Compound interest
According to The Principal Financial Well-Being Index, retirement planning is on the rise in America.

The survey points out that only 28% of workers aren’t planning for retirement, which is a drop from 32% in the previous quarter. This news indicates that more American workers are making efforts to plan for retirement.

Are you one of them?

The Sooner You Start, The Better Off You’ll Be

With investing and retirement planning, the sooner you start, the better off you’ll be. There are two main reasons you should consider beginning your retirement planning as soon as possible:
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One of the commonly accepted indicators of financial success in our society is homeownership, but it’s not necessary to buy a home just to reflect financial success. For many people, it can make more sense to rent a home. After all, whether home buying is the best choice for you largely depends on your goals, and your lifestyle preferences.

So how do you figure out whether renting is better than buying?

Does Home Ownership Fit Your Lifestyle?

The first thing to ask yourself is whether or not buying a home fits your lifestyle. We often look at life and financial milestones as a series of boxes that need to be checked: Go to school, get a job, get married, have kids, buy a house, and get a dog. However, you don’t necessarily have to do all of those things, let alone in any particular order. Homeownership has long been an indication that you’d “made it” in terms of a certain level of success, but it doesn’t have to be that way.

Consider your personal preferences and lifestyle. Are you going to stay in one place for decades? Many people move when they find a job with better prospects (and pay). If you are stuck with a house you need to sell, it’s much harder to uproot the whole family and chase that new career.

And even if you are willing to struggle through the hassle of selling a home, it can still be costly.
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Common sense finance should be easy, right? But it’s not. Human nature and our inherent weaknesses cause us to make serious, expensive financial mistakes. What are the most basic, yet also the most important financial tips that we would want our kids to follow? Some of these tips are painfully obvious, and we’ve included them here, but many of us still ignore them. You’re very welcome to add your own of course, in the comments section!
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Part of good financial management is making decisions based on your priorities, and understanding how a purchase or a spending decision will benefit your life.

Before you spend money on a product, service, or experience, it’s a good idea to consider what you will gain by making the spending decision. Spending money can be a positive experience when done with a focus on what you can gain as a result of your spending decision. Here are a few things to consider:

Is It Something Your Family Values?

First of all, you need to decide if it is something your family values. Do you enjoy making memories on vacation? Do you spend time playing video games together? What do you enjoy doing together? If the purchase will help you spend more time doing what you like to do together, it is probably worth the expenditure. Make sure that the purchase is in line with your personal and family values for the best results.
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Liquidity is incredibly important in a time of crisis, but just how important is it to you to have cash lying around just in case? What even is liquidity?

In financial terms, liquidity is the measure of how easy it is to turn an asset, such as stocks or real estate, into cash on demand. Stocks are considered to have high liquidity because there are basically always buyers willing to take your shares off your hands. A house, on the other hand, is considered fairly illiquid because it takes time to market and sell your home even in the hottest of markets.

Most people, however, think of having liquidity as it relates to their own personal finance. When someone talks about the importance of liquidity, they are almost always talking about the need to have enough cash in a crunch to weather a financial storm. What do they mean and why is it important? Let me tell you about what can happen if you don’t have liquidity.
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The idea is simple, really: Don’t put all your eggs in one basket.

If you’ve managed to save some money, and you keep saving each year, good for you! Being in a place where you’re (presumably) free of  bad debt (such as credit card debt) and can save each year is a very good place to be. But it’s not worry-free. If you have a stash of money, you need to invest it – otherwise you risk having it slowly lose its value because of inflation. But where to put your money? That’s where asset allocation becomes your best friend.
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