Personal Finance Fundamentals

1. Emergency Fund First

• Save 3-6 months of living expenses in a high-yield savings account
• This is your financial foundation - prioritize before investing

2. Eliminate High-Interest Debt

• Pay off credit cards and loans with interest rates >7%
• Use debt avalanche method (highest interest first) or snowball method (smallest balance first)

3. Maximize Employer 401(k) Match

• Contribute enough to get full employer match (free money)
• This typically means 3-6% of your salary

4. Build Long-Term Wealth

• Max out Roth IRA ($6,500/year for 2023, $7,000 if 50+)
• Increase 401(k) contributions toward $22,500 annual limit
• Invest in low-cost index funds (total stock market, S&P 500)

5. Essential Insurance

• Health insurance (employer or marketplace)
• Term life insurance (10x annual income if you have dependents)
• Disability insurance (protect your income)
• Adequate auto/renters/homeowners insurance

6. Tax Optimization

• Use tax-advantaged accounts (401k, IRA, HSA)
• Consider tax-loss harvesting in taxable accounts
• Understand your marginal tax rate

7. Estate Planning Basics

• Create a will
• Designate beneficiaries on all accounts
• Consider power of attorney documents

8. Ongoing Habits

• Track net worth monthly
• Review and rebalance investments annually
• Live below your means
• Automate savings and investments
• Continuously educate yourself about money

Key Principles

• Start early - time is your greatest asset
• Pay yourself first through automatic transfers
• Invest consistently regardless of market conditions
• Keep investment fees low (<0.2% expense ratios)
• Don't try to time the market
• Diversify globally across asset classes

Making $100k per year

• 300 customers at $29/mo
• 6 sales/day at $45
• 50 students/quarter @ $500 each
• 15 hours/week @ $125/hr

Making $1,000,000

• 5,000 people to buy a $200 product
• 2,000 people to buy a $500 product
• 1,000 people to buy a $1,000 product
• 500 people to buy a $2,000 product
• 300 people to buy a $3,333 product

Breaking it down

• Get 5,000 people to pay $17/pm for 12 months
• Get 2,000 people to pay $42/pm for 12 months
• Get 1,000 people to pay $83/pm for 12 months
• Get 500 people to pay $167/pm for 12 months
• Get 300 people to pay $278/pm for 12 months