Let's Get Real About Money!

354 Pages·2007·1.86 MB·English

by  Eric Tyson

Praise for Let’s Get Real About Money!
“Many people have developed attitudes, beliefs, and fears about money
that prevent them from acquiring, investing, and spending it in healthy
ways. In Let’s Get Real About Money!, Eric Tyson helps readers get past
all that, shed their budgetary baggage, and start building happy and
healthy financial futures. Everyone can profit from this new book—
I did.”
—Dr. Brian Russell, Psychologist as seen on CNN, Court TV,
and Fox News; Professor, University of Kansas
“Eric has a rare ability to simplify the complex. He truly understands all
facets of money, but he doesn’t worship it. Eric views money in a refresh-
ingly wholesome way—as a means to an end, not as an end in itself.”
—Ray Brown, Real Estate Broker and coauthor of Home Buying For
Dummies, House Selling For Dummies, and Mortgages For Dummies
“Whether you consider yourself a financial neophyte or a savvy
investor, Eric Tyson provides plenty of useful advice on how to avoid
those self-sabotaging mistakes that can prevent you from reaching your ptg
financial goals. For those who are wondering why they can’t seem to get
ahead financially, this easy-to-understand book is essential reading.”
—Kalman A. Chany, author of Paying for College Without Going Broke
“Eric Tyson cuts through the get-rich-quick hucksterism of today’s
greed mongers, offers smart and sensible advice about achieving long-
term economic security, and encourages readers to ask the ultimate
financial question: What good is money anyway if you sacrifice family,
friends, health, and life balance to try and get it?”
—John de Graaf, coauthor of Affluenza: The All-Consuming
Epidemic and Editor of Take Back Your Time
“Eric Tyson demonstrates once again his leadership and expertise in
educating individuals in the many elements of personal financial man-
agement, but with a twist: Making the right life choices, not just money,
is the goal.”
—John A. Haslem, Professor of Finance, University of Maryland,
and author of Mutual Funds: Risk and Performance
Analysis for Decision Making
“In this book Eric Tyson adds a welcome, coherent approach for put-
ting your financial life into proper perspective.”
—Christopher J. Platt, Senior Editor, Bottom Line/Personal
“It was a pleasure to read this book. Tyson cuts through the marketing
hype and helps us make the decisions about money that are best for us
and our families.”
—Joseph Schmelzeis, President, JPS International, Inc.
“Finally, a much needed break from the seemingly endless stream of
‘get rich quick’ books that pass for financial advice. Eric Tyson leverages
his years of experience and clearly lays out a refreshing way to look at
often-overlooked ‘real’ issues around money—giving the reader a
myriad of real-life questions and a practical approach to discovering
sensible solutions.”
—Craig Litman, Managing Partner,
Litman/Gregory Asset Management, LLC
“Eric Tyson uses the latest research and his own experience to clearly
explain why many people fail to take the right actions with their money ptg
and how to overcome those obstacles.”
—Bob Carlson, Editor of Retirement Watch newsletter
“It’s about time. Let’s Get Real About Money! throws the book at
infomercial come-ons and get-rich-quick schemes by properly present-
ing successful personal finance as a discipline of fiscal fitness.”
—Broderick Perkins, DeadlineNews.Com
“Eric Tyson’s latest book is a gold mine of excellent advice on personal
finances and ways to maximize your wealth. Everyone can benefit from
reading this book.”
—Russell L. Blaylock, M.D., author of
Health and Nutrition Secrets That Can Save Your Life
Let’s Get
Real
About
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Money!
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Let’s Get
Real
About
Money!
Profit from the Habits
of the Best Personal Finance Managers
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Eric Tyson
Vice President, Publisher: Tim Moore
Associate Publisher and Director of Marketing: Amy Neidlinger
Executive Editor: Jim Boyd
Editorial Assistant: Pamela Boland
Development Editor: Russ Hall
Digital Marketing Manager: Julie Phifer
Marketing Coordinator: Megan Colvin
Cover Designer: 4 Eyes Design
Managing Editor: Gina Kanouse
Project Editor: Betsy Harris
Copy Editor: Water Crest Publishing
Proofreader: Karen A. Gill
Indexer: Lisa Stumpf
Compositor: TnT Design, Inc.
Manufacturing Buyer: Dan Uhrig
© 2008 by Eric Tyson
Published by Pearson Education, Inc.
Publishing as FT Press
Upper Saddle River, New Jersey 07458
FT Press offers excellent discounts on this book when ordered in quantity for bulk
purchases or special sales. For more information, please contact U.S. Corporate
and Government Sales, 1-800-382-3419, [email protected].
For sales outside the U.S., please contact International Sales at
[email protected].
Company and product names mentioned herein are the trademarks or registered
trademarks of their respective owners.
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All rights reserved. No part of this book may be reproduced, in any form or by any
means, without permission in writing from the publisher.
Printed in the United States of America
First Printing November 2007
ISBN-13: 978-0-13-234161-5
ISBN-10: 0-13-234161-1
Pearson Education LTD.
Pearson Education Australia PTY, Limited.
Pearson Education Singapore, Pte. Ltd.
Pearson Education North Asia, Ltd.
Pearson Education Canada, Ltd.
Pearson Educatión de Mexico, S.A. de C.V.
Pearson Education—Japan
Pearson Education Malaysia, Pte. Ltd.
Library of Congress Cataloging-in-Publication Data
Tyson, Eric (Eric Kevin)
Let’s get real about money : profit from the habits of the best personal finance
managers / Eric Tyson.
p. cm.
ISBN 0-13-234161-1 (pbk. : alk. paper) 1. Finance, Personal. 2. Investments. I.
Title.
HG179.T966 2008
332.024—dc22
2007014118
This book is dedicated to all people who aspire to improve
their financial health to better accomplish their personal goals
and who have the courage and confidence to admit what they
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don’t know and to learn from others.
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Contents
1 Getting Real, Not Real Obsessed,
About Your Money 1
............................................................................
The Surprising Wealth-Happiness Connection....................................4
Buying the Good Life................................................................................6
Choosing Your Role Models ....................................................................7
The Power of Money Knowledge ..........................................................9
Personal Finance Quiz I—The Basics ..................................................9
Answers to Personal Finance Quiz I ..........................................13
Scoring and Evaluating Your Quiz Results ..............................14
Personal Finance Quiz II—Key Concepts ..........................................15
Answers to Personal Finance Quiz II ........................................19
2 Getting Motivated 23
............................................................................
Personal Finance Quiz III—Avoidance Behaviors............................27
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Understanding Why We Procrastinate ................................................29
Conquering Money Avoidance and Disorganization........................30
3 Your Money Beliefs and Practices 35
........................................
Your Money History ..............................................................................36
Taking Stock of Your Money Background ..........................................37
Your Friends and Money ......................................................................39
Your Environment and Money ............................................................40
4 Developing Your Personal Financial Action Plan 41
......
Background Information ......................................................................43
Goals and Concerns................................................................................44
Assets ........................................................................................................44
Planning ..................................................................................................47
Net Worth Calculation..................................................................48
Retirement Expectations Versus Means ....................................48
Pension Decisions ..........................................................................59