The Little Book of Main Street Money: 21 Simple Truths that Help Real People Make Real Money

Chapter 21. Financial Success: It's About More Than Money

Family Can Be Our Greatest Asset—and Our Greatest Liability

What's the key to getting rich? If you think it is beating the market or earning a fat salary, think again.

Yes, higher investment returns will help you accumulate the money needed for the house down payment, the kids' college education, and your own retirement. Yes, if you're hauling in a hefty paycheck, you should find it easier to amass a decent-size nest egg.

But these are just two of the factors that propel your nest egg's growth—and they aren't necessarily the most important.

Playing Parent

So what is important? High up on the list is family, which can have a huge impact on our finances, sometimes in ways we don't even realize.

Clearly, if we have wealthy parents, we might get a high-priced education that sets us up for a high-paying job. We might also graduate debt-free, enjoy regular parental handouts, and one day inherit a handsome sum. But even without that sort of financial assistance, family can make a big difference. For instance, if we are close with our parents and with our siblings and we know they would help out if we got into financial trouble, we may be more inclined to take risk. That might mean skimping on insurance, favoring stocks over bonds, and funding the 401(k) rather than building up the big emergency reserve. All of that could mean more wealth.

Getting married can also have a major impact on our finances. Two people together can live more cheaply ...