Book Review > Personal Finance for Dummies (Australian Edition)

One of the problems I have with the "Dummies" series is that these books are really for "Smarties". This is certainly true of this book by Barbara Drury. Smart people interested in making the most of their financial options can benefit from the information therein. The author has a wide writing experience as a financial journalist both in Australia and abroad over more than 20 years. Her financial journalism has also included time in TV with the Nine Network. Although her base in Australia has been Sydney and currently Coffs Harbour New South Wales, her advice does not neglect the financial differences between the various states of Australia.
At just under 10 pages for the dollar, this 350 page book is packed with good advice and must be rated a bargain buy. There are chapters on budgeting and planning your finances, cash management, loans and mortgages, shares and property investing, superannuation, retirement, and obtaining advice. All these are up-to-date. For example, the superannuation considers the 2001/2002 and the 2002/2003 tax years.
The chapter on budgeting has sound advice but is not aiming to make you feel remote and withdrawn from the world. Expenses are talked about as those you can control, those you can't control and those that feel good. The book has many forms and tables for you to fill out so you can see where you are. There is also a list of websites which provide budget planning such as the ANZ, AMP and FPA with some comment on them.
I found the chapter on planning the times of your life particularly well done. We are all getting older, but there are many different lifestyles. Whether you are thinking about university and HECS, single and starting to earn money, the lone woman, getting married or divorced, a DINK or a pair of parents, or even retired, this is a must-read chapter with practical advice for now and for the future.
Another must-read chapter is that on Loans. Not only are the types of loans considered but also the types of interest. Credit cards, bank overdrafts, personal loans, campus loans and investment loans are all considered. This chapter also has a useful list of the websites in each state for credit and fair trading advice. Managing your mortgage has a chapter of its own. The first home owners scheme is considered and the cost of mortgages in the various States is detailed.
Probably the chapter with the widest relevance is that on "pruning your tax bill". This chapter looks at where and when tax applies and appropriate ways to minimize this. Again this chapter provides websites where there is online advice.
Some of the chapters tackle difficult areas but generally provide good advice and I learnt quite a few things. The chapter on superannuation lists the changes in retirement age, the current reasonable benefit limits and the maximum deductible age-based limits. There is also a list with commentary of advisory websites such as the Association of Super Funds of Australia and shopping sites for super funds. Similarly the chapter on "making a graceful exit" looks at wills and how to make them work either by a lawyer or a trustee company including the public trustees. Again in several places in this chapter the address of helpful websites are given for those who wish to follow up and get more information.
There are two appendices at the end of the book. One gives details of where courses are available to study for a financially secure future: this includes Australian Stock Exchanges classes in the various States and contact details and again includes website addresses, but also some telephone numbers. The other appendix is "Money watchdogs and guardian angels" (a bit of journalistic licence). Here are listed many contacts for those in trouble or with a complaint. Usually with a brief run-down of the service provided, there is an address, a telephone number and a website.
This book is well written and current. It is easy to read and contains such a wide breadth of financial information that it has something for everyone. I learnt a great deal and this is one book I shall keep on my shelf. For most people, it is $40 well spent. Following Barbara Drury's suggestions can make most of us better at managing our financial lives. It will not answer every problem but will give some background information for almost every financial worry and helpful pointers on how and where further help can be obtained if it is needed.
My main concern is that in a couple of years I shall have to fork out and buy the new edition.