21 Best Money Tips Ever

CNN Money lists what they call the 21 best money tips ever. They asked "some of the nation's leading business owners, investors, and thinkers" to "share their thoughts on rebuilding your wealth." Here are some of the highlights IMO:

• Jane Bryant Quinn - "Pay off your mortgage before you retire if you want financial safety and security. There is bankruptcy among people in their seventies and eighties who had a lot of debt that they couldn't carry when the paychecks stopped."
• Jack Bogle - "Your bond position should be commensurate with your age. In my case that means I have more than 80% in bonds. Someone in their fifties should consider 50%."
• Liz Ann Sonders - "One thing I see with our clients and individual investors is an aversion to risk, and a favoring of fixed-income funds and Treasuries. In the past 20 years, we've been in an environment that's been good to bonds relative to stocks. But it's rare for that to happen over an extended period -- and the last two times it happened, the subsequent five-year period favored stocks."
• John Challenger - "Become deeply engaged in civic, professional, and educational organizations that matter to you. And constantly build new relationships with people through these affiliations."
• John Schnatter - "Live below your means and be frugal. The economy is going to get worse before it gets better. And folks who have savings have the best chance of getting through this."

It's some decent stuff (especially John Schnatter's advice -- now I know why I like Papa John's pizza so much!), but personally I think this advice is much better. ;-)

I LOVE "best advice" sorts of pieces, and if you do too, check out this round-up of all sorts of "best" articles. In particular, look over the best money advice bloggers could offer -- collected and posted by me almost five years ago. Think their advice still holds true?

Comments

[Josh Stein]

I'm partial to Pizza Hut myself.

[Old Limey]

Here's some of my money saving tips.
1) Decide on your education goals early on and work hard and diligently to meet them.
2) Get your career right the first time and stick with it.
3) Get your permanent relationship right the first time and be faithful - that can save a real bundle over a lifetime.
4) Marry a saver and not a spender.
5) Learn about investing rather than trusting it to others, design a fiancial plan, start investing as early as possible and make it a very high priority.
6) Live well within your means and encourage your spouse to do likewise.
7) Be the best employee you possibly can by being conscientious, diligent, and always striving for self improvement.
8) Avoid paying interest except for homes and cars.
9) Don't retire until you are debt free and have enough investments and income to maintain your lifestyle.
10) Avoid trying to keep up with the neighbors.

[BillV]

@old Limey
I second your list above; except. 1 and 2 are tricky, not everyone gets right the first time or three. Wish number 3 was easy but its not. But you are right. It can be costly and set you back.

[Darren]

That's some interesting advice from Jack Bogle. I've always heard that you should be allocated more heavily in bonds as you age, but I don't remember hearing about actual percentages.

My Roth is currently invested in a fund with a 10% bond allocation, so I may think about switching it into a few different funds.

I also read a book about early semi-retirement in which the idea is to live off the interest from a portfolio allocated to 40% stocks, 40% bonds, and 20% other miscellaneous categories. That might be another option worth considering.

[Money Reasons]

Hey, Papa John's has premium ingredients!!! Well, for the most part... It's a stable in our family, nice quick and cheap!

[George]

John Schnatter's advive is really no secret. And it is actually the best philosophy to follow in order to survive a crisis. But come to think of it, crisis or no crisis, it is always better to be frugal.

[Jo]

The post by Old Limey is excellent, but I would add to No.7 - try and become self-employed, start a small business and progress from there.

I have run several business - all successful - and consider this definitely the way to go. My last business is a money-saving site - www.save-money-guide.com

Thank you FMT for such an excellent site.