A Penny Saved

Money magazine put out a article called 25 rules to grow rich by.  There are some great tips in there, but a few stuck out to me.

7. To figure out what percentage of your money should be in stocks, subtract your age from 120.

I think that it’s important to realize that this number has gotten more risk heavy in recent years.  This is in part from the lifestyles that people are living.  The more expensive lifestyles require a little more money, and as a result, a more risk heavy and consequently, more reward heavy investment schedule.

8. Invest no more than 10% of your portfolio in your company stock - or any single companies stock for that matter.

Just ask the employees of Enron if this was a good idea or not. Being that heavily invested into one company can make your portfolio very shaky if the company becomes less than stable.

19. Anyone who calls or emails you asking for your social security number or information about your bank or credit card account is a scam artist.

There would be significantly less ID fraud if people would just accept this one little fact.  Too many people are still naive enough to trust anyone who calls and says that they are from a bank, credit union, or from the government.

22. 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.

Or consider buying it on eBay.  Many manufacturers sell their overstock on eBay at reduced prices that can be way below retail.

Those are just the ones that really stood out to me.  There are 21 other rules that are just as important and may be more important to you depending on your situation.  It’s a relatively quick read, so head on over and give it a look.

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