#Investing101 #InvestingForBeginners #FinancialLiteracy #GoodHabits #RetireEarly
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IA Investing 101 Series: Financial Literacy - what I call the 8 Cylinder Engine

0:00 Introduction to Investing 101 Part II: Financial Literacy
0:30 Investing 101 Series:
Skills Required
1:00 Must-haves:
The right mindset
Financial literacy
Analytical skills
Ability to generate perpetual income
Financial discipline

1:15 The Eight Cylinder Engine - Start Your Engines
1:20 The Basics
#1 Motivation
#2 Budgeting
#3 Habits
#4 Debt Mgt
#5 Savings
The Money Part
#6 Investments
#7 Retirement Plan
#8 Risk Management
2:00 What the Rich Do
4:20 Build a budget
Live below your means
Pay off debt
Automate your finances - Mint, Quicken, Personal Capital
Build emergency fund
Invest
Review your credit score and fix it
Time is money! Don’t waste your time
5:00 Habits
8:30 Habits eg Coffee - Starbucks vs Home
Coffee Calculator
10 Years Savings $28,504
25 Years Savings $98,873

10:00 #4 Debt Management Profile all your debt
Pay off high interest debt first
Refinance when you can
Beware of credit cards
Make a plan and integrate it into your budget

11:00 Wake-Up Call
Takeaways:
8% of millennials understand basic financial concepts
Millennials have lowest credit scores
69% of students graduated with avg $30k loan debts in 2018 and 38% have credit card debt

13:00 #5 Savings
Establish target savings from your budget
Cost reduction is also saving (eg cell bill)
An emergency fund is a must
Save automatically
Start Small
Lock it away
Save for retirement as early as possible
Compounding - time in the market

14:00 #6 Investments
Invest in Yourself First aka education
Time in the market beats timing the market
Pick the right horses and spaces
Never Invest more than half of your Liquid Capital
Understand the relationship between α Alpha and β Beta
Understanding Risk is a core to Investing

14:30 #7 Retirement Plan Understand time horizon
Determine needs
Calculate tax implications
Draw a line in the sand
Make it happen

15:00 #8 Risk Management Forecast the future
Understand macro environment
Have assets that generate perpetual income
Invest in assets that outpace inflation
Think about debilitation eg health crisis so have risk transfer/risk mitigation in place.

16:00 CliffsNotes from Every Book on Financial Literacy 3 Basic Principles:
Spend less than you earn
Make the money you have work for you
Be prepared for the unexpected

17:30 Your Financial Fitness Test
Google this: “DCU Financial Wellness Calculator”

18:00 Keys to Improve Your Financial Literacy
Subscribe to InvestAnswers (me)
Keeping a budget
Listen to financial podcasts
Read personal finance books
Subscribe to thought leaders on social media
Make a plan

Want more?
(you know what to do!)