- 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.
- 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.
- 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.
- There are six key steps to building lifelong wealth.
- Establish short-, medium- and long-term goals, and never stop making adjustments to them.
- Take care of urgent matters first, important matters second and nice-to-have issues last.