7 Key Personal Finance Guidelines

Savings

  • Save at least 15% of your income for long-term goals.

Home

  • Look at refinancing when rates are one percentage point lower than your current rate.

Investments

  • Invest no more than 5% of your portfolio in your company stock or any single stock.

Retirement

  • To figure out how big a nest egg you’ll need, insert your ideal annual income into this formula: ______ x 30. (Subtract any pension or Social Security income you’ll get first.)

Spending

  • Keep discretionary spending (clothes, dining out, movies) under 20% of your take-home pay.

Debt

  • Keep your debt-to-income ratio under 30%.

Allocation

  • To determine how much of your portfolio should be in stocks, do this math: 110 – Your Age = % in Stocks.

~Tony

Source: FORTUNE

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