Saving to Live

Key Takeaways

  • Millennials are saving at the highest rate of any generation currently alive, but they aren’t saving for a typical retirement.
  • Two thirds of Americans don’t have enough money in savings to be able to take care of an emergency.
  • Millennials care about financial freedom and life experiences, and are saving money to do things as they go through life knowing they will work in to their later years.

Money Sloths Win in the Long Run

Key Takeaways

  • Our brains have a system one that thinks very fast, automatically, and is always on and this is where we spend most of our time.
  • System two of the brain is very slow thinking and it’s how we are able to do integrative thinking that helps us make decisions.
  • While both systems are necessary, system two is where you want to operate when it comes to your money and making good decisions about your financial future.

3 Key Money Math Skills

Key Takeaways

  • Compound interest, computational skills and amortization are the three key money concepts we all need to master.
  • As Einstein observed, compound interest is a saver/investor’s greatest friend and a debtor’s greatest enemy.
  • Creating a budget and sticking to it are essential to building wealth and a secure financial future. Budgeting just takes discipline and the basic math skills that you learned in middle school.
  • When paying off a long-term loan, pay attention to the principal versus the interest, not just your monthly payment amount.