Week 1

Title: : Intro to Personal Financial Management + Who Are the Millionares? + Financial Planning in a World of Credit and Debt Reading: Chapters 1, 2, and 3 Videos

Chapter 1: Introduction #

  1. What is our definition of a millionaire? Those financially indpendent to take care of themselves
  2. If the biggest financial problem is no longer retirement, what is it? Lonegivity is the biggesst problem, living beyond what you planned for
  3. Do most people pay more in Social Security and Medicare than federal income taxes? Most people pay more in SS and Medicare taxes than federal income taxes
  4. What is the difference between being rich and being wealthy? Wealth is lifestyle
  5. What did the Nightingale/Conant study conclude about financial independence? Out of 100 people who started work at 25 and worked till 65, only 5 will be financially independent

Chapter 2: Who Are The Millionaires? #

  1. What is the “cornerstone” of wealth? Maintaining frugality and being value-oriented (not necccesarily cheap)
  2. Do the vast majority of millionaires have college degrees? 80% do
  3. Is becoming a millionaire a choice, you can make? Yes
  4. What is a “homepreneur”? An increasing number of people who have a second business which may account for over 50% of the income, despsite being based from their home and also possibly working at a large corporation
  5. People who succeed have goals. Over the next two years, what is your goal? Work hard. Live life. Achieve goals. Dominate.

Chapter 3: Credit, Debt, and Money #

  1. How do you establish good credit? Borrow money and pay it back on time according to terms
  2. When is the best time to establish credit? When you do not need it
  3. What is the difference between a credit card and a debit card? Debit is immediate and cash, credit is a line that you pay #expand upon later
  4. How can you avoid credit card fees and penalties? Bewing aware of what consists of a penalty or consitutes a fee
  5. What is the first thing you should do if your credit card is lost or stolen? Call the credit car issuer (bank) immediately