3 Key Money Math Skills
Key Takeaways 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 […]
The 3 Ways to Save More
Key Takeaways 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.
Your “3 Part” Rainy Day Fund
Key Takeaways 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 […]
5 Money Psyche Tips
Key Takeaways Feeling like you’ve lost control of your finances can derail many aspects of life. Planning ahead for large expenditures, staggering your payment schedules and diligently maintaining a minimum balance in your bank account can give you a tremendous leg up. When it comes to your money, always try to stay calm, collected and […]
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 […]
Budget Now—Reap the Rewards Later
Key Takeaways Not having a budget is one of the leading causes of financial stress. Good budgeting comes down to having a handle on your income coming in and your expenses going out. I have three simple but powerful rules for budgeting (see below and related video above).
Structured Beauty
Key Takeaways 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).