What's the Best Money Advice You've Ever Received?

US News lists thoughts from several bloggers on the best money advice they've ever received.

I thought I'd join this party and add my thoughts as well as ask you yours.

I think the best advice I ever received was from the book The Millionaire Next Door: The Surprising Secrets of America's Wealthy.

The book lists seven common denominators among those who successfully build wealth but the ones that stood out to me were:

• They live well below their means.
• They allocate their time, energy, and money efficiently, in ways conducive to building wealth.
• They believe that financial independence is more important than displaying high social status.

I took this advice, applied it over a couple decades, and the rest is history.

I'd also list the advice in The Richest Man in Babylon as very solid -- maybe even better than The Millionaire Next Door. Their seven cures for a lean purse are spot on! But I didn't read this book until well after TMND, so that's why it's listed as second. :)

So how about you? What's the best money advice you've ever received?

Comments

[Chris]

Hi, I'm so glad that you included The Richest Man in Babylon. This is what first inspired me to save.
Thanks for the great site.
Do you have any articles on household budgeting?

[FMF]

Yes, I have a whole category on budgeting here:

http://www.freemoneyfinance.com/budgeting/