Everything you need to know about money in 9 rules.

zagubov

An American professor claimed that a lot of the best advice was available for free in the local library if people could be bothered to look it up, but they just don’t, so he summarised everything a US citizen needed to know about personal finance on one index card, making nine points.
It’s clearly not perfect but it’s a good start.

How similar a list could we make for people in the UK with the different financial conditions and tax/welfare system we have over here? Any ideas welcome and doesn't have to be exactly nine.

GreatApe

These should be in the list probably towards the top

Get higher paid work.
Avoid Drugs, Avoid Gambling, possibly also avoid tobacco/alcohol
Buy your own home sooner rather than later

coffeehound

It doesn't mean much to me tbh. Can anyone translate it into UK layman?

kinger101

I don't think the advice is necessarily correct either. There's nothing wrong with actively managed funds. You just need to be sure you're benchmarking them. I have a number of them, and the vast majority have outperformed a FTSE 250 tracker I also have invested in. And the FTSE 250 hasn't been a bad investment at that. You just need to take an interest in how they are doing.

I also wouldn't exceed the amount needed to get the maximum employer contribution in company pension. Many have too few investment options compared to a SIPP.

My best advice would be never buy a new car. I've never paid more the £4,000, and most have lasted me at least 5 years (the last one 8) and needed nothing that wouldn't be considered routine maintenance.

Thrugelmir

How many people can realistically save 20% of their income.

bobbymotors

1. Work hard, exceed expectations, become indispensible: then get a pay rise
2. Don't borrow unless it's something you have to have in order to live
3. Never go into business with or lend money to friends or family
4. Despite the fact it might look expensive today, buy property. It won't look expensive in 10 years
5. Only invest in something you know inside out and back to front
6. If it looks too good to be true, it invariably is
7. Put what you can into a well run and well known pension fund while you are still young
8. Never have the courage of someone else's convictions - if you think something will fail, be polite, but say your piece.
9. your word must be your bond. A deal is a deal.

Thrugelmir

bobbymotors wrote: »

3. Never go into business with friends or family

I wouldn't recommend going into business with a total stranger.

p00hsticks

coffeehound wrote: »

It doesn't mean much to me tbh. Can anyone translate it into UK layman?

For 401K on the first point, read pensions.
And tax incentive savings over here would be the various flavours of ISA

Not sure the final point regarding 'social insurance' is particularly relevant for the UK

zagubov

Thrugelmir wrote: »

How many people can realistically save 20% of their income.

Prof. Pollack who came up with the rules had plenty of reservations about that one. He reckoned most people would be so stretched at certain stages of their working lives these should be aspirations and that realistically they should aim to save 10% at most to start with and work their way up to 20% when and if circumstances allow.

Some aspects of this have been covered in a recent thread here
https://forums.moneysavingexpert.com/discussion/comment/72564216#Comment_72564216

p00hsticks wrote: »

For 401K on the first point, read pensions.
And tax incentive savings over here would be the various flavours of ISA

Not sure the final point regarding 'social insurance' is particularly relevant for the UK

I'm afraid that US politics is so right-wing they'd tax dark glasses for blind people if it would spare enough tax for the rich to afford dark glasses to spare them having to see blind people.

fatbeetle

Ensure your parents are rich before you get born

HPC_Ghuol_Hunter

Don't buy magic internet crypto money beans.