💡Build good financial habits by focusing on the 80% of behavioral decisions that impact your net worth.
🌱Start saving and investing early in your 20s to take advantage of compounding interest.
🏠Avoid inflating your net worth by valuing your primary residence at cost.
🔍Use the Financial Order of Operations as a guide to make the right financial decisions in your 20s.
⏰Understand the value of time and how it can work for you in building your net worth.
How do I build good financial habits in my 20s?
—Focus on the 80% of behavioral decisions that impact your net worth. Self-assess your habits and use resources like the Financial Order of Operations to guide you.
Should I start saving and investing in my 20s?
—Absolutely! Starting early allows you to take advantage of compounding interest and build wealth over time.
How should I value my primary residence for net worth calculations?
—To avoid inflation, value your primary residence at cost, which is the value when you bought it.
What is the Financial Order of Operations?
—The Financial Order of Operations is a step-by-step guide for making the right financial decisions. You can find resources and tools online to help you follow the order.
Why is time valuable in building net worth?
—Time is valuable because it allows your investments to grow through compounding interest. Starting early in your 20s gives you a longer time horizon for growth.
09:06In your 20s, focus on building good financial habits that impact your net worth.
09:24Start saving and investing early to take advantage of the power of compounding interest.
09:35Value your primary residence at cost to avoid inflating your net worth.
09:58Use the Financial Order of Operations as a guide for making the right financial decisions.
10:32Understand the value of time and how starting early can benefit your net worth.
