Product Description
Bill and Mary Toohey are average middle income people from a small Iowa town. Bill has been employed for 23 years as a Vocational Rehabilitation Counselor and Mary has worked for 20 years as an Office Manager for a small psychological firm. They started saving and investing in 1991 when their net worth was $63,000. Eight years later their net worth was $467,000. In other words, their assets increased by an average of more than $50,000 per year during that period while their income (not counting dividends and capital gains) averaged about $65,000 per year. But it wasn’t always easy. They have three children, Colleen (24), Tim (22), and Meghann (14). Tim has been severely disabled since birth and despite the challenges of helping Tim cope with his chronic illnesses, the Toohey family has been able to achieve financial freedom on a modest income. They were able to build a sizable nest egg in eight years while encountering some of life’s biggest expenses during the period. They helped to pay for their daughter’s college education and wedding, paid cash for a new car, and made several expensive home improvements. Despite those major expenses the Tooheys still managed to save 46% of their gross income and were listed among the “Best Personal Finance Managers in America” in the December 1994 issues of Money magazine. The Tooheys’ story, in an article written by Bill, appeared in the April 1997 issue of Money magazine. Mary co-authored an article published in the February 1998 issue of McCall’s magazine. In May, 1997 Bill was invited to speak at Money magazine’s Elgin Project seminar series. Money magazine “adopted” Elgin, Illinois and brought in speakers with expertise in personal finance. Former President Bush kicked off the event.
How did they do it? How do they think? How do they live? Is it possible to save so much and still have a decent life? Can my family do this? Get the answers to all these questions and more in a book written specifically for families with children who don’t earn big bucks.Amazon.com Review
Bill and Mary Toohey are about as average as a couple can be. They live in Iowa, pull down about $65,000 a year combined, and have three children. What’s not average about them is that they have a net worth of about a half-million dollars. They’ve paid off their mortgage, and they paid cash for their cars. Their oldest daughter graduated from college with no debts and with money in the bank. How did they manage? It takes a book to explain the particulars, but the executive summary is this: They lived on about half their income, and saved and invested the other half. Part of their plan is simply saying no to impulse purchases such as soft drinks and candy bars. (They show how they accumulated $26,733 in eight years by investing the money they didn’t spend on junk.) Their strategy involves, in part, shopping around for the best price on their big-ticket purchases. (They take you step by step through a few transactions, from research to purchase, so you can do this yourself.) But the biggest part is living small. They have a modest house (one bathroom). They don’t try to keep up with the Joneses. Their investment strategy is very simple, mostly stock index and bond funds. By never trying to be more than average, they made themselves extraordinary.
It’s hard to imagine that many people will be able to follow their entire program–that one-bathroom house will probably stop most readers in their tracks–and some of their ideas about cheap entertainment seem a little far-fetched. For example, if you’re thinking of taking the children to the circus when it comes to town, they advise, take them instead to watch the circus troupe setting up tents and feeding the animals. Imagine the family fun when the kids go to school and realize all their friends got to see the actual circus. Still, there should be plenty of useful advice in this Guide to Financial Freedom for any family. Most of it is simple and makes intuitive sense, and the Tooheys’ breezy, conversational writing style makes you feel as though you were sitting with them in their (small) living room while they shared it. Best of all, their plan clearly works. A half-million in savings on a middle-class income is a pretty good leg to stand on when offering advice. –Lou Schuler
This book is an easy read, easily done in one or two days. The book starts in 1991 and the family seems to live in the country. They talk about their money all throughout the book, how they saved thousands over many years. That does not inspire the struggling family nowadays. Their strategies deal with how much you can do without, keeping children at home all the time. They spend ALOT of time reading. The last 2 chapters almost preaches how to raise your child, nothing to do with financial matters. It was OK reading, I had a few days to take a mindless break.
Rating: 1 / 5
Obviously, many find this book inspirational. And it is. But remember: the authors had close to $500,000 in winter 1999. I would like to know where they stand now–after 3 years of a down stock market.
Rating: 3 / 5
Like most American married couples with children, the authors found themselves increasingly stressed by their financial responsibilities, with no real job security, their standard of living in constant jeopardy, and little promise of ever having enough time for their children or each other. The realisation that their family’s financial future was entirely dependent on benevolent employers and a lifetime of full-time work was a disheartening condition they wanted to change-quickly.
Unlike most Americans, in eight short years, the Tooheys managed to save nearly half their modest income while adding almost US$500,000 to their net worth. They now have enough money to cover most expenses for the rest of their lives-even if they never earn another paycheque. The Tooheys do not claim that this was easy, but it was doable. And it can be for you, too. They do not propose that you implement extreme changes or even suffer to get there. In fact, the point of this book is to provide strategies to achieve financial independence without earning more money, relocating, or changing jobs. Theirs is a moderate, non-threatening approach.
This book is understandable, informal, and conversational. It will challenge you to analyse how you do things and make creative adjustments so you can build assets without suffering. Because you aren’t paid a lot, you simply can’t afford to make big mistakes with your money, so you need to keep your head in the game and make smart choices. Learning, thoughtful reflection, and creativity lead to smart decisions and financial freedom without suffering. Anyone can just stop spending their income and pile up money, but it takes careful planning and creativity to build assets while still enjoying life. Learn how to build a large nest egg for your family, do it fast and accomplish it without suffering. This book will show the average family the way to financial freedom.
Bill Toohey (1952- ) and Mary Toohey (1953- ) lecture widely and have written several magazine articles on their sound money strategies. They were named among the “Best Personal Finance Managers in America” by Money magazine for the strategies for financial independence outlined in this book. Bill is a vocational rehabilitation counsellor, and Mary is an office manager. The couple live in Iowa and have three children.
Rating: 3 / 5
The writer needs to direct us to real contacts. Explain beeter where to go and who to ask for? I am still looking for a good finanial book for the working class….
Rating: 1 / 5
I am so surprised people liked this book! The advice was so obvious and simple–who doesn’t know this? There was much useless info–how to organize your bathroom, don’t spank your kids…what does that have to do with finances? I returned my copy because it was in poor condition but I would have tossed it anyway.
Rating: 1 / 5