Monday, November 29, 2010

Collection Of The Best Financial Advice

Here is a collection of the Best Financial Advice
  • Live within your means (AskChong: And increase/expanding your MEANS)
  • If your outgoing exceeds your income, your upkeep will be your downfall. (AskChong: this advice may be tough to understand by reading on it itself but if you have ever experience it.... you will feel)
  • Earn as much as you can; Save as much as you can; Invest as much as you can;
  • "Don't pay interest on anything that loses value." (AskChong: probably excluding car but if possible, buy used car unless you are rich or car value vs annual income ratio is less than 25%)
  • "Buy quality."  (AskChong: It is lower price eventually when you buy quality, example I just found is my favorite food - the peanut butter. A lower price brand comes in higher sugars content and higher price actually comes with lower sugars content, I pay for Peanut Butter not for sugars)
  • "Know the difference between needs and wants." (AskChong: a guide to control spending. You need to eat, you want a wagyu steak. You need a place to sleep, you want a high-end condominium. You need a transportation, you want latest model of Toyota. You need a mobile phone, you want iPhone 4G.)
  • "If you need more money, then go out and make more money."
  • "Own your own business -- including the building it's in." (I have seen many businesses saved by the building they invested years ago)
  • "Don't gamble more than you can afford to lose." 
What is yours? Welcome to share with us...