Farnoosh Torabi - Youre So Money: Live Rich, Even When Youre Not

Contents

For Mom, Dad, and Todd

Acknowledgments

Writing a book and getting it published takes hard work, little sleep, and, in my case, sacrificing a bit of sight (all those months in front of a laptop screennot easy on the eyes). But beyond that, and more important, finishing a book and getting it on the shelves require tremendous luck. My luck is in knowing generous and inspiring individuals who have, in their own ways, helped make this book a reality. First and foremost, Im lucky for the unconditional love and support of my family. My mother and father teach me, by example, that there are no limits to what you can achieve in life. My younger brother, Todd, keeps me laughing and thinking on my feet.

I am beyond fortunate for my best friend Tim Dussinger. A girl couldnt ask for a more loving steady. Thank you to my close friends for their enthusiasm and honest advice: Kate Dailey, Ariel Gornizky, Bethany Baumbach, Dustin Newcombe, Kat Ricker, Kafi Drexel, Dan Listwa, Margie Fox, Brian Maloney, David Dapko, Richard Laermer, Annika Pergament, Michael OLooney, and Susan Beacham. You are such positive influences in my life. Thank you.

I have the enormous fortune of working with the extraordinary team at thestreet.com. First, thank you to Jim Cramer, whos graced this book with his invaluable advice. I am forever grateful. Thank you to CEO Tom Clarke and editor in chief David Morrow, whove granted me great freedom at work. Huge thank yous to Sandy Brown, James Altucher, Aaron Task, and Kristin Bentz. I love working together. Thank you for your support and friendships. Thank you, as well, to Bill McCandless, the executive editor of multimedia, and my hardworking, creative team at thestreet.com TV.

My researcher, friend, and go-to guy Tim Chan is a blessing. You will find his awesome anecdotes and fantastic ideas woven into this book. I am also lucky for the writing assistance of the great Cliff Mason. I still owe you a very expensive bottle of liquor.

Thank you to my literary agent Jeremy Katz of Sanford J. Greenburger for his brilliant guidance and backing. Thanks for taking a chance on me! I look forward to the next writing adventure with you! I must also thank Daniel Jacobson. He got me, and that was so encouraging.

Im so lucky for the phenomenal editorial, marketing, and production team at Crown/Three Rivers Press, including my editor Lindsay Orman (you rock!), Carrie Thornton, and John Mahaney.

Thanks to Nancy Pertschuk, who taught me how to write in the tenth grade; my outstanding business professors at Penn State, Tim Simin and Greg Pierce; and David Andelman, my first and best mentor in New York. Thanks to my editors at AM New York. And thank you to Jean Chatzky, my first real world boss and constant inspiration.

I hope you all like my book.

Foreword

Youre either brilliant for picking up this book or just plain lucky. Let me guess, youre probably not too far removed from college, maybe youve just gotten your first (or second) job, and youre struggling. Maybe its the first time youve managed your own money (possibly because its the first time youve had money to manage), or maybe you know a thing or two about personal finance, but youre so swamped in debt that you dont know if you can ever justify a Friday night out again. Personal finance books arent your thing, but you know you need help, and Farnooshs book looked friendlier than some of those others on the shelf, so you picked it up.

Congrats. Youve come to the right place.

Now, I know what youre probably thinking. Jim, youre a millionaire. You couldnt possibly know what Im going through or how Im feeling. Oh, but I do! And man, do I wish Id been smart or lucky enough to have this book in my hands when I was just starting out. In 1977 (before most of you were even born), I earned my first paycheck, a measly $178.82. That was posttaxes, postovertime, postone week of criminal news reporting at the Tallahassee Democrat. Life was actually good at that point, considering that months later I would be homeless. My apartment burglarized and checking account emptied, I was sleeping in the back of my beat-up Ford Fairmont with only the weight of my Sierra Designs denim coat to keep me warm. This was not where I had pictured myself.

I realized that although money wasnt everything in life, it did buy a lot of stuff. And I wanted much more of it than I had at that moment. Criminal news reporting probably wasnt ever going to make me a wealthy man. But I did have another passion that might give me a shot. I loved the stock market with all its mysterious ticker symbols and furious trades and the potential for huge fortunes to be made if you knew how to play it right. That, in particular, is something I remember feeling under my skin and in my heart as far back as the fourth grade. I remember scouring the business pages of the Philadelphia Evening Bulletin, searching for the dollar signs and patterns that drove stock prices higher.

So I did some soul-searching, as there wasnt much else to do in my Fairmont. I thought about what I ultimately wanted to achieve in my life: like a wife and kids, a nice home, a comfortable lifestyle, season tickets to the Eagles, a golden retriever, annual vacations to exotic islands, a rewarding career, and a big enough stash of cash so that I could retire with money to spare and would never have to sleep in my car again! It became clear to me that it was time to turn my passion for the stock market into lots and lots of money so I could get what I wanted out of life.

This is why Farnooshs book is so invaluable and why I jumped on the opportunity to be involved with Youre So Money. Farnoosh asks you to envision what makes you happy, what it is that you truly desire in life, and then tells you how to achieve it, even when your finances are limited. She offers candid advice on how to manage your money when youre just starting out and presents opportunities instead of ultimatums. And if youre smart, youll listen to her because she knows what shes talking about. While I was living in my car as a young professional, Farnoosh found a way to buy her own apartment while earning less than $50,000 a year. In Manhattan. On the Upper West Side. Let me tell you, thats no small feat.

Im so sure of Farnoosh that we hired her back in 2006 to be thestreet.coms first official video correspondent. Her real-life savvy, hard-nosed journalism skills and financial background make her an asset to our site, especially as it expands and turns mainstream. Shes interviewed everyone from Mark Cuban, Martha Stewart, and big-time CEOs to small business owners, NYSE floor traders, and investment gurus (including me. She interviews me daily on thestreet.com TVs Wall Street Confidential ). Her style is inviting and engagingnot easy when youre discussing finance.