My Thoughts On Personal Finances

Your savings rate is more important than your rate of return.

 

Investment portfolios should be designed to help achieve personal goals, not to achieve the greatest rate of return.

 

Money is a tool that should be used to enhance one’s life, not create more stress and anxiety.

 

Human capital is likely a young professional’s greatest asset.

 

Investing is more of a behavioral game than a numbers game.

 

Paying off the mortgage early may not be the greatest wealth generator, but it is a peace of mind enhancer.

 

The more frequently account balances are viewed, the more opportunities for behavioral mistakes.

 

Saving for retirement should be viewed as the purchase of future income.

 

A few minutes invested each month in documenting and tracking spending pays dividends in the form of household happiness.

 

Financial independence is the point at which invested assets generate enough income to cover annual living expenses.

 

The less money spent on fixed expenses, the more money available for fun expenses.

 

Automated saving and investing is the easiest way to avoid trying to time the market.

 

Purchasing a home is more of a well-being investment than it is a financial investment.

 

Finding free events and activities in the local community is an easy way to maximize the fun:cost ratio.

 

Personal finance is not generally taught in high school or college. This is not an excuse to never learn about the topic outside of formal education programs.

 

Retirement doesn’t have to mean never working or earning another dollar again.

 

Compound interest is, in fact, the 8th wonder of the world.

 

Charitable giving should be done for the giving itself, not the tax benefits. The tax benefits are nice, however.

 

Thanks to advancements in technology, it has never been easier or cheaper to be an investor.

 

Being an employee and relying on one income source is riskier than being self-employed and creating multiple sources of income.