Lesson 7: Conclusion

We hope this course has helped to demystify some key financial concepts. Just remember: the best thing you can do for your finances is to be born rich. But if that ship has sailed, a little knowledge and caution will go a long way.

Key takeaways

1. Budgeting is the building block of managing your money because you’ll never get rich if you spend more than you earn.
2. Target achievable savings goals and then meet them.
3. Taking on debt is OK, but high-rate debt can be dicey.
4. Always make all your minimum payments on debt, but after that pay down highest-rate debt first.
5. Hold money you might need soon in safe places, such as savings accounts. Money you won’t need for several years can be invested for growth.
6. Higher-return investments always come with higher risk.
7. You need insurance to protect you against unlikely but awful events.
8. Whenever you have a major life change, you probably need new insurance.
9. Keeping your finances organized can help you pay less in taxes.