Get Rich Slowly: The Unconventional Guide to Mastering Your Money

I bet many of you have read something at Get Rich Slowly. It’s one of the earliest personal finance blogs and I have been reading it on and off for years. Luckily, J.D. Roth (founder of GRS) lives in Portland and I get to hang out with him occasionally. He is a huge inspiration to many bloggers and it’s a privilege to know him.

J.D. has been writing about personal finance for over a decade. Over this time, he transformed his life from being $35,000 in debt to having over a million dollars in the bank. How did he do it? You can read Get Rich Slowly from the beginning or you can check out his new Get Rich Slowly guide. The guide is centered on J.D.’s latest book – Be Your Own CFO. He has been working on this for the past year and he assured me it’s his best work yet. J.D. just sent it to me a few days ago and I’m still going through it.

Become your own CFO

JD was a business owner and he did a meticulous job with the finance there.  However, like many of us, J.D. didn’t run a tight financial ship at home.  He hit rock bottom in 2004 after bouncing another check and missing another payment. After that, he decided to run his personal finance like his business and drafted a 3 year plan to get out of debt. It worked! He tracked his expenses, improved his cash flow, and JD, Inc. became debt free in 2007. He wants you to become your own CFO and he will show you how with his Get Rich Slowly guide.

Here is how the book is laid out.

  • Missions, Goals, and Action Plans – This helps you figure out your goals and an overall plan for your financial life.
  • Process Improvement – Here’s how to organize and automate your finances.
  • Financial Reports – Track your monthly expenses, net worth, and saving rate.
  • Budgets – You either love them or hate them.  J.D. explains why you need a budget and helps you create one.
  • Profit – This section focuses on growing your profit (income – expense).
  • Overhead – Examine your household spending and see how you can reduce your monthly expenses.
  • Revenue – Increase your income.
  • Saving and Debt Reduction – What you should do with your extra savings.
  • Investing – Put that extra money to work.

My impression

J.D. is first and foremost a storyteller. He isn’t your typical personal finance guru. He relates his personal experience to make his work an interesting read. That can be difficult when it comes to personal finance. As you can tell, I love J.D.’s writing. It’s an easy read and there are many practical action steps that you can take.  Life has been a bit crazy lately, so I haven’t finished the book yet. However, I already learned something from the first chapter. It’s important to figure out why you want to save and invest. Why do I want to retire early? Many of us focus on how to become financially stable, but we don’t take the time to figure out why.

Here is J.D. –  “It’s important to be clear about your purpose so that you’ll remain motivated when times get tough, and so that you’ll be able to make better decisions as the CFO of You, Inc. To begin, you need a mission statement.”

You need a mission statement to give yourself purpose and to keep you going strong. As for me, I focused on early retirement, but I never wrote down a clear mission statement. I made sure the cash flow worked. We saved diligently over many years. We live a modest lifestyle. Why did we save and invest when other people are enjoying their money all around us?

My mission statement – I want to spend lots of quality time with families and friends in a low stress environment, live a comfortable lifestyle, and experience new adventures together.

My old engineering job was very stressful and time consuming. Leaving the rat race gave me more time and reduced my stress level quite a bit. Mrs. RB40 still works, so that’s one thing we are working on. Our life is pretty comfortable right now. It’s not extravagant, but we’re not lacking for any essentials. As for adventures, everything is a new adventure to a kid. Now that RB40 Jr. is a bit older, we can travel a bit more. Next week we’re going to Hawaii and I’m pondering an extended trip to Thailand next year.

Life is generally good at the moment. We are working on some things, but we are adhering to the core of my mission statement. Life is not quite perfect, but we’re getting there. Perfection is overrated anyway.

What can I learn?

Our finances are pretty stable at the moment. I’m sure I can learn more new things as I go through J.D.’s book, though. For one, our finances are too complicated. It seems like we have too many pots on the fire which is a source of stress for us. Anyway, check out J.D.’s guide if you’re a fan. If you are a blogger, you need to read this book as well. It will improve your writing. We all need to be more entertaining while trying to help people improve their finances.

J.D.’s book Become Your Own CFO is part of the Get Rich Slowly guide. You can preview the book from the promotional page. Just search for “Preview the Guide.”

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Last weekend, Mrs. RB40 went to TEDxPortland and she is kind enough to share her experience with us. Have you been to an inspirational event like this? Check out some of the talks online and let her know what you think. A space filled with 3,000 people can cause major paralysis to a super introvert such as myself.  But I really wanted to attend a TED event and finally got to do so at this past weekend’s 4th ever TEDxPortland. I missed the first three years due to other obligations, so when someone I knew who happened to be a […]

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