Thursday, December 6, 2018

60 Simple Rules of Personal Finance

Dec. 6, 2018

Introduction


Here is the article's link called 60 simple rules of personal finance. I will share my story based on some of them. In order to push myself to master personal finance, I have to spend more time to read, think, and reexamine my history and then figure out how to fix problems.

My favorite advice


#19 – Build strong relationships with your neighbors

A neighbor is a person that you can borrow something from instead of having to go to the store. A neighbor is a person who can keep an eye on your property while you’re away. A neighbor is a person who can make an ordinary dinner into an effortless social occasion without any additional cost. A neighbor can be an endless source of useful advice about the local area. Get to know your neighbors and build a relationship with them. Offer to help your neighbors whenever you can – and ask them for help sometimes, too. You’ll build a relationship that will offer tons of value to both of you.

#24 – Invest most of your money in stocks – and hold on no matter what happens

Not sure how to invest your money? Unless your goal is a short-term one – less than 10 years until you empty it out – you should have most of your money in stocks because, over the long term, they tend to offer very good returns. The problem with stocks is that they tend to be very volatile, with lots of short-term jumps and falls in value. Hold on and be patient; better yet, just don’t look at the value of your investments if they’re far down the road.

#26 – Don’t bother with individual stocks

Individual stock investing is a fool’s game. In order to do it well, it requires a ton of research and a lot of attention, and even then it comes with a lot of risk. Unless you get significant enjoyment out of it and are investing with money that you won’t need in the future, I strongly encourage you to avoid investing in individual stocks.

#37 – Don’t worry about what other people think

Don’t choose a car to impress other people. Don’t choose clothes to impress other people. Don’t choose gadgets to impress other people. Why? Because it won’t really impress them. The only thing that will impress someone about you is you. It’s about how you carry yourself, what ideas you bring to the table, and how you listen and respond to others. Don’t spend a dime on the other stuff.

#38 – Don’t worry about how other people spend their money, either

If you see someone driving an expensive car, don’t use that as an excuse to feel jealous or to tell yourself that you, too, need an expensive car. You don’t. Just because other people choose to buy things or eat at certain restaurants or whatever else people in your life choose to do with their money does not mean you need to do it too. Make choices and spend money on things that build up the things you care about, not the things other people care about.

#39 – Put in the time to build good, strong, lasting relationships

Having a life full of strong personal and professional relationships will serve you well in every aspect of your life for the rest of your life. The people in your life provide emotional, social, professional, spiritual, mental, and, yes, financial support for almost anything you might want to do. Put in the time and effort to build strong relationships by helping others, listening to what they’re saying, offering support, and being involved with the community.

#40 – Review your finances, your career, and your life once a week

This may seem overly simple, but it has brought about countless transformations in my life. Once a week, I spend an hour reviewing the week that has gone by as well as thinking ahead to the week that is to come and my long term goals.
Am I doing things that are in line with those goals? What are the best things I did this week in terms of where I want to be going? What were the worst things, and why did I do them? How can I avoid doing them in the future? Am I still happy with my big goals? Spend real time thinking about those things every week and you’ll feel a positive transformation in your day to day life.

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