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0 pointsNatsu11y ago0 comments

I don't know about links, but the basics are simple enough: track what you spend and save some % of what you make. Avoid debt for things that lose value (e.g. cars). Debt for things like houses that retain value can make sense, though. Always keep money in reserve. Pay off the high-interest debt (e.g. 30% APR credit cards) first. If you do buy any complex investments, keep in mind what conditions cause gain or loss. For example, I recently saw an annuity/ETF product where they let you invest in indexes and cover the first 10% of any losses, but you gain at most 10% annually (they get the rest). It took me a while to realize that this means you get a 10% upside and 90% downside.

I'm sure others can give you more common sense advice.

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jamesaguilar11y ago

> Avoid debt for things that lose value (e.g. cars).

This is actually not terribly good advice. Debt does not become especially bad depending on whether what you used it for is gaining or losing value.

This rule is really a proxy for, "Don't buy an expensive car, boat, or plane, relative to what you are making." Now that is a good rule. There's no reason to hide it behind a false rule. Financing a purchase that you could pay cash for can sometimes be wise, even if the purchased item is losing value.

NatsuOP11y ago

If you fall on hard times, you can sell things. If you have to sell something like a car that lost value, it won't be as good as being able to sell something like a house that holds value.

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