- MAX your 401(k) or equivalent employee contribution.
- Buy inexpensive, well-diversified mutual funds. Pay attention to fees. Avoid actively-managed funds.
- Never buy or sell an individual security. The person on the other side of the table knows more than you do about their stuff.
- Save 20 percent of your money.
- Pay your credit card balance in full every month.
- Maximize tax-advantaged savings vehicles like ROTH, SEP, and 529 accounts.
- Know how you spend your money (budget and tracking) and never spend more money than you make.
- Carry enough insurance to provide for your reasonable needs and cover reasonably probable risks.
Adapted from the article “Everything you need to know about finances on a 4×6 index card.”
Continue reading at the original source →