It would be fantastic idea if the financial planning is being reduced to a fewer words. Definitely, a list containing fewer words addressing a wide range of issues related to personal finance would be easy going. Someone has done it.
The person who has compiled the list under ‘Everything you need to know about money’ restricted his advice to fewer words. The person is Scott Adams, the famous creator of Dilbert. Well, the cartoonist has a background of economics and its functions, as he is an MBA from the University of California at Berkley.
Following is the list containing advice from Scott Adams on personal finance:
1. Make a will.
2. Pay off your credit cards.
3. Get term life insurance if you have a family to support.
4. Fund your 401(k) to the maximum.
5. Fund your IRA to the maximum.
6. Buy a house if you want to live in a house and you can afford it.
7. Put six months’ expenses in a money market fund.
8. Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement.
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Scott Adams' common sense advice on personal finance
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on Check history before you buy... very nice advice dude, thanks. i’ll think about it.
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on Avoid Investing In Banks I would like to thank you fro sharing these thoughts. These days we are experiencing...
on Siemens' chairman resigns... That’s right. face the same problem. but that is the goodthing to do.
on Siemens' chairman resigns... well i think all country facing the same problem about corruption. Hope this never happen...
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Comments
This is a great list, and should be followed by everyone. Razib is right that many American’s don’t follow this advice, even if they know that it would benefit them greatly in the end.
However, with the economy tanking, I wouldn’t be surprised if more Americans started taking these steps to save and invest. I know lots of people who have started putting more money into their savings rather than spend it on luxuries that they can easily live without.