The 10 Commandments of Investing

Dec 16, 2007
two cents'worth
Thou shalt heed these 10 commandments of investing
By Mark Bruno, AUTHOR


1. Acknowledge that your retirement is a reality, even if it may be 30 or 40 years away.

Your retirement will cost you more money than you could possibly imagine, and you don't want to wait and see if you can play catch-up.

2. Don't wait. Do something now.

You are not entirely on your own, but it is up to you to take care of yourself. Commit to saving just a small portion of each pay cheque for your retirement before you can spend it.

3. Whenever there is free money, take it.

If you are lucky enough to work for a boss who will make matching contributions to your retirement plan, take the money.

4. Treat your retirement as another line item taken out of each pay cheque.

Instead of making large annual contributions to your retirement, have smaller contributions automatically deducted from your pay cheque.

5. If you think you can't afford to save, you are probably wrong.

Even saving as little as US$90 (S$130) a month will help you begin to accumulate some serious long-term wealth.

6. Take advantage of the power of compounding.

The best investment decision you will ever make is to start saving money early. The younger you are, the more your money can work for you.

7. No matter how much help you think you might get when you retire, don't count on it.

There are no sure things in life and retirement, and your retirement is definitely your responsibility.

8. Understand the difference between good and bad debt.

Credit card debt is bad debt; you get nothing in return but more debt if you don't pay it off expeditiously. It erodes your financial independence and your ability to save.

9. There is no such thing as 'the point of no return'.

It is never too late for you to learn how to make smarter moves with your money. There are no stupid questions, only stupid decisions.

10. Don't save for tomorrow at the expense of today.

Do everything in moderation. Don't stay home every night because you are too scared to spend.

Excerpted from Mark Bruno's Save Now Or Die Trying, published by John Wiley & Sons.