- You can’t get away from taxes, but people who are well-informed pay less.
- The majority of Americans pay not one but three taxes on their salary—federal, state and payroll.
- There are a myriad of deductions, exemptions and strategies you can use to lessen your tax bite and accumulate wealth from Day One of your working years.
- When investing, always look for tax-deductible, tax-deferred and tax-free options.
- 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.
- Make sure you always have three to six months’ worth of expenses saved in a rainy day fund that you can easily tap.
- There are three aspects of a rainy day fund: objective, subjective and emotional.
- A rainy day fund will enable you to weather the financial and emotional impact of a sudden job loss, medical emergency or unexpected major repair.
- Pay your entire balance off (on time) every month.
- Always stay under your 30 percent utilization rate to maintain good credit.
- Research your awards programs carefully.