Personal Finance

Don't bother saving money until you can answer one basic question

Written by Libby Kane
2_Chapter2
Carl Richards
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Carl Richards, a financial planner and author of "The One-Page Financial Plan: A Simple Way to Be Smart About Your Money," is known for boiling down essential money advice into a simple sketch that could fit on a napkin.

In the one above, Richards looks at the question that should guide your savings goals: Where do you want to go?

Richards writes:

When you plan a trip, you decide where to go first.

Then, you weigh your travel options, like whether to fly or drive. After all, driving won't get you to Paris if you're starting in New York.

You need to use the same logic with money. Yes, you may want to save money, but for what purpose?

Your one-page plan reminds you of "why" you're saving money, helps you weigh the different options, and makes it easier identify the best path for getting you where you want to go financially.

See 20 more sketches with Richards' commentary.

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libby kane 2
Libby Kane
Libby Kane was a personal finance expert who has reported and edited stories about money for more than 10 years. She previously held the Certified Financial Education Instructor (CFEI) certification issued by the National Financial Educators Council.Experience She has written and edited articles on everything from investing tips to model budgets and has interviewed dozens of authors, financial planners, and early retirees to share their advice, experiences, and insights with a global audience. Before joining Business Insider in 2014, she was an associate editor at LearnVest, a personal finance site to help women learn about money. Her work has appeared on sites such as MSN, AOL, Forbes, Slate, and The Street.Her team at Business Insider has tackled projects including:• Women of Means, a series about women taking control of their finances• Inside the Racial Wealth Gap, an exploration of the causes, effects, and potential solutions of the racial wealth gap in the US (finalist, Drum Award, "Editorial Campaign of the Year," 2021)• Strings Attached, a series of essays from people who have left insulated communities and how that journey affected their relationship with money• Master Your Money, a year-long guide for millennials on how to take control of their finances  (first runner up, Drum Award, "Best Use of Social Media," 2022)• The Road to Home, a comprehensive guide to buying your first house (silver award winner, National Association of Real Estate Editors, "Best Multi-Platform Package or Series – Real Estate," 2022)Libby believes in one universal truth about money: Advice is never for everyone. The best strategies, tools, and products depend on your preferences, financial situation, history with money, and goals.ExpertiseHer expertise includes:• Behavioral finance• Early retirement• Budgeting• Saving moneyEducationLibby holds a bachelor's degree from Wellesley College.Outside of personal finance, Libby enjoys reading, baking, and walking her dog.