The Importance Of Financial Literacy For Retirement Planning

"I don't get 40 years as a creator or an influencer; maybe you get 10 if you build a sustainable business and get lucky. So, I am doing my very best to set aside as much money as possible so that I can take care of my future." In my conversation with Vivian Tu, also known as YourRichBFF, we covered practical aspects of financial literacy, including savings, debt management, investments, and the FU number that allows you to achieve financial freedom. So, here are the key takeaways: 𝐏𝐥𝐚𝐧 𝐀𝐡𝐞𝐚𝐝: Understand the costs of your goals. Even smart people can miscalculate without proper planning. 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐈𝐧𝐜𝐨𝐦𝐞 & 𝐂𝐨𝐧𝐭𝐫𝐨𝐥 𝐄𝐱𝐩𝐞𝐧𝐬𝐞𝐬: Vivian saves more than 20% of her income, focusing on the future. Aim to boost income while keeping expenses steady. 𝐒.𝐓.𝐑.𝐈.𝐏 𝐌𝐞𝐭𝐡𝐨𝐝𝐨𝐥𝐨𝐠𝐲: It’s a five-part plan designed to help you manage your budget with a focus on securing your future financial well-being. ▪️Savings: Have an emergency fund. Single folks need 3-6 months of living expenses; households need 6-12 months. ▪️Total Debt: Rank debts by interest rate. Pay off the highest interest debt first while making minimum payments on others. ▪️Retirement Funds: Use 401(k)s and IRAs for tax benefits. Invest to keep up with inflation. Aim to get the full employer match. ▪️Investments: Saving isn’t enough. Invest in high-yield accounts to keep up with costs. ▪️Plan: Develop a comprehensive financial plan and adjust it as your life circumstances change. Calculate your financial freedom number (FU number) by determining your annual expenses and dividing by 0.04. For instance, if you need $1 million annually, your FU number would be $25 million. 𝐑𝐞𝐚𝐥 𝐄𝐬𝐭𝐚𝐭𝐞 𝐋𝐞𝐯𝐞𝐫𝐚𝐠𝐞: Leverage debt if the economics work in your favor. For high mortgage rates, paying down might be wiser. For rates under 7%, investing might be better. 𝐌𝐨𝐧𝐭𝐡𝐥𝐲 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠: Use spreadsheets to manage finances, track credit card statements, and have regular financial discussions with your partner. Vivien’s approach emphasizes understanding your finances, making informed decisions, and continually adjusting your plans to align with your goals and circumstances. Thanks for such a great conversation! #YourRichBFF #VivianTu #MoneyManagement #FinanceTips #FinancialLiteracy

Building Wealth: A Generational Movement Starts with Education For too long, we’ve expected everyday working people to navigate an increasingly complex financial world without the right tools or knowledge. We’ve handed them retirement plans, investment options, insurance policies, and estate planning decisions—yet never truly equipped them with the fundamentals of wealth building. It’s time to change that. Financial security isn’t just about picking the “right” investments or chasing returns. It starts with a strong foundation—one that can support not just individual success, but generational wealth. And that begins with education. The Steps to Making Solid Financial Decisions: ✅ Master the Basics – Understanding budgeting, saving, and the power of compound interest sets the stage for financial success. ✅ Protect Before You Grow – Insurance and emergency funds provide stability, ensuring setbacks don’t derail progress. ✅ Invest with Purpose – Building long-term wealth means aligning investments with goals, risk tolerance, and time horizons. ✅ Minimize Financial Leaks – High-interest debt, unnecessary fees, and poor tax strategies can quietly erode wealth. Knowledge is power. ✅ Plan for Generations – Legacy and estate planning ensure wealth isn’t just built, but sustained and transferred effectively. This isn’t just a financial movement—it’s a generational movement. It starts with intentional and purposeful financial professionals who are committed to education, advocacy, and empowerment. At Legacy Wealth Group, we’re on a mission to shift the narrative—because wealth isn’t reserved for the privileged few. It’s built by those who have access to the right knowledge, tools, and strategies. Let’s ensure the next generation is better prepared than the last. The future of financial independence starts today. #WealthBuilding #GenerationalWealth #FinancialEducation #LegacyMatters

The one skill every college student should master before graduating? Understanding compound interest. Not just the math. The mindset. Here's what I tell every young professional who walks into my office: Your first job offer might be $50,000. Maybe $70,000 if you're lucky. But the decisions you make in your first decade will determine whether you retire with $500,000 or $5 million. The difference? Time and knowledge. Consider this real example that still shocks my clients: 👉 Graduate A: Starts investing $100/month at 20 👉 Graduate B: Waits until 30, invests $300/month 👉 Both retire at 65 Graduate A ends up with $445,000. Graduate B? Only $406,000. One-third the monthly investment. More money at retirement. That's a 10-year head start worth $39,000, even though Graduate B invested $24,000 more of their own money. But here's what colleges don't teach: ✅ How to read a 401(k) statement (remember those hidden fees?) ✅ Why your first employer match is worth more than a signing bonus ✅ How lifestyle inflation kills wealth before it starts ✅ The real cost of student loan deferment 3 moves every graduate should make Day 1: 1️⃣ Contribute enough to get the full employer match (it's free money) 2️⃣ Automate 10% to savings before lifestyle creep kicks in 3️⃣ Learn one new financial concept monthly The best part? You don't need to be a finance major. You just need to start. Even $100 a month. Even $50. Because compound interest doesn't care about your GPA. It only cares about time. What financial lesson do you wish you'd learned in college? Share below. Follow me for daily insights that connect financial literacy to real-world wealth building. #LinkedInTopColleges #FinancialLiteracy #CollegeStudents #CompoundInterest #FinancialAdvisor