Three Personal Finance Book Anniversaries: Lessons Learned

I’ve solely authored three personal finance trade books so far during my life and 2024 is a milestone year.

2024 is the anniversary of Saving On A Shoestring (my first book published 30 years ago in 1994) and Investing On A Shoestring (published 25 years ago in 1999). In addition, four years ago on August 3, 2020, my latest book, Flipping A Switch: Your Guide to Happiness and Financial Security in Later Life, was published.

Flipping a Switch discusses 35 financial, social, and lifestyle “flipped switches” (a metaphor for transitions) in later life. It was inspired by a conference speaker who noted that people who diligently save for retirement for decades must suddenly “flip a switch” from saving to spending down their assets. Each chapter has “How to Flip This Switch” action steps for readers.

 

All three books are available on Amazon and sales for Flipping a Switch remain steady. Earlier this year, the book reached #8 and #14 in Amazon’s wealth management and retirement planning categories, respectively. This followed a mention in a nationally syndicated newspaper article. A similar thing happened in 2021, when it ranked #7 and #14, respectively after another AP article.

 

Below are five lessons I’ve learned from being a three-time personal finance book author:

 

Decide Your Publishing Route- There are three options: traditional publishers that pay an advance against earnings and provide the most support, hybrid publishers where authors self-fund certain book expenses in exchange for specific services (e.g., copy-editing, book cover design), and self-publishing, where authors take on all publishing responsibilities and bear all costs. My 1990s books each had a traditional publisher while Flipping A Switch has a hybrid publisher.

 

Have Reasonable Expectations- You could make less than minimum wage when you add up time spent writing a book proposal, shopping it around, and writing and marketing a book. For both self-published and traditionally published books, average sales are low for the majority of authors but can be significantly higher for those with substantial platforms or bestselling titles. Median book-related earnings for all authors in 2022 were $2,000 and over 90% of self-published books sell less than 100 copies. By those standards, Flipping a Switch is doing well.

 

Do Your Own PR- Even traditional publishers quickly move on to the next book once yours is published. That’s why a few select social media platforms that your target readers use are critical to get the word out. For example, I use Facebook, LinkedIn, and X. Ideally, start pitching a book idea before you even start writing. Example: I am mulling over a new book called Money After 70. Prepare a media kit for your book with interview questions, an author bio, and a headshot photo.

 

Show Your Unique Value- To get a book published, you must show that its content is unique and convince marketing, as well as editorial, decision-makers at publishing companies. This requires a detailed review and analysis of comparable titles and pitches tied to current events or trends. Book publishers are also impressed by authors with existing social media and professional connections.

 

Work Smarter, Not Harder- Books need not start “from scratch.” For many non-fiction authors, myself included, books start with a compilation of previous writing (e.g., blog posts and articles) and/or presentations (e.g., speeches, webinars, and classes). It is also important to have a “why” for writing a book (e.g., building credibility for a business brand) and strong passion for the topic.

The End of Your Life: Will it Be Good or Bad?

 

A frequently used quote is that “nothing is certain in life except death and taxes.” One of the topics that I wrote about in my book, Flipping a Switch: Your Guide to Happiness and Financial Security in Later Life, is having a “good ending” to your life. 

But what exactly does that mean?

For many people, a “good ending” means dying in peace, preferably at home with loved ones nearby. In addition, most people want a “Niagara Falls” death versus a long period of decline. In other words, to live well for as long as possible and then “go over the edge” and die quickly.

Other hallmarks of a “good ending” to life include the following:

    Organized Financial Records- Prepare a “financial center” (e.g., desk drawers) for documents like insurance policies; recent income tax returns; bank, investment, and credit card statements; and copies of a will, living will, etc. Make sure trusted parties have access, if needed.

 

   Personalized Financial Statements- Provide trusted parties with a current net worth (assets minus debts) and cash flow (income minus expenses) statement, contact information for financial advisors (e.g., lawyer, insurance agent, etc.), and login information for digital assets.

   Advance Directives- Contact an attorney to prepare a living will and health care power of attorney. Doing this will avoid “hospital hallway huddles” by stressed out relatives and ensure that your personal wishes regarding end-of-life care are respected.

 

   Buried Hatchets- Reach out to estranged family and friends with words like “thank you,” “I love you,” “please forgive me,” and “I forgive you” before it is too late. Apologize to those you love if you hurt them and tell friends and family how much they mean to you.

 

   Post-Death Instructions- Leave instructions for a memorial service agenda and charitable tribute contributions and select and prepay funeral and burial services. Another way people can take charge of their personal “ending” is by writing their own obituary.

 

Recently, I witnessed and personally experienced four features of a bad (financial) ending:

 

   Financial Infidelity- Don’t lie or withhold financial information. Doing this erodes trust and makes it very difficult for family, heirs, and fiduciaries (e.g., executor) to move forward.

 

   No Financial Statements- Don’t force your loved ones to be “forensic accountants” and have to reconstruct your finances from statements and a checkbook register. It is not easy to do!

 

   No Funeral Plans- Don’t force a family member to have to unexpectedly put a 4- or 5-figure cremation or funeral bill on a credit card because no plan or set-aside funding was available.

 

   No Digital Assets Inventory- Leave a list of logins for digital devices and online accounts. Don’t force your survivors to try to track this data down or permanently have to live without it.

Bottom line: 

    Make the time, while you are able, to take actions that increase the liklihood of having a good ending to your life. It is a gift to yourself and your family.

Flipping a Switch: Lessons for Younger Adults

 In 2020, I wrote the book Flipping a Switch to describe 35 transitions experienced by older adults. The target audience was clearly the age 55+ set, but occasionally I am asked if younger adults can also benefit. My answer: an enthusiastic Yes!

Below are eight ways that Flipping a Switch content may be useful to younger readers:

 

Understanding Your Parents Time Horizon- An insightful chapter is Green Bananas, ROLE Calculations, and Lasts, which describes the changed time orientation of older adults who have lived more years than they have left to live. Understanding this mindset is critical.

 

Tax Diversification- Sprinkled throughout the book are references to required minimum distributions (RMDs) and their impact on older adults’ taxes. Younger adults are advised to save for retirement in a combination of tax-deferred, taxable, and tax-free accounts.

 

Savings Check-Ups- Chapter #1 describes “super saver” ants who accumulate large sums during their careers and have difficulty “spending down.” Young adult ants may want to do periodic savings reviews and enjoy bucket list experiences early in life if they can afford it.

 

Bridge Activities- Several chapters in Flipping a Switch talk about keeping busy and finding fulfillment in later life, including continued work in some capacity. Young adults can lay the groundwork for this with side hustle “bridge jobs” and/or volunteer activities.

 

Social Security Benefits- Younger adults can plan proactively to boost this important source of income in later life by limiting work history gaps and through side hustle income sources for government workers in jobs that do not participate in Social Security.

 

Family Story-Telling- In Flipping a Switch, older adults tasked with sharing family stories were advised to groom a “successor storyteller” to transfer stories, photos, and documents (e.g., Ancestry.com reports and birth/death certificates) to. Interested younger adults should step up.

 

Good Health- Good health is a constant theme as people gain about 2,500 “free” hours when they are no longer working: time for nutritious meal preparation, physical activity, etc. Young adults need to practice good health habits, also, to increase their likelihood of a healthy old age.

 

A Good Ending- The last chapter of Flipping a Switch describes things that older adults can do to assure a peaceful and orderly end to their life. Unfortunately, not all people make it to their golden years, so planning is important at any age. Key tasks include the preparation of legal documents (will, living will, durable power of attorney) and organizing financial records.

 

In summary, a book written for older adults has many useful insights for people in their 20s, 30s, and 40s. The overall message is that everyone has "switches to flip" and that planning ahead for future life transitions is useful. 

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.