I’ve learned many money lessons from my nearly 20 years advising families. Here’s 18 lessons that you can implement:
Live within your means: Spend less than you earn.
Build an emergency fund: Save 3-6 months’ worth of expenses to handle life’s surprises.
Debt is bad: Use it sparingly. The strongest households owe no one.
Pay yourself first: Prioritize saving for your future before helping others or spending on extras.
Income is your greatest asset: Choose a practical, sustainable career that fits your abilities; passions can remain hobbies.
Start investing early: Compound interest rewards those who begin as soon as possible.
Automate savings: Automatic transfers ensure consistent progress without relying on willpower.
Time horizon dictates strategy: Long-term goals can handle more risk than short-term ones.
Consistency over high returns: Slow and steady wins the investment race.
Boring over exciting: If your portfolio feels thrilling, it’s likely too risky. Stick with diversified ETFs or mutual funds.
Avoid big mistakes: Chasing “exclusive deals” or the next big win will lead to big mistakes.
Money is a tool, not a scorecard: Use it to support your goals and values, not to measure your worth.
Plan your drawdown: Retirement success depends on how you spend your assets, not just how you save them.
Consider downsizing: A smaller home means lower costs and often lower stress.
Establish a framework for giving: Build philanthropy into your life to create lasting impact.
Spend money to enjoy life: After covering essentials and saving responsibly, use your resources to enhance your life.
Prioritize your goals: You can do anything, but you can’t do everything. Determine what’s most important to your family.
Hire a financial advisor.