Excellent advice I already practice.<\/p>\n
\nSum Up<\/h2>\n
This is how to be smarter with money:<\/p>\n
\n
- Reminder \u2013 You Cannot Predict The Future:<\/strong>\u00a0Timing the market isn\u2019t investing; it\u2019s gambling. And how would you react if I said I planned on funding my retirement through gambling?<\/li>\n
- Ask, \u201cWhat Does Money Mean To Me?\u201d:<\/strong>\u00a0Make a simple plan and then make sure your investments serve it.<\/li>\n
- Feelings Can Be Very Expensive:<\/strong>\u00a0Investing is boring. And make sure it stays that way. Don\u2019t \u201cplay\u201d the market. That\u2019s how you get played.<\/li>\n
- Use the 72-Hour Test:<\/strong>\u00a0Very few things need to be bought immediately. Let them sit in your shopping cart for 3 days to prevent impulse buys. (The only exception is\u00a0my book<\/a>, which should be purchased immediately and in bulk.)<\/li>\n
- Automate Good Behavior:<\/strong>\u00a0Until our robot overlords arrive, make sure to take advantage of our robot underlings. The best way to be consistent about good behavior is to automate it.<\/li>\n
- Use The Overnight Test:<\/strong>\u00a0If all your investments got sold, which ones would you actually re-buy? And why doesn\u2019t your portfolio look like that now?<\/li>\n
- Know The Fundamental Rules of Investing:<\/strong>\u00a0Pay off debt. Diversify. Keep costs low. Eliminate unsystematic risk.<\/li>\n
- Be Ignorant And Lazy:<\/strong>\u00a0\u201cTMI\u201d is a bad idea with people you\u2019ve just met and with investing. If your money is already hard at work, why interrupt it?<\/li>\n<\/ul>\n