Practical Money Management for Your 20s, 30s, and 40s | The Informed Investor 52

Episode 52: People in their 20s, 30s, and 40s don't have it easy when trying to figure out the best ways to spend, save, and protect their money.

Life often comes at you fast. New relationships, new jobs, new family members, new homes, new bank accounts, all wrapped up in new worries.

Kelly Klingaman, Founder and CEO of Kelly Klingaman Financial Planning in Austin, Texas, has some advice. A lot, actually.

While Klingaman specializes in advisory services for high-achieving professional women and their families, she believes most young people can benefit from straightforward financial strategies that can help you take control and gain financial peace of mind.

When it comes to spending, she recommends a three-bucket system: one for fixed expenses like rent, one for flexible weekly expenses like groceries, and one for nonmonthly spending like vacations. Then, each bucket should get its own bank account so bucket income and outlays can be tracked, and preferably by both partners if you're in a relationship.

On the saving front, Klingaman recommends that Gen Z, Millennials, and Gen X should try to put away 10%–20% of their income, both for meeting nonmonthly spending needs and for retirement planning. The money, she says, should be invested in a combination of tax-advantaged 401(k), HSA, and Roth accounts as well as taxable brokerage accounts, depending on one's assets and cash flow needs.

And this advice just scratches the surface. Klingaman also weighs in on insurance, estate planning (yes, even young people should get that started), owning versus renting, and much more.

In Episode 52 of The Informed Investor podcast, Dimensional's Mark Gochnour, Head of Global Client Services, asks Klingaman all the "must do" money questions on the minds of Gen Z, Millennials, and Gen X (and maybe the parents of all three).

LINKS FROM TODAY'S EPISODE: 

Preorder "Stay Calm: Learn to Embrace Uncertainty in Investing and Life" https://www.staycalminvesting.com/preorder

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For US audiences: Select videos are available as part of an opportunity for CFP® and Investments & Wealth Institute® professionals to earn continuing education (CE) credits. https://www.dimensional.com/us-en/financial-professionals/ce-credit-experience-d360 

The Informed Investor: Feedback Survey https://www.dimensional.com/us-en/informed-investor-survey

"The Informed Investor" on YouTube https://www.youtube.com/playlist?list=PLCyJr6FFig-h1mA7rVP7Mbk0irFw2wA90 

Dimensional Fund Advisors Shorts on YouTube https://www.youtube.com/@dimensionalfundadvisors/shorts

Mark Gochnour on LinkedIn https://www.linkedin.com/in/mark-gochnour-9a23598a/

Kelly Klingaman on LinkedIn https://www.linkedin.com/in/kelly-klingaman/

Learn more at https://www.dimensional.com/