Pivot-Point: The Beginning of Your Financial Journey

By Douglas E Myers

To the kids: Life is a journey. People will try to knock you down the rest of your life. If you let them, then you will fall. Times can get hard. Trust only the ones worth trusting. Stay focused. Stay positive. Dont let anyone break down your dreams. God is the answer and will never leave your side. Let Him into your heart and He will fill it.

This book can only take you so far. There are common principles in the book that can lead you to a successful life. The real magic is within you. Drive and discipline will win the race. Focus on your life and avoid greed, jealousy and selfishness.

• Language: English
• Publisher: AuthorHouse
• Release date: Aug 9, 2012
• ISBN: 9781477241554

Douglas E Myers

Douglas Myers grew up in Georgetown, IN. He is currently married to his wife Liz Myers and has three children, son Benjamin, step-son Kent and step-daughter Lauren. With 20 years of investment experience, Doug has worked with several banks, insurance companies, mutual fund companies, brokerage firms and an institutional money management company during his tenure in the financial industry. Doug has also been a licensed fitness trainer and has built three houses. After writing his first book Gut-Check… serving God on your financial journey, Doug decided that giving back to young adults was the perfect place to help shape the future of our America.

Book preview

Contents

A special thanks to

Introduction

Chapter One    Starting a Banking Relationship

Chapter Two    How About That Credit Card?

Chapter Three    Saving Early The Great Advantage

Chapter Four    Ten Young Financial Mistakes

Chapter Five    Building Your Credit

Chapter Six    Creating a Budget

CHAPTER 7    Protecting What You Can’t See

Chapter Eight    Buying a House Versus Renting

Chapter Nine    The Finishing Touch

CHAPTER 10    The Perfect Story

Index    Terms and Definitions

A special thanks to

Thanks to my wife for allowing me the time to finish this project.

Thanks to Linda Owens for proofing the final copy.

Thanks to Jennifer Cleary for helping me out of a jam to finish this project more smoothly.

Thanks to God for everything in my life.

Introduction

Welcome to the beginning of your financial journey. This book is intended for young minds. It’s a look into the world of making, saving, organizing and protecting money. This area of your life has been shaped by the views of teachers, parents, family and friends. Those are the same types of people who have been seeking financial advice since you were born or maybe even before that. When taking advice from anyone, make sure they are knowledgeable at that topic. You wouldn’t want a basketball coach to give advice on your hanging curve ball if you could talk to the baseball coach instead. You wouldn’t have your English teacher help you with math homework if the math teacher was available, too. It’s common sense to trust the ones who have been there during your life. The hard part is accepting that sometimes they don’t know the answers or have the best solution.

This book is going to break down some basic concepts to help you on your journey. It will help in making big decisions and little ones, to help avoid common mistakes that many adults have made during their lifetime. We will journey into developing a relationship with a banking institution, establishing your credit, buying cars, saving for retirement, buying a house, getting the job of your dreams, developing a sound budget, working your resume’, conquering job interviews and starting college. We will talk about the dangers of credit cards and the danger of getting into a big hurry to do everything at once. Everyone likes new cars and being able to afford that first house. This book will be advising you around every corner to stay debt free. Don’t get into situations you can’t afford. You will be shown the power of time. You have so much time in front of you to save a fortune. Do it the right way. Learn from the mistakes of our parents and the adults around us.

A Pivot-Point in life starts with one strong move. That move will advance you through all of your financial struggles in life if you stick to the basics. Make your move right now!

Chapter One

Starting a Banking Relationship

• Find a bank that is close.

• Find a banker that works well with you.

• Understand how fees work on your accounts.

• ATM cards are like cash.

• Keep your balance accurate (know how much money you have).

• Keep accurate files, but not too many! Keep it simple.

It all starts with understanding what a bank account is. The concept of a checking and a saving account go hand-in-hand. The checking account is your day to day operations. The savings account is where the left over or emergency money needs to be going. It is important that you view the savings account as a last resort to dip into. The money in the savings account is there for times when you run into trouble or times you are holding out for a big purchase. It is not for that crazy night out at the bar or that wild vacation on the spur of the moment. Be wise and don’t spend your hard earned savings on something that only last a few moments in your life.

When looking for a banking institution, always remember location. Where are you going to be spending most of your time? At school, around your job or close to home? If you are going to school in another state, but will be home often, then check out what banks will be around both places. You will need to be within arm’s reach of your bank. Go to the same branch as often as possible. It helps to learn faces and develop relationships with bank employees. You never know when you might need their help with something. When you go to open your account, don’t forget to bring two pieces of identification with you. One of those needs to have a picture of you on it. A driver’s license, state ID or passport will do. The other piece can be any of those three or a credit/debit card. I would suggest you call the bank before arrival to make sure you have a proper second piece of identification. If you are under the age of 18, you need to bring an adult with you. Most banks won’t allow a minor on an account unless it’s joint with an adult. Remember, if this adult is going to be a joint owner on your account, they will have access to your money, also. With this in mind, please pick someone who you trust with your money.

Understanding your checking account is also very important. How much do you need to keep inside the account at all times? Find out different things you can do to avoid fees in the account. Maybe connecting your savings account to your checking will prevent you from overdrawing the checking account. An overdrawn account can cost you big money. Fees add up real fast at $30-$50 per transaction.