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.

Financial Freedom –Looking Long-Term For Short-Term Flexibility

Key Takeaways

  • To have financial freedom, you must look long-term to achieve short-term financial flexibility and financial freedom.
  • The two key areas to look at for short-term flexibility are expenses and savings.
  • The two largest areas of expenses are in housing and transportation.
  • Save 10% of your income and contribute at least the minimum to get the match on a 401K to ensure you have enough savings to cover emergencies or career moves.

In Search of Wise Counsel

Key Takeaways

  • We tend to ask our close family or friends for financial advice when we should really turn to a professional to help us.
  • When looking for a financial advisor, there are a few things you should keep in mind, but LRC – Leadership, Relationship, and Creativity, is key.
  • Big-name financial firms are not always the best places to turn to for financial advice as many times, they have a set of services or products they are expected to push, whether you need them or not.

Maintaining Your Vehicle

Key Takeaways

  • Most cars come with a basic warranty package, but an extended warranty option costs extra and isn’t necessarily worth the money.
  • The average vehicle’s lifetime is eight years or 150,000 miles and on average, costs $914 to maintain per year.
  • If you pay your car off after five years, and you continue to save the same monthly car payment over the last three years, you can use that money to help pay for your next vehicle, pay down debt, or save for other goals you have.