Personal finance is not taught formally in elementary / high school in the U.S. and you can see the consequences in adult financial behavior:
- Abysmal savings rate
- High debt
- Credit card dependence
- Percentage of salary devoted to housing and other living expenses
But personal finance isn’t difficult as long as some basic rules are followed:
- Live below your means
- Save at least half of your salary (yes, it’s extreme but necessary)
- Use only 20-23 percent of take home income for housing
- Cars are poor investments
- Do not eat out often
- Live and spend time with like minded individuals
There are other rules or tricks, of course, and some good sources include: The Simple Dollar, Millionaire Next Door, Two Income Trap and a series of very simple but effective video clips from accountant Scott Gutterson.
Hi,
Nice Blog!
Best,
John
Great advice Vin.