In this week’s episode, I take a little time to outline the 12 lessons that make up my Personal Finance (class syllabus) at THE University of Houston. Also, I’ll share a brief update on the Internship at the Bauer College of Business and a “compliance status” for my interview with Risher Randall at Morgan Stanley. Finally, I’ll play the funniest college lesson of my life – its all about clear communication!
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The 12 Collegiate Lessons in Personal Finance
1. The Law of Spending and Saving
This first lesson moves from an overview of the course to a class discussion on the powerful influences that drive financial choices in every culture.
2. Creating Your Spending Plan (Powered by Purpose)
Becoming a Millionaire by Age 50 doesn’t happen accidentally. You need a well defined spending and saving plan that works for you. It’s simple— and powerful – by writing down your goals for your money and intentionally following a spending plan, you create boundaries that quickly bring you more success, significance, and satisfaction in life.
3. Financial Freedom and Your Debt Score
The idea that you “need to build a good credit score”, can cause more harm than good – and often does just that. Borrowing money is so ingrained in our culture, its hard to imagine life without debt. The truth is, “Debt” forces us to become slaves financially and it limits how we manage our money. In this lesson, students learn why a “credit score” is really a “Debt” score that helps lenders more than consumers.
4. Credit bureaus, scores, reports, and the law
For students, debt-prevention is the best solution! The temptation to borrow and buy bombards us every day. Learning how to deal with debt – and how to clean up any debt mess we’re already in – is the subject of this lesson.
5. The Law of Purpose and Commitment
This lesson introduces the power of planning based on a clear sense of purpose. It also addresses the role of personal finance in deciding careers and potential career choices for differing personality styles.
Understanding personality styles will gives you insight into how different people process decisions differently and what your natural tendencies might be. This information can help you understand and accept strengths and weaknesses and match career tasks with personality styles. This lesson also addresses common transitions that occur after college graduation.
6. Managing money, life, and relationships
This lesson describes the general differences that exist between men and women as they relate to money, explains the characteristics of what Dave Ramsey calls financial nerds and free spirits, and encourages students to experiment by giving to people in need.
7. Caveat Emptor – Buyer Beware!
This lesson describes four ways companies compete for your money, summarizes Dave Ramsey’s five rules for making large purchases, and explains the role that opportunity cost plays in purchasing decisions.
8. The seven rules for powerful negotiation
This lesson describes the seven rules for powerful negotiating. We also explore some ways to find good deals, and discuss a few ways to save money while attending college or trying to get out of debt.
9. The insurance crash course for students of personal finance
This lesson describes the six basic types of insurance protection students of personal finance need to consider now – or at some point in the future. We’ll discuss when is the right time to buy, how much is the right amount to buy, and what is the right type to buy…
5. Long-Term Care, and
6. Life Insurance.
10. The Law of Tax-Advantaged Investing – part one
Becoming a Millionaire is at the top of most everyone’s list of life goals. The Essential Elements to wealth building are surprisingly simple—and even kind of boring. It’s no secret: Spend Less Than You Earn – and Invest The Rest. Start doing this after you graduate and you will easily become a millionaire by age 50. Its not Mission Impossible.
In this lesson, we’ll also look at three of the most effective investment strategies available: “DAD”
2. Asset Allocation
11. The Law of Tax-Advantaged Investing – part two
This lesson describes various “TYPES” of retirement accounts.
We’ll summarize ways to maximize retirement savings with each of these “types” of accounts, company matches, and compare different types of investment vehicles and asset classes.
12. Mortgaging your future with real estate
This lesson explains the financial benefits – and drawbacks – of owning a home. Also, we’ll explain how to maximize the sale of a home. And, we will look at the various types of home mortgages (fixed rate mortgage, adjustable rate mortgage, reverse mortgage, accelerated or biweekly payoff).