The Little Book of Main Street Money: 21 Simple Truths that Help Real People Make Real Money

Introduction

Let the Rebuilding Begin

It may be a shotgun wedding. But trust me, you and Wall Street could learn to love each other.

In 2008 and 2009, we have been hit with what is arguably the worst financial debacle since the Great Depression of the 1930s—a devastating mix of plunging share prices, crippling consumer debts, slumping home prices, and rising unemployment. And things weren't exactly hunky-dory to begin with. Consider the financial backdrop. In recent decades, traditional company pensions have been disappearing. Retirements have grown longer and hence more expensive. Financial choices have become more befuddling. Job security has faded. College costs have soared.

What to do? We don't have much choice: We need to seize control of our financial lives, embrace the markets, and be smarter about money than ever before. For most of us, this is a daunting proposition. Wall Street is tough to love. Markets skyrocket one moment, plunge the next. The lingo is baffling. The complexity can be mind-boggling. And the stakes are huge. Feeling nervous? Fret not. If we can keep some simple truths in mind, we could make this marriage work.

In fact, a firm grip on financial basics has rarely been more important. This is a moment of extraordinary doubt—about the stock market, about the housing market, about the economy, about our future prosperity. But we have recovered from worse and we will recover from this. To rebuild our finances, we need to cast aside yesterday's fanciful thinking ...