“The money-management needs of the under-40 set today are just widely different from even 15 years ago.”

A lot of Geezeo users ask, “where do I start”? Gaining control of your finances can, at times, feel overwhelming. Sometimes it requires you change habits. Sometimes you have to learn new things. And sometimes, you just have to cut to the chase, get down to basics, and take action.

So I was pleased to ask Carmen a few questions about her book and get her thoughts on issues close to young people’s wallets.

Carmen, what compelled you to write the book Generation Debt: Take Control of Your Money: A How-to Guide?

I was a young editor at a personal finance magazine and I realized that there was a big hole when it came to the needs of young adults. At the time, a couple of year ago, most personal finance information and media didn’t have a 20-something graduating five-figures in debt and with no health insurance in mind. The money-management needs of the under-40 set today are just widely different from even 15 years ago. I wanted to address that. And mostly, I wanted to pull together my advocacy side with writing swathes of people don’t subscribe to personal finance magazines and don’t grow up exposed to good financial advice. It’s important now, more than ever, to be on your money-toes. Why not spread the word to regular folks? The advantage of having exposure to and knowledge of personal finance these days is an advantage that can mean the difference of living a life in constant financial strain and living a comfortable, in control life. I want to give as many people as possible that edge.

What do you see as the largest contributing factor(s) that keep young people (particularly women) from taking an active role in managing their finances?

Fear. It’s intimidating. They don’t teach personal finance in school, yet it’s a very technical life-skill we all should have. Some of us start out at the gate way ahead in terms of knowledge and exposure while many others learn from scratch and in practice. Learning the hard way is a difficult way to learn. Think of money management like mechanics. It has its own vocabulary, rules, changing products, etc. How many people know how to change their oil? It’s technical and anything technical, even if it’s a basic life skill, is intimidating.

I also think that there’s an element of struggle for many young adults graduating with a load of loans, then landing a great but low-paying entry-level job and trying to live on your own is a big burden. One our parents didn’t have. Just managing to keep your head above water can be overwhelming. Sometimes it feels better to hide your head in the sand!

Women have the added societal pressures of expectations, in terms of appearance and roles, but it’s only been a couple of generations where it’s the norm for women to live on their own, have a fulltime career and be partners in taking care of the household financially. We’re still blazing trails here! To adjust in two or three generations what has been the norm for centuries is difficult and so we have a funny relationship with money. The tradition of women as breadwinners hasn’t taken hold in a substantial way yet. All the more reason why we should be on top of things — plus, we live longer, decades longer on our own, especially as parents.

You break your book down into broad categories a person needs to control in order to get their finances in good order. Which of these chapters was most personal? Which do you think is most critical for our generation to master (Gen X and younger)?

Knowing when and how it’s OK to spend and when and how it’s good to borrow. There is a big fat corporate machine out there that wants you to spend, spend, spend — don’t be easily manipulated. Be selfish and protect yourself financially.

Everyone can read the book and get information but a big part of it is attitude and approach. How do you manage your money? Are you pretty much on top of things? Or are your bills all over the place? Do you know when you can and when you can’t afford something? And do you have a plan in place to get rid of debt and build some savings and then equity? It’s similar to keeping your body healthy. We all know what to do, but do we do it? And just like with dieting and exercise, if you integrate a manageable program into your everyday life (leaving room for slip ups here and there), you’ll be in great shape. If you make the decision to make money-management a regular part of your life, one that gives you a deserved element of control and comfort, you will always be taking care of yourself, and one day, your loved ones.

As for what I write about that is most personal for me, well, I’ve been through it all! My mother and I waited tables to help put me through undergrad and I still left with a nice chunk of debt. I also started on the job-front with little help except three months on my brother’s couch while I saved up a deposit for my own place (Thanks, bro!). I went into credit card debt just to get a futon to sleep on and some clothes to look decent in. And yes, I followed my own plan (credit card debt chapter!) to get out of debt years later. I now own my first home with the hubby and we even pay for our own insurance. Point to a page, I’ve been there! Self-made, through and through.

There isn’t a specific chapter on philanthropy so I’m curious how you see giving as part of a good financial plan. Is it unrealistic for young people fresh out of school to have the money to contribute to causes?

I would have loved to address that and I do get this question now and then. I grew up in a family that tithed (the practice of giving 10% of your income regularly to your church or charity) no matter how little money we had. Sometimes I had to ‘tithe’ with my time rather than cash, but I believe that giving back is an amazingly important and rewarding thing. Ten percent or ten dollars a month whatever you can afford you can afford it if you make it a priority to do so. I was always amazed in my lean days how I would find that extra $20 I needed to pay dues or the phone bill. Cash can be found, usually in those couple of dollars at the toll booth or newsstand or iTunes. No matter what your budget or income, more so when you’re young and no one else is depending on you yet (such as children), if you want to give back, find a way to give back. Make an automated deposit to your favorite charity every other month or even make it once a year if things are super tight. There’s always room in a budget to give back. And if and when you’re in such dire straits that you can’t give as much as you’d like, do what I did and hook up with a volunteer agency. Doing both can be doubly rewarding!

Politically speaking, students and young adults face a changing world .. and generally speaking, we aren’t standing up for our (financial) selves in the voting booths. You address some of these issues — like student loan reform— in your chapter “A Pricey Future”.

If you could boil it down to one financial issue our generation should consider critical for the next presidential election, what would it be?

Health care. As important as student loan reform is, we are all much more affected by the huge health care gaps in this country and it’s getting worse. Young adults are the fastest growing group declaring bankruptcy these days and a large % of this is due to medical debt. Young adults are the least likely to have health insurance. You have the advantage of time to pay off student loans but medical debt can go from $0 to $100,000 in a matter of days and that debt-load is a matter of life or death. It’s absurd. And I’ll stop there because I could go on and on with this one!

Can you tell us a bit about your upcoming book?
Let’s just say it’s going to help a lot of people.

I can’t wait! Thanks for speaking with us, Carmen, and thanks for writing such a clear and concise book. I think many Geezeo users will enjoy it, too. You can find out more about Carmen and buy her book by visiting her website, GenDebt.com.

Did your cable get shut off? Good. Crack open a book. Look for more financial book reviews here at the Geezeo blog.

P.S. Carmen is going to be featured as one of four experts on two upcoming CNBC specials of ‘The Millionaire Inside’ taping this week, airing on CNBC at 9pm next Tuesday, the 29th.

“First thing I did was buy a Playstation.”

Are video games just for kids? Of course not! But how do video games play into a strategy to be a millionaire by age thirty? This, I had to know…

Lucky for me, I had a chance to chat and laugh with Alan Corey. He’s not your typical 30-something. He’s an investor, comedy writer, and speaker. And oh yeah… he made a million bucks by the age of 30 and wrote a book about how you can, too. It’s appropriately titled, “A Million Bucks by 30″. How did Alan move from Atlanta to New York City and amass this kind of cash on an entry-level salary? How did he think and act differently from most of us? Check it out - you won’t be disappointed.

Alan, dude, you made it! How long have you been working on your goal to be a millionaire? What made you start?

I started at the age of 22 and amazingly enough it took me 6 years. Basically, I had a problem with authority, I really hated getting out of bed in the morning, and I wanted to improve my dismal dating life. I figured if I had a million dollars at a young age, it would help with all that. So I made it a goal of mine and with a bit of financial OCD, I luckily made it happen.

So, I’ve already heard about your “umbrella recycling” theory. What other ways did you manage to live like a king while investing 61% of your salary? (Readers take note: Alan was making $40K and living in uber-expensive New York City!)

I lived more like the king of the poorest nation on Earth. It was great - long periods of starvation, hardly any income, and prone to corruption. To maintain that awesome lifestyle I did things like going to “Fresh Baked” bakeries that throw their day-old goods in the trash right before closing and I’d be there to get them for free. Or I would be a market research guinea pig and fill out surveys for beer money. Anything to earn as much as I could, spend as little as I could, and not sacrifice my social life at the same time.

What I think is cool about your success is that you had to make a series of decisions to think differently from the crowd. Can you give us some examples where your behavior deviated from what you see as “the norm”? How did people react?

Sure, I lwas a landlord at 23. I owned two properties at 24. And just learned on the job. It was a bit overwhelming at first, but then it got easier over time and it just went from there. Basically college life was so much fun that I wanted to continue that lifestyle. So I saved as much as I could, bought a multi-family building, and moved in my friends. It was like Real World - Brooklyn. And just like with my college experience, many nights it was cheap beer, video games, and never getting laid.

What’s the best way to keep your “eye on the prize”?

Write it down, tell other people and make your goals known. Your site is excellent for that. Having that outside encouragement is great. Also I’ve heard writing your ambitions with a Sharpie directly onto your eyeballs is a good reminder too. Remember to write it backwards though, not what you see in the mirror. Otherwise you might accidently be focused on losing a million dollars. My good friend Pickpocket Steve learned that the hard way.

Were there ever times when you felt so far away from the goal that you wanted to give up, or blow the money you’d accumulated so far? Or, did the satisfaction of seeing your hard work, sacrifice, and dedication keep you going?

Yeah, of course there are weak moments. But then you look around and say, “Yeah, this sucks. But if I do this for 2 more years I’ll be a millionaire.” But most of the time I made everything a game to make it enjoyable. I made up a game called Mailbox Roulette where I would try to make sure each time I checked the mail that I had more paychecks in there than bills. Winning that for the first time was pure euphoria. It doesn’t take me much to get excited. I also get that excited watching the non-working group in dog shows.

Can you tell us about your first major investment? What were the obstacles, and how this made you feel when you successfully accomplished it?

First thing I did was buy a Playstation. Seriously. I figured if I had an entertainment alternative I would have second thoughts of taking a cab to see some band I’ve never heard of, paying an absurd cover charge, and then finding money to drink enough beer until I enjoyed the show. It gave me an out. That $300 spent probably saved me thousands over a course of a few years.

What’s been the best part of reaching your goal?

Helping others, freedom from authority, and sleeping till noon. Or maybe dating.

What’s the most outlandish or creative thing you did in pursuit of your goal?

I made up a music review magazine to get on a press list so I could see Outkast for free. The show was amazing! I’m still working on publishing that first issue. Any year now.

Finally, where can we get our hands on your book or see you in person??

Every bookstore should have it, and if they don’t have it, please request the bookstore to order 40 copies and then demand them to put it in the front of the store or on the “Staff Recommend” shelves, and maybe a few even next to the cash registers for those impulse buyers. Make sure they also order enough to displace all the other financial books anywhere else in the store. Then the next person that comes in won’t have the same problems you had. Ghandi taught me that, it’s called “be the change you want to see in the world.”

To see me in person, I would recommend my book signings rather than my front stoop. You can find that information on my website which I’ve named after a very handsome man. It’s at www.alancorey.com.

Ha! Thanks, Alan. Your book is hilarious and I wish you a lot of success (you guys can check out the first chapter at his website!). Let us know if any of the attractive ladies here at Geezeo ask you out and we’ll do a follow-up.

To see what Alan’s been doing with comedy, check out his involvement with Improv Anywhere skit, “No Pants Transit Day” at his blog.

Finally, check out what Alan says of Geezeo, when asked at his site about tools to use:

Lastly, if you are looking for something really cool online, I just got contacted by a really zippy website that I wish was around when I started out 7 years ago. It’s called Geezeo, and it’s like Facebook meets Quicken Online. You can set and see other people’s goals and you can also get the guilt of money off your chest in the confessional room. Basically it’s a free why to stay on top of finances in an interesting environment with like-minded peeps who are computer savvy (i.e. under 35).

‘Nuff said!

Silly me, I thought “DRIP” was just a setting on my beloved coffee maker.

In fact, I’ve recently learned that DRIPS could be a great investing strategy for someone like me. Are you like me? You might be, if any of the following apply:

+ You’ve got a long time horizon before retirement
+ You can only spare a little right now to invest for the long-term
+ You’d like to save yourself brokers fees and buy stocks from companies directly

What are DRIPs? Dividend Reinvestment Plans. I’m just starting to read about them and so far they sound very, very promising. You can buy stocks directly from the company (with minimal fees) in staggeringly small amounts. You agree to reinvest all dividends. This makes it possible to literally buy in tiny, tiny increments every paycheck. What a great way to supplement your other investing. Or, like me, the ability to buy and hold small blocks of stock.

I’ve been reading a book called “Eight Steps to Seven Figures: The Investment Strategies of Everyday Millionaires and How You Can Become Wealthy Too” by Charles Carlson. That title is long, but not nearly as seemingly long as the time horizon to pay off my student loans.

Yet, maybe like you, I’ve come to realize that I can’t put off investing just because I (currently) have loan debt. With time on my side it seems to make sense to start NOW. Buy-hold-buy-hold, etc.

DRIPs are very appealing because they don’t take much money to start. People profiled in the book treated these small investments as just another weekly bill. Soon, they had amassed enough that, along with the compounding effects of time, they’d accumulated a lot.

You can use Geezeo to track your expenses so that you can find those small amounts to invest. Small amounts over time equal big amounts!

Here are some links on DRIPs (sorry, no points for good design!):

http://www.fool.com/DRIPPort/WhatAreDRIPs.htm
http://www.dripinvestor.com/index.asp

Punk band, “The Drips”: http://www.myspace.com/thedrips