Gregory Karp - The 1-2-3 Money Plan: The Three Most Important Steps to Saving and Spending Smart

The Three Most Important Steps to Saving and Spending Smart

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2009 by Pearson Education, Inc.
Publishing as FT Press
Upper Saddle River, New Jersey 07458

This book is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting or other professional services or advice by publishing this book. Each individual situation is unique. Thus, if legal or financial advice or other expert assistance is required in a specific situation, the services of a competent professional should be sought to ensure that the situation has been evaluated carefully and appropriately. The author and the publisher disclaim any liability, loss, or risk resulting directly or indirectly, from the use or application of any of the contents of this book.

FT Press offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, . Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners.

All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America
First Printing May 2009

ISBN-10: 0-13-714173-4
ISBN-13: 978-0-13-714173-9

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Library of Congress Cataloging-in-Publication Data
Karp, Gregory.

The 1-2-3 money plan : the three most important steps to saving and spending smart / Gregory Karp.
p. cm.

ISBN 0-13-714173-4 (pbk. : alk. paper) 1. Home economicsAccounting. 2. Consumer education. 3. Budgets, Personal. 4. Finance, Personal. I. Title. II. Title: One two three money plan.

TX326.K27 2009
332.024dc22

2008054616

For Rebecca, Jacob, and Michael

Wisdom in this book does not come from me alone.

The great information herein can be largely attributed to the many experts who have agreed to talk with me through the years.

Wisdom also comes from readers of my national newspaper column, Spending Smart, and my previous book, Living Rich by Spending Smart. Literally hundreds of readers have called and e-mailed to ask questions, share their collective wisdom and experiences, or just thank me for providing straightforward advice, which is the only way I know how to give it. They are a continuing inspiration to tackle new spending topics each week in my column and pursue larger publishing projects. For all of those collaborators, I am grateful.

Id also like to thank editors at the Morning Call newspaper in Allentown, Pennsylvania, where I work. Editor Ardith Hilliard and managing editor David Erdman have been supportive of my national newspaper column, Spending Smart, which is published in Tribune Company newspapers. They have also made allowances for my nonnewspaper writing.

Thanks to Jim Boyd, executive editor at FT Press, and reviewers Russ Hall and Michael Thomsett. A special thanks to Jeanne Bonner for meticulously reviewing the manuscript.

Thanks, too, to Clark Howard, author and host of the Clark Howard Show on radio. Clarks encyclopedic knowledge of consumer issues is an inspiration. One conversation with him, in particular, led to the idea for the format of this bookof providing just three tasks for each money topic.

To family, friends, and colleagues who have taken an interest in my books, thank you. Your support means a lot.

Most important, thanks to my immediate familyRebecca, Jacob, and Michaelfor your support and accommodation as I finished two books in 15 months. Your love and understanding mean more than you know.

Gregory Karp is an author and journalist of 20 years. His national newspaper column, Spending Smart, is published in papers that together have millions of readers. The weekly column appears in the Chicago Tribune, Baltimore Sun, Hartford Courant, Orlando Sentinel , Allentown Morning Call, and others. The column has twice won a Best Column Award from the Society of American Business Editors and Writers, in 2006 and 2008.

He is also author of Living Rich by Spending Smart: How to Get More of What You Really Want .

Gregs advice on spending money smarter has appeared in national magazines, such as Newsweek and SmartMoney; television broadcasts, such as WCBS in New York, WSB in Atlanta, and WPVI in Philadelphia, and literally dozens of newspapers nationwide, from the Los Angeles Times to Newsday in New York.

He maintains a Web site at www.gregkarp.com and blog at SpendingSmart.net.

Greg lives near Philadelphia with his wife and two sons.

This book is, admittedly, a low-tech device. But its meant to offer advantages you find in a high-tech GPS navigation system for your vehicle and an iPod audio player.

In navigating money and spending issues, especially in these challenging economic times, I hope youll find this book as helpful and succinct as a GPS device that gives driving directions in an unfamiliar region. And in simplicity, its meant to be as easy to use as the ubiquitous iPod music player.

Fortunately, you dont have to be a gadget lover to use it.

I like my GPS navigation system, a Garmin Nuvi. I suggest you buy one, after you get your money life in order and are spending your money smarter every day.

No. It doesnt have to be that brand or model of GPS navigator. There are many good onesones with different features and less-expensive ones that still get the job done. But, the Garmin Nuvi is a very good line of GPS systems for nearly everybody. And if you drive often in unfamiliar areas, you should buy one.

This brief suggestion is indicative of this book. I intend to give you very specific advice about spending and handling money.

Garmin, as I unimaginatively named my GPS system, tells me, turn by turn, how to get from where I am now to where I want to go. I dont mean that it lists directions and a map on a screen. While Im driving, a voice inside the small box mounted on my dashboard speaks directions and road namesalbeit, sometimes with butchered pronunciations.

Garmin doesnt care where I started, even if Im lost to begin with. And it doesnt always give me the absolute-best route to where Im going. But Garmin gets me where Im going, almost every time.

Garmin also provides me peace of mind. While driving in unfamiliar areas with confusing traffic patterns, I dont care that Garmin isnt providing the absolute-best directionsdirections that might get me to my destination two minutes sooner. I care that it gives me clear, understandable directions and gets me where Im going safely.