Join Early Retirement Today
Thread Tools Search this Thread Display Modes
A few "Thou shalts and Thou Shalt Nots" for you to consider
Old 03-19-2010, 03:22 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,972
A few "Thou shalts and Thou Shalt Nots" for you to consider

Nothing that new here for most of us LBYMers, but a nice list that would be difficult to argue with.

Thou shalt not live beyond thy means. Almost half of Americans reported having trouble keeping up with monthly expenses and bills, according to a 2009 survey on by FINRA Investor Education Foundation. Nearly one-quarter reported overdrawing their checking accounts. Know exactly how much money comes in, how much goes out and make those numbers match up. There are a million creative ways to budget, but start by tackling your biggest costs housing, autos (buy used, for cash), health insurance and for parents, child care. (Try this calculator to figure out if a second income is worth it after taxes, child care and other costs.)

Thou shalt set aside cash for emergencies. Only 49 percent of FINRA respondents reported that they had set aside funds sufficient to cover expenses for three months in case of sickness, job loss, economic downturn or other emergency.

Thou shalt not carry a revolving balance on thy credit card. According to the FINRA study, 51 percent of Americans have carried a balance from month to month resulting in interest charges; 29 percent made a minimum-only payment; and 23 percent were charged a fee for late payment. Thou shalt not get sucked into the debt-settlement trap.

Thou shalt not use a financial product without searching for the best deal. The FINRA survey found 63 percent don't shop around for credit cards, half don't shop around for auto loans, and a third don't shop around for mortgages.

Thou shalt save early and often for expensive goals. Only half of FINRA respondents had a retirement plan through an employer; 28 percent had another kind of savings plan. Only 41 percent of parents had saved anything for college.

Finally, thou shalt not be overconfident whilst demonstrating financial ineptitude. When asked how good they are at dealing with day-to-day financial matters, half of FINRA survey respondents with credit cards and checking accounts gave themselves the top score of 7. However, a quarter of these respondents separately indicated they engaged in behaviors that generate fees or high costs, such as using credit cards for cash advances, paying late payment or over-the-limit fees or overdrawing their checking accounts. Among those who gave themselves a score of 6, 40 percent engaged in these wealth-destroying behaviors.
Yahoo! Personal Finance: Calculators,Money Advice,Guides,& More

Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-19-2010, 06:51 PM   #2
Gumby's Avatar
Join Date: Apr 2006
Posts: 10,669
Regarding your last paragraph -- it has been my observation of life in general, not just financial matters, that there is often a negative correlation between confidence and competence.

Living an analog life in the Digital Age.
Gumby is offline   Reply With Quote
Old 03-20-2010, 02:50 AM   #3
Thinks s/he gets paid by the post
kyounge1956's Avatar
Join Date: Sep 2008
Posts: 2,171
VII. Thou shalt not invest in that which thou dost not understand, neither shalt thou sign that which thou hast not read.

VII. Thou shalt not invest all that thou hast in a single asset class.

IX. Thou shalt not cosign a loan.
kyounge1956 is offline   Reply With Quote
Old 03-20-2010, 08:44 AM   #4
Recycles dryer sheets
HsiaoChu's Avatar
Join Date: Feb 2010
Posts: 389
Saving for college for your kids is not a particularly good idea. The government loan programs(and only the very very wealthy can afford college without loans NOW) are not particularly helpful to parents who dutifully saved for their kids future.

The loans programs are most helpful to those parents who saved absolutely nothing.

Even state schools now cost $17000 a year and private schools are up to $40K +. How anyone but the very very well paid can afford to save even a small portion of the $160,000 necessary to put just one child through college without loans while starting out, buying a house, taking care of little kids, and saving for retirement ......IS BEYOND ME.

HsiaoChu is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Danny, Danny, where for art thou? My Dream Other topics 2 05-11-2009 10:52 AM
Mr. Marx, Wherefore Art Thou? haha Other topics 16 08-29-2008 10:09 AM
The other side of the "thou shalt not retire early" coin DblDoc Other topics 4 04-28-2008 10:59 PM
new jersey: thou shalt not kill lazygood4nothinbum Other topics 58 12-17-2007 07:56 PM
Oh brother, where art thou? MRGALT2U Other topics 8 06-04-2005 07:22 PM


All times are GMT -6. The time now is 04:10 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.