T. Chester has created a great site devoted to financial advice for his son. This is an excellent introduction to personal finance for anyone, and well worth the twenty minutes it takes to read.

Some of Chester’s key points:

The three most important precepts:

  • The most powerful force in the Universe is compound interest!
  • Savings is most important
  • There is no such thing as a legitimate “get rich quick” scheme.

Things to do before investing:

  • Make sure you have adequate health insurance.
  • Make sure you have adequate disability insurance.
  • Don’t buy life insurance (unless somebody else depends on your salary).
  • Don’t pay credit card interest.
  • Build a cash cushion of 3-6 months expenses (or salary, as preferred).
  • Save to buy a house when you plan to stay somewhere more than two years.
  • Take advantage of tax shelters.

His investing section discusses:

  • The efficiency of the market.
  • Risk.
  • Investing time horizon.
  • Tax-deferred investments.
  • Historical return and risk of various investments.
  • Other tidbits.

This is a great introduction to or review of personal finance precepts.

GRS is committed to helping our readers save and achieve their financial goals. Savings interest rates may be low, but that is all the more reason to shop for the best rate. Find the highest savings interest rates and CD rates from Synchrony Bank, Ally Bank, GE Capital Bank, and more.