Oh how time flies. In a few short months, I will be attending my 10-year high school reunion. On one hand, it will be exciting to hear the stories of my peers and the accomplishments they have achieved in the short time we've been apart. On the other hand, I'm apprehensive, remembering the days of social awkwardness and physical ineptitudes.

One thing I'm sure of (speaking to the friends I still contact regularly), is that most of us are still as hesitant of our future as we were when we flipped our tassels (financially speaking). We work hard every day to make ends meet and hope that our work now will provide us with sustenance in the future.

For my first column, I thought I'd look back at those few years learning about Shakespeare and Evolution and add some topics that would have been great to have covered while still in high school.

1. Humans generally think in the "now," but need to plan for the future.

The summer between high school and college was great. As friends, we'd hang out at the beach, go to the movies and enjoy ourselves. At no time did the words "retirement," "nest egg," or "children," leave our lips. Why should it? Without paying for a mortgage, supporting a family or paying the electric bill, the reality of life would not hit us until we were well into our 20's. The only reason I was lucky enough to be where I am today was the wisdom of my parents, who were secretly putting money away for me.

It's basic common sense. The earlier we start planning for the future, the path getting there will be easier. Time is on our side, as demonstrated in the next topic.

2. The rule of 72

The rule of 72 is very simple. Take the number 72, divide it by an interest rate. This calculates the number of years an amount of money will double.

Again: 72/interest rate = # of years to double your money.

Therefore, if you have $1,000 and invest it with an appreciation rate of 10%, in 7.2 years, you would have $2,000.

Because younger people have time for their money to compound, the rule of 72 is a great example of how wealth can be generated.

If a person at the age of 25 invested $10,000 into the stock market at a 10% interest rate over the course of 40 years (which will probably be the average person's working life), it would turn that initial investment into $455,000! That's without adding anything to it! Add $1,000 to that every year for the full 40 years and you're sitting on close to $1 million.

This is opposed to starting later (example: at age 45). At the same interest rate you'd have to put away 14 times that every year!

3. How to set up a budget (knowing where your money goes).

In my day MC Hammer was a big deal. He was making millions of dollars and was one of the most well known entertainers in the world. Within 5 years of releasing his debut album, MC Hammer filed for Chapter 11 bankruptcy. How could that have happened?

Beyond his extravagant spending, his accountant had his money tied up in risky investments including race horses and an indoor football league team. It is more than likely MC Hammer had no idea where his money was going.

Generally, individuals put more thought into planning their yearly vacation than on planning their financial future. This is a trend that's growing in the United States and will shape the landscape of those who are the "haves" and those who are the "have nots" of our generation and future generations to come. My hope is that you the reader can find your pathway to becoming one of the "haves."

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