Your Money

On December 1, 2009, in Life lessons for my Daughter, by Sean

I have been doing a lot of thinking about money and finances recently and one of the things which struck me is that we all start out life without debt.  Yet as adults most of us have significant amounts of it. This debt cripples us financially and makes a big difference in one’s quality of life.
One of the most important lessons of life is to live it without incurring debt. If  you can master this you will be ahead of 99% of people in the country. The only acceptable debt is debt that is tied to an investment of some sort, where the return on the investment will be greater than what you have to pay out to service the debt, ie. your house.
Speaking of your house when would you like to buy one? Lets say you are ready to buy one when you are 34, you may have met the man of your dreams and are ready to settle down and buy a house; where will your downpayment come from? Well if you start with a one time investment of $600 and save $50/month until you are 34 you will have over $30 000 in the bank.
Not too bad hey? A very good contribution to your new life together!

 

One Response to Your Money

  1. Jason Bax says:

    What a wonderful gift for your children and goal to commit to. You get my nod, Sean.

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