Thousands of books are written on how to become financially successful. Cuchi earn millions on tips about it. But is it true to competently handle money — is it so difficult?
In 2013, Professor Chicago University Harold Pollak took an interview with Elaine Deer, the author of the new book on financial literacy. During the conversation, Pollak spoke in favor of the spirit that the entire financial council industry is somewhat dedicated, because all the rules can be written on a small index card. Right during the interview, Pollak demonstrated what he had in mind.
After the release of an interview for Pollaka, unexpected glory fell. Everyone asked where to get this brilliant card. Two years ago, Pollak with deer released the book The Index Card. Why Personal Finance Doesn’t Have to Be Complicated («Indian Card, or Why Personal Finance is actually just»). In the book, the professor expanded the set of rules, but most importantly, they are still placed on an index card.
Savings — Fundament of financial well-being. How long exactly to postpone — depends on your goals.
You can make a simple calculation: let’s say, you want to retire in 50 years and live to 100. So, to 50 you should have so much money so that you can live on savings savings, gradually spending savings yourself for another 50 years. Naturally, it is not easy to estimate future investment income, but conservative calculations show that, postponing 20% starting with the first salary, you have a chance to maintain an acceptable standard of living after retirement.
It is worth using a credit card only within the Grace Period — a period of interest-free loan. If you leave in minus, then you are overpaying for your daily costs 10-20%. Remember how many times you got a credit card, because then there will be no discount! If you add interest to your attractive price for the use of the loan, then the purchase does not always seem as attractive.
401 (k) — an account with a special tax status, where American employers list pension savings. You do not pay taxes from this part of income and can independently decide where to invest. Pollak advises to send more money on this.
In Russian realities, a similar function
Worldwide experience in monitoring financial markets shouts about to beat the market
The rule flowing from the previous one. Scientifically proven way to make money on the stock exchange (if you are not a professional) so far only one: passive investments in well-diversified tools.
Passive investments — this is when you are not trying to prove everything that you are elected (these attempts have already destroyed the reputation of the whole army of the stock market professionals and led to losses among millions of investors), but simply invest in the entire market, relying on the wisdom of all investors combined And earn its growth based on basic economic principles. For passive investments
How to do it? Check out the question: what does an adviser earn, and how it is related to your income. For example, the clerk in the bank is still how profitable for you a deposit or insurance product (saint or nszh): the clerk gets a bonus if you convince you to use the product.
Better when the remuneration of the manager is tied to your financial success, as in
With a mortgage for 15-20 years, the borrower gives the bank the cost of two apartments. And sometimes more. To her own housing does not shake all your long-term financial strategy, you need
Expensive treatment, purchase of real estate and car is usually the largest items of expenses in the life of every adult person, if he is not a millionaire. Laying money, you probably do not want the accumulated capital to go to eliminate the consequences of the elements and force majeure, so it is better to insure all your main assets (health) and liabilities (property). The main thing, remember by contacting insurance, do not get on the fishing school
It is necessary to help people in a difficult situation, it is necessary because, no matter how much money you have, you too can be in a situation where you need the help of other people.
The discipline is the most difficult rule of these ten. The rest of nine are quite simple, agree?
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