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COLUMNIST RON LIEBER of The New York Times emailed me earlier in the week, asking for help with a special online feature. The task: Grab a 4×6 index card and, in Ron’s words, “write whatever you want on the *lined* side. A list of 10 things. Or 20 if you write small. A picture. A quote. Whatever. But it should add up to Clements’s guide to financial wellness.”
This was trickier than it seemed. The temptation was to focus solely on saving and investing, rather than touching on broader financial issues. The risk was stating the obvious, like “save diligently,” “diversify” and “never carry a credit card balance.” The really tricky part: my bad handwriting. I got my wife to fill out the index card.
You can view the results on NYTimes.com. If you scroll down the article, you’ll find an interactive feature with eight index cards. Don’t just read mine. Also check out the others, all of which are filled with excellent advice. Can’t get access to the New York Times site? Here’s what I cooked up for my index card—all 116 words and numbers:
1. Keep housing, cars and other fixed living costs to less than 50% of income. That’ll mean less financial stress, more cash for fun—and the ability to save gobs of money.
2. Never take on any debt you can’t pay off by retirement.
3. In your 30s, worry what would happen if you died or couldn’t work. In your 60s, worry what would happen if you lived longer than you ever imagined.
4. You can’t control the markets, but you can control risk, taxes and investment costs. Hint: Buy index funds.
5. Want greater happiness? Design a financial life where you spend your days engaged in fulfilling work—and your evenings with friends and family.
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