Successful personal finance is about choices, specifically making good choices. How does one learn to make good or best choices? Experience. How does one get experience? Bad choices.
The table below shows my opinion about some personal finance choices I've made. The blue is what I have actually done in the past. The green is what I do now or just before retiring. The black options I didn't ever do.
| Best, Good, Bad Options | |||
|---|---|---|---|
| Activity | Best | Good | Bad |
Student Loan Amount Borrowed | None | Less than expected starting salary | 100% of tuition, expenses room and board or exceeds starting salary |
| Credit Card Use | Pay current balance ahead of due date | Pay entire balance on time | Pay the minimum every month |
Monthly Spending when I Was Working | Less than 80% of net pay | Less than 90% of net pay | Over 100% of net pay in my first month |
Did I learn from my experiences? Yes, and I think I improved, especially in monthly spending. For me the new choices let to financial results that were better. YMMV.
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 © 2025 Achievement Catalyst, LLC
Copyright © 2025 Achievement Catalyst, LLC
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