Friday, June 03, 2005

Financial Advice

I was asked this week to come up with a single paragraph of "best financial advice" by the FreeMoneyblog.

I will not post my advice yet on the FinanceProfessor blog, but since this blog is so much smaller and mainly just for students, I am sure he will not mind me sharing my response:

"The best financial advice I can give is to think long-term. While it seems simple, it is often very difficult. It means to save more than you think you need to save and spend less than you want to spend. The best way that I have found to do this is with automatic investment plans. These plans, which are available through all major mutual funds and through most employers, take money out of your checking accounts on a regular basis. This forces you to invest regularly and has the added benefit of making it easier to cut back on spending since if you do not see the money, you are much less likely to spend the money. "

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