Contents
Part 1: Your Financial Foundation
1 Your Financial Base
Understanding Personal Finance
Evaluating Where You Are
Determining Your Net Worth
Looking for Hidden Financial Assets
Accounts
Mutual Funds
Stocks (Equities)
Bonds
Emergency Money
Protecting Your Financial Base
401(k) Plans
Compound Interest
Lower Interest Rates
The Best Possible Bank Accounts
A Budget
Learning Opportunities
2 Choosing the Right Bank Accounts
Do You Have the Accounts You Need?
Checking Accounts
Savings Accounts
Money Market Accounts
Certificates of Deposit
All Banks Are Not Created Equal
Commercial Banks
Credit Unions
Thrifts
Banking Online Versus Online Banking
Beware of Bank Fees
Overdraft Fees
ATM Fees
3 Budgeting Your Living Costs
Why Budgets Have Such a Bad Rep
Everybody Needs a Budget
What Your Budget Should Include
Nonroutine Expenses
Routine Expenses
Trimming the Fat: Analyzing Your Expenses
Fixed Versus Variable Expenses
Nondiscretionary Versus Discretionary Expenses
Spending Ratios
One Job, Two Jobs, Three Jobs, Four …
Sticking with It
Budgeting Websites
Budgeting Apps
Part 2: Building Your Credit
4 Your Credit History, Report, and Score
Building Your Credit History
When Enough Is Enough
When to Get Help
Your All-Important Credit Score
Why Your Score Matters
How Your FICO Score Is Determined
Getting a Copy of Your Credit Report
5 Finding the Best Credit Cards
The Invention of Credit Cards
Getting a Card
Cosigners and Secured Cards
How Many Cards Should You Have?
Types of Cards
Charge Cards
Fixed-Rate Cards
Variable-Rate Cards
Elite Cards
Rewards Cards
Prepaid Cards
Understanding Annual Fees
Other Fees to Watch For
Late Fees
Cash Advance Fees
Discretionary Fees
Credit Limit Increase Fees
Copy Fees
Account Reopening Fees
One-Time Processing Fees
Making Sense of Interest
Paying Down Your Balance
6 The Truth About Credit Card Debt
Resisting the Urge to Spend, Spend, Spend
Knowing When to Use Your Card
Sometimes Cash (or Debit) Is King
Understanding Credit Card Debt
Getting to a $0 Balance
Credit Counseling, Debt Settlement, and Bankruptcy
Credit Counseling
Debt Settlement
Bankruptcy
Credit Card Safety
Safety Tips
Electronic Safety Tips
Part 3: Paying Off Your Student Loans and Debt
7 Student Loan Debt and Costs of Education
Types of Student Loans
Determining How Much You Owe
Paying Off Your Student Loans
Does a Graduate Degree Makes Sense for You?
8 Debt Consolidation and Payback Options
How Much Debt Do You Have?
Paying Off Bills, One at a Time
Transferring Credit Card Balances
Alternatives to Balance Transfers
Refinancing Loans
Considering Debt Consolidation
Part 4: Your Money and Your Career
9 Employed, Unemployed, Underemployed
The Ups and Downs of the Job Market
Are You Employed, Unemployed, or Underemployed?
Exploring Your Options
Asking for a Raise
Looking for Another Job
Staying Where You Are
10 Employer-Sponsored Benefits
What Are Employer-Sponsored Benefits?
The Real Cost of Hiring You
Employer-Provided Health Plans
Employer-Sponsored Retirement Plans
Other Retirement Plan Options
11 Surviving on Unemployment
The History of Unemployment Compensation
Accessing Unemployment Compensation
If You’re Denied Benefits or Your Benefits End
Stretching Your Compensation Dollars
Staying in the Game While You’re Unemployed
Finding Job-Hunting Help
Part 5: Your Savings
12 Cutting Costs
Spending in America
Housing Costs
Utilities
TV, Internet, and Phone
Insurance and Taxes
Refinancing Your Mortgage
Transportation Costs
Food Costs
Personal Insurance and Pension Costs
Health-Care Costs
Entertainment Costs
Clothing Costs
Charitable Contributions
13 Your Savings Options
Where to Save Your Money
Savings Accounts
Money Market Accounts
Money Market Funds
Certificates of Deposit
Treasury Bills and Treasury Notes
The Magic of Interest
14 Your Investing Options
When to Start Investing
Your Investment Goals Matter
What Kind of Risk Are You Willing to Take?
High-Risk Investors
Moderate-Risk Investors
Conservative Investors
Mutual Funds
Types of Mutual Funds
Advantages of Mutual Funds
Exchange Traded Funds
The Stock Market
The Major U.S. Stock Exchanges
Knowing What Stocks to Buy
Enlisting the Help of a Broker
Understanding the Risks of the Stock Market
Bonds
Part 6: Big-Ticket Purchases
15 Buying Versus Leasing a Car
Car, Truck, or Something Else?
Renting a Car
Sharing a Car
Owning a Car Costs More Than You Think
Buying a Car
Financing Your Car
Cash Back Versus 0 Percent Financing
Leasing a Car
Pros of Leasing
Cons of Leasing
Before You Lease
New or Used?
Safety Counts
Best Places—Online and Off—to Shop for a Car
At a Dealership
Online
Helpful Apps
16 Owning Versus Renting a Home
The Mystique of Owning a Home
Advantages of Renting
Advantages of Buying
The Downside to Taxes
Enlisting Help
Qualifying for a Mortgage
The Down Payment
Your Income and Expenses
Getting the Right Mortgage
Fixed-Rate Mortgages
Adjustable-Rate Mortgages
Finding Your Dream Home
Types of Homes
Location, Location, Location
Protecting Your Investment
17 Insuring Yourself and Your Property
Insurance 101
Insurance Must-Haves
Types of Policies You Might Need
Health Insurance
Auto Insurance
Property Insurance
Disability Insurance
Insurance You Don’t Need
Dental Insurance
Flight Insurance
Credit Life and Disability Insurance
Life Insurance for Your Kids
Shop Around and Save
When You’re Not Covered
Document Your Losses
Don’t Give Up
Prepare Your Claim Carefully
Get Help
Part 7: Relationships and Money
18 Life, Love, and Money
Footloose and Fancy-Free
Living Together
Financial Pros of Living Together
Financial Cons of Living Together
Getting Married
What About Prenups?
Filing Jointly or Separately?
And Baby Makes Three
Divorce and Financial Issues
Borrowing Money from Family or Friends
19 Choosing Life Insurance
Nearly Everybody Needs Life Insurance
Term Life Insurance Versus Cash Value
Which Type Makes Sense for You?
How Much Life Insurance Do You Need?
Shopping for Life Insurance
20 Wills, Powers of Attorney, and Health-Care Directives
Everyone Should Have a Will
The Advantages to Having a Will
Creating Your Will
Powers of Attorney
Advance Health-Care Directive
Living Will
Health-Care Proxy
Part 8: Looking to Your Future
21 401(k)s and IRAs
Why Every Year Counts
401(k) Plans
Participation in 401(k)s
Taking Advantage of an Employer Match
Investing in Your 401(k)
When to Adjust Your Contributions
Tax Advantages of 401(k) Plans
Managing Your 401(k) When Changing Jobs
Understanding Vesting
Getting Money Early from Your 401(k)
Individual Retirement Accounts (IRAs)
Contributing to an IRA
Roth IRAs
SEP-IRAs
Timing Your IRA Contributions
22 Working with Professional Financial Advisers
Know Thy Finances, Know Thy Adviser
Do I Need a Financial Adviser?
Understanding Fiduciary Responsibility
The Who’s Who of Financial Advisers
Financial Planners
Certified Financial Planners
Financial Consultants
Bank Customer Service Representatives
Certified Public Accountants/Personal Financial Specialists
Insurance Agents
Money Managers
Finding a Reputable Financial Adviser
Meeting with Potential Advisers
Finding an Adviser Online
Go with Your Gut
Financial Adviser Red Flags
Too-High Fees
Conflicts of Interest
Past Bad Behavior
More Financial Adviser Don’ts
Misrepresentation
Who Has Custody of Your Money?
“May I Borrow a Few Bucks?”
Ignoring You or Keeping You Out of the Loop
Appendixes
A Glossary
B Resources
C Helpful Forms
