What are the ten most important things about personal finance someone without a finance background must know?
1. Become a minimalist. As you buy items, give away the same amount of stuff.
2. Save 50% of your income
3. Do not take on debt
4. Only buy index funds with the lowest cost (Spider, etc.)
5. Do not trade stocks. Buy things you know and hold them
6. Your time is the world’s most valuable resource. We all have exactly the same amount in a day. Your time is limited, non-renewable and your lucky to be here.
7. Consumerism is a disease. Buy events, experiences and time with people, not depreciating assets.
8. In 50 years, no one will remember your name, care what you created or did, or be impressed with how much money you have. Focus on what matters.
9. Don’t spend money you don’t have, on things you don’t need, to impress people who don’t care.
10. If you follow the above, when you do become rich, the untimate irony is no-one will ever know you’re a multi-millionairre. And they will treat you like it. Just another guy standing in line for coffee.
It just doesn’t matter. Steve Jobs would give his entire fortune to charity just to be alive long enough to spend the amount of time you did reading this list.
What are you going to do with the rest of your life? Please don’t waste it chasing a parked car.