| Acknowledgments | vii |
| Introduction | ix |
| Part 1 | Assessing Your Current Wealth | |
| Financial Calculator | |
| 1 | How to Determine Your Net Worth | 3 |
| 2 | How to Determine a Cash Inflows and Outflows Statement | 8 |
| 3 | How to Formulate a Budget | 12 |
| 4 | Time Value of Money and What It Can Do for You | 20 |
| 5 | Simple Interest and How to Calculate It | 22 |
| 6 | Compound Interest and How to Determine Future Value | 23 |
| 7 | What You Need to Know About Nominal Versus Effective Interest Rates and How to Calculate the Effective Rate | 30 |
| 8 | Present Value and How to Calculate It | 33 |
| 9 | Annuities and How to Calculate Them | 37 |
| 10 | How to Determine the Amounts Needed to Fund Your Objectives | 52 |
| 11 | How to Reconcile Your Checking Account | 61 |
| 12 | How to Prepare Your Records for Your Tax Accountant | 68 |
| Part 2 | Managing Your Personal Wealth--Debt | |
| Financial Calculator | |
| 13 | Determine Your Debt Capacity | 75 |
| 14 | How to Determine the Best Source of Credit | 77 |
| 15 | How to Determine the Annual Percentage Rate Costs of Using Credit Loans | 81 |
| 16 | How to Determine the Rate of Interest on Your Credit Cards | 90 |
| 17 | How to Manage Your Debt | 94 |
| 18 | How Much of a Mortgage Can You Afford? | 99 |
| 19 | How to Calculate Your Monthly Mortgage Payment | 103 |
| 20 | How to Determine Your Mortgage Balance | 107 |
| 21 | Determine Your Mortgage Balance When Additional Principal Payments Are Made | 111 |
| 22 | Adjustable Rate Mortgages and How They Work | 114 |
| 23 | Which Type of Mortgage Should You Choose? | 121 |
| 24 | When Should You Refinance Your Mortgage? | 125 |
| 25 | Should You Rent or Buy a House? | 127 |
| 26 | What You Should Know About Leasing a Car and How a Lease Works | 131 |
| 27 | Should You Buy, Lease, or Finance Your Car? | 136 |
| 28 | How to Create a Simple Interest Loan Schedule | 142 |
| Part 3 | Managing Your Personal Wealth--Investments | |
| Financial Calculator | |
| 29 | Determine Your Investment Objectives | 149 |
| 30 | Determine Your Risk Tolerance | 152 |
| 31 | How to Allocate Your Investments | 158 |
| 32 | How to Determine Your Equity Style in the Selection of Individual Stocks | 165 |
| 33 | How to Determine Which Types of Bonds to Buy for a Portfolio | 171 |
| 34 | How to Rebalance Your Portfolio | 175 |
| 35 | The Rule of 72 and How to Use It to Determine How Long It Will Take to Double Your Money | 179 |
| 36 | How to Assess and Balance Risk and Return in the Choice of Different Investments | 180 |
| 37 | How to Calculate a Simple Rate of Return for Stocks and Bonds | 186 |
| 38 | How to Determine a Rate of Return for a Mutual Fund | 190 |
| 39 | How to Determine the Yield on Treasury Bills | 193 |
| 40 | How to Determine the Purchase and Selling Price of Treasury Bills | 197 |
| 41 | How to Buy and Sell Treasury Securities Directly from the Federal Reserve | 201 |
| 42 | How to Convert Municipal Bond Yields to Before-Tax Yields | 207 |
| 43 | Duration and How It Can Help You in the Choice of Bonds for Your Portfolio | 211 |
| 44 | How to Value Bonds | 217 |
| 45 | How to Value Common Stock | 220 |
| 46 | How to Determine the Growth Rate of a Stock | 226 |
| 47 | How to Analyze and Evaluate Your Common Stocks | 229 |
| 48 | How to Choose a Mutual Fund | 246 |
| 49 | How to Determine the Tax Consequences of Buying and Selling Shares in a Mutual Fund | 254 |
| 50 | How to Determine the Average Cost in Dollar Cost Averaging | 259 |
| Part 4 | Planning for Your Future | |
| Financial Calculator | |
| 51 | How to Determine Your Future Financial Needs and How to Fund Them | 265 |
| 52 | How to Determine How Long Your Money Will Last in Retirement and the Amount of the Payment in a Systematic Withdrawal Plan | 272 |
| Appendices | 277 |
| Index | 287 |
