Your Money Milestones: A Guide to Making the 9 Most Important Financial Decisions of Your Life
Financial Times Prentice Hall
Milevsky, Moshe, A.
7 Jan 2010
This book illustrates how FOUR principles inspired by basic arithmetic can be applied to manage the most important financial decisions (money milestones) people face over their entire financial lifecycle.
They are Identify the true value all of your financial resources (ADDITION). Budget for the hidden liabilities in your future (SUBTRACTION). Spend your total resources evenly over time (DIVISION). Prepare for many alternative and unexpected universes (MULTIPLICATION).
This book offers a complete framework for thinking about money that’s every bit as provocative as Freakonomics. Drawing on the newest research into psychology and personal finance, Milevsky helps you identify the true value all of your resources; budget for hidden liabilities in your future; plan to spend your total resources smoothly over time; and prepare for unexpected events that could upend even the most careful planning. You’ll discover why: children are short-term investment liabilities but may be long-term pension assets; winning the lottery may increase your chances of going bankrupt; and giving up control of your retirement nest egg might actually make you happier. The insights are fascinating and useful throughout your life whether you’re deciding what to study; contemplating your first home purchase; deciding whether to keep contributing to your 401(k); or considering when and whether to retire.