|Personal Finance Choices|
|Saving||Early and often||Later and infrequent, or none|
|Debt||Funding large long term purchases such as a home||Using to live above means or to fund routine living expenses|
|Higher Education||Positive financial return||Incurring burdensome debt|
|Investing||Good quality for longer term||Speculative or market timing|
Although I have categorized each behavior as friend or foe, the dividing line can be fuzzy. I've also done actions which I have listed as in the foe category. For example, I purchased my first new car with a loan and subsequent vehicles were purchased with cash. Also, for a small part of our investment portfolio, I buy speculative stocks or try to time the market.
However, in general, I find that we are better off when our choices predominantly in the friend category.
For more on The Practice of Personal Finance, check back every Wednesday for a new segment.
This is not financial advice. Please consult a professional advisor.
Copyright © 2010 Achievement Catalyst, LLC