Preparation for The Retirement Saving Challenge - Timeless Personal Finance Recommendations

In preparation for My Wealth Builder's Retirement Savings Challenge, which begins on July 1, I wanted to share a couple articles to help people get mentally prepared.

In May, 2007, I wrote Is There Anything Really New in Personal Finance? with the answer that most personal finance principles are simple and timeless.

1. Spend less than one earns. Live below one's means. Buy only what one needs.
2. Save, invest and benefit from the magic of compounding.
3. Use debt sparingly and for items that may appreciate (e.g. home and education) and not for everyday expenses.
4. Go to college and major in a degree that leads to a higher paying profession.
5. If it sounds too good to be true, then it is.

I recently came across an article by Laura Rowley, Earning a Degree in Financial Stability, on the same topic, which shared the following:

1. Know your values.
2. Set goals.
3. Start saving young.
4. Live below your means.
5. Delay spending on luxuries.
6. Buy used, especially cars.
7. Don't try to keep up with others.
8. Be satisfied.

It is an article worth reading, including the comments, which provide some interesting perspective on how some people (both believers and non-believers) think.
One final thought, saving enough to be wealthy is possible for most if one starts young. Following the principles outlined above will help provide the discipline needed to stay on course.

For more on New Beginnings, check back every Sunday for the next segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC