Personal Finance in Your 20s & 30s For Dummies (For Dummies (Business & Personal Finance))

The money lessons you wish you’d learned in school Personal Finance in Your 20s & 30s For Dummies helps Millennials and Zoomers like you make smart financial moves. It’s not as tough as it looks to reduce and file your taxes, pay off your student debt, buy a home, keep a budget to save and invest wisely, or start that side hustle, just to name a few. With a little bit of focus, you can start a clear path to financial freedom and avoid mistakes today. Your future self will thank you. This edition is full of updates for the 2020s; wrap your mind around your investment opportunities, the realities of making a second income, higher ed options for career advancement, and lessons learned from the COVID-19 pandemic. If you’re in need of financial guidance—and who isn’t?—this is the book you need. • Pay off loans, manage your credit, begin the home-buying journey, and more • Set realistic money goals so you can create a solid path for financial success • Make smart decisions to beef up your bank account and investment portfolio • Protect the money you have today and learn how to put your money to work for the future Get ready to turn up the volume on your financial know-how and stop worrying about money! 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 "Personal Finance in Your 20s & 30s For Dummies helps Millennials and Zoomers like you make smart financial moves. It's not as tough as it looks to reduce and file your taxes, pay off your student debt, buy a home, keep a budget to save and invest wisely, or start that side hustle, just to name a few. With a little bit of focus, you can start a clear path to financial freedom and avoid mistakes today. Your future self will thank you."--Amazon.com