The Neatest Little Guide to Personal Finance

by Kelly, Jason

• ISBN13: 9780452280618
• ISBN10: 0452280613
• Format: Paperback
• Copyright: 1999-01-01
• Publisher: Penguin Group USA

Summary

Combining friendly advice with solid expertise, Kelly's newest book provides guidance on how to figure net worth, get out of debt, maximize income, and plan an investment strategy for retirement.

Table of Contents

1. Your Path to Prosperity	1	(2)
2. Your Money and What You Do with It	3	(43)
Your Current Net Worth	3	(9)
Assets	4	(1)
Current Assets	4	(1)
Investment Assets	5	(1)
Personal Property	5	(1)
Real Estate	6	(1)
Add Up Your Assets	7	(1)
Liabilities	7	(1)
Current Liabilities	8	(1)
Loans	8	(1)
Mortgages	9	(1)
Add Up Your Liabilities	9	(1)
Your Net Worth	9	(1)
If It's Less Than Your Annual Income	10	(1)
If It's Between One and Three Years' Annual Income	10	(1)
If It's More Than Three Years' Annual Income	10	(1)
If It's More Than Five Hundred Years' Annual Income	11	(1)
Continue Watching Your Net Worth	11	(1)
Your Income	12	(1)
Write Down Your Income	12	(1)
Look for Ways to Earn More	12	(1)
Your Expenses	13	(30)
Track Every Expense	13	(2)
Why You Should Reduce Expenses	15	(1)
To Get out of Debt	15	(1)
To Keep Your Money Instead of Paying Taxes	16	(1)
To Put Time and Good Habits on Your Side	16	(1)
To Prepare for Emergencies	17	(1)
To Invest for a Brighter Future	17	(1)
The Simplest Spending Plan in History	17	(1)
Examine Your Expenses and Find Trouble	18	(1)
Reduce Big Expenses	19	(1)
Housing	19	(2)
Automobile	21	(3)
Vacations	24	(1)
Home Electronics	25	(1)
Home Appliances	26	(1)
Reduce Small Recurring Expenses	27	(1)
Dining Out	27	(2)
Entertainment and Recreation	29	(2)
Telephone	31	(1)
Clothing	33	(1)
Holidays, Birthdays, and Gifts	34	(1)
Gambling	35	(1)
Banking	35	(1)
Personal Health: Care and Fitness	36	(2)
Keep the "Personal" in Your Finances	38	(2)
Become a Frugal Freak	40	(1)
Buy the Best but Buy It Once	40	(1)
Buy in Bulk--Especially During a Sale	40	(1)
Join a Superstore and Buy Wholesale	41	(1)
Buy out of Season	42	(1)
Make Trade-offs to Stay Happy	42	(1)
Make Changes Gradually	43	(1)
Redirect Your Free Cash	43	(3)
Establish an Emergency Fund	43	(1)
Start a Regular Savings Plan	44	(2)
3. Escaping and Avoiding the Bad Kind of Debt	46	(30)
Why Debt Is Bad	46	(3)
It Makes You Earn Money for Somebody Else	47	(1)
It's Very Expensive	48	(1)
It Grows and Grows and Grows	48	(1)
Getting Out of the Debt You're In	49	(4)
Pay Your Most Expensive Debt First	49	(2)
Consolidate into a Cheaper Loan	51	(2)
Staying Out of Debt in the Future	53	(1)
Spend Less Than You Earn	53	(1)
Convert Debt Payments into Savings	53	(1)
Use Credit Cards the Right Way	54	(5)
Never Use Department Store Cards	54	(1)
Keep No More Than Two Major Cards	55	(1)
Find Cards with No Annual Fee	55	(1)
Find Cards with Incentive Plans	55	(2)
Pay Your Balance in Full for a Free Loan	57	(1)
Consider a Debit Card Instead	58	(1)
Getting a Good Car Loan and a Cheap Price	59	(10)
Conduct Thorough Research	60	(2)
Start at a Bank or Credit Union	62	(1)
Pay a Lot and Pay the Rest Quickly	62	(1)
Do Not Lease	63	(2)
Out-deal the Dealer	65	(1)
Buy at the Right Time	66	(1)
Consider Dealer Financing	67	(1)
No Silly, Expensive Options	68	(1)
Enjoy Your New Car	68	(1)
Getting a Good Home Equity Loan	69	(2)
Beware the Upfront Fees	70	(1)
Choose the Right Rate	71	(1)
Checking Your Credit Report	71	(1)
Bankruptcy as a Fresh Start	72	(4)
4. Managing the Good Kind of Debt	76	(32)
When Debt Works in Your Favor	76	(1)
Home Loans	77	(21)
Whether to Buy or Rent	78	(1)
The Cost of Owning	78	(4)
How Long You Will Live in the Area	82	(1)
The Opportunity Cost of Buying	83	(2)
How Much You Can Borrow	85	(1)
Your Income	85	(1)
Your Long-term Debt	86	(1)
Know Both Limits	87	(1)
Pay a Lot and Pay the Rest Quickly	88	(1)
Half the Time, Twice the Savings	89	(1)
More Frequent Payments	90	(1)
Same Amount of Money, but Faster	91	(1)
Types of Mortgages	92	(1)
Fixed-Rate	92	(1)
Points	93	(1)
Other Fees	93	(1)
Adjustable Rate	94	(1)
The Adjustment Formula	95	(1)
The Adjustment Frequency	95	(1)
Balloon Loan	95	(1)
Choosing the Right Mortgage	96	(1)
Choosing the Right Lender	96	(1)
Refinancing	97	(1)
Student Loans	98	(6)
Student Aid and Scholarships First	100	(2)
Look at Cheaper Schools	102	(1)
Use Debt-Beating Payment Strategies	103	(1)
Business Loans	104	(4)
5. Smart Banking	108	(13)
Credit Unions are Better Than Banks	108	(3)
How to Find and Get into One	109	(1)
Proximity Doesn't Matter	110	(1)
Brokerage Firms Are Better Than Banks	111	(3)
Get a Good Checking Account	114	(4)
Profile of a Good Checking Account	114	(2)
Manage It Well	116	(1)
Your Checkbook	116	(1)
Automate Your Life	117	(1)
Put the ATM on Your Side	118	(2)
Beware Bank Savings and Investments	120	(1)
6. The Neatest Little Investment Primer	121	(49)
Prepare to Invest	121	(11)
What People Mean by "the Market"	122	(1)
The Three Assets and Their Objectives	123	(1)
Stocks for Growth	124	(1)
Bonds for Income	125	(1)
Money Market for Stability	125	(1)
Comparing the Three	125	(1)
Understanding Risk	126	(1)
Risk and Reward	126	(1)
Time and Risk Are Your Friends	127	(2)
How Much Risk Is Right for You?	129	(1)
How Much Time Do You Have?	130	(1)
How Do You Feel About Investment Risk?	131	(1)
How Old Are You?	131	(1)
How Much Money Do You Have Outside of Your Investment Goals?	132	(1)
Choose an Acceptable Risk Level for Your Goals	132	(1)
Mutual Funds	132	(13)
What Is a Mutual Fund?	132	(2)
Open-end vs. Closed-end Funds	134	(1)
Load vs. No-Load Funds	134	(1)
Expense Ratios	135	(1)
Why Mutual Funds Are So Good	136	(1)
Types of Mutual Funds	137	(1)
Stock Funds	137	(1)
Large Company	137	(1)
Medium Company	138	(1)
Small Company	139	(1)
Sector	139	(1)
Bond Funds	140	(1)
Money Market Funds	140	(1)
Global and International Funds	141	(1)
Index Funds	141	(1)
Your Mutual Fund Portfolio	142	(1)
Allocating for Your Goals	143	(2)
When and How to Sell a Fund	145	(1)
Stocks	145	(17)
Why Stocks Are Good Investments	146	(1)
Stocks Allow You to Own Successful Companies	146	(1)
Stocks Have Been the Best Investments over Time	147	(1)
How You Make Money Owning Stocks	148	(1)
Through Capital Appreciation	148	(1)
Through Dividends	148	(1)
Total Return	149	(1)
All About Stock Splits	149	(1)
Mutual Funds Are Best for Most People	150	(1)
How to Evaluate Stocks	151	(1)
Growth Investing vs. Value Investing	151	(1)
Growth Investing	151	(1)
Value Investing	153	(1)
Combing Growth and Value	154	(1)
Three Stock Classifications You Should Know	154	(1)
Company Size	155	(1)
Industry Classification	156	(1)
Growth or Value	157	(1)
Start with Name-Brand Companies	157	(1)
Buy on the Dips	158	(1)
Stay the Course	159	(1)
Ignore the Gurus	159	(1)
Forecasting or Marketing?	160	(1)
We Could All Be Gurus	161	(1)
You Knew This Was Coming, so Why Worry?	162	(1)
Your First Investment Account	162	(4)
Discount Brokerage Firms	162	(2)
Some Smart Choices	164	(1)
Reinvest Dividends	164	(1)
Dollar-Cost Average	165	(1)
Your Path to Investment Prosperity	166	(4)
Save the Minimum Amounts Needed	167	(1)
Build a Core of Mutual Funds	167	(1)
Buy Stock in Name-Brand Companies	168	(1)
Look for Buying Opportunities	168	(1)
Discover the Companies of the Future	169	(1)
7. Investing to Retire	170	(10)
Think About Retirement Now	170	(2)
Put Time on Your Side	170	(1)
Minimize Taxes	171	(1)
Benefit from Matching Contributions	172	(1)
Types of Retirement Accounts	172	(5)
Individual Retirement Accounts(IRAs)	173	(1)
Traditional	173	(1)
Roth	174	(1)
Simplified Employee Pension(SEP)	174	(1)
Choosing the Right One	175	(1)
Company Retirement Plans	175	(1)
401(k)	176	(1)
403(b)	177	(1)
Social Security	177	(1)
How Much to Invest for Retirement	178	(2)
8. All About Insurance	180	(20)
The Right Way to Handle Insurance	180	(4)
Premiums and Deductibles	181	(2)
Don't Waste Money on Small Items	183	(1)
Get as Much Coverage as Possible	183	(1)
Insuring What You Own	184	(5)
Automobile Insurance	184	(1)
The Four Types of Coverage	184	(1)
How to Save on Auto Insurance	185	(1)
Homeowner's or Renter's Insurance	186	(1)
Three Components	186	(1)
Dwelling Coverage	187	(1)
Personal Property Coverage	187	(1)
Liability Coverage	188	(1)
How to Save on Homeowner's Insurance	188	(1)
Umbrella Insurance	188	(1)
Insuring Yourself and Your Family	189	(11)
Health Insurance	189	(1)
Fee-for-Service and Managed Care	189	(2)
Getting the Best Value on Health Insurance	191	(1)
Consider Outpatient Clinics	192	(1)
Disability Insurance	193	(1)
How Much for How Long	193	(1)
Employer Plans	194	(1)
Individual Plans	194	(1)
How to Save on Disability Insurance	195	(1)
Life Insurance	196	(1)
Term Life Insurance	197	(1)
Permanent Life Insurance	197	(2)
How to Save on Term Life Insurance	199	(1)
9. Taxes, Toddlers, and Tools	200	(13)
Cut Your Taxes	200	(3)
Don't Get a Refund	200	(1)
Start a Business	201	(2)
Contribute More to Retirement	203	(1)
Stop Worrying About Audits	203	(1)
Teach Your Toddlers About Money	203	(1)
Tools to Help You Get Ahead	204	(9)
Banking and Credit Unions	205	(1)
Books	205	(1)
Buying a Home	205	(1)
Community Organizations	206	(1)
Credit Cards	206	(1)
Credit Reports	206	(1)
Debt	207	(1)
Discount Brokerage Firms	207	(1)
Free Mutual Fund Trading, Fairly Cheap Stock Trading	207	(1)
Dirt Cheap Stock Trading	207	(1)
Insurance	208	(1)
Long-distance Phone Companies	208	(1)
Mail-order Companies	209	(1)
Neatest Little Publications	209	(1)
Personal Finance Software	210	(1)
Student Loans	211	(1)
Superstores and Wholesale	212	(1)
10. Aloha!	213
Net Worth Worksheet	214	(2)
Monthly Expenses	216	(2)
Yearly Expenses	218