Money Made Simple by Sam Stubbs

I was surprised to find how much useful information and advice Sam Stubbs has managed to pack into this wee pocket-sized book. He divided it into two parts.

Part One has a chapter on each of Three Simple Truths:

· We should talk about money.

· It’s how we think about money which matters.

· Understanding compounding returns really matters.

In Part Two he covers The Eight Golden Rules of Money in eight further short chapters:

· Pay off your debts.

· Invest in education.

· Buy a house if you can and pay it off as soon as possible.

· Get into Kiwi Saver.

· Stop paying high fees and high interest.

· Choose diversified, passive funds.

· Have a rainy-day fund.

· Have some basic insurance.

At the end of the book, for those who would like to learn more, he has also included his favourite books, websites and podcasts written by people he respects, and who he thinks are balanced in their views. I was pleased to see Mary Holm included whose advice I always appreciate.

Our parents never talked about money with us. And we never talked about money with our children. Why did we just assume that they would know what to do?

There are many parents like us and I agree with Sam, this needs to change. It is important to lay the foundations of how to manage your money early in life. Ignorance about money can have dire results. As he says:

‘It can drive people into the arms of payday lenders, loan sharks and parts of the finance industry that are more interested in making money from you than for you.’ Whereas, if you have money: ‘It gives you choices in life. And a life with choices is a life with dignity.’

His advice on how to improve your financial wellbeing is written in plain language so anyone can understand it and his book can easily be read in one sitting. It provides a sensible foundation for building financial literacy and also opens up lots of possibilities for further conversations.

Sam Stubbs is one of the founders of Simplicity, a non-profit fund manager, owned by the Simplicity Foundation. All the profits from the sale of the book will go to the Simplicity Foundation, which is focussed on charities supporting children at risk, addressing poverty, the environment and improving financial capability.

Reviewer: Lyn Potter

Potton & Burton