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Short and Sweet Personal Finance Strategy

T

ToxicAsF

Over Analystical Extreme Gambler
Something I stumbled across recently and really loved the blunt and real view for personal finance planning. Thought I'd share it with you. Plus, Dilbert.

Scott Adams did write a short guide to personal finance, and Vanguard has a page listing his bullet points.
https://retirementplans.vanguard.com/VGApp/pe/PubVgiNews?ArticleName=DilbertGuidetoPersonalFinance
Here is the gist:
Everything you need to know about financial planning*
  • Make a will.
  • Pay off your credit cards.
  • Get term life insurance if you have a family to support.
  • Fund your 401(k) to the maximum.
  • Fund your IRA to the maximum.
  • Buy a house if you want to live in a house and you can afford it.
  • Put six months’ expenses in a money market fund.
  • Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement.
If any of this confuses you, or you have something special going on (retirement, college planning, tax issues) hire a fee-based financial planner, not one who charges a percentage of your portfolio.
*From Dilbert and the Way of the Weasel, 2002
 
You can't make me be responsible. You're not the president of me.
 
dainjre said:
You can't make me be responsible. You're not the president of me.
Click to expand...


Hey man, I'm all for those who want to live in the now. I wish I could do that myself. But then I think of retirement and go "yeah, I could sacrifice some of my enjoyment now to ensure I enjoy my future".

Of course, I could die early and it'd all be for naught, but then my family would be well taken care of.
 
Im mostly kidding. I know i should put more money away... But i really like having nice things, like my brand new car. Plus Ive survived this long with no credit card and i have pretty good credit because of it (and my car payment) so theres that.
 
It's really a hard balancing act on if you want to enjoy things now or when you retire. I want the best of both worlds so i stay just committed that it's not hurting but enough that it isn't bottom of the barrel
 
I don´t get why I trust this guy more than any credit institute. But I will look into this, since I have some spare cash to invest.
 
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