Good Personal Financial Strategies
Filed in: Life Log — March 15th, 2007
Beside busy working for money, I think everyone should learn about personal financing. I stumbled upon to a blog post at MyMint.com, “Personal Finance Interview with Aaron Patzer of MyMint.com“. Aaron Patzer shared his personal financial strategies, which I agree very much.
- Spend less than you earn — sounds like nonsense but it is a golden rule. You shouldn’t spend more than you are earning.
- Pay off all credit cards in full every month — don’t let the card issuer charge you for high fee. Or, use a debit card.
- “Make your money work for you” — do investment with the money you saved. Aaron Patzer invest most in index and mutual funds. “Individual stocks vary too wildly, and being a busy CEO, it’s too difficult to keep up with all the relevant news/developments with any one company.”, he said.
- Plan for the unexpected — you never know what things will happen later. Prepare a good sum of amount in savings just in case. Aaron Patzer keeps a 3 month expenses.
Best Financial Tip
Aaron Patzer’s best financial tip is “Put 10% of your earnings straight into a stock index fund.”
You’ll never see it in your bank account so you won’t miss it, and within 10 years, you’ll be seriously rich. If you actually do this one thing, I guarantee you’ll soon be (financially) ahead of 99% of the people in the world.
The worst financial move ever is “buying individual stocks, and then neglecting them.”
LiewCF’s Personal Financial Strategies
I am doing what Aaron Patzer suggested. My current daily expenses is far lower than my online earning. I do not have any credit card but a PB debit card. I am investing three different funds from high risk(high return) to low risk(low return), and add few hundred ringgit to each fund every month. I don’t need to support my family living, my current bank saving is enough for a year or more.
How about your personal financial strategies? Please share with us. 
