January 5, 2009
Lessons on personal finance?
Hi. I am going to get married soon and want/need to play a role regarding personal finances. I really want to be smart with our money: investments, budgeting, and whatever else. Don’t want to leave my husband to do handle everything. Plus, I think he would welcome me stepping in, because he’s just too busy.
I just don’t know much about personal financing, however, except for key dont’s. Like don’t get into credit card debt. Don’t go for adjustable rate loans on a house. Don’t live beyond your means.
Could you recommend some good resources for me to learn how to start thinking about money? Are there some good online courses, or just some personal advice/tips you have? I would appreciate your input. Many thanks.
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Comments on Lessons on personal finance?
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dave ramsey
There are many great resources out there. is a great start to learn the basics. Suze Orman has some books and has articles you can read on Yahoo Finance.
Here are some of the things that I do:
1. Contribute to a 401k up to the amount of the employer match.
2. Contribute as much as you can to a Roth IRA. Index Funds only!! 80 to 90% of actively managed mutual funds don’t out perform the S&P 500.
3. Never buy mutual funds that have a front or back load. Buy Index Funds Only!
4. Never buy whole life insurance…buy Term. You can buy so much more coverage. If you save properly, your need for life insurance should decrease as you should be able to eventually live off your savings.
5. Have about 6 months worth of expenses saved in an emergency fund.
6. Buy disability insurance.
7. Be consistent!! Treat savings like a bill.
8. Don’t create a budget!! They don’t work. Most people try to do “Saving = Earnings – Spending”. That never works.
Try “Spending = Earnings – Savings”. Once you have your savings out of the way…have fun spending what ever is left.
Best of luck!
You should go to your local library and check out some books on personal finance. Once you’ve read a few, you’ll start to get an idea of what is great advice, what is good advice, and what is nonsense.
Also, it gives you examples of strategies that might suit you. For instance, if you’re a bad saver, you might find it easier to have your boss put part of your pay into another bank account so you don’t spend it.
There is heaps of stuff online. Check out the Yahoo! Finance site.
Best wishes
I would suggest you read The Total Money MakeOver by Dave Ramsey. This is all you will need, if you live by his book you will do great.
In the meantime you can also check out my blog. I provide all kinds of detailed information about how to live in a financially responsible manner and how to achieve personal financial freedom.
I hope this helps!