Part I: The Basics
Before diving into investing and retirement accounts, it's essential to understand the fundamentals of personal finance. These basics form the foundation for all your financial decisions.
In this section, you'll learn about:
- Income — Understanding where your money comes from
- Expenses — Tracking where your money goes
- Budgeting — Creating a plan that balances the two
- Taxes — How the tax system actually works
- Credit Scores — What affects your score and why it matters
- Insurance — Protecting yourself from financial catastrophe
- Debt — Understanding interest, and strategies for paying it off
Master these concepts first, and everything else becomes much easier.
Pro tip: Don't skip these sections even if they seem basic. A solid understanding of your income and expenses is the single most important factor in building wealth.