1. The One-Page Financial Plan

By Carl Richards

2. Summary

- This book is about budgeting and investing.

  • Budgeting is hard, but everyone has to learn how to do it to get ahead in this world. Investing in your future and thinking about money is crucial.

    • Simple way to do both.

3. Why Money is Important to You, What are your goals, and how can you fine tune to reach them?

- You need to figure out how you value money and understand that everyone is different just like when you go to the doctors, so figure that out about yourself first. Are you really living according to your values?

  • Fine-tune your financial goals and values when unpredictable things happen in life and think of plan A, B, and C. Goals aren't set in stone. Goals an be for yourself, for your loved ones, but remember they can change.

    • Learn to Save and practice every time you get money.

4. Make a Balance Sheet and Track 

- Your current financial situation, know your money.

  • Figuring out your assets and liabilities. Complete a T-Shape balance sheet where you write down your assets on the left side and your liabilities on the right.

    • Assets: Investments and savings​

    • Liabilities: Mortgage and debts

  • Knowing where you stand can help you save more, and pay debts off quicker.

  • Track your money and learn where you can save. Spend Less

5. Paying off Debts, Saving, and Invest like a scientist. 

- Pay off debts as a form of investment. Pay off the loans with the highest interest rate first so that you are not throwing away money. 

  • Before you invest in something, study that something like a scientist. No single stock is going to be your golden ticket, spread your risk over as many sectors as possible. Your portfolio should be in both big and small companies.