- Save first, spend second.
- You can’t start a good saving plan (or habit) until you’ve established a budget.
- Increase your income, reduce your expenses and control your emotions—wait 48 hours before pulling the trigger on a major purchase and don’t fall into the FOMO trap.
- 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.
- Before you embark on the dream of owning your own home, make sure there are no errors in your credit score or financial history.
- If you can’t come up with a 20 percent down payment, you can often still buy a home—but you’ll typically need mortgage insurance.
- Many new homebuyers underestimate how much they’ll pay in ongoing maintenance—budget $1 per square foot per year in addition to PITI.
- 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.