Word Prompt – LESSONS – Jonathan Shenkman

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.