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Index
Humane Society
TABLE OF CONTENTS
FOREWORD
CHAPTER 1:
What Is a Budget and Why the Need for One?
First Step to Financial Success
Habits Consume Money
The Components of a Budget
Fixed Bills
Variable Bills
Discretionary Funds
Analyzing Your Budget
A Typical Budget
Budgeting and Other Considerations When Starting a Business
How Elder Care Affects a Budget
Should I Use a Software Program?
CHAPTER 2:
What is the Federal Deposit Insurance Corporation?
Checking Account
Savings Accounts
Money Market Account
When Picking an Account, Watch the Fees
Online Banking
Telephone Banking
How to Use an ATM
The Bank Statement
Keep the Checkbook Balanced
How Overdraft Protection Works
What is ChexSystems?
CHAPTER 3:
Why Save
Four Simple Steps for Setting Financial Goals
The Earning Power of Saving
Easy Ways to Save
Do These Things Actually Add Up?
CHAPTER 4:
Compound Interest Works When You Start Early
Start Saving Now
Save Money Automatically
Saving For College Expenses
Section 529 Plans
Coverdell Education Savings Accounts (ESAs)
Rethinking Budget and Savings after a Divorce
CHAPTER 5:
What Is a Financial Advisor?
How Financial Advisors Are Paid
Additional Financial Professionals You May Need
CHAPTER 6:
Medical Insurance
Auto Insurance
Life Insurance
Disability Insurance
Short Term Disability
Paid Leave: Sick Leave and Emergency Leave.
Long-term Disability
Homeowner’s Insurance
Forms of Coverage
Liability Coverage
How to Reduce Your Premiums
Renter’s Insurance
Prepaid Legal Insurance
Identity Theft Insurance
Insurance to Avoid:
Where to Buy Your Insurance
A Higher Deductible
CHAPTER 7:
Company Retirement Plans
Company Stock Options
What are the advantages to participating in a stock option program?
IRAs
Retirement Sources of Income
Social Security
Pensions
Reverse Mortgage
How Much Do You Need To Retire?
CHAPTER 8:
Unsecured and Secured Major Credit Cards
Signature and Passbook Loans
Applying for Credit
Personal Financial Statements
Cosigners
CHAPTER 9:
Good Debt Versus Bad Debt
How to Tell if You Are In Over Your Head
Entertainment on Credit: Not a Good Idea
Avoid Credit Cards To Avoid Credit Card Debt
The Truth Behind Minimum Payments
Avoiding College Tuition Debt Through Financial Aid
Avoiding Car Loan Debt
Rules for Avoiding Debt
What To Do If You Already Have Debt
Debt and Divorce
Avoid Debt Repair Scams
Tips to avoid scams:
Chapter 10:
The First Step
After You Receive Your Report
Talk to Those You Owe
This Could Be You
Judgments
Consumer Statement
What You Do Not Need
CHAPTER 11:
How Much Home Is Enough?
Qualifying For A Mortgage
Understanding Closing Costs
Get Pre-qualified
Types of Mortgage Offers You May Receive
Origination Points
Discount Points
Benefits of Using a Real Estate Agent
Making an Offer
The Contract
Protection Against Buying a Lemon
Earnest Money
Talk to the Lender—Again.
The Closing
CHAPTER 12:
Make Investing a Habit
How Long Does It Take? The Rule of 72
Long-term Investments
Three Rules for Investing
Investment Sources
CHAPTER 13:
How to Pick Your Stocks
There Are Three Ways to Purchase Stock:
Understanding Bonds
Terminology You Should Know
Bond Maturity
Mutual Funds
Why Invest in Mutual Funds?
So, What is It Going to Cost?
Types of Funds
Choosing Your Fund
Initial Public Offerings
What to Look for When Choosing an IPO
Risks of an IPO
There Are Three Kinds of Risk Related to the Company
What Information Should You Get Before Investing?
Where Can I Find Information About The Company?
Precious Metals and Commodities
Chapter 14:
Telemarketing Fraud
Nigerian Letter or “419” Fraud
Identity Fraud
Advance Fee Scheme
Common Health Insurance Frauds
Prime Bank Note
Other Investment Scams To Watch Out For
Costa Rica Property Scams
How to Keep From Getting Ripped Off
CHAPTER 15:
Laddering Your Stocks
Consider the effect of this over time.
CD Ladder
DRIPS
Using Bonds for Residual Income
CHAPTER 16:
Tax Reduction IS Legal
Income Taxes and Tax Reduction
Flexible Spending Arrangements (FSA)
Timing Your Capital Gains Tax
Catch Up on Your 401(k) or IRA Contributions
Claim Additional Withholding
Other Techniques
Income Taxes and Tax Credits
Investment Tax Earnings and Divorce
Appendix A:
Budget Worksheet
College Savings Plan Comparison Chart
Appendix B:
How to Balance a Checkbook
Basic Banking Fees
Compound Interest Formula and Example
Appendix C:
How Much Life Insurance Do I Need?
Example of a Need Life Insurance Form:
Questions To Ask When Choosing a Long-term Disability Policy
How to Lower Your Risk of Identity Theft
Appendix D:
Excessive Debt Warning Signs Quiz
Credit Card Reporting Agency Addresses
Finding Debt to Income Ratio
Appendix E:
Retirement Worksheet
Example of the Retirement Worksheet:
Inflation Factor Table
Expected Interest Earned
Gap Factor
Comparing a Traditional IRA to a Roth IRA
Appendix f:
Figuring Out Your Monthly Mortgage Payments
Finding the Right Home
Should I Use A Real Estate Agent?
Sample Real Estate Sales Contract
Appendix G:
Do You Need a Financial Advisor?
25 Documents to Take With You to Your First Meeting with a Financial Advisor
Common Financial Advisor Credentials
Questions to Ask a Credit Counselor
Questions to Ask When Choosing a Real Estate Agent
Questions to Ask When Hiring a Stockbroker
Tax Time Records
GLOSSARY
A
B
C
D
E
F
H
I
K
L
M
N
P
R
S
T
U
W
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