Financial Notes 1

(Originally written August 22, 2007 in Notebook 19)

On a completely different subject, I broke down and bought an investing book. Who am I? Where is the youthful Chris Linehan?

How to invest $50-$5000
Nancy Dunnan

"Waiting means never getting started"

"Plan out your goals"

The rule of 72

Divide 72 by the interest rate and you wind up with the number of years it will take you to double your money.

a) 72 divided by 3.5% is 20.5 years
b) 72 divided by 6% is 12 years

caveat: the rule of 72 does not account for taxes

Ten Dumbest Mistakes People Make About Money
1) Being ashamed to invest small amounts
2) Having inadequate emergency savings
- Solution: stash 3-6 months of living expenses in a money market fund or bank CD
3) Leaving cash in a bank savings account
4) Operating too many accounts
5) Confusing income with appreciation
6) Avoiding financial goal setting
7) Failing to diversify
8) Procrastinating
9) Ignoring savings plans at work
10) Failing to have a will

Personal Finance Calendar

Call (800) 829-3676 and request IRS publication #535 and #463

January:
- Buy holiday cards and wrapping paper
February:
- Shop president's day sales for winter clothes
- outletbound.com -> outlet shopping
May:
Book summer vacation!
June:
www.summerjobs.com
July:
start an investment club (www.better-investing.org)

Ch. 1

Find a bank where interest is compounded daily, not quarterly