Smart Couples Finish Rich by David Bach

[Andrew Jackson]

My fiance recently bought Smart Couples Finish Rich by David Bach. He often appears on the Today Show. This book is a little dated as it was published in 2001. So far it has been an okay read but nothing really that I didn't already know, besides from the Value Chart and goals that he brings up in the first couple of chapters.

He seems to come off as overly optimistic in my opinion. He often mentions getting 12% average returns in the market and even 15%. Most other books and articles I have read always mention a more conservative 8-10% return as this is more in-line with the markets long history.

What bothered me the most though is he believes people should ask for and get 10% raises every year. And I didn't read any exceptions to this rule. He basically said if you don't get one than use your right and option to shop around for another job. To me 10% seems rather extreme. I can possibly imagine it if you are say 25 and new to the company. Maybe you start off making $50,000 and then at 35 you are making about $100,000. But then at 45 $200,00+?? At 55 $300,000+?? Completely insane. I feel like this would only work too if it was a very large company with a lot of employees retiring every year giving you a way to move up the depth chart.

I wonder what his views are now 10 years later and after all the economic problems we have had?

Non the less, I am thrilled that my soon to be wife bought this book. It was a nice surprise.

[KennySoward]

A good budgeting/saving book should be rather timeless. After all, there are basic principles to follow when budgeting and saving money. However, financial investing...I can see where techniques change much faster.

The 10% raise thing. He is partly wrong in that the average worker is not going to get a 10% raise every year. Being in the IT world (working for a global IT company) as a highly-rated employee, I couldn't demand that. However, when I finally threatened to quit my job, I actually did get a 10%+ raise, so David is partly correct when put that way

[Andrew Jackson]

The 10% raise thing. He is partly wrong in that the average worker is not going to get a 10% raise every year. Being in the IT world (working for a global IT company) as a highly-rated employee, I couldn't demand that. However, when I finally threatened to quit my job, I actually did get a 10%+ raise, so David is partly correct when put that way

Yeah a 10% raise isn't out of the question. Heck, I can even see a much larger raise being possible if one is really underpaid and valued by the employer. But expecting one year after year is ridiculous.

[Robert742]

A 10% raise every year is not realistic for most workers.

You definitely need to actively advocate for getting paid what you are worth, though. If you can explain your value, hopefully quantifying what you add to the bottom line of the company, you can show an employer why you are worth more, and it is good business to give you a raise. If you get no results, look for a better-paying job. If you get a better offer, use it as a bargaining chip with your current employer, or take the new job.

But you want to be realistic. Everyone thinks they are under-paid, but many employees are actually over-paid when an employer can hire someone else whom performs as well at a lower wage.

Capitalism can be cruel.