7 of 7 people found the following review helpful:
5.0 out of 5 stars
Managing Money with a Sound Mind, February 17, 2003
This review is from: Sound Mind Investing (Paperback)
In the foreward of the third edition of "Sound Mind Investing", Larry Burkett writes "...I endorse the integrity and honesty of Austin Pryor. Obviously you, the reader, must evaluate his advice yourself. No one individual has the right advice for everyone, and anyone can, and will, be wrong in the changing economy we live in. But if you will spend the time to read carefully the counsel Austin provides in this book, you will find it both time and money well spent."
I agree wholeheartedly. After having read numerous introductory texts on money-management from a Christian perspective, this book is the most comprehensive and readable text of the lot.
Austin's book is divided into 6 Sections:
1) Getting Debt-free. The author considers this the first level of financial fitness, an equivalent of laying a proper foundation upon which to build. At this early point in the text, he discusses the importance of tithing in your plan. Austin writes "we are not commanded to give generously. Rather, our giving is a test of sincerity of our love and our willingness to trust in God's utter faithfulness" (based upon 2Cor 8:8,9:8). Austin goes on to say "When you pray about your giving, may I encourage you to give to the full measure of your gratitude and cheerfulness. And continue to ask God to enlarge your heart toward Him so you can eagerly embrace the sacrifice needed to give all the more."
In addition, budgeting as well as the dangers associated with the misuse of credit cards are discussed.
2) Saving for Future Needs. This includes the principles of saving money in a secure, low-risk emergency fund (financial planners recommend 3 to 6 months living expenses; Austin recommends $10,000) as well as in an accumulation fund for big-ticket items that you anticipate purchasing within 1 to 5 years. He also includes advice on preparing to help your children to finance their college or technical education. He believes that, if parents have the financial means, they should consider helping with the expenses of a college education for their children. Emphasis is given to the benefits of investing for your children's education as early as possible. Powerful examples are given. Note that Austin believes that children should be responsible for a portion of their educational expenses as well. Advice on where to invest this money is given, including but not limited to Ed IRAs and 529 plans.
3) Investing Your Surplus. Once you are debt-free and have adequate savings in an emergency fund, the author believes you can then begin to take educated risks by investing your surplus in mutual funds. This section is a primer on investment basics and mutual funds.
4) Diversifying for Safety. Austin is a strong proponent of building an age-appropriate,diversified portfolio through mutual fund investing. For the typical investor, he advocates "dollar-cost-averaging" or "value-averaging" strategies versus market-timing strategies, although he does admit venturing into market-timing strategies in his personal investment approach (He did this professionally in the past, but does not recommend market-timing for the average investor. Reasons are given). This book includes a short quiz that enables the reader to see what their personal tolerance is for investment risk. Once you determine your tolerance level, Austin leads you through determining your appropriate portfolio mix and shows you how your mix should change as you go through the various financial stages of your life.
5) Retirement Countdown. Austin wants his readers to have a realistic view of their needs for retirement. He discusses how to properly lower your investment risk as retirement approaches.
6) Investing that Glorifies God. The book ends with a section entitled "Investing that Glorifies God, a Biblical Blueprint for Building Your Financial House on Solid Rock". This section is priceless. Austin essentially reminds the reader of the importance of an eternal perspective, and that our investing should glorify God by acknowledging His sovereignty, valuing His majesty, building His Kingdom, upholding His righteousness, seeking His wisdom, and enjoying His blessing.
Please consider the counsel given in this book. I have and it has changed my financial life.
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4 of 4 people found the following review helpful:
5.0 out of 5 stars
Take control of your finances and your future (and have fun), June 26, 2001
This review is from: Sound Mind Investing (Paperback)
This easily surpasses all the financial "do it yourself" books we've read yet! Finances from a Biblical perspective, presented in a fun, easy-to-read format. Not only that, but once you've digested the information, the book teaches and inspires you to actually get moving and make the changes that need to be made!
What we liked best: (1) looks at finances as a whole (debt, savings, investing, budgeting); (2) not afraid to go against conventional wisdom in order to teach the best way to handle money; (3) shows you how to do your OWN investing so you don't pay ridiculous fees to an advisor just trying to earn a commission off you (at the lowest cost possible); (4) includes lots of web resources for us internet users; and much, much more! We also decided to sign up for SMINow, the Sound Mind Investing web site, and have found it to be a great value.
Get this book, read it, and buy more copies for your family and friends, especially those who are just starting out...I wish I had this book in my hands 15 years ago! HIGHLY RECOMMENDED.
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