For the past two weeks I've scoured over hundreds of blog posts, listened to hours worth of podcasts and sermons, read and reread multiple books, and had many conversations with friends and family on financial strategies.
In all the books I read I've reached these simple conclusions:
1. Stay out of debt.
2. Spend less than you earn.
3. Save/invest for the future.
Here are some other little tidbits…
A. Invest at least 10% of your earnings into no-load mutual fund or S&P index-tracking stock. (I personally own FFFFX through Fidelity and VFINX through Vanguard.)
B. Max out your Roth IRA first and then work on maxing your 401k. ($4k contribution limit for the IRA and $15k limit for the 401k)
C. Pay off your debt starting with the debt that has the highest interest rate you have. e.g. Credit cards usually have the highest interest rates.
After you've done those things then I would really encourage you to read these books if you're looking for a healthier financial life: The Automatic Millionaire, The Richest Man in Babylon, Wealth Without Risk, Winning The Loser's Game, and The Wealthy Barber.
And please by all means check out some of these posts and podcasts:
Mint - Graduated?
Mint - Reduce Your Expenses
Money Guy - Your Retirement Options
Money Guy - Podcast Episodes
{ 5 comments… read them below or add one }
I am almost done with The Richest Man in Babylon. This is now one of my favorite books on personal finance. A really good layout of fundamentals that are simple and easy to live by. I wonder why this information isn’t mandatory in high schools.
I’ll do the 450 min nation plan…it’s the same thing I have with Verizon…and I’ll probably add a text package. I have to wait until September, though, or Verizon will charge me $175 to break my contract, which is ridiculous…
Noah- I’m in complete agreement with you. My grandfather gave me the book when I was in 6th grade. I wish I would have stuck to the principles since then…
When is Mint going to be done???? I wait eagerly for its release.
We are working hard to get the priority beta out this month or so…
Everyone in the office is working hard while I am commenting on blogs;)
this is what husbands are for.
i can’t believe i just said that.
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