Free Ebook.

Enter your email address:

Delivered by FeedBurner

« Six Things Your Parents Never Taught You About Money | Main | Billshrink's New TV Pricing Service: A Good Idea, But a Cheesy Requirement »

June 13, 2010


Feed You can follow this conversation by subscribing to the comment feed for this post.

I agree. We are very fortunate to live in an economy where it is easy to invest. The hard part, for many people, is to pick a company from all of the great companies out there to invest in. I recommend investing in broad market ETFs and thereby investing in the entire market. By doing this you are getting funds to those companies that produce the goods and services that enhance the quality of living.

Investing well is critical. @DIY Investor is right, it is a mistake to try to pick individual companies to invest in. Stick to broad market ETFs or traditional indexed mutual funds for your equity investments.

Also, people often overlook the importance of investing in fixed income securities for their short term goals. If you're going to want to spend the money you're saving soon, don't put that money into equities.

As with the first 4 Pillars, I think it's hard to disagree.

Yes, living within your means is necessary. What you save needs to be put to use. Keeping it stashed under a mattress won't grow your funds; on the contrary, you will lose purchasing power. Investing, and earning an after-tax return that exceeds inflation, is the way to grow your nest egg.

Let me cite the seven Pillars of financial success:

1. Part of what you earn is yours to keep;

2. Delay your instant gratification;

3. Show integrity in all your financial affairs,

4. Earn more than you spend;

5. Pay yourself first;

6. Diversify your investments; and

7. Show gratitude to the God of the universe.

The comments to this entry are closed.

Start a Blog


  • Any information shared on Free Money Finance does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. All posts are © 2005-2012, Free Money Finance.