The Dilbert Guide to Personal Finance
Scott Adams, the cartoonist behind the popular Dilbert cartoon, is an excellent manager of his own personal finances. He intended to write a humorous book about personal finance but decided he could never write enough to fill more than a page. According to Adams, everything you need to know about financial planning boils down to these eight principles:
- Make a will.
- Pay off your credit cards.
- Get term life insurance if you have a family to support.
- Fund your 401(k) to the maximum.
- Fund your IRA to the maximum.
- Buy a house if you want to live in a house and you can afford it.
- Put six months’ expenses in a money market fund.
- Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker, and never touch it until retirement.
Via Vanguard
8 comments July 27th, 2006