25 Rules to Grow Rich by

tag:blogger.com,1999:blog-6507959347687500495.post-3536687917994903382007-04-02T08:16:00.000-04:002007-05-22T20:47:25.866-04:002007-05-22T20:47:25.866-04:0025 Rules to Grow Rich byHere are some fundamental rules, not to become filthy rich, but live a comfortable life. The ones in bold are ones that I religiously follow, or at least try to. <ol><li>For return on investment, the best home renovation is to upgrade an old bathroom. Kitchens come in second. </li><li>It's worth refinancing your mortgage when you can cut your interest rate by at least one point. </li><li style="font-weight: bold;">Spend no more than 2 1/2 times your income on a home. For a down payment, it's best to come up with at least 20% </li><li style="font-weight: bold;">Your total housing payments should not exceed 28% of your gross income. Total debt payments should come in under 36% </li><li>Never hire a roofer, driveway paver or chimney sweep who is going door to door. </li><li>All else being equal, the best place to invest is a 401(k). Once you've earned the full company match, max out a Roth IRA. Still have money to invest? Put more in your 401(k) or a traditional IRA. </li><li>To figure out what percentage of your money should be in stocks, subtract your age from 120. </li><li>Invest no more than 10% of your portfolio in your company stock - or any single company's stock, for that matter. </li><li style="font-weight: bold;">The most you should pay in annual fees for a mutual fund is 1% for a large-company stock fund, 1.3% for any other type of stock fund and 0.6% for a U.S. bond fund. </li><li>Aim to build a retirement nest egg that is 25 times the annual investment income you need. </li><li>If you don't understand how an investment works, don't buy it. </li><li style="font-weight: bold;">If you're not saving 10% of your salary, you aren't saving enough. </li><li style="font-weight: bold;">Keep three months' worth of living expenses in a bank savings account or a high-yield money-market fund for emergencies. If you have kids or rely on one income, make it six months'. </li><li>Aim to accumulate enough money to pay for a third of your kids' college costs. You can borrow the rest or use some of your income to help out when your child is in college. </li><li style="font-weight: bold;">You need enough life insurance to replace at least five years of your salary – as much as 10 years if you have several young children or significant debts. </li><li> When you buy insurance, choose the highest deductible you can afford. It's the easiest way to lower your premium. </li><li>The best credit card is a no-fee rewards card that you pay in full every month. But if you carry a balance, high-interest rates will wipe out the benefits. </li><li style="font-weight: bold;">The best way to improve your credit score is to pay bills on time and to borrow no more than 30% of your available credit. </li><li>Anyone who calls or e-mails you asking for your Social Security number or information about your bank or credit card account is a scam artist. </li><li>The best way to save money on a car is to buy a late-model used car and drive it until it's junk. A car loses 30% of its value in the first year. </li><li>Lease a new car or truck only if you plan to replace it within two or three years. </li><li>Resist the urge to buy the latest computer or other gadget as soon as it comes out. Wait three months and the price will be lower. </li><li>Buy airline tickets early because the cheapest fares are snapped up first. Most seats go on sale 11 months in advance. </li><li>Don't redeem frequent flier miles unless you can get more than a dollar's worth of air fare or other stuff for every 100 miles you spend. </li><li>When you shop for electronics, don't pay for an extended warranty. One exception: It's a laptop and the warranty is from the manufacturer.</li></ol>For explaination of these rules please read the original article <a href="http://money.cnn.com/popups/2006/moneymag/25_rules/index.html">here</a><div class="blogger-post-footer"> ©2008 Copyright by <a href="http://www.everythingfinanceblog.com" title="Everything Finance">Everything Finance</a> Useful Links: <a href='http://www.linkconnector.com/traffic_affiliate.php?lc=020881002313003143";' rel='nofollow' target='_blank'>How to Raise Your First Million Dollars!<img border='0' height='1' src='http://www.linkconnector.com/traffic_record.php?lc=020881002313003143' width='1'/></a></div>Everything Financehttp://www.blogger.com/profile/11908288985581925996noreply@blogger.com5