20 Timeless Money Rules
1. Be humble
When you do not know a thing, to allow that you do not know it–this is knowledge.
2. Take calculated risks
He that is overcautious will accomplish little.
–Friedrich von Schiller
3. Have an emergency fund
For age and want, save while you may; no morning sun lasts a whole day.
4. Mix it up
It is the part of a wise man to keep himself today for tomorrow and not to venture all his eggs in one basket.
–Miguel de Cervantes
5. It’s the portfolio, stupid
Asset allocation…is the overwhelmingly dominant contributor to total return.
–Gary Brinson, Brian Singer and Gilbert Beebower
6. Average is the new best
The best way to own common stocks is through an index fund.
7. Practice patience
It never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
8. Don’t time the market
The real key to making money in stocks is not to get scared out of them.
9. Be a cheapskate
Performance comes and goes, but costs roll on forever.
10. Don’t follow the crowd
Fashion is made to become unfashionable.
11. Buy low
If a business is worth a dollar and I can buy it for 40 cents, something good may happen to me.
12. Invest abroad
The World is a book, and those who do not travel read only a page.
13. Keep perspective
There is nothing new in the world except the history you do not know.
14. Just do it
It takes as much energy to wish as it does to plan.
15. Borrow Responsibly
As life closes in on someone who has borrowed far too much money on the strength of far too little income, there are no fire escapes.
–John Kenneth Galbraith
16. Talk to your spouse
“In every house of marriage, there’s room for an interpreter.”
17. Exit gracefully
Only put off until tomorrow what you are willing to die having left undone.
18. Pay only your share
The avoidance of taxes is the only intellectual pursuit that carries any reward.
–John Maynard Keynes
19. Give wisely
The time is always right to do the right thing.
–Martin Luther King Jr.
20. Keep money in its place
A wise man should have money in his head, but not in his heart.