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With A Downturn In The Business Cycle, Gresham’s Law Proves More Emphasis on Quality

Posted by Jim on Nov 29th, 2012 · 0 Comment

Sir Thomas Gresham advised the English royalty on economic matters in the 16th Century and helped the crown to stabilize the value of its money by arguing for the usage of less precious metal in the manufacture of coins. He reportedly uttered what is now known as “Gresham’s Law” that “bad money drives out good,” that is, that when people begin to use newly minted coins—whatever their real...
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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.

With A Downturn In The Business Cycle, Gresham’s Law Proves More Emphasis on Quality

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