Some financial decisions matter more than others.
Get those right, and your financial life can look great.
Get them wrong, and it’s a long road back.
Here are the most important money decisions you’ll make in life and how to get them right:
The biggest financial decision you’ll ever make isn’t what you invest in, it’s who you build your life with.
And I am not saying just pick the person who has a large inheritance coming or who makes the most money. It’s about a lot more than that.
Marriage is as much a financial partnership as it is an emotional one.
You’re combining values, spending habits, debt, goals, and timelines.
If one person is saving and investing while the other is overspending and avoiding tough conversations, it can kill your progress.
Choose someone who wants to build the same life as you and is willing to talk openly about money.
Buying a home is one of the largest purchases you'll ever make. But it is also one of the most emotional. That can be dangerous.
This is a decision people often overspend on and then regret later.
A good rule of thumb: keep your total housing costs (mortgage, taxes, insurance, maintenance) under 30% of your gross income. And the lower you go, the better. It allows you to have more discretionary income and do more outside of your house.
Buying too much house can hinder your ability to save, invest, and enjoy life.
Do not pick based on what you qualify for, pick what works well with your budget.
Where you live matters.
Are your state and local taxes really high?
Are property taxes really high?
Will your kids need to go to private school?
These are all things you need to think about before you pick a location.
I know a lot of people who pay high property taxes yet pay a ton of private school.
This can be okay, but make sure you think through it. If you have 2 kids and each go to $20k a year private school, that is $480k on school spent over 12 years. There is a huge opportunity cost there.
Your income is your greatest wealth-building tool.
That’s why career decisions and financial decisions go hand in hand.
Be intentional about:
The right job, the right environment, the right mentors, the right growth of the company, the right business all shape your income trajectory and net worth more than almost anything else.
This is a really important one.
I’m sure you have all seen the charts on the impact of investing 10 years and having half of the value yet investing the same monthly amount.
With investing, time is your best friend.
The best move you can make is to start investing 20% of your income the day you start making an income.
Then always make spending decisions from there.
Cars are one of the most common sources of financial problems, especially for low to mid earners.
A $50K car on a $100K salary might seem manageable, but it can slow your ability to:
Cars depreciate fast and cost more than you think (insurance, maintenance, gas).
Drive less than you can afford, and your future self will thank you.
And if you can afford a nice car, go for it. Just make sure you can actually afford it long term.
Money is emotional.
And when emotions are high, people often make bad decisions.
Be careful who you take advice from:
Bad advice can cost you so much money long term while good advice can make you a lot, even after fees.
Having a great financial advisor and tax advisor who knows you, how you think, your goals, etc. is so impactful long term.
You don’t need to make every perfect financial decision.
But if you get these foundational ones right, you set yourself up for a great life with a lot of flexibility.
Financial Advisor