Over 118 Lessons and Concepts

Chapters 1 & 2

Learning important financial skills can be entertaining

 

Chapter 3

Take the time to figure out what financial freedom means for you personally

Having a strong financial foundation early in life helps you avoid mistakes many people make later in life

Live below your means

Living below your means doesn’t mean you can’t buy luxurious things

More money is rarely the solution to money problems

Too many people focus on spending less when they should be focused on making more

Learn to get pleasure from saving money

 

Chapter 4

The secret to becoming wealthy isn’t about how much you make, it’s about how much you save

The difference between income and wealth

You don’t need to make a lot of money to become rich

Calculating net worth

Assets vs. Liabilities

Before taking advice from anyone, make sure they are qualified to have an opinion

 

Chapter 5

The dangers of debt

The dangers of credit cards

Credit cards aren’t bad but credit card debt is bad

Don’t spend money you don’t have even if you anticipate you will make it

Budgeting is about moderation, not elimination

The importance of a budget

The importance of allocating your paycheck as soon as you get it rather than waiting

Discretionary income

 

Chapter 6

Needs vs. wants

Giving to charity even when you don’t have a lot of money

 

Chapter 7

The five steps for going from paycheck-to-paycheck to financially free

Increasing your income takes hard work

The importance of not giving up on your goals

All successful people have made mistakes and failed; failure is not to be feared

The importance of changing your mindset

Breaking the limiting beliefs that are holding you back

You can have fun and be happy doing things that are free

 

Chapter 8

Stocks vs. bonds

Interest rates

Maturity dates

US Treasury bonds vs. high yield bonds

Issuing debt or equity to raise capital

Why stock prices move

Warren Buffett’s two rules of investing

Shareholder rights

 

Chapter 9

The dangers of not saving for retirement

Why planning to live on Social Security during retirement is a bad idea

The importance of starting to save early

Don’t take advice from broke people

Inflation

Taxes make it more difficult to achieve your financial goals

 

Chapter 11

IRA

401(k)s

Pay yourself first

Delaying purchases

Ten Times Test

Don’t think “I can’t afford this,” instead think “how can I afford this?”

Whether you think you can or you can’t, you’re right

 

Chapter 12

Compound interest

How much you need to save for retirement

Raise the expectations you set for yourself

 

Chapter 14

Emergency fund

 

Chapter 15

Taxes and penalties on retirement accounts

Automatic deductions

Company matching contributions

Vesting schedules

Cliff vesting vs. graded vesting

 

Chapter 16

Visualizing your goals

Six levels of retirement savings

Target date funds

Proactively look for ways to make more money

 

Chapter 19

Using interest rates to determine your next financial moves

Money can tear people apart

 

Chapter 20

Asset allocation

Types of stocks and bonds

Types of asset classes

Time horizon

Risk tolerance

Dollar cost averaging

Exchange Traded Funds (ETFs)

Ticker symbol

 

Chapter 22

For the financially irresponsible, more money often leads to more debt

Steps for getting out of debt

Wealthy people investigate money-making ideas rather than immediately dismissing them as scams and keep trying until they find something that works

Wealthy people have the mindset that they are destined to become rich

 

Chapter 23

Debt snowball method vs. highest interest rate method

Not letting loans to family and friends ruin relationships

 

Chapter 24

The dangers of making just the minimum payments

Importance of rewarding yourself along the way

Temporarily cutting expenses drastically and applying savings toward financial goals

 

Chapter 25

Collateral

Renting versus buying a home

 

Chapter 26

Private mortgage insurance (PMI)

FHA and Fannie Mae mortgages

Expenses when purchasing a home

Getting as low as a 3% down payment

Buy less home than you can afford

Additional monthly expenses of owners versus renters

 

Chapter 27

The initial principle balance reduction on mortgages is slow

How interest payments can add up over time

Half payments every two weeks method

Fixed rate versus adjustable rate

 

Chapter 29

There is more to life than money

The importance of exercising and eating healthy foods

Debt-to-income ratio

Loan-to-value ratio

Consequences of defaulting

Range of credit scores and what a good score is

How to improve your credit score

FICO score

How to check your credit score safely

Experian, Equifax, TransUnion

 

Chapter 30

Credit report vs. credit score

Checking credit report for errors

Identity theft

How a high credit score can save you money

The consequences of having a low credit score

How credit scores are calculated

 

And there are even more in the bonus chapter!