Personal Finance for Complete Beginners: Series Introduction

Personal finance is MUCH too large a topic to be covered in one article, so I'm writing a personal finance series to help explain some of the basics for the true, absolute, complete beginner. There will be articles geared toward beginners on stocks, bonds, mutual funds, IRAs, 401ks, credit card interest, asset allocation, home loans and more. There is no specific order in which the articles should be read, but since many aspects of personal finance are interrelated, I will try to include links in each article to other pertinent articles. I will also update this article with links to the new ones as they're published, so please check back frequently! I will try to address common beginner questions and misconceptions that I read on personal finance forums, and if readers have questions I encourage you to contact me with them - I will do my best to address them in subsequent articles, or try to find the answers for you. Below you'll find links to all of the series articles, as well as links to other finance articles I've written and an introduction to let you know where I'm coming from.

Series Articles:
What are Stocks and Bonds, and How do They Work?
What is a Market Index? The Dow Demystified
What are Mutual Funds? A Beginner's Guide
What is an IRA? A Beginner's Guide
IRAs vs. Mutual Funds: What's the Difference?
What is an Investment Account? A Beginner's Guide
Where Should I Open an IRA?
What are Asset Classes?

Other Finance Articles:
Financial Planning for Home Improvements
Using a 401k Loan for a Home Downpayment
Tips for Asset Allocation
Mutual Fund Investments for Seniors
Estate Planning for the Self-Employed
Tips for Living Debt-Free
How to Manage Your Own Stock Portfolio
Budgeting Tips for Baby Boomers
Freelancing When The Economy Has Center Stage

(These articles were not written with the complete beginner in mind, so if you have questions, don't hesitate to ask them in the comments section or refer back to the beginner's series.)

With credit card debt soaring, home foreclosures rising and gas prices through the roof, it's no wonder that more and more Americans are having a hard time making ends meet. However, I believe a big part of the reason that so many people are struggling with money is because they simply don't know the basics of personal finance. In fact, they don't know enough about personal finance to even know what questions to ask with regard to things like investing in the stock market, saving for retirement or making a home down payment. Most of us don't learn anything about personal finance in school, and if our parents don't have any knowledge to pass along, we're left to figure it out on our own. Employers sometimes offer retirement accounts and other vehicles to help their employees save and plan, but people frequently don't have the basic knowledge necessary to understand how to use these perks to their best advantage.

Lucky for me, I've always been naturally frugal, but I had to learn the ins and outs of investing, retirement accounts, asset allocation and other financial matters on my own. I am a self-employed opera singer, so it has been especially crucial for me to learn to take care of my personal financial health, since I don't have an employer-sponsored retirement plan to back me up. Unfortunately, they don't teach this stuff in music school! I was naturally drawn to the subject of personal finance, so even as a beginner learning came easily for me. I gained personal finance knowledge through a combination of reading, asking questions and good old-fashioned trial and error. There are plenty of books and websites out there for beginners with all sorts of information on the topic of personal finance, but the sheer quantity can be overwhelming. Also, I've found that many "beginner" materials don't do a great job with the basics - they assume a certain amount of prior personal finance experience on the part of the reader and use terminology that can confuse or intimidate a complete beginner. On personal finance forums, beginners are often scared to ask "dumb" questions, or they simply don't know what to ask.

As I said above, this series is written with the true, absolute, complete beginner in mind. There are no dumb questions, so ask away. I look forward to hearing from you and I hope you enjoy the series!