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February 13, 2006

Successful financial rules

It's the time of year when people are making resolutions and planning. N.C. State University economist Mike Walden suggests a few rules -- "common-sensical," he calls them -- for securing financial success.

"Number one would be to save money, and preferably start saving as early as you can in your life," says Walden, a specialist with the North Carolina Cooperative Extension Service. "What that does is it lets you take advantage of the power of compound interest.

"Number two, get a good education. If you are not in school and you don't have the kind of job that you want, try to go back to school and get that education. Education pays in today's economy.

"Number three, try to stay healthy. Research shows that healthier people are actually better off financially.

"And in line with that try to avoid family breakups if possible," he adds. "That puts a lot of stress on individuals, and it also strains finances. Again research shows that intact families do better economically than families that have split up.

"And lastly take prudent risk. Don't necessarily avoid all risks, especially in your investments. Take prudent risks, meaning that you don't put all your eggs in one basket -- you diversify."

Posted by deeshore at February 13, 2006 08:00 AM