How to Adult: Personal Finance for the Real World

Title: How to Adult: Personal Finance for the Real World

Author: Jake Cousineau

Paperback: 235 pages

Publisher: Independently published

Publishing date: March 23, 2021

Who is this book for? 

  • High school graduates, college students and any other young adult who needs to prepare for the financial realities of adulthood.
  • Young adults who’ve made money mistakes due to a lack of financial education and want to learn how to better handle their money in the future.

What’s inside this book?

  • A clear, easy-to-understand explanation of financial topics, like compound interest, mutual funds, insurance deductibles, Roth IRAs and more.
  • Practical examples and real-life anecdotes to bring financial lessons home.
  • Hands-on tools to help readers jump-start their financial journeys.
  • A “Build Your Skills” section at the end of each chapter inviting readers to test their knowledge and retention of the chapter’s material.

5 lessons you’ll learn from this book: 

  1. The foundational concepts of personal finance and building wealth.
  2. How to avoid costly financial missteps.
  3. How to budget, save and invest your money wisely.
  4. How taxes and insurance work.
  5. How to prepare for life’s big expenses.

3 questions this book will answer for you:

  1. What are the financial basics I need to know to make it in the real world?
  2. How can I avoid making money mistakes as a young adult?
  3. Can I learn about finances without breaking my brain over complicated jargon and complex concepts?

What people are saying about this book:

  • “This! This is what I needed when I was in high school. It is also what I needed when I was in college, and when I bought my first car, and when I bought my first house, and when I opened my first credit card. Every high school student in America should have to pass a class that uses this book. The real-world examples are relatable and make the reader feel like they are armed with the knowledge they need. It doesn’t just make you book smart. It makes you street smart.” — Stukent Personal Finance
  • “In How to Adult, Jake Cousineau engages readers using a blend of storytelling, analogies, charts and research to deliver key financial lessons. Whether it’s comparing index funds to sports teams, or interest to pineapple on pizza, Jake has a gift in delivering financial advice in a way that will educate adults, young and old alike!” — NGPF Personal Finance
  • “The author does an excellent job of explaining complex concepts in clear terms using common language. I learned something new about taxes despite having filed them for the past 15 years. Clever and approachable. Highly recommend.” — Zach G

 Your Turn: What did you think of How to Adult? Share your opinion in the comments.

Learn More:
amazon.com
thefishow.com

How Does Financial POA Work?

Q: What is a financial power of attorney and how does it work?

A: A financial power of attorney (POA) is a legal document that grants a designated agent the authority to act on behalf of the principal agent in financial matters. The designated agent is often referred to as the attorney-in-fact and the principal agent is often referred to as the “principal.”

Here’s all you need to know about financial POA:

What is the purpose of financial POA?

The primary purpose of financial POA is to protect the principal and their family from a legal battle. The POA ensures that the principal’s finances will continue running smoothly, regardless of what happens to them.

How does a financial power of attorney work? 

Financial POA allows the designated agent to manage all of the principal’s financial matters. This includes paying bills, managing all accounts and investments and signing financial documents.

Financial POA is most commonly used when the principal is out of commission due to a medical emergency. Being laid up in a hospital bed does not mean the principal’s financial accounts are frozen and bills are put on hold. Having a financial POA in place will allow their finances to continue running smoothly until the agent is functioning in their usual capacity.

Which powers are granted to the attorney in a financial POA?

The extent of authority a POA grants can vary greatly, depending on how it’s worded. Most POAs extend the following powers to the agent on behalf of the principal:

  • Make financial decisions
  • Manage the principal’s accounts and investments
  • Manage the principal’s property
  • Conduct financial transactions
  • Collect retirement benefits
  • Pay bills
  • Pay medical expenses
  • Pay taxes
  • Purchase insurance
  • Sell assets

When does a power of attorney become effective?

The circumstances that dictate when a POA becomes effective will vary according to how the POA is worded. It may become effective as soon as it’s signed, or only upon the occurrence of a future event as indicated in the document.

If the document stipulates that the POA is effective immediately, the agent can act upon the principal’s account even if the principal is not incapacitated in any way. This kind of POA is often used for an agent to represent someone who travels often and may not be physically present to make important financial decisions.

Usually, though, a POA only becomes effective if the principal can no longer manage their own finances because they have become incapacitated, or one or more doctors have certified that they are physically or mentally unable to make decisions. This can be due to mental illness, a medical emergency, the onset of dementia, or any other event that renders the principal unable to function as usual.

In some states, a POA automatically becomes effective when the principal is incapacitated, even if this is not indicated in the contract.

When does a power of attorney end?

The authority conferred by a POA will always end upon the death of the principal.

Unless otherwise indicated in the contract or state law says otherwise, the POA also ends if the principal becomes incapacitated. If the authority continues after incapacity, it is called a durable power of attorney, or a DPOA.

A POA can also end if the principal revokes it, a court invalidates it or the agent is no longer able to represent the principal. In some states, the POA also becomes invalid upon divorce if the agent is a spouse.

What are the potential consequences of not appointing a POA? 

If an individual becomes incapacitated for any reason and they have failed to appoint an agent to act on their behalf, their financial matters will generally be left up to the government of their home state. If there are family members who want to step up, they will need to go through the courts to gain legal control of the principal’s finances. Generally, though, when someone does not have a durable power of attorney and becomes incapacitated, their financial accounts and assets will automatically revert to the state.

Can anyone be granted power of attorney? 

Most states have very few guidelines for who can serve as a financial agent. The only general stipulations are that the document be signed, witnessed and notarized. Of course, it’s best to choose someone you trust to responsibly manage your finances in your stead.

If you’re looking to set up a POA, we can help. Reach out to us at 734-676-7000 or shoot us a line at news@myaocu.com to talk about your options.

Your Turn: Have you drafted a POA? Tell us about it in the comments.

Learn More:
investopedia.com
daveramsey.com
legalzoom.com
legalnature.com

Know Yourself, Know Your Money

Title: Know Yourself, Know Your Money: Discover WHY you handle money the way you do, and WHAT to do about it!

Author: Rachel Cruze

Hardcover: 272 pages

Publisher: Ramsey Press

Publishing date: Jan. 5, 2021

Who is this book for? 

Anyone who’s ever wondered why they make the money choices they do and how they can change them for the better.
Anyone who has ever tried to understand why the people in their lives make the money choices they do.

What’s inside this book?

The introduction and explanation of the 7 Money Tendencies:

1. Saver or Spender

2. Nerd or Free Spirit

3. Experiences or Things

4. Quality or Quantity

5. Safety or Status

6. Abundance or Scarcity

7. Planned Giving or Spontaneous Giving

New ways to understand how your parents, your fears and your beliefs impact your money mindset.

5 lessons you’ll learn from this book: 

  • Where you land on the scale of the Seven Money Tendencies and why it matters.
  • Which of the Four Childhood Money Classrooms shaped your money mindset.
  • How the Six Core Money Fears can drive your most common money mistakes.
  • Why you handle money the way you do, and what to do about it.
  • How to take control of your money to achieve financial freedom.

3 questions this book will answer for you: 

  • How does my childhood impact the money choices I make today?
  • Why do I constantly make money mistakes?
  • How can I change my money mindset for good?

What people are saying about this book: 

  • “Rachel does such a great job of getting to the root of why we make the money decisions (and mistakes) we do. This book is a self-discovery necessity.” — Marcus Buckingham
  • “I have often said if you want to understand someone, look at their checkbook and their calendar. How we spend time and money says a lot about who we are. Rachel goes deep into unraveling that mystery.” — Dr. Henry Cloud
  • “We’re all faced with the responsibility of managing finances. Rachel Cruze dives deep into why we interact with money the way we do… so you can make real progress toward your money goals!” — Candace Cameron Bure
  • “This book will not only change your money habits, it will also improve your relationships — and your life!” — Christine Caine

Your Turn: What did you think of Know Yourself, Know Your Money? Share your opinion in the comments.

Finessin’ Finances

This book at a glance: Finessin' Finances - the refreshingly entertaining guide ot personal finance.
Title: Finessin’ Finances
Author: Stefon Walters
Paperback: 152 pages
Publisher: Just Believe Company
Date published: Feb. 7, 2019
Average customer review: 5.0 out of 5 stars

Who is this book for?
People interested in learning about basic financial topics through clear, easy-to-understand language
Anyone who finds finances boring
Readers who love to laugh while learning valuable information

5 things you’ll learn from this book:

  • How to navigate the world of credit and credit cards
  • Basic investing for beginners
  • Best practices for managing your student loans
  • How to create and stick to a budget
  • Practical ways to plan for retirement

6 questions this book will answer for you:

  • What is my credit score and why does it matter?
  • How can I improve my credit rating?
  • Are credit cards good for my finances?
  • How can I create a budget that’s designed for my lifestyle?
  • Should I start investing?
  • Why do I need to worry about my retirement when it’s so many years away?

What people are saying about this book:

“Stefon Walters approaches the topic of personal finances from a humorous, informative, and fluent manner. He gives insightful and realistic ways to dominate your finances with self-control and knowledge.”

“A fun read with great explanations and sample templates.”

“I feel like the author is talking to me and not at me.”

“I love the witty terminology used in the book; it made it fun to read.”

Your Turn:
Do you find financial talk boring? Share your thoughts with us in the comments.

Learn More:
bookauthority.org
goodreads.com
thebalance.com

Book Review: The Latte Factor: Why You Don’t Have To Be Rich To Live Rich

The Latte Factor cover - white cup on saucer full of coffee with a dollar sign drawn in the cremeIf personal finance books make your eyes glaze over, but you can never say no to a page-turning novel, this book was written for you.

In The Latte Factor, best-selling author David Bach and co-writer, John David Mann, present a personal finance book that reads like a novel. It tells the story of Zoey, a young woman in her 20s who is perpetually struggling to make ends meet. Like many of her contemporaries, Zoey is weighed down by staggering student loan and credit card debt.

Though she’s working in New York City at her dream job, she can never seem to get ahead of her expenses. When Zoey’s boss suggests she get acquainted with Henry, the barista at the coffee shop Zoey loves, she has no idea how significantly this connection will change her life.

Henry is an elderly gentleman who is working at a relatively low-level job, but has built himself a comfortable cushion of savings. He shares his three primary principles of financial freedom with Zoey, which she immediately dismisses as nonsense. Soon, though, she comes to appreciate that small but significant changes in her daily routine can make a huge difference in her finances. She learns to adapt Henry’s principles: Pay yourself first, make savings automatic and live the life you want today. Slowly, she makes the changes she needs in her life to achieve financial freedom.

Bach draws on his decades of experience counseling clients through debt and toward a life of responsible money management to build a realistic story that is both engaging and enlightening. You have to believe he’s helped many “Zoeys” along the way.

Some readers are uncomfortable with the fact that Zoey is portrayed as a caricatured female who does not know how to handle her money and that the book is essentially badly disguised “mansplaining” in a way that talks down to women. Others, though, have found The Latte Factor to be a fun book that leaves readers with lots to think about.

Do you have to be rich to live rich? Read The Latte Factor and find out today!

Your Turn:
Have you read The Latte Factor? What did you think about this book? Share your thoughts with us in the comments.

Learn More:
goodreads.com
policygenius.com
amazon.com

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