At home, my bookshelf is next to the computer. I‘m starting this posting and I’m looking at the books on my shelf. We must have dozens of personal finance titles, everything from the classics like The Intelligent Investor to junk like Charles Givens piece Wealth Without Risk. There are also thousands of personal finance blogs available in the blogsphere and hundreds of firms who want to sell you investments. – sometimes difficult to know whats good advice and what isn’t.
So, drawing on my most favorite personal finance author Eric Tyson, I wanted to offer 5 points of advice that at a minimum, won’t steer you wrong:
1) Take Charge of Your Finances: – The longer you procrastinate the more you’ll disadvantage yourself. Don’t wait for a crisis to get your act together, just do it.
2) Save and Invest At Least 5 to 10 Percent of Your Income: The best thing to do here is save through a retirement savings account to reduce taxes. You’ll want to do this to take advantage of opportunities as they come up as well. Saving can add up fast. For example we ended up coming up with $21,000 in ten months. If we did it, so can you.
3) Invest Your Long Term Money in Ownership Vehicles: The main reason for doing this is that stock or direct ownership of companies often have long term performance that beats bonds or bank accounts. You’ll want to do this consistently over the long run.
4) If You’re Married, Be Sure its a Partnership: Discuss your joint goals, issues and concerns. Be accepting of your other partners personality. Compromise and act as a team.
5) Own Your Home: Some people are able to gain more wealth by renting and carefully investing. But, in the long run, owning is more cost effective than renting. That said, its best not to buy unless you can stay in one area for a while.
Hope some of this helps!