5 Reasons Why Math Matters

Key Takeaways

  • Even if you weren’t a math major, you need basic computational skills and an understanding of compound interest, inflation, amortization and taxes to be a financially responsible adult.
  • As discussed in a previous post, the Rule of 72 is a powerful shorthand way of calculating how many years it will take an investment (or debt) to double.
  • Don’t forget to factor in the drag of taxes and inflation on every important money decision you make.

The Millennial Shift

Key Takeaways

  • With each succeeding generation, the educational and career expectations increase. This delays the start of marriage, family and home ownership.
  • Nearly half of 20- to 29-year-olds have debt today, compared to just 17 percent of 20-somethings who had debt in the 1980s.
  • Long-term coddling by parents, colleges and society isn’t helping young adults move faster to financial independence.
  • Achieving financial independence isn’t only about money and careers; it’s a shift in one’s mind-set.