WWII 006: Your Starting Financial Position, Benjamin Franklin, 3 Year Old Millionaire, End of Year Planning
This episode is all about what financial position you should be in before you start investing. Here are some highlights:
· Stable income
· Living beneath your means
· Generating investible cash
· No credit card debt
· No loan shark debt
· No major upcoming expenses such as college tuition, medical costs etc.
· Have health insurance, car insurance, home insurance etc.
· At least 12 months in emergency cash sitting in a bank account.
· 401(k) fully funded at least to the match, and preferably up to the max
· Figured out how to save money by buying staples in bulk (i.e. Tobias book)
· Prepared for a long-term commitment to what you buy
Beware of little expenses. A small leak will sink a great ship."
Doublejay1999 asks:If you have 200k and a 3 year old son, do you spend it on a premium education and getting him to Oxbridge (or Harvard) or do you stick it in the market, for 20 years and tell him he's a millionaire when he's 21 ?
stoopidjonny asks: What are some things you should do with your investments at the end of the year/start of the new year, if any?
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