index card investing

Wall Street and its representatives often make investing more complicated than necessary to give investors the idea that they are helpless on their own. University of Chicago professor Harold Pollack has gained acclaim recently for insisting that all the important financial advice you need can fit on one side of a 4x6 index card. When I first heard this, I thought, "How small did he print?" A picture of the index card reveals that Pollack provided nine pieces of advice, written in rather large print. Let's take a look at the professor's recommendations to see if they contain all the financial advice you need.

Here's what I agree with (in principle):

4. Save 20% of your money.  [Not necessarily 20%, but at least something]
5. Pay your credit-card balance in full every month.

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Here's my number 1 rule (and no. 2)

1. Spend less than you make
2. Invest what you don't spend