Wealth Building Essentials for Dummies - Eric Tyson

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Résumé :

Introduction 1

About This Book 1

Foolish Assumptions 2

Icons Used in This Book 2

Where to Go from Here 3

Chapter 1: Developing a Wealth Mindset 5

Focusing on Abundance 5

Avoiding a scarcity mindset 6

Balancing spending and saving 7

Remembering that wealth is about more than numbers 10

Developing a Wealth Mindset Toward Debt 11

Avoiding bad debt 11

Assessing good debt: Can you get too much? 12

Kicking a credit card habit 13

Chapter 2: Practicing Mindful Spending 15

Keeping Lifestyle Inflation in Check 15

Thinking like a saver 16

Living within your means 17

Turning your back on consumer credit 18

Repaying your debt 19

Avoiding the More Money, More Stuff Trap 20

Housing expenses 21

Lowering your energy costs 22

Trimming your taxes 23

Keeping an eye on insurance premiums 23

Managing medical expenses 24

Spending less on cars and transportation 25

Considering kid-related expenses 26

Saving on food and dining 26

Reducing phone bills 26

Shopping for technology 27

Finding affordable recreation and entertainment 27

Reducing clothing expenses 27

Paying for hair care and other personal-care services 28

Reducing health club expenses 28

Table of Contents iii

Buying gifts 29

Charitable contributions 29

Vacations 29

Paring down professional expenses 30

Costly addictions 30

Gambling 30

Budgeting: Yes, You Need a Financial Plan 31

Chapter 3: Exploring Winning Investment Strategies 33

Compound Interest: The Eighth Wonder of the World 33

Understanding the primary investments 34

Shunning gambling and get rich quick vehicles 36

Understanding investment returns 37

Leaving you with some final advice 38

Exploring Bonds and Other Lending Investments 39

Deciding between individual bonds and bond funds 39

Obtaining bond prices 40

Purchasing Treasuries 40

Shopping for other individual bonds 41

Considering other lending investments 42

Investing in Mutual Funds and Exchange-Traded Funds 43

Exploring various fund types 45

Deciphering your fund's performance 52

Creating your fund portfolio with asset allocation 53

Chapter 4: Managing Risk Like a Pro 57

Understanding Investment Risks 57

Comparing the risks of stocks and bonds 58

Focusing on the risks you can control 59

Diversifying Your Investments 60

Sticking with your allocations: Don't trade 61

Investing lump sums via dollar-cost averaging 61

Buying and Selling Stocks 63

Defining The Market 63

Buying stocks via mutual funds and exchange-traded funds 66

Using hedge funds and privately managed funds 68

Selecting individual stocks yourself 68

Spotting the right times to buy and sell 70

Avoiding problematic stock-buying practices 70

Proven investment strategies 72

Chapter 5: Investing in a Small Business 75

Owning a Small Business 75

The reasons to own 76

The reasons not to own 77

Starting Your Own Small Business 79

You as the sole owner 79

Sharing ownership 80

Deciding between sole and shared ownership 81

Going public: Cashing in 83

Determining your start-up cash needs 83

Buying an Existing Business 85

Understanding why to buy a business 85

Knowing when you shouldn't buy 87

Chapter 6: Raking in Profits from Real Estate 89

Homeownership: Building Equity One Br...