Everything You Need to Know About Personal Finance in 1000 Words

by C.J. Carlsen

Don’t use credit cards for useless purchases. This includes purchases for things that you cannot afford and things that lose value over time. Always pay off your credit card balance in full every month.

Ramit Sethi

“live a rich life by spending EXTRAVAGANTLY on the things you love, and cut costs mercilessly on the things you don’t”.

Think about your purchases before you make them. Take at least 60 seconds for smaller purchases, and up to 24 hours for those larger purchases. Consider how you will feel about your purchas...

Pay off all of your high interest credit cards before you start saving. Interest rates will kill you, and you will be on the wrong side of the compounding interest effect. “The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese Proverb

Save up at least six months of living expenses. This will be your rainy day fund. Once you reach this goal, continue to save and funnel your money into your investment accounts. You can reach these goals by saving 20

percent of your income every month, at a minimum.

Income – Fixed Expenses – Variable Expenses = Savings for the Month

Watch less TV and spend less time surfing the web. Cut down on these time wasting activities and replace them with productive activities which will help you realize your financial

goals.

Continue to educate yourself. This could be through schooling, certifications, reading nonfiction books in your field, or by simply learning as much as possible your current job and working to mov...