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Save For a Rainy Day and Avoid the Pitfalls of Voluntary Servitude

Posted by Jim on Nov 10th, 2012 · 1 Comment

Debt has become such a given in our culture that many of us take large amounts of it on without giving it a second thought. We Americans are born optimists, and we often buy now and plan to pay later, when we have advanced in our company and our paycheck is a little fatter. We no longer save for a rainy day; we buy in anticipation of many sunny days. Despite the nationwide slowdown in consumer spending,...
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Here are some simple guidelines that will help you build wealth:

1) Do the math. Get a budget and calculate your net worth

2) Get an emergency fund. Save at least 6 months worth of expenses

3) Limit costs. Spend no more than 30% of your income on housing

4) Max your retirement. Maximize contributions to your tax-deferred retirement accounts

5) Pay yourself first. Set aside money for yourself before you take care of your other bills

6) Set goals. Goal let you get ahead faster

7) Avoid high interest debt. Avoid credit cards, title loans and other usurious loans

8) Diversify. Diversity your assets.

Save For a Rainy Day and Avoid the Pitfalls of Voluntary Servitude

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Critical Financials’ Basic Personal Finance Rules

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