financial planning


  • financial success is simple: don't spend more than what you make, then save and invest the remainder
  • create a budget with monthly expenses and watch your spending

Step 1: Emergency Fund

  • use the fund only for loss of job - no exceptions
  • save 6 months of expense (car, cell phone, student loan, etc)
  • put the fund into a high-interest savings account like

Step 2: Retirement Planning

  • put as much of your money into retirement funds (401K or IRA)
  • money put into retirement funds are meant for the long-term; you won't be able to take out the money until 59 and half at the earliest age without paying an early withdrawal penalty fee
  • if your company offers 401K matching, then put in at least the matching
  • IRA has two types: traditional and ROTH; ROTH IRA is preferred to retain more profits
  • invest in S&P 500 in your 401K or IRA - look at IVV (ETF) when managing your own funds
  • investing in S&P 500 - spreadsheet investing $300 per month for 40 years can generate $1 million; investing $500 per month for 40 years can generate $1.6 million and $1,000 per month for 40 years can generate $3.3 million -- all of these numbers are estimates

Step 3: Savings

  • if you desire a future purchase like house, car, vacation, etc - then create a separate saving account from the emergency fund


  • Dave Ramsey (books and podcast) - understand financial planning and budgeting
  • Suze Orman (books) - understand financial planning
  • Warren Buffett (books) - understand value investing; slogan: rule #1 - don't lose money, rule #2 - don't forget rule #1
  • book: Tony Robbins "Master the Game" - understand retirement and retirement planning
  • - understand planning retirement takes time, but pays off
  • book: Millionaire Next Door - understand planning and value of money