4 ms·
Reminds me of https://web.archive.org/web/20171023045242/http://www.samefacts.com/2013/04/everything-else/advice-to-alex-m/ https://web.archive.org/web/20171023
by nattaylor 8y ago
Reminds me of https://web.archive.org/web/20171023045242/http://www.samefacts.com/2013/04/everything-else/advice-to-alex-m/ https://web.archive.org/web/20171023045242/http://www.samefa...
"What is this simple free best personal finance advice that fits on a 3×5 card? "
* Max your 401k (or equivalent)
* Buy low fee, diversified whole market funds
* Never buy or sell individual stocks
* Save 20% of your money
* Pay your credit card balance in full every month
* Maximize tax-advantaged savings vehicles like Roth, SEP & 529
* Pay attention to fees and avoid active management
* Make financial advisors commit to a fiduciary standard (or fee-only!)
* Promote social insurance programs to help people when things go wrong
- taneq 8y agoTranslation: Earn at least 30% more than all your expenses combined, after tax.
- war1025 8y agoCurious where you got the 30% from out of that? Where does the extra 10% come from on top of the "Save 20%" bit?
- taneq 8y agoIf you're saving 20% of your earnings, then that's 25% of the remaining 80% (which is assumed to be expenses). I estimated another 5% for the miscellaneous other stuff like buying shares, maxing 401(k), paying financial advisers etc. If all of that was meant to come out of the original "save 20%" then call it 25% (of expenses) rather than 30%.
- war1025 8y agoAh. You're just flipping around what the percentages are based off. Makes sense I suppose. Neat.