My Money Rules

Being financially healthy makes a huge difference in our lives.

Like most people, we’ve gone through times of almost unbearable financial hardship. We’ve also done a lot of things right when it comes to improving our financial health.

Here are a few of the Money Rules that I’ve adopted.

1. Calculate your Net Worth once a month, and monitor how it is trending. Just developing this one habit has made a significant difference in our lives!
2. Pay down any credit card debt faster than any car loan debt, student loans, or other debt. Mortgage debt tends to be the cheapest debt you’re ever going to have.
3. Put most of your cash savings in a High Yield Savings Account, where it can earn about 4.7 % interest.
4. Max out your 401k contributions (if you have one). If this isn’t possible, at least contribute enough to get your company’s match (if there is one). Consolidate any previous 401k’s into an IRA.
5. Invest in a collection of Index Funds. Do this in your retirement accounts and any other after-tax investment accounts you have.
6. Review your asset allocations once a year to keep them aligned with your short-term and long-term priorities.
7. Always keep learning about what strategies are working as the world continues to change.