Things every young person needs to know about money - Chapter 8 – Establish a system

“A Penny Saved is a Penny Earned” Benjamin Franklin “While money can't buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx This series has focused on the need for young people to think strategically about money. I discussed the importance of saving money, managing money and how compounding can work for or against you. Now you need a system! System’s beat “goals” every time. I might have a “goal” to retire rich, but unless I put in place a sys

Things every young person needs to know about money - Chapter 7 – When do I borrow?

“My wealth has come from a combination of living in America, some lucky genes, and compound interest.” Warren Buffett “I think people don't understand compound interest because typically no one ever explains it to them and the level of financial literacy in the US is very low.” James Surowiecki In an earlier post I mentioned Occam’s razor as a great tool to put in place “rules of the road” for decision making. Wikipedia includes this description of Occam’s: “simpler theorie

Things every young person needs to know about money - Chapter 5 – Compounding can be your friend!

“Enjoy the magic of compounding returns. Even modest investments made in one's early 20s are likely to grow to staggering amounts over the course of an investment lifetime.” John C. Bogle “The time to save for the future is now. Thanks to compounding interest, the earlier you start putting money away for the future, the more you will save.” Alexa Von Tobel The definition of “compound”: calculate (interest) on previously accumulated interest. The impact of compounding will be

What young people need to know about money - Chapter 2 – Pay yourself first!

"Get rich slow or get poor fast.” Anonymous "Stop buying things you don't need, to impress people you don't even like." Suze Orman My first job was bagging groceries at Piggly Wiggly Southern, a grocery chain that was prominent in GA in the early 1980’s. I had had other “jobs” before, but this was my first corporate job and my first experience with tax withholding. I can still recall looking at my first pay stub (I made $3.00 an hour) and wondering why the government was