This is a guest post by Lazy Man from Lazy Man and Money.
A lot of people ask me why I go by the name Lazy Man. I wanted to convey the message that managing your money doesn’t have to be a lot of work. If a Lazy Man like me can do it anyone can do it. It’s about thinking smarter, not working harder. I like to divide most money management into three areas: saving your money, growing your money, and protecting your money.
Save Your Money
If you are like me, you have a friend who spends money everywhere… and then complain that they have no money. You see them buy a designer purse or fancy tablet computer and just shake your head. In the Lazy Man plan to being rich, the smart person watches his/her spending. I don’t budget every dollar. I just think twice before I make a purchase. The more expensive the purchase the longer I think about it. During this time, I’m able to research prices and pounce on the best bargain.
To help you save money, I created a page with links to literally hundreds of a ways to save money on just about anything.
Grow Your Money
Assuming that you are saving money from the first step, the next thing you want to do is grow the money. How are you going to do that? The simple answer is investing. People write entire books on investing, but I have to make due in only a few sentences. I tend to invest in Exchange Traded Funds (ETFs) from Vanguard. The company is known for having very low expense ratios associated with its investing products. I like to invest in the Vanguard Total Stock Market Index (VTI) and the Vanguard FTSE All-World ex-US ETF (VEU). A more conservative investor would look to add some bonds to the mix as well.
One area that most people overlook are their everyday accounts. Interest rates are pretty unexciting now, but historically you can make a couple of percent by simply signing up and using an interest checking account.
Protect Your Money
One of the most overlooked areas of money management is protecting your money. For many people, this can be summarized by having the proper insurance. That’s a no-brainer.
Something that few people think about is their health. Health emergencies pop up for many people and they can be expensive. Keeping the doctor away is good for your wallet. My advice here shouldn’t
surprise, “Eat well and exercise.”
My final advice here is avoid scams and scammers who want to separate you from your money. In particular, I recommend staying away from multi-level marketing companies where independent business owners makes outrageous health claims that are not approved by the FDA. Two particular products that seemed geared towards that are MonaVie and Protandim
Author: Jeremy Vohwinkle
Great article! The main point is - the small stuff will kill your budget. Most people know where their big purchases or spending goes, it's the latte's, snacks and "oh why nots" that cause the cash to vaporize. But sticking to the cash stipend will help deal with that, as long as you can keep disciplined.
I read a lot of personal finance blogs and it seems that Vanguard and Fidelity may be the way to go for retirement investing, but I am already invested with American Funds. I never see anyone talk about that company. Does anyone have an opinion about that company?