Gweedo
07-02-2007, 03:33 PM
These are rules to live by. :deal: Click the link for more detail on each item.
Nice summary of personal finance principals and easy to remember “rules.”:
http://articles.moneycentral.msn.com/SavingandDebt/Advice/16FavoriteMoneyRulesOfThumb.aspx?page=all
* Retirement, Part I: "Save 10% for basics, 15% for comfort, 20% to escape.”
* Retirement, Part II: "Retirement money is for retirement; until then, keep your mitts off it."
* Student loans: "Your total borrowing shouldn't exceed what you expect to make your first year out of school."
* College savings: "Saving for retirement is more important, but try to put at least $25 a month per kid in a college savings plan."
* Cars, Part I: "Buy used and drive it for at least 10 years."
* Cars, Part II: "If you must borrow to buy a car, follow the 20/4/10 rule."
* Cars, Part III: "To compute and compare the real monthly cost to buy, insure and operate a car, double the price tag and divide by 60."
* Credit cards: "If you carry a balance, look for the lowest rate. If you don't, get rewards at least equal to 1.5% of what you spend."
* Debt repayment: "Pay off maxed-out cards first."
* Financial flexibility: "You need to be able to get your hands on cash or credit equal to three months' worth of expenses."
* Insurance: "Cover yourself for catastrophic expenses, not the stuff you can cover out of pocket."
* Life insurance: "Those who need it typically need five to 10 times their income."
* Mortgages, Part I. "If you can't afford to buy the house using a 30-year fixed-rate mortgage, you can't afford the house."
* Mortgages, Part II. "Fix the rate for at least as long as you plan to be in the home."
* Mortgages, Part III: "You almost certainly have better things to do with your money than prepay a low-rate, deductible mortgage."
* Priorities: "Retirement, then credit cards, then emergency fund."
Nice summary of personal finance principals and easy to remember “rules.”:
http://articles.moneycentral.msn.com/SavingandDebt/Advice/16FavoriteMoneyRulesOfThumb.aspx?page=all
* Retirement, Part I: "Save 10% for basics, 15% for comfort, 20% to escape.”
* Retirement, Part II: "Retirement money is for retirement; until then, keep your mitts off it."
* Student loans: "Your total borrowing shouldn't exceed what you expect to make your first year out of school."
* College savings: "Saving for retirement is more important, but try to put at least $25 a month per kid in a college savings plan."
* Cars, Part I: "Buy used and drive it for at least 10 years."
* Cars, Part II: "If you must borrow to buy a car, follow the 20/4/10 rule."
* Cars, Part III: "To compute and compare the real monthly cost to buy, insure and operate a car, double the price tag and divide by 60."
* Credit cards: "If you carry a balance, look for the lowest rate. If you don't, get rewards at least equal to 1.5% of what you spend."
* Debt repayment: "Pay off maxed-out cards first."
* Financial flexibility: "You need to be able to get your hands on cash or credit equal to three months' worth of expenses."
* Insurance: "Cover yourself for catastrophic expenses, not the stuff you can cover out of pocket."
* Life insurance: "Those who need it typically need five to 10 times their income."
* Mortgages, Part I. "If you can't afford to buy the house using a 30-year fixed-rate mortgage, you can't afford the house."
* Mortgages, Part II. "Fix the rate for at least as long as you plan to be in the home."
* Mortgages, Part III: "You almost certainly have better things to do with your money than prepay a low-rate, deductible mortgage."
* Priorities: "Retirement, then credit cards, then emergency fund."