2. Assets vs liability

3. Car Loan The average car payment in America is $450/mo A 2009 Tahoe in Idaho right now is $23,000, $25,000 after tax/registration If I do a 5 year loan at a low rate of 5.5% my monthly payment is $477.53 At this rate, $3,652 your $23,000 is now nearly $5,000-$6,000 more A new car loses 50% of its value when its leaves the lot, trade in value Is this an asset or liability?

4. Student Loan Subsidized vs un-subsidized 10 year pay back plan vs. income adjusted Average student debt of $60,000 Your monthly payment is: $684.34 Over a 10 year payment plan you pay back $82,121.. What does it mean to compound? Weekly Payments of $171 | 39-mo and $79,500 | It will also ask if you want to advance your payments

5. Credit Card Its like a loan but 14% interest average

6. What is a Mortgage When you go to buy a house it can be a long process You go looking for a house you want to buy When you find it, you will typically offer upfront $1000-$5000 earnest money to reserve it and hold it in place. You can back out and get your money, but sometimes not. Then you have to get approved for a loan. You can be pre-approved too, but that is a hit on your credit score so I prefer not to be pre-approved. On my first home I was approved upto $210,000. Currently if you buy a home, they prefer to have you do a downpayment of at least 20%. If you do not, they make you pay what is called PMI, or Mortgage Insurance, its an insurance policy that if I go backrupt, the bank gets its money from an insurance agency. You the buyer pays for that. Currently you can buy your first home for only 3.5% down. On my first house, it was only $114,000 so even though I did not have a lot of money, I could still buy it.

7. Mortgage Continued If a house is a liability and I lose money, why then did I buy a house? Because I intended to turn it into an asset Cheaper than rent My mortgage payment was roughly $800 including PMI I had it rented for $700 with room-mates I sold it for $160,000. Equity vs. Sweat Equity I made roughly $40,000 on that house to pay off student loans and have a 15% down payment on this house. I have renters here and my home office I get a tax deduction on

8. Insurance General Terms Premium - The price of insurance protection for a specified risk for a specified period of time. Lump payment discount, $480/6-mo or $100/mo for 6-mo Deductible - Amount of loss that the insured pays before the insurance kicks in. Co-pay

9. Renters insurance You have to pay for this yourself Average about $16/mo Protects against apartment thefts, floods, fires, property destruction.

10. Car Insurance – Buy yourself Variants Are you protected Car Protected Commercial Bodily injury liability provides protection if you injure or kill someone while operating your car. It also provides for a legal defense if another party in the accident files a lawsuit against you. Collision coverage pays for damage to your car when your car hits, or is hit by, another vehicle or other object. Comprehensive Insurance - Auto insurance coverage providing protection in the event of physical damage (other than collision) or theft of the insured car. For example, fire damage or a cracked windshield would be covered under the comprehensive section.

11. Car Insurance – Buy yourself Variants Are you protected Car Protected Commercial Property damage liability protects you if your car damages someone else's property. It also provides you with legal defense if another party files a lawsuit against you. Uninsured motorists coverage pays for your injuries caused by an uninsured driver or, in some states, a hit-and-run driver. In some states, there is also uninsured motorist coverage for damage to your vehicle. Medical payments, no-fault or personal injury protection coverage usually pays for the medical expenses of the injured driver and passengers in your car. There may also be coverage if you are injured by a vehicle as a pedestrian.

12. Home Owners Insurance – Buy yourself Forced to pay for it yourself. You must have it, your house to be in good condition to keep it. Sometimes will get into mortgage trouble if you lose it. Will typically cover you for the re-construction cost of your home + 150%

13. Health Insurance –you Pay, or Work will pay As you add family members gets even more expensive. Hospital Visits – sometimes different Prescription Co-pay Preventative Care Separate from Dental/Vision Typically you will have a higher premium and a lower deductible/ vice versa $750/mo and a $5,000 Deductible $460/mo with a $20,000 deductible / per person Under $10,000 - free Group Health vs. Others – Blue Cross you can choose your Doctor BlinkHealth.com, Tele-Physician, Medi-share.com

14. Disabilities insurance – You Or Job Pay For it Replace a portion of your income to help you meet current expenses. Pay benefits for a predetermined number of years (until you either return to work or reach retirement age). Provide benefits that are free from income taxes, assuming you pay your premiums with after-tax dollars. Complement any group short- or long-term disability plan you may have through your employer. Go with you; you own the policy and can keep it no matter where you work, as long as you continue to pay premiums.

15. Death & Dismemberment Typically Work Only AD&D insurance pays you or your beneficiaries a set amount of money if your death or dismemberment is the direct result of an accident. However, there are coverage restrictions that make accidental death and dismemberment insurance far less useful. typically they will only give you $10K to cover burial

16. Life Insurance you buy it yourself Term is typically 20 or 30 years vs Whole Life Term is about $14/mo and whole life is $85/mo Typically in ranges of $200,000K - $1Million Cheaper for Women typically As a family man, you need to have this. I recommend getting a 30 year at 22-35 and then another one 40-50 age The second one will be more expensive, but for a season your double covered while your kids and wife are at critical junctures and if you have an accident from 50-80 your still covered. After 50 you will pay $200+ for a new whole life policy, they wont do a term one anymore typically.