So I’m going to make a concerted effort to write more about personal finance in the coming year.
Here’s my list of 20 personal-finance rules:
1. Salary is not the same as savings. Your net worth is more important than how much money you make. It’s amazing how many people don’t realize this simply truth. Having a high salary does not automatically make you rich; having a low salary does not automatically make you poor. All that matters is how much you save out of your salary.
2. Saving is more important than investing. Pay yourself first is such simple advice, but so few people do this. The best investment decision you can make it to set a high savings rate because it gives you a huge margin of safety in life.