{"id":235722,"date":"2018-03-27T11:08:59","date_gmt":"2018-03-27T18:08:59","guid":{"rendered":"http:\/\/getrichslowly.org\/?p=235722"},"modified":"2023-12-05T14:25:15","modified_gmt":"2023-12-05T21:25:15","slug":"get-money","status":"publish","type":"post","link":"https:\/\/www.getrichslowly.org\/get-money\/","title":{"rendered":"Book review: Get Money by Kristin Wong"},"content":{"rendered":"

\"Get<\/a><\/p>\n

Over the past decade, I’ve attended a variety of camps and conferences to speak to people about money. Most of these events are money-related, but every once in a while I’m asked to speak at a non-financial function.<\/p>\n

In 2011, for instance, I was on a panel at the International Game Developers Association<\/a> summit, which is a conference for videogame designers. (How perfect for nerdy ol’ me!) My colleagues and I spent an hour discussing the “gamification” of personal finance<\/a> \u2014 learning to manage money using techniques more commonly associated with games.<\/p>\n

Think of your favorite games \u2014 especially video games. What makes them fun? What makes you want to play again? How can these elements be extracted from game design and used in real life? In this case, for promoting smart personal finance? Over the past few years, I’ve seen this idea discussed a few times, but nobody’s ever really taken the time to explore the idea at length. Until now.<\/p>\n

Today, former GRS staff writer Kristin Wong<\/a> released her first book, Get Money<\/em><\/a>, which is all about applying game-playing principles to money management.<\/strong> “This book gamifies personal finance so that you’re motivated to take control of your money,” Wong writes. “Most books have chapters, but being more action-oriented this book has ‘levels’ that you must ‘beat’.”<\/p>\n

I love this concept, and I love this book.<\/strong><\/p>\n

Like any good modern money manual, Get Money<\/em> includes a supporting website<\/a> that features downloadable templates and worksheets.<\/p><\/blockquote>\n

<\/span>Stage I – Power Up<\/span><\/h2>\n

Wong groups Get Money<\/em>‘s “levels” into three stages, the first of which covers core financial topics.<\/p>\n

She begins where I’ve learned to begin with people new to money management: She asks her readers to “define their mission”. In every good game, you have a clear objective that you’re trying to complete. To win at the game of money, you need clear objectives too.<\/strong> “The secret to successfully managing long-term,” Wong writes, “is to think of money as a tool<\/a> to support what matters to you, then give your money an actionable mission.”<\/p>\n

After you have a plan, your first assignment is to build an emergency fund<\/a> to cope with unexpected expenses. Why is this so important? Wong writes, “As unnecessary and as much like overkill as it may seem, an emergency fund is a crucial first step toward getting your money in order for one simple reason: it empowers you.”<\/p>\n

Next, Wong walks readers through the thrill of thrift and budgeting. Okay, thrill might be stating it a little strong. But Get Money<\/em> does a great job of explaining why frugality is a virtue, how it’s a practical tool that allows you to cut costs on the unimportant things so that you can spend more on the stuff that matters<\/a>.<\/p>\n

Wong also explains how budgeting doesn’t have to be restrictive. Done right, a budget helps you create a plan to achieve the mission you’ve set for yourself, a way to “win” the game of money.<\/p>\n

To trim spending, Wong encourages readers to consider the budgeting inverted pyramid:<\/p>\n

\"Spending<\/p>\n

When you make cuts, start at the top of this pyramid and work your way down. Start by trimming “variable wants”, then move on to “fixed wants”, and so on. I had never heard of this concept before, but I think it’s valuable. (And, in fact, I intend to incorporate the idea into a workshop I’m doing in June!)<\/p>\n

The final “level” of Stage I is thinking about how money affects your relationships.<\/p>\n

<\/span>Stage II – Optimize<\/span><\/h2>\n

As with any game, after you’ve mastered the basics, it’s time to move on to more difficult (and more rewarding) challenges. Once you’ve learned how a game’s controls work and what the essential mechanics of gameplay look like, then you’re ready for more interesting obstacles.<\/p>\n

In the game of personal finance, that means learning how to optimize and upgrade your actions and accounts.<\/p>\n

If you havne’t already done so, for instance, Wong recommends taking the time to research the best bank accounts and credit cards. If you’re stuck with a Wells Fargo checking account that charges you a $10 per month service charge, it’s in your best interest to find a free checking account — and a savings account<\/a> that pays more than 0.01% interest. If your credit card doesn’t offer perks and rewards that work with your life, find a better one.<\/p>\n

For those with debt, gamification is a perfect<\/em> way to pay it off. Instead of letting the process drag you down, turn debt reduction into a “mini-game”. That means doing things like using the debt snowball<\/a>, sure, but it also means looking for ways to “supercharge” debt repayments: taking advantage of windfalls, selling the stuff you no longer want or need, and looking for other ways to earn more money.<\/p>\n

But optimization isn’t just about paying off debt and building a better credit score. Wong spends an entire chapter teaching how to “de-consumerize your brain” by overcoming emotional spending, avoiding cognitive biases, and making mindful decisions with money.<\/p>\n

<\/span>Stage III – Grow<\/span><\/h2>\n

The final stage of Get Money<\/em>‘s financial gamification challenges readers to grow their wealth snowball<\/a>. “Concepts like budgeting, frugality, and conscious consumption are important,” Wong writes, “but nothing will turn your finances around better than simply making more money.”<\/p>\n

In this final section, she covers three essential topics:<\/p>\n