Have you ever found yourself in the middle of a troubled financial situation and asked: "How did I get to this point?" This is common for many people who think dealing with money is easy, but don't worry! The book "Smart Couples Get Rich Together", by Gustavo Cerbasi, will help you in this journey.
Balanced financial life is connected with a balanced personal life, and according to Gustavo Cerbasi theory, it's possible to have control over your financial life with lifelong planning that includes daily attitudes, which will make a difference in the future of the couple.
Want to change your family and personal life, building a more peaceful future through your financial habits? So stay with us in this summary!
Written by Gustavo Cerbasi, it is a guide to mastering financial life, with planning that must be performed every day.
The author reinforces the need for financial planning and how this can be done together. With suggestions for couples in any relationship phase, this book is an ideal manual for family financial management.
The book is divided into 3 parts: "A Financially Happy Union", "Lifelong Planning", and "A Richer Future for Two."
Gustavo Cerbasi holds a master's degree in business administration from the Faculty of Economics and Administration of the University of São Paulo (FEA/USP) and has a degree in public administration from Fundação Getúlio Vargas (FGV).
He is also a finance specialist from the Stern School of Business (New York University) and the Institute of Management Foundation (FIA).
This work is suitable for couples who yearn for a balanced financial life and don't know what to do to achieve it.
The contents of the book include financial planning with the most common mistakes and successes in achieving personal or family financial success.
The book indicates that a couple should seek a financial balance together, thus creating a peaceful and tranquil future.
So, if you are looking forward to strategies to earn money and save accounts, this book is definitely for you!
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In the introduction, the author Gustavo Cerbasi presents the core of marital problems related to the financial issue. He points out that often a couple doesn't even realize that money is the cause of a fight and, therefore, doesn't pay attention to how to improve in this aspect.
To achieve a stable and balanced relationship, a couple needs to talk about finances, their financial profiles, habits, dreams, and future desires.
Managing your financial life is a challenge that should not be left to the background either in individual life or in a relationship.
It is a fact that the lack of dialogue is what hinders family finances. However, it is not enough that the subject is only discussed. Goals must be planned and executed!
It is necessary for a couple to have an idea of each other's dreams, so that they can plan and focus on making them come true. In the book "Smart Couples Get Rich Together" it is explained that the lack of planning is a hindrance for personal finances.
Knowing your own and your partner's profile is the first thing to do for good financial planning. Here it is what these profiles are and define which one you fit:
They don't mind restricting current spending as much as possible.
For these people, the important thing is to live in the present without thinking about tomorrow.
They have no idea about the account balance flow.
They spend less than they earn, but they don't know how much.
They are strict with their spending control, with a focus on saving.
Relationships unite people of different profiles. Consequently, they combine strengths and weaknesses that can cause drastic financial difficulties. This is why talking about finance is so important to build a solid relationship.
Generally, financial planning issues are not part of a couple's conversations. This is especially true in families where one earns much more than the other, where the highest salary becomes the one who controls and decides the couple's financial future.
This leads to a relationship full of distrust and insecurity that will lead to a loss of financial control and breakdowns between the couple.
To solve this, family financial planning should be done - or as the author Gustavo Cerbasi calls it: the "Financial Independence Plan", which requires no complex calculations or great calculating skills.
But is it really necessary to do family financial planning? Of course it is!
Unlike many people believe, financial planning is not just about getting out of the red, but about maintaining a good standard of living, improving over time.
Building wealth allows you not only to make new achievements but to keep those already made.
The book "Smart Couples Get Rich Together" says that when we are single, we should take the opportunity to learn how to build financial independence and organize our finances. We can start simply by spending less than we earn and investing the difference in long-term projects.
So when you start sharing intimacy with someone else, it will be easier to deal with money together, even to make diversified investments.
In dating, the couple should be able to talk about splitting expenses and their financial profiles. This creates an environment in which conversations about any subject would be natural.
Here are some tips for having a financial control when dating or engaged:
The author Gustavo Cerbasi explains that marriage is a period of union, including the union of finance. If both had an individual financial plan, they should agree among communication on how to merge these plans.
Bank accounts should be grouped gradually and, preferably, credit cards should also be unified.
Separate bank accounts are valid in cases where both work and are required to receive at different banks. The book "Smart Couples Get Rich Together" emphasizes two points:
In this section of the book "Smart Couples Get Rich Together", the author Gustavo Cerbasi states that the first step in good financial planning is to have money left. But this is not an easy task! Intense discipline is required regarding all your monthly expenses.
Cerbasi suggests you put on paper all the expenses you have for a month. Be strict, carry a sheet of paper in your wallet and write down everything, from the tip given to the "car watcher" until the coins lost on the bus.
This will give you an idea of your spending and where you can cut or reallocate costs.
With a goal plan, you have already started the path to evolve your financial situation and achieve the long-awaited financial independence.
The first step toward financial independence is to spend less than you earn, controlling the household budget. Then, reinvest your returns until you reach a critical mass of capital that generates the income you want for the rest of your life.
The second step is to define how much you should save per month and for how long to reach your desired retirement income.
Importantly, there is no good investment for those who are mired in debt. First, pay your debts, then plan your savings and enrichment goal.
The author Gustavo Cerbasi explains that it is important to save on the home budget. Here we have 2 tips from the book:
The book "Smart Couple Get Rich Together" explains that If a couple doesn't plan ahead for the birth of their children, they will suffer a financial imbalance. By this way, they put the family's welfare at risk.
You must find an optimal savings level that enables a healthy life for a peaceful and balanced future.
To get a good plan for this new family time, follow the next 2 topics!
Parents need to think about their children's future, including their college.
If your children grow up in an environment with a good financial structure, you can use the amount invested for college for other purposes, such as retirement.
Good family planning includes health insurance, pension, and life insurance. If possible, get one-time insurance that already includes car, life, among other things.
You also need to keep in mind that children's expenses also grow as they grow. However, such expenses can be streamlined with some valuable tips:
Parents should teach by example. If they demonstrate a financial balance for their children, they are likely to follow their parents' example.
Teach them to:
The author Gustavo Cerbasi advises that if you don't have spare money, you should never resort to loan sharks and always avoid financial problems.
He also advises that you never pay just the partial amount of your credit card debt statement. If you are unable to pay the full amount due to an emergency, you may want to take a loan from the bank as it will cost you less than the revolving card interest.
The bank will offer some alternatives such as CDC and Overdraft. It's necessary to analyze the available alternative that has the lowest interest amount, if possible a payroll or lower interest personal loan.
At this point of the book "Smart Couples Get Rich Together" is shown that you can achieve a far better future than the present by paying attention to the use of the following four key ingredients:
Invest in what you have prior knowledge. If you know almost nothing about investing, research hard to choose the most profitable alternative.
The couple must determine a percentage of the monthly income to be saved, without a set deadline, until they reach the target of accumulated resources.
You can be assisted by brokerage firms and financial advisors to achieve a sound investment strategy.
When disciplined early in life, a couple can achieve financial independence early too. However, it doesn't mean they can be considered "retired".
For the author Gustavo Cerbasi, a retiree is not one who retires after contributing minimum time to Social Security, but the one who can stop working at any time.
It is the individual who can take a moment to devote to other hobbies, or travel the world, even stop working to dedicate themselves to other stuff while staying active.
For this, it's necessary that the couple follows the tips cited in the book "Smart Couples Get Rich Together" and plan this time when they can choose to do something different from life, through investments aimed at their own pension.
Paulo Vieira, author of the book "Enrichment Factor", in free translation, says the enrichment journey is made up of peaks and valleys, be prepared and willing not to stop midway. Remember not to give up and develop a successful mindset, be able to see adversity and move on, doing what has to be done.
For Robert Kiyosaki, author of the bestseller "Rich Dad Poor Dad", the journey to enrichment should begin as early as possible, and it involves assessing your finances, setting personal goals, and seeking the knowledge you need to achieve your goals.
Finally, to the author of "Think and Grow Rich", Napoleon Hill, the first step to becoming rich is to have a strong desire to be rich. It may sound simple, right? But this desire has to cause fire in the belly and you need a good deal of persistence.
There is no magic recipe for good financial planning. But a mutual effort to change habits is required to be able to manage your finances and aim for a peaceful future. The author Gustavo Cerbasi exemplifies this with some lessons for our daily lives:
The pursuit of a financially stable and secure future brings peace.
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