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.
In personal finance, using frugality to save money is an obvious option. The less money you spend, the more money you save. You can find thousands of blogs with tips on not buying your espresso at a coffee shop, making your own soap or thrift shopping.
When you buy mutual funds, you are charged a purchase fee upfront. This is a one-time payment to the fund management institution. Annually, you will be charged with a percentage of management fees, commonly known as “expense ratio”, which can be expensive.
Beware when advisors at your bank recommend mutual funds to buy. They might be earning a sales commission.
If you're a regular reader of financial websites, you've probably seen plenty of articles urging you to cut "unnecessary" expenses from your personal budget. And in many cases, if you read further, you learn that the unnecessary expenses the authors have in mind are luxuries, like coffeehouse lattes.