INDEX
accounts,
acknowledging credit card debt, 49
advantages of paying with cash, 52–53
affordability versus ownership, 150–151
allocation, percentage, 194–197
annual
contribution to a 401(k), 178
credit card fees, waiving, 54–56
household income and buying a house, 141, 143
percentage rate, see APR percentage yields, 193
anticipatory gratification, 122
anxiety, debt and, 33
APR, negotiating a lower, 59
aspects of success, three, 20–21
asset allocation, robo-advisors and, 199
assets, income-producing, 42
asymmetry, the age of information, 22
automated investment process,
automating
savings, 112
automation process, mastering the, 186
autonomy,
budgeting and total, 82
lack of, 19
bad investment, fear of making a, 19
balance,
paying more than the minimum, 67–68
paying off your credit card, 57
bank statements, budgeting and your, 86
behavioral
change and debt repayment, 52
modification, student loans and, 67
bonds, 165
bottom line, limiting choices to increase the, 23
bottom lines, businesses and increasing, 83
buddy system, establishing a, 65–66, 75
budget,
creating a flash, 51
budgeting,
cash flow and, 81
clothing and, 87
core concepts of, 80
debt elimination and, 87
food and, 87
passion, 79–116
prioritizing for, 87
your spending behavior and, 87
budgeting
and financial bumpers, 82
and going out to eat, 86
and restrictive behaviors, 91–92
and total autonomy, 82
building new productive habits, 31
buyer's remorse, avoiding, 141–142
buying a car, 118
buying a house, interest and, 39
before you are ready, 142
buying experiences, 95
capital, investing and, 167
car,
interest and financing a new, 39
leasing a, 126
negotiating when buying a new, 129
paying in cash when buying a, 128
selling your, 65
the investment of a new, 124–125
cash,
advantages of paying with, 52–53
buying a car and paying with, 128
cash flow, budgeting and, 81
cash-flow management and robo-advisors, 199
certificate of deposit, 166
clothing, budgeting and, 87
college major, the importance of a, 63
college savings and robo-advisors, 199
compound interest, 165
confidence,
increasing your, 34
confidence-building,
fear and, 18
the decision of, 21
confidence-mining techniques, learning, 24
construction your retirement, 155–184
consumer loans, high interest rates and, 41
contributions, 401(k), 178
core concepts of budgeting, 80
cost of attendance and a student loan, 63
costs,
monthly variable, 51
covered ratio,
financial and the, 162
monthly living expenses, 162
credit, interest rate averages on typical types of, 40–41
credit card
balance, paying off your, 59
companies and customer acquision, 43
fraud, 59
interest payments, 56
late fees, 47
marketing, 43
representatives, how to talk with, 54–55
rewards, 57
statements, budgeting and your, 86
credit card debt,
acknowledging your, 49
average household, 48
buying a house and, 142
seven steps to paying off, 48–54
wealth generation and, 42
credit cards,
disadvantages of multiple, 46–47
high interest rates and, 41
linking your checking to your, 192
making extra cash to pay off, 106
managing multiple, 46
credit cards
and media persuasion, 44
and self-talk, 44
credit score, 58
credit utilization, monitoring, 57–59
credit utilization ration and FICO
customer acquisition, credit card companies and, 43
customers, offering fewer options to, 22
daily spending and credit cards, 44–45
day-to-day purchases, funding, 52–53
debt, 165
acknowledging credit card, 49
asking your partner about, 132–133
average household credit card, 48
eliminating credit card, 42, 48
eliminating, 37
excuses to not pay off, 38
high risk, 40
homeownership and, 147
increasing your income and paying off, 101–102
length of the loan and, 40
paying for a car in cash and, 128
positive psychological impact of paying down, 51–52
quickly eliminating your, 34
seven steps to paying of credit card, 48–54
size of the loan and, 40
student, 61
three variables of, 40
your partner and discussing, 130–131
debt
and anxiety, 33
and fear, 19
and the riskiness of the borrower, 40
and financial leverage ratio, 152
elimination, budgeting and, 87
free, staying, 97
debt payments,
making higher, 93
debt repayment and behavioral change, 52
debts,
buying a house and juggling, 142–143
listing out your credit card, 50–51
debt support and social media, 75–76
decisions, financial, deflecting phrases that avoid, 29–30
deferring your income, 188–189
deflecting phrases that avoid financial decisions, 29–30
depreciation of a new car, 124–125
discretionary cash, debt and, 42
disproportionate spending, 84
distraction, instant gratification and, 123–124
divorce rates and the price of engagement rings, 135–136
down payment, saving for a, 144
down payments, homeownership and, 147–148
downsizing, socioeconomic, 99–101
due dates, problems managing credit card, 47
eating out, spending and, 95
education, three alternatives to higher, 70–74
education system, job market and the, 61
emergency credit card, 56
emergency fund,
linking your checking to an, 192–193
employer match, 401(k), 179
encouraging self-talk, the benefits of, 34
engagement ring,
how much to spend on an, 120, 134–136
purchasing an, 118
entrepreneur, making money as an, 103–107
equity, 165
exchange traded funds, 166
expense categories, determining your, 86–87
expenses,
creating a list of your fixed, 51
getting overwhelmed by, 15
listing out all of your, 90
external control, freedom from, 20
Facebook, debt support and, 75
family and financial topics, 27–28
fear,
constant debt and, 19
making choices and, 18
FICO credit score, credit utilization and, 58
finance charges and leasing a car, 126
financial
accomplishment, desired, 33
base, creating a solid, 15
behaviors, learning good, 24
bumpers, budgeting and, 82
decisions, automating your, 187–189
destiny, how to control your, 17
ecosystem, creating a healthy, 24
habits, creating good, 34
health and postponing life's milestones, 130
intelligence, accruing, 94
judgment, internalize sound, 34
management, short-term affordability and, 126
mistakes, the income trap and, 112
outlook, increasing your, 94
potential, fears and, 18
practices, determining good, 96–99
questions to ask your significant other, 131–134
red flags, 132
stability and finding your purpose, 21
stress and savings, 159
success and setting goals, 31–33
financial success,
social values and, 99
financing a new car, 39
finding your purpose, financial stability and, 21
fixed expenses, creating a list of your, 51
flash budget,
creating a, 51
student loans and a, 69
food, budgeting and, 87
fraud, credit card, 59
goal self-perpetuation, 82
designing a system to reach, 188
developing a path to reach, 75–76
retirement, 171
going out, budgeting and, 87
graduating, the importance of, 63
gratification, anticipatory, 122
habit loop, breaking the, 28–31
habits,
building new productive, 31
the benefits of, 185
the power of, 30
purchasing, 49
high interest rates, 41
high-risk debt, 40
higher education, three alternatives to, 70–74
homeownership,
pitfalls of, 141
homeownership
house,
deciding how much to spend on a, 120
interest and buying a, 39
housing payments, take-home pay and, 97–98
identity theft, 59
income,
analyzing your, 79
deciding on your ideal, 133
increasing your, 101
listing out your sources of, 90
income-producing assets, young professionals and, 42
income-producing investments, 42
information, technology and, 22
information asymmetry, the age of, 22
Instagram, debt support and, 74
intent, publicly declare your, 74–75
compound, 165
credit cards and, 39
investing and, 164
interest
credit card payments and, 56
on student loans, 64
rate and lenders, 40
averages on types of credit, 40–41
investigating your expenses, 85–86
investing, the benefits of, 164–167
investing in your retirement, 155–184
investment in loss, 25
investments,
income-producing, 42
purchasing, 93
IRA,
grasping the concept of the, 34
job market, education system and, 61
labor, shortage of highly skilled, 72
large-ticket purchases, optimizing, 117–154
late fees, credit card, 47
leasing a car, 126
length of the loan, debt and the, 40
limiting choices to increase the bottom line, 23
loan, debt and the length of the, 40
loan maturity, 40
loan officers, student loans and, 60–61
loans, student, 60–78
long-term financial success, 157–158
long-term goals, 32
designing a system to reach, 188
developing, 34
long-term savers and a 401(k), 178
lower balances and robo-advisors, 203–204
lower management fees and robo-advisors, 201–202
maintenance and robo-advisors, 203–204
making a mistake, fear of, 19
managing multiple credit cards, 46
marriage, age of, 130
aiming to achieve, 21
lack of, 19
receiving rewards and achieving, 25
maximizing your spending, 94–95
media persuasion and credit cards, 44
metric, setting your baseline, 118–119
milestones, postponement of life's, 130
minimum balance, paying more than the, 67–68
monthly living expenses covered ratio, 162
monthly variable costs, creating a list of, 51
mortgages, high interest rates and, 41
mutual funds, 166
negotiating
a lower APR, 59
a raise, 108
when buying a new car, 129
new car, the investment of a, 124–125
nondiscussion of financial matters, 29–30
numbers, dealing with large and small, 118–119
optimizing your spending, 99
overspending, reasons for, 47
overwhelmed, fear of feeling, 19
ownership versus affordability, 150–151
paradox of choice, 22
suggestive programming and the, 23
parents, moving in with, 65
passion, finding your, 21
path of least resistance, the, 22–24
paying more than the minimum balance, 67–68
paying yourself first, 111
payment schedules, difficulty managing credit card, 47
payments, making higher debt, 93
percentage allocation, 194–197
personal finances, open and honest conversations about, 134
poor, fear of being, 19
poor financial decisions, 19
positive psychological impact of paying down debt, 51–52
positive psychology, the power of, 26
power of habit, 30
principle, loans and, 40
productive habits, building new, 31
programming, suggestive, 22–23
progress, tracking your savings, 113–114
promotion, asking for a, 107–110
psychological benefits of interrogative self-talk, 27
psychological impact of paying down debt, 51–52
psychology, the power of positive, 26
publicly declaring your intent, 74–75
purchases,
optimizing large-ticket, 117–154
purchasing habits, constructing a full inventory of, 49
purchasing investments, 93
purpose,
aiming to achieve, 21
lack of, 19
pursuing your, 21
raise, how to ask for a, 107–110
rate of return, investing and your desired, 164
Reddit, debt support and, 74
renting versus homeownership, 149–150
representatives, how to talk with credit card, 54–55
resistance, the path of least, 22–24
resistance to paying off debt, 38
responses, confidence-building, 18–19
restrictive behaviors, budgeting and, 91–92
retirement, 155–184
discussing savings for, 133
retirement
funds, link your checking to your, 194
goals, 171
rewarding yourself, student loan payments and, 68–69
rewards,
achieving mastery and receiving, 25
credit card, 57
risk tolerance, investing and weighing your, 164
riskiness, loans and, 40
Roth individual retirement account, 172–174
saving for your retirement, 155–184
savings,
asking how much your partner has in, 131–132
savings
and financial stress, 159
fund, building a, 93
goals, paying yourself first and, 111
automating your, 112
making extra cash to build up your, 106–107
making sure you have enough, 156–157
self-education and mastering your money, 21
self-talk,
credit cards and, 44
interrogative, 27
the benefits of encouraging, 34
self-taught experience, the, 72–74
short-term affordability and financial management, 126
short-term goals, 32
designing a system to reach, 188
developing, 34
size of the loan, debt and the, 40
slush fund, building a, 161–163
small balances and student loans, 66–67
small numbers, dealing with, 118–119
social media
and financial success, 99
social values, financial success and, 99
socioeconomic downsizing, 99–101
spending,
disproportionate, 84
optimizing your, 99
student debt, 61
student loan,
cost of attendance and a, 63
interest and taking out a, 39
student loans, 60–78
behavioral modification and, 67
buying a house and, 142
high interest rates and, 41
homeownership and, 147
interest on, 64
linking your checking to your, 192
long-term payment schedule for, 69
making extra cash to pay off, 106
success,
financial, and setting goals, 31–33
take-home pay
tax advantaged investment strategies, robo-advisors and, 202–203
tax-loss harvesting, robo-advisors and, 199, 202–203
technology, leveraging, 185–205
total cost of ownership, calculating the, 127–128
total cost of purchase, 39
Traditional individual retirement account, 174–175
travel, spending too much on, 47
Twitter, debt support and, 74
urbanization, homeownership and, 147
waiving annual credit card fees, 54–56
wealth generation, credit card debt and, 42
wedding,
paying for a, 118