The Financial world that today’s young adults face is quite different than a generation or two ago. Strategies for financial success that worked in the 20th century are ill-suited for the 21st. In fact, if we could take a trip back in time to a strange and wonderful destination called the late 20th century, you’d notice right away that this financial world works very differently than the one we’re used to today…
The financial world of the 21st century requires a long-range approach that begins early in your financial life.
The Net Worthy Path to financial independence includes three distinct phases: red (getting your financial basics in order and preparing to invest), yellow (earn/save/invest/repeat), and green (financial independence).
A bare minimum emergency fund of one month’s expenses is your initial, and high-priority, goal. Eventually, you’ll increase this to 4, 6, or 9 months’ expenses, depending on your household risk level.
Everybody knows it’s a good idea to have some money set aside for unforeseen expenses, but how much? Unless you have a specific goal, you probably won’t even get started. To find out the right size e-fund for you, answer the simple questions in this calculator.