Smart Couples Finish Rich, Revised and Updated
Page 1
PRAISE FOR Smart Couples Finish Rich
“David Bach is the one financial expert to listen to when you’re intimidated by your finances. His powerful and easy-to-use program will help couples of all ages learn to save and invest to afford their dreams.”
—Tony Robbins, author of
Money: Master the Game
“[David Bach’s] advice is heartfelt and worthy. For most couples struggling to make their financial lives smoother, this is a good place to get the dialogue rolling.”
—USA Today
“David Bach offers a prescription both to avoid money conflicts and to plan a harmonious future together….The bottom line is action, and Bach’s chatty writing style helps motivate you to that end.”
—Businessweek
“Smart Couples Finish Rich teaches women and men to work together as a team when it comes to money. Bach’s nine steps are powerful, yet easy to understand and fun to implement. The entire family can benefit from this great book.”
—Robert T. Kiyosaki, author of
Rich Dad, Poor Dad
“Bach specializes in commonsense advice and a clear-cut path for engaging your partner in fruitful discussions about your shared financial future….His advice serves to free you and your beloved from the stress of never being quite sure of exactly where you stand financially. You’ll probably be surprised by how big a difference Bach’s strategy can make in your relationship.”
—Better Investing
“Bach does a great job convincing couples to think about money, talk about money, get a financial plan in order—and yes, spend less and save more.”
—American Way
PRAISE FOR The Automatic Millionaire
“The Automatic Millionaire is an automatic winner. David Bach really cares about you: on every page you can hear him cheering you on to financial fitness. No matter who you are or what your income is, you can benefit from this easy-to-apply program. Do it now. You and your loved ones deserve big bucks!”
—Ken Blanchard, coauthor of
The One Minute Manager
“The Automatic Millionaire gives you, step by step, everything you need to secure your financial future. When you do it David Bach’s way, failure is not an option.”
—Jean Chatzky, Financial Editor, NBC’s Today
PRAISE FOR Start Late, Finish Rich
“Financial wizard David Bach’s new book, Start Late, Finish Rich, offers solid advice for getting our finances in order, no matter how old we are.”
—AARP
“With feel-good sensibilities, David Bach delivers levelheaded strategies for reaching financial goals….Bach’s clever approach will make readers feel as if they’re having a one-on-one conversation with a friendly personal financial counselor….Powerful, poignant and pleasing, Start Late, Finish Rich can’t be read fast enough.”
—BookPage
PRAISE FOR Smart Women Finish Rich
“Inspires women to start planning today for a secure financial future. Every woman can benefit from this book….Bach is an excellent money coach.”
—John Gray, author of
Men Are from Mars, Women Are from Venus
“Straight-shooting, action-oriented tips for getting a handle on your spending and savings habits…presented in a straightforward, non-intimidating manner perfect for the finance newbie.”
—ABCNews.com
“[David] Bach gets across complicated stuff: how to organize a portfolio, keep the taxman at bay, invest in yourself, and earn more, all of which makes this book one of the best overall.”
—Working Woman
PRAISE FOR The Automatic Millionaire Homeowner
“[Bach’s] cheery, can-do message…cuts through the intimidating challenge of buying a house for the first-timer…for a newcomer, it’s fundamental reading.”
—USA Today
“If you read only one real estate book this year, it should be The Automatic Millionaire Homeowner….This is one of the few real estate books that cannot be recommended too highly for both beginners and experienced homeowners.”
—Robert J. Bruss,
Miami Herald
PRAISE FOR Go Green, Live Rich
“Great news: there is no green premium! By demonstrating how going green can fit any budget, David Bach shows that good environmental and financial decisions go hand-in-hand. Go Green, Live Rich gives great tips, useful to everyone, about how to save money and the planet at once.”
—Robert F. Kennedy Jr.
“Go Green, Live Rich is as much about saving money as it is about preserving our world of natural wonders for future generations. This is the rich-greenbook of a promising tomorrow.”
—Matthew Modine, founder of
Bicycle for a Day
PRAISE FOR Debt Free For Life
“David Bach has changed lives and taught millions to be smarter with their money and live a truly rich life through his 11 national bestselling books and regular appearances on NBC’s Today show and the Oprah show. He has now taken his honest, simple, ‘take action’ advice to inspire and teach America to shed its debt with his latest book, Debt Free For Life. David has created the ultimate debt guide with the latest and greatest systems and tools to achieve financial freedom once and for all. Debt Free For Life is about gaining back ownership of your life and creating a brighter, financially secure future.”
—Susan C. Keating, President and CEO of
the National Foundation for Credit Counseling
“David Bach understands the struggle of millions of Americans who are drowning in debt and has written the must-read of the decade to inspire and guide America to shed its debt—FOR GOOD! Debt Free For Life provides actionable advice and SOLUTIONS—what you can do TODAY to fix your finances and fix your debt. Bach’s plan includes an abundance of tools to lead to a debt-free world of true financial security. Pick up your copy of Debt Free For Life today and join David’s mission to turn back the tide of debt and buy back our futures—futures free from debt.”
—David C. Jones, President of
the Association of Independent
Consumer Credit Counseling Agencies
Also by David Bach
The Automatic Millionaire®
Smart Women Finish Rich®
Start Late, Finish Rich
Start Over, Finish Rich
The Finish Rich Dictionary
The Finish Rich Workbook
The Automatic Millionaire Homeowner
The Automatic Millionaire Workbook
Debt Free For Life
Fight for Your Money
Go Green, Live Rich
Copyright © 2001, 2002, 2018 by David Bach
All rights reserved.
Published in the United States by Currency, an imprint of the Crown Publishing Group, a division of Penguin Random House LLC, New York.
currency.com
CURRENCY and its colophon are trademarks of Penguin Random House LLC.
Originally published in hardcover in the United States and in slightly different form by Broadway Books, an imprint of the Crown Publishing Group, a division of Penguin Random House LLC, New York, in 2001. Subsequently published in trade paperback, by Broadway Books, an imprint of the Crown Publishing Group, a division of Penguin Random House LLC, New York, in 2002.
Currency books are available at special discounts for bulk purchases for sales promotions or corporate use. Special editions, including personalized covers, excerpts of existing books, or books with corporate logos, can be created in large quantities for special needs. For more information, contact Premium Sales at (212) 572-2232 or e-mail specialmarkets@penguinrandomhouse.
com.
This book is designed to provide authoritative information on the subject of personal finances. It is sold with the understanding that neither the Authors nor the Publisher is engaged in rendering legal, accounting, or other professional services by publishing this book. As each individual situation is unique, questions relevant to personal finances and specific to the individual should be addressed to an appropriate professional to ensure that the situation has been evaluated carefully and appropriately. The Authors and Publisher specifically disclaim any liability, loss, or risk which is incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this work. This book provides numerous charts and illustrations provided by third parties; no warranty can be made to their accuracy. They are intended for illustrative purposes only, and past performance does not guarantee future performance. While all of the stories and anecdotes described in the book are based on true experiences, most of the names are pseudonyms, and some situations and characteristics have been changed slightly for educational purposes and to protect each individual’s privacy.
The Automatic Millionaire, Smart Women Finish Rich, Smart Couples Finish Rich, Purpose-Focused Financial Plan, Value Circle, FinishRich Inventory Planner, FinishRich File Folder System, The Couples’ Latte Factor, The Latte Factor, The Smart Couples’ Seven-Day Financial Challenge, and Money Date are trademarks of David Bach and FinishRich Media.
Library of Congress Cataloging-in-Publication Data
Bach, David.
Smart couples finish rich : 9 steps to creating a rich future for you and your partner / David Bach.—1st ed.
p. cm.
1. Couples—Finance, Personal. 2. Investments. 3. Financial security. I. Title.
HG179.B243 2001
332.024’0655—dc21 00-046755
ISBN 9780525572930
Ebook ISBN 9780525572947
Cover photograph by Tetra Images/Getty Images
v5.1
a
To my readers who have taken the time to reach out to me personally over the years and share your success stories with me, this book is dedicated to YOU—“the doers, the dreamers, the Live Rich achievers.” Well done!
And to my parents, Bobbi and Marty Bach—you told me to spread my wings and fly, and that made all of this and more possible. I love you!
CONTENTS
Cover
Praise for Smart Couples Finish Rich
Also by David Bach
Title Page
Copyright
Dedication
Preface to the Updated Edition
Introduction
Why Smart Couples Are Taking Control of Their Financial Future
Step One
Learn the Facts and Myths About Couples and Money
Step Two
Determine the True Purpose of Money in Your Life
Step Three
Plan Together…Win Together
Step Four
The Couples’ Latte Factor®
Step Five
Build Your Retirement Basket
Step Six
Build Your Security Basket
Step Seven
Build Your Dream Basket
Step Eight
Learn to Avoid the Ten Biggest Financial Mistakes Couples Make
Step Nine
Plan a Money Date™
Three Words That Make a Difference
Acknowledgments for the Updated Edition
Acknowledgments for the Original Edition
Appendix 1: Where Does the Money Really Go?
Appendix 2: FinishRich Inventory Planner™
Appendix 3: Purpose-Focused Financial Plan™
How to Reach Us
PREFACE TO THE
UPDATED EDITION:
A PERSONAL MESSAGE FROM DAVID BACH—THE JOURNEY CONTINUES (17 YEARS LATER)
Thank you for being here. If you’ve read this book before and you’re returning for the update of Smart Couples Finish Rich, welcome back. I love reconnecting with my readers, and I’ve missed you. If you’re a new reader and this is our first time together, welcome. I’m incredibly excited and grateful to be with you all! The book you hold in your hands right now was originally my second book, which I wrote back in 2000, following the breakout success of Smart Women Finish Rich. It has been an unbelievable joy the past two decades to teach personal finance to so many of you and make a difference in your lives.
When the book was launched in 2001, I toured the country to spread the message of how smart couples can work on their financial life and their dreams as a team. In the beginning, the audiences were small and the book signings were smaller. Soon, however, the word spread about the value of the book, and thousands began attending the seminar based on it, then tens of thousands. Ultimately hundreds of thousands of couples would go through the program. The book would become a #1 national bestseller, appearing on the bestseller lists of the New York Times, Wall Street Journal, USA Today, and Businessweek, and in 2004 it was the #1 paperback business book of the year. And word continued to spread. In the next decade and a half, it helped couples all over the world and remained on bestseller lists for years.
This book would ultimately be featured on every major media outlet imaginable, from Oprah to NBC’s Today, CBS, CNN, Fox, CNBC, Huffington Post, AOL, Yahoo, Business Insider and more. The more it was shared, the more it worked for couples of all ages. And the more it worked for couples, the more I put off updating it. In 2015 I went back out on the road and did a new tour nationwide, with a new seminar based on this book. Thousands of you came, with hundreds of you sometimes standing in line for over an hour just to meet me and say “thank you.” You asked me, “David, when are you going to update the book? I want to give it to my friends!” To all of you who asked I thank you for the final push and motivation I needed to sit down and write it.
The truth is that a book update like this is in many ways harder to write than a new book—at least it is for me. So what exactly was updated? The answer is: pretty much most things that are not the timeless principles I teach. This book has been painstakingly refreshed and updated from front to back. The entire world of investing has changed since I originally wrote it. The tax laws, investments, retirement accounts, insurance, healthcare, technology—it’s all different and in most cases improved. New companies, websites, and apps have come into being to make managing your money easier for all and more fun, and the best companies and resources are now included in this update. The cost of advice and investing has also come down on almost every investment product from insurance to mutual funds, and I’ve shared how to get the best deals. You should be able to save thousands of dollars by reading this book and acting on the advice. And, more important, when you follow the steps I outline, I believe you will be able to become financially secure for life. That’s a big promise, but I’ve seen the advice work for smart couples time and time again. I truly, deeply believe that couples who plan together win together. This book has always been a program that is about much more than money. That core message has not changed. I designed this to be a road map, an action guide by which the two of you can live a life aligned with your values, pursuing together that which is most important to you. Finally, to help you really do this as a team, I’ve added a quick, fun chapter on how to plan a Money Date™, a powerful concept I created after the original book came out and have taught around the world to help you work on your money together.
Again, if you’re a first-time reader, welcome. If you’re a returning reader and friend, welcome back! Thank you from the bottom of my heart for giving me the opportunity to be your guide and coach once again through these upcoming pages. My goal and mission have always been to help you live and finish rich—because I know you can. Now, let’s get started! The fun is about to begin. Your journey starts now.
David Bach
FREE! SPECIAL BONUSES FOR READING THE BOOK
Over the years many of you have asked for the worksheets i
n this book to be downloadable and bigger. They are now available as a free PDF, which you can find on our website. We have also launched a new seminar based on this book called Smart Couples, Smart Retirement. The seminar is taught around the country, and details can be found at www.davidbach.com. Enjoy!
INTRODUCTION
WHY SMART
COUPLES ARE
TAKING CONTROL
OF THEIR
FINANCIAL FUTURE
I’ll never forget the first fight I had with my wife, Michelle, over money. We were just back from our honeymoon, and the bliss of getting married was still in the air. Our new apartment looked great. We were incredibly excited to be starting our lives together.
As Michelle began to unpack, I sat down at the kitchen table and started sorting through the mail. Since we’d been gone almost two weeks, there was a lot to go through. I began separating the important stuff from the junk mail, taking the bills that needed to be paid and placing them in piles. Nice, neat organized piles. In my mind, this bill-paying stuff would clearly be a nonissue. After all, both Michelle and I were financial professionals. I managed money for hundreds of couples; she helped corporate executives trade restricted stock. What’s more, I’d spent the last five years teaching classes on financial management and had just started writing a book on money for women. Paying our bills and managing money as a couple were bound to be a breeze.
NEAT AND SIMPLE?
As I sorted out the bills, I created a “David” pile and a “Michelle” pile. This was going to be so easy. I’d pay my bills (like my car payments and my cell phone) and Michelle would pay her bills (like her car and her cell phone). We’d split the household bills, which meant we needed a “we” pile. And…hmmm…who pays the insurance bills? Well, we’ll figure that out. Maybe we also need a “to be discussed” pile. Let’s see, that’s four piles.