Nuggets of knowledge you can share

[corn18]

I learned a lot in a short period when it comes to money. I can say I am much dumber than I thought I was or at least I was willing to admit. I thought I'd start a thread on some simple things we've learned along the way.

1. Live below your means (LBYM).
2. Never invest in anything you don't understand
3. Compound interest is the 8th wonder of the world

That's all I can think of that I would consider universal truths on the path to financial independence. What would you add?

[creditcardfree]

4. Everyone NEEDS an emergency fund.

Of course, that does tie into spending less than you earn.

[bjl584]

Have a system for organizing and keeping track of things.

I have a simple folder that I keep all my bills in separated by the day they were due. I also made up a simple Excel file listing all my assets and liabilities that I update monthly.

[GoodSteward]

Stop window shopping, including online.

There is always a deal, or something on sale. If you keep looking, you will find something you really need that you didn't know you needed until you saw it and needed it.

This is especially for those who are spenders, such as myself.

[TexasHusker]

If you want to save some money and accumulate a decent nest egg, this is a good site to frequent.

If you want to create wealth, this isn't the site.

[sv2007]

If you want to save some money and accumulate a decent nest egg, this is a good site to frequent.

If you want to create wealth, this isn't the site.

I think this hits it spot on.

Many of the suggestions actually work against even saving large amounts of money. It is only good for saving a small amount. Maybe I'd react the same way (like many forum members) 20-25 years ago when I didn't have much experience.

[rennigade]

I think this hits it spot on.

Many of the suggestions actually work against even saving large amounts of money. It is only good for saving a small amount. Maybe I'd react the same way (like many forum members) 20-25 years ago when I didn't have much experience.

And judging by your posts since day one I have yet to see you elaborate on any experience you gained over the years.

Please..enlighten us...we're all ears.

[sv2007]

I learned a lot in a short period when it comes to money. I can say I am much dumber than I thought I was or at least I was willing to admit. I thought I'd start a thread on some simple things we've learned along the way.

1. Live below your means (LBYM).
2. Never invest in anything you don't understand
3. Compound interest is the 8th wonder of the world

That's all I can think of that I would consider universal truths on the path to financial independence. What would you add?

Just an observation on your #2. I read often here that if you know nothing, put $ into SP500 ETF. Wouldn't that be against #2? Do folks who buy an ETF like VOO (I know a lot of folks here like Vanguard) voluntarily know what's in it (name the top 10 holding)? How a company gets added (based on what)? How the ETF works (there's lag and fees)?

Do you? (not an attack, just wondering). If people don't know even these basics how the heck can #2 be "universal truth".

[sv2007]

And judging by your posts since day one I have yet to see you elaborate on any experience you gained over the years.

Please..enlighten us...we're all ears.

If you like your current situation (I believe you ranked yourself as rich already), then there is less need to change since I assume you probably like your situation and ways of doing things. However, reading some of your posts seem to tell me differently; but only you know.

Here's my advice, maintain an open mind. Willing to think for oneself; do the research and understand that there is always an occasion to learn. Then just search my old posts; I think many can truely benefit from them.

[DaveInPgh]

If you like your current situation (I believe you ranked yourself as rich already), then there is less need to change since I assume you probably like your situation and ways of doing things. However, reading some of your posts seem to tell me differently; but only you know.

Here's my advice, maintain an open mind. Willing to think for oneself; do the research and understand that there is always an occasion to learn. Then just search my old posts; I think many can truely benefit from them.

One would need to be able to decipher them to benefit from them. And chances are the appropriate way to benefit from them would be to ignore them completely.

[sv2007]

Here's an advice for larger savings (maybe it'll get shot down here?)

- Let investment income create more income for you. The saying that it takes money to make money is somewhat true. This is the path to financial freedom; shift away from earned income.

- Multiple streams of income is nice to have, but understand what it truely means. On the surface, it sounds like income from job, income from stocks, income from rental, income from business, so there's 4. But that is probably an understatement.

- Success in life, success in work demands dedication and hard work. The statement of "work smarter, not harder" isn't the truth. The truth is "work harder and smarter". There is always time for the important things in life; that's another thing I've learned early on that's incredibly useful.

[rennigade]

If you like your current situation (I believe you ranked yourself as rich already), then there is less need to change since I assume you probably like your situation and ways of doing things. However, reading some of your posts seem to tell me differently; but only you know.

Here's my advice, maintain an open mind. Willing to think for oneself; do the research and understand that there is always an occasion to learn. Then just search my old posts; I think many can truely benefit from them.

And again...words pour out of your mouth on a $$ forum with no meaning. Congrats. You should log out and log back in as goodsteward...at least your altered ego does a better job of saying something of use.

[cypher1]

The first one that comes to mind is always "Pays yourself first." along with "It's not what you make, but what you save."

Otherwise before purchasing an item, as yourself: Is this a need or a want?

[Singuy]

Travel the world, especially to third world countries. Try not to have your experience be solely based on a 5 star hotel in the tourist spot. Venture out and explore. This will help you realize how awesome and fortunate your life is...which hopefully minimize your first world problems.

[rennigade]

Main one is: LBYM
Invest long term
Invest early and often
Do not keep up with the joneses