Considering how people think that having a good financial life is extremely complicated to achieve, the fact that the most beneficial financial tips can fit on an index card may come as a rather big surprise. This idea of summarizing the best financial tips was considered a couple of years ago by a University of Chicago professor named Harold Pollack, with the help of financial adviser Helaine Olen.
But now, these two have released a book named The Index Card that explains the thinking method behind this concept as well as the best way of applying the 9 rules which were originally written on the small 3 by 5 index card. The basis of the index card concept stemmed from the fact that the best financial tricks and tips were extremely straightforward and easy to access, being made available for free at every library in the country, if only one knew where to look.
Because advice regarding financial life can be accessed in such a manner, most financial advisers are believed to point people in the wrong direction, at least, that’s what Harold Pollack believes. It was unsurprising that once this index card idea hit the news back in 2013, it went instantly viral, with people asking to see this small piece of paper in order to apply these tips themselves.
From the list of rules, the hardest one to achieve is the goal of saving 20% of your income, if one would take into account the fact that overall, the average US citizens saves about 5%. True, this might be rather difficult for the majority of the general public, but by doing this, your financial life gets a rather hefty boost, as well as providing you with a safety net at all times, if something unexpected happens. This savings problem is not entirely the people’s fault. The whole market has changed considerably over the years, putting more and more social pressure on families
Another easy to understand rule is the concept of paying your credit card debt fully each month. The fact that credit is directly linked to your social life is well known, but how exactly it can affect people is somewhat underestimated by various financial advisers. By having a constant inflow of money, your credit balance will disappear, creating a rather beneficial financial life for almost every US citizen.
Insurance is also tackled, most likely due to the fact that this territory is often ignored because of its boring nature. But one cannot deny its importance. This is exactly why Pollack approaches the subject, telling people that a life insurance policy is the most beneficial on a long-term basis. Despite financial advisers creating traps for the average citizen in the form of malicious advice, for instance retiring earlier than 65, even if by passing this age people will get vastly increased pension funds, citizens can still opt to ignore their treacherous practices entirely, by resolving their financial matters on their own.
Even if the idea that the most beneficial financial tips can fit on an index card my not spark the biggest movement in the financial market, the authors of The Index Card book hope that by releasing this to the public, a financially sound nation will be made possible in the near future. If one would want a more recent alternative, 18 financial tips are available in the book Money Guide 2016 by Jonathan Clemmens.