The Money Book by Orman

Ref: Suzie Orman (2004). The Money Book for the Young, Fabulous, and Broke. Riverhead.

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Summary­

• Basic personal financial advice for young adults.

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Finance- Basics

• Do not mess up your Credit Score.

• Do not miss a credit card payment.

• Do not pass up your employers 401K company match.

• Do not invest in a mutual fund with A or B at the end.

• Do not purchase a variable annuity.

• Do not lease a car.

• Do not take out an interest only or no-down payment mortgage.

• DO open a 401K with company match and a ROTH IRA.

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Credit Score

• Check www.myfico.com or www.annualcreditreport.com

• Your Credit Score is 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

Credit Scores

• 500-579: Horrible

• 580-619: Bad

• 620-659: Fair

• 660-699: Okay

• 700-759: Good

• 760-800: Excellent

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