Wednesday, November 15, 2006

Rules to Get Rich By

This month's issue of Money Magazine has 25 Rules to Grow Rich By. I am not going to list them all, but am going to list a couple that caught my eye. One of the rule's is to save 10% of your salary. I am actually hitting that mark this year and plan to continue each following year. It also says to keep three months worth of living expenses in a savings account (Emergency Fund). I am currently working on this one but am no where close to where I need to be yet. You need life insurance to cover at least 5 to 10 years of your salary in case you pass away. Some other interesting points are don't spend more than 2.5 times your salary on a home purchase. We are OK on this point, in fact we are under. If you don't understand how an investment works don't buy it. This is me with Forex investing. I want to get into it, but just don't know anything about it. Resist the urge to buy new electronic gadgets. This is the hard one for me I always want to keep up with the Jones' on this one, but I will have to give it up. There are a lot of other great points. Check out November's Money Magazine. Also Free Money Finance has written some interesting things about the same article, I will post the link here.