I have a challenge for all of you–especially the personal finance bloggers that read Fiscal Fizzle. Here it is:
If you had to summarize personal finance in three rules,
what would they be?
Don’t be fooled by the simplicity of the question–it’s probably the hardest thing I’ve ever considered because it’s forced me to consolidate everything I know, everything I’ve ever learned, and even the things I have no idea about, into three simple, comprehensive, yet flexible guidelines.
One of my goals for 2010 is to introduce more video blogging to Fiscal Fizzle, so I decided to share my thoughts with a video today. I’m realizing I’m a much better writer than I am a speaker–largely because I can’t think on the fly if my life depended on it. But the videos are a lot of fun to make and I think they will not only add dimension to the blog, but also to me (how selfish, I know!). 20 points for the person that correctly counts the number of times I say “um!” 
The video is embedded below (for those reading in email or incompatible readers, you’ll have to click through to the original post):
The three rules I talk about in the video are:
- Rule 1: Consider how your actions affect future options.
- Rule 2: Respect the power of basic math.
- Rule 3: Look for balance in everything you do.
I go into a lot of detail about each one, so I encourage you to watch the video. (If you’re a You Tube user, why not subscribe to my videos, too? You’ll get to see them before anyone else.)
Back to the challenge! Before you head out to the rest of your busy day, I encourage you to stop and think about the three rules you would give to others. It can tell you a lot about yourself!
Once you’ve got your three, be sure to share them in the comments, so we can all gain from your wisdom!
Photo thanks to visualpanic
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Only three? That’s a hard one. Here goes:
1. Spend less than you earn.
2. Have a plan for today, tomorrow and the years to come.
3. Balance is everything.
You had to know I’d agree with you on that last one!
2 Cents @ Balance Junkie´s last post: Economics: Your Personal Finance Weather Forecast
“Have a plan for today, tomorrow and the years to come.” Yup…definitely! (Even if it changes every other month, it’s important to get something down on paper!)
Before reading yours, I was going to go with:
1. Pay yourself first.
2. Pay for value.
3. Find the balance in YOUR life.
3 is a combination of things: do what works for you, action is better than inaction and don’t be afraid of failure, and don’t sacrifice too much for money later.
“Pay for value.” Love that one! How clearly those three words affect everything we’ll ever buy in life!
1. Spend less then you make (agree with 2 cents there!)
2. Have your finances in line with your values.
3. Control Your finances or they will control you.
“Control Your finances or they will control you.” Really like that one, but I would pose the question–are we ever really “in control” of our finances, or can we do the best we can to prepare, and be at the mercy of outside forces/circumstances? I think that’s an interesting thought…
As in control as one can be in anything I guess. Outside of video games there are very few places we can talk about control without exception
.
Kevin I´s last post: So You’d Probably Like an Update
1. Spend less than you earn.
2. Consider all risks when planning ahead.
3. Money is only one part of your life. (Balance!)
“Money is only one part of your life. (Balance!)” Really like the way that’s phrased.
Word choice makes all the difference!
Ohhh, this is a good one! I love the answers so far. Mine–
1. Every dollar I lay down is a vote of support. (Forces me to ask–What am I supporting? Child labor? Fair wages? Local farmers? Factory farming? 20 years of debt repayment?)
2. Money is a tool with which to build. (Am I building debt? Savings? Dreams or nightmares?!)
3. I define my wants and needs. (No financial expert, home & garden TV show or fleeting trend is going to define how I choose to spend and save. My life. My money. My decisions.)
ConsciouslyFrugal´s last post: Tuesday’s Tip: Abandon the Big Box for a ReStore
I really like “Every dollar I lay down is a vote of support” and wish more people thought that way…
We seem to believe we are helpless to change the way big corporations operate, from our retail stores to restaurants, to any other establishment we might go to and dislike.
But I think if this recession has proved anything, it’s that the “bad apples” will be weeded out, eventually.
Hmm — how about three rules as a poem?
Earn more
Spend less
Invest the rest
Monevator´s last post: Playing chicken with house prices
Hahahaha! I couldn’t help myself, I can’t believe you made that rhyme. Kudos!
Ha, I know you’re not laughing *at* me but *with* me!
Actually I’m quite taken with it. Maybe it should be the new Monevator strapline.
Monevator´s last post: Playing chicken with house prices
Oooh, this was a good one. Okay, here are my thoughts …
1) Establish the priorities for your life, for your money will follow the desires of your heart.
2) Develop a realistic budget that is firm enough to keep you accountable and flexible enough to adapt to life. If you don’t control your money, it will control you.
3) Keep perspective, money is only a tool by which we participate in life. Wealth has a much higher value when measured in the love of family and friends.