This is a guest post by MoneyCone who teaches personal finance and investing via his HOWTO blog.
Invest In Your Health
Would you like to be a bed-ridden billionaire or someone with a healthy and an able body who has a shot at becoming a billionaire? No matter how much money you make, if you are in poor health, it is worthless. Would you give pay to give up a few years of your life? That's exactly what you do if you smoke! Invest in your health, drop that addiction!
Spend Less Than You Earn
This simple rule can mean freedom from debt-slavery. Do you know why developing countries like China, India and South Korea have such a high savings rate? These countries embraced the credit card culture very late compared to the US or Canada. Spending less than what you earn was the only option before credit cards were introduced. If you wanted that TV, you had to save for it!
Save!
The younger you are the more you should be able to save! Remember, once you retire, your options are very limited. You can't get hired easily nor will anyone be willing to lend you money! But when you are young, you can skip a meal, find a second job or live without a car! Save when you can!
Protect Your Savings!
Saving money isn't enough. How you save matters too! If you keep money under your mattress, you are losing money due to inflation. You should have funds that are liquid, funds that are saved up for the near future and long term savings that are meant for your retirement. Know the difference, explore your options. Liquidity and savings term are inversely proportional!
Invest Prudently
Long term, one of the best ways to beat inflation is to invest in the stock market. But the key here is to invest for the long term with a diversified portfolio. After 20 years the Japanese economy hasn't recovered yet! Be aware of opportunities outside your country. Educate yourself. Have a good asset mix and invest for the long term.
Use Credit Wisely
If you can lead a debt-free life, that is nirvana! But otherwise, there are some instances where taking on some debt becomes a necessity. Home and education require a considerable amount of money. Use your power to borrow, wisely.
Explore Frugality
Being frugal is not being cheap. Being frugal is living a simpler lifestyle knowing well that you can lead a more luxurious life if you wanted to, but choose not to. Warren Buffett, one of the richest men on this planet lives in a house he bought for $31,500 and drives a Cadillac. He could buy the richest house in Malibu and drive a Bugatti if he chose to, but I guess he is content knowing that he can! That is being frugal.
If you like the site, please subscribe for free email updates.
Your support will ensure that I can continue to provide top quality free content.
Great list. You summed it up quite nicely. I would add living green to this. Mother nature is important too. Serenity will happen when you know you are doing your part to protect her.
March 16, 2011 @ 2:42 pmThanks for submitting this guest post MoneyCone. I couldn't agree with the first point more. As a person who already has a lifelong disease at a relatively young age, I know first hand how valuable your health can be. Protect that with all you have because without it you have nothing!
March 16, 2011 @ 9:49 pm@Miss T. Very true! Putting our planet in peril is no way to reach the top.
@SavingMentor. Health is something we all take for granted. Good health is the most important asset of all!
March 17, 2011 @ 8:22 amAgree with all of the above and Miss T's comment about living green too.
That picture is beautiful by the way. Makes me miss fall.
March 18, 2011 @ 2:41 am@youngandthrifty: I do too!
March 18, 2011 @ 8:25 amSpending on your health is the best investment you can make.
April 25, 2011 @ 2:21 amPost new comment