About: Mint.com presents timeless personal finance advice; their three principles of personal finance. Write this down on your refrigerator:
- Spend less than you earn
- Make your money work for you
- Protect your money
This is advise that everyone should live by!
Spend less than you earn – I’d take that a step further: pay yourself first. Put as much into your investment accounts as you can every single pay period. Make it painless by using direct deposit.
Make you money work for you – Invest your money wisely. As you know, we are big fans of index investing for those who have no interest in closely monitoring their portfolios. Pick a small handful of broad, diverse index funds and rebalance periodically. As a reminder, we have a free asset allocation spreadsheet to make the rebalancing process easy. To get your copy, simple sign up for out newsletter.
Protect your money – yes, you should definitely have some cash available for emergencies. The typical rule-of-thumb here is to keep six months’ worth of expenses available in cash.
Again, put these three principles on your fridge (or anyplace that you’ll see all the time) as a daily reminder of how you ought to manage your personal finances.