All Financial Wisdom
Good Advice in 4 Words
The twitter hashtag #GoodAdvicein4Words got me thinking. I would say the best financial advice in 4 works would be "Save Money, Invest Responsibly."
The first part, "Save Money" is critical. Your income should always be greater than your expenses. If that is the case, you should be heading in the right direction. Always know, you can increase your income, or decrease your expenses. You don't always have to cut out the fun in life, too. Save for vacations, luxuries, and treats into your expenses and adjust from there. Enjoyment and comfort is an important part of life. Be sure to factor that in as well.
After saving some money, you should invest. However, you should invest into something you understand and trust. Throwing money at a money manager or a financial adviser isn't wise. Expense ratios, improper asset allocations, or general mismanagement might plague your returns. Investing your time and money into some books or classes into these subjects are wise investments too. If a book costs, $20 and ends up saving you $100/year, you'll be happy. Most likely, the return from your energy researching these topics will return more.
What's your #GoodAdvicein4Words?