The previous sections have been successful if they have helped you put personal financial management into perspective. These sections have taught you to live on a budget, keep track of where your resources are going, manage your cash and cash equivalents wisely, protect yourself from loss by owning insurance, and make big-ticket purchases wisely. Now we begin a discussion on long-term investing.

Please be aware that this class approaches the subject of investments differently than other textbooks approach this subject. Most books take an asset-based approach: in other words, they talk about stocks, bonds, mutual funds, and other assets. These assets will change over time as new assets are developed and sold. I take a principles-based approach to discussing investments because the principles will not change over time.

When you have completed this section, you should be able to do the following:

Properly prepare yourself to invest and understand what you will be investing in before you begin your investment program; these are important keys to success.