Ch. 1:  Welcome

Chapter 1:  Welcome

1.0  Please Read

  No one reads the introductory chapter.  If I promise to keep it extremely short, will you promise to read it?  Okay, deal.

1.1 The Benefits of this Book

            Several years ago, I came to terms with (one of) my inadequacies.  Despite earning a doctoral degree in economics, I was financially unskilled.  Sure, I knew how to save, buy stocks, and borrow money to buy a house, but I didn't know enough to build a salient financial plan.  And I made lots of painful mistakes, which eventually led to valuable lessons.  As my financial literacy grew from “complete moron” to “simply stupid”, my mistakes and the impact of these mistakes became apparent. 

            I vowed to learn everything I could about personal finance.  Diving into books, blogs, and (primarily) podcasts, a whole new world opened to me.   To my complete amazement, this whole new world was not too complicated and after just a few weeks, I transformed into a person that was routinely providing financial advice to friends, family, and colleagues.  This made me angry… at myself, at my former teachers, at the whole damn system, man.  If I can learn almost all I need to know about personal finance in just a few weeks, how did I get through high school, college, and a freaking Ph.D. program without anyone trying to teach me about a Roth IRA?! 

            Financially, these few weeks were the most valuable of my life.  In about 100 hours, I developed financial skills that were worth more than a million dollars—it’s like I got paid $10,000+/hour just to learn!  Now, it’s your turn.  If you read this book (and/or watch the video lectures), you will dramatically increase your future wealth.  Trust me, join me.  Let’s get rich.

1.2 The Structure of this Book

            But before we begin, let me explain the structure and design of this book.  Textbooks are boring, so I’ve done what I can to make this book conversational in nature with jokes here and there.  I’ve also included a lot of personal stories and financial information about myself that most would be unwilling to share.  I strongly believe that people should talk openly about money, and I hope that my examples (which include both mistakes and triumphs) will help others open-up about their own finances. 

            The hardest thing about writing this book was determining a structure.  It’s impossible to learn about tax shelters (like 401(k) plans) without first understanding the US tax system.  But you can’t fully understand the US tax system until you know the ins and outs of tax shelters.  That’s just one example of the relentless chicken-or-egg quandaries that abound in personal finance.  Indeed, the most difficult aspect of developing financial literacy is the holistic nature of learning.  Reading just the first five chapters of this book, for example, won’t do you much good.  You need to read the whole damn thing.  If you do, your life will be better.  So, commit right now to reading this entire book.  The videos are almost as good, if that's more your thing.

            In addition to the textbook and associate lecture videos, I will also regularly add “posts” (see the of the page).  These short articles will cover specific topics that are not essential information for all readers.  This book was completed in summer 2024, so there are few posts at present, but more will be added in due time.

1.3 Updates

            This book is continuously updated.  It must be, since rules and regulations regarding taxes and other finance topics change quite frequently.  Editing is also ongoing.  So, if you return to this chapter in a few months, you might find things are quite different. 

  I’d love your help.  If you have corrections, suggestions, or other comments, please send an email to FreeFinanceBook@gmail.com.  I'm sure there are a few mistakes that need to be caught.  If you are a student in my class, bonus points are awarded for catching any content errors.

1.4 How much money do I make from this website?

            None.  In fact, I lose a bit of money paying the hosting fees.  I have no interest in making money directly from this project.  I created this website and book out of frustration at the lack of good resources online.  Everyone is trying to make money, which often makes it difficult to determine what is advice and what is an advertisement.  By keeping my site unmonetized, you can rest assured that I have no incentive to lie or mislead you. 

  But I’m no martyr.  As a professor, I’m paid to impart knowledge and serve my students.  I have a great job and don’t need to make money from FreeFinanceBook.com to survive.  Creating content like this could lead to improved career opportunities for me.  But career advancement is not my goal.  I truly just want to make your life better.

1.5 What next?

Don't stop.  Don't check your phone.  Begin Chapter 2.