No More MAC 'n Cheese!: The Real-World Guide to Managing Your Money for 20-Somethings

by Andreana, Lise

• ISBN13: 9781770400900
• ISBN10: 1770400907
• Edition: CD
• Format: Paperback
• Copyright: 2012-01-16
• Publisher: Natl Book Network

Summary

No More Mac '~n Cheese! is aimed at young people who recently graduated from high school or college and out on their own for the first time. They may need to pay off student loans, secure a vehicle, start thinking about a down payment, mortgage, wedding, or retirement fund; all while trying to survive on more than just 99¢ noodles on an entry level salary. Nobody actually covers these topics in school. Whether you're a 20-something wanting to make the most of their financial independence; the parent of a young adult trying to instill some financial responsibility; or a member of a financial institution hoping to encourage the younger generation to start money management now, you will find sound advice within these pages.

Author Biography

Lise Andreana, CFP, is a frequent guest speaker at industry events and holds over 17 years of experience as a financial planner, during which time she has helped over 1,200 clients, ranging from retirees of the '30s and '40s, Boomers of '50s and '60s, and young adults of today. She wrote this book for the next generations of wealth accumulators: Generation Y and beyond.

Table of Contents

Introduction	p. xiii
The Difference in Finances between the Baby Boomers and Gen Y	p. 1
The Evolution of Personal Finances	p. 1
Give Your Parents the "Money Talk"	p. 5
Topics to Discuss with Your Parents	p. 6
Values	p. 6
Education	p. 7
Returning to the family home after graduation	p. 7
Steps for Students	p. 11
Course Selection Leading to Success	p. 11
Part-Time Work and the Student	p. 14
Volunteer Work	p. 16
From School to Workplace	p. 19
What Employers Want from You	p. 19
Decide What You Want from the Employer	p. 21
From Your Parents' Basement to Your First Apartment	p. 25
Begin with a Savings Plan	p. 26
Selecting an Apartment	p. 28
Set Goals	p. 31
Set Your Goals	p. 32
Step 1: Visualization	p. 32
Step 2: Goals, Position, and Strategy (GPS)	p. 35
Step 3: Dangers, Opportunities, and Strengths (DOS)	p. 37
Step 4: Treasure it, recycle it, trash it	p. 37
Examples of Goal Setting	p. 38
Create a Budget	p. 47
Needs and Wants	p. 47
Control your spending	p. 48
Budgeting to Live within Your Means	p. 50
The lifestyle your income will support	p. 50
A simple life	p. 50
A simple comfortable life	p. 51
Above average	p. 51
Luxury	p. 52
Prestige	p. 52
Create and follow a budget	p. 53
Typical budget	p. 56
Financial obligations	p. 56
Needs	p. 57
Wants	p. 58
Seize Savings Opportunities	p. 62
Examples of Financial Lifestyles	p. 62
Cassie's financial life plan	p. 63
Matt's financial life plan	p. 65
Sam's financial life plan	p. 67
Calculate Your Net Worth	p. 71
Examples of Net Worth	p. 71
Your Most Valuable Asset	p. 73
Calculating Your Net Worth	p. 76
Create a Safety Net: Insurance	p. 79
Consider What Your Should Insure	p. 80
Prioritize your insurance purchases	p. 80
Vehicle insurance	p. 80
Disability insurance	p. 81
Life insurance	p. 82
Health insurance	p. 82
Property insurance	p. 83
Critical illness insurance	p. 83
Travel Insurance	p. 83
Other insurance	p. 84
Learn by Example	p. 84
A Typical Employer's Benefit Plan	p. 87
Tips for Choosing an Insurance Provider	p. 88
Life and health insurance advisor	p. 89
Property insurance advisor	p. 90
Debt	p. 91
The Difference between Good Debt and bad Debt	p. 92
Understand What Your Lender Is Saying	p. 93
Helpful Credit Tips	p. 93
What to Do When Things Go Wrong	p. 95
Saving and Investing	p. 99
The Four Principles for Building Your Foundation of Wealth	p. 100
Debt control	p. 100
Delayed gratification	p. 101
Diversification	p. 102
Dollar cost averaging	p. 102
Priorities for Your Savings and Investments	p. 102
Priority 1: Emergency fund	p. 103
Priority 2: Where you should invest your savings for mid-term goals	p. 104
Priority 3: Investing for long-term goals	p. 104
Talk to a Financial Planner	p. 106
Know Your Money Style and Avoid the Pitfalls	p. 107
Get Financial Help	p. 111
Do-It Yourself and Group Learning	p. 111
Hiring an Advisor	p. 112
Selecting an advisor who can meet your needs	p. 113
Choosing your financial advisor	p. 117
Review Your Financial Plan Annually	p. 119
Buying a Vehicle	p. 121
Do Your Research before Buying a Vehicle	p. 122
Should You Buy a New or Used Vehicle?	p. 123
Should You Buy or Lease?	p. 123
Buying	p. 124
Leasing	p. 125
Buying a Home	p. 129
Terms You'll Need to Know	p. 130
Types of Housing	p. 132
Single-family home	p. 132
Townhouse	p. 133
Condominium	p. 133
Borrowing to Buy Your New Home	p. 133
The Importance of Location	p. 136
Get What You Want without Overpaying	p. 137
Tips for Couples	p. 143
How to Reconcile Your Money Management Differences	p. 145
Solutions for Who Pays for What	p. 146
Pool all the money into one account	p. 147
Equal contribution	p. 147
Contribute a proportional percentage of earnings	p. 148
Keep separate accounts	p. 148
Planning for Happiness While Protecting Yourself	p. 149
Getting Married	p. 150
Talk to your Parents	p. 151
Conclusion	p. 153
Samples
Differences between the Baby Boomers and Generation Y	p. 4
Comparing a Job with Benefits versus a Job without Benefits	p. 23
Cassie's Cash Flow Statement	p. 27
Cassie's Net Worth	p. 28
Setting Goals	p. 32
Matt's GPS Exercise	p. 40
Matt's Dos Analysis	p. 41
Matt's Treasure It, Recycle It, Trash It Exercise	p. 42
Sam's GPS Exercise	p. 45
Sam's DOS Analysis	p. 46
Matt's Net Worth	p. 72
Cassie's Net Worth Projection	p. 73
Cassie's Lifetime Income Potential	p. 74
Matt's Lifetime Income Potential	p. 75
Sam's Lifetime Income Potential	p. 75
Mortgage Comparison	p. 134
Exercises
Visualization	p. 34
Goals, Position, and Strategy (GPS)	p. 36
Dangers, Opportunities, and Strengths (DOS) Analysis	p. 38
Treasure It, Recycle It, Trash It	p. 39
Cash Flow Statement: Income	p. 54
Cash Flow Statement: Expenses	p. 55
Simple Lifestyle Budget	p. 59
Simple Comfortable Lifestyle Budget	p. 60
Above Average Lifestyle Budget	p. 61
Calculating Your Net Worth	p. 78
Questions to Ask a Potential Financial Advisor	p. 119
Steps for Purchasing Your First Home	p. 139
Quizzes
What Is Your Latter Score?	p. 49
What Type of Investor Are You?	p. 108
What Type of Financial Advisor Suits Your Needs?	p. 115
Should You Buy or Lease a Vehicle?	p. 127
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