Incorporating all that you’ve learned into the management of Family Inc. can be daunting. It’s easy to experience paralysis by analysis. My advice to you: Just do it! You will make mistakes, absolutely, but the concepts of Family Inc. will keep you on course and help you self-correct as you develop your skills as a financial manager. If you sometimes feel lost in the details, remember the big-picture principles summarized here to guide your decisions in conjunction with your own common sense.
Don’t think of yourself as an employee. You are an owner of Family Inc. Act accordingly.
You can’t afford not to make investments in education. Favor schooling that allows you to maximize your chances of being competitive in the labor market of your chosen profession and your ability to work as long as you want.
Successful careers don’t just happen; they must be managed. If you start out working for somebody else, simply being a good employee is only part of your business mandate. You must take responsibility for your career progression and choices—no one else will.
The principles of investing can guide you in allocating your labor assets toward work with the highest expected financial return.
Job number one of your asset management business is to provide liquidity for contingencies and to support your labor business and your consumption in difficult times. Always maintain an adequate reserve to meet this need.
When allocating your assets, be sure ...