Great stuff from StreetTalklive – Lance Roberts…
Here are of the major guidelines:
1) Separate WANTS from NEEDS.
2) Live on 60-70% of what you make.
3) Get rid of credit cards and live on cash.
4) If you can’t pay for it with cash – you can’t afford it.
5) With interest rates as low as they are – mortgage debt is okay as long as your monthly payment, taxes and interest are not more than 25% of your income.
6) Use a service to track expenses real time (www.mint.com)
7) Fully fund your 401k or retirement plan first.
8) Keep 6 months of salary in CASH for emergencies.
9) You are a SAVER not an INVESTOR. You can’t afford to lose money in the markets.
10) Paying for kids college is great – as long as it doesn’t detract from your own savings goals.
11) You only get one shot to save up for retirement – don’t **** it up.