What are the ten most important things about personal finance that someone without a finance background must know?
Most of these I already “knew”, but had to learn the hard way.
1. Compound interest
3. Remember to pay yourself
4. Most credit counseling programs are a scam
5. Pay cash whenever possible
There are plenty of times when this is not ideal. But i believe the general principle is sound.
6. Making payments (like credit cards) for consumable or perishable goods is not good.
Are you still paying off that fancy dinner 3 months later. Do you even remember what it tasted like.
7. Don’t be afraid to invest in quality products
8. You don’t have to be the first owner…..
Or the last.one. There is often value in purchasing 2nd hand goods. And selling things you no longer want or need is a source of extra income
9. Start early.
Whether it is investing, saving, working, or budgeting; the sooner you start the further ahead you will end up.
10. Another benefit of paying cash.
Is saving your change. Not only do I find coinage interesting, by throwing those coins in a jar I’m saving a percent of every purchase.
11. While bankruptcy should be avoided….
It is not insurmountable. Don’t give up hope and don’t repeat the steps that got you there.