This list is extracted from the wonderful book, “Common Sense Economics,” by James Gwartney, Richard Stroup, and Dwight Lee.
- Discover your comparative advantage.
- Be entrepreneurial. In a market economy, people get ahead by helping others and discovering better ways of doing things.
- Spend less than you earn. Begin a regular savings program now.
- Don’t finance anything for longer than it’s useful life.
- Two ways to get more out of your money: Avoid credit-card debt and consider purchasing used items.
- Begin paying into a “real-world” savings account every month.
- Put the power of compound interest to work for you.
- Diversify–don’t put all of your eggs in one basket.
- Indexed equity funds can help you beat the experts without taking excessive risk.
- Invest in stocks for long-run objective; as the need for money approaches, increase the proportion of bonds.
- Beware of investment schemes promising high returns with little or no risk.
- Teach your children how to earn money and spend wisely.
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About the Independent Financial Advisor
Robert Pagliarini, PhD, CFP® has helped clients across the United States manage, grow, and preserve their wealth for nearly three decades. His goal is to provide comprehensive financial, investment, and tax advice in a way that is honest and ethical. In addition, he is a CFP® Board Ambassador, one of only 50 in the country, and a fiduciary. In his spare time, he writes personal finance books. 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.
