Is this cheating?

I have a lot on my plate over the next couple of months so it thought I would share this fantastic YouTube video produced by PBS New Hour way back in 2016.

In the YouTube video titled “All the financial advice you’ll ever need fits on a single index card”. The link appears to be broken so look it up based on the title. The video features Harold Pollock, a university professor who offers great advice for the regular working person.

If you can’t find the video here’s the gist  of the advice and my own commentary if I feel it’s needed-

Financial experts say the same thing-

1. Save 10-20% of your income. Saving is hard, and if you don’t make a lot it’s even harder, but even small savings can add up over time. Remember to pay yourself first by setting aside some of your income every pay period.
2. Pay your credit card balance in full every month. If you can’t do this try to stop using your highest interest rate card, pay it off and then do the same with the next highest interest rate card until you don’t have any credit card debt.
3. Max out 401k or other tax deferred savings accounts. When you use this money post retirement your income will be low and your tax burden will be less. That means more money for you!
4. Never buy or sell individual stocks. Only the best investors can earn buying individual stocks that is about 1% of investors. 99% of us will lose money on individual stocks.
5. Buy inexpensive well diversified mutual funds, or index funds.
6. Advisors must use fiduciary standard versus suitability standard. This is a bit confusing for me as I don’t use a financial advisor, so do your research.
7. Buy a home when you are financially ready. Home ownership is expensive. Vicki Robin who wrote “Your Money, Your Life” questions the idea of a ‘starter home’.  Her book is aligned with my ideas about life style and well worth checking out.
8. Have a large insurance deductable. Insurance is for emergencies.
9. Do what you can to support the social safety net. One day you may need Medicare or social security; it is in your best interest to support policies that lift up these programs. You can’t predict the future; Mr. Pollock provides an excellent example in his personal life that shows how important these programs are.
10. Remember to be methodical and stick to it.

I expect to be back to full time writing sometime in May but until that time, I’ll continue to “cheat” so I can focus on my shifted priorities.