The Start in Your Personal Finance Journey is Financial Literacy

We all have to start somewhere. I have always had a general sense of keeping some money aside for a rainy day. This was a something my grandmother instilled in me at a very basic level with the advise: Always put 10-15% of every paycheck into savings and live off the rest. It’s so simple, that’s all I need to do and I will be set for life I thought to myself.

I continued to do this through middle school when the damn education system threw a monkey wrench into my simple plans and introduced the power of compound interest using the example of a bank’s interest rate. I thought to myself wow, all I need to do is put my 10-15% into the bank and the interest rate will have me set for life.

I maintained this mindset until my first salaried job with a 401K and my toolbox and mindset expanded, but I still did not put the time and effort into maximizing my money management. I continued on the same general mindset that I will max out my 401K and put 10-15% of my paycheck into savings.

This is an amazing start for anyone, but it was not until the last few years that I put a laser-focus on my money management that I realized a few things I wish I knew when I first started making money and would have paid dividends now.

Budget: What you are spending is just as important as what you are saving (Build a Budget)

No one loves the idea of a budget, nut we truly do get out of what we put into it. We login every week to update and adjust ritually. Most people we know who start and quit on their budgets quit the same way people quit anything, they do not make it habit.

Save: Bank Savings Accounts are a waste

We encourage the use of High Yield Savings Accounts. Our bank savings rate was around .05% whereas our High-Yield Savings rate has been as high as 2%. This is a substantial amount when you take into account that we store the bulk of our un-invested funds in this account.

Invest: Money should work for you - Investing is more important than saving

Money in the bank is nice, money in a market to grow builds wealth. We are not in the hoard money game, we are in the build wealth game. We ensure that every dollar we earn has a place or there is a plan for those dollars.

I pat myself on the back for actually listening to my grandmother and setting money aside from the start, but in hindsight, wish I had done so much more. I would like to share what we have learned in the last few years of obsessive research to help get you on the right track. This short list is just a bare minimum set of first steps if to consider if you are just getting started.

If I am not sharing anything new to you, then you are in good shape. If there are any money tips you come across via my site that enhance your life, I will call it a win!