Summayr of Eric Tyson's Personal Finance For Dummies

By IRB Media

Get the Summayr of Eric Tyson's Personal Finance For Dummies in 20 minutes. Please note: This is a summary & not the original book. Original book introduction: From budgeting, saving, and reducing debt, to making timely investment choices and planning for the future, Personal Finance For Dummies provides fiscally conscious readers with the tools they need to take charge of their financial life.

This new edition includes coverage of an extensive new tax bill that took effect in 2018 and the impact on individuals, families, small businesses, and on real estate and investing decisions. Plus, it covers emerging investing interests like technology and global investing, cryptocurrencies, pot stocks, the lifestyle changes occurring with millennials, and more.

• Language: English
• Publisher: IRB Media
• Release date: Nov 27, 2021
• ISBN: 9781638158721

IRB Media

With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

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Insights on Eric Tyson's Personal Finance For Dummies

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 1

#1

Many Americans, especially younger ones, are financially illiterate. This can cause anxiety because you don’t know how to spend your money and end up wasting it.

#2

Money is a taboo subject in many families, and parents often pass on their bad money-management habits to their kids. If you have children of your own, make sure they know how to manage their finances.

#3

Financial literacy classes in schools are rarely taught in a practical manner, and more often than not, they are merely an economics class.

#4

Seeking advice on how to manage your money can be dangerous if you're a novice. Misinformation can come from popular and seemingly reliable sources.

#5

The Internet makes it easy to access information on the subjects that are important to us, but it also offers us seemingly free content that is full of conflicts of interest and poor quality.

#6

Robert Prechter, a technical analyst and Elliott Wave expert, has made some of the most extreme predictions about the U. S. economy. He believes that the stock market is due for a massive crash, and that investors will be extremely grateful for their prudence when the stock market inevitably collapses.

#7

Before you take financial advice from anyone, you should check their background. If you can’t easily find such information, that’s usually a red flag.

#8

You can identify hucksters by the outrageous claims they make. Following someone’s advice based on their credentials alone is a mistake, because some people lie. You should always do your own research and consult with people who have experience in the field.

#9

It can be extremely difficult to determine if a guru is genuine or not. Do not trust every Tom, Dick, and Harry that comes along selling you something - there are plenty of con artists around.

#10

Be sure to examine the source of any financial advice that you receive, as the media through which it is delivered may have conflicts of interest that affect the advice you receive.

#11

Everyone has weak points, and managing your finances successfully requires coming to terms with your shortcomings and the consequences of your decisions. If you don’t, you may end up enslaved to a dead-end job or spend more time with your investments than you do with your family and friends.

#12

You can’t control what other people do, but you can control your own actions. If you want to change your financial situation, you must change your actions.

#13

Personal finance is not difficult if you understand the basic concepts and where to find the best financial products.

#14

Review your financial situation, including your spending, savings, future goals, and insurance. If you're like most people, you may have never reviewed your financial situation or did so long ago. This exercise allows you to identify areas that could benefit from improvement.

#15

There are many personal financial problems that can be solved by adopting a frugal lifestyle.

#16

There are seven financial sins that can lead to financial disaster. The first is focusing too much on money, which can cause you to make bad investment decisions. The second is exposing yourself and your family to catastrophic risk, such as not having insurance to cover financially devastating losses.

#17

Assets are money or investments that can be converted into real money that you can spend now or in the future. Financial assets generally include money in bank accounts, stocks, bonds, mutual funds, and exchange-traded funds. If you plan on eventually tapping into the equity (the difference between the market value and any debt owed on the property), add that portion of the equity to your list of assets.

#18

To arrive at your financial net worth, you must subtract your financial liabilities from your assets. Your liabilities include loans and debts such as student loans, credit cards, and auto loans.

#19

Your net worth is only important to you and your unique situation and goals. What seems like a lot of money to a person with a simple lifestyle may seem like a pittance to a person with high expectations and a desire for an opulent lifestyle.

#20

The FICO score is a credit score that measures the risk of defaulting on a loan. The higher your FICO score, the lower your risk of default.

#21

You can get a free copy of your credit report every year from each of the three credit bureaus: Equifax, Experian, and TransUnion. You can also get your credit score for free through FICO.

#22

The first step toward improving your credit score is to get all three of your credit reports and make sure they are accurate. Then, you must correct any errors on your reports and get any erroneous accounts deleted.

#23

Try to avoid having older debts removed from your credit history, as these are generally the debts that are the most difficult to remove.

#24

If you find an error on your credit report that you didn’t make, don’t assume it’s correct. Most errors aren’t yours, and credit bureaus are required to correct them within 30 days.

#25

If you have a credit problem with a