My Entire Financial System in One Diagram
This post is part of a larger attempt to share my personal “systems” that help me organize my life. I’m no expert, but by sharing my system, I hope to get feedback and inspire others to share as well.
Why should I care about this anyway?
So you’re thinking, I’m young, free, wild and I don’t need to be caring about myself 5, 10, or 50 years in the future — I’ll probably have enough income by then anyways! Screw this, I want money now!
I won’t spend this article addressing why you should be saving as there are plenty of other articles that do, but overall, you’re literally losing money by not investing it now — and investing is a sure-fire way to make sure you and your future family are financially stable.
Well, shit. What am I supposed to do though, there are so many options? How can I even pick?
Minimal action is WAY better than no action. Start investing now, don’t fall victim to choice paradox. Do SOMETHING.
I know nothing and don’t invest. What should I do?
Assuming you’re relatively young, here are the top priority things:
- Pay off your debt.
- Have a savings “emergency fund.”
- If you have a company match, invest money in a 401(K).
- Invest as much as you can in a Roth IRA every year. ($5,500 max / year)
