About this site
You will not find any get-rich-quick schemes here. Nor will you find multi-level marketing fads or hot stock tips. I am not pitching any product or book. Instead, you’ll find daily information about personal finance and related topics.
I share stories about debt elimination, saving money, and practical investing. I also post occasional reviews of books, magazines, and software. And, of course, I scour the web for the latest personal finance tools and articles.
Please note that I am not a financial professional. I’m just an average guy who found himself deep in debt. When it finally became too overwhelming, I began reading personal finance books, hoping to find answers. I wanted swift solutions to my problems. My research revealed that few people get rich quickly, but almost anyone can get rich slowly by patiently following some simple rules.
Money is more about mind than it is about math.
When we overspend, we’re making mental mistakes, not math mistakes. We all understand the math. Fortunately, we can do things to trick ourselves into making the right choices, and eventually those choices will become second nature.
- Goals are important.
- Without financial goals, you have no direction, which makes it easy to spend money on things you’ll regret later. But if you know that you’re saving for a house, for your daughter’s college education, or for a new car, your goal will keep you focused.
- Spend less than you earn.
- Track every penny you spend. Avoid debt. Avoid debt. Avoid debt. Easier said than done, I know, but the fundamental rule of personal finance is this: in order to get out of debt and build wealth, you must spend less than you earn. There’s no way around it.
- Pay yourself first.
- Before you pay your bills, before you buy groceries, before you do anything else, set aside some percentage of your income to save. Start small if you have to — even 1% is good — and increase your savings as you’re able. Aim to reach 20%. (My wife saves 25% of her paycheck!)
- Small amounts matter.
- Don’t be frustrated if you’re only saving $25 per month. I started small, too. Though the going seemed slow at first, these small moves helped me develop good habits. And don’t underestimate the power of just one small change. When I cut my cable bill from $65/month to $15/month, that extra $50 made a huge difference.
- Large amounts matter, too.
- It’s good to clip coupons to save money on groceries, but it’s even better to shop around for the best deal on a mortgage. Everyday frugality can save you a little money consistently, but by making smart choices on big ticket items, you can save thousands of dollars in one blow.
- Do what works for you.
- Each person is different. What works for one person may not work for another. There’s no one right way to save or to invest or to pay off debt or to buy a house. Don’t believe anyone who says there is. Be willing to experiment until you find methods that are suited to your life.
- Slow and steady wins the race.
- The most successful people are those who work longest and hardest at something they love to do. Find ways to make frugality fun. Recognize that you’re in this for the long haul. You’re making a lifestyle change, not looking for a quick fix.
- The perfect is the enemy of the good.
- Too many people are reluctant to start getting their finances in order because they don’t know what the best first step is. Don’t worry about getting things exactly right. Choose a good option and do something. Optimize later.
- Failure is okay.
- It’s okay to make mistakes. We learn from failure. Don’t let a single mistake drag you down. It’s better to have tried and failed than to never have tried at all. Use failure to learn how to do better next time.
- It’s more important to be happy than it is to be rich.
- Don’t become obsessed with money and wealth. Money gives you more options, but happiness makes life worth living. I believe that if we’re able to stay happy and in control of our lives, money actually becomes easier to manage.
- Do it now.
- It’s easy to put things off. But the sooner your start moving toward your goals, the easier they are too reach.
These are the basic tenets of my philosophy. These are the ideas that lurk behind every article I post. Please remember that everything you read here is my own informed opinion. Never believe everything you read, and always form your own conclusions.
