These are strong guidelines NOT rules.
First a question, Why do banks and insurance companies have the biggest buildings?
1. Don't take out short term loans (keep balances on credit cards at zero) and don't pay interest
2. Don't rent
3. Save 3 months living expenses and keep in a money market account
4. Invest
5. Use mutual funds and ETF's and be diversified. Check what your funds own to be sure they don't overlap too much. Also be balanced between large and small companies domestic and foreign. Think long view.
6. Own real estate beginning with your own home
7. If you don't want to be a landlord, use a real estate mutual fund
8. Be sure to watch your funds and see they are outperforming the averages and are in the top 20% in there category. Check 2 to 4 times a year
9. Only buy term life insurance and invest the difference
10. Plan for retirement. Don't expect Social Security to be enough. It won't be!
11. Separate your needs from your wants. Ask yourself "am I going to be happy about this purchase when I have to pay the credit card bill and beyond, or am I caught up in the excitement of the purchase?"
12. Pay yourself too. Enjoy each day! Control your money and don't let it control you
13. Dollar cost average. Buy some mutual fund shares every month (or whatever time period works for you) Don't expect to buy at the low or you will not succeed. Instead, look at it as when it goes down you get more shares. After all you are buying for the long term, not selling anytime soon
14. Don't jump around to try and catch what is hot. Your too late. Instead, what is cheap and going to be hot next? Here's a good rule of thumb about investing: When people who know nothing about an investment start buying it, that's a good time to start selling it. The reason is simple. The unknowledgeable ones are always the last people to buy. Once the amateurs are in, there is no one left to buy. That market can't go any higher.
15. Don't invest funds for the long term that you will need within 3 years. That is what the money market is for.
16. NEVER go without health insurance
17. Always carry car and home insurance
18. Live well, but below your means
19. Have a short term and a long term plan and write it down where you can review it often. This includes all your goals. If you don't write them down your chances of success in achieving your plan is greatly diminished.
20. Don't jump in and out of the market. Market timing does not work. Instead use a 50 and 200 day moving average to buy when things are not too expensive
21. Make these kinds of decisions prior to this happening and NOT when the market is open. I like to do these reviews on Sunday mornings, away from all the news and market "noise" where I can be objective and consider my long term goals.
22. When it comes to the markets, leave your emotions out of it!
23. Don't buy extended warranties
24. The problem with borrowing money, you have to pay it back, WITH INTEREST!
25. Avoid the bankers 4 D's Debt, Divorce, Disease, and Death (not necessarily in that order).
First a question, Why do banks and insurance companies have the biggest buildings?
1. Don't take out short term loans (keep balances on credit cards at zero) and don't pay interest
2. Don't rent
3. Save 3 months living expenses and keep in a money market account
4. Invest
5. Use mutual funds and ETF's and be diversified. Check what your funds own to be sure they don't overlap too much. Also be balanced between large and small companies domestic and foreign. Think long view.
6. Own real estate beginning with your own home
7. If you don't want to be a landlord, use a real estate mutual fund
8. Be sure to watch your funds and see they are outperforming the averages and are in the top 20% in there category. Check 2 to 4 times a year
9. Only buy term life insurance and invest the difference
10. Plan for retirement. Don't expect Social Security to be enough. It won't be!
11. Separate your needs from your wants. Ask yourself "am I going to be happy about this purchase when I have to pay the credit card bill and beyond, or am I caught up in the excitement of the purchase?"
12. Pay yourself too. Enjoy each day! Control your money and don't let it control you
13. Dollar cost average. Buy some mutual fund shares every month (or whatever time period works for you) Don't expect to buy at the low or you will not succeed. Instead, look at it as when it goes down you get more shares. After all you are buying for the long term, not selling anytime soon
14. Don't jump around to try and catch what is hot. Your too late. Instead, what is cheap and going to be hot next? Here's a good rule of thumb about investing: When people who know nothing about an investment start buying it, that's a good time to start selling it. The reason is simple. The unknowledgeable ones are always the last people to buy. Once the amateurs are in, there is no one left to buy. That market can't go any higher.
15. Don't invest funds for the long term that you will need within 3 years. That is what the money market is for.
16. NEVER go without health insurance
17. Always carry car and home insurance
18. Live well, but below your means
19. Have a short term and a long term plan and write it down where you can review it often. This includes all your goals. If you don't write them down your chances of success in achieving your plan is greatly diminished.
20. Don't jump in and out of the market. Market timing does not work. Instead use a 50 and 200 day moving average to buy when things are not too expensive
21. Make these kinds of decisions prior to this happening and NOT when the market is open. I like to do these reviews on Sunday mornings, away from all the news and market "noise" where I can be objective and consider my long term goals.
22. When it comes to the markets, leave your emotions out of it!
23. Don't buy extended warranties
24. The problem with borrowing money, you have to pay it back, WITH INTEREST!
25. Avoid the bankers 4 D's Debt, Divorce, Disease, and Death (not necessarily in that order).
