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Financial Planning in Just 87 Words

Financial planning is simple and is the most basic necessity in every individual’s life. Although, the entire Financial Planning thing might sound a bit complicated to you initially but, following financial expert Scott Adams’ wise 87 word advice, any one can chalk out their basic retirement and financial planning.

Financial Planning Scott Adams

Financial Planning by Scott Adams

So here it goes like this:

1. Make a will.

2. Pay off your credit cards.

3. Get term life insurance if you have a family to support.

4. Fund your 401(k) to the maximum (- Retirement Savings for us Indians)

5. Fund your IRA to the maximum (Individual retirement account)

6. Buy a house if you want to live in a house and you can afford it.

7. Put six months’ expenses in a money market fund

8. 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.

Isn’t this a very simplified version of financial planning which every individual should be aware of? Do let us know in the comments section.

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