THE 10 PRINCIPLES OF PERSONAL

FINANCE

Hunter McFall

1-

The Best Protection is Knowledge

Trust your gut when it comes to financial planning! The hard part is finding the difference

between the good advice and bad advice you receive. Ask

your Mommy and Daddy if they can help you get out of a

financial disaster!

2- Nothing Happens Without a Plan

Always remember to plan out your finance just like Dora the Explorer would do! You’re going to want to see where you’re at in a couple of years financially, then set

your goals, and finally, make a plan of

action and follow through!

3-

The Time Value of MoneyThe longer you invest in

money, the more you gain from compounding! Once

you understand the importance of saving your

money early, savings becomes much more fun

and you go buy many toys!

4-Taxes Affect Personal Finance Decisions

Not your Uncle George, not your Uncle John, but your Uncle Sam! He’ll help you

use taxes for your own benefit! Taxes are part of life, whether you or your parents like it or not. Just

remember that taxes should always be part of your plan.

5-Stuff Happens, or the Importance

of LiquidityIf you break your arm, just know that your parents have already

planned for an unexpected visit at the hospital. And next time, be

more careful! Always plan for the unexpected, this means that some of your money must be available

to you at any time. This is also called liquid.

6-Waste Not, Want Not –

Smart Spending Matters.No matter how much you want that action figure,

you shouldn’t waste your money! Spend it on

something you need! If you don’t waste

something, you won’t be wanting something later

on…

7-Protect Yourself Against Major

CatastrophesIf you ever are in an earthquake, just

know your home will be protected if you save some money! One thing to know is what insurance is; a financial protection

against loss or harm. Make sure you have the right insurance before a

tragedy happens that focuses on major catastrophes.

8-

Risk and Return Go Hand in HandDon’t put your toys all in one basket! Make sure there is a variety when you

invest! Also, understand that when you save, you are able to make future purchases that you desire!

9-

Mind Games and Your MoneyDon’t let your friends pressure you into buying things you want, always

buy things that you need so be smart about it! See more than just money, know what is important in life. Extend your financial plans to

achieve your goals!

10-

Just Do ItHave no regrets, trust yourself and just do it like Nike! Making the

commitment now to financial planning is difficult, but the following steps are easy. Make time your best friend, it is stronger now that it

ever will be! Take investment now and just do it!

Works Cited• Keown, A. J. (2010). Ten Principles of Personal Finance. In A. J. Keown,

Personal Finance: Turning Money into Wealth (pp. 17-23). Boston: Prentice Hall.

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<http://fundsupermartindia.blogspot.com/ >.• Solis, Brian. " Nike, Just Do It: When a Local Story Runs Away on the Web and Leads to Change - Brian Solis." Brian

Solis - Defining the convergence of media and influence. Nike, 22 Oct 2008. Web. 15 Jan 2013. <http://www.briansolis.com/2008/10/nike-just-do-it-when-local-story-takes/ >.

• Farmand, C. "Considering Your Move." April 16. 16 Apr 2012. Web. 14 Jan 2013. <http://www.apr16.com/?cat=27>.

• Mugen, Andy. "Dora The Explorer - The MUGEN Database, the M.U.G.E.N content encyclopedia." MUGEN Database. Wikipedia, Web. 14 Jan 2013. <http://mugen.wikia.com/wiki/Dora_The_Explorer>.

• "Picture Gallery - Cartoon Images." Web. 15 Jan 2013. <http://schools.pinellas.k12.fl.us/gallery/cartoon/Page0003.html>.• Miller, Don. "My Piggy Bank is Stuck! ~ See Through." See Through. Blogger, 2013. Web. 14 Jan 2013.

<http://youthmaster.blogspot.com/2012/07/my-piggy-bank-is-stuck.html>.• House, SouthD. "Broken Arm Clip Art." Clipart Mojo - Free Clipart - Clip Art Pictures - Royalty Free Graphics. Clipart Mojo, 10 Oct

2011. Web. 14 Jan 2013. <http://www.clipartmojo.com/clip-art/broken-arm-732/>.