1. Personal Finance
Benjamin Graham

2. Lecture 20: Foreign Aid Benjamin Graham
Reading Quiz
What do Guinea Worm and Cholera have in common?
A. Both have gotten worse due to a global rise in obesity
B. People are more likely to get them if they smoke
C. Both diseases spread due to a lack of clean drinking water and poor sanitation
D. Both diseases are spread by mosquitos
E. A, B, and D
Lecture 20: Foreign Aid Benjamin Graham

3. Lecture 20: Foreign Aid Benjamin Graham
Reading Quiz
Which president launched the PEPFAR program to address the AIDS crisis in Africa?
A. George H.W. Bush (i.e. Bush senior)
B. Bill Clinton
C. George W. Bush
D. Barack Obama
E. Donald Trump
Lecture 20: Foreign Aid Benjamin Graham

4. Lecture 20: Foreign Aid Benjamin Graham
Reading Quiz
The key goals in addressing the AIDS crisis are to:
A. Get 90% of people with the disease diagnosed, and get 90% of diagnosed individuals on retrovirals
B. To decrease transmission rates by 90% and treat all new cases within 90 days.
C. To get 90% of people using condoms and 90% of people remaining faithful to their spouses
D. To eradicate AIDS in the 90 hardest—hit countries by 2090.
Lecture 20: Foreign Aid Benjamin Graham

5. Personal finance is emotionally loaded
Spending decisions are often made jointly
Without discussing the spending part
Learn to talk about money
With your friends
With your romantic partners
With your siblings and parents
Lecture 20: Foreign Aid Benjamin Graham

6. Lecture 20: Foreign Aid Benjamin Graham
Managing Spending
Humans are creatures of habit and ritual
Replace one habit with another (cheaper) habit/ritual
Lecture 20: Foreign Aid Benjamin Graham

7. Invest in Your Own Career (Strategically)
Use your access to debt strategically
(Great) unpaid internships
Forgoing side jobs at critical career junctures
Childcare
Lecture 20: Foreign Aid Benjamin Graham

8. Negotiate Your Starting Salary
Men are more likely to negotiate their starting salary than women
Do your homework
What is a reasonable salary for this position?
Ask but don’t demand
Ask for more than what you want
Even if the answer is no, it wasn’t a mistake to negotiate
Lecture 20: Foreign Aid Benjamin Graham

9. Lecture 20: Foreign Aid Benjamin Graham
When to buy insurance
To reduce volatility
To cover catastrophic losses
Life insurance BEFORE you have kids
On average, insurers make money
So (usually) avoid insurance on small items like phones
Lecture 20: Foreign Aid Benjamin Graham

10. Two types of debt to avoid
Payday loans
Monumentally high interest rates (e.g. 400%)
Credit card debt:
Extremely high interest rates (15-30%)
Lecture 20: Foreign Aid Benjamin Graham

11. Debt to shop carefully for
Car loans
0% financing almost always means paying a higher price for the car
Banks often offer better rates than the dealership
Lecture 20: Foreign Aid Benjamin Graham

12. Lecture 20: Foreign Aid Benjamin Graham
Student Debt
Student Debt
Subsidized = often 2-3% interest rate
Pay this back slowly
Unsubsidized 6-9% interest rate
(Probably) pay this back before any non-matched retirement savings
Bankruptcy does not get you out of student debt
Lecture 20: Foreign Aid Benjamin Graham

13. Lecture 20: Foreign Aid Benjamin Graham
Investments
1. Max out your 401k or employer-sponsored retirement contributions
2. Buy cheap, diversified mutual funds (index funds)
Downside losses hurt more than upside gains help
FOMO is a real thing
3. Never buy or sell an individual security
6. Maximize tax-advantaged savings vehicles like IRAs and 529s
8. Make your financial advisor commit to a fiduciary standard
Lecture 20: Foreign Aid Benjamin Graham

14. Is a graduate degree a good investment?
Yes, if:
1. It is free (i.e. good Ph.D. programs)
2. You know the job you can get with the degree that you can’t get without it, and you are confident you want that job
3. You need a student visa to stay in the US
Lecture 20: Foreign Aid Benjamin Graham

15. Lecture 20: Foreign Aid Benjamin Graham
When to buy a first home
Treat your home mortgage as rent replacement, not a speculative investment
Housing isn’t that volatile, but home buyers are highly leveraged
Interest rates are around 4.25%
But, you need a down payment…
Lecture 20: Foreign Aid Benjamin Graham

16. The Complete Finance Notecard
1. Max out your 401k or employer-sponsored retirement contributions
2. Buy inexpensive, well-diversified mutual funds
3. Never buy or sell an individual security
4. Save 20% of your money
5. Pay your credit card balance in full every month
6. Maximize tax-advantaged savings vehicles like IRAs and 529s
7. Pay attention to fees & avoid actively managed funds
8. Make your financial advisor commit to a fiduciary standard
9. Promote social insurance programs to help people when things go wrong
Lecture 20: Foreign Aid Benjamin Graham