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CHAPTER 2: CAR – YOUR CAR SHOULDN’T BE A STATUS SYMBOL
Compare insurance quotes at Nerd Wallet: http://www.nerdwallet.com/insurance/comparecarinsurancerates
When shopping for a quote, remember that insurers offer different levels of service and may have different reputations. I suggest checking their complaint history. A list is available through the National Association of Insurance Commissioners at the following link: www.naic.org/state_web_map.htm.
CHAPTER 4: A MILLION DOLLARS ON $10 A DAY – THE MAGIC OF COMPOUNDING
Table 1:
Betty 
Bob  
Ages 
Annual Investment  Total Wealth  Ages  Annual Investment 
Total Wealth 

21 
$2,000  $2,240  21  $ 0 
$ 0 

22 
$2,000  $4,749  22  $ 0 
$ 0 

23 
$2,000  $7,559  23  $ 0 
$ 0 

24 
$2,000  $10,706  24  $ 0 
$ 0 

25 
$2,000  $14,230  25  $ 0 
$ 0 

26 
$2,000  $18,178  26  $ 0 
$ 0 

27 
$2,000  $22,599  27  $ 0 
$ 0 

28 
$2,000  $27,551  28  $ 0 
$ 0 

29 
$2,000  $33,097  29  $ 0 
$ 0 

30s 
$ 0  $37,069  30s  $2,000 
$2,240 

40s 
$ 0  $115,131  40s  $2,000 
$46,266 

50s 
$ 0  $357,580  50s  $2,000 
$183,005 

60s 
$ 0  $1,110,589  60s  $2,000 
$607,695 

65 
$ 0  $1,957,238  65  $2,000 
$1,085,197 

Total  $18,000  Total 
$72,000 
CHAPTER 5: INVEST TO BUILD WEALTH
How does your your company’s 401(k) website compare to these: http://www.bloomberg.com/graphics/2015401k/
Table 2:

Traditional 401(k)  Roth 401(k) 
Gross wages 
$2,000 
$2,000 
Traditional 401(k) contribution (pretax) 
($200) 
– 
Adjusted gross wages 
$1,800 
$2,000 
Withholding taxes pad (estimate) 
($487) 
($544) 
Roth 401(k) contribution (posttax) 
– 
($200) 
Net wages (takehome pay) 
$1,313 
$1,256 
Table 3:
Duration 
Total Cumulative Contributions 
Total Wealth 
One year 
$3,650 
$4,004 
Five years 
$18,250 
$24,300 
Ten years 
$36,350 
$62,903 
20 year 
$73,000 
$221,663 
30 years 
$109,500 
$622,351 
40 years 
$146,000 
$1,633,636 
50 years 
$182,500 
$4,185,983 
CHAPTER 6: CHILDREN – KIDS ARE EXPENSIVE
Table 4:
Category 
Expense 
Percent 
Public university 
$88,812 
24% 
Housing 
$87,120 
23% 
Childcare and education 
$66,650 
18% 
Food 
$40,830 
11% 
Transportation 
$33,960 
9% 
Misc. 
$20,070 
5% 
Healthcare 
$18,180 
5% 
Clothing 
$15,810 
4% 
Total 
$371,292 
CHAPTER 7: DEBT– BLACK IS THE NEW BLACK
Table 5:
Average owed by households carrying this type of debt  Total debt owed by all households  
Credit cards  $15,762  $733 billion 
Mortgages  $168,614  $8.25 trillion 
Auto loans  $27,141  $1.06 trillion 
Student loans  $48,172  $1.23 trillion 
Consumer debt  $130,922  $12.12 trillion 
Table 6:
Here are a few theoretical examples to illustrate how long it would take to pay off various balances just by paying the minimum amount due each month. (We will assume the minimum amount due is 2 percent of the outstanding balance and that the interest rate is 18 percent.)
Outstanding Balance  Balance Payoff  Total Payments  Principal  Total Interest Paid 
$1,000  150 months  $2,397  $1,000  $1,397 
$5,000  30+ years  $17,556  $5,000  $12,556 
$10,000  30+ years  $35,113  $10,000  $25,113 
$15,762  30+ years  $55,344  $15,762  $39,582 
$20,000  30+ years  $70,225  $20,000  $50,225 
$30,000  30+ years  $105,338  $30,000  $75,338 
$40,000  30+ years  $140,450  $40,000  $100,450 
The center column in the chart above “Total Payments” is the actual amount of money that you would have paid – the amount that you borrowed on the credit card plus the interest that you were charged, added together during the time it took to pay off the debt. You can see how quickly these debt totals add up and how debilitating that mountain of debt can become.
~~~~~~~
In order to get out of debt, you have to pay much more than the minimum. Let’s look at a few scenarios. I’m going to use varying debt levels and varying payments to illustrate how long it would take someone to repay their balance and get out of debt. (Again, we will assume that the APR is 18 percent. Note: These charts are assuming NO additional credit card debt. Obviously, if the borrower were to continue to incur additional debt, the possibility of ever paying off that debt decreases, potentially dramatically.)
Table 7:
Outstanding balance: $5,000
If my monthly payment is:  I will be debt free in:  My total payments would be:  Principal
repaid: 
Total interest
paid: 
$250  24 months  $5,989  $5,000  $989 
$500  11 months  $5,458  $5,000  $458 
$750  8 months  $5,308  $5,000  $308 
$1,000  6 months  $5,238  $5,000  $238 
Table 8:
Outstanding balance: $10,000
If my monthly payment is:  I will be debt free in:  My total payments would be:  Principal
repaid: 
Total interest
paid: 
$250  62 months  $15,386  $10,000  $5,386 
$500  24 months  $11,978  $10,000  $1,978 
$750  15 months  $11,241  $10,000  $1,241 
$1,000  11 months  $10,916  $10,000  $916 
Table 9:
Outstanding balance: $15,762 (the average outstanding balance in 2016)
If my monthly payment is:  I will be debt free in:  My total payments would be:  Principal
repaid: 
Total interest
paid: 
$250  196 months  $48,924  $15,762  $33,162 
$500  44 months  $21,503  $15,762  $5,741 
$750  26 months  $19,077  $15,762  $3,315 
$1,000  19 months  $18,119  $15,762  $2,357 
Table 10:
Outstanding balance: $20,000
If my monthly payment is:  I will be debt free in:  My total payments would be:  Principal
repaid: 
Total interest
paid: 
$500  62 months  $30,772  $20,000  $10,772 
$750  35 months  $25,734  $20,000  $5,734 
$1,000  24 months  $23,957  $20,000  $3,957 
Table 11:
Outstanding balance: $30,000
If my monthly payment is:  I will be debt free in:  My total payments would be:  Principal
repaid: 
Total interest
paid: 
$750  62 months  $46,159  $30,000  $16,159 
$1,000  41 months  $30,155  $30,000  $10,155 
CHAPTER 10: A FEW TIPS TO LIVE WITHIN YOUR MEANS
Below is a chart illustrating how much wealth you can build on a modest salary, provided you are disciplined enough to save 15 percent annually.
Table 12:
Age  Annual Salary  15% Invested  Net Worth 
21  $25,000  $3,750  $4,050 
22  $25,750  $3,863  $8,546 
23  $26,523  $3,978  $13,526 
24  $27,318  $4,098  $19,033 
25  $28,138  $4,221  $25,114 
~~~  ~~~  ~~~  ~~~ 
30  $32,619  $4,893  $66,016 
35  $37,815  $5,672  $130,750 
40  $43,838  $6,576  $231,243 
45  $50,820  $7,623  $385,130 
50  $58,914  $8,837  $618,467 
55  $68,298  $10,245  $969,690 
60  $79,176  $11,876  $1,495,461 
65  $91,786  $13,768  $2,279,247 
(This table above assumes a consistent 8 percent return on your investment annually. This is just for illustrative purposes. Your actual investment – while it may earn a compounded annual growth rate of 8 percent – will not have a consistent return. Some years it will earn more, some years it will earn less, some years it will lose money, but using historical data, you should expect an 8 percent compounded return on your investment.)