Most of the Personal Finance articles are printable.
Manage Your Money
Use borrowing cautiously, especially when your home is pledged as collateral or your income is volatile or uncertain.
When choosing investments:
- Decide your personal goals (ex. college, retirement, home, car…..).
- Classify your goals as short, medium or long term.
- Target investments to each goal, so that the cash is there when it's needed.
- Make sure that any debt incurred is easily covered by expected income.
- Diversify your asset holdings.
- Seek competent, unbiased professional advice.
- Maintain liquid savings of 3-6 months living expenses in case of job loss or need to move.
- For long term protection, maintain a financial reserve equal to 5-10 times the yearly income of the principal breadwinner through various insurance & disability policies, as well as savings.
A Few Points For Emphasis
Invest Early and Often
Make consistent contributions to your own welfare. Pay yourself as you might a major utility. If you don't pay them, they turn off your lights or water. If you don't make disciplined, regular payments to yourself, so that investments can grow, you'll not retire comfortably.
Diversify
Never place all your bets on one horse. Never place all your eggs in one basket. This should ensure the safety you desire while investing.
Credit Cards should only be used as a convenient substitute for cash
They should never be used to subsidize a lifestyle that you cannot support. Pay off all cards completely and promptly. Never make minimum payments. That's the fast road to getting stuck paying the highest interest rates possible.
Though each individual's portfolio will differ, there are certain investments which should be given careful consideration by any serious investor, these include:
Education - whose return raises income while fueling all other investments
Home Ownership - if payments do not differ widely from renting, then why not have something to show for all those payments?
401-k and IRA's - both of which provide varying degrees of tax-deferral and superior long term growth.
