Tested 11 rules for creating long-term assets

Get a solid financial foundation requires you to focus on the most important elements of your money - savings and investments. But that's easier said than done.

What are the main tasks that you should focus on? Consider these eleven rules of wealth creation:

No. 1 :. Keep at least three months of expenses in a savings account, this is only a starting point. If you are self-employed, work on commission, or work in a volatile industry or position, double or even triple the baseline. Many financial planners believe it is a good idea, six to nine months have stashed away by their normal cost.

# 2: Multiply your cost by 25 This is what you need in retirement. To $ 40,000 to spend a year in retirement, you have $ 1 million saved. Better start working!

No. 3 :. Save at least 10 percent of their salary begins as early as possible if the power of compound interest is the greatest. So we reach the mark of $ 1 million - for compound interest (the money earned your money) on life a long time.

# 4: Use your company 401k match - or do not pick up all your hard-earned wages.

No. 5 :. Open a savings account for your children's college, it's never too early, even if the child is still in diapers.

# 6: Set to prevent the maximum contribution to your Roth IRA future taxes on your contributions, including the tax on capital gains ..

# 7: more than 28-33 percent of your income needs in your household all costs associated with the home, such as insurance, property taxes, roof replacement, pruning, mowing and include Do not spend Carpet steam cleaning .. If you have never owned a home before probably greatly underestimated the amount of the cost of care at home.

# 8: Refinancing your home - but only if they interest rate be cleaned at least 1 percent of their mortgage.

# 9: The number 120 minus your age ... is equal to the percentage of your portfolio should be put into stock funds, according to the popular rule of thumb. Keep the rest of your portfolio should be in bonds. (Is this too aggressive or risky for your taste, then your age in bonds remaining inventory - .. So if you are 30, keep 30 percent in bonds This is a more conservative alternative)

# 10: Avoid investments you do not understand, for obvious reasons. If someone is making with beautiful words and big promises to be careful. It is best, with proven methods that will enrich their future slowly something that you want to stay not very familiar with the play.

# 11: Avoid funds with managerial responsibilities: The highest tax you have to pay is to 1 percent, but seek funds as the lowest fees can find you. Vanguard, Fidelity and Schwab, known among other things for their index funds and low-cost ETFs commission free.