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12 Key Elements of Personal Finance

This list is extracted from the wonderful book, “Common Sense Economics,” by James Gwartney, Richard Stroup, and Dwight Lee.

  1. Discover your comparative advantage.
  2. Be entrepreneurial. In a market economy, people get ahead by helping others and discovering better ways of doing things.
  3. Spend less than you earn. Begin a regular savings program now.
  4. Don’t finance anything for longer than it’s useful life.
  5. Two ways to get more out of your money: Avoid credit-card debt and consider purchasing used items.
  6. Begin paying into a “real-world” savings account every month.
  7. Put the power of compound interest to work for you.
  8. Diversify–don’t put all of your eggs in one basket.
  9. Indexed equity funds can help you beat the experts without taking excessive risk.
  10. Invest in stocks for long-run objective; as the need for money approaches, increase the proportion of bonds.
  11. Beware of investment schemes promising high returns with little or no risk.
  12. Teach your children how to earn money and spend wisely.

About the Independent Financial Advisor

Robert Pagliarini, PhD, CFP®, EA has helped clients across the United States manage, grow, and preserve their wealth for the past 25 years. His goal is to provide comprehensive financial, investment, and tax advice in a way that was honest and ethical. In addition, he is a CFP® Board Ambassador, one of only 50 in the country, and a real fiduciary. In his spare time, he writes personal finance books, finance articles for Forbes and develops email and video financial courses to help educate others. With decades of experience as a financial advisor, the media often calls on him for his expertise. Contact Robert today to learn more about his financial planning services.

Reach us at (949) 305-0500