Introduction to the Financial Planning Process
In this course, you'll discover the keys to achieving financial freedom steadily and successfully. You'll learn how to make financial discipline and wise financial choices a natural part of your life. Your journey begins here with an overview of the five steps of financial planning.
Organize Your Finances
How much money do you actually have and where is it all going? You have to be able to answer these questions before you can create a financial plan. So, in this lesson, you'll work on organizing your financial life. You'll create an organized filing system, get a handle on your spending, and learn how valuable cash flow statements, budgets, and balance sheets are to financial success. Don't worry; it's not as hard as it sounds!
Short-Term Investments: Building Cash Assets
There are three types of investment money: short-term, intermediate, and long-term. You'll start this lesson with a look at short-term money and the purpose it serves. This is money you would set aside for something specific in the near future like buying a car, making a down payment on a house, or paying off interest-free debt. You'll learn the trade-off between investment risk and investment reward and see why it takes more than putting your money in a savings account to get rich.
Bonds, Stocks, and Mutual Funds
In this lesson, you'll learn how a combination of stocks, bonds, and mutual funds will help you build wealth. You'll also see how investment risk correlates with investment return. Then you'll discover how time mitigates higher-risk investments, making them an excellent choice if you've got enough time and want to see double-digit returns.
Education Accounts
Saving money to fund a college education is a common financial goal. This lesson will talk about the pros and cons of the different education savings plans that are out there. By the end of the lesson, you'll be the neighborhood expert on saving for college!
Retirement Savings
Most people's number-one financial goal is saving for retirement. Social Security alone won't cover the bills. Some people have employer pension plans, but many people have to figure out how they'll make up the shortage once they stop working. This lesson is about taking care of yourself in retirement. You'll examine retirement savings plans and discover why they're a great place for your cash investments.
Real Property Assets
Up to now, this course has been about accumulating cash assets. In this lesson, you'll learn how real property assets complement your wealth. Real property assets are things you can feel, see, and touch (such as land or precious metals). When you complete this lesson, you'll know the challenges and benefits of owning real property.
Understanding Mortgages
Since most people don't have enough to buy a house with cash, they need someone to lend them money. Going to the bank for a loan isn't as simple as walking in and filling out an application. Completing an extensive questionnaire about your income, debts, and job history is part of the loan process, but there's more. You need to decide which kind of mortgage to apply for. Just like there are a number of ways to order coffee from your favorite barista, there are a number of ways to finance a house. In this lesson, you'll learn about the different loan types, understand why some cost more (or less) than others, and figure out which loan program is best for you.
Other Financing
Almost everyone has a credit card in their wallet, and many people are plagued by consumer debt. Credit cards, car loans, car leases, and in-store financing are where consumer debt builds up. In this lesson, you'll learn how to use these forms of financing to instead maximize your wealth.
Risk Management
As you accumulate wealth, it's important to protect it against loss. People buy car insurance in case of car crashes, homeowners insurance in case of damage or destruction to their houses, and health insurance to help with the rising cost of medical care. These are obvious assets to protect, but what about their most valuable asset: their ability to earn an income? If you have people depending on your paycheck to put food on the table and a roof over their heads, then you need to protect your income. For those reasons, this lesson will talk about life and disability insurance and when you should get them.
Build Your Team of Professionals
This lesson will talk about the professionals who can help you on your journey toward wealth. You'll learn the areas of expertise for an attorney, CPA, financial advisor, and insurance agent. You'll also get a sense of when is the right time to call on each of these professionals.
Put Your Plan into Action
The final lesson will talk about the most challenging part of the financial planning process: implementation. It will teach you a technique that's very helpful in getting you and keeping you moving on your journey toward wealth. You'll leave this course knowing what you need to do to reach your goals and how to do it. You'll have everything it takes to achieve financial freedom!
