Financial Planning

The One-Page Guide to Personal Finance

The Three-Step Budget (Andrew Tobias, The Only Investment Guide Youʼll Ever Need) 1. Destroy all your credit cards. 2. Invest 20% of all that you earn. Never touch it. 3. Live on the remaining 80%, no matter what. The All Your Worth Budget (Elizabeth Warren, All Your Worth) 50% to Needs (taxes, groceries, shelter, insurance, utilities, basic clothing) 30% to Wants (extra clothes, restaurant meals, video games, knitting supplies, vacations) 20% to Savings (including debt repayment) The 60% Solution (Richard Jenkins, MSN Money) 60% to Committed Expenses (taxes, food, shelter, insurance, utilities, clothing) 10% to Irregular Expenses (vacations, medical bills, repairs, appliances) 10% to Long-Term Savings or Debt (student loans, credit cards, saving for a car,

down payment for a house) 10% to Retirement (401k or Roth IRA) 10% to Fun (whatever you want to spend it on) The Get Rich Slowly Guide to Roth IRAs – getrichslowly.org/files/rothira.pdf Four Great Personal Finance Books for Recent Graduates The Money Book for the Young, Fabulous, and Broke by Suze Orman Debt is Slavery by Michael Mihalik Brazen Careerist by Penelope Trunk The Random Walk Guide to Investing by Burton Malkiel Four Great Personal Finance Sites for Recent Graduates Get Rich Slowly (getrichslowly.org/blog/) I Will Teach You to Be Rich (iwillteachyoutoberich.com) The Simple Dollar (thesimpledollar.com) Money 101 (money.cnn.com/magazines/moneymag/money101/)

Eight Guidelines for Managing Your Money • Spend less than you earn. Track every penny you spend. Avoid debt. Avoid debt. Avoid debt. • Pay yourself first. Before you pay your bills, before you buy groceries, before you do anything else, set aside X% of your income. (20% is good.) • The perfect is the enemy of the good. Donʼt worry about getting things exactly right. Choose a good option and do something. If you can only save 5%, then save 5%. Action beats inaction. • Do what works for you. Each person is...