Personal Finance in Your 20s & 30s For Dummies

Title Page

Copyright Page

Table of Contents

Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

Beyond the Book

Where to Go from Here

Part 1 Getting Started with Personal Finance

Chapter 1 Your Financial Checkup

Calculating Your Financial Worth

Defining net worth

Figuring what you own : Financial assets

Determining what you owe : Financial liabilities

Netting the difference

Grasping the Importance of Your Savings Rate

Calculating your income and outgo

Assessing the change in your net worth

Understanding and Improving Your Credit Score

Deciphering how lenders use credit reports and scores

Obtaining your credit reports and fixing errors

Getting your credit score

Improving your credit reports and score

Comprehending Your Investment Options

Examining Insurance Coverage

Identifying Common Financial Mistakes Young Adults Make

Chapter 2 Budgeting, Goal Setting, and Valuing Saving

Developing a Savings Mindset

What It’s Worth : Valuing Savings over Time

The power of continual savings

The rewards of earning a (slightly) higher annual return on your investment

Budgeting and Boosting Your Savings

Setting and Prioritizing Your Savings Goals

Identifying common goals of accomplished savers

Valuing retirement accounts and financial independence

Dealing with competing goals

Saving When You’re Strapped

Chapter 3 Using Loans and Paying Down Debts

Eyeing the Causes of Generational Debt

Making the Most of Loans

Dealing With Student-Loan Debt

Tracking your student loans and making timely payments

Prioritizing the payback of student loans

Using education tax breaks

Weighing the costs and benefits of education expenditures

Making the most of student loans, grants, and other financial aid

Benefits for military people

Paying Off Consumer Debt

Kicking the credit-card habit

Discovering debit cards : Convenience without credit temptation

Lowering the interest rate on consumer debt

Negotiating better rates from your current credit card

Tapping investments to reduce consumer debt

Paying down balances

Getting Help for Extreme Debt

Seeking counseling

Considering bankruptcy

Preventing Consumer Debt Relapses

Chapter 4 Everything Credit : Scores and Reports

A Primer on Credit Reports and Credit Scores

Differentiating between credit reports and credit scores

Understanding how credit scores are determined

Valuing of a good credit score

Jump-starting your credit score as a young adult

Getting Your Hands on Your Credit Reports and Scores

Recommended websites for free credit scores

Websites to avoid

Scrutinizing Your Credit Reports to Improve Them

Identifying errors and getting them fixed

Boosting your credit score

Preventing Identity Theft

Part 2 Saving and Earning More

Chapter 5 Proven Ways to Spend Less and Save More

Containing Housing Costs

Reducing rental costs

Slicing homeowner expenses

Cutting Your Taxes

Managing Food and Restaurant Spending

Trimming Transportation Expenses

Finessing Fashion Finances

Relaxing on a Budget

Taming Technology Spending

Keeping Down Insurance Costs

Getting Affordable and Quality Professional Advice

Handling Healthcare Expenses

Chapter 6 Taxes : Reduce Them When You Can!

Understanding Taxable Income

Comparing Marginal Taxes

Changes from the Tax Cut and Jobs Act Bill

Reducing Taxes on Work Income

Contributing to retirement plans

Using health savings accounts

Deducting self-employment expenses

Increasing Your Deductions

Lowering Investment Income Taxes

Investing in tax-free money market funds and bonds

Selecting other tax-friendly investments

Making your profits long term

Enlisting Education Tax Breaks

Preparing Your Tax Return and Minimizing Your Taxes

Chapter 7 Housing : Comparing Renting and Buying

The Ins and Outs of Renting

Seeing the benefits of renting

Considering the long-term costs of renting

Completing your rental application

Figuring the Costs of Owning and Making It Happen Financially

Deciding to buy

Comparing the costs of owning versus renting

Considering your overall financial health

Calculating how much you can borrow

Accumulating your down payment

Finding the Right Property

Working with Real-Estate Agents

Financing Your Home

Understanding your mortgage options

Deciding which mortgage type is best for you

Avoiding negative amortization and interest-only loans

Getting your mortgage approved

Putting Your Deal Together

Chapter 8 Relationships and Money

Handling Roommates

Living-Together Contracts

Getting Married

Understanding Your Money Beliefs and Practices

Examining your money history

Exploring your attitudes toward money

Understanding your friends and money

Making sense of your environment and money

Getting a Grip on Procrastination Where Money Is Concerned

Diagnosing procrastination

Coming to terms with why you may procrastinate with money issues

Overcoming money avoidance

Chapter 9 Making the Most of Your Career

Getting Your Career Going

Putting everything in order

Educating and training your way to career success

Seeking value for your education dollars

Investing in your career

Exploring Entrepreneurial Options

Starting a small business

Purchasing a small business

Investing in a small business

Changing Jobs or Careers

The Young and the Unemployed

Understanding how joblessness can hit younger adults harder

Accessing unemployment benefits

Taking action

Part 3 Investing for Your Future Goals

Chapter 10 Successful Investing Principles

Examining Bonds and Other Lending Investments

Investing in bonds

Considering the downsides to lending

Exploring Stocks, Real Estate, and Small-Business Investments

Socking your money away in stocks

Generating wealth with real estate

Going the small-business investment route

Considering Options, Cryptocurrencies, and Other Hot Vehicles

Opting for options

Calculating cryptocurrencies

Noting leveraged and inverse ETFs aren’t investments

Getting a Handle on Investment Risks

Establishing goals and risks

Comparing the risks of stocks and bonds

Spreading Your Investment Risks

Understanding why diversification is key

Allocating your assets

Holding onto your investments and shunning the herd

Selecting an Investment Firm

Evaluating Pundits and Experts

Chapter 11 Making the Best Use of Bank Accounts

Looking at Different Types of Banks

Brick-and-mortar banks

Online banks

Other choices

Understanding Your Bank Account Options

Transaction accounts

Options for getting cash

Savings accounts

Banking Online

Evaluating a bank : What to look for

Protecting yourself online

Considering Your Alternatives

Brokerage accounts with check writing

Money market funds

Chapter 12 Portfolios for a Purpose

Before You Begin Investing

Investing Nonretirement Account Money

Emergency money

Long-term money

Investing Retirement Account Money

Establishing and prioritizing retirement contributions

Allocating money in employer plans

Designating money in plans you design

Investing for Education

Understanding the importance of applying for financial aid

Paying for educational costs

Chapter 13 Real-Estate Investing

Understanding Real-Estate Investment Pros and Cons

Evaluating Simpler Real-Estate Investments

Assessing Residential Housing Investments

Investing in Commercial Real Estate

Shunning Sure-to-Lose Real-Estate Investments

Researching Where and What to Buy

Considering economic issues

Taking a look at the real-estate market

Examining property valuation and financial projections

Digging for a Good Deal

Part 4 Insurance : Protect Yourself, Your Loved Ones, and Your Assets

Chapter 14 Taking Care with Health Insurance

Making Sure You’re Covered

Transitioning your coverage

Seeing how Obamacare changed your coverage

Recent developments and likely future changes

Finding Your Best Health Plan

Selection of doctors and hospitals

Plan benefits and features

Shopping for Health Insurance

Uncovering the best policies

Dealing with Obamacare’s high health insurance prices

Handling insurance rejection

Health Savings Accounts : Tax Reduction for Healthcare Costs

Chapter 15 Safeguarding Your Income

Protecting Your Income for You and Yours : Disability Insurance

Understanding disability coverage you may already have

Determining how much disability insurance you need

Identifying useful disability policy features

Shopping for coverage

Protecting Your Income for Dependents : Life Insurance

Assessing your current life insurance coverage

Determining how much life insurance to buy

Deciding what type of life insurance to buy

Shopping for life insurance

Caring for Your Loved Ones : “Peace of Mind” Insurance

Chapter 16 Home, Auto, Renter’s, and Other Insurance Policies

Protecting Your Home and Possessions : Homeowner’s and Renter’s Insurance

Dwelling coverage

Personal property protection

Liability insurance

Renter’s insurance

Natural disaster protection

Shopping for homeowner’s insurance

Insuring Your Car

Liability protection

Collision and comprehensive

Riders you should bypass

Getting a good buy

Avoiding Policies That Cover Small Possible Losses

Extended warranty and repair plans

Home warranty plans

Dental insurance

Credit life and credit disability policies

Daily hospitalization insurance

Cell-phone insurance

Little stuff riders

Part 5 Your Information Diet

Chapter 17 Using Media Resources

Going Online : The Wild West of Advice and Predictions

Eyeing the real cost of “free”

Being aware online

Using the web for gathering information

Getting Financial Perspectives and Advice from the Media

Being a smart news consumer

Separating the best from the rest

Trusting unnamed “sources” is a bad idea

Understanding that political partisans are hazardous to your wealth

Chapter 18 Professionals You Hire

Seeing the Value of Professional Advice

Considering Financial Advisors

Preparing to hire a financial advisor

Finding good financial advisors

Interviewing advisors

Taming Your Taxes with Help

Working with Real-Estate Agents

Using Online Resources to Find Service Providers

Angi

HomeAdvisor

Other resources

Part 6 The Part of Tens

Chapter 19 Ten Ways to Save on a Car

Don’t Buy a Car in the First Place

Pay Cash : Shun Leasing and Borrowing

Consider Total Costs

Compare New with Used

Understand a Car’s Real Value Before Negotiating

Take Care of Your Car

Explore Your Servicing Options

Drive Safely

Take a Lean and Mean Insurance Policy

Track Tax-Deductible Auto Expenses

Chapter 20 Ten Things to Value More than Your Money

Investing in Your Health

Staying active and at a healthy weight

Using fitness trackers to monitor your activity level

Making and Keeping Friends

Appreciating What You Have

Minding Your Reputation

Continuing Education

Having Fun

Putting Your Family First

Knowing Your Neighbors

Volunteering and Donating

Caring for Kids

Chapter 21 Nearly Ten Things to Know about Apps

You May Well Get What You Paid for with “Free” Apps

Conduct and Manage Financial Tasks

Use Apps Only from Legitimate Companies with Lengthy Track Records

Consider the Alternatives to an App

Keep Focused on Your Spending

Settle up with Friends But Beware Fees

Save Money on Commonly Purchased Items

Tap into the Latest Economic and Financial Data

Invest with Confidence

Index

EULA