Scott Adams’ nine-point formula for all your personal finance decisions are:
- Make a will
- Pay off your credit cards
- Get term life insurance if you have a family to support
- Fund your 401k to the maximum
- Fund your IRA to the maximum
- Buy a house if you want to live in a house and can afford it
- Put six months worth of expenses in a money-market account
- 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
- If any of this confuses you, or you have something special going on (retirement, college planning, tax issues), hire a fee-based financial planner, not one who charges a percentage of your portfolio
Adams boldly states that this is “everything you need to know about personal investing.” In just 129 words, nine simple points, one page you have the unabridged “Unified Theory of Everything Financial.”
That’s it. Everything!
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I understand and am doing point 2 to 8, but don’t really get it why we have to make a will?
Because my 1st layer unified theory is get your roof (inflow) high and get your floor (outflow) low..
and my 2nd layer is Get ourself debt & loan free, get most of our money work for us, stay frugal, reduce our live spending & living costs, stay happy & grateful and keep on doing all this things till you are reaching your goals..
but don’t know how I would ever relate this with making a will.
Could you please share more of this with us?
Thank you.
J.C. Carvill
Email: support@cosmosing.com
URL: http://www.cosmosing.com/jeanclaudecarvill/index.php