Personal-Finance

While the book is overall a good one, unfortunately, it contains a lot of generic financial advice which I decided not to include in the summary. Choose a sound financial lifestyle Borrowers borrow money from the future in the form of credit loans till the lifestyle collapses, consumers consume money paycheck to paycheck, keepers focus on accumulating wealth over time. The focus on net worth mentality over paycheck mentality actively works in keepers favor.

Since I wrote the initial set of posts, quite a few people have asked me about good credit cards. So, I decided to write one about the same.

(Since my previous posts, quite a few people asked me a basic plan which can be followed, here it is) The items are ordered from first thing to be done to the last thing which can be done (assuming money is still left). Emergency savings Put 6 months worth of expenses in a Series I-Bonds (sold by treasurydirect.gov) - they try to match inflation rates (but nothing more than that) and can be sold after holding them for at least a year....

(Based on what I have seen financial savvy people doing and makes sense to me. Disclaimer: These are my opinions.) Should a person contribute to pre-tax 401K? Only if the company has a matching policy, else wise, its money trapped till the person reaches retirement age. Should a person contribute to post-tax 401K? Only if the company has a matching policy, else wise, its money trapped till the person reaches retirement age....

Books One up on Wall Street by Peter Lynch - a good book on stock picking A random walk down the wall street by Burton Malkiel - a good book on why not to pick stocks The only investment guide you will ever need by Andrew Tobias - a hilarious summary of investing/saving and many other random money related topics The retirement miracle - For people who believe in indexed universal life insurance plans (I don’t) Where are customer’s yachts - hilarious read on wall street trader who profit on the expense of customers (won’t help in investing though)....

A year back I decided to try peer to peer(P2P) lending (out of curiosity) will a small sum of money. My net conclusion is that peer to peer lending is not a sensible form of investing. My money is still stuck (and that’s not the only reason why I would recommend people to stay away from it). How it works A lender with say 1000$ will go to a site like lendingclub....