From all that I read on personal finance, I think there are few basic principles we all need to follow. In fact, there are "levels of detail" per se, when it comes down to it. At a High Level its basically:
1) Save as much as you can
2) Earn as much as you can.
In a Middle Level its:
1) Contribute as much as you can to your 401k , but at minimum get the employer match
2) Save 4000$ a year in a Roth IRA
3) Save up 3 months worth of expenses in an emergency fund
And at a more detailed oriented Low Level its:
1) Invest you retirement savings (401k and Roth IRA) approximately 90% into stocks and stock mutual funds spread across Small Cap, Large Cap, and International funds.
2) Put your emergency fund into a high interest rate, no minimums or fees, online savings account: HSBC, Emigrant-Direct, iGObanking.com
All in all very good advice and something we all should be doing. I think going forward with this blog (when I have Finance posts) I will touch on different parts of these levels and expound on them. Also, I will talk about other interesting areas of investment (Prosper.com, creating cash flow,etc..) that are not usually covered by the personal finance gurus. Stay tuned.
Showing posts with label online savings. Show all posts
Showing posts with label online savings. Show all posts
Monday, April 23, 2007
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