insured and accessible by check or ATM card-and then LEAVE IT ALONE.
RE-ENERGIZE YOUR RETIREMENT PLAN
ü If you have stopped contributing to your retirement account, start again immediately.
ü If your employer offers a 401(k) or similar retirement plan, make sure you’re signed up and contributing. If you don’t have a 401(k) at work, open up your own IRA account.
ü Know exactly where your money is invested. Pull out your retirement account statement and find out what your savings are invested in.
ü Use www.morningstar.com to compare your investments’ performance to others in the same asset class.
ü Determine what level of risk you’re comfortable with-and what’s right for someone your age. Then make sure your investments reflect that.
ü Consider “target date” mutual funds so you don’t have to rebalance your investments yourself every year.
ü If you don’t feel comfortable making these decisions yourself, get help from a qualified financial professional. Ask your employer if your plan offers a free or fee-based advisory service, or find one from the several recommended in Bach’s book.
ü Increase your retirement contributions today, and if you don’t feel the pinch, raise them some more. Your goal is to reach the maximum contribution allowed.
MAKE IT AUTOMATIC
ü If there is one thing you must do in 2010 in order for your “start Over” plan to work, it is to make it automatic. Understand that if your plan requires you to be disciplined, it will fail.
ü Pay yourself first automatically by having a minimum of 5% of what you earn deducted from your paycheck and deposited directly in a 401(k), IRA, or similar qualified retirement account.
ü Deposit your paycheck automatically and fund your emergency account automatically by having at least 5% of your paycheck directly deposited or transferred into a separate FDIC-insured account.
ü Automatically fund your dream account (money to pay for what you dream of in life, be it a home, car, wedding, or trip to Hawaii) the same way-using either payroll deduction or your bank’s online bill-pay service to have a percentage of your paycheck transferred automatically into an FDIC-insured account set up for just this purpose.
ü Use your bank’s online bill-paying service to automatically make the minimum payments for each of your credit cards at least five days before they are due in order to ensure that you never miss a deadline and get hit with late fees or penalty interest rates.
ü Give to charity automatically by allowing a charity to charge a small amount-between 1% and 10% of each paycheck-to your credit card or accept an automatic debit from your bank account.
REBUILD WITH REAL ESTATE
ü Calculate your current housing costs. Are you spending 25% or less of your gross income on housing?
ü Refinance NOW if you can find a new mortgage rate that is at least one full percentage point less than your current rate. Shop around, and stick to a plain-vanilla, fixed-rate, 30-year mortgage. Make sure your mortgage savings will offset the closing costs in the time you plan to own your home.
ü If you are drowning in a mortgage you can’t afford, get help. Go to www.makinghomeaffordable.gov or find a housing counselor at www.hud.gov. For urgent help, call the Homeowner’s HOPE Hotline at (888) 995-HOPE.
ü Are you ready to buy? Put aside six months of housing expenses as a cushion before you take the leap.
“I believe that the post-recession period we’re in now offers a once-in-a-lifetime opportunity to build wealth and start over,” writes Bach. “That’s why I’m willing to make this promise: If you are willing to take the 10 action steps I am going to share with you in this book-starting with the first step of regaining your belief in yourself and your future-you will be able to start over and you can finish rich.”
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START OVER, FINISH RICH
10 Steps to Get You Back on Track for 2010
By David Bach
Publication Date: December 29, 2009
Published by: Broadway Books
Trade Paperback Original; 224 Pages; $9.99
ISBN #: 978-0-307-59119-7
Also available as an eBook and on Audio from Random House
David Bach is donating $1 for each copy of Start Over, Finish Rich
sold in 2010 (up to $20,000) to charity: water, a non-profit organization bringing
clean and safe drinking water to people in developing nations. This donation
will go toward sponsoring a freshwater well and latrines at a school and will
serve over 1,000 students.
About David Bach
David Bach has helped millions of people around the world take action to live and finish rich. He is the author of nine consecutive national bestsellers, including the consecutive # 1 New York Times bestsellers, The Automatic Millionaire and Start Late, Finish Rich, as well as the national and international bestsellers The Automatic Millionaire Homeowner, Smart Women Finish Rich, Smart Couples Finish Rich, Go Green, Live Rich, and the New York Times and USA Today Business Bestseller Fight For Your Money. Bach carries the unique distinction of having four of his books appear simultaneously on the Wall street Journal, BusinessWeek, and USA Today bestsellers lists. In all, his FinishRich books have been published in more than fifteen languages, with more than seven million copies in print worldwide.
A regular guest on NBC’s “Today Show,” Bach has appeared six times on The Oprah Winfrey Show, has been a regular contributor to CNN American Morning, and has been a guest on countless television and radio shows, including Weekend Today, 20/20, CBS Early Show, Regis & Kelly, ABC News Now, CNN’s Your Bottom Line, and Larry King Live. He has been profiled in numerous publications, including the New York Times, BusinessWeek, USA Today, People, Reader’s Digest, Washington Post, and The Wall Street Journal, Working Woman, Glamour, and Family Circle. He has also served as a columnist for Yahoo! Finance and for Redbook.
A renowned motivational and financial speaker, Bach regularly presents seminars and delivers keynote addresses to the world’s leading financial services firms, Fortune 500 companies, universities, and national conferences. He is the founder and Chairman of FinishRich Media, a company dedicated to revolutionizing the way people learn about money. Prior to founding FinishRich Media, he was a senior vice president of Morgan Stanley and a partner of The Bach Group, which during his tenure (1993 to 2001) managed more than half a billion dollars for individual investors.
He is the creator of the FinishRich Seminar series, which highlights his quick and easy-to-follow financial strategies. To date, more than half a million people have learned how to take financial action to live a life in line with their values by attending his Smart Women Finish Rich®, Smart Couples Finish Rich®, and Find the Money Seminars, which have been taught by thousands of financial advisors in more than two thousand cities and towns throughout North America.
As part of his mission, David Bach is involved with many worthwhile causes including serving on the board of Habit for Humanity New York and co-founding Makers of Memories, a charity organization dedicated to helping women and children who are victims of domestic violence. He lives in New York.
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For more information or to book your interview with David Bach, please contact David Drake in the Broadway Books Publicity Department: 212-782-9001 or firstname.lastname@example.org