I’ve been reading about personal finance, and here are three lessons I’ve learned.

1. Financial Independence (Early vs. Late)

Financial independence, simply put, means having enough money to live (without other's support, or without needing to work). It's worth noting that while many of the steps toward financial freedom are the same, your timeline can significantly influence your priorities. For example, if you aim to achieve financial freedom early and retire young, you'll need to make your money work harder and sooner. This doesn’t mean you can't reach financial independence with your current habits, but it might take longer.

2. Housing

Housing is a topic that generates a lot of mixed opinions. Some suggest buying a home within your means and not viewing your first house as an investment. Others advocate for "house hacking"—buying a house and renting out rooms to live for free. It's important to understand the local housing market and your personal situation before making a decision. Much of the choice is not just financial; factors like whether you plan to stay in the area long-term or if you anticipate changing jobs play a role. Additionally, housing can indirectly affect your transportation costs, so it's worth considering the location relative to your work or your parents' home if you visit regularly. The debate over taking a mortgage versus paying in cash is another hot topic. While understanding the opportunity cost is essential, assessing the mental burden of a mortgage is equally important. A financially sound decision should consider both the numbers and emotional aspects.

3. Spending

Cutting spending is a common way to save more money, and a great motivator is realizing that every dollar you save is post-tax, meaning the money saved is effectively tax-free. When adjusting spending habits, it's crucial to focus on the major categories, as cutting small expenses usually won't lead to substantial savings. For most people, the largest expenses are housing, transportation, and food, making those the primary areas to target for reductions.