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- Sep 15, 2012
1. Make saving a priority
2. Have a budget. Because without a plan, you will fail. Perhaps, quickly or perhaps over time, but you will fail.
3. Track your net worth. You don't go on a diet without getting on a scale periodically, right? So don't try to manage your money without some barometer of success. I recommend MINT. You can track all deposit accounts, 401-k, car value, stock portfolio, house value and get a definitive picture of what you are worth.
4. DO NOT...EVER...tread the path of the installment payment makers (obvious exception: mortage). If you want a car...save and pay for it cash. Even if it means having a beater for a year until you can upgrade. If you want a new tv, put if off until you have the funds. I read this in one of Dave Ramsey's books and find it to be true: IT IS EASY TO ACCUMULATE WEALTH IF YOU ARE NOT CONSTANTLY MAKING PAYMENTS.
5. Live like the sky is falling. If you follow no other rule, make it this one. Everyone should have a level of apprehension of what the future holds. Even if you are doing very well, you cannot guarantee that your employer won't downsize, or you won't become disabled, or one of your loved ones will not becomes terminally ill. Fear for the future is not only healthy, but rational. It will help you make better choices about saving and delaying gratification.
6. Life insurance. The road to wealth is generations long. Give your children a head start, while also protecting them in the event of your untimely demise. Do this by age 30 to lock in the best rates.
2. Have a budget. Because without a plan, you will fail. Perhaps, quickly or perhaps over time, but you will fail.
3. Track your net worth. You don't go on a diet without getting on a scale periodically, right? So don't try to manage your money without some barometer of success. I recommend MINT. You can track all deposit accounts, 401-k, car value, stock portfolio, house value and get a definitive picture of what you are worth.
4. DO NOT...EVER...tread the path of the installment payment makers (obvious exception: mortage). If you want a car...save and pay for it cash. Even if it means having a beater for a year until you can upgrade. If you want a new tv, put if off until you have the funds. I read this in one of Dave Ramsey's books and find it to be true: IT IS EASY TO ACCUMULATE WEALTH IF YOU ARE NOT CONSTANTLY MAKING PAYMENTS.
5. Live like the sky is falling. If you follow no other rule, make it this one. Everyone should have a level of apprehension of what the future holds. Even if you are doing very well, you cannot guarantee that your employer won't downsize, or you won't become disabled, or one of your loved ones will not becomes terminally ill. Fear for the future is not only healthy, but rational. It will help you make better choices about saving and delaying gratification.
6. Life insurance. The road to wealth is generations long. Give your children a head start, while also protecting them in the event of your untimely demise. Do this by age 30 to lock in the best rates.
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