Saving Money 

  • DON’T JUST SAVE—SAVE FOR A GOAL.-I Will Teach you to be Rich by Sethi.

Lending Money

  • Myth: If I loan money to a friend or relative, I will be helping them. Truth: The relationship will be strained or destroyed.-Complete Guide to Money by Ramsey.

  • The bottom line is that everything in my friends’ and family’s lives is not my responsibility. Whenever someone wants something of mine—time, money, resources, etc.—I look carefully at the request. I always ask, “Will this truly help him, or will I just be giving a drunk a drink?”-Complete Guide to Money by Ramsey.

Loans & Borrowing

  • Terms of a loan: Principal, the Term, maturity date, interest rate, and payment schedule.-Man v. Markets by Hirsch.

  • Syndicated Loans: money comes not from one lender, but from a syndicate.-Man v. Markets by Hirsch.

  • Covenants are rules that require borrowers to hit certain averages.-Man v. Markets by Hirsch.

Credit Cards

  • The number one mistake people make with their credit cards is carrying a balance, or not paying it off every month.-I Will Teach you to be Rich by Sethi.

  • Credit allows people to borrow money because we believe that the future will be better than today.-Sapiens by Harari.

  • Nightline reported that when McDonalds started accepting credit cards as a form of payment, their average sale went from $4.75 to $7.-Complete Guide to Money by Ramsey.

Credit Scores

  • Check or

  • Based on...

    • 35%: Record of paying bills

    • 30%: Credit & loan balance compared to credit limit, loan limit

    • 10%: Length of Credit History

    • 10%: New Accounts and recent credit app

    • 10%: Mix of credit and loans

  • If you miss even one payment on your credit card, here are four terrible, horrible, no good, very bad results you may face: 1. Your credit score can drop more than 100 points, which would add $240/month to an average thirty-year fixed-mortgage loan. 2. Your APR can go up to 30 percent. 3. You’ll be charged a late fee, usually around $35. 4. Your late payment can trigger rate increases on your other credit cards as well, even if you’ve never been late on them.-I Will Teach you to be Rich by Sethi.

  • People with zero debt get a free pass. If you have no debt, close as many accounts as you want. It won’t affect your credit utilization score.-I Will Teach you to be Rich by Sethi.

  • Credit Score

    • 500-579: Horrible

    • 580-619: Bad

    • 620-659: Fair

    • 660-699: Okay

    • 700-759: Good

    • 760-800: Excellent


  • To find your annual salary, just take your hourly rate, double it, and add three zeros to the end. If you make $20/hour, you make approximately $40,000/year. If you make $30/hour, you make approximately $60,000/year. This also works in reverse. To find your hourly rate, divide your salary by two and drop the three zeros. So $50,000/year becomes approximately $25/hour.- I Will Teach you to be Rich by Sethi.

  • The single best time to negotiate salary is when you’re starting a new job. When you’re negotiating, remember this: When it comes to you, your manager cares about two things—how you’re going to make him look better, and how you’re going to help the company do well.-I Will Teach you to be Rich by Sethi.

  • Always frame your negotiation requests in a way that shows how the company will benefit.-I Will Teach you to be Rich by Sethi.

  • Have another job offer—and use it. This is the single most effective thing you can do to increase your salary.- I Will Teach you to be Rich by Sethi.

  • Interview with multiple companies at once.-I Will Teach you to be Rich by Sethi.

  • Don’t just pick a salary out of thin air. First, visit and to get a median amount for the position. Then, if you can, talk to people currently at the company (if you know someone who has recently left, even better—they’ll be more willing to give you the real information) and ask what the salary range really is for the job.-I Will Teach you to be Rich by Sethi.

  • Most of the negotiation happens outside the room. Call your contacts. Figure out the salary amount you’d love, what you can realistically get, and what you’ll settle for. And don’t just ask for money. Literally bring a strategic plan of what you want to do in the position and hand it to your hiring manager.-I Will Teach you to be Rich by Sethi.

  • Don’t forget to discuss whether or not the company offers a bonus, stock options, flexible commuting, or further education. You can also negotiate vacation and even job title. Note: Startups don’t look very fondly on people negotiating vacations, because it sets a bad tone. But they love negotiating stock options, because top performers always want more, as it aligns them with the company’s goals.-I Will Teach you to be Rich by Sethi.


  • There are two main types of insurance on the market today: term and cash value.-Complete Guide to Money by Ramsey.

    • Term insurance is for a specified time period. If you get a five-year term policy, you are insured for a five-year term. That’s why they call it “term.” Term is easy to understand, cheaper than other options, and has no savings plan attached to it. It has one job and one job only: it replaces your income when you die. If you buy a $400,000 term policy for a twenty-year term, and you die within that twenty-year period, your family will get $400,000. It’s pretty simple.

    • Cash value insurance plans usually aren’t for a specified term; they’re for life. They are a lot more expensive, because you’re not just paying for the insurance; you’re also funding a savings account inside the insurance policy.

  • Let’s say Joe gets a $125,000 cash value policy at thirty years old. He’ll pay somewhere around $140 per month for that if he’s in good health and doesn’t smoke. Part of that $140 goes to pay for the insurance, and the rest goes into that “great” savings account someone sold him. After forty years of paying way too much for his insurance, Joe’s built up around $65,000 in cash value by age seventy. So, he has $125,000 in insurance and $65,000 in cash value. At that point, Joe dies. How much will the insurance company pay out to his wife? She’ll get $125,000. Can you guess what happens to the $65,000 he’s built up by overpaying for his insurance for forty years? The insurance company keeps it! Good-bye, Joe! Thanks for playing!

Major Purchases

  • Discuss major purchases with your spouse (if married) or with an accountability partner (if single).-Complete Guide to Money by Ramsey.

  • The advertising industry and Hollywood have done a wonderful job conditioning us to believe that wealth and hyper-consumption go hand in hand.-The Millionaire Next Door by Stanley.

  • Rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.-Rich Dad, Poor Dad by Kyosaki.

  • Gouging happens when there is scarcity of goods, with lots of demand, and the seller takes advantage of the scarcity to jack up prices.-Man v. Markets by Hirsch.


  • Why do people file for bankruptcy?

    • Half of all bankruptcies are filed because of high medical bills

    • One in 10 who file has cancer when they file

    • 95% are due to job loss, family breakup, or medical bills.

    • Only 2% of filers are in alcohol or drug rehab when they file.

  • The goal of the bankruptcy reform Congress passed was to curtail the use of the “clean slate” bankruptcy offered under Chapter 7 and to force debtors into the more draconian Chapter 13. Under Chapter 13, those in bankruptcy must do their utmost to pay their debts over a five year period. As an incentive to encourage lenders to accept partial payment, the bankruptcy judge can reduce the debtor's liability by up to 20%, but can do no more.

Financial Vehicles:


  • Roth 401(k): Works just like a Roth IRA, you invest after-tax dollars into the Roth 401(k), but it comes out of your paycheck automatically on payday just like a regular 401(k). It grows just like a Roth IRA, and you pay zero taxes on it when you withdraw the funds at retirement. So on that end, you get all the benefits of a regular Roth IRA, but you can do it in addition to a Roth IRA and you may get a company match on top of your contributions. Even better, the Roth 401(k) doesn’t have income limits attached to it, so you can use a Roth 401(k) even if you don’t meet the income limits for a normal Roth IRA. This thing is awesome!-Complete Guide to Money by Ramsey.


  • After the account has been open for five years, you can take out withdrawals up to your contributions with no penalties.-Complete Guide to Money by Ramsey.

  • You can also take up to $10,000 out for a first-time home purchase.-Complete Guide to Money by Ramsey.

  • Once you hit age fifty-nine and a half, you can make tax-free, penalty-free withdrawals of up to 100 percent.-Complete Guide to Money by Ramsey.


  • Two types of annuities: fixed and variable.-Complete Guide to Money by Ramsey.

    • Fixed annuities are terrible. They’re basically a savings account with an insurance company, and they pay somewhere around 5 percent. They’re really not that different from a CD you’d get from your local bank. By now, you know that a 5 percent rate of return isn’t worth your time, so we’ll pass on those.

    • Variable annuities are the only ones I like. These are essentially mutual funds inside an annuity. The annuity provides some protection against taxes for the mutual funds inside, so if you’ve already maxed out your other tax-favored plans, like a 401(k) and Roth IRA (we’ll talk about these in chapter 10, From Fruition to Tuition), then a variable annuity might make sense. There are fees involved, but in exchange for the fees, you don’t have to worry about taxes on the investment. Plus, some variable annuities offer a guarantee on your principal. So if you put $100,000 in the investment and the value drops below that level, you’ll still be able to get your $100,000 back out of it.