- If nothing else, young adults should understand their balance sheet, cash flow and taxes for a happy financial life.
- Remember to always save first, spend second.
- As you get older, your assets grow and so do your expenses. Never take your eye off the big picture (see the first two takeaways).
- Research shows that 95 percent of our decisions are made with the subconscious rather than the rational part of the brain.
- With respect to money, you can’t change your behavior until you understand your emotional side.
- Emotion, Structure and Behavior are the three legs of the money decision stool. Get familiar with each leg.
- When it comes to money decisions, most of us have an imaginary angel on one shoulder and a devil on the other competing for our attention.
- Money issues are tough for today’s young adults. It’s not your parents’ or grandparents’ financial reality, but there’s hope if you’re smart.
- Delaying marriage, home ownership and parenthood has benefits in the short run but can create retirement challenges down the road.
- Young adults know they need to be much more proactive about saving for retirement than previous generations were.
- Don’t be overly concentrated in cash during your early years—it’s the best time to take smart risks.
- Position yourself as a “corporation of one.” It can be far more valuable and satisfying than simply getting a job.
- Credit cards and debt are not necessarily bad. You want to establish good credit now and show you can manage debt responsibly.
- Owning a home is not the American dream if it doesn’t give you the freedom to move around easily. Don’t overlook renting.