It is hard to define universal personal finance principles because:
individual situations vary significantly when it comes to income, wealth, and consumption requirements
tax and financial regulations vary between countries
market conditions change both geographically and over time.
A financial advisor can offer personalized advice in complicated situations and for high-wealth individuals. Still, University of Chicago professor Harold Pollack and personal finance writer Helaine Olen argue that in the United States, good personal finance advice boils down to a few simple points.
Pay off credit card balances every month in full
Dedicate 10-20% of post-tax income for savings and investments
Create an emergency fund that can last at least 6 months
Maximize contributions to tax-advantaged funds such as a 401(k) retirement funds, individual retirement accounts, and 529 education savings plans
When investing savings:
Avoid trading individual securities
Look for low-cost, diversified mutual funds that balance risk vs. reward appropriately to an individual's target retirement year
If using a financial advisor, require them to commit to a fiduciary duty to act in an individual's best interest
The limits stated by laws may be different in each country; in any case personal finance should not disregard correct behavioral principles and the diligence of a "good family father": people should not develop attachment to the idea of money, morally reprehensible, and, when investing, should maintain the medium-long-term horizon avoiding hazards in the expected return of investment.
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