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60 Simple Rules of Personal Finance - The Simple Dollar

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60 Simple Rules of Personal Finance - The Simple Dollar
A while back, I was asked to give an hourlong presentation where I talked about my key principles of personal finance. I chose to give a presentation where each slide was available for about a minute with one simple rule on each slide, giving me a minute to discuss that rule.

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Keep everything as simple as possible

The more credit cards you have, the more chances you have for identity theft and the more chances you have to miss a payment. The more investment accounts you have, the less attention you can give ...

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Don’t ever let your “future self”...

...take care of your current situation.

Your future self might have more income, but it’s also fairly likely that your future self might have less income and you’ll find yourself in a really ...

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Focus on...

  • Building an emergency fund: set up an automatic weekly or monthly transfer from your checking account to your savings, then leave the savings alone until an emergency appears.

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Build the right budget

The most valuable part of budgeting is actually the process of building a budget correctly. 

You build a budget based on looking at your actual spending over the previous few mo...

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How much 1 hour of your time costs

  • Figure out how much you earned last year after taxes.
  • Subtract from that all of the costs of commuting, professional clothes, work-related meals, and other expenses you p...

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Renting vs. home ownership

Rent unless your total monthly cost of home ownership is lower than renting.

It’s easy to get sold on the home ownership dream, but if it’s going to jack up your bills, it’s probably not...

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The 10-second rule

Whenever you’re tempted to splurge on something cheap, simply hold it in your hand for 10 seconds and ask yourself honestly whether you need it or not. Actively try to think of reasons why...

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The 30-day rule

For more expensive items simply choose to wait 30 days after your first serious impulse before buying the expensive item, provided that it’s not an essential or emergency need.

Us...

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Unused subscriptions

Cancel your unused memberships and subscriptions.

Unused subscriptions and memberships do nothing but devour your money month after month.

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Investing money in stocks

Investing money in stocks
  • Money in stocks, over the long term, tend to offer very good returns, but stocks tend to be very volatile, with lots of short-term jumps and falls in value. Hold on and be patient.
  • ...

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SIMILAR ARTICLES & IDEAS:

Salary is not the same as savings

Having a high salary does not automatically make you rich; having a low salary does not automatically make you poor.

Your net worth is more important than how much money you make. It’s amazin...

Saving is more important than investing

Pay yourself first is such simple advice, but so few people do this. 

The best investment decision you can make is setting a high savings rate because it gives you a huge margin of safety in life.

Live below your means...

....not within your means. 

The only way to get ahead financially is to stay behind your own earnings power.

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Smart retirement planning boils down to a few simple truths.

  • Time is on your side.  The earlier you start saving money, the more time you give compounding to work for you. 
  • Take risks when you're young.  Althoug...

Understanding personal finance

It is possible to make a budget work while still saving enough to retire. It starts with learning to change your habits so you can put money aside.

It is not that easy to make any sort of rea...

Knowledge is power

When it comes to money, people will do whatever they can to get hold of your money, regardless of how it will affect you.

Don't rush into any sort of decision making. Always consult a second source.

Automate anything you can

Assuming you have enough to cover the bills and aren't pulling an overdraft fee, start by automating your retirement savings. You know you need an emergency fund, so automate. Do the same with increasing your 401(k) contributions each year, or paying off your credit card debt. 

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