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Simple Financial Rules That Will Benefit You
By Motley Fool Staff - March 27, 2014
http://www.fool.sg/2014/03/27/simple-financial-rules-that-will-benefit-you/
There are 56,956 personal finance books on Amazon.com. In aggregate, they contain more than 3 billion words. This seems absurd, because 99% of personal finance can be summarized in nine words: Work a lot, spend a little, invest the difference. Master that, and the other 2.999 billion words are filler.
The most important finance topics don’t require details. Most can be, and should be, summarized in a sentence or two.
Here are some:
1. Dollar-cost average for your entire life and you’ll beat almost everyone who doesn’t.
2. Only invest in products and companies you can explain to a six-year old.
3. Every five to seven years, people forget that recessions occur every five to seven years.
4. You’re twice as biased as you think you are (four times if you disagree with that statement).
5. Read more books and fewer articles. ( Read more... )
19. You have no obligation to have an opinion about anything.
20. You have a strict obligation to not have an opinion about things you don’t understand.
( Read more... )
By Motley Fool Staff - March 27, 2014
http://www.fool.sg/2014/03/27/simple-financial-rules-that-will-benefit-you/
There are 56,956 personal finance books on Amazon.com. In aggregate, they contain more than 3 billion words. This seems absurd, because 99% of personal finance can be summarized in nine words: Work a lot, spend a little, invest the difference. Master that, and the other 2.999 billion words are filler.
The most important finance topics don’t require details. Most can be, and should be, summarized in a sentence or two.
Here are some:
1. Dollar-cost average for your entire life and you’ll beat almost everyone who doesn’t.
2. Only invest in products and companies you can explain to a six-year old.
3. Every five to seven years, people forget that recessions occur every five to seven years.
4. You’re twice as biased as you think you are (four times if you disagree with that statement).
5. Read more books and fewer articles. ( Read more... )
19. You have no obligation to have an opinion about anything.
20. You have a strict obligation to not have an opinion about things you don’t understand.
( Read more... )
