The Simple Rules Of Personal Finance
BOSTON (CBS) - Someone sent me a link to a website The Simple Dollar asking me what I thought. Founder, Trent Hamm, started The Simple Dollar in 2006 after going through what he termed as a complete financial meltdown.
The Simple Rules Of Personal Finance
After recovering financially he started a blog on personal finances. He writes from the Average Guy perspective. His blog was successful enough to be bought out by Soda, a media company.
So I spent a morning reading all of his old columns and came away impressed. Of course there was an immediate rapport because much of his advice is similar to what I have been espousing for years.
So I sent him an e-mail and asked if I could introduce him to my listeners? He said yes! The 60 Simple Rules are from a column he wrote in February. I would love to review all of them but won't have the time. You can connect directly with The Simple Dollar from our website here.
Some of his rules are great and some I would take issue with it. But they all seem to work for him.
Spend less than you earn. Sounds so very simple and for so many it seems impossible. But there are enough stories from folks who have gotten out from under credit card debt and have made a financial come back that there is hope. Start saving with your first paycheck.
Keep everything as simple as possible. The KISS principle works for most everything in life. Simplify. Cancel some of those credit cards; you don't need more than 2 or 3 at the most. If you are carrying credit card debt, consolidate. Roll over some of your investments. Less paperwork equals more time to spend on the important things in life, like your family and job.
Focus on building an emergency fund. Your #1 goal should be to have enough dollars set aside for an emergency. Unlike credit, cash is available in situations of credit problems or of identity theft. Start building an emergency fund by setting up an automatic transfer from your checking account to your savings.
One more thing: I end every one of my workshops with this simple bit of advice: Spend Less Than you Earn. I actually have this saying on the refrigerator as well!
