FINANCIAL LITERACY 101

By Nicholas Arthur

types best fit your picture and what will taxes look like in the future are key considerations. Protecting yourselves in event of an accident that prevents return to work is the difference between an early and a delayed retirement. Keeping the emergency fund handy acts as a buffer between immediate cash and credit. See these as key first steps toward financial security.

Financial literacy can be a daunting topic, but understanding it is crucial to live life by design, not by default. Let’s think of it as building a house. First, you have your foundation. Try to remember a time someone has complemented the foundation of your home, but we both know that nothing good comes from a house without a solid foundation. A solid foundation serves as safety net for your financial plan. Life insurance, disability insurance, and emergency savings all play an important role your financial safety net. Knowing how much life insurance is needed, what types best fit your picture and what will taxes look

After the foundation is completed next are the walls, windows, and doors of the house. This is where you apply your savings skills to start paying off debt beginning with the highest interest first and moving your way down. Credit can be your friend, or something that keeps you awake at night. With credit paid down, you can start growing your dollars into the stock market in a welldiversified portfolio.

When the roof and the interior are completed your get to enjoy your home. Retirement is distributing your cash back as income in the most tax efficient manner. You should able enjoy you golden years without having to check your phone, look at your portfolio and worry if you will have enough that year. Dollars in all taxable accounts can become an extreme tax burden in the future if tax rates increase due our own personal income or federal law. Growing capital in taxfree vehicles is the best way to get ahead.

Financial literacy is not just about accumulating wealth, it is about creating a life that is aligned with our values and priorities. By learning how to manage our money effectively, we can pursue our passions, spend time with loved ones, and create meaningful experiences that bring joy and fulfillment to our lives. In this way, financial literacy can be a key component of a happy and fulfilling life.