Personal Finance Masterclass – Easy Guide to Better Finances

Welcome to the Personal Finance Masterclass. In this video, we welcome you to the course, talk a bit more about ourselves, and talk about how you should to take the course.

In this lesson of the personal finance course, you'll learn our number one rule for being financially smart.

In this lecture of the Personal Finance Masterclass, you'll learn why the rich get richer.  We're not talking about the super rich and famous.  We're talking about the millionaire next door.  Lauren will cover the difference between assets and liabilities, and what impact each has on your finances. 

In this lecture of the Personal Finance Masterclass, you'll learn how to retire early. Phil shares a short animation that he created in 2015. This is a good introduction to one of the main components of this course - financial freedom and early retirement.

In this lecture of the Personal Finance Masterclass, you'll learn how to measure your own financial success.

1. What is your household’s cash flow? And do you understand it?
2. Do you know your net worth?
3. Will you have enough to retire?

In this lecture of the Personal Finance Masterclass, you'll learn how money works. To truly understand the rest of this course, you first have to know how money works. Let’s go back to the basics.

• An alternative to a currency-based society, is a bartering economy. This can get tricky and wouldn’t work if the two parties don’t agree on what to barter.
• That’s where money comes into play. Transactions happen quicker and people can ‘barter’ with people who wouldn’t have normally wanted their offers.
• Today money comes in many forms - paper notes, coins, digital numbers.
• For many many years we were on a gold standard, meaning each paper note or coin was worth a specific amount of gold. From 1879 to 1930s people could trade $20.67 for an ounce of gold.
• But during the Great Depression, FDR cut the dollar’s direct tie with gold to be able to pump more money into the economy.
• In 1971, Nixon further cut ties with gold because rich foreigners were exchanging dollars for gold and depleting the U.S. gold reserves.
• Today, our money has worth because people have ‘faith’ that other parties will accept it. This is called ‘fiat’ currency. Kind of scary, right?
• Depending on the supply and demand of a particular country's currency, it has stronger and weaker worth.
• Printing money is a way to help a country in times of trouble, but this increase inflation - meaning the money is worth less. For example, with more money out in the world, it is worth less. This is why countries try to maintain inflation.
• Before we get too deep, the basic premise is that money has value that can be exchanged for goods and services. It’s harder to understand this value when it’s just a number on a computer screen.

At the end of each section, we give you some resources (websites, calculators, guides) that will help you understand the content from this section even better.

Welcome to a new module in the Personal Finance Masterclass. In this section, we'll be covering budgets, savings, and reducing expenses.

In this lecture of the Personal Finance Masterclass, you'll learn why your savings rate is so important.  Mike discusses why it's more important than how much exactly you save and even the return on your investments!  

In this lecture of the Personal Finance Masterclass, you'll learn how to do budgets the smart way. 

• What is a budget?
• Why do I budget?
• How to budget the smart way.

In this lecture of the Personal Finance Masterclass, you'll learn 3 tools that we use to track our spending.

In this lecture of the Personal Finance Masterclass, you'll learn how to do your budget with Mint.com. We'll show you how to create categories and set prices for your categories You'll then learn how to put each of your transactions into the right category and see your monthly budget.

Learn how to budget using a spreadsheet like Microsoft Excel. We provide a template for you to use and follow along with.

In this lecture of the Personal Finance Masterclass, you'll learn whether reducing expenses or increasing income is better.

• People often wonder why they should cut out the $5 latte or $10 fast food meal. It doesn’t seem like doing that can make much of a difference.
• Before we look at some easy ways to reduce expenses, we need to understand why reducing expenses is important and why the small stuff matters.

In this lecture of the Personal Finance Masterclass, you'll learn some of our favorite ways to reduce expenses, including:

• Having a shopping lists - we buy and waste so much food. Stick to a list that your write beforehand.
• Pack your lunch - this saves hundreds each month if you typically eat out.
• Buy things used - Craigslist and ebay are my favorite places to shop.
• Ride a bike - If you can’t ride your bike to work, use a bike or walk to other places within a mile or two of your house. In the long term, think about living somewhere close to stores and activities.
• Be a better drive - driving 70 mph versus 55, driving with under inflated tires, and having a bunch of junk in your car can decrease fuel efficiency by up to 20 percent. That’s 1 wasted gallon of gas for every 5 you purchase.

In this lecture of the Personal Finance Masterclass, you'll learn where people spend most of their money.  Yes you could pinch pennies and clip coupons.  But you'd be much better off if you first get your housing, transportation, and food spending under control.  

In this lecture of the Personal Finance Masterclass, you'll learn about emergency funds. An emergency fund is an account that holds liquid funds available in case of emergencies. This lesson will show you how much you need to save in your emergency fund, and where to keep the money.

In this lecture of the Personal Finance Masterclass, you'll learn the difference between traditional banks and local credit unions.  More than anything else the difference is ownership.  Traditional banks are owned by shareholders, credit unions are owned by it's members. 

In this lecture of the Personal Finance Masterclass, you'll learn about automating your finances.  We think this is one of the best ways to get your spending under control and meet your long term goals. 

In this lecture of the Personal Finance Masterclass, you'll learn some fun frugal activities that will save you money including:

• You can find many lists of frugal activities online for whoever you are (family, dates, kids). Here are some of my favorite activities.
• Getting out in nature. Nature is typically free. Going on walks, bike rides, exploring the world is fun for people of all ages. Pack a picnic!
• Date night at home. Swapping a fancy dinner and movie for a home-cooked meal and redbox can save tons of money.
• Making gifts. Remember the good-old mix tape? Making gifts instead of buying individual gifts can save money throughout the year. Food items are always a hit!
• Use your library! Reading books seems to be somewhat of an old-fashioned activity. My wife and I try to have a book we’re reading at all times. And I try to consciously replace TV-time with reading time. We get our books from the local library for free.
• Learn to fix things! Being able to do simple repairs around the house or the car can be fun and will save you money.

At the end of each section, we give you some resources (websites, calculators, guides) that will help you understand the content from this section even better.

Welcome to a new module in the Personal Finance Masterclass. In this section, we'll be covering how to grow your income with things like getting a raise, getting a better-paying job, having a side income, and making money online.

In this lecture of the Personal Finance Masterclass, you'll learn the flip side of increasing income vs. reducing expenses. This video talks about why increasing income is better (or at least a really good thing).

In this lecture of the Personal Finance Masterclass, you'll learn about valuing your time.  Is it as simple as applying your hourly wage to your free time?  We think you should consider whether you enjoy the task and if you'll learn a new skill before hiring a professional to complete a chore.  

In this lecture of the Personal Finance Masterclass, you'll learn about getting a better paying job.  Mike offers a few tips for those on a dedicated career path and those who lack marketable skills. 

In this lecture of the Personal Finance Masterclass, you'll learn about side income. What is a side hustle? What side hustles are there? How do you start a side hustle?

• Side income is one way to increase income if you can’t get a better job right now or a promotion.
• Side hustles as I call them can be done at night or on the weekend.

In this lecture of the Personal Finance Masterclass, you'll learn about turning hobbies into profit.  Whether it's buying and selling for profit or selling your own products online, there are many ways to turn your hobbies into a side business. 

In this lecture of the Personal Finance Masterclass, you'll learn about the importance of having a great work / life balance. Some of the keys to success are:

• Be careful about maintaining a good work/life balance
• Set hours to work on your side business (or full business)
• Keep weekends/evening for social time

In this lecture of the Personal Finance Masterclass, you'll learn about making money online. One of the ways that I dramatically increased my income was by building an online business that works semi-passively.

What is passive income? Passive income is making money without trading time. Online, you can make passive income by selling digital products. This could be something like an ebook, online course, or audio guide. You can make money from advertisements on a website or YouTube video. You can be an affiliate for products where you make money for referring people to purchase a certain item.

There’s not secret to how to make money online. What you need to do is create something of value that people want and figure out a way to sell it.

At the end of each section, we give you some resources (websites, calculators, guides) that will help you understand the content from this section even better.

Welcome to a new module in the Personal Finance Masterclass. In this section, we'll be covering credit card - how they work, how to build up a good credit score, and why it is important.

In this lecture of the Personal Finance Masterclass, you'll learn what your credit score actually means.  Do you need a credit score? What's a credit report?  Who looks at my credit score? Mike discusses the best way to maintain your credit score without being in debt. 

In this lecture of the Personal Finance Masterclass, you'll learn how to maximize your credit card rewards.  What's the difference between cash back, points and miles?  How do people acquire millions of air miles without spending millions of dollars?  What bother with credit card rewards at all?  Mike discusses the pros and cons of rewards and how best to acquire and utilize them. 

In this lecture of the Personal Finance Masterclass, you'll learn about the difference between debit and credit.  Should you use your PIN or signature at checkout.  For the most protection, you should use a credit card and pay off the balance at the end of each month.  

At the end of each section, we give you some resources (websites, calculators, guides) that will help you understand the content from this section even better.

Welcome to a new module in the Personal Finance Masterclass. In this section, we'll be covering loans, debt, and how to reduce debt. We'll show you a step-by-step for getting rid of your debt.

In this lecture of the Personal Finance Masterclass, you'll learn about what a loan is and how they work. 

A loan is the act of giving money, property, or other material goods to another party in exchange for future repayments.

In this lecture of the Personal Finance Masterclass, you'll learn about when you should take out loans.

Loans can be a good thing. Reasonably-priced education and buying a house are two times when I think loans are a good idea. Why? Because investing in yourself with education is probably a good idea in the long run. You’ll make more money and it will quickly pay for itself (unless you’re taking on mountains of debt like I did for expensive private school education).

In this lecture of the Personal Finance Masterclass, you'll learn what it means to be in debt. Are you in debt? I have been in debt in the past. Let’s talk about Phil's debt story and what it means to be in debt.

In this lecture of the Personal Finance Masterclass, you'll learn how to get rid of your debt in 5 steps.

• Step 1. Stop creating new debt.
• Step 2. Rank your debt by interest rate.
• Step 3. Ask for lower interest rates (you can sometimes move credit cards to other banks with lower interest).
• Step 4. Look at your budget (income/expenses)
• Step 5. Choose the stack or snowball method and kill your debt!

In this lecture of the Personal Finance Masterclass, you'll learn how Mike and Lauren would pay down down.  Although most people accept debt as a normal way of life, we feel a little bit differently.  Although it might not be a popular opinion, we would treat debt as if getting out of it were an emergency.

In this lecture of the Personal Finance Masterclass, you'll learn about debt consolidation.  If you're behind on a few payments you've probably received calls from "debt relief" companies, but is it a good idea?  For most people the answer is no.  That's because debt consolidation treats the symptom (debt) and not the root cause (your spending problem).  

In this lecture of the Personal Finance Masterclass, you'll learn about debt collections and how you can STOP abusive collection practices.  

In this lecture of the Personal Finance Masterclass, you'll learn the difference between secured and unsecured debt. Unsecured debt (like credit cards) do not require collateral in the event that you do not pay back the loan.  Secured debt (like mortgages) require a physical asset the bank can take away if you default on your loan. 

In this lecture of the Personal Finance Masterclass, you'll learn why co-signing a loan is almost never a good idea.  As a co-signer you share 100% of the responsibility with none of the benefit.  If a bank has predetermined someone is not creditworthy, you put yourself at serious risk.  

At the end of each section, we give you some resources (websites, calculators, guides) that will help you understand the content from this section even better.

Welcome to a new module in the Personal Finance Masterclass. In this section, we'll be covering investing. You'll learn how investing works, why it is important, and the smart way to invest.

In this lecture of the Personal Finance Masterclass, you'll learn about the basics of investing.  What is a stock?  What is a bond?  How do you actually make money in the stock market?

In this lecture of the Personal Finance Masterclass, you'll learn about alternative investments.  While most people are happy with stocks and bonds, there are alternative investments like options, futures, gold, and real estate that can help diversify your portfolio.  These types of investments are inherently more complex and require thorough research before you consider them.

In this lecture of the Personal Finance Masterclass, Mike covers a few "rules of thumb" to consider before you start investing in stocks and bonds.  There isn't a one-size-fits-all approach to investing in the stock market.  However, it makes sense for most people to invest in low cost index funds rather than individual stocks.  

In this lecture of the Personal Finance Masterclass, you'll learn the power of investing when you're young. We show you 3 graphs that will blow your mind!

In this lecture of the Personal Finance Masterclass, you'll learn about the power of compound interest.  As Albert Einstein puts it, “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”

In this lecture of the Personal Finance Masterclass, you'll learn why most people should be suspicious of financial advisors.  Although many advisors are nice people, they're often paid a commision based on the investment advice they give you.  This creates a conflict of interest that puts their best interest ahead of yours.  

In this lecture of the Personal Finance Masterclass, you'll learn about the different types of investment accounts - tax exempt, tax advantaged, and taxable.

In this lecture of the Personal Finance Masterclass, you'll learn about what a target date fund. Basically, it's a mix of assets (stocks, bonds)  that automatically adjusts depending on the time frame of a particular investor.

In this lecture of the Personal Finance Masterclass, you'll learn why Phil likes to use Vanguard for investing in index funds.

At the end of each section, we give you some resources (websites, calculators, guides) that will help you understand the content from this section even better.

Welcome to a new module in the Personal Finance Masterclass. In this section, we'll be covering retirement. How does retirement work? How can you start saving for retirement? How do you know if you have enough money for retirement?

In this lecture of the Personal Finance Masterclass, you'll learn more about the 4% rule. This is a good introduction to retirement, and how it should work.

In this lecture of the Personal Finance Masterclass, you'll learn how retirement works (and doesn't work).

In this lecture of the Personal Finance Masterclass, you'll learn why retirement accounts are great - they're places to save money until retirement age, typically 59.5 -  65 with tax advantages.

In this lesson, we'll learn about the following accounts:

• 401(k)
• 403(b)
• Roth IRA
• Traditional IRA
• SEP IRA
• SIMPLE IRA
• Profit-Sharing
• Solo 401(k)

In this lecture of the Personal Finance Masterclass, you'll learn about pensions. A pension is a retirement account that an employer maintains and gives you a fixed payout when you retire. Let's learn why it's a great option for retirement.

In this lecture of the Personal Finance Masterclass, you'll learn the steps to saving for retirement.

In this lecture of the Personal Finance Masterclass, you'll learn why it's probably worth investing in your 401(k), even if it comes with high fees.  The company match and tax deductions often make up for all the fees.  Lauren also shares a few tips about changing your 401(k) so you get the low cost options you'd like.  

In this lecture of the Personal Finance Masterclass, you'll learn if you can count on Social Security in retirement.  The question is not whether or not Social Security will run out, but whether benefits will be cut.  As of a recent report, benefits are likely to be cut to around 75% when the trust fund reserves run out in 2034.  That's the bad news.  The good news is that you should at least receive something. 

At the end of each section, we give you some resources (websites, calculators, guides) that will help you understand the content from this section even better.

Welcome to a new module in the Personal Finance Masterclass. In this section, we'll be covering early retirement. Mike and Lauren are on a path towards early retirement, and they show you how to retire early.

In this lecture of the Personal Finance Masterclass, you'll learn about the difference between financial independence and early retirement.  Are the two words synonymous?  What about early retirement?  While there is no definitive answer, Lauren shares her thoughts about "retirement" means to her. 

In this lecture of the Personal Finance Masterclass, you'll learn how to quickly determine how much money you'll need for your dream retirement.  

In this lecture of the Personal Finance Masterclass, you'll see why self-reliance and adaptability are two of the most important skills every retiree should learn. 

In this lecture of the Personal Finance Masterclass, you'll learn how to calculate your net work. We'll cover what to include in your assets and liabilities.

In this lecture of the Personal Finance Masterclass, you'll learn how you actually get your money when you retire.  Lauren discusses capital appreciation and dividends, two ways you earn money from your investments. 

At the end of each section, we give you some resources (websites, calculators, guides) that will help you understand the content from this section even better.

Welcome to a new module in the Personal Finance Masterclass. In this section, we'll be covering real estate, mortgages, and other big ticket purchases like buying a car. We'll give you a step-by-step process for buying and saving up for a home. We'll also talk about buying a car.

In this lecture of the Personal Finance Masterclass, you'll learn the process of buying a home. While this isn't a real estate course, it's important to understand how to buy a work.

In this lecture of the Personal Finance Masterclass, you'll learn how to save for a house down payment. Here are the basic steps:

• Establish your goal & timeframe
• Create a monthly budget
• Separate your housing budget savings
• Make savings automatic with automatic direct transfers
• Put any extra money in your down payment savings
• Save on big once per year things like travel/vacations
• Move to a smaller place to save
• Work more & side hustle
• Keep saving for retirement

In this lecture of the Personal Finance Masterclass, you'll learn what's better - to pay off your house mortgage or to invest your money and pay the minimum on your mortgage.

In this lecture of the Personal Finance Masterclass, you'll learn about the basics of buying a car.  New vs. used, lease vs. purchase, dealer vs. private party, etc.  These are questions you need to answer before starting your car search. 

In this lecture of the Personal Finance Masterclass, you'll learn how to determine how much car you can actually afford. By applying the 20-4-20 rule, you can buy a car without breaking the budget. 

In this lecture of the Personal Finance Masterclass, you'll learn how to minimize the impact of a car loan on your finances.  Mike also shares a few tips to save interest and fees on your car purchase.  

In this lecture of the Personal Finance Masterclass, you'll learn what happens when you owe more on your car loan than the car is worth.  It's called being upside down on the loan, and it's very difficult to get out from underneath.

At the end of each section, we give you some resources (websites, calculators, guides) that will help you understand the content from this section even better.

Welcome to a new module in the Personal Finance Masterclass. In this section, we'll be covering taxes. What are taxes and how do they work? How do you reduce your taxes?

In this lecture of the Personal Finance Masterclass, you'll learn about what taxes are and why we pay them.

In this lecture of the Personal Finance Masterclass, you'll learn why a higher tax bracket is not a bad thing.  You cannot take home less by earning more!

In this lecture of the Personal Finance Masterclass, you'll learn why you don't want a tax refund.  Ideally, you neither owe money nor be owed a refund from the IRS.  In this video, Mike shows you how to adjust your withholdings. 

In this lecture of the Personal Finance Masterclass, you'll learn about the penalty you'll have to pay if you don't have health insurance.

In this lecture of the Personal Finance Masterclass, you'll learn about capital gains tax.  By holding on to your investments for longer than 1 year, you can significantly reduce your tax burden.  

In this lecture of the Personal Finance Masterclass, you'll learn about doing your taxes yourself.  Mike outlines the pros and cons of using free tax software vs. hiring a professional.