Ballers on Budgets: Book Review - Don't Buy the Bull

We've been intently following a few of the personal finance gurus over the last month in an attempt to not only gauge the current state of the economy, but also to find a common ground of advice that we all should take into consideration when deciding to spend, invest or save. After comparing the rantings and recommendations of several different "experts," it's no wonder that people are so confused and uncertain what to do or not do.

For every economist that declares we are headed in the right direction, there are two that say we are doomed, and every guru has different predictions about the stock market. Subscription based investment newsletters have lots of information and predictions differing from the mainstream advice which causes paralysis of analysis. The next thing you know you're hiding your money under your mattress, and a month from now some expert will say that we should have been doing that all along.

Cassandra Toroian addresses this constant differing of opinions in her book "Don't Buy The Bull" (review copy provided by the publisher) and attempts to dispel many of the myths surrounding investment advice.

"All of the 'advice' they were spewing at me made me realize that if not for my education, training and experience, I would have been terrified and confused about what to do with my investments," Toroian wrote when describing her experience on October 9, 2008, the day the market crashed.

She would go on to point out that knowing what to do with your money is a decision that you must take total responsibility for. You must educate yourself on the economy in relation to other countries, the stock market and the companies traded on the various indexes, and then enlist the help of others whom you trust to guide you on your own individual path of financial security.

The 23 myths dispelled in the book are to be used as a guide to recognizing when the advice you're hearing is plain "bull" and at times is even shocking to read since so much of the opposite is preached on television. Myth #1, "we are in for a long, slow recovery and it will be another five years before the economy is healthy" is particularly interesting because this is one most commonly agreed on by some experts.

According to Toroian, if our leaders (particularly the President) set the tone and created a "can do" atmosphere, consumer confidence would be high and everyone would spend again and thus begin the cycle of hiring and job creation. She also believes that the Federal Reserve acted quickly and took the correct action to prevent a global financial meltdown, a view that is highly debated among economists.

The book also dispels myths about real estate investing, leasing a car, prenuptial agreements and child allowances. Near the end of the book, Toroian advises against helping others unless it's through a charitable foundation which seems a bit contradictory considering the story she shares in the introduction about helping a homeless woman get back on her feet.

"Don't Buy The Bull" is a simple read that can be completed in a couple hours and Torian shares "in line" definitions for uncommon terms--a feature that is quite brilliant and keeps you from turning back and forth to read footnotes.

The main piece of advice to be taken from the book is that everyone's financial path is different and no advice fits all. It concludes with Myth #23, "You can do all this on your own." She admits that no one can, which is why there are so many experts drawing a paycheck. There will always be someone who needs advice and someone willing to give it. You just have to know when not to buy the bull.

Ballers On Budgets was founded in 2009 as a project dedicated to educating people on how to live within their financial means while increasing their social status within their community with the aim to provide resources, information, and alternatives to spending a lot of money while engaging in a socially active lifestyle.