You are previewing Financial Freedom: A Guide to Achieving Lifelong Wealth and Security.
O'Reilly logo
Financial Freedom: A Guide to Achieving Lifelong Wealth and Security

Book Description

If you're one of the millions of Americans who is buried in credit card debt, or maybe you're having trouble deciphering the fine print on your 401(K)—that is, if you even have a 401(K)!—don't dismay. You can start taking steps toward closing your financial illiteracy gap right away with the sound, practical personal finance advice offered up in Reuben Advani's Financial Freedom.

Designed for young adult professionals but filled with crucial information that will financially empower readers of all ages, Financial Freedom is more than just your standard personal finance book, which offers up plenty of encouragement but very little actionable advice. Instead, this user-friendly guide stands alone thanks to the clear approach it takes to the topic of personal finance. So, no matter whether you are in the market for a new car, are looking to become a first-time homeowner, want to save up for your child's college education, or have decided to try your hand at investing, you'll find engaging, nonjudgmental answers to your most pressing financial questions in this invaluable resource. Jam-packed with financial guidance yet presented in a gentle, humorous manner, Financial Freedom will teach you:

  • The ins and outs of the world of finance, including targeted advice on how to use its tools to create a better financial future for yourself;

  • The difference between good debt and bad debt—as well as tips and hints for avoiding the latter of the two;

  • The low-down on mortgages, auto loans, student loans, and credit cards;

  • Strategies and techniques for investing in stocks, bonds, and real estate;

  • And much more.

When it comes to securing your financial future, building a strong foundation of financial knowledge and skills is the smartest thing you can do. Put yourself on the path to long-term financial literacy, independence, and success with Financial Freedom, which provides all the information you need to make sound financial decisions for a lifetime.

What you'll learn

  • Concrete strategies for increasing your financial literacy and cleaning up your financial situation, no matter how dire your financial straits may be

  • How to take charge of your personal balance sheet by keeping constant track of your assets, liabilities, and equity

  • How money market accounts, certificates of deposit, and bank accounts can help you maximize your savings and build your financial opportunities

  • The differences between stocks, bonds, and the wide variety of available alternative investments, as well as techniques for investing in each type of financial instrument

  • How diversification and active money management will enable you to build your wealth and achieve your long-term financial goals

Who this book is for

Financial Freedom is a friendly, hands-on guide that is specifically geared toward college students and young, entry-level professionals who want to get their financial house in order, but it will also prove indispensable to a wide range of mid-career professionals, from those in desperate need of financial guidance to those who are already on the path to financial success.

Table of Contents

  1. Titlepage
  2. Dedication
  3. Contents
  4. About the Author
  5. Acknowledgments
  6. Introduction
  7. Chapter 1: Assets
    1. What Are Assets?
    2. Listing and Valuing Assets
    3. Appreciable Assets
    4. Depreciable Assets
    5. It’s Assets That Make the World Go ’Round
    6. Chapter Lessons
  8. Chapter 2: Liabilities
    1. The Pros and Cons of Liabilities
    2. Good Debt vs. Bad Debt
    3. Common Liabilities
    4. To Borrow or Not to Borrow
    5. Compounding Interest
    6. Chapter Lessons
  9. Chapter 3: Equity
    1. Why Is Net Worth So Important?
    2. How to Calculate Net Worth
    3. How to Grow Net Worth
    4. Chapter Lessons
  10. Chapter 4: Financial Feng Shui—Get Organized!
    1. Freeing Your Mind and Your Space
    2. Avoiding Charges and Late Fees … Like the Plague
    3. Negotiating Lower Rates
    4. Chapter Lessons
  11. Chapter 5: The Personal Finance Panacea—Make More Money!
    1. Landing Your Dream Job
    2. Getting Promoted
    3. Chapter Lessons
  12. Chapter 6: Budgeting and Saving—Oh, No!
    1. Steps to Building a Budget
    2. Maximizing Your Budget
    3. Saving for a Sunny Day
    4. Reasons to Save
    5. Seizing Opportunity through Saving
    6. What Saving Can Do for You
    7. Being a Smart Saver
    8. Chapter Lessons
  13. Chapter 7: Shopping—Oh, Yes!
    1. Dumb Shopping
    2. Smart Shopping
    3. Becoming a Smart Shopper
    4. Chapter Lessons
  14. Chapter 8: Credits and Debits
    1. Credit Card Components
    2. Advantages of Credit Cards
    3. Disadvantages of Credit Cards
    4. To Charge or Not to Charge,
    5. That Is the Question
    6. Getting the most out of your credit card
    7. Fee-Based Credit Cards
    8. Debit Cards
    9. Credit Score 101
    10. Anatomy of a FICO Score
    11. How to Improve Your FICO Score
    12. Debunking the Myths about FICO Scores
    13. Chapter Lessons
  15. Chapter 9: Late Night TV and Borrowing
    1. Predatory Lenders
    2. Predatory Loan Types
    3. Chapter Lessons
  16. Chapter 10: Financing a Home
    1. What to Consider When Applying for a Mortgage
    2. Mortgage Refinancing
    3. Fannie and Freddie Who?
    4. Why Homeownership Is Not for Everyone
    5. The Case for Renting
    6. Chapter Lessons
  17. Chapter 11: Buying a Car
    1. Leasing vs. Buying a Car
    2. Tips for Buying a Car
    3. Chapter Lessons
  18. Chapter 12: Financing an Education
    1. Planning for an Education
    2. Funding Sources
    3. Free Application for Federal Student Aid (FAFSA)
    4. Chapter Lessons
  19. Chapter 13: Debt Reduction
    1. How to Destroy Your Financial and Personal Life through Too Much Debt
    2. How to Get Your Financial and Personal Life Back after Being Buried in Too Much Debt
    3. Chapter Lessons
  20. Chapter 14: Investment Basics
    1. Investment Basics
    2. Investment Jargon
    3. Portfolio Theory
    4. Chapter Lessons
  21. Chapter 15: Stock Market Investing
    1. How to Analyze Companies
    2. Stock Market Valuation
    3. What Moves Stock Prices
    4. Smart Investing
    5. Stock Market Funds
    6. Chapter Lessons
  22. Chapter 16: Bond Market Investing
    1. Bond Basics
    2. Bond Types
    3. Bond Market
    4. Chapter Lessons
  23. Chapter 17: Real Estate Investing
    1. Real Estate Basics
    2. Property Management
    3. Chapter Lessons
  24. Chapter 18: Playing It Safe
    1. Bank Accounts
    2. Certificates of Deposit
    3. Money Market Accounts
    4. Protecting Yourself with Insurance
    5. Chapter Lessons
  25. Chapter 19: Financial Advisors
    1. Three Advisors You Need
    2. What to Look For in an Advisor
    3. Chapter Lessons
  26. Chapter 20: Conclusion
  27. Index