What you wrote is great.
What you wrote is not a guide for personal fininace.
This:
Life is unfair, unpredictable, and complex enough as it is without worrying about whether you’ll have enough cash in the bank to handle the next curveball, whether that’s losing your job or having to take care of a sick family member.
did not get enough emphasis. People often think of personal finance as focused on retirement. You seem to understand that there is more to it.
Posers with Rolex watches, fine clothes and expensive cars. None of those things are an indication of wealth and could actually be an indication of much debt. With a credit card or modest down payment you can borrow the money to buy those things.
I think it is really much more to personal fininace and your first goal needs to be your emergency fund. It could be in a 401k but I think it needs to be more accessible. What if the banks all closed. That is kind of a serious emergency.
Seriously the most important goal for young people should be accumulating an easily accessible fund to cover 6 months of living expenses. Gold, cash, savings account or other liquid assets.
Second would be a capital fund to back your own business or to buy a house. Down payment money for a business or housing loan. This could be in a 401k if it lets you borrow for your purpose. I borrowed the down payment for my second house from my 401k.
Third would be "independence money." A fund that would provide enough income so that you would never have to work again if you couldn't or did not want to. It is like a retirement fund but maybe not quite as much money, if you are frugal. It give you power to say "no" to your boss if you are being abused or disregarded and protects you incase of disability. I think having a paid off house might be a big part of this.
Lastly is retirement, if we are lucky we get so old that it amounts to a disability and we have to stop working even if we love our work. With a pension and or social security, a paid off house and a 401k and Medicare the biggest issue is how long will you live.
Oh, I did not explain how you accumulate this wealth. You live within your means and you make wise investments. Living within your means means you don't spend all your earnings and you don't borrow for consumable items. You only borrow for things that provide a return. The Rolex, fine clothes and expensive car might provide a return for a real estate agent, a pimp, or other sales person but for most people they create a financial loss, especially if you borrowed money to buy them. Invest in yourself (health and education), the tools of your trade and property. Invest in the markets anything you have left over but investing in the markets requires that you invest in an appropriate education about investing in the markets.
TEK
