Learn more about moneyandinvestments with this collection
Identifying and eliminating unnecessary expenses
How to negotiate better deals
Understanding the importance of saving
Know where you stand
Everyone should have a back-of-the-envelope idea about where their net worth (assets – liabilities) stands.
Before knowing where you want to go you have to know where you are.
843
2.78K reads
MORE IDEAS ON THIS
Saving is more important than investing
Pay yourself first is such simple advice, but so few people do this.
The best investment decision you can make is setting a high savings rate because it gives you a huge margin of safety in life.
1.04K
4.61K reads
Salary is not the same as savings
Having a high salary does not automatically make you rich; having a low salary does not automatically make you poor.
Your net worth is more important than how much money you make. It’s amazing how many people don’t realize this simple truth. All that matters is how much you save out of you...
1.09K
5.38K reads
Build up that savings account
You have to have liquid assets to take care of things when life inevitably gets in the way.
Most of the time these “emergencies” are things you should plan on happening periodically.
859
3.18K reads
Live below your means...
....not within your means.
The only way to get ahead financially is to stay behind your own earnings power.
1.01K
4.48K reads
Cover your insurable needs
This is a huge personal finance margin of safety item. Just remember that insurance is about protecting wealth, not building it.
825
3.42K reads
Think about financial independence
...instead of thinking about retirement. The goal shouldn’t be about making it to a certain age so you can ride off into the sunset, but rather getting to the point where you don’t have to worry about money anymore.
949
3.34K reads
Taxes matter
Everyone should try to do their own taxes at least once just to understand how it all works.
It can be maddeningly complicated, but it can help you save money over time if you know where to look. Take advantage of as many tax breaks as you can and always understand your personal tax...
840
2.38K reads
Make more money
Saving and/or cutting back is a great way to get ahead, but it’s an incomplete strategy if you’re not trying to earn more by enhancing your career.
Too many people are stuck in the mindset that there’s nothing they can do to get a better job, take on more responsibilities or earn a ...
932
3.13K reads
Credit cards
Carrying credit card debt is a great way to negatively compound your net worth. But credit itself is important.
Likely the biggest expense over your lifetime will be interest costs on your mortgage, car loans, student loans, etc. Having a solid credit score can save you tens of tho...
864
3.31K reads
Understand your spending habits
If you want to understand your priorities gain control of your finances, look at where you spend money each month.
The goal is to spend money on things that are important to you but cut back everywhere else. And if you pay yourself first you don’t have to worry about budgeting, you just sp...
949
3.05K reads
CURATED FROM
IDEAS CURATED BY
Related collections
Other curated ideas on this topic:
Net Worth = Assets - Liabilities
Your net worth gives an overview of your financial situation at this point. It is the difference between what you own and what you owe.
Your net worth is positive if your assets exceed your liabilities.
A negative net worth is when your liabilities are greater than your assets....
The most important numbers to track
The two most important numbers to track your early retirement strategy are:
- Your savings rate: This is the percentage of your income that you're saving either before or after taxes in all of your accounts
- Your net-worth: This is the most imp...
Your net worth
Your net worth is the total value of all your assets, minus all of your liabilities.
It is important to know your net worth so you can calculate how much progress you're making and how close you are to financial independence. Banks and investment advisors ...
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