Money Central has an article on the best financial advice ever. It's a compilation of personal finance advice from readers as well as well-known personalities. Here are their words of wisdom along with my comments:
"No matter how much or how little you make, always save a little bit."
"Paying yourself first" is one key to a solid financial future, though I recommend paying yourself second.
"Save hard for the first 10 years of your married life."
I've never heard this advice stated this way, but I believe its main message is to save early in life and let the power of compounding make you wealthy.
"Know the difference between needs and wants."
This is a good one -- it's the key to spending less than you earn (which is my personal best piece of financial advice.)
"Think of the true cost."
Whenever you buy something, there are usually additional costs involved -- maintenance, replacement parts and on-going expenses of some sort. Many people only consider the initial cost and (maybe) a small portion of the subsequent costs.
The biggest area where people misjudge the true cost is in the area of pets.
"Buy quality."
I usually check Consumer Reports and buy the best item I can get for the money. When I don't do this, something bad usually happens.
"If your outgo exceeds your income, your upkeep will be your downfall."
Another vote for spending less than you earn.
"Don't pay interest on anything that loses value."
Like a car. Ouch.
"Don't co-sign a loan."
Unless you want to pay it all off. That's what you're saying you'll do when you co-sign a loan.
"If you need more money, then go out and make more money."
I'm currently thinking a lot about this lately. Here are some money making ideas for those of you who can't wait for me to share some ideas over the coming weeks.
One final thought and announcement: Almost a couple years ago, I posted pieces that listed The Best Financial Advice I Can Give (a list of suggestions by top money experts) and Best Advice I Can Give -- Blogger Edition (a similar list from money bloggers.) There are lots of good suggestions in these posts if you want more "best" tips. Also, if you're a blogger who wants to share his/her "best" advice on Free Money Finance, email me your best tip in 1-3 paragraphs and if I like it, I'll post it (along with a link back to your site.) If you're not a blogger but still have a great tip, you can send it to me as well.
Comments