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Simple Rules Of Personal Finance

BOSTON (CBS) - Last year I found a website, The Simple Dollar, which is all about keeping financial stuff as simple as you can. I liked a column titled "60 Simple Rules of Personal Finance".

Of course there was an immediate rapport with author Trent Hamm because much of his advice is similar to what I have been espousing for years.

I would love to review all of the rules this week but won't have the time. You can connect directly with The Simple Dollar from our website here.

Some of the rules are great and some I would take issue with.

Spend less than you earn. Sounds so very simple and for many it seems impossible. But there are enough stories from folks who have gotten out from under credit card debt and have made a financial come back that there is hope. Start saving with your first paycheck.

Keep everything as simple as possible. The KISS principle works for most everything in life. Simplify. Cancel some of those credit cards, you don't need more than 2 or 3 at the most. If you are carrying credit card debt, consolidate. How many IRAs do you have? Again consolidate. Organize your paperwork so you can find everything you need. Less paperwork equals more time to spend on the important things in life.

Focus on building an emergency fund. Your number 1 goal should be to have enough dollars set aside for an emergency. Unlike credit, cash is available in situations of credit problems or of identity theft. Start building an emergency fund by setting up an automatic transfer from your checking account to your savings.

Don't ever let your "future self" take care of your current situation. Do you ever tell yourself that it's okay to make a bad spending decision right now because you'll earn more money down the road? That's a big mistake, one you may regret for a long time.

Sure, your future self might have more income, but it's likely that your future self might have less income and you'll find yourself in a really bad situation. Even if your future self is doing well, there are probably going to be other big expenses that you'll want to deal with at that time.

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You can hear Dee Lee's expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m., 3:55 p.m., and 7:55 p.m.

Subscribe to Dee's Money Matters newsletter here.

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