So I took a family finance course this semester. I thought I knew a little about finances, but I have discovered that I really didn’t, and that there is a whole lot more out there for me to learn about. I did learn some basic financial advice that actually is repeated all over the place.

First is to save 10% of your income, preferably for long-term growth. We saw examples again and again how well invested money can make you a millionre, not with a huge investment amount, but by using time. I learned a tiny bit about stocks and bonds, mutual funds, IRA’s and other investments (and just so you know, you can open an IRA at a mutual fund that invests in stocks. They aren’t all seperate things).

I also liked learning about a revolving savings account. That’s where you plan out your irregular expenses like vacations, gifts, car registration, etc, and you total it, divide it by 12, and save that much each month. In addition, they suggest setting up an emergency fund equal to the amount you would need for 3 months. I would not like to be in a situation where I couldn’t pay for anything when stuff come up–savings are good.

Take that, add budgeting, proper insurance, and you should be wealthy. It’s kinda funny–you learn the people that are often wealthy aren’t those that live extravagant lifestyles, but those who are disciplined with their money.