The Painfully Obvious But Rarely Followed Tips
- Pay yourself first. Try to put away at least 10% of your pre-tax income into a savings account.
- Spend less than you earn. While this seems obvious, Americans are notorious for doing just the opposite. Stop spending and start saving.
- Pay your bills on time. Avoid needless late fees and know how much money you actually have.
- Avoid debt to the extent possible. Student loans and mortgages can be "good debt", but even then, make paying them off a priority.
- Set a budget. And live by it. Use a computer program or just a paper and pencil. Whatever works.
- Set concrete goals. Know when you want to buy a new home, when you want to retire, and how much you are expecting each to cost you.
- Have an emergency fund. Have at least three months' income (some say six) in a high-yield savings account that can be easily accessed.
