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The following has served me well, regardless of economic conditions. 0. Empower and partner with your spouse to make all the financial decisions. They should k
by vishnugupta 5y ago
The following has served me well, regardless of economic conditions.
0. Empower and partner with your spouse to make all the financial decisions. They should know absolutely everything. You can’t do it alone.
1. Zero debt. For a while I had house mortgage that I repaid at the first possible availability of bulk cash.
2. Max out tax saving investments. Try not to pay one penny more tax than absolute minimum.
3. Max out life insurance you can afford. Don’t combine life insurance with investment.
4. Buy good health insurance over and above employer provided.
5. Monthly investment in equity index fund.
6. Only when you are done with all the above spend whatever remains on your monthly expenses.
7. Don’t postpone making of a will.
- statictype 5y ago>3. Max out life insurance you can afford. Don’t combine life insurance with investment. Why not combine them?
- flaviut 5y agoWhen you combine them, you essentially get an investment product that's the same as investing in a diversified portfolio (because that's what the insurance company does with your money), but with a massive fee compared to the 0.05%-ish you'd be paying for that with a regular broker.
- zild3d 5y ago> 1. Zero debt. For a while I had house mortgage that I repaid at the first possible availability of bulk cash. Would disagree with zero debt being so high up in priority. Not all debt is equal. It's typically not worth it to pay debt back early if under ~3% interest rate. Credit card debt? Yes as soon as possible. Student loans or a mortgage around 2%-3% interest rate? You're better off investing that money to make 5%-8% on it