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One of my favorite personal finance Authors is Eric Tyson. He is the author of Personal Finance for Dummies, which is a really solid grounding in the basics of personal money management.
Here are some things he says, which are good solid pieces of advice that merit publication here in the forums.
I have also added some ideas which I think are good enough for Saving Advice community.
1) Take charge of your finances. Procrastination or sticking your head in the sand is detrimental to your long term financial health.
Don't wait for an issue to crop up. Be proactive and take action today.
2) Don't buy items that loose value over time on credit. This includes cars, vacations, clothing, furniture or chattel.
Only use debt to buy things which will increase in value over time or which provide long term value. This is good quality real estate, stocks, education or a business.
3) Don't carry debt on a credit card. Credit cards charge usurious interest rates - between 20% and 100% percent once all fees are factored in.
If you are challenged with credit card debt, get rid of them and go to debit cards or cash.
4) Live within your means. If you try to keep up your richer peers you might engage in borrowing to fund conspicuous consumption.
This is a pattern of behavior engaged in by poorly educated or low net worth populations.
5) Save and invest at least 5 to 10% of your income. Save more than 5% to 10% if at all possible.
The more you save the more you'll be able to invest, the more economic security you'll have and the more psychologically empowered you will be.
Do use retirement savings accounts like 401ks/403bs or IRSs to minimize your tax burden.
6) Understand and use employee benefits. If you are self-employed, find the best insurance and investment options available to you and use those.
7) Research before you buy. Never choose a financial product based on an advertisement or a salespersons recommendation.
They may try to sell you a high fee product or a product that is not right for your risk tolerance.
8) Avoid financial products that have a high fees/commissions/expenses. Companies which sell these products through aggressive sales techniques generally have the worse financial products.
These organizations generally suffer from poor ethics and are not focused customer wellbeing. Wells Fargo and Washington Mutual Bank are two excellent examples.
9) Don't buy things you do not understand. Ask questions and compare what you are consider to the best possible sources of information you can find.
10) Invest the majority of your long term money in ownership vehicles with appreciation potential. such as stocks, bonds, real estate or businesses.
If you hold your money in low yield bonds or bank accounts, you are simply lending your money to others and will likely earn a substandard return.
11) Avoid making financial decisions based on emotion. For example if you sell your stocks after a major crash, you may miss key buying opportunities.
Be especially careful when making major financial decisions after life changes like a divorce, job loss or death in the family.
12) Make investing decisions based on your needs and long term fundamentals of what you are buying.
Ignore financial advice offers by the financial media - nobody can predict the future. Don't make impulsive decisions based on news headlines.
13) Own your home. In the long run, owning is far more cost and tax efficient than renting.
Unless you have a rent controlled or significantly under market rental apartment, it’s better to own.
If you do make an offer on a place be sure you can rent it profitably if you need to move.
14) Purchase insurance to cover catastrophes only. Don't buy insurance to cover small losses.
15) If you are married, take time to engage with your husband/wife. Be accepting of your partners values around money.
Learn to compromise without compromising yourself and your values and manage as a team.
16) Prepare for life changes. Childbirth, death, marital change are inevitability in many people’s lives.
The more you live within your means and prepare for life changes, the better off you will be financially and emotionally.
17) Expose yourself to good quality information. Read publications that have high quality standards and aren't afraid to recommend what is your best interests.
Listen to thinkers and investors who have strong track records of building wealth.
18) Keep track of your money. Do draw up a budget and track your net worth. Budgeting will allow you to plan, organize and understand where your cash is going.
Keeping a net worth tracker will allow you to track how financially secure you are.
19) Maintain an emergency or savings fund. Life happens. Cars need maintenance, children need medical care and appliances break.
You'll want a reserve of cash to both cover these opportunities as well as take advance of any market or investment opportunities that come your way.
20) Choose yourself first. Prioritize your financial goals and start working towards them. Be patient.
Focus on your accomplishments and learn from your past mistakes. Invest in yourself (your education, your health and your relationships).
21) Never abdicate control of your money. Don't give it anyone. Not your spouse, not your children, your family or your financial advisor.
Work in partnership with your family and specialists you choose to hire. Don't let them take control.
Here are some things he says, which are good solid pieces of advice that merit publication here in the forums.
I have also added some ideas which I think are good enough for Saving Advice community.
1) Take charge of your finances. Procrastination or sticking your head in the sand is detrimental to your long term financial health.
Don't wait for an issue to crop up. Be proactive and take action today.
2) Don't buy items that loose value over time on credit. This includes cars, vacations, clothing, furniture or chattel.
Only use debt to buy things which will increase in value over time or which provide long term value. This is good quality real estate, stocks, education or a business.
3) Don't carry debt on a credit card. Credit cards charge usurious interest rates - between 20% and 100% percent once all fees are factored in.
If you are challenged with credit card debt, get rid of them and go to debit cards or cash.
4) Live within your means. If you try to keep up your richer peers you might engage in borrowing to fund conspicuous consumption.
This is a pattern of behavior engaged in by poorly educated or low net worth populations.
5) Save and invest at least 5 to 10% of your income. Save more than 5% to 10% if at all possible.
The more you save the more you'll be able to invest, the more economic security you'll have and the more psychologically empowered you will be.
Do use retirement savings accounts like 401ks/403bs or IRSs to minimize your tax burden.
6) Understand and use employee benefits. If you are self-employed, find the best insurance and investment options available to you and use those.
7) Research before you buy. Never choose a financial product based on an advertisement or a salespersons recommendation.
They may try to sell you a high fee product or a product that is not right for your risk tolerance.
8) Avoid financial products that have a high fees/commissions/expenses. Companies which sell these products through aggressive sales techniques generally have the worse financial products.
These organizations generally suffer from poor ethics and are not focused customer wellbeing. Wells Fargo and Washington Mutual Bank are two excellent examples.
9) Don't buy things you do not understand. Ask questions and compare what you are consider to the best possible sources of information you can find.
10) Invest the majority of your long term money in ownership vehicles with appreciation potential. such as stocks, bonds, real estate or businesses.
If you hold your money in low yield bonds or bank accounts, you are simply lending your money to others and will likely earn a substandard return.
11) Avoid making financial decisions based on emotion. For example if you sell your stocks after a major crash, you may miss key buying opportunities.
Be especially careful when making major financial decisions after life changes like a divorce, job loss or death in the family.
12) Make investing decisions based on your needs and long term fundamentals of what you are buying.
Ignore financial advice offers by the financial media - nobody can predict the future. Don't make impulsive decisions based on news headlines.
13) Own your home. In the long run, owning is far more cost and tax efficient than renting.
Unless you have a rent controlled or significantly under market rental apartment, it’s better to own.
If you do make an offer on a place be sure you can rent it profitably if you need to move.
14) Purchase insurance to cover catastrophes only. Don't buy insurance to cover small losses.
15) If you are married, take time to engage with your husband/wife. Be accepting of your partners values around money.
Learn to compromise without compromising yourself and your values and manage as a team.
16) Prepare for life changes. Childbirth, death, marital change are inevitability in many people’s lives.
The more you live within your means and prepare for life changes, the better off you will be financially and emotionally.
17) Expose yourself to good quality information. Read publications that have high quality standards and aren't afraid to recommend what is your best interests.
Listen to thinkers and investors who have strong track records of building wealth.
18) Keep track of your money. Do draw up a budget and track your net worth. Budgeting will allow you to plan, organize and understand where your cash is going.
Keeping a net worth tracker will allow you to track how financially secure you are.
19) Maintain an emergency or savings fund. Life happens. Cars need maintenance, children need medical care and appliances break.
You'll want a reserve of cash to both cover these opportunities as well as take advance of any market or investment opportunities that come your way.
20) Choose yourself first. Prioritize your financial goals and start working towards them. Be patient.
Focus on your accomplishments and learn from your past mistakes. Invest in yourself (your education, your health and your relationships).
21) Never abdicate control of your money. Don't give it anyone. Not your spouse, not your children, your family or your financial advisor.
Work in partnership with your family and specialists you choose to hire. Don't let them take control.
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